The last mile of a product's journey, or "last mile" is without a doubt the most complex and most expensive piece of the delivery experience. And if it's not enough that delivery to a suburban home in Sydney could be expected to be different than delivery for the cafe serving the freshest greens in Melbourne, customer expectations for accuracy and speed of delivery has never been so high. This is where last mile delivery technology comes into play.
When you consider everything from simple GPS tracking to new disruptive technologies, like parcel delivery by drone, we see several technological advances that are fundamentally changing the delivery experiences. Last mile is innovating delivery and making operations more efficient, reducing costs to reach their customers.
Let's explore how Australia is embracing new and different delivery approaches and what that could implicate for future logistics.
The Role of GPS and Real-Time Tracking
For many years, GPS technology has been the backbone of last mile delivery technology. GPS technology has allowed logistics providers to plan their routes and mitigate fuel usage as well as provide accurate estimated times of arrival (ETA). Today's systems are much more sophisticated than just providing visibility of a driver's location on a map; they leverage real-time traffic data and artificial intelligence (AI) to re-route vehicles in real-time, optimising for traffic congestion and delays.
Customers enjoy benefits too, with real-time track apps providing updates all the way to the moment the parcel lands at their door. This transparency has become a "norm" expectation in e-commerce and courier services within Australia!
Route Optimisation Software
Route optimisation software, working hand-in-hand with GPS, helps create the most efficient delivery sequence based on parcel weight, delivery windows, traffic, and more.
For example, a local last mile delivery provider in Adelaide can use this system to plan van loads, cut kilometres, and serve customers faster. This approach suits businesses such as florists, meal kit services, or same-day couriers managing multiple deliveries per day.
For instance, a local 3PL provider providing a service in Adelaide suburbs can employ this system to load vans in an optimum order and reduce on-road time. In these circumstances, it means fewer kilometres on the road, less emissions, and quicker service to the consumer.
This variety of last mile delivery technology suits businesses that are managing multiple deliveries in one day, for instance, florists, food box services and same day courier services.
Mobile Delivery Apps and Digital PODs
No longer do you need paper proof-of-delivery slips. The vast majority of last mile delivery technology solutions now come with mobile applications at the heart of those solutions, which allow drivers to scan barcodes, take digital signatures and even take photographs of the parcels delivered.
Digital proof of delivery slips not only deliver accuracy and accountability, but are also instant feedback mechanisms to both senders and recipients. In regional areas, where the delay between delivery and confirmation can sometimes be disheartening, digital proof of delivery slips can provide real peace of mind!
Drones and Autonomous Delivery Vehicles
Drone delivery continues to be the most talked about last mile delivery technology. Although it's still being tested in a number of areas in Australia, companies like Wing (part of Alphabet) have already conducted thousands of drone deliveries in places such as Logan, Queensland.
Drones can completely circumvent vehicle traffic to deliver small packages in a matter of minutes. There is much potential for drone deliveries in regional and remote areas where traditional courier timeframes are slower and more expensive.
Autonomous delivery vehicles, which are comparable, are also being trialled in controlled environments. Electric-powered, self-driving units, come with active and "no touch" delivery mechanisms, removing the human driver from the delivery plant to the consumer. The operating parameters of electric powered delivery units are either footpaths or bike lane routes, which can include groceries, medicines and parcels.
While regulatory challenges and safety concerns still exist, the potential of drones and autonomous vehicles to reduce labour costs and carbon emissions is significant.
Smart Parcel Lockers and Pick-Up Points
Retailers and logistics firms are reducing failed deliveries by installing smart parcel lockers in shopping centres, service stations, and apartment buildings. These lockers let customers collect deliveries on their own schedule.
Many of these systems now include QR scanners and mobile apps for secure, contact-free pickup—ideal in busy cities like Brisbane and Perth. They’re becoming an essential part of the last mile delivery ecosystem.
In urban environments like Brisbane and Perth, it is becoming standard for click-and-collect functions to be a part of parcel lockers, and are an essential part of the last mile delivery technology ecosystem.
Sustainability Through Technology
Sustainability is no longer an optional goal, but a requirement. Technology is playing an important role in greening the last mile. Electric delivery vehicles, AI-powered route optimisation, and carbon-tracking dashboards are enabling businesses to reduce emissions and meet Australia's broader carbon reduction targets.
On top of that, smart packaging systems, which monitor temperature and humidity while being transported, are helping industries like food and pharmaceuticals reduce waste and ensure compliance.
What This Means for Australian Businesses
Retailers, couriers, and logistics firms must adopt last mile delivery technology to stay competitive. Consumers expect speed, visibility, and sustainability. Failing to meet these expectations means losing customers and operational inefficiencies.
Fortunately, small and medium-sized businesses now have access to advanced technology via platforms and service providers that can simplify their delivery processes.
Final Thoughts
Last-mile delivery technologies – everything from GPS and routing optimisation to drones and digital proof-of-delivery – are changing the way products circulate through our cities and suburbs. The logistics ecosystem is constantly morphing and the businesses prepared to take advantage of smart and sustainable delivery solutions will be the most successful in a continually-on-demand economy.
👉 Explore how your business can benefit from smart last mile delivery services here.
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