?? Why Last-Mile Logistics Is the Most Expensive Part of Distribution – And How to Fix It.

If you've ever ordered something online and anxiously tracked it as it made its way to your doorstep, you've experienced last-mile logistics in action.

But behind that simple tracking update is a complex and expensive process. Last-mile logistics refers to the final step of the delivery journey—when a package moves from a distribution hub to its final destination, whether that’s a home, a store, or a pick-up point.

This stage is critical because it’s where customer satisfaction meets operational reality—and where companies spend the most money. In fact, last-mile delivery accounts for over 53% of total shipping costs.

?? A Tale of Two Last Miles: Italy ???? vs. The Dominican Republic ????

Having lived in Italy and now visiting the Dominican Republic frequently, I’ve seen firsthand how last-mile logistics varies dramatically depending on geography, infrastructure, and consumer habits.

?? In Italy – A country where historic city centers were never built for delivery trucks, last-mile logistics is a challenge of narrow streets, pedestrian-only zones, and a patchwork of independent couriers. In places like Rome and Florence, you often see delivery drivers creatively maneuvering through alleyways on scooters, while businesses rely on local logistics hubs outside city limits to reduce congestion.

?? In the Dominican Republic – The challenge shifts from tight European streets to traffic congestion, informal delivery networks, and unpredictable road conditions. Unlike the hyper-organized distribution systems in the U.S. or Europe, many businesses in the DR still rely on moto-taxis (motoconchos) and informal couriers to navigate areas where traditional delivery trucks struggle. Add in power outages and heavy rain seasons, and the last mile here becomes a game of adaptability.

?? Why Is It So Expensive Everywhere?

Regardless of the country, last-mile logistics costs more than any other stage of the supply chain due to:

?? High Delivery Density & Failed Deliveries – A single failed attempt means wasted fuel, labor, and reattempt costs.

?? Traffic & Route Optimization Issues – Whether it’s LA traffic, Rome’s ZTL (restricted traffic zones), or Santo Domingo’s chaotic intersections, delays = rising costs.

?? Customer Expectations for Fast & Free Shipping – Amazon and local competitors have set the standard for same-day or next-day delivery, forcing companies to eat the cost.

?? Lack of Consolidation & Fragmented Networks – In some places, multiple companies deliver separate packages to the same area, rather than bundling deliveries.

?? Labor Costs & Driver Shortages – With rising wages and a shortage of reliable drivers, companies have to pay more to meet demand.

?? How Can We Fix It?

?? Route Optimization & AI-Powered Planning – AI can predict traffic patterns, optimize delivery windows, and minimize empty miles.

?? Micro-Fulfillment & Dark Stores – In Italy, Amazon lockers in metro stations and corner-store pick-ups are game changers. In the DR, local bodegas could serve as fulfillment hubs to cut down on long-distance delivery costs.

?? Crowdsourced & Hybrid Delivery Models – Uber Freight and Rappi have revolutionized logistics by using gig workers to handle last-mile deliveries efficiently.

? Smart Lockers & Pickup Points – The more we shift towards pick-up points (vs. direct-to-door delivery), the cheaper and faster last-mile logistics will become.

?? Sustainability + Cost Savings – E-bikes, drones, and electric scooters (already popular in European cities) could thrive in dense urban areas like Santiago, DR.

Final Thought: The Last Mile Is a Global Puzzle ??

Whether in Milan, Santo Domingo, or Los Angeles, last-mile logistics is one of the biggest cost drivers in distribution. But with innovation, localized solutions, and a shift in consumer habits, we can make it more sustainable, cost-efficient, and future-proof.

What’s the most challenging last-mile delivery experience you’ve seen or heard of? Let’s talk in the comments! ??

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