Last Mile Delivery
Due to the growing share of online shopping nowadays, an additional sales channel for companies has come up. Internet sales have become an essential part of retail business in recent years. Consequently, the volume of traffic caused by delivery services has increased rapidly with the success of e-commerce. Likewise, the delivery market slowly transforms from a mainly B2B market to a B2C one (e.g. Drone delivery). The final track of the supply chain – home delivery to a customer – is called Last Mile. The Last Mile of a delivery poses significant logistical challenges, especially regarding the increasing customer expectations, such as "same day delivery" or "exact time delivery" which leads to the decreasing time available for planning. Furthermore, the Last Mile has a huge effect in the traffic of commercial vehicles in cities. Moreover, the Last Mile Delivery accounts for a major part of the costs involved in a delivery. A research of Capgemini Research Institute showed that the costs of it account 41% of the overall supply chain costs ( Jacobs, Warner et al., p. 20 ). Figure 1 - Distribution of overall supply chain costs ( Jacobs, Warner et al., p. 20 ) In the reality of Last Mile Delivery, challenges like a small or single order compared to deliveries to stores, many constantly changing geographically dispersed locations (compare deliveries to stores) etc. must be faced. The goal is to improve the efficiency of Last Mile Delivery, minimise costs incurred, improve safety, minimise the impact on traffic, and minimise the environmental impact. To improve the quality of life in the affected areas, the Last Mile Delivery should become environmentally friendly and emission-free (noise and emissions), the volume of traffic should be reduced to prevent illegal parking, collisions and stressful congestion. Problems to be solved: Congestion Air Quality Collision Illegal parking Limited access to inner city Costs Congestion, bad air quality, collisions and illegal parking are all ills affecting the quality of life of citizens. The accessibility of inner-city locations is becoming more and more limited for cars and trucks in contrast delivery services are growing especially in these dense inner-city areas. There are several solutions to solve these problems that reduce pollutant emissions, lower the impact on traffic, improve safety and make Last Mile Delivery more efficient.