In the intricate choreography of global trade, every stage of the End-to-End Supply Chain Management process—from sourcing raw materials to factory gates and intermodal transport—is critical. Yet, for senior supply chain leaders, the final, shortest, and arguably most complex leg of the journey demands disproportionate strategic attention: the last mile logistics.
As a seasoned professional who has managed supply chains through several industrial revolutions, I can assert that the final mile, which involves moving goods from the distribution hub to the customer’s doorstep (be it a consumer, a retailer, or a B2B partner’s facility), is no longer a simple operational expense. It is a decisive brand touchpoint and the ultimate cost center, accounting for an estimated 41% to 53% of the total shipping cost. Efficiency here is not just an advantage; it is survival. For Supply Chain Companies in India, where unique challenges like dense urban centers and inadequate infrastructure compound this issue, mastering the last mile delivery process is the key to unlocking true competitive parity and profit.
What is Last-Mile Delivery?
Last mile delivery is the final step in the supply chain process: the movement of goods from a transportation hub, distribution center, or local warehouse to the final delivery destination. In the B2B context, this means ensuring time-sensitive components arrive at the manufacturing line, or bulk retail stock reaches the store floor precisely on schedule.
The true challenge of last mile logistics is rooted in its inherent inefficiencies. Unlike bulk part Truck load(PTL) Logistics movements on highways where economies of scale are realized, the last mile involves highly fragmented, high-frequency, low-volume trips. These characteristics lead to:
Dispersed Drop-offs: Multiple stops in traffic-congested zones.
Failed Deliveries: Requiring costly re-attempts due to customer unavailability or inaccurate address data.
Rising Costs: Direct expenses related to fuel, driver compensation, and vehicle maintenance.
This segment’s complexity highlights a fundamental distinction: SCM vs Logistics. Logistics is the execution of movement; SCM is the strategic oversight. Pitting cost control against speed and accuracy requires strategic SCM, not merely operational logistics brute force.
How Does Last-Mile Delivery Work?
1. Order Placement
The process begins when customers place orders via an online platform or app. The system automatically checks inventory levels through integrated Warehouse Management Systems(WMS) and allocates stock.
2. Hub Transfer
Goods are moved from a central warehouse to local hubs or custom warehousing facilities closer to the customer. This step aligns with inbound and outbound logistics planning.
3. Route Optimization
Using AI-driven tools, the most efficient route is mapped. This reduces fuel costs, shortens delivery times, and improves sustainability.
4. Delivery
Orders are dispatched via local fleets, which may include vans, EVs, or two-wheelers for hyperlocal delivery.
5. Customer Delivery
The final step is delivering the order to the customer’s doorstep, often tracked in real time with IoT and blockchain-enabled solutions.
Top 10 Last-Mile Delivery Companies in India | 2025 Updated
1. Ethics Prosperity2. Delhivery3. Ecom Express4. Xpressbees5. Shadowfax6. Ekart Logistics (Flipkart)7. Blue Dart Express8. Amazon Transportation Services9. Gati (Allcargo Group)10. DHL eCommerce Solutions
1. Ethics Prosperity
Before assessing volume or valuation, a Supply Chain Head must evaluate a potential partner through the lens of Ethics Prosperity—the belief that sustainable, ethical operations create superior long-term stakeholder value. A company committed to this principle will demonstrate:
Green Logistics: Investment in Electric Vehicle (EV) fleets and battery-swapping infrastructure to reduce the carbon footprint.
Fair Labor Practices: Transparent compensation and training for delivery agents, ensuring social sustainability.
Data Integrity: Secure, unalterable transaction records, potentially utilizing Blockchain in Supply Chain for enhanced transparency.
The choice of partner is an ethical statement that impacts your brand’s reputation.
2. Delhivery
As one of the largest last-mile delivery companies in India, Delhivery offers a comprehensive suite of logistics services. Their investments in automation, AI, and EV fleets make them a preferred partner for e-commerce and retail businesses.
3. Ecom Express
Ecom Express is a market leader with a strong focus on the e-commerce ecosystem. They emphasize technology-driven solutions like AI for precise address mapping and optimal delivery routes, covering over 97% of the Indian population.
4. Xpressbees
Xpressbees combines speed and cost-efficiency, offering hyperlocal delivery and long-haul logistics. Their network expansion in rural areas makes them one of the fastest-growing last mile delivery companies in India.
5. Shadowfax
Shadowfax focuses on crowdsourced delivery models, leveraging gig workers to support quick commerce companies and food delivery businesses. Their flexible model is key for quick commerce vs e-commerce fulfillment strategies.
6. Ekart Logistics (Flipkart)
Backed by Flipkart, Ekart dominates retail logistics with its scalable part truck load and last-mile solutions. They’ve pioneered order fulfillment processes that integrate seamlessly with Flipkart’s massive platform.
7. Blue Dart Express
Blue Dart is known for premium, reliable logistics. With strengths in B2B logistics solutions, their last-mile services cater to sensitive shipments such as banking, healthcare, and high-value goods.
8. Amazon Transportation Services
Amazon’s last-mile arm combines warehouse management, IoT, and blockchain in supply chain for seamless, traceable delivery. Their innovation-driven model has influenced how other supply chain companies in India operate.
9. Gati (Allcargo Group)
Gati offers integrated logistics management, combining long-haul freight with last-mile delivery. Their extensive fleet and pan-India reach make them a reliable partner for retail and manufacturing sectors.
10. DHL eCommerce Solutions
DHL leverages global expertise for Indian operations, emphasizing green logistics with EV fleets and automated hubs. Their solutions are built for scalability, making them a strong choice for multinational companies.
Future of Last-Mile Delivery in India
The Hyperlocal and Quick Commerce Model (The 10-Minute Race)
The rise of hyperlocal delivery and quick commerce companies like Zepto and Blinkit has set new standards. With 10–30 minute delivery promises, businesses must invest in micro-fulfillment centers, AI-driven inventory planning, and digital ecosystems.
Sustainable Logistics: The Rise of EV Fleets and Green LMD
Sustainability is now central to logistics strategy. EV adoption, route optimization, and eco-friendly packaging will define the next decade of last-mile logistics in India.
Automation in Delivery: Drones, Lockers, and Parcel Boxes
Automation is the solution to the high cost and low efficiency of traditional last-mile processes.
Drones (UAVs): While regulatory hurdles exist, drones are being piloted for medical and light-weight parcel delivery, offering a way to bypass traffic and congestion in challenging terrains.
Blockchain Integration: Blockchain in Supply Chain ensures a transparent and immutable record of every transaction and package transfer. This use of distributed ledger technology, combined with IoT, is essential for high-value B2B and pharmaceutical logistics, enhancing trust and security. Furthermore, its use in Blockchain in smart warehousing can ensure seamless and verified inventory handoffs to the final carrier.
Ground Robots and Lockers: Hybrid models using drones and ground vehicles, or static solutions like parcel lockers, tackle the perennial issue of failed deliveries, offering flexibility for customers who may be unavailable during standard hours.
Conclusion
The last mile delivery sector is at an inflection point. The winners of this new, hyper-competitive era will not merely be the fastest or the cheapest, but the smartest and the most responsible.
As a strategic supply chain leader, my guidance is clear: recognize that last mile logistics is the ultimate performance indicator for your End-to-End Supply Chain Management. The focus must be on leveraging predictive analytics and AI to eliminate operational blunder—such as inaccurate forecasting or non-optimized routes. Invest in partners who prioritize technology and scale across both inbound and outbound logistics.
Crucially, align your strategy with the principle of Ethics Prosperity. By selecting last mile delivery companies that prioritize EV adoption, fair labor, and transparent data through solutions like Custom Warehousing and Blockchain in Supply Chain, you build a logistics network that is not only efficient and scalable but also resilient and responsible. This holistic approach ensures sustainable growth, delivering value that extends far beyond the final delivery to enhance both your bottom line and your brand's standing in the future of Indian commerce.
