Sustainability in Last-Mile Delivery: Eco-Friendly Solutions for the Final Stretch

In this guide:

• The Environmental Footprint of Last-Mile Delivery
• Eco-Friendly Delivery Innovations
• Packaging and Waste Reduction
• Urban Policy and Infrastructure Support
• Winning Over Business and Consumers
• Ready to Make Your Last-Mile Greener?

The Environmental Footprint of Last-Mile Delivery

Logistics is relatively energy- and resource-efficient. Large volumes of goods are stacked efficiently onto lorries and trucks to be transported en masse from a manufacturer to a distribution centre. Even storing these items in a warehouse is relatively cost-effective and resource-light, albeit modern solutions like cross-docking can grant further savings.

However, once products leave the logistics hub for the last mile of delivery, the resource consumption per item skyrockets. That linear, tight distribution network splinters, as packages and items must reach thousands of different destinations.
No surprise that final-stage logistics cause a disproportionate volume of emissions and congestion – especially for online purchases, where items are hand-delivered to each individual customer.

Yet, despite rising delivery demand, customer expectations are pushing for greener delivery options. It may seem like a paradox – but with the right tools, we can meet rising demand and reduce environmental harm.

Eco-Friendly Delivery Innovations

If you’ve understood the issue, you might think it’s impossible to mitigate last-mile delivery emissions. After all, delivering a package to a hundred different houses uses a lot more fuel than transporting a hundred packages the same distance. It’s inherently less efficient.

Well, we cannot completely reverse this – but we can lower the overall emissions and cut costs. These are some common eco-friendly delivery solutions:

• Use Electric Vehicles (EVs), Cargo Bikes, and Micro-Mobility Solutions. The most obvious solution is to cut out the emissions entirely. Relying on EVs or just cycling between locations severely reduces the environmental impact of last-mile deliveries. Cycling, in particular, is one of the most efficient forms of transport – and can even cut delivery times in congested, urban environments.
• Delivery Hubs, Lockers, and Consolidation Centres to Reduce Trips. Why is the first leg of logistics so much more efficient than the last? Simple – it transports more goods to a single location. We can achieve the same result with localised drop-offs to a locker or delivery hub, from which each customer can collect them.
• Route Optimisation Software and AI to Minimise Distance and Idle Time. If you track the route delivery drivers take and the time spent idling the engine, you’d be shocked. You can radically improve the overall efficiency of a delivery vehicle by integrating last-mile delivery software that can track and optimise routes in real time. It’s not just about the shortest route from A to B to C – it’s also about avoiding traffic and idle time.

Packaging and Waste Reduction

It’s not just the fuel that’s burned – packaging is a big source of emissions and resource waste. Think about it: en route to a logistics hub, items are packed together. But when, say, Amazon delivers the product to the customer, it gets an extra layer of cardboard.

That added protection comes at an environmental cost.

Opting for sustainable packaging is one potential solution. Cardboard might be thrown away after receiving your product, but at least it’s better than single-use plastic. Cutting down on this harmful waste is a net good – even if it’d be better to do away with waste entirely.

Understanding this benefit involves rethinking the economy. We’re moving from a linear mindset, where things are made, used and thrown away, to a circular economy, where things are made, used and then used again and again. The benefits are obvious.

Urban Policy and Infrastructure Support

So far, we’ve focused entirely on logistics companies and manufacturers. But city governments and councils can offer support.

For example:

• London’s Ultra Low Emission Zone (ULEZ): The ULEZ charges vehicles that don’t meet emissions standards, encouraging cleaner fleets for end-point delivery. Logistics firms operating in central London have increasingly adopted electric vans and cargo bikes to remain compliant and reduce costs.
• Government funding for EV infrastructure: The UK Government’s Local EV Infrastructure (LEVI) Fund allocates £381 million to support local authorities in deploying public charging networks. This includes provision for commercial vehicle hubs, helping last-mile providers transition to electric fleets.
• Micro-hubs backed by city councils: In cities like Bristol and Nottingham, local councils have supported micro-consolidation centres to reduce van traffic in city centres. These hubs enable last-mile deliveries to be completed using cargo bikes or e-vans, cutting both emissions and congestion.
• Off-peak delivery trials in London: Transport for London (TfL) has trialled out-of-hours delivery schemes with major retailers like Tesco and Sainsbury’s. These trials showed reductions in daytime congestion and faster delivery times, with potential for broader rollout.

Winning Over Business and Consumers

The biggest impediment to change is cost. Most companies associate anything involved with sustainability with an added cost. That’s simply not the case.

Even a simple efficiency improvement, like investing in last-mile delivery software, can save thousands of pounds when hundreds of routes are optimised. Route optimisation software has been shown to reduce fuel costs by up to 30%, while also cutting overall transport expenses by approximately 15%.

The ROI for sustainable practices is huge. It’s just about being smart with your investment – you’ve got to spend on what delivers the best result.

But it’s more than cost-savings – consumers respond positively to greener options, potentially offsetting initial investment costs. Being transparent about your carbon impact and showcasing your efforts builds trust and brand loyalty. It’s what separates companies that treat profits as a sprint and not a marathon.

Ready to Make Your Last-Mile Greener?

Sustainable delivery isn’t just good for the planet—it’s good for business. MIXMOVE’s X-Deliver helps logistics providers reduce fuel consumption, emissions, and delivery costs through powerful route optimisation and real-time tracking.

Book a free demo of X-Deliver and start cutting fuel use, emissions, and delivery costs from day one.