Last Mile Fleet
May 30, 2023

The Power of a Last Mile Fleet: A New Era of Shipping Efficiency and Cost Savings

Jim Waters

Last mile delivery - it's the final, crucial step in the shipping process, and often the most complex. It's where consumer expectations meet logistical realities – and often the difference between a satisfied customer and a lost sale. A seamless last mile delivery process is no longer a luxury but a necessity in today’s fast-paced e-commerce environment.

As we delve deeper into the world of last mile delivery, we will explore the challenges shippers face and the defining characteristics of effective last mile fleet solutions that can help overcome these hurdles. From understanding the cost-saving potential of efficient last mile delivery fleet solutions to the importance of stellar support and communication, you'll learn why a robust last mile delivery strategy can be a game-changer for your business.

Understanding Last Mile Delivery: Key Challenges

Last mile delivery is fraught with challenges, even for the most seasoned shippers. With the rise of e-commerce and evolving customer expectations, the hurdles can be numerous and complex.

  • Customer Expectations for Speed: With the boom of e-commerce and the rise of free two-day shipping, the expectations of today’s consumers have grown to include nearly instantaneous fulfillment, putting pressure on shippers to deliver at breakneck speeds while maintaining visibility and high service levels throughout the process.
  • Rising Costs: Last mile delivery accounts for up to 53% of total shipping costs, with last mile costs for retailers expected to hit a staggering $55 billion by 2025. As consumer demand for free shipping continues to grow, shippers must identify ways to optimize last mile logistics, slashing costs and safeguarding profits.
  • Network Reliability: Last mile delivery networks are often a patchwork of various services - from multinational parcel services and owned fleets, to local courier providers and gig drivers. While many shippers rely on a combination of these services to get products to their customers’ doors, accessing reliable capacity, gaining visibility, and maintaining continuity across a fragmented network is difficult.
  • Operational Inefficiencies: The complexity of last mile logistics can inflate labor hours and intensify pressure on operational teams. Juggling intricate route planning, fragmented carrier management, and manual tracking processes can be a drain on resources, so identifying process automation opportunities is critical to improving efficiency and productivity.

The Power of Last Mile Fleet Solutions: Key Features and Their Impact

The versatility of a diverse fleet and the strength of a large driver network can unlock the door to efficiency and cost-effectiveness in last mile delivery. These attributes lay the foundation for consistently reliable capacity, competitive pricing, and a wide range of service levels, helping shippers overcome the challenges of traditional delivery methods.

Vehicle Optimization

Maximized vehicle utilization is a cornerstone of efficient last mile delivery. This involves tapping into API integration to set volume thresholds, ensuring shippers do not bear the burden of cost for unused vehicle space. This level of optimization ensures shippers never pay a premium for a larger vehicle than necessary for each shipment.

Diversity of Fleet and Driver Network

The bigger and more varied the last mile fleet - encompassing sedans, midsize vehicles, cargo vans, and box trucks - the better equipped it is to handle diverse shipping needs. An expansive network of drivers fortifies this strength, delivering versatility and capacity to meet fluctuating demand.

Integrated Delivery Marketplace

An on-demand delivery marketplace platform, accessible via a shipper portal or API, streamlines fulfillment operations for retailers, distributors, and logistics providers. This unified platform simplifies the management of all last mile deliveries, regardless of the carrier or delivery method.

Speed and Service Levels

The ability to support quick deliveries with multiple service level options - including expedited and same-day - is critical in the fast-paced e-commerce era. This agility satisfies customer expectations and provides a competitive edge for shippers.

Real-time Visibility

A good last mile fleet solution offers complete visibility into the delivery process from start to finish. Features such as real-time notifications, status updates, proactive issue resolution, and exception management empower businesses to effectively oversee their shipments in real time.


A wide range of vehicles and drivers spread across diverse geographic locations equates to better accessibility. This geographic spread enables shippers to tap into the network wherever they are, improving service reliability and the ability to target wider customer audiences.


A dependable fleet solution hinges on the quality of its drivers. Thorough vetting processes, attractive payment structures, and consistent driver engagement contribute to a "best network" environment. Shippers can have confidence in the timely and safe delivery of their goods when backed by a fleet of highly skilled and reliable drivers.

How Efficient Last Mile Fleet Solutions Drive Cost Savings

Optimized last mile fleet solutions are more than just a means to deliver goods – they are strategic enablers of cost savings. Efficient vehicle use coupled with increased delivery capacity translates into reduced shipping costs on individual shipments and over time. Leveraging solutions that accurately match the size of the vehicle to the volume of the goods ensures shippers do not pay for unnecessary space, so shippers can optimize resource utilization and enhance delivery throughput while keeping expenses in check.

The financial advantages don't stop there, though. By satisfying customers with timely and reliable deliveries, shippers can significantly reduce return costs, adding another layer of savings. Additionally, an adaptable fleet solution offers the flexibility and scalability necessary to keep pace with fluctuating demands and shifting market conditions. This ability to pivot quickly helps shippers avoid costly overruns and missed opportunities. Efficient last mile fleet solutions offer a suite of cost-saving opportunities, transforming last mile delivery from a cost center into a competitive advantage.

The Role of Support and Communication in Last Mile Delivery

The world of last mile delivery is teeming with complexities. A reliable, dedicated support system can be the beacon that navigates these challenges. Offering consistent, round-the-clock support, ideally based within the U.S., becomes not just an add-on, but a core requirement in managing last mile delivery operations.

Moreover, the foundation of a reliable last mile fleet service lies in its driver network. A stringent vetting and selection process, fortified by insurance and testing protocols, ensures that only the best and most reliable drivers are on the job. Upholding the core values of customer-centricity, dependability, and advocacy for drivers, along with facilitating direct communication with them, is essential. This approach ensures swift issue resolution and high service levels, transforming the last mile delivery service from a mere logistics provider to a strategic partner.

Meet FRAYT: Your Strategic Partner for Last Mile Delivery Fleet Solutions

Effective last mile delivery fleet solutions play a crucial role in meeting the expectations of today's consumers, ensuring shippers can maintain both efficiency and cost-effectiveness. FRAYT provides a seamless solution to these multifaceted challenges. Rather than grappling with the costs and logistics of hiring full-time employees and maintaining a fleet of vehicles to meet fluctuating demand, FRAYT offers an on-demand fleet at your fingertips. This flexibility ensures deliveries are made within customers’ timeframes, accompanied by shareable confirmation and status alerts to enhance visibility every step of the way.

For further evidence of the value that FRAYT can bring to your business, we invite you to read a recent survey that illustrates how our services help Fortune 1000 companies achieve immediate ROI. By choosing FRAYT, you're not just choosing a delivery service - you're selecting a strategic partner committed to boosting customer satisfaction, increasing efficiency, enhancing flexibility, and driving cost savings. Get started today with a free account and platform demo.

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