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Description

Due to the growing share of on-line shopping nowadays, an additional sales channel for companies came up. Internet sales has become an essential part of the retailing business in the past 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 logisticalcal 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 traffic of commercial vehicles in cities. The Last Mile Delivery (LMD) accounts for a major part of the costs involved in a delivery. A research of Capgemini Research Institute showed that the costs of LMD 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 LMD, 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 LMD, to minimize costs incurred, improve safety to minimize the impact on traffic as well as minimize the environmental impact. To improve the quality of life in the affected areas, the LMD should become environmentally friendly and emission-free (noise and emissions), the volume of traffic should be reduced to prevent illegal parking, collisions and stressful congestions.

Congestion, 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 LMD more efficient.

Benefits

Main Benefits
  • Reducing use of fossils

  • Reducing local air pollution

  • Improving life quality

  • Reducing need for travel

  • Enabling new business opportunities

Variants

Description

One variant is that electric vehicles perform the final stage of the supply process. This thereby ensures that carbon-emission producing vehicles can be reduced in the most highly polluted area of a city. This model is a concept that offers great opportunities for replicability in many other environmental areas and therefore offers a good solution for any location seeking to reduce air pollution levels.

Description

Using electric fleets as last mile delivery system reduces the carbon-emission producing vehicles in the areas of concern. Due to the smaller size of the vehicle not only traffic is reduced but illegal parking. Plus, e-bikes can access narrow streets and the deliverer does not need a driver’s license.

Use Cases

Electric Assist Cargo Bikes (Pedelecs) for goods delivery in Manchester

The aim is to promote the sustainable alternatives for local deliveries using electric Assist cargo bikes. The Municipality offers the use of 4 bikes leased from a fleet of different bikes owned by Manchester Bike Hire to any organization in Manchester.

Description

Another opportunity to improve the last mile delivery are drones. Autonomous drones can significantly accelerate delivery times and reduce the human costs associated with the delivery.

Drone delivery (exploit technological advance) may reduce routing costs

  • Eliminate driver expense
  • Faster delivery time

Factors impacting success/benefit

  • Number of occasional drivers
  • Willingness of occasional drivers to deviate from direct route to destination
  • Compensation of occasional drivers
Description

Self-driving delivery robots deliver goods to the customer on a determined and controlled path. The customer must unload the robot receiving the ordered goods.

Description

Fully autonomous delivery vehicles deliver the goods to the customer. The customer must unload the vehicle receiving the ordered goods.

Description

The goods are transported in capsules moving within an underground pipeline system.

Description

Reception boxes are fixed on the wall outside of the customers building. The box can be accessed by a key or an electronic code. This way of delivery gives the customer not only opportunity to receive a message as soon as the good is delivered, but to deliver goods anytime regardless of his presence. Plus, the boxes are temperature controlled which makes food delivery to any time possible (Iwan, Kijewska et al. 2016, p. 646).

Description

Delivery boxes in contrast to reception boxes belong to the delivery company. The boxes are being filled at a distribution depot and are temporarily fixed on the customers outside wall of his home. Empty boxes or boxes containing returns are collected by the delivery company either at the delivery tour or an extra tour (Iwan, Kijewska et al. 2016, p. 646).

Description

The delivery driver gets access to a to a locked area to place the good there. The customer can access this area with a code, App or a key box. The delivery driver needs to deliver to less locations in comparison to home delivery. Moreover, the customer doesn’t need to be at home.

Description

The goods are delivered to a collection / pick up point (nearest post office, due to their long opening hours convenience store, petrol station). When the good is delivered the customer gets informed that they can pick up their order. The goods are stored there until the customer picks them up. The possibility exists that the goods get delivered to the home of a customer, this must be arranged with the collection point / pick up point. Due to the lower density of delivery locations, the delivery process becomes more efficient. In this respect again, the customer does not need to be at home at time of the delivery (Iwan, Kijewska et al. 2016, p. 646).

Description

Parcel lockers are all day and night accessible containers used to send and receive goods. They are groups of reception box units. The difference is that locker banks / parcel lockers are not installed in front of a house but sited in e.g. car parks, railway stations or apartment blocks. To access there is used an opening code that is sent to the customer as soon as the order is placed in the locker. It is possible that the customer is informed when the order is placed in the box. Plus, lockers can either be used by many or just one delivery company. The concept of locker banks / parcel lockers requires that the customer himself takes over the home delivery. To shape this process as positive as possible, the parcel lockers must be placed at strategically favourable (Iwan, Kijewska et al. 2016, p. 646).

Box (consolidate deliveries) delivery reduces routing costs

  • Quantity variation reduced
  • Location variation reduced
  • Delivery locations closer to supply locations
Description

The idea of the micro hubs is to lower the number of motorized vehicles involved in the delivery process. Bigger amounts of goods are delivered to a micro hub (container, locker, area, …). The home delivery – the “Last mile” delivery – by motorized delivery cars is being replaced by CO2-free vehicles. This reduces e.g. illegal parking and traffic in inner cities. Furthermore, people without drivers’ licence can do LMD. To maximize the efficiency the location of the micro hubs must be strategically well chosen.

Description

Crowdsourcing consists in outsourcing the LMD to “everyday” people (crowd). It is a ridesharing concept like Uber or Lyft but with goods instead of people (Castillo, Bell et al. 2018). Especially people who are often moving on a similar way for personal or working reasons could be part of the “crowd”. The concept includes that the transportation process has no negative environmental impact because the person taking the good would have done the ride anyways. Working with CSL is more of a risk than working with a full-time fleet because of the individual contracts of the drivers (Mangiaracina, Perego et al. 2019, p. 14).

  • May reduce routing costs
  • Reduced vehicle fleet
  • Reduce driver costs
  • Faster delivery times
Description

The goods are delivered to the customers trunk as a mobile address and reception box. The car needs to be … . After the customer gives access to the delivery company,

For example, by tracking the parking routine of a customer by an app, the

 

Trunk delivery (make deliveries closer to the supply location) reduces routing costs

  • Delivery location flexibility
  • Delivery locations closer to supply locations
Description

Dynamic pricing means to different prices to different delivery time windows. The delivery time gets defined while ordering good. Depending on the optimisation of the delivery truck route, the price lowers. If the other delivery locations for example are close, the price is low, if not the price rises. This concept aims at an optimised delivery route (high customer density) to safe costs and distance (Mangiaracina, Perego et al. 2019, p. 15).

Description

Mapping customer behaviour is used to lower the number of failed deliveries. Data like electricity consumption are used to map the customers presence at home. Based on that a delivery schedule is defined that maximizes the probability the customer is home (Mangiaracina, Perego et al. 2019, p. 15).

Use Cases

Clean Logistics and Last Mile Delivery in Nottingham

This measure is a concept that encapsulates the provision of a delivery service whereby electric vehicles perform the final stage of the process. This thereby ensures that carbon-emission producing vehicles can be reduced in the most highly polluted area of a city.

Sustainable City Logistics - Cargo bikes for last mile delivery

This Use Case aimed to find a feasible solution to reduce the delivery of goods by cars and trucks in the city centre. Several kinds of boxes and logistic systems were tested out in cooperation with delivery companies.

Prototype for an ultra-low-emission cargo vehicle

Within this measure, Madrid City Council cooperated with AVIA, a vehicle manufacturer, to develop a prototype of a 12-ton electric cargo vehicle adapted to the specific needs of Madrid’s urban delivery sector.

Electric Assist Cargo Bikes (Pedelecs) for goods delivery in Manchester

The aim is to promote the sustainable alternatives for local deliveries using electric Assist cargo bikes. The Municipality offers the use of 4 bikes leased from a fleet of different bikes owned by Manchester Bike Hire to any organization in Manchester.

Electric van test fleets for craftsmen and delivery companies

The City of Stockholm and partners aim to tackle prejudices against EVs by inviting 20 business in the craft, delivery, and taxi sectors to try electric vans for one year. These businesses will be able to lease an electric van for the same cost as a fossil fuel-powered van.

Offering a test fleet of e-bikes and cargo bikes

This measure consists in offering companies and residents in Årsta the possibility to test E-cargo bikes for a limited period of time in order to find out whether, and to what extent, these vehicles provide a viable mobility option.

Neighbourhood oriented concierge system

The Use Case is to develop a partnership with logistic service providers and set up a Concierge Service for the Domagkpark housing area in Munich.

Related Solutions

Urban Air Quality Platform

Each day everyone breaths in and out approximately 20,000 times – at the same time industries, combustion engines and chimneys constantly pollute our air. An urban air quality platform is an air-quality-sensing network.

Public Charging System for Electric Vehicles

The current EU regulation on emissions for cars is the strictest worldwide. Along with further restrictions the thresholds cannot be meet with conventional cars only anymore. One alternative technology, reducing the local emissions, are electric vehicles.

Intelligent and Connected Public Space

An intelligent and connected public space collects data in public areas and displays or reacts on the data. The data can be securely transferred via Wi-Fi or other similar technologies to be, i.e. combined with a central system.

Drone Delivery System

Delivery trucks for parcels are a noticeable part of urban traffic that can be reduced by implementing a drone delivery system. As the market for deliveries is significantly and steadily growing, especially due to the increasing options in online shopping, this becomes even more relevant.

Electrification of fleets

One solution to reduce transport-related CO2 emissions is electric mobility. Depending on the characteristics of the fleet and its users, different options for electrification are most beneficial.

Intermodal Mobility Hubs

The transportation sector is responsible for 28 percent of greenhouse gas emissions, the bulk of which (60 percent) are produced by personal mobility. One option to decrease the environmental impact of personal mobility is the seamless integration of different modes of transport using mobility hubs.

Smart Parking

A Smart Parking System makes use of sensors or other technologies to determine the availability of parking lots in cities. This information can be shared with drivers, reducing the time spent on looking for a parking lot, and thus traffic congestion.

Bike Sharing System

A bike sharing system intends to make a community share a fleet of bikes. Therefore, users do not have to own a bike, but everyone can use the fleet flexibly.

Electric Bus System

The electric bus system is a public transportation system that is operated by electric buses only. Electric busses are not only economically beneficial, as they do not have any local emission, but due to their longer lifespan and lower operational costs, they can also be financially beneficial.

Vehicle Sharing System

Vehicle sharing systems allow customers to use various vehicles without owning them. There are different types of vehicle sharing systems on the market. Differences can be the vehicle shared, like car sharing, bike sharing, scooter sharing or electric vehicle sharing.