To overcome the challenges of last-mile delivery, you have to implement a delivery management system that has solutions for each one. These are:
On-time and cost-efficient delivery is ESSENTIAL. In 2025 the courier and express market is expected to be worth over USD 223.63 million. This means that if you are experiencing bad or failed deliveries it can be a significant setback. Companies and customers expect packages to move without interruption.
Costs involved with last-mile delivery must be managed, and your solution to fleet dispatching is where this starts.
The biggest obstacle last-mile delivery faces is the high costs of labour. These can be overcome through:
Apart from the manageable obstacles that any fleet faces, there are several that are out of the control of any management team. Road quality, congestion, and stolen parcels are unavoidable, but can be planned for with the RIGHT fleet management system.
Managing your last-mile delivery costs involves having a team that’s capable of seeing where parcels, drivers, and clients are. Without a proper management system, or worse, one that's disconnected, you may not be aware of how much you are losing on your last-mile deliveries.
The challenges created by last-mile delivery aren't unique to any one company. There are thousands of deliveries made each day. Each successful delivery is a success story of overcoming challenges, obstacles, and possible disasters. Two of the success stories that we can look at are delivering to inaccessible areas, and the success of cold chain delivery.
A large South African retailer faced the challenges of delivering daily parcels to areas with high crime rates and poor infrastructure. They already had a system that used traditional delivery methods, which only resulted in delays, stolen packages, and dissatisfaction.
Cold-chain integrity is one of the most challenging issues faced by South African grocery companies. Summer heat, infrastructure, and delays caused last-mile delivery delays. Customer satisfaction was decreasing, and the costs involved in keeping cold was too much.
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South Africa has a challenging delivery environment, with large urban sprawls and outdated infrastructure that increases last-mile delivery costs. Tougher-to-reach locations increase the labour involved, which means the cost of getting a package delivered is always increasing.
This challenge means fleets become more expensive, impacting the last-mile delivery cost.
Fleet sizes and area coverage affect delivery prices further. A larger coverage area means drivers can be managed improperly and take longer to complete their deliveries. This inefficiency decreases delivery efficiency, inflating your fleet costs. You’ll also have to adjust to customer expectations as you grow.
Customers now expect same-day deliveries. A product ordered in the morning has to be delivered in the afternoon. This pressure means more mistakes can be made and last-mile delivery costs increase.
However, when a complete fleet management solution has been properly integrated, these are costs and challenges you’ll have the solution to.
Local last-mile delivery challenges are some of the easiest to solve when a proper management system is installed. This is how a dispatch system keep your costs down:
Problem: Parcels are stolen or reported as undelivered, with no real way to confirm whether the driver or client is lying.
SOLUTION: The solution is simple, a confirmation delivery system that requires the driver to take a picture of the parcel delivery, and the client to sign.
Problem: Your drivers are repeatedly going to the same address, unable to find the client; and clients are complaining that drivers are never on time.
SOLUTION: This requires a system that sends live-alerts to your drivers and clients, letting them know the day before (or earlier) that a delivery is on its way and when it will arrive.
Problem: Unfortunately, there are many informal addresses in South Africa, and as we continue to grow new areas may require deliveries before maps are updated.
SOLUTION: There are two solutions to this problem: exact pinned locations from your clients, as well as live location tracking. Accurate locations mean your drivers don’t have to look for addresses on the side of the road.
Problem: Packages are delivered to the wrong address or packages are sent back because of damage to the product.
SOLUTION: To solve this you need to have an integrated tracking system, knowing where packages are at each step of the delivery process. Tracking knowledge ensures damage is mitigated and packages are delivered to the right people.
Problem: Even with notifications, clients are confused about where a package is, often expecting a delivery on the wrong day.
SOLUTION: The best way to solve this is through live updates to your clients, sending SMS notifications and having a portal they can use to track their packages from hand-off to final delivery.
Vehicle security creates safer work environments for drivers, by tracking packages, and routing drivers through safer areas. Drivers may be taken on routes that are slower, which have roads that are maintained and are safer to use. This slower speed may initially seem detrimental, but as is commonly said, slow is smooth, and smooth is fast.
Here’s how security choices will affect your last-mile deliveries:
Failed deliveries can quickly cause your costs to skyrocket, with many fleets only allowing one redelivery for free. To ensure your fleet doesn’t have to reattempt delivery, there are several steps you can implement:
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Route optimisation helps last-mile deliveries by reducing:
The less time it takes drivers, routing staff, and others to work with a package, the more efficient your system becomes. An efficient delivery system is faster, making clients happier, and reducing costs.
Route optimisation will ensure that your fleets aren’t wasting time on unnecessary delays, longer routes, or problematic breakdowns.
Route optimisation reduces the fuel used on unnecessary travel distances. The software can calculate traffic, which means your drivers will not be stationary for long. Further, the knock-on effect of driving less and being efficient means reduced maintenance and service intervals.
Optimised route = reduced fuel usage
Yes, route optimisation uses accurate GPS location data. Once a delivery address has been confirmed the system easily shows a driver where to go. Further, the system can be set to avoid dangerous areas, using alternative paths that have safer and more maintained roads.
Route optimisation = accurate location data
No, even the smallest fleet can experience big benefits from a delivery and dispatch system. Smaller fleets have to plan even more than large ones. Ensuring that your limited number of drivers are where they should be. Drivers that aren’t where they’re meant to be can easily be tracked, rerouted, and made more efficient.
Route optimisation = even small fleets become efficient
Cartrack’s delivery system SEAMLESSLY integrates driver routing, package tracking, and fleet management. Your fleet becomes fully visible, lowering the high costs associated with final-mile labour costs. When fully implemented and integrated, your drivers can easily and accurately deliver packages across the country.
The last mile is the most expensive and unpredictable part of delivery in South Africa, but it doesn’t have to be. With the right tools you get:
You can reduce costs, improve reliability, and keep customers happy. If you’re still managing last-mile challenges manually, it’s simply time to change and embrace the autonomy of fully integrated delivery management systems.
Don’t take the risk of letting packages get lost, take full control of your dispatching, give Cartrack a call.
Shared delivery networks and partnerships with other businesses let you split transport and labour costs while increasing delivery reach. In South Africa, working with courier hubs, local retailers, or gig-driver platforms helps you fill more vehicles, reduce empty trips, and make last-mile delivery more affordable for everyone involved.
You can balance fast delivery and real-time tracking with cost control by using route optimisation and smart scheduling. These tools cut fuel waste, reduce travel time, and keep customers updated without extra labour. In South Africa’s busy cities, efficient planning keeps service quick while avoiding unnecessary delivery expenses.
Logistics managers should track delivery time, failed deliveries, fuel use, driver efficiency, and customer satisfaction. Monitoring these metrics shows where time and money are lost. In South Africa, keeping a close eye on these numbers helps you plan better routes, save fuel, and keep deliveries reliable and on time.
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Discover the biggest last-mile delivery challenges—like delays, high costs, and failed deliveries—and learn effective strategies to overcome them and improve efficiency.
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