Last-Mile Delivery: Outsource Versus In-House

As the pandemic unfolded, retailers’ last-mile delivery systems underwent a transformation, evolving into a complex, expensive, and inefficient process, according to FarEye. To identify strategies for reducing growing last-mile delivery costs, a survey undertaken by that delivery logistics platform found that while 57 percent of responding retailers have outsourced their delivery networks over the past five years, 84 percent say their organization needs more control over those networks.

“For retailers that do not have the scale for their own fleet of drivers, outsourcing their delivery networks is the most cost-effective way to deliver with flexibility, however, the tradeoff is less control,” said Stephane Gagne, FarEye VP, Product. “Rather than outsource their entire last-mile logistics network, retailers should consider having their own last-mile platform that would provide them the flexibility to experiment with different hybrid multi-carrier approaches, outsourcing in some markets, and insourcing in others.”

The survey, by FarEye and Researchscape International, analyzed responses from 300 leaders with responsibility for logistics and retail operations in the U.S. (32 percent); Europe, the Middle East, and Africa (36 percent); and Asia Pacific-APAC (32 percent).

For more survey results and analysis, click here.