Our Insights and Learnings

Updated October 2026

What is last mile delivery?

Last mile delivery refers to the transportation of goods from a distribution center or warehouse to the final destination, usually a customer's front door. This step is the last and most critical in the supply chain process because it has a direct impact on customer satisfaction and loyalty.

How does last mile delivery work?

Last mile delivery can be carried out using various transportation methods, including trucks, vans, cargo bikes and electric vehicles. To ensure timely and efficient delivery, companies often employ their in-house delivery teams or partner with local courier services.

The delivery process usually begins with the shipment of products from a warehouse or distribution center to a local hub, where the packages are sorted. Transport planners then use route optimization software to determine the most efficient delivery routes, taking into account factors such as delivery times, driver availability, and customers' operating hours. Finally, the routes are dispatched to the drivers.

Why is it important?

Last mile delivery is crucial for companies aiming to provide a positive customer experience and gain a competitive edge. Customers expect fast and reliable delivery, with many opting for same-day or next-day shipping.

An efficient last mile delivery process can help businesses increase customer satisfaction and loyalty, shorten delivery times, and lower shipping costs. On the other hand, a poor last mile delivery experience can lead to negative reviews, loss of revenue, and damage to a company's reputation.

Last mile delivery also has environmental and societal implications. According to the Flemish government, urban logistics accounts for a quarter of CO2 emissions from city traffic and for 30 to 50% of other emissions such as nitrogen oxides and particulate matter. By planning shorter routes and exploring alternatives such as electric vehicles or cargo bikes, companies can reduce their carbon footprint.

How do you optimize last mile delivery?

To optimize their last mile delivery processes, companies can leverage technology such as route optimization software with real-time tracking and automated delivery notifications. These tools help businesses improve delivery accuracy, shorten delivery times, and give recipients real-time updates on their delivery status.

"Customer centricity at its best! For us, the track and trace the customer receives is one of the main reasons to work with Dropon." Stefaan, CEO at Piano's Maene

Another way to optimize last mile delivery is by partnering with local courier companies. This can give businesses access to a larger pool of drivers, which can better accommodate seasonal fluctuations.

In summary, last mile delivery is a crucial part of the supply chain process, with direct implications for customer satisfaction, business reputation, and environmental impact. By prioritizing the optimization of their delivery processes, companies can gain a competitive advantage, increase customer satisfaction, and save on fuel and time.

Updated October 2026

An efficient logistics process lowers costs and increases customer satisfaction. In this article, we cover the benefits of a streamlined logistics process and five practical tips to improve your logistics productivity.

The benefits of a streamlined logistics process

1. Lower costs: an optimized logistics process reduces operational costs, including fuel, storage and labor, leading to significant savings.
2. Higher customer satisfaction: efficient logistics ensures on-time deliveries, accurate order fulfillment and clear communication, which boosts customer satisfaction and loyalty.
3. Stronger industry reputation: a reputation for reliable logistics sets your business apart and attracts new opportunities, partners and customers.

Tip 1: Optimize your routes

One of the most impactful tools for logistics productivity is route optimization software. It minimizes travel time, reduces fuel consumption and cuts costs. By taking into account historic traffic data, delivery time windows and vehicle capacity, route optimization software identifies the most efficient routes for your fleet. The benefits:

• Fewer kilometers and lower fuel costs: optimized routes reduce unnecessary driving.
• Timely deliveries and happier customers: accurate planning means reliable, punctual service and more repeat business.
• Better use of resources: you make the most of your fleet's capacity and reduce empty kilometers.
• Less time spent planning: the algorithm does the heavy lifting, so planners can focus on exceptions.

"As a transport planner, the time I save with Dropon is more than significant!" Dries, transport planner Belgium at Piano's Maene

Tip 2: Adopt proactive fleet management

Effective fleet management is crucial for logistics productivity.

• Real-time tracking: monitor your vehicles live, spot deviations from planned routes, handle delays quickly and keep customers informed.
• Data-driven decisions: analyze your fleet's performance to find areas for improvement and target training where it matters.
• Higher driver satisfaction: optimized routes mean less time in traffic and less stress, which leads to better performance and lower turnover.

"Dropon allows me to justify all costs to management." Ken, team lead transport at Covetrus

Tip 3: Improve inventory management

Use inventory management systems with real-time data to optimize stock levels, speed up order fulfillment and reduce transport costs. Techniques like ABC analysis and Just-in-Time (JIT) can streamline inventory flows and eliminate unnecessary expenses.

Tip 4: Foster collaboration and communication

Smooth collaboration between stakeholders is essential for effective logistics operations. Set up open lines of communication and use collaboration tools to keep information flowing. Strong relationships with suppliers, carriers and customers ensure alignment, proactive problem-solving and fewer delays.

Tip 5: Focus on continuous improvement

Ongoing improvement is essential for lasting productivity. Methodologies like Lean or Six Sigma help you streamline processes, reduce waste and maximize efficiency.

Conclusion

Improving logistics productivity is an ongoing process that requires a strategic approach. By optimizing routes, managing your fleet proactively, improving inventory management, fostering collaboration and continuously improving, you can achieve significant cost savings while delivering outstanding service to your customers.

Updated October 2026

Urban logistics has a disproportionate impact on pollution in cities. According to the Flemish government, it accounts for a quarter of CO2 emissions from city traffic and for 30 to 50% of other emissions such as nitrogen oxides and particulate matter. That is why sustainable solutions for logistics operations are so vital. The Flemish Green Deal for Sustainable Urban Logistics (Green Deal Duurzame Stedelijke Logistiek) was an initiative focused on exactly that: reducing the environmental impact of logistics in cities.

Goals of the green deal

The green deal for sustainable logistics had several key goals:

1. Minimizing unnecessary vehicle mileage. By optimizing delivery routes and avoiding detours, companies can reduce fuel consumption and lower carbon emissions.
2. Promoting sustainable transportation modes and times. Organizations can cut emissions further by using electric vehicles, cargo bikes, or scheduling deliveries during off-peak hours.
3. Ensuring cleaner transportation. Promoting zero-emission vehicles makes the kilometers driven as environmentally friendly as possible.
4. Improving collaboration among stakeholders. By working together, sharing resources, and adopting sustainable practices, organizations can collectively create greener and more efficient logistics operations.

Key achievements

Over its duration, the green deal achieved several important milestones:

• Stakeholder engagement: the initiative brought together 49 participants, mainly companies alongside social organizations and several cities, according to the Inspiration guide for sustainable urban logistics published by the King Baudouin Foundation.
• Impactful actions: together, the participants committed to 79 actions addressing various aspects of sustainable logistics. Although only 20% of these actions were completed during the green deal, the majority are ongoing and are considered impactful by participants.
• Policy influence: the green deal played a crucial role in formulating policy recommendations and raising awareness of the need for a clear legal framework for zero-emission urban logistics in Flanders.
• Knowledge sharing: the initiative fostered collaboration through 15 events, 10 newsletters and the Inspiratiegids, a guide with insights, tips and strategies for sustainable logistics.
• Challenges addressed: by identifying key challenges, such as the lack of charging infrastructure and suitable vehicles, the green deal laid the groundwork for future progress in emission-free urban logistics.

Dropon's involvement

Dropon joined the green deal for several reasons:

1. Environmental responsibility: Dropon recognizes the importance of reducing the environmental impact of logistics operations, and has roots in sustainable delivery: the team behind Dropon started Bubble Post, an ecological last mile delivery service with cargo bikes and electric vehicles in Ghent.
2. Optimal route planning: Dropon's route optimization software aligns with the goals of the green deal. By optimizing delivery routes, Dropon helps companies minimize vehicle mileage, reduce fuel consumption, and decrease emissions.
3. Collaboration and innovation: by joining the green deal, Dropon became part of a network of like-minded organizations working together on sustainable solutions for the future of logistics.

Conclusion

Although the green deal for sustainable logistics has ended, its legacy lives on in the ongoing efforts to make urban goods transport more eco-friendly, such as the zero-emission zones for city logistics that the Flemish government is working towards. Dropon continues to support this vision of sustainable logistics, with collaboration and innovation as the foundation for greener, more liveable cities.