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Last Mile Delivery Dominates Retail Logistics Discussions

by Mary Rooney | Mar 05, 2019

KC SmartPort attended the RILA Link 2019 Supply Chain Conference last week and noticed the last mile, meaning the final delivery of an order to the customer, is increasingly dominating the logistics discussion. As eCommerce and omni-channel becomes more and more mainstream , one and two day, even same day, delivery is an important factor in a purchaser’s decision-making process.

The complex nature of last mile delivery makes it the most expensive and important part of the supply chain process. There are many elements to last mile delivery that eCommerce companies may overlook, but can impact the customer experience and logistics costs.

According to Business Insider, last mile delivery comprises 53 percent of the total cost of shipping. With the growing expectation of "free shipping," customers are less willing to pay for delivery, forcing retailers and logistics partners to cover the expenses. With the last mile delivery comprising a large percentage of overall shipping costs, it has become a major focus for e-commerce companies and their service providers.

With the higher costs of last mile delivery, the distribution center location is a critical element in growing eCommerce business. In Kansas City, we are seeing an increasing numbers of e-commerce companies select the region for eCommerce options because of the region’s transportation infrastructure, central location and lower business operating costs.

Contact KC SmartPort to learn more about what makes the Kansas City region a great place to locate your e-commerce facility.

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