Last Mile: from cost to competitive advantage

For years, the last mile has been seen as one of the biggest problems in logistics. Expensive, complex, and full of variables outside the company’s control. Failed deliveries, inefficient routes, dissatisfied customers – everything pointed to a cost center hard to manage. But the truth is, when properly planned and managed, the last mile can stop being just an inevitable expense and become a powerful competitive advantage.

The challenge begins with the way companies look at this process. Instead of seeing it only as the “final step” before the customer, they should understand it as the moment of truth in their logistics operation. This is where the promise made by the brand at the point of sale is fulfilled – or broken. This is where the customer evaluates not only speed and efficiency but also reliability and the overall experience. Every kilometer traveled in the last mile is also an investment in reputation and loyalty.

Of course, cost cannot be ignored. The last mile can represent more than half of total transportation costs, especially in urban areas with heavy traffic and multiple stops. The dispersion of deliveries, the need for schedule flexibility, and the pressure from customers for shorter lead times make this the most demanding stage in the entire chain. However, measuring these costs – from kilometers driven, downtime, return rates, or failed delivery attempts – is the first step to turning them into efficiency opportunities.

And this is exactly where many SMEs have room to stand out. With small changes in route planning, system integration, and the choice of logistics partners, it is possible to reduce hidden waste and gain additional margins. Transportation management systems (TMS), even in affordable versions, can optimize routes in real time, react to disruptions, and improve delivery success rates. The investment is often offset by savings in fuel, time, and penalties associated with delays.

But it’s not just about internal efficiency. The last mile directly impacts customer perception and can be turned into a lever for added value. Offering flexible delivery options – at home, at pickup points, at customized schedules – increases convenience and reduces frustration. Proactive communication on order status, transparency in deadlines, and even the ability to reschedule deliveries make the process more human and reliable. For the customer, it’s not just logistics – it’s proof that the brand delivers on its promise.

Another critical aspect is returns management, which is part of the last mile experience and cannot be overlooked. Simplifying the return process, offering integrated and easy options, and reducing operational costs in this area build trust and differentiation. Many companies still see returns as a problem to hide, when in fact they can be an opportunity to strengthen customer relationships.

Sustainability also plays an increasingly important role as a competitive edge. Electric fleets, cargo bikes in urban areas, or simply better vehicle utilization reduce costs and strengthen the company’s image among consumers who are more aware of environmental impact. Turning the last mile into the “last green” is not just a trend – it’s a way to align economic efficiency with social and environmental responsibility.

Ultimately, the last mile can be the most expensive link in the chain, but also the most strategic. SMEs that manage to see it not as a necessary evil but as an opportunity for differentiation will be better positioned to compete in an increasingly demanding market. Turning costs into an advantage requires analytical rigor, innovative thinking, and customer focus.

Whether through technology, simpler processes, or stronger customer proximity, the last mile stops being a burden and becomes a growth driver. What was once seen as a pain point can become the strongest competitive edge in your operation.

Want to transform your operation? Talk to us.