[ INSIGHT ] SCVISIBILITY
by Susan Kastilahn Senior Business Development Executive, WiseTech Global Susan.Kastilahn@wisetechglobal.com | 224-400-4850
How to Avoid the Last-Mile Black Hole In the five years since the pandemic, the world has become aware of the complexity and fragility of the supply chain ecosystem. Because the first and last mile of a shipment’s lifecycle are often directly impacted, improvements in this segment have the potential to help logistics companies better respond to and manage supply chain disruptions. Yet it is an area that is often overlooked and is prime to be better optimized. Let’s dive into the capabilities to look for: Real-time tracking. GPS and IoT-enabled devices achieve the end- to-end visibility needed to combat the “black hole.” These tools allow freight forwarders to monitor the movement milestones of containers at every step. This helps predict delays, optimize routes, and proactively manage exceptions during the rst and last mile.
Automation. Automation and AI integration into the core functions of GPS and IoT are what improve operational ef ciency. AI-powered route optimization software considers traf c, weather, and delivery windows to nd the most ef cient paths for shipments. This reduces fuel consumption, delivery times, and costs—especially crucial for the last mile, where many deliveries are made to diverse locations. Integration. Interconnectivity and interoperability across multiple areas of business via automation offers freight forwarders the ability to review and select improved carrier options based on preferred carrier(s), cost, and other KPIs. This integration can also better manage freight volumes based on carrier capacity, contractual commitments, and load allocation. Choosing the right solution is critical for building a responsive, ef cient, and customer-centric supply chain. n
For multinational logistics providers this can incur unnecessary costs and inef ciencies including: siloed vendor selection and execution processes that limit opportunities for volume-based rate negotiations; untracked accessorial fees and hidden charges that erode forwarder margins or create unexpected costs for shippers; operational inef ciencies due to manual processes (emails, phone calls, terminal website checks), and high operational costs due to the resource- intensive nature of managing rst and last mile logistics. With the digital freight forwarding market projected to grow, the industry’s shift toward digital solutions to enhance ef ciency and reliability is clear. The key to success lies in creating a exible, multi-sourced landside supply chain with alternative routes and partners that ensure continuity during disruptions. This can be enabled by choosing the right solution that ts your needs.
One big challenge in rst and last mile logistics is the “landside container black hole”, when freight forwarders and their customers lose visibility into container movements once they enter domestic transport networks. This “black hole” creates blind spots in carrier selection, shipment milestones, and cost management—leading to inef ciencies, delays, and unplanned expenses. Yet the rst/last mile leg is being overlooked, and the process remains largely manual and fragmented. It’s often bundled with the ocean move, yet it operates within a completely different network of providers and is typically managed by a separate local team with port-speci c expertise. The decentralized nature of drayage management means decisions are made in silos, leading to ad-hoc carrier selection, often based on long-standing relationships that aren’t always cost- effective, or performance driven.
24 Inbound Logistics • September 2025
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