We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » The "last mile" isn't really a mile ... yet
Afterword

The "last mile" isn't really a mile ... yet

December 8, 2017
Mitch Mac Donald
No Comments

"The last mile." It's a term we hear day in and day out. It refers, of course, to the final leg of a product's journey through the supply chain—meaning delivery to the customer—rather than a literal distance. As for why it's getting so much attention, it's all about the need for speed in the new world of order fulfillment. Suppliers' ability to meet customers' demands for rapid delivery is highly dependent on that final leg. It's not too much to say that the last mile is where sales are lost or won.

Nowhere is that pressure more acute than in retail—and e-commerce, in particular. The consumers of 2017 expect next-day delivery. The consumers of 2018 and beyond will likely expect same-day service, especially in urban areas.

That's where "last-mile distribution centers" come in. Sometimes called "last touch" centers, they often are the final stop for e-commerce goods before they arrive on customers' doorsteps. These DCs have been "popping up in close proximity to major U.S. cities ... creating a foundation for rapid-delivery service that didn't exist on this scale as recently as a few years ago," according to the recent report "Last-Mile: Concept or Measurement?" issued by the real estate services firm CBRE.

By "close proximity," the researchers mean less than 10 miles. CBRE's analysis of last-mile distribution facilities that opened within the past two years in the 15 largest U.S. population centers showed that they are positioned, on average, between six and nine miles from the center of the population areas they serve.

Among other findings, the study revealed a correlation between population concentration and the length of the "last mile." Denser cities tend to have shorter average distances, such as the six-mile average in San Francisco, while cities that are more spread out have longer averages, such as 8.5 miles in Phoenix and nine miles in Southern California's Inland Empire.

The report left no doubt as to what's driving the trend. "The close proximity of the last-mile facilities to huge populations of customers facilitates online shoppers' growing expectations of nearly instantaneous delivery of their orders," it noted. Also notable is the speed with which this scenario has played out. Last-mile fulfillment centers have proliferated within the past two years. "This is an entirely new link in most supply chains that delivers on the promise of fast, super-high performance delivery," said David Egan, CBRE's global head of industrial and logistics research, in a press release.

Indications are the trend has yet to run its course. "Development of last-mile strategies still is in the early stages, so the average distances in many metros [are] likely to shrink a bit more in the coming years," Egan said in the release. If his prediction pans out, then "the last mile" may not be a figurative expression much longer.

  • Related Articles

    Commentary: When failure is really not an option

    The thankless life of a logistician

    The "next big thing" may not be a thing

Mitch Mac Donald is Group Editorial Director of AGiLE Business Media.

Recent Articles by Mitch Mac Donald

Thought I’d something more to say …

Sorry folks, this is not normal

Overdue appreciation

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Is it time to blow up S&OP?

  • How to build a supplier diversity program that will drive long-term impact

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Supply chain’s miracle workers

  • Container prices continue to drop

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing