Last Mile logistics Challenges and solutions

Puneet Bawa
May 2, 2024

Last mile logistics is the final stage of the logistics delivery chain process, encompassing express delivery for e-commerce companies, instant delivery for quick-service restaurants, grocery stores, medicine, pet supplies, and more. The delivery model typically falls into two categories: direct-to-consumer delivery and pickup at various locations using PUDO.

Despite the development of the logistics industry in the final mile, companies face numerous challenges, including environmental concerns, customer complaints, driver issues, and demand-supply crises. Last mile logistics account for the largest portion of logistics costs, approximately 41%, compared to warehousing (13%), sorting (20%), and packaging (16%).

In last mile delivery services, parcels are delivered directly to consumers' doorsteps using routing software, SMS, calls, and mobile applications. Following the pandemic, the industry has experienced a significant surge in parcel volume, accompanied by higher customer service expectations regarding service quality, on-time deliveries, accurate tracking features, and seamless returns services.

However, current service providers struggle to meet consumer demands and face challenges in fulfilling the needs of e-commerce platforms. While the industry is expanding, there is a growing need for better and more advanced services through technology and innovative initiatives.

Major challenges in the last mile delivery industry are.

Variation in demand and supply

The last mile delivery industry faces significant challenges, including fluctuating demand and supply. Parcel volumes vary throughout the year, requiring standard delivery procedures like same-day or next-day delivery services, adequate manpower (drivers and dispatchers), and software to analyze volume trends. However, this leads to increased second delivery attempts, failed or late deliveries, and complexity among service providers.

Environmental Problems

Another major issue is environmental problems. The growing volume of parcels results in more vehicles on the road, higher carbon emissions, increased fuel consumption, and pollution in the communities served by logistics companies.

Allocation of resources

Furthermore, the allocation of resources is a challenge. Current routing tools lack flexibility and fail to consider real-time traffic, weather conditions, and dimensional weights, making it difficult to deliver parcels in a smart, punctual, and personalized manner.

The industry urgently needs innovative solutions through smart last mile delivery solutions, which Koorier Inc has initiated with its sustainable final mile delivery approach. After analyzing customer pain points and industry challenges, Koorier has developed a strategy for green mile logistics that includes an enhanced in-house software solution for route optimization, a dashboard for clients to access business analytics, and a mobile application for drivers. This comprehensive approach is precisely what the industry needs for accurate and timely delivery through smart last mile logistics technology. This approach encompasses four key aspects: Experience, Enablement, Environment, and Expenditure.


Koorier is dedicated in creating a seamless experience for customers through its cutting-edge technology and sustainable practices. With custom integration, AI-driven address verification, and geocoding, Koorier ensures accurate and first-time delivery success. Additionally, its user-friendly software enables real-time parcel tracking, providing customers with complete visibility throughout the delivery process.


Koorier's smart logistics solutions leverage AI-power to minimize mis deliveries, ensuring parcels reach their destinations safely and on time. The company's intelligent route optimization software which is built in-house optimizes delivery routes for maximum ETA efficiency and effectiveness. Clients have access to comprehensive route analytics and daily operations data, enabling strategic planning and informed decision-making. Kapp mobile application which is leading edge technology in the market to support Koorier drivers to stay connected with the backend team to manage unavoidable circumstances for timely on road support.


Koorier's commitment to sustainability is evident in its 100% electric vehicle (EV) fleet, which reduces emissions by 97.3% compared to traditional internal combustion engine (ICE) vehicles. The company has implemented a robust environmental plan, focusing on scientific-based targets, phasing out single-use plastics, and establishing waste diversion targets. Koorier's transparent emissions reports and pledge to donate 1% of revenue to environmental initiatives demonstrate its dedication to creating a positive impact on the environment and local communities.


Koorier is committed to shouldering the cost of environmental initiatives itself, without passing it on to consumers and clients. Instead, the company is working on an innovative model that saves costs while tackling the major challenges of smart last mile delivery. This approach enables Koorier to offer its premium service of sustainable final mile delivery at competitive pricing, without adding fuel surcharge costs or peak season surcharges, which are typically imposed upon e-commerce giants.

As a transformational and innovative company, Koorier is revolutionizing the logistics industry by prioritizing punctuality, convenience, and sustainability. Its solutions cater to the needs of end users, e-commerce platforms, government regulators, and logistics service partners, ultimately creating a sustainable smart last mile logistics ecosystem.

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