{"id":3564,"date":"2022-03-15T12:38:38","date_gmt":"2022-03-15T12:38:38","guid":{"rendered":"https:\/\/loginextsolutions.com\/blog\/?p=3564"},"modified":"2025-12-04T13:34:46","modified_gmt":"2025-12-04T13:34:46","slug":"why-is-last-mile-so-expensive","status":"publish","type":"post","link":"https:\/\/www.loginextsolutions.com\/blog\/why-is-last-mile-so-expensive\/","title":{"rendered":"[Infographic] Why is the Last Mile So Expensive?"},"content":{"rendered":"

Why is Last Mile So Expensive?<\/h1>\n

Last mile delivery is the stage of logistics where the goods\/product ordered leaves the hub\/warehouse and reaches the address mentioned by the customer. Online ordering has boomed and <\/span>customer expectations have <\/span>skyrocketed.<\/span> Fulfilling these orders efficiently and in a cost-effective manner is a question a lot of brands are trying to answer. And last mile deliveries are a critical leg in the entire process. <\/span><\/span><\/p>\n

In the entire delivery chain, <\/span>last mile delivery constitutes 53%<\/span> <\/span><\/a>of the total cost, which is huge! Working with 200+ enterprise customers from 50+ countries, we have listed several reasons for this. Some of the major ones are:<\/span><\/span><\/p>\n

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  1. Failed Deliveries<\/strong>: According to our survey with 200+ enterprise customers, 15% of all orders don\u2019t get delivered in the first attempt owing to several reasons ranging from customers not being available at home, a delivery vehicle breakdown, incorrect product getting delivered, <\/span>or having a wrong delivery address.<\/span><\/span><\/li>\n
  2. Inefficient Routing: <\/strong>With thousands of orders every month and a fixed number of delivery drivers available, orders must be delivered efficiently. Up to 20% of the cost can be reduced just by utilizing the best route optimization technology.<\/span><\/span><\/li>\n
  3. Customer Expectation: <\/strong>Over the past few years, customer expectations have been growing significantly and brands have been one-upping the other in terms of providing a great delivery experience. <\/span>We see companies offering shorter delivery times to attract more customers.<\/span><\/span><\/li>\n
  4. Delivery Driver Shortage: <\/strong>Another issue we continuously face is regarding delivery driver management. The requirement for drivers is increasing at a pace higher than there is supply and this will necessitate brands to best utilize the available resources.<\/span><\/span><\/li>\n<\/ol>\n

    To consume all these reasons and the solutions for them, we’ve come up with a detailed infographic to help you in navigating the last mile using last mile delivery management software<\/a>, read on:<\/span><\/p>\n

    View Infographic<\/a><\/div>\n