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04/17

What is the Last mile? The importance of Last mile in the supply chain.

Last mile is a term used in supply chain management and transportation planning to describe the movement of people and goods from a transportation hub to a final destination in the home.
 
Last mile in the distribution network
 
The term "Last mile" was originally used in the telecommunications field but was later applied to supply chain management. In the supply chain, transportation of goods via rail and sea is the most common, effective and cost effective way to transport goods. However, when goods arrive at the train station or harbor in large quantities, they need to be transported to their final destination.
 
And the last part of this transport is far less effective than rail or sea. Normally the last mile will account for 28% of the total cost of shipping the entire trip. The problem here is that the last mile also contains the challenges of delivery or transportation in the metropolitan area, where retail stores and restaurants are concentrated ... and it will lead to traffic jams and unsafety.
 
We often encounter the Last mile problem in transporting goods to humanitarian need areas. Relief resources can reach a center near the affected area but can not be distributed to individual households affected by deteriorating infrastructure damage.
 
Retailers such as Amazon and Alibaba have been researching and deploying unmanned aerial vehicles to transport online purchases to consumers. Amazon has also set lockers in some commercial centers as a way to preserve and deliver to guests ...
 

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