Addressing Increased Costs in the Last Mile
Last-mile investments fight increasing retail costs
Reducing last-mile costs is the second largest 2025 priority for retail executives
35% Average transportation costs attributed to the last mile
3PL Logistics
34% Retailers that say cost is the biggest barrier to last-mile technology investments
Bringg, State of the Last Mile, 2024
25% Rate of logistics costs increases since 2019
McKinsey, 2025
Global policy and economic changes demand attention
Inflation and tariffs increase supply chain costs across fuel, wages, warehousing, carrier fees, etc.
Source: Capgemini 2023
Last-mile investments turn cost reductions into competitive advantages
The right investments increase savings and give retailers an edge across: > Operational efficiency > Delivery fulfillment > Customer satisfaction
Source: Capgemini 2023
New fulfillment options streamline operations and profitability
More fulfillment centers and delivery choices can boost efficiency and revenue.
Leaders invest to cut last-mile costs. Everyone else catches up.
Improved costs
Improved costs and carrier management
- A U.K. grocer reduced last-mile costs 20% using multiple fulfillment and delivery models
- A U.S. furniture retailer saved $5M and $15m in annual CapEx and OpEx with increased route density and delivery availability
Diversified carrier networks
Regionalized fulfillment and diversified carrier networks
Steve Madden reduced imports from China by 40% 2025 to cut costs via alternative factory bases and sourcing capabilities
Operational efficiency
Greater operational efficiency
- A U.S. auto parts retailer increased order dispatch by 187% with automation
- A U.S. furniture retailer increased stops-per-route by 20% with route density automation
Stay ahead with last-mile insights
