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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Andrea Aun

Andrea Aun is a founding partner at Integration and is recognized as an important female leader among Brazilian executives, participating in the LIDEM (Group of Leading Entrepreneurial Women) Executive Committee. She is an expert within the field of Marketing & Sales and Retail and has led over 100 projects in these areas. She continues to [...]

Constanza Alves

Constanza Alves is a senior manager within Integration´s Implementation and Leadership & Organization Practices and has been working in the company since 2013. Her experience includes Change Management, Culture Transformation, PMO, Process Redesign, S&OP, PMI and Logistic Networks in sectors such as Retail, Consumer Goods, Healthcare, Technology and Industrials (Paper, Oil and Gas, Construction materials).

Diogo Selingardi

Diogo Selingardi is a director in the Finance & Management Practice and has been working at Integration since 2011. His focus includes strategy implementation, mergers & acquisitions, cost efficiency initiatives and developing management & governance models across the industrial, consumer goods, retail, private equity and financial market sectors. Diogo holds a degree in economic sciences [...]

Gauss Antar

Gauss Antar is a senior manager in the Finance & Management Practice at Integration, where he has been working since 2015. His main areas of expertise include go-to-market management, post-merger integration and market-entry projects in retail, industry and education. Gauss received a degree in economics from INSPER, including international experience at Queen's University in Canada [...]

Guido Solari

Guido Solari is a partner at Integration and the head of our LATAM offices. Guido joined the company in 2006 and is part of the Marketing & Sales Practice. He has carried out over 250 projects across Latin America, North America and Europe, serving clients in the areas of mass consumer goods, agribusiness, pharmaceuticals, media [...]

Jéssica Pavão

Jéssica Pavão is a senior manager in Integration's Finance & Management Practice and has been with the company since 2016. During her career, Jéssica has focused on leadership & organization as well as change management projects in the retail and consumer goods sectors – including post-merger integrations, organizational structure implementation, recruitment & professional development program [...]

Leticia Molina

Leticia Molina is a director at Integration's Marketing & Sales Practice and has been with the company since January 2023. Prior to Integration, Leticia worked as director of marketing and sales at Vitamina Children's Schools. Her experience includes structuring acquisition & integration plans in the school market and leading profitability & company restructurings. Leticia worked [...]

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, [...]

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 [...]

Rodrigo Weiler

Rodrigo Weiler is a partner at Integration and has been part of the Marketing & Sales Practice since 2000. During this period, Rodrigo has specialized in implementing highly complex transformational projects with a need for change management. He has led numerous projects involving go-to-market model implementation, category management, commercial model design for the retail sector, [...]

  • On 26 February 2026