The last mile is where logistics meets the customer. It is the most expensive leg of the journey — and the one they remember.
Last-mile delivery is the final leg of a shipment's journey: from a local distribution hub or store to the customer's home, office or pickup point. It may be only a few kilometres, but it accounts for as much as half of the total delivery cost and is the part of the process the customer actually sees. In Saudi Arabia's fast-growing e-commerce market, the last mile has become a competitive battleground.
Why the last mile is expensive
Line-haul trucks move thousands of parcels between cities in one trip. The last mile breaks that consolidation apart: a driver handles perhaps 80 to 150 stops a day, each with its own address, parking, waiting and hand-over. Failed attempts, traffic and dispersed addresses multiply the cost.
Saudi-specific challenges
Address quality has improved with the National Address system, but many customers still rely on landmarks and phone directions. Extreme summer heat limits how long parcels can stay in a vehicle. Residential deliveries often depend on someone being home, and weekend delivery expectations differ from other markets.
What good last-mile delivery looks like
- Delivery windows communicated by SMS or WhatsApp with live tracking.
- Drivers who call ahead in Arabic and English.
- Card and cash on delivery with instant confirmation.
- Photo or signature proof of delivery.
- First-attempt success rates above 90 percent.
Models for the last mile
Own fleet, outsourced courier, crowd-sourced drivers and pickup lockers each have a role. Most retailers combine an outsourced courier partner for scale with a small own fleet for premium or same-day deliveries.
Measuring performance
Track on-time delivery, first-attempt success, cost per delivery, returns rate and customer rating. Small improvements compound quickly at volume.
TQM International provides last-mile delivery in Riyadh, Jeddah and Dammam for e-commerce, retail and B2B customers with real-time tracking and proof of delivery.
