Innovative Strategies for Sustainable Last-mile Deliveries in a Supply Chain

Last-mile deliveries have shown a paradigm shift post-pandemic—they have become greener. As businesses are focused on becoming more sustainable, logistics operations need to consider each element of their delivery model and find ways to become more sustainable.

Earlier, customer demand for free and fast deliveries led to the development of the 10-minute delivery model, which ultimately proved to be a significant failure, especially for startups. The plan was for a boom in the first two years of the pandemic, but a sharp decline occurred, with some businesses, such as Fridge No More and Buyk (New York and Europe), closing down. Only big giants, like Gorilla (Germany), have been able to survive the high last-mile delivery costs; however, they later got merged with Getir.

It is no surprise that the last-mile delivery accounts for 53% of the total shipping cost and 41% of total supply chain costs. If the measures are not taken to manage last-mile delivery costs, we can expect a 32% jump in carbon emissions from urban delivery traffic by 2030. According to a Capgemini Research Institute report, last-mile deliveries account for 41% of all supply chain costs worldwide, which is half of the shipping and supply chain costs spent on the final mile. Moreover, if we do not optimise last-mile deliveries, profits can decline by 26% in three years.

Let’s explore some innovative approaches that can help you reduce costs and ensure carbon-neutral deliveries.

Use e-vehicles for deliveries

Switch from traditional fuel-powered vehicles to electric vehicles (EVs) or e-bikes to ensure carbon-neutral deliveries. It is one of the most impactful ways to reduce emissions. Furthermore, EVs have zero tailpipe emissions, which means no exhaust gases or pollutants are released into the atmosphere. They also reduce noise pollution and are eligible for green incentives or tax breaks in many areas. Green vehicles can help you lower fuel costs, save on taxes, and foster sustainability.

Adopt scheduled deliveries

Instead of offering on-demand deliveries, encourage your customers to select time slots or delivery days. This allows you to group orders geographically and dispatch fewer vehicles, maximising capacity. Some businesses, such as milk or bottled water deliveries, often provide scheduled deliveries rather than on-demand deliveries. Adopting this delivery model can help you reduce empty miles and carbon footprint, improve driver productivity, and offer transparency and reliability to your customers.

Multi-stop route optimisation

Use AI-based delivery management software that integrates GPS-powered route planning tools to optimise deliveries with multiple stops. They work on algorithms that consider external factors, such as traffic, distance, and time windows, to create the shortest, efficient delivery route. It also tells your driver which order to deliver first and last, ensuring there are no empty miles, and reducing fuel consumption and delivery turnaround.

Implement eco-friendly packaging

Sustainable packaging can significantly reduce your environmental impact. You can use recyclable materials, compostable alternatives, and reusable containers for regular clients and ensure minimal packaging. For instance, if you are a bottled water business, you can encourage your customers to return empty bottles or crates, creating a deposit-return system.

Leverage advanced technology

Integrate smart logistics software, IoT sensors, and predictive analytics to gain better visibility into deliveries. Implementing these technologies can help you track driver behaviour and optimise fuel usage, alert customers with real-time ETAs, and predict future demand to plan efficient inventory stocking and routing.

Engage in circular logistics

Circular logistics focuses on closing the loops, which includes collecting packaging or reusable containers during deliveries, handling reverse logistics for returns or recycling, and partnering with local recyclers or refilling stations.

Communicate your efforts

It is crucial to educate and spread awareness about your green practices initiative and offer eco-friendly delivery options during checkouts. This will help you build trust and encourage environmentally conscious buying behaviour. You can add green labels to the ordering apps or websites. Share your sustainability goals and achievements on social media or via email to promote your brand with purpose.

Industries benefiting from scheduled deliveries

Dairy deliveries

Freshness and timing are critical for the milk industry. Scheduled deliveries enable them to forecast inventory demand and avoid spoilage due to overstocking. This ensures the timely delivery of perishable goods and bulk deliveries to multiple customers, reducing missed deliveries and customer no-shows. They can have milk delivered daily or weekly, and other dairy products, depending on their preferences.

Bottled water deliveries

Bottled water businesses deliver their products on a scheduled basis rather than daily, unlike milk deliveries. Scheduled deliveries provide demand predictability, ensuring timely deliveries and consistent supply. This facilitates route planning for bulk deliveries, supports crate and bottle return systems (circular logistics), and reduces last-minute dispatch requests.

Pharmacy logistics

Medication deliveries frequently follow a recurring cycle and must be completed on time to ensure patient safety and regulatory compliance. This supports patient-specific delivery timing, reduces the risk of delivery failure or storage issues, and enables temperature-controlled, compliant deliveries. Pharmacies or medical suppliers can arrange medication deliveries for chronic patients, guaranteeing timely refills and proper usage.

Grocery deliveries

Due to the emphasis on freshness, timeliness is essential in the grocery delivery industry. You can deliver groceries on alternative days or weekly in a defined delivery time slot. Such deliveries are predictable due to early ordering. This helps ensure timely deliveries and better inventory management, preventing stockouts and overstocking.

Conclusion

As last-mile or direct-to-customer deliveries grow in volume and importance, making them sustainable has become strategically critical. Electric vehicles, scheduled deliveries, delivery management systems, eco-friendly packaging, and smart technologies all help businesses cut costs and reduce their environmental impact.

This shift towards carbon-neutral delivery is not just about regulatory compliance or public image; it is more about building resilience and a future-ready supply chain. Businesses that adopt these strategies will not only meet rising customer expectations but also create long-term value through operational efficiency and environmental responsibility.

The only question that remains is, How soon can you make it happen?”

Effective supply chain management requires an organised, well-managed logistics operation to ensure parts, products, and services move from suppliers through the supply chain to the end user on time and in good condition. The aim of a logistics operation is to provide better efficiency, reduce operational costs and promote service quality. Find out how IoSCM can help you enhance your logistics function. Call 0800 1422 522 today.