What does "last mile delivery" refer to in logistics?

Last mile delivery specifically refers to the final step in the logistics process, where goods are transported from a transportation hub to the end customer's location. This phase is crucial as it is often the most complex and expensive part of the delivery process, impacting customer satisfaction significantly. Effective last mile delivery ensures that products arrive on time and in good condition, emphasizing the importance of efficiency and reliability in serving the customer.

This concept contrasts with the initial phases of shipping or transporting goods between major distribution hubs, which focus on moving items over longer distances. Additionally, large-scale distribution to retail outlets does not directly relate to individual customer delivery, as it involves moving products to stores rather than directly to consumers. Therefore, understanding last mile delivery is essential for logistics and supply chain management, as it reflects the final interaction with the customer and can greatly influence purchasing decisions and brand loyalty.