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The importance of the last mile

McKinsey’s Global Institute estimates that by 2020 there will be 4 billion urban dwellers worldwide, and 80% of these will be in developing nations. In Jakarta alone, the Bappenas 2010 census forecasts that the population of Greater Jakarta will reach almost 20 million by 2018, and Inner Jakarta will house 10.7 million of those people. For many of these urban dwellers, disposable income is increasing.

lastmile

Consumers are becoming more brand-aware and aspire to a lifestyle full of branded goods and services. Customers need these products on the shelf in order to purchase them, and this is where Last Mile Delivery comes in.

So what is Last Mile Delivery? It is exactly what it sounds like. Goods need to be transported in the most efficient and cost-effective way, which is often via rail networks and container ships. But once the goods arrive at ports, rail terminals, or high-capacity distribution centres, they need to be transported to their final destination. This “last mile” is usually the least efficient and most costly link in the supply chain, and can work out to almost 26% of the total cost of shipping goods…
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