A Review of Last-Mile Delivery Optimization: Strategies, Technologies, Drone Integration, and Future Trends
Last-mile delivery (LMD) is an important aspect of contemporary logistics that directly affects operational cost, efficiency, and customer satisfaction. LMD represents the final stage in the supply chain journey, where items are transported from the central hub or distribution center to the end customer. This stage is very critical since it involves direct contact with the customer.
Optimization Techniques and Technologies
In this review, we provide a review of the optimization techniques of LMD, focusing on Artificial Intelligence (AI) driven decision-making, IoT-supported real-time monitoring, and hybrid delivery networks. The combination of AI and IoT improves predictive analytics, dynamic routing, and fleet management, but scalability and regulatory issues are still major concerns.
Advanced Delivery Frameworks
- Hybrid frameworks that integrate drones or Unmanned Aerial Vehicles (UAVs), ground robots, and conventional vehicles reduce energy expenditure and increase delivery range, especially in urban contexts.
- Sustainable logistics approaches, including electric vehicle fleets and shared delivery infrastructures, provide promise for minimizing environmental impact.
- Interdisciplinary approaches toward cost-effective, durable, and environmentally friendly logistics systems are essential for the changing patterns in LMD.
Historical Evolution of Logistics Carriers
The development of the industry is exemplified by R&L Carriers, a carriage company that was started by Ralph L. “Larry” Roberts I in 1965. The company started with only one truck to now a fleet of around 13,000 tractors and trailers. The deregulation to the trucking industry in early 1980’s played a major part in the development and growth of R&L Carriers as it was incorporated in concurrence with the design of a renewed system that pushes the freight industry to the new unmatched heights.
As the company influence in the freight industry grew, so did the financial muscles. This was evidently shown by the company’s strategic acquisitions:
- 1989: Acquisition of Gator Freightways, Inc., a move that propelled growth in the Southern States.
- 1992: Acquisition of Greenwood Motor Lines, Inc.
- 1996: Purchase of Herder Truck Lines, Inc., a Texas-based carrier.
Currently, R&L Carriers provides its services to a total of 50 states, in addition to Canada, Puerto Rico and the Dominican Republic, shipping approximately 45,000 shipments daily. The company uses one of the best tracking technology to ensure the freight is delivered safely to the customers, where users enter a PRO number to track shipments.
Global Supply Chain Pressures and Market Impact
Global supply chains are the arteries of global trade and are responsible for the transportation of the goods across continents. However, they are exposed to external risks which may hamper their smooth functioning. Geopolitical tensions, port congestions and pandemic have prompted unprecedented supply chain disruptions in the recent times. By aggregating data on manufacturing disruptions and transportation costs, the Federal Reserve Bank of New York has recently developed the Global Supply Chain Pressure Index (GSCPI), which is a valuable tool for gauging the intensity of these disruptions.
Since the GSCPI captures variations in transportation cost, backlogs, delivery times and stock levels, an increase in GSCPI can lead to increased costs and delays in production. Resultantly, profit margins and investor sentiment are adversely affected thereby influencing the stock market. Research reveals a predominant negative relationship for most sectors, with pronounced negative effects observed for utilities and the telecom sector.
Contemporary Logistics Service Providers
Newer players like Global Ocean Logistics India, incorporated in 2021, operate as freight forwarding and multi-modal logistics services providers. Its offerings span ocean freight forwarding, road and rail transport, air freight, container freight station services, and customs clearance. The company follows an asset-light model and relies on a network of agency partners for global reach.
Financial Growth and Operational Data
Between FY23 and FY25, the company handled close to 25,000 shipments across 263 global ports, amounting to over 73,000 TEUs. The following table illustrates the recent financial performance of Global Ocean Logistics:
| Metric | Fiscal Year 2025 (FY25) | Growth (FY24-FY25) |
|---|---|---|
| Total Income | Rs 191.6 crore | 85% Increase |
| Profit After Tax (PAT) | Rs 6.82 crore | 159% Increase |
| Shipments Handled | ~25,000 (Total FY23-FY25) | N/A |
The company aims to raise Rs 30.41 crore through a fresh issue of shares to fund working capital requirements and general corporate purposes, reflecting the ongoing expansion and capitalization of the logistics sector.