In logistics, the last mile of delivery is often the most critical step. It’s where costs peak, challenges stack up, and customer expectations come into sharp focus. Get it right, and you’ve created a competitive edge. But, get it wrong? You risk damaging your brand’s reputation.
At Bungii, we’ve seen firsthand how last mile delivery makes or breaks the customer experience and a business’s reputation. This guide breaks down why the last mile is so complex, common pitfalls businesses face, best practices to improve performance, and how to evaluate delivery partners.
What is last mile delivery?
We’ve learned the shortest leg of the journey is where the most can go wrong. The “last mile” is usually only a few blocks, but it’s where brands win loyalty or lose customers.
Brands that consider the final mile of delivery as a strategy, not a task, understand that a good product experience is only half the battle. An excellent delivery experience goes a long way, especially when drivers and operators make every effort to avoid bumps in the road to ensure customer satisfaction.
As Bungii’s COO Josh Camacho puts it, “The most common mistake businesses make with the final mile is they look at it as a necessary evil instead of a lever for competitive advantage. Far too many retailers are leaving meat on the bone with speed and timing of delivery, level of service, and fulfillment modes. Those things can be leveraged to improve customer experience, and therefore retention, separating them from their competition.”
Every delivery is unique. Nearly every recipient has specific expectations or delivery instructions. And every effort to ensure a successful delivery represents the brand.
Large parcel orders can’t just be “drop and go.” These items require extra planning, communication, and partnerships with both the customer and the delivery personnel. Delivering an oversized item without a strategy is a recipe for disaster, especially when challenges inevitably arise.
Common last mile delivery challenges
Last mile delivery encompasses various delivery scenarios, including delivering an e-commerce order to a residential address and delivering pallets to a business.
Each scenario presents various obstacles, and even seasoned logistics teams run into barriers in the final mile. The most common last mile delivery challenges are:
- High costs: Driver wages, fleet maintenance, fuel, and failed deliveries all stack up quickly, leaving you with higher shipping costs than anticipated.
- Unpredictability: Traffic, weather, and routing complexity can unexpectedly derail plans.
- Scalability: Expanding into new markets requires a delivery network that grows with you. Making these necessary connections can be a challenge.
- Customer expectations: Real-time tracking, narrow delivery windows, and professional service are no longer optional. These expectations are the baseline for the customer experience.
- Brand risk: The driver is often the only person customers interact with face-to-face. A mishandled handoff can undo a great buying experience, reflecting poorly on your brand.
While some challenges are unpredictable, partnering with the right last mile delivery provider places these challenges squarely in your control.
Ready to upgrade your last mile delivery program?
Last mile delivery best practices
While you may not be able to avoid unexpected weather or the occasional traffic delay, there are a few best practices you should implement to ensure a smoother delivery experience.
Here are proven best practices:
1. Treat drivers as brand ambassadors
To your customer, the driver is your brand. If he shows up late, sweaty, and grumpy, that’s the impression that’s going to stick. That’s why training, professionalism, and communication are just as important as speed and handling care.
Bungii Client Executive Lauren Mitchell explains, “At Bungii, we understand that our drivers aren’t just delivering orders, they’re representing the brands we partner with. Professionalism, clear communication, and a great attitude aren’t just ‘nice to have.’ They’re essential. That’s why we invest in making sure our drivers deliver more than just products. We aim to create a positive, lasting impression that keeps customers coming back.”
Quick tip: Create a training plan for all new delivery drivers to ensure they’re aligned with your expectations. Then, schedule a quarterly review to nip bad habits before they form.
2. Leverage smart tech
AI-driven routing, predictive analytics, and real-time visibility reduce wasted miles and missed expectations. Think of this smart tech as your crystal ball. While you can’t predict the future, predictive analytics gives you a better idea of which events could delay your delivery.
Business Insider reports that advanced algorithms are already transforming last-mile delivery by optimizing routes and dispatch decisions. With these insights in your back pocket, you and your team can work to reduce or avoid mishaps before they occur.
Quick tip: Choose a partner with advanced routing and tracking technology so you can act on real-time insights, not just react to problems.
3. Create a flexible delivery model
Delivering a treadmill to a residential area requires a different delivery truck than dropping off a pallet of tiles to a commercial revitalization project. One delivery requires a box truck, while the other is better suited for a flatbed.
Think about your deliveries and the logistics:
- Do you need a truck or a van?
- Is this a residential location or a commercial building?
- Is there a loading dock?
These questions matter, and the more flexible you are with your delivery operations, the better the customer experience will be.
Quick tip: Partner with a delivery service that offers a range of delivery vehicles, including smaller assets for on-demand deliveries and larger assets for multi-stop deliveries. This flexibility ensures your last mile delivery program is cost-effective and your scaling efforts are seamless.
4. Track what matters
If all you’re tracking is on-time delivery, you’re missing half the story. Want to know if your final mile is actually working? Check your reschedules, damage claims, and how many times support had to step in.
These metrics help you understand what went smoothly, where a delivery took a wrong turn, and how to prevent issues from popping up in the future.
Quick tip: Review metrics with your delivery partner on a monthly or quarterly basis. This keeps accountability high and ensures data actually drives improvements, instead of filling up reports and files.
How to evaluate delivery partners
Choosing the right partner is one of the most impactful decisions operations leaders make. Simply put, you need a delivery solution that puts as much care into the last mile of delivery as you do.
Here’s what to consider when evaluating your delivery partner options:
- Performance metrics: On-time delivery, claims, and reschedule rates uncover a hidden truth. Pay close attention to these metrics.
- Market coverage: A delivery solutions’ current footprint and its ability to scale can stagnate or propel your growth.
- Delivery speed: On-demand and same-day options are becoming table stakes. Can they assist you in making a quick delivery to meet customer demand?
- Asset class fit: Having the right equipment matters. A versatile fleet keeps your deliveries moving (and keeps costs in check), whether it’s a single-item drop-off or a multi-pallet order.
- Customer support: Who answers when customers have questions? Many delivery providers offer customer support, but it’s important to know if it’s live or when they get around to it. Alternatively, handling it in-house will require buttoned-up processes and likely additional staff.
Don’t make this decision in the dark. Use our Delivery Partner Evaluation Checklist to compare providers side by side and see who’s really capable of supporting your growth.
Smarter solutions for the last mile
Last mile delivery will always be complex, but it doesn’t have to be chaotic. When businesses treat the final mile as a core part of their strategy, it becomes a real competitive advantage.
By applying best practices, carefully evaluating partners, and putting the customer experience first, businesses can turn the last mile into a real differentiator.
The result of these practices? Lower costs, fewer surprises, and a delivery experience that strengthens— not strains —customer relationships.
Want a practical way to compare your options? Check out our resource center to help you spot gaps and opportunities in your last mile strategy.
