Cost
40-50% of total shipping cost
Low drop density, failed attempts, and accessorial requirements make the last mile disproportionately expensive.
Freight Glossary
Last Mile Delivery
Last mile delivery is the final leg of a shipment from a local distribution point to the end customer or retail location. It is typically the most expensive and operationally complex segment of the supply chain because it involves navigating residential areas, appointment windows, and individual delivery requirements. Last mile delivery applies to both parcel and freight shipments, though in the freight context it usually means moving palletized goods from a cross-dock or local warehouse to a store, jobsite, or home.
Why it matters
Last mile delivery accounts for 40 to 50 percent of total shipping cost on many supply chains, despite covering the shortest distance. The cost is driven by low drop density, failed delivery attempts, narrow delivery windows, and accessorial requirements like liftgate, inside delivery, or white glove service. For retailers and e-commerce brands, last mile delivery quality directly affects customer satisfaction and repeat purchase rates. Late or damaged deliveries at the last mile undo all the work done upstream.
When to use it
Every shipment has a last mile. The question is how to execute it efficiently. Use dedicated last mile delivery when you need appointment-based delivery to stores or homes, when the delivery location has access restrictions, or when proof of delivery with photos and signatures is required. For recurring volume into a metro, routing last mile through a cross-dock with local delivery vehicles is almost always cheaper and more reliable than relying on LTL carriers for the final leg.
How Warp thinks about it
Warp operates its own last mile delivery fleet of cargo vans and box trucks, dispatched from 50+ cross-docks nationwide. This means the last mile is not outsourced to a random local carrier. Warp drivers use the Warp driver app for route optimization, electronic proof of delivery with photos, and real-time GPS tracking. For shippers, this translates to 99.1% on-time delivery, same-day delivery capability in major metros, and full visibility from cross-dock to doorstep through the Warp dashboard.
Last Mile
Last mile delivery is the most expensive and visible part of the freight journey.
Quality
Directly affects customer experience
Late or damaged last mile deliveries undo all upstream logistics work and drive customer churn.
Warp approach
Own fleet from cross-dock to door
Warp controls the last mile with its own vehicles and drivers, eliminating the handoff gap that causes failures.