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Last mile logistics (LML) is the least efficient and complex part of supply chain. The main objective of this study was to identify major challenges of urban freight LML and opportunities for intervention. For this, 42 peer-reviewed full papers published after 2010 and three additional references were used. The findings indicated that urban freight flow has a trend of steady growth. The main driving forces behind this steady growth are population growth, urbanization, densification, globalization, online and omni-channel (OC) retailing, and urban economic development. Using typology analysis, three main potential freight LML configurations were mapped and discussed. Freight LML configurations that involve light cargo vehicles and cargo bike-based delivery schemes could be the most sustainable freight LML models if the delivery failure is minimized. The LML challenges were categorized as technological, infrastructural, LML system and management, and logistic cost related challenges, and discussed broadly. Similarly, the potential opportunities were discussed from environmental, economic, and social sustainability aspects. Finally, this report has pinpointed future potential research agendas related to LML. The study could be a knowledge base useful for academicians and practitioners, logistics and technical service providers, policy makers, and customers.

Urban Freight Last Mile Logistics—Challenges and Opportunities to Improve Sustainability: A Literature Review