A supply chain is a system of different components coming together to facilitate the delivery of goods to a customer. Often complex, shippers categorize the journey through a supply chain as the first mile, middle mile, and last mile. This article will discuss the middle and last mile and explain how Covid-19 affected last-mile delivery.
What is Middle Mile Delivery
Lying between the first mile and the last mile in a supply chain is the middle mile. Middle-mile delivery is when companies transport goods from warehouses to brick-and-mortar stores. The freight movement in middle mile delivery is mostly consolidated and palletized. Middle-mile delivery may also be from warehouse to warehouse or distribution center. The distribution center is where the freight is stored, sorted, and counted for inventory control. Despite being overlooked, middle-mile delivery is just as valuable as the rest of the supply chain.
What is Last-Mile Delivery
Last-mile delivery is the final part of a supply chain in which the freight reaches its ultimate destination. An example can be from a warehouse to the customer’s doorstep. Last-mile differs from middle-mile delivery, which can be the movement of goods from a port to a warehouse. The middle and last-mile logistics are different because of the destination. Since the middle mile is usually to a store or a fulfillment center, the customer may not be involved in the logistics process. Since the last mile is to the customer, the goods are usually never palletized compared to the middle mile.
One of the main focuses of the last mile is the end customer. Speed is a significant component since the customer expects the goods at a specific time. Last-mile delivery can also include in-house delivery and installation services. Because of this, last-mile delivery is probably the most expensive part of the shipping process. Although the middle mile and last mile differ in logistics, they are equally essential parts of a supply chain.
How did Covid-19 impact Last-Mile Delivery?
When the coronavirus pandemic began escalating globally, supply chains directly felt the ripple effect. With many countries on lockdown, customers started not going to brick-and-mortar stores to buy their products. Due to social distancing, it became more common for goods to be purchased online and delivered to a customer’s home. Even after the business started to reopen, customers began to see e-commerce as a primary shopping source. Many companies had to change how they thought of last mile delivery and started to factor in e-commerce.
The coronavirus pandemic increased the world’s need for last-mile delivery by creating a demand to have goods transported. The global last-mile delivery market is predicted to rise from $30 billion in 2018 to over $50 in 2025. A1 Freight Solutions understands the demand for last-mile delivery and is prepared to help. We respond by working diligently to find the carrier capacity to move your goods. If you plan on moving freight or need a quote, contact A1 Freight Solutions at 305-821-8995. Our experts have you covered whether your cargo needs to be moved first-mile, last-mile, or anywhere in between. We also provide comprehensive solutions ranging from drayage to temperature-controlled and more.