Last Mile Delivery

Publications

Last Mile Delivery

Make or break elements of the retail supply chain


For retailers, the last mile isn’t just the final step in getting an order to the door —
it’s where profitability, customer loyalty and ownership of the customer
relationship are ultimately won or lost.


Demand for home delivery has grown rapidly, yet providing it at a profit remains difficult and with no single proven pathway to success. New entrants are raising service levels and subsidizing losses to capture share. Today’s delivery partners can become tomorrow’s competitors, and every retailer experimenting with how to pick, pack and deliver is consuming cash and time in the process.

The stakes are easy to underestimate. As online takes a growing share of retail sales, 83% of shoppers say they are unlikely to return to a brand after a poor delivery experience – while home delivery for store-picked groceries can carry margins as low as -15%.

The prize for getting it right is just as clear: dominate delivery and you can own the customer, their data and their share of wallet. The cost of getting it wrong is exactly the opposite.

Winning means balancing rising consumer expectations against the hard economics of fulfillment — a balance that plays out across three decision levels:

  • Strategy – Setting the foundation: designing the right service offerings by customer and journey, evaluating which logistics models and partners fit your reality, and costing the options before committing.
  • Operationalize – Bringing strategy to life: building the operating model, technology platform and organizational structure needed to deliver reliably, efficiently and profitably, with real care for the people who make it work.
  • Implement – Proving and scaling: launching controlled pilots, planning a wider rollout that minimizes disruption, and providing hands-on support so teams can sustain and improve the change.

What “getting it right” looks like 

Across the retailers we’ve supported, redesigning the last mile has delivered tangible results: 30% lower delivery costs through a redesigned omnichannel model; a shift from a five-day average to reaching 99% of customers within four hours; delivery-team productivity up more than 2.5x with costs halved; and the ability to scale at pace  in one case absorbing 300% order growth through the pandemic. 

3 core components required to win 

The last-mile race is more than a cost exercise 

Reviewing last-mile logistics is often framed as a way to cut costs, but the upside runs further. Strong delivery experiences feed basket size, loyalty, new revenue streams and visit frequency: 98% of customers say shipping affects their brand loyalty, and over half of satisfied customers say they would pay for a delivery membership.

Download the full report to access Integration’s three core components for winning the last mile, real client cases with measurable results and a practical path from strategic focus to operational execution, designed to give you clear direction within six weeks.

DOWNLOAD THE FULL REPORT

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Alessandra Reganati

Alessandra Reganati is a director and has been working in our Supply Chain practice since 2014, helping our clients to overcome challenges related to logistics, planning and efficiency. She has worked with clients in industries as diverse as Consumer Goods, Petrochemicals, Healthcare, Retail, and others with projects such as S&OP redesign, Order-to-Cash process improvement, Inventory [...]

Ana Queiroz

Ana Queiroz is an senior manager at Integration's Supply Chain Practice and has been with the company since January 2021. Much of her experience includes implementation, planning and logistics projects in the areas of cosmetics retail, food, mining and glass manufacturing. Her work has focused on structuring and developing analyses, support requirements, processes and tools, [...]

Gerard Schoor

Gerard Schoor is a partner at Integration based in Paris, France. He led the Mexico City office from 2008 until 2020. He is currently in charge of Integration’s business development in Europe where we work from offices in Munich and London. His main areas of expertise revolve around supply chain, manufacturing, circular economy, strategic roadmaps, [...]

Guilherme Paz

Guilherme Paz is a director at Integration. Having joined the company in 2015 and holding over a decade of experience, Guilherme has become one of Integration's most trusted voices in AI, digital and business operations. His focus lies in the financial services, retail and FMCG industries, with various projects addressing digital businesses strategies and operations [...]

Jamie Gale

Jamie Gale is a partner at our  London Office. He has spent more than 25 years in the consulting industry and private sector. Jamie is recognized for his extensive experience in digital, developing and executing strategies that enable business transformation. He has supported clients across manufacturing, retail, telecommunications, financial services, food & beverage and transportation [...]

Julian Lempp

Julian Lempp is a senior director at Integration's Munich Office. He has experience both within consulting and industry, having previously worked for a leading German consultancy and as a business development manager within an industrial goods manufacturer. While he has experience across many project types, his specialization lies in supply chain, having undertaken numerous consulting [...]

Luis C Vidal

Luis C Vidal is a partner at Integration where, since 1999, he has been working in the Supply Chain practice. During this period, he has led projects in the most diverse sectors and in themes such as Logistic Optimizations, Process Efficiency, Planning (S&OP), Industrial Strategy, Go-to-Market Strategy and Distribution Structure. His international experience encompasses the [...]

Marília José

Marília José is a Sr Director at Integration and has been with the firm since 2014. With expertise in Supply Chain and Finance & Management, she specializes in S&OP, retail supply chain, efficiency and cost reduction, and transformation projects. Her experience spans post-merger integration, strategic planning, organizational model development and process design, across the retail, [...]

Raphael Prado

Raphael Prado is a senior manager in the Supply Chain Practice and has been at Integration since April 2022. His experience includes projects focused on S&OP, logistics networks, post-acquisition integration and inventory management.

Ricardo de la Cueva

Ricardo de la Cueva is a director on Supply Chain Strategy at Integration, working since 2010 at the firm. He has over 20 years of experience in Supply Chain collaborating with companies from diverse industries such as FMCG, Food & Beverages, Healthcare, and Petrochemicals.  At Integration, Ricardo has developed and implemented important Supply Chain projects [...]

Rodrigo Seabra

Rodrigo Seabra is the partner at our Office in Munich. He joined Integration in 2006 in Brazil and led the Mexico Office, before taking on responsibility of the Munich Office. Rodrigo is part of our Implementation Practice, has amassed international experience in industries such as consumer goods, retail, food & beverage, pharmaceutical and healthcare and [...]

Tiago Sakomura

Tiago Sakomura is an engagement manager within Integration’s Supply Chain practice, and has been working in the company since January 2019. His experience includes mainly projects in retail (food and fashion retailers) and projects in transport and logistics.Tiago Sakomura holds a degree in Mechanical Engineering from Escola de Engenharia de São Carlos, where he graduated [...]

  • On 26 February 2026