Last-mile delivery becomes urban pressure point: Can integrated smart logistics fix it?

The review finds that technological innovation has rapidly transformed last-mile delivery research and practice over the past decade. Artificial intelligence, machine learning, Internet of Things sensors, autonomous vehicles, and digital simulation tools now dominate the field. These technologies are widely used to optimize routes, predict demand, reduce fuel consumption, and improve real-time visibility across delivery networks.

Urban delivery systems are reaching a breaking point as e-commerce growth, traffic congestion, and climate targets collide in cities worldwide. The final leg of delivery, known as the last mile, has become the most expensive, most polluting, and most complex segment of urban supply chains. A major new academic review warns that without deeper integration of technology, sustainability, and governance, cities risk locking themselves into delivery models that are inefficient, inequitable, and environmentally unsustainable.

In a study titled “Towards Smart and Sustainable Last Mile Delivery Systems: A Scoping Review and Conceptual Framework,” published in Sustainability, researchers systematically examined a decade of global research to assess how cities are responding to last-mile delivery pressures and where critical gaps remain. The paper provides an overview of how smart technologies and sustainability goals intersect in urban logistics.

Technology has reshaped last-mile delivery, but integration remains fragmented

The review finds that technological innovation has rapidly transformed last-mile delivery research and practice over the past decade. Artificial intelligence, machine learning, Internet of Things sensors, autonomous vehicles, and digital simulation tools now dominate the field. These technologies are widely used to optimize routes, predict demand, reduce fuel consumption, and improve real-time visibility across delivery networks.

AI-driven routing systems have shown strong potential to reduce travel times and emissions by dynamically adapting to congestion patterns and delivery constraints. IoT-based tracking enables continuous monitoring of vehicles, parcels, and infrastructure, allowing operators to respond quickly to disruptions. Simulation tools and digital twins are increasingly used to test delivery strategies in virtual environments before they are deployed in real cities, helping planners assess environmental and operational impacts in advance.

Despite these advances, the study identifies a major structural weakness. Most technologies are still applied in isolation rather than as part of a fully connected urban logistics ecosystem. Research tends to focus on optimizing individual components, such as fleet routing or vehicle electrification, without addressing how data flows across stakeholders, platforms, and public infrastructure. As a result, cities often end up with fragmented systems that fail to deliver their full potential benefits.

The review also highlights uneven maturity across technologies. AI and IoT applications are now widely supported by empirical evidence, while digital twins and blockchain-based logistics remain at earlier stages, often tested only in limited pilot projects or simulations. This imbalance limits cities’ ability to move from experimentation to scalable, city-wide solutions.

The authors conclude that technological intelligence alone cannot resolve last-mile delivery challenges. Without coordinated integration across systems and actors, smart tools risk reinforcing inefficiencies rather than eliminating them.

Sustainability gains are real but uneven across environmental, economic, and social goals

Environmental sustainability is the most developed dimension of last-mile delivery research, according to the review. A large share of studies focus on reducing carbon emissions, improving energy efficiency, and promoting low-emission vehicles such as electric vans and cargo bikes. In dense urban areas, these measures have shown clear benefits in cutting local air pollution and reducing noise.

However, the review finds that sustainability is often treated narrowly, with environmental gains prioritized over economic viability and social outcomes. While electrification and green routing can lower emissions, they may also raise upfront costs or shift burdens onto delivery workers if not carefully designed. Cost efficiency and resource sharing receive less attention, even though high delivery costs remain a major barrier for operators and cities alike.

Social sustainability emerges as the weakest and least explored area. Issues such as worker safety, fair labor conditions, accessibility for residents, and public acceptance of new delivery technologies are often overlooked. Few studies examine how automated systems affect couriers, how delivery infrastructure reshapes public space, or how benefits and burdens are distributed across neighborhoods.

The review warns that ignoring these factors risks undermining public trust and long-term adoption. Sustainable delivery systems must balance environmental performance with affordability, equity, and social acceptance. Without this balance, cities may face resistance to new delivery models, especially those involving automation, surveillance technologies, or changes to curb space and sidewalks.

The researchers argue that integrated sustainability frameworks are urgently needed. Such frameworks should evaluate environmental, economic, and social impacts together rather than in isolation, enabling decision-makers to understand trade-offs and avoid unintended consequences.

Governance and human-centered design emerge as the missing link

One of the study’s most significant findings is the growing gap between technological innovation and governance capacity. While delivery technologies are evolving rapidly, urban freight regulations often lag behind. Many cities still rely on static rules that are poorly suited to dynamic, data-driven logistics systems.

The review shows limited research on how policies can be tested, adapted, and refined using digital tools. Few studies combine regulatory analysis with simulation or digital twin models, leaving policymakers without robust evidence on how new rules will affect congestion, emissions, or service levels. This disconnect slows adoption and creates uncertainty for both public authorities and private operators.

Human-centered governance is identified as a critical but underdeveloped pillar of smart and sustainable last-mile delivery. The review finds that stakeholder collaboration, citizen participation, and ethical data management receive far less attention than technological performance metrics. Yet these elements are essential for ensuring that delivery systems align with public values, protect privacy, and support fair working conditions.

To address these gaps, the authors propose a new conceptual framework that positions last-mile delivery as a socio-technical system rather than a purely technical challenge. The framework links three interdependent layers: technological innovation, sustainability integration, and human-centered governance.

Under this model, technology provides the tools for optimization and data analysis, sustainability principles guide performance across environmental, economic, and social dimensions, and governance structures ensure accountability, inclusiveness, and adaptability. Feedback loops between these layers allow cities to adjust policies based on real-time data, refine technologies based on human experience, and align innovation with long-term public goals.

The framework reflects a broader shift from Industry 4.0 toward Industry 5.0 thinking, where human well-being and social responsibility are placed alongside efficiency and automation. In this vision, smart delivery systems are not just faster or cheaper but also fairer, more resilient, and more responsive to community needs.