Last-Mile Delivery Optimization: Recent Approaches and Advances

There are numerous challenges in the last mile of urban logistics operations related to efficiency, resource allocation, environmental sustainability, and delivery operations. Technological innovation in recent years is trying to fill these loopholes and bring out efficient, reliable, and sustainable last-mile delivery. This paper provides a summary of the current optimization approaches in last-mile delivery, covering traditional Linear Programming methods, sophisticated algorithmic techniques known as metaheuristic methods, Artificial Intelligence (AI) based approaches, experience-based methodologies, and energy conservation techniques. These sets of optimization techniques - derived from optimization theory and computational algorithms - are diverse in their strategies for route planning, resource allocation, and energy management and tailored to the complex nature of urban delivery networks. In this regard, promising future technologies have also been discussed to re-orient last-mile delivery. Autonomous delivery by drones is one such game-changing solution that can enable rapid and eco-friendly delivery capabilities. Smart delivery acceptance systems through extensive use of advanced sensor technologies and data analytics help simplify parcel reception processes and make them much more efficient and safer. In the context of changing customer preferences and the emergence of e-commerce, the optimization of the last mile is critical in satisfying increasing demand while ensuring environmental sustainability and operational efficiency. Such innovative technologies and optimization strategies will enable delivery providers to better manage urban logistics challenges to deliver better customer experience and achieve sustainable growth in the last mile of delivery.