Insights to Help Your Business
How Enterprise Retailers Are Solving Last-Mile Challenges
Why taking control of the last mile matters and understanding the cost of getting it wrong.
In today’s competitive retail world, the customer experience goes beyond checkout. It reaches all the way to the front door. And for enterprise retailers, last-mile delivery is the battleground where brands win or lose consumer loyalty.
Last-mile delivery is the last step of getting a product from the warehouse to the customer. This step is often the most complex and expensive. From missed delivery windows to damaged packages, the margin for error is razor-thin.
According to recent research, 42% of merchants report losing 2–5% of shipments each quarter*. This ends up impacting revenue, reputation, and repeat business. But leading retailers are fighting back with smart logistics strategies and cutting-edge technology. Let’s explore how.
Why Last Mile Delivery is so Difficult
The last mile accounts for about 50% of total shipping costs** for many enterprise retailers. This is due to:
- Urban congestion and traffic delays
- Unpredictable delivery volumes
- High customer expectations for speed and tracking
- Diverse delivery destinations—from rural homes to city high-rises
Small mistakes, like a wrong address or a missed delivery time, can lead to large losses for businesses that handle many orders each day.
The Cost of Getting it Wrong
When last-mile logistics fail, it’s not just a delivery issue—it’s a customer experience issue.
- 42% of merchants report 2–5% shipment loss per quarter, leading to refund costs, reshipments, and lost customer trust.
- Late or mishandled deliveries affect reviews, brand perception, and future revenue.
- Poor tracking visibility can increase support requests and strain internal teams.
Enterprise retailers can’t afford for deliveries to feel like a gamble. That’s why the best are investing in proactive, tech-forward solutions to take control of the last mile.
Top 3 Ways Enterprise Retailers Are Solving Last-Mile Delivery Challenges
1. Real-Time Tracking & GPS Software
Today’s customers expect advanced visibility. Real-time tracking software offers:
- Live updates on driver location
- Predictive delivery time estimates
- Geofencing alerts for arrival/departure
- Visibility across fleets, third-party drivers, and more
Benefits:
- Reduces customer inquiries and support tickets
- Builds trust through transparency
- Helps reroute or resolve issues before they escalate
For enterprise brands, GPS tools create a seamless delivery experience that feels modern, personal, and reliable.
2. Delivery Management Platforms
These centralized systems let retailers manage all parts of delivery from one dashboard. This is true whether they use their own fleets or third-party carriers to help with:
- Route optimization to reduce delivery times
- Driver performance analytics
- Dynamic scheduling based on order load
- Integration with inventory and order systems
Benefits:
- Reduces costs through smarter logistics
- Enables scaling without sacrificing consistency
- Offers insights to continuously improve operations
Large enterprise brands rely on these platforms and partners like Delivery Solutions. Delivery Solutions can help you handle millions of deliveries efficiently while staying nimble.
3. Automated Customer Notifications
Today’s shoppers want to be kept in the loop—from confirmation to delivery. Automation bridges that communication gap without manual effort. Smart notifications include:
- Order confirmation emails and texts
- Out-for-delivery and estimated arrival alerts
- Delivery confirmation with photo proof
- Delay notices and alternative options
Benefits:
- Reduces failed delivery attempts
- Improves customer satisfaction and loyalty
- Reduces “Where’s my package?” inquiries
This automation not only improves the customer experience—it lightens the load on support teams and internal staff.
Emerging Strategies Enterprise Retailers Are Exploring
Beyond the top three tools, several innovative tactics are gaining traction:
Micro-Fulfillment Centers: By storing products closer to urban customers, brands can reduce delivery time and cost.
AI-Powered Route Optimization: AI can look at traffic, weather, and real-time demand. It helps create better delivery routes quickly.
Eco-Friendly Last-Mile Solutions: Many retailers are testing bike couriers, electric vehicles, and sustainable packaging to meet ESG goals and urban delivery constraints.
Why Taking Control of the Last Mile Matters
The stakes have never been higher. With more consumers expecting fast, visible, and safe deliveries, businesses need to treat last-mile logistics as a core differentiator—not just a fulfillment function.
In a recent shift, many shoppers now blame the merchant (61%), not the carrier, when deliveries go wrong. That means ownership of the last mile—whether outsourced or in-house—ultimately falls on the brand.
For enterprise retailers, the last mile is where they can earn customer loyalty—or lose it. The good news? You don’t have to reinvent the wheel. By investing in:
- Real-time tracking
- Centralized delivery platforms
- Proactive customer communication
…you can reduce losses, increase efficiency, and build a delivery experience that drives repeat business.
Need Help Optimizing Your Last Mile Delivery?
We help enterprise retailers implement smart, scalable shipping systems that reduce costs and elevate customer satisfaction. Get in touch today to learn how we can streamline your operations.
*Stat is derived from UPS Capital Report, Last Mile: Taking Back Control
**Stat is derived from Statista, Last Mile Share of Total Shipping
