How to reduce costs in last-mile logistics (without losing efficiency)

Reducing costs in last-mile logistics is possible with the right combination of technology and strategy. Routal saves kilometers, fuel and working hours, while improving the customer experience and reducing support work. Optimizing isn't cutting back, it's doing more with less.

3 min readUpdated February 10, 2026
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Operations and product specialists focused on practical logistics content.

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How to reduce costs in last-mile logistics (without losing efficiency)

Last-mile logistics has become one of the greatest challenges — and opportunities — for any delivery company. Why? Because it represents even the 53% of the total cost of shipping, according to multiple studies. But it's also the point where it can be optimized the most, especially with technology like Routal.

In this article, we show you how you can significantly reduce your costs at this critical stage, both directly and indirectly.

📉 Direct savings: Fewer kilometers, less gas, fewer hours

1. Reduction of kilometers traveled

With a smart route planner like Routal, you can optimize routes for vehicles to travel the shortest possible distance, grouping deliveries by zones and avoiding redundant routes. This translates into:

  • Less wear and tear on the vehicle
  • Less consumption of gasoline or electricity
  • More deliveries per shift

2. Fuel savings

By optimizing routes and avoiding traffic jams or inefficient routes, fuel consumption is reduced, an expense that can represent between 20% and 30% of the total operating cost.

3. Fewer delivery hours

The most efficient routes aren't just shorter, they're also better organized. This means that the delivery person can make more deliveries in less time, or even need less staff in peak demand, maintaining the same quality of service.

🔁 Indirect savings: More loyalty, fewer incidents

4. Improving the customer experience

A customer who receives their order on time and has real-time visibility of their delivery is a happier customer. this Reduce complaints, calls to customer service and improves the withholding in the long term.

5. Lower burden on the customer support team

When the customer knows exactly when their order will arrive and can follow it in real time, You don't need to call anymore to ask “where is my order?” This frees up time for the support team for higher-value tasks.

💡 Other savings you might not have considered

6. Fewer delivery errors

Routal allows you to load specific instructions per stop and validate deliveries, which reduces incidents such as failed or poorly executed deliveries (which involve double trips and extra costs).

7. Lower delivery turnover

Deliverymen who work with clear, well-planned and stress-free routes tend to stay in the company longer, reducing training and hiring costs.

8. Better use of the fleet

By knowing the real capacity of each vehicle and optimizing its load, you can prevent vans that are half empty or poorly distributed. This reduces the need for extra vehicles or outsourced contracts.

🚀 Conclusion: Optimizing is saving

Reducing costs in the last mile isn't just about cutting, it's about Organize better. Routal allows you to optimize routes, automate processes and offer a superior experience for both the customer and the delivery person.

And the best thing of all is that Every savings accrues: fewer kilometers, less gas, fewer hours, fewer incidents... It all adds up.

Would you like to see what it would be like in your specific case? 💬

Request a personalized demo and discover how much you could save per month with Routal.

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