Last-Mile-Delivery-Challenges-and-Innovations

1. Last-Mile Delivery
Challenges & Innovations
The final leg of delivery from distribution hub to customer accounts for
over 50% of total logistics costs in e-commerce. This presentation
explores the key challenges and cutting-edge innovations reshaping this
critical component of the supply chain.

2. What is Last-Mile Delivery?
Have you ever tracked your Amazon package and wondered how it gets from a warehouse
miles away to your doorstep in just 1 day?
Last-mile delivery is the final leg of the journey from distribution hub or retailer to the
customer's doorstep.
Key Fact: Last-mile delivery accounts for more than 50% of total logistics costs in
e-commerce.

3. Key Challenges in Last-Mile Delivery
High Cost
The costliest part of logistics (fuel,
labor, inefficiency)
Accounts for 41% of supply chain
costs (Capgemini Research)
Traffic & Urban Congestion
City deliveries cause delays and
higher emissions
Failed Deliveries
Customer not at home, wrong
address repeat attempts
→

4. More Challenges in Last-
Mile Delivery
Sustainability Issues
High carbon footprint from
multiple small trips
Environmental impact of
packaging waste
Customer Expectations
Same-day / 2-hour delivery
pressures
Examples: Amazon Prime,
Blinkit

5. Technology-Driven Innovations
AI & Predictive Analytics
Demand forecasting and dynamic routing optimize
delivery paths and reduce costs
IoT & GPS Tracking
Real-time delivery updates improve customer
satisfaction and reduce failed deliveries

6. Alternative Delivery Models
Crowdsourced Delivery
• Swiggy Genie
• Dunzo
Leverages gig economy workers
to fulfill deliveries on-demand
Click & Collect / Locker
Systems
• Amazon Lockers
• Flipkart hubs
Reduces failed deliveries and
allows customers to pick up at
their convenience

7. Automation & Robotics
Drones
Zipline delivering medical supplies in Africa and conducting
pilots in India
Autonomous Vehicles
Starship robots and Nuro vehicles operating in the US for
contactless delivery

8. Sustainability Innovations
Electric Delivery Vans
Amazon & Flipkart investing in EV fleets to reduce carbon footprint
Bike & Bicycle Couriers
Eco-friendly delivery options in urban zones that avoid traffic
congestion

9. Case Studies
Amazon
Drone trials, AI-driven routing,
delivery lockers
Flipkart
Electric vehicle fleet by 2030
Zomato/Swiggy
Hyperlocal last-mile delivery with real-time tracking

10. Conclusion
"In the digital era, customers don't just buy products —
they buy delivery experience."
1 Last-mile delivery is the most critical link in customer
satisfaction
2 Innovations in AI, crowdsourcing, automation, and
green logistics are reshaping the future
Discussion Question: Which delivery innovation would you trust more: drones, lockers, or crowdsourced delivery?