Build vs. Buy: Strategic Considerations for Last-Mile Delivery Optimization
Merchants face a pivotal choice in last-mile logistics: build in-house for niche control or implement a platform like Nash for speed, scalability, and staying ahead
A merchant’s last-mile delivery quality is now a make-or-break factor for customer loyalty and business success. Consumers expect fast, reliable delivery, putting pressure on companies to get it right.
But managing last-mile logistics is complex.
The big decision for product leads looking to expand their delivery infrastructure: should merchants build a custom, in-house platform to manage last-mile—which offers control but demands heavy investment? Or is the smart decision to choose a robust, ready-to-scale platform like Nash? This decision goes beyond tech—it’s about strategy, costs, and staying competitive.
Here’s a clear breakdown of what’s at stake so your team can choose the path that best supports your business goals and customer satisfaction.
How Did We Get Here? Last-Mile Logistics After 2020
When the pandemic hit, businesses scrambled to keep up with a 19% surge in global eCommerce sales in 2020—with nearly half of those sales flowing through major marketplaces (Investopedia). To manage this sudden demand, many companies quickly patched together in-house systems, which worked in the short term but weren’t built to last.
The urgency of that time may have made those quick fixes seem like the best option, but Commerce was already transforming in ways that would require more sustainable solutions. Consumer expectations for fast, reliable delivery were rising rapidly, fueled by the convenience-driven "Amazon effect." Amazon’s dominance has redefined what customers expect: ultrafast shipping, endless product choices, and delivery transparency.
By 2023, North Americans were spending $7.2 trillion on eCommerce, with nearly half of that flowing through Amazon. This raised the bar for delivery speed and reliability across the industry. Competing with Amazon’s logistics capabilities has become essential for other retailers, who now face the challenge of keeping pace (Investopedia).
Today, “good enough” isn’t enough. Customers expect fast, dependable delivery, and outdated systems simply can’t keep up. Meeting these expectations requires integrated, data-driven platforms that streamline last-mile logistics at scale. For merchants, the question isn’t just if they’ll optimize their last mile—it’s how.
The Build vs. Buy Dilemma
The stakes are high. The decision to build or buy impacts a merchant’s bottom line, its ability to scale, and, of course, the customer experience. Patching together systems or leaving workflows fragmented results in low visibility, frustrating customer support, and rising costs.
Here are just some of the issues merchants face:
- Complexity overload: Managing multiple fulfillment types (same-day, next-day, in-store pickup, big and bulky) demands interconnected systems. When workflows don’t align, costs skyrocket—and efficiency tanks.
- Customer expectations: The stakes around delivery have never been higher. Any delays, visibility gaps, or inconsistencies lead to an increase in WISMO (Where Is My Order?) calls, hurting both customer satisfaction and operational budgets.
- Internal challenges: For companies that lack visibility into dispatch, inventory, or customer support, an in-house build can mean constant patching and upgrading. And without ongoing optimization, homegrown systems can become operational problems.
Many companies have tried to go it alone—only to realize that building a logistics platform is a marathon, not a sprint. That’s why the decision to build or buy a last-mile solution has become so critical.
Key Considerations When Deciding to Build or Buy
The choice to build or buy goes beyond budgets and timelines; it’s about finding the right fit for your team’s expertise, priorities, and future growth.
When Building Might Be the Right Call
For certain companies with unique logistics needs, building a custom platform could be a strategic choice. However, it’s a decision that requires weighing both the benefits and the long-term commitments.
Here’s when building in-house might make sense:
- Niche use cases: If a merchant has highly specialized delivery requirements—whether it’s unique routing, proprietary data integration, or specific compliance needs—an in-house solution allows complete control over customization. Companies operating in niche markets or handling sensitive goods may need this level of flexibility.
- Initial cost advantage: At first glance, building in-house can seem like a budget-friendly option. However, initial savings are often offset by long-term maintenance expenses and scalability challenges. For instance, during the pandemic, many grocery retailers quickly built their own delivery systems to meet immediate demand. But as the market evolved, the maintenance and expansion costs of these systems grew, leading some of these companies without a platform that could scale.
- Internal expertise and resources: Building a custom logistics platform requires a dedicated team with deep technical expertise in logistics, data integration, and ongoing support. Companies with large tech teams, established logistics infrastructure, and the resources to continually optimize and maintain the platform may find value in building.
The Benefits of Buying: Why a Third-Party Platform Often Makes Sense
For most companies, partnering with a last-mile platform like Nash offers clear advantages over building a proprietary platform. Here’s why buying might be the smart move:
- Fast-track to market: Launching with a platform like Nash can happen in 2-3 months, compared to more than 12 months (on average) for an in-house solution. Full operational efficiency can often be achieved within 4-8 months, without major disruptions.
- Cost savings: Building and maintaining a last-mile platform is no small financial feat. Nash handles the technical infrastructure, allowing companies to avoid ongoing engineering costs and minimize operational spend.
- Complexities, simplified: Last-mile logistics is complex, involving variables like multi-carrier management, real-time tracking, route optimization, and seamless customer communication. Managing this intricate network in-house can strain resources and lead to inefficiencies. An orchestration platform is designed to handle this level of complexity automatically, reducing the need for extensive internal processes and ensuring each delivery step is optimized.
- Operational efficiency on autopilot: Nash’s automated workflows let companies scale deliveries without sinking time into complex internal processes. Intelligent routing and fleet assignments drive efficiency—so you’re delivering faster and spending less.
- Data-powered optimization: With algorithms honed and iterated on across millions of deliveries, Nash continually improves its dispatch processes, fleet utilization, and delivery schedules. This built-in intelligence keeps your delivery game sharp and lets your internal team breathe.
By opting for a third-party platform, companies gain efficiency, cost savings, and the flexibility of a solution that evolves alongside their delivery needs—turning last-mile logistics from a complex challenge into a strategic advantage.
Real-World Scenarios in Last-Mile Optimization
The impact shown is why merchants globally are turning to a platform like Nash to meet their delivery needs. From cost savings to increased customer satisfaction, a sophisticated orchestration
platform offers flexibility, scalability, and a streamlined approach to managing last-mile.
Is Buying Right for Your Last-Mile Needs?
Building may offer control and customization, but it’s often a costly, time-intensive route that requires constant management. Using Nash accelerates time-to-market, minimizes costs, and leverages advanced technology and industry insight that’s tough to match with an in-house build.
If you’re evaluating your last-mile strategy for the year ahead, consider scheduling a Nash demo to see how a third-party platform could sharpen your edge in a fiercely competitive space.
