Supply chains’ last-mile delivery has become the new Pony Express. Like that famous but short-lived courier service, the global supply chain is focused on completing the final segment between supplier and customer—which in reality is anywhere between six and nine miles, according to a recent study—at breakneck speed. Unlike the Pony Express, suppliers intend on making it pay.

Time is money

As a critical link in the value chain, the last mile grabs a significant share of operating expense—about 30 percent. This is partly because end-point fulfillment centers must deliver not only the goods but fast, high-performance service. The just-leave-on-porch (JLOP) delivery model is only one among many options these days, and a diminishing one at that. Agility and flexibility are basic requirements, which smaller companies are innately qualified to perform, were it not for the cost of those two skills in this particular industry. Smart lockers, drone deliveries, and individualized service all come at a price.

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