Last mile delivery is the final stage of the logistics chain — the movement of a parcel or consignment from a regional distribution hub or sorting facility to the end recipient's address. It is the shortest leg of the delivery journey and the most expensive, accounting for 60–70% of total delivery costs in European B2C parcel logistics because consolidated linehaul economics break down completely at the individual address level.
Where does the term "last mile delivery" come from?
Last mile delivery takes its name from telecommunications — where "last mile" described the cost and difficulty of connecting individual homes and businesses to the main network trunk, with the final cable or wire segment serving only one subscriber rather than thousands.
The same economic structure applies in logistics. A linehaul truck covers 500 km making 1–2 consolidated stops — the entire load moves as one unit, cost per kilometre is low, and the vehicle runs continuously. A last mile delivery van in a Belgian or European city covers 80–120 km making 80–120 individual stops per day — each stop requires the driver to leave the vehicle, locate the address, attempt delivery, and manage the outcome. The vehicle spends as much time stationary as moving, and each delivery is unique rather than consolidated.
Last mile delivery is one of the most studied problems in logistics operations — the 25% first-attempt failure rate and the 60–70% cost share make it the primary optimisation target for every European parcel carrier.
Why is last mile delivery the most expensive stage of logistics?
A last mile delivery van makes 80–120 individual stops per day across 80–120 km — versus a linehaul truck making 1–2 consolidated stops across 500 km — and that stop density reversal drives the 60–70% cost share of total delivery spend.
Three cost drivers determine the expense of any last mile operation. First, stop density: a van making 100 stops per day earns revenue 100 times but incurs the full fixed cost of driver, vehicle, fuel, and insurance once — any reduction in completed stops raises the cost per successful delivery. Second, failed delivery attempts: 1 in 4 parcels fails on the first delivery attempt in dense European urban areas — the recipient is absent, the address is inaccessible, or the delivery window conflicts with the recipient's schedule. Third, address-level variables: urban traffic congestion, building access restrictions, parking limitations, and delivery time window compliance add dwell time per stop that does not exist in linehaul operations.
Route planning — the optimisation of stop sequence, vehicle loading, and routing to minimise distance and dwell time per delivery — is the primary operational lever for reducing last mile cost per stop.
What is out-of-home delivery and what is a PUDO point?
Out-of-home delivery is the delivery of a parcel to a PUDO point — a designated third-party collection location such as a staffed parcel shop, retail pick-up point, or automated parcel locker — rather than to the recipient's address directly.
PUDO stands for Pick-up and Drop-off — the industry term for any out-of-home collection infrastructure. A van delivering 50 parcels to one PUDO location makes 1 stop instead of 50 individual home delivery attempts — parcel density per stop approaches linehaul economics and the failed delivery problem disappears because the recipient collects at their own convenience. By 2025, Europe had 646,000 active out-of-home delivery points — 462,000 PUDO locations and 184,000 automated parcel lockers (Last Mile Experts, 2025). Merchants integrating out-of-home delivery reduced last mile costs by up to 20% on average.
The four carrier partners operating PUDO infrastructure in Belgium that Go Trans uses for parcel delivery:
DPD: DPD Pickup network — staffed parcel shops and lockers — 7,500+ Pickup points across Europe, with Predict SMS notification confirming a 1-hour delivery window before the driver arrives
DHL: Packstation automated locker network and DHL ServicePoints — staffed collection locations across Belgium and Europe
UPS: Access Point network — authorised retail locations for parcel collection across major Belgian commercial areas
bpost: national postal PUDO network — universal service coverage across all Belgian postal codes
What is the difference between B2C and B2B last mile delivery?
B2C last mile delivery targets residential addresses where recipient presence cannot be guaranteed — B2B last mile delivery targets business addresses with defined receiving hours, a consistent receiving team, and loading bay access during business hours.
The 25% first-attempt failure rate applies primarily to B2C residential delivery — the recipient works away from home during the standard delivery window, the parcel does not fit through the letterbox, and no secure alternative exists at the address. B2B commercial delivery operates in a different environment: the receiving team is present during business hours, delivery windows are agreed in advance, and loading bay access removes the address-location and access problem that slows residential delivery.
Both B2C and B2B last mile delivery require a proof of delivery — the document confirming the consignment reached the named consignee in the correct condition. B2B requires a signed, timestamped delivery receipt from an authorised receiving contact. B2C increasingly accepts photo confirmation or electronic locker collection confirmation as the delivery record.
How does Go Trans connect to last mile delivery?
Go Trans arranges parcel delivery across Europe through carrier partners DHL, DPD, UPS, and FedEx — each of whom operates its own last mile delivery network from regional depot infrastructure to the end recipient's address or chosen PUDO point.
Go Trans coordinates collection from the sender's address, confirms the carrier and service tier at the point of booking, and issues a tracking reference that covers the consignment from dispatch through the carrier's last mile network to final delivery confirmation. The carrier's last mile infrastructure — DPD Predict notification, DHL Packstation lockers, UPS Access Points — operates as the final stage of every Go Trans-arranged parcel consignment. The Go Trans logistics glossary covers 80+ freight and delivery terms — from last mile delivery and PUDO to drayage, demurrage, and freight forwarding — structured as a reference for Belgian and European businesses arranging cross-border shipments.