What: This case study examines how brands can conquer the last mile and identifies the four factors that enable this section of the supply chain: inventory management, order distribution, delivery and customer service.

Why is it important: Using RIFD to visualise inventory, optimising fulfilment using warehouses or inner city micro centres (probably both), choosing the right mode of transport considering that carriers increased their prices and that the return process is expected to be as easy as the initial delivery, and ultimately, guaranteeing a smooth customer experience are the top priorities to organise the last mile delivery.

It’s actually one of the most complicated elements of online retail. It requires meticulous inventory management to track down products and find the most efficient and cost-effective way to deliver them to customers, while also providing a service that’s as speedy and convenient as possible.

E-commerce giants like Amazon and China’s Alibaba and JD.com operate massive, sophisticated logistics operations with economies of scale and cutting-edge technologies that allow them to bring down the costs of these services and undercut rivals. These behemoths have set consumer expectations high with offerings of free shipping and next-day delivery. Most fashion retailers in western markets are years behind, and catching up will be a costly and formidable process.

Consumers have increased their digital spend, their expectations of online service have also grown. Meanwhile the resources that facilitate a seamless last-mile service are tighter than ever: Available warehouse space is scarce, especially in key distribution zones near ports and major cities. Carriers are stretched thin and pass along rising costs to brand clients in the form of surcharges and shipping delays.

And consumers have little sympathy. Shoppers today expect their purchases to arrive faster, the costs of shipping waived, and for their returns to be free, too — especially when Amazon makes it look so easy. In an increasingly competitive retail environment, acing the last mile offers more than a competitive edge; it’s a vital act of survival.

Fashion's LastMile Opportunity