Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 2

An Assessment of the Last Mile Delivery Market in Saudi Arabia during and Post COVID-19 © 2023 Global Journals 70 Global Journal of Management and Business Research Volume XXIII Issue II Version I Year 2023 ( ) A of the total shipping cost. (Yadav and Mutreja, 2022). KSA’s e-commerce market grew by 60% in 2019-2020, accelerated by the pandemic, and is expected to reach US$13.3 billion by 2025 (Cabral A. R., 2021). Moreover, there is insufficient research examining the LMD market in KSA; for example, of over 220,000 sources found concerning LMD only 207 LMD- related sources were found that relates to Saudi Arabia. Finally, this research provides practical knowledge regarding, complexity, drivers, supporting function, risks of resources, and related issues in this market and how companies adapt different strategies to manage and meet the demand. II. L iterature R eview a) Last Mile Delivery (LMD) LMD can be defined as “ a series of activities and processes that are necessary for the delivery process from the last transit point to the final drop point of the delivery chain ” (Kum et al., 2018). Various stakeholders are involved in LMD from the demand side where the customers either individual or companies purchase the goods to the supply side where the goods are delivered by courier, express and parcel companies (Bandeira et al., 2019). Also, the governments, which sets the regulations for LMD companies where they operate (Bandeira et al., 2019). As shown in Figure 1, the LMD phase of getting the product to the right person or organisation is considered to be the most complex part of the logistics activities as it requires transportation management of vehicles/motors to the destination delivery points of the end customers/consumers. The prior phases are done at the main warehouses and at different shipping points such as dark stores and micro-fulfilment centres. Therefore, LMD should be well managed and optimised through coordinated activities with all entities involved (Mangiaracina et al., 2019). The LMD challenge is particularly salient for the retail chain as the process involve delivering the goods to many customers at different locations and this involves the collection of goods that are subject to complaints, delivered to wrong locations, or delayed in delivery (Macioszek, 2018; Weltevreden, 2008). Figure 1: Last Mile Delivery Map (Source: Hafenstrom, 2022) Based on the characteristic of each supply chain and the industry in which the company is operating, LMD can take different shapes (Mangiaracina et al., 2019). In business-to-business (B2B) distribution logistics that is aimed at physical stores, LMD covers the delivery or supplying the materials/goods to the stores that will be sold to customers at later stage. In manufacturing supply chains (B2B), LMD covers the delivery of components that are required to complete a part of a production process. Finally, in supply chains focused on end consumers and the retail sector (business-to-consumer or B2C), LMD will be the direct delivery to the customer or at an agreed delivery point (Alharbi et al., 2022; Quaka and Kinb, 2020). From a more general perspective, LMD is the last leg of the supply chain where the product is delivered to the customer (whether this is a business or final consumer) at the desired location (Mangiaracina et al., 2019). This step considered to be the most significant step in the whole supply chain and should be managed effectively to make sure the consumers are satisfied. Therefore, business need to have a solid and