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Glossary

Last Mile

In the logistics sector, the phrase "last mile" denotes the final segment of delivery, encompassing the distribution center to the customer.

Initially, the term "last mile" was used in the telecommunications industry to mean the final segment of connecting communication services to businesses or individuals. Today, however, it is widely utilized with a similar meaning in sectors such as logistics and transportation.

As the number of businesses entering the e-commerce market increases in recent years, attention is focused on the logistics service response in the last mile, such as free shipping and same-day delivery offered by major e-commerce players.

Traditionally, large companies built their logistics networks by concentrating distribution centers and relying on third-party logistics for delivery. However, there is now an active trend to strengthen logistics services and capture customers by establishing their own distribution centers closer to the end-user in the last mile.

While attempting to increase handling volume by strengthening logistics services, service providers are simultaneously facing issues such as an ageing workforce, deterioration of working conditions, and labour shortages. Consequently, it is becoming increasingly challenging to maintain the same high quality of service as before. In Japan, the home country of Oo​Oh's parent company, Daiwa Steel Tube Industries (DSTI), the challenge is referred to as the "2024 Problem", which has had a significant impact on industries, including logistics.

To address these last-mile problems, efforts are also underway to promote the widespread adoption of delivery lockers and expand collection services at locations such as convenience stores.

Source: Daiwa Lance International and Daiwa Steel Tube Industries

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