What is a significant challenge of last-mile delivery in logistics?

High costs and traffic congestion are indeed significant challenges in last-mile delivery within logistics. Last-mile delivery refers to the final step of the delivery process, where goods are transported from a distribution hub to the final destination, which is often the customer's home or business. This segment of the supply chain is typically the most expensive and complex due to several factors.

Firstly, high costs arise from the need for rapid and flexible delivery options to meet customer expectations. Consumers increasingly demand fast delivery times, which can lead to higher operational costs as companies strive to meet these expectations while optimizing their logistics. Deliveries need to be timed precisely, often requiring multiple delivery attempts, which can further inflate costs.

Secondly, traffic congestion in urban areas presents a continual challenge for last-mile deliveries. Traffic delays can result in longer delivery times, increased fuel consumption, and additional labor costs. As cities become more populated and road conditions worsen, these challenges intensify, making it difficult to maintain efficiency in last-mile operations.

In contrast, low demand for fast delivery would not be a challenge since the marketplace is moving towards faster service. Over-simplification of delivery routes does not reflect the reality that creating efficient routes can be quite complex due to variables like traffic and delivery windows. Excess inventory in the supply