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Introduction: Why the Last Mile is the Hardest Mile

When a package reaches the final stretch of its journey, it feels like the job should be nearly done. But for supply chain directors, the last mile is often where the real challenges begin.

Capgemini’s 2020 report found that last-mile delivery makes up over 40% of total logistics costs—thanks to issues like traffic delays, failed deliveries, and rising expectations for speed and convenience. And when something goes wrong here, it’s the brand that takes the hit, not just the carrier.

For supply chain leaders, these challenges aren’t just about fixing delivery problems—they’re about protecting the customer experience. In this article, we’ll unpack the most common last-mile roadblocks and explore practical solutions that can help supply chain teams stay one step ahead.

What Makes Last-Mile Delivery So Challenging for Supply Chain Directors?

Last-mile delivery is deceptively complex. Packaging leaves the warehouse and suddenly you’re wrestling with so many variables. Here’s why this stage is particularly tricky for supply chain leaders:

1. Urban Congestion & Infrastructure Constraints

Delivering in crowded cities isn’t just slow—it’s unpredictable. Narrow streets, traffic jams, construction zones, and limited parking options all add layers of delay. Even the best-laid delivery plans can be thrown off course by real-world conditions that are hard to control or forecast. Imagine your fleet circling around just to drop a single package—then multiply that across hundreds of orders.

• The average travel time for as the slowest cities in Europe and the United States.

• Commercial deliveries spend

• Delivery trucks face 107 to 209 hours of detention per year, leading to a loss of

2. Booming Delivery Volumes Without Infrastructure Catch-up

E-commerce has pushed delivery volumes to new highs, but urban infrastructure hasn’t kept pace. In the U.S., freight deliveries have doubled over the last ten years, largely driven by the rise of single-item deliveries instead of consolidated trips. Without better curb access or drop-off design, scale only brings more friction.

• U.S. freight volume has increased to , making up 9.5% increases year on year.

• Most cities curb spaces are not meant for commercial use—Washington DC

• Residential buildings often lack secure drop zones.

3. Erratic 51¿´Æ¬ and Return Rates

A massive operational pinch point: 51¿´Æ¬s (Return to Origin) can range from 20–25%, and in certain industries, They’re often caused by failed deliveries, especially in COD-heavy markets, or poor address accuracy. Every 51¿´Æ¬ eats into margin adding to backhaul inefficiency and worsens customer experience.

• Globally, but incomplete addresses are a leading cause of failed delivery attempts.

• Missed delivery windows and delayed package pickups make up

• Evri, a leading UK parcel delivery company, is expected to lose track of around

4. Fragmented Carrier Networks and Visibility Gaps

Most brands rely on multiple carriers. They are helpful for reach, but problematic for control. Without centralized visibility, tracking carrier performance and solving issues in real time becomes incredibly difficult. In the absence of  real-time coordination or unified data, supply chain teams often fail to identify blind spots like stuck parcels, disrupting on-time delivery schedules and customer expectations. 

• Slow delivery is the number one reason for cart abandonment.

• Siloed data hinders coordinated action, leading to due to poor delivery visibility.

• Poor visibility delays exception handling—arrive late, damaged, or at the wrong address. 

5. Delivery Experience as the New Brand Battleground

Customers don’t distinguish logistics from your brand. Their delivery experience becomes the definition of brand experience. Digital consumers want their order delivered, on time and with clarity. Alongside speed, they also expect precise delivery windows, live tracking, and instant updates via their preferred channels. The last mile is where loyalty is earned or lost. 

• One bad delivery experience with a brand.

• Transparency in shipping is the second most important customer expectation from E-commerce brands. 

• consider the ability to schedule delivery time as important. 

Key Solutions to Last‑Mile Delivery Challenges

Solving last-mile challenges doesn’t require a complete overhaul of your existing system and carriers, just the right tech stack and smarter workflows. Below are 4 strategies you can implement immediately to boost last-mile delivery efficiency:

1. Use AI to Allocate the Right Carrier & Find the Right Route

Manual carrier assignment often misses cost and performance gains. AI-powered allocation evaluates real-time factors—cost, turnaround time, and historical performance—and other personalized parameters to select the optimal carrier. 

Combined with AI-driven routing that minimizes dead miles and parking delays using real-time traffic and location data, it ensures faster, more efficient last-mile delivery. Together, these technologies significantly reduce operational costs while enhancing customer satisfaction. 

2. Give Customers What They Want: Real-Time Visibility

. Live tracking and proactive notifications across SMS, WhatsApp, IVRS, and email keep customers informed and reduce inbound support queries. 

As much as visibility is important to customers, it’s equally essential to supply chain leaders. Given that having a consolidated view of shipments is paramount—stuck shipments, in-transit delays, lost parcels at hubs, swiped parcels with hub-level details in real-time. 

3. Automate Exception Handling to Prevent Delivery Failures

NDR automation ensures failed delivery attempts are promptly addressed via customer-preferred channels, minimizing delays, and reducing 51¿´Æ¬s. Beyond doorstep deliveries, enable customers to reschedule dates, select parcel lockers, or authorize handovers to neighbors. 

Proactive delay alerts and communication about potential disruptions, paired with flexible order management options, helps shippers build trust and reduce customer frustration. In addition, dynamic delivery window adjustments enable pre-emptive resolution of potential delivery issues. 

4. Unlock Last-Mile Visibility & Accelerate Carrier Scaling via API

A unified API allows businesses to integrate new carriers in days — speeding up market expansion and peak-season flexibility. Managing multiple carriers through one interface simplifies operations, reduces manual errors, and centralizes data. 

This helps supply chain directors monitor delivery KPIs in real-time and make data-driven decisions to optimize carrier performance and reduce costs. 

Bonus Levers for Last-Mile Excellence

Beyond the essentials, consider these advanced levers for additional efficiency and brand value.

1. Treat Returns as a Strategic Touchpoint

Returns handled well can increase loyalty. Self-serve portals and seamless workflows make a lasting impression, overriding a bad delivery experience like damaged products or shipping errors. According to a, 44% of returns are attributed to product damage during transit. Enable easy exchange or immediate refund to offset the impact.

2. Use Predictive Analytics for Proactive Decision-Making

Around typically need to be redelivered. Identify issues before they happen. Forecast delays, flag high-51¿´Æ¬ zones, and act early to minimize losses. In addition, improving transparency and visibility in every stage of the last-mile journey helps mitigate risks.

3. Automate Operational Tasks to Free Up Team Bandwidth

Automating tasks like label printing, order manifestation, POD uploads, or EDD prediction not only saves time but ensures consistency across high-volume operations. Automation reduces manual work and speeds up fulfillment. Brands using automation see a significant rise in order processing times and reduced error rates.

Real-World Impact: How ClickPost Helped a Fashion Brand Reduce Last-Mile Troubles and Boost Efficiency

ClickPost Case Study

Let’s take a look at DaMENSCH, a  high-volume fashion retailer in India, managing over 10,000 daily shipments. The brand struggled with rising 51¿´Æ¬s, limited carrier visibility, and delays during peak sales events.

The Challenge

• Manual logistics operations leading to inefficiencies.

• High Return to Origin (51¿´Æ¬) rates impacting profitability.

• Inconsistent delivery experiences causing customer dissatisfaction.

• Lack of proactive delivery tracking and delay management.

The ClickPost Solution

• Implemented automated logistics operations to streamline processes.

• Utilized machine learning-based carrier allocation for optimal shipping.

• Real-time delivery updates for proactive customer support. 

• Delay risk identification and automated NDR solutions for failed delivery re-attempt. 

• Dynamic EDDs on the website, app, and tracking portal to set clear delivery timelines. 

The Results

• Achieved a 54% reduction in 51¿´Æ¬ rates.

• Boosted operational efficiency by 30%.

• Improved Net Promoter Score (NPS) by 21%.

• Reduced customer complaints by 31% and late deliveries by 15%.

Conclusion: Make the Last Mile Work for You — Not Against You

Last-mile delivery doesn't have to drain resources or damage your brand. With the right systems in place, supply chain directors can gain full control — improving speed, reducing failure rates, and delivering the seamless experience customers expect.

ClickPost helps over 450 brands turn last-mile logistics into a competitive advantage — blending automation, intelligence, and visibility into a single platform.

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