The last mile is the most expensive part of any delivery — often more than half the total cost of moving a parcel. It's also where the biggest, fastest savings hide.
Why the last mile is so costly
Short, dense, unpredictable trips don't benefit from the economies of scale that long-haul freight enjoys. A driver idling in traffic, doubling back for a missed address, or waiting at a closed gate burns fuel and hours with nothing to show for it.
What dynamic routing changes
Instead of a fixed route planned the night before, dynamic routing recalculates the optimal sequence continuously — accounting for live traffic, time windows, vehicle capacity, and new orders that arrive mid-shift.
- Fewer kilometres driven per delivery
- Higher drops-per-hour, so the same fleet does more
- Less idle time and fewer failed first attempts
The 30% number, in practice
Across our pilot lanes in the Kathmandu valley, re-sequencing routes in real time cut distance per delivery by a quarter and lifted daily drops by a third. Net effect on last-mile cost: roughly 30% down.
The lesson is simple: the route is not a plan you make once. It's a decision you keep making, all day long.
