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Supply Chain Graphic of the Week: Just What Does Last Mile Delivery Really Cost?


Labor Costs Rose 9% Last Year, Pushing Overall Delivery Costs Soaring

 

July 12, 2018

 

We all know last mile delivery is all the rage these days in support ever more rapid efulfillment - and that it is very costly.

 

But just how costly?

 

The recently released 2018 State of Logistics Report from CSCMP and consulting partner AT Kearney provided an estimate of those costs for a dense urban environment, as shown in the graphic below.

Obviously, costs would be higher in less populated areas.

 

 

So, the cost is roughly $2.90 per delivery. Is that a lot? As a percent of profit margins on most orders, we would definitely say yes. But if the consumer is paying something for it, than that changes the whole equation.

 

The report says that the largest cost component, delivery labor, is heading upward, amid fierce competition for drivers or other delivery personnel. Those labor costs were up 9% in the US last year, leading to an overall cost increase of 7-8%.


Any Feedback on our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback section below.

 

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