Optimizing Last-Mile Delivery With AI
by Lori Boyer
For retailers, brands, and ecommerce businesses, last-mile delivery is often the most expensive and unpredictable part of the shipping process. Customers expect fast, reliable deliveries, and a poor last-mile experience can lead to frustration, bad reviews, and lost sales.
The challenge? Choosing the right carrier and service for each package while balancing speed, cost, and reliability. Traditionally, businesses rely on static shipping rules, past experiences, or guesswork to make these decisions—but AI is changing that.
AI-powered last-mile logistics solutions help businesses analyze carrier performance, automate shipping decisions, and improve delivery outcomes—all without the need to manage their own delivery fleets.
“Start small with clear objectives and scale gradually.” – Kushal Pillay
This blog is part of a series that dives into four major ways AI can transform your shipping strategy:
- Improving time-in-transit predictions (Read it here)
- Transforming the customer experience (Read it here)
- Eliminating inefficiencies in the warehouse (Read it here)
- Optimizing last-mile delivery
Smarter carrier selection based on performance data
Not all carriers perform equally across all regions, shipment types, or service levels. AI analyzes millions of past deliveries to identify:
- Which carriers consistently meet on-time delivery promises
- Which services perform best in specific locations or under certain conditions
- How carrier performance shifts based on seasonality, weather, and demand surges
Instead of relying on trial and error, retailers can use AI-powered insights to select the best-performing carriers for each shipment.
AI-driven shipping method optimization
Many businesses overpay for shipping because they default to faster, more expensive options, assuming that’s what’s needed. AI removes the guesswork by automating shipping decisions based on:
- Cost vs. speed trade-offs (e.g., when ground shipping is just as fast as express)
- Delivery success rates (ensuring the chosen service is reliable in that region)
- Real-time carrier pricing and service availability
For example, AI might analyze past shipments and recommend switching 40% of next-day air shipments to ground, saving thousands of dollars without affecting delivery times.
Predictive delivery performance and customer experience
Customers hate vague or inaccurate delivery windows. AI solves this by analyzing real-time shipping conditions and historical data to:
- Provide more accurate delivery estimates at checkout
- Proactively detect and alert customers about potential delays
- Optimize carrier selections based on on-time delivery trends in each region
This not only reduces missed deliveries and customer complaints but also improves trust and satisfaction.
Cost reduction and operational efficiency
By continuously analyzing carrier pricing, delivery speed, and reliability, AI can help businesses:
- Reduce shipping costs by automatically choosing lower-cost options that still meet customer expectations
- Improve delivery success rates, reducing returns, re-ships, and lost packages
- Optimize multi-carrier shipping strategies to prevent bottlenecks and capacity issues
For high-volume shippers, these optimizations can lead to massive cost savings and more predictable logistics operations.
AI is reshaping last-mile delivery—not by optimizing fleet operations, but by helping businesses make smarter carrier and service choices. Instead of guessing which shipping method is best, AI analyzes real data, automates decisions, and continuously improves outcomes.
Now is the time to invest in AI
AI is no longer a luxury in logistics—it’s a necessity. From predicting delivery times with greater accuracy to enhancing customer service, optimizing warehouse operations, and improving last-mile efficiency, AI is transforming every stage of the supply chain. Companies that embrace AI-driven solutions gain a competitive edge, reduce costs, and improve overall efficiency, while those that hesitate risk falling behind.
The logistics industry is evolving faster than ever, and AI is at the center of this transformation. By leveraging AI-powered tools, businesses can eliminate inefficiencies, enhance decision-making, and future-proof their operations.
The question is no longer if AI will impact logistics—it’s how fast companies can adopt it to stay ahead.
Meet EasyPost Luma
AI is reshaping logistics, and EasyPost Luma is at the forefront of this transformation. Built to empower retailers, brands, and ecommerce businesses, Luma leverages artificial intelligence to optimize every stage of shipping—from carrier selection to real-time transit insights—so businesses can reduce costs, improve efficiency, and enhance customer satisfaction.