Essential Last-Mile Delivery Solutions for Businesses

In supply chain management, the final phase of last-mile logistics is both complex and critical to the success of any delivery process. It is also one of the most expensive, accounting for an estimated 53% of overall shipping expenses (Statista).

Think of last-mile logistics like the final leg of a relay race: everything up until that point has built momentum, and the success of the entire effort depends on how well you finish. As consumer expectations for faster delivery times continue to rise, businesses face increasing pressure to optimise this crucial stage. Challenges such as congestion, limited infrastructure, and the need for flexibility in delivery options add complexity. However, getting last-mile logistics right can lead to higher customer satisfaction, faster deliveries, and reduced costs.

In this article, we’ll explore essential last-mile delivery solutions that can help businesses improve delivery speed, reduce costs, and provide better customer experiences.

Did you know? 

By 2027, the global last-mile delivery market is expected to grow to more than 200 billion US dollars from 108.1 billion US dollars in 2020 (Statista). This growth reflects the increasing demand for faster, more efficient delivery solutions worldwide.

What is Last-Mile Delivery?

Last-mile delivery refers to the final leg of the supply chain, where goods are transported from a distribution centre or warehouse to the end customer’s doorstep. Despite being the shortest part of the entire shipping process, it’s often the most complex and costly. This stage directly impacts delivery speed, customer satisfaction, and operational efficiency.

As consumer demand for faster deliveries continues to rise, last-mile delivery has become a critical focus for businesses. Optimising this process not only helps reduce costs but also ensures timely and accurate deliveries, fostering customer loyalty and competitive advantage in the market.

Why Last-Mile Delivery Matters

The last mile is the most visible part of the supply chain, it's what your customers remember. Missed delivery windows, poor communication, or lack of tracking can quickly erode trust. On the other hand, fast, reliable delivery builds confidence, increases conversions, and drives repeat purchases.

In fact, 22% of shoppers abandon carts due to slow delivery times (Hotjar), and 69% are less likely to buy again after a late delivery. That makes last-mile performance a key factor in both revenue and retention.

For businesses, optimising this stage helps:

• Minimise failed deliveries and associated costs.
• Improve turnaround times during peak demand.
• Gain real-time visibility into delivery operations.

As customer expectations shift toward faster, more convenient delivery options, getting last-mile logistics right isn’t a nice-to-have; it’s essential for staying competitive.

What are the Challenges in Last-Mile Delivery?

• Balancing Delivery Times with Consolidation: One of the real challenges in last-mile delivery is finding the right balance between delivery speed and order consolidation. Businesses must meet customer expectations for fast, often same-day delivery, which pushes up costs. 
  At the same time, consolidating deliveries into fewer trips to save on transportation costs can lead to delays and logistical inefficiencies. This balancing act is a constant challenge, especially when working to optimise delivery routes and maximise vehicle capacity.

• High Delivery Costs: While fuel and labour costs certainly contribute to rising expenses, the true cost drivers go beyond these. The complexity of last-mile logistics, which involves navigating urban areas, dealing with traffic, addressing customer scheduling needs, and managing diverse delivery times, adds significant operational costs. 
  Additionally, many businesses struggle with the cost per order, which increases when deliveries are not optimally consolidated or efficiently managed.

• Warehouse Space Optimisation: Limited warehouse space often leads to congestion, slower picking and packing, and order delays. When storage is disorganised or overfilled, even routine fulfilment tasks take longer, driving up delivery times and costs.
  That’s where flexible warehousing becomes critical. With WareOne, you can scale your space up or down as needed, storing only what you need, when you need it. Our network of storage options across the GCC helps you avoid fixed overheads while keeping operations fast, organised, and cost-effective.
  Need space that works with your business, not against it? Discover scalable warehousing with WareOne.

• Customer Expectations: Customers demand faster and more flexible delivery options, like same-day or two-hour deliveries. Meeting these expectations requires businesses to be agile and efficient.
• Environmental Impact: As sustainability becomes more important, businesses need to find ways to reduce their environmental footprint without sacrificing delivery speed.
• Missed Deliveries: Failed delivery attempts can lead to customer frustration, delays, and additional costs.

Now, let’s look into how businesses can benefit from the right solutions.

Last-Mile Delivery Solutions for Businesses

To overcome these challenges, businesses must implement smart last-mile delivery solutions that balance speed, cost, and reliability. Here are some solutions that are helping businesses optimise their last-mile delivery process:

1. Route Optimisation Software

Route optimisation software uses algorithms to identify the fastest, most cost-effective delivery routes. By factoring in traffic patterns, delivery windows, and geographic constraints, businesses can significantly reduce delivery times and fuel costs.

Benefits:

• Reduces fuel consumption and vehicle maintenance costs.
• Helps ensure that deliveries are made on time, even in high-traffic areas.
• Increases driver productivity by reducing wasted time.

2. Local Fulfilment Centres and Micro-Hubs

Placing micro-fulfilment centres or local hubs closer to the customer reduces the distance that products need to travel. By having inventory stored in multiple locations across a region, businesses can offer same-day delivery or even next-hour deliveries in urban areas.

Benefits:

• Faster delivery times: Products don’t need to travel far, making same-day or faster delivery more feasible.
• Lower costs: Reduces the need for long-distance transportation, lowering fuel and vehicle costs.

3. Crowdsourced Delivery

Crowdsourced delivery has become a popular way for businesses to meet the demand for quick, flexible delivery without the need for a large fleet. By partnering with local drivers, businesses can quickly scale up their delivery capacity without the upfront cost of maintaining a fleet.

Benefits:

• Cost-effective: Eliminates the need for a dedicated delivery fleet.
• Flexible: Quickly adapts to spikes in demand, such as during busy shopping seasons.

4. Smart Lockers and Pickup Points

Instead of having to wait for a home delivery, customers can pick up their orders at smart lockers or pickup points. These lockers, located in convenient places like shopping centres or local stores, provide a flexible solution for customers who prefer to pick up their deliveries at a time that suits them.

Benefits:

• Reduced delivery costs: Minimises the need for home deliveries.
• Convenience: Customers can pick up their orders whenever it's convenient for them.

5. Electric Vehicles (EVs)

As environmental concerns rise, more businesses are turning to electric vehicles (EVs) for their last-mile deliveries. EVs are more cost-effective to operate and help reduce the carbon footprint of the business.

Benefits:

• Sustainability: EVs reduce greenhouse gas emissions.
• Lower operational costs: EVs have lower fuel and maintenance costs compared to traditional vehicles.

6. Real-Time Tracking and Communication

Real-time tracking technology allows businesses and customers to monitor deliveries in real time. This transparency reduces the likelihood of missed deliveries and keeps customers informed about the status of their orders.

Benefits:

• Better customer experience: Customers can track their packages, reducing anxiety and improving satisfaction.
• Fewer customer inquiries: With real-time updates, customers don’t need to contact customer service as often.

With a clear understanding of these solutions, let’s now look into the best practices businesses can implement to optimise their last-mile delivery operations.

5 Best Practices to Improve Last Mile Delivery

The last-mile delivery is crucial for ensuring that your customers receive their orders on time and in perfect condition. By implementing the right strategies, businesses can improve their delivery efficiency, reduce costs, and increase customer satisfaction. Here are some best practices to improve your last-mile delivery:

1. Utilise Flexible Storage to Stay Closer to Your Customers: To expedite deliveries and improve customer satisfaction, consider implementing flexible storage solutions that are strategically located near your customer base. 
   By strategically placing inventory in micro-fulfilment centres or local warehouses, businesses can reduce the time it takes to deliver products and offer same-day or next-day delivery options.

2. Use Real-Time Tracking for Better Visibility: Tracking deliveries in real time is a game-changer for both businesses and customers. Implementing a real-time tracking system gives customers the ability to track their order’s journey from the warehouse to their doorstep, providing them with accurate delivery windows.
3. Optimise Delivery Routes with Smart Tech: Utilising route optimisation software is an essential step in improving the efficiency of last-mile deliveries. By using smart technology to analyse traffic patterns, delivery windows, and product destinations, businesses can ensure they are taking the most efficient route.
4. Scale Delivery Capacity Based on Demand: Last-mile delivery demand can fluctuate, especially during peak seasons or promotional periods. By using a scalable delivery system, businesses can adjust their delivery capacity based on real-time demand. This ensures that your delivery network is always prepared to handle spikes in orders without incurring unnecessary costs during slower periods.
5. Pay Only for What You Use to Keep Costs Lean: One of the most effective ways to keep costs under control is by paying only for the services you actually use. Flexible delivery solutions allow businesses to avoid fixed long-term contracts, enabling them to scale up or down as needed. WareOne offers flexible, pay-per-use logistics services that allow you to scale your last-mile delivery based on actual demand.

In addition to implementing best practices, staying ahead of the game means understanding the emerging trends that will influence last-mile delivery in the coming years. Let's explore the top trends that will continue to shape the future of logistics.

Major Trends That Will Shape Last-Mile Delivery in 2025

As we move into 2025, several key trends are poised to shape the future of last-mile delivery. Here are five trends businesses should keep an eye on:

Shift Toward On-Demand Warehousing

The rise of e-commerce and increased consumer demand for same-day delivery are pushing businesses to rethink how they manage their inventory. Traditional, long-term warehouse contracts are being replaced with on-demand warehousing models, which allow businesses to scale their storage space based on seasonal fluctuations or growing demands.

Hyperlocal Fulfilment Networks

Hyperlocal fulfilment networks enable faster deliveries (often within hours) and lower transportation costs, making them especially valuable for businesses focused on meeting the rising demand for same-day or next-day deliveries. By positioning inventory closer to the customer, businesses can improve their last-mile delivery efficiency and reduce shipping delays.

Dynamic Delivery Models

Dynamic delivery models allow businesses to reduce delivery times and minimise costs by adapting to real-time challenges. They also enable companies to offer multiple delivery options, such as express deliveries or time slot selections, which cater to different customer preferences and needs.

Cost Control Through Usage-Based Pricing

As competition for faster deliveries intensifies, many logistics providers are shifting to usage-based pricing models, where businesses pay only for the services they use. This approach allows companies to avoid the fixed costs associated with traditional delivery methods while providing flexibility to scale operations based on demand.

Now that we've covered the evolving trends, let’s look at how a comprehensive solution like WareOne can help businesses address these trends and meet last-mile delivery challenges effectively.

Transforming Last-Mile Delivery With Wareone

At WareOne, we offer businesses flexible last-mile delivery solutions tailored to address the unique challenges of modern logistics. Here’s how we help:

• Integrated Logistics for Simplified Operations: WareOne offers end-to-end logistics solutions, covering customs clearance, importer-of-record services, warehousing, and last-mile delivery. 

Our all-in-one platform consolidates multiple services under one roof, reducing complexity and streamlining supply chain management. With a single invoice for all services, you can eliminate unnecessary administrative overhead and focus on growing your business.

• Fast Delivery with Real-Time Tracking: Timely delivery is a key differentiator in today’s competitive e-commerce landscape. WareOne offers same-day and next-day delivery options across the GCC, ensuring your goods reach customers quickly and reliably. Our advanced tracking system provides real-time updates and full visibility from warehouse to doorstep for both you and your customers.
• Powerful Analytics to Optimise Operations: Track inventory levels, delivery performance, SLAs, and cost per order, all in real-time. WareOne’s robust analytics help you make data-driven decisions, optimise costs, and streamline operations.
• Efficient Returns Handling: Returns can be a hassle, but WareOne makes them seamless. WareOne makes the process smooth for your customers and simple for your team, so you stay in control without the chaos.
• Scalable Solutions for Small and Large Businesses: From D2C brands and social sellers to enterprise retailers, WareOne’s flexible solutions are built to scale. Small businesses enjoy pay-as-you-go storage and delivery without long-term commitments. At the same time, larger enterprises benefit from multi-node dispatch, large SKU handling, and complex inventory rules, all of which are managed on a single platform.

Wrapping Up

The on-demand delivery process is rapidly becoming an essential part of modern business operations. It allows companies to meet customer demands for faster, more flexible delivery while streamlining their logistics operations. By understanding how the process works and implementing best practices, you can enhance your delivery system, improve customer satisfaction, and gain a competitive advantage.

If you’re looking to improve your on-demand delivery process and optimise your logistics operations, now is the time to make the change. Contact our team at WareOne, and let’s discuss how we can help you streamline your delivery process and meet your customers' growing demands.