In the logistics world, the term “last-mile delivery” refers to the final leg of the supply chain when goods are transported from the distribution hub to the customer’s doorstep. While this stage may seem straightforward, it’s often the most complex and costly segment, particularly for bulky products like furniture. As e-commerce continues to grow rapidly—projected to reach $6.3 trillion globally by 2024, according to Statista—solving the last-mile challenge has become an increasingly pressing issue for furniture brands and retailers.
According to a Capgemini study, last-mile delivery can account for up to 41% of the overall logistics cost. This high expense is due to multiple factors:
- Labor Costs: Delivery of large items like furniture requires multiple workers for handling, loading, and unloading.
- Delivery Failure: Missed deliveries or restricted access (e.g., in urban areas with tight spaces or high-rise apartments) add additional costs and complexity.
- Customer Expectations: Consumers expect faster delivery times due to the rise of e-commerce giants offering same-day or next-day delivery, even for large items.
A report by McKinsey & Company estimates that 25% of consumers would switch retailers if same-day or next-day delivery is not available, making it essential for furniture companies to adapt and invest in more efficient last-mile solutions.
Addressing these challenges often requires investment in flexible delivery options, third-party logistics, or innovative solutions to reduce costs.