Last-Mile Delivery Optimization: Technology Solutions for Urban Logistics Efficiency

Last-mile delivery optimization has emerged as a critical component in modern urban logistics, representing up to 53% of total shipping costs while directly impacting customer satisfaction and environmental sustainability. This research examines technology-driven solutions that enhance urban logistics efficiency through artificial intelligence, Internet of Things (IoT), autonomous vehicles, and predictive analytics. Using real-world datasets from major logistics providers and academic studies from 2020-2022, this paper analyzes market trends, technological performance, and implementation strategies. The global last-mile delivery market, valued at $145.59 billion in 2023, is projected to reach $318.83 billion by 2032, driven by technological innovations and e-commerce growth. Key findings demonstrate that AI-powered route optimization can reduce delivery costs by 20%, while dynamic routing systems improve on-time delivery performance by up to 20% and reduce fuel consumption by 15%. The research contributes to understanding how emerging technologies address urban logistics challenges including traffic congestion, environmental impact, and operational efficiency while providing actionable insights for industry practitioners and policymakers.