Last-Mile Delivery Experience Has Become a Brand Differentiator

Last-mile delivery is typically the most expensive part of order fulfillment. In fact, according to SmartRoutes, it's more than half (53%) of total shipping costs, up from 41% in 2018. It's also the most visible leg of the supply chain to customers who expect fast, low-cost, transparent delivery. Descartes' 2025 Home Delivery Consumer Sentiment Study found that 43% of consumers under age 35 increased their online spending year over year, and, unfortunately, 79% of under-35 consumers experienced delivery issues within a three-month period.

Transportation and logistics (T&L) companies focused on building their relationships with vendors and distributors must balance service that maximizes customer satisfaction with operating profitably. Last-mile delivery technology solutions for T&L companies provide the visibility and control to achieve their objectives.

Why Taking Control of Last-Mile Delivery Is Essential Now

Optimizing last-mile delivery services is critical for T&L companies today as four trends converge and create pressure on these operations:

1. Ecommerce Growth: According to the U.S. Census Bureau, ecommerce continues to grow, increasing by 9.8% in Q1 2026 over Q1 2025, and now accounting for 16.9% of total sales. More ecommerce orders mean larger volumes of shipments moving from manufacturers and distributors to customers.
2. Expectations for Same-Day or Next-Day Delivery: At the same time that the volume of ecommerce orders is increasing, customer expectations for faster order delivery are also rising. Capital One Shopping reports that 70% of shoppers are more likely to shop online if they can choose same-day delivery. To meet those expectations, 51% of retailers offer same-day delivery and are looking for T&L companies that can meet that service level.
3. Impact on Brand Perception: The Descartes study found only 11% of younger consumers say they are always satisfied with the delivery experience. That dissatisfaction can damage how consumers see a brand, leading to lost customers and negative online reviews. For the T&L company, it can result in higher costs related to reshipping and correcting errors, high customer service costs, and customer churn.
4. Rising Costs: Last-mile delivery is inherently more costly than delivering to a centralized location. It requires distributing single packages across wide geographic regions. But today, labor, fuel, and warehouse capacity costs are all increasing. SDC Executive reports that 84% of ecommerce businesses saw costs rise over the past year.

How to Meet Customer Expectations While Controlling Costs

Relying on paper-based, manual management processes cannot keep pace with the industry. Last-mile delivery technology is key to meeting these customer expectations:

Speed

Digitizing and automating processes enables route optimization and maximizes throughput. Automatic logging and proof of delivery streamline processes so that drivers can increase the number of customers they can reach during their workday.

Transparency

GPS tracking, barcode scanning, and RFID technology enable real-time updates for the T&L company and can keep customers informed about their deliveries. These technologies can also empower T&L companies to document deliveries with images and send email or text notifications to customers to help prevent theft or damage from the weather.

Accuracy

Every package must be shipped to the right location and tracked so it isn't lost and replaced at extra cost. Barcode scanning and route optimization software help to ensure delivery accuracy.

Returns Optimization

The National Retail Federation and Happy Returns estimate that about 19% of online sales were returned in 2025, representing significant costs for vendors and distributors who manage returns to enhance customer experiences. T&L companies can save time and reduce costs by pairing return pickups with deliveries, eliminating deadhead miles. T&L companies that optimize returns processes can add value by getting inventory back to their customers quickly for resale.

Compliance

Delivery services are increasingly regulated to meet sustainability mandates. Delivery windows, emissions limits, and inspections can all factor into compliance. Route planning solutions are essential for on-time deliveries that minimize the T&L company's carbon footprint.

Flexible Options

T&L companies need to have the flexibility to accommodate where consumers want to receive deliveries. The best option isn't always delivery to the customer's door. The preferred location may be partner locations or secure lockers requiring a code for pickup. Working with vendors on these alternatives can help T&L companies control costs; multiple packages go to one location rather than to individual homes, saving miles, fuel, and time.

The Technology Solutions that Make It Possible

Levata's team of experts is available to help you plan, procure, and implement your last-mile delivery solution with technologies that overcome challenges and enable your business to work efficiently and cost-effectively.

• Barcode technology for package tracking and proof of delivery, with solutions that leverage rugged handheld computers or barcode readers, wearables, or vehicle-mounted computers
• Geofencing that automatically informs you when drivers pass certain checkpoints
• Transit communications to keep drivers informed of changes and safety concerns
• Route accounting systems that enable one employee to handle orders, invoices, and payments in the field
• Smart supply chain technologies that optimize delivery and returns management, including radio-frequency identification (RFID) solutions that track shipments and provide real-time visibility, and warehouse management and enterprise resource planning system integration
• Service and support including remote device monitoring and management, advanced exchange and repair, and help desk services

Contact us to discuss your last-mile delivery challenges, and we'll work with you to find the best options for your business.