Abstract
This paper uses data from a major logistics service provider in Gothenburg (Sweden) to (i) identify the different activities in a typical urban distribution tour, (ii) quantify the time required by drivers to perform each of these activities, and (iii) identify potential initiatives to improve time efficiency. To do so, the authors collected GPS data, conducted a time-study of the activities performed by the drivers for a week, conducted a focus group with the drivers, and a set of interviews with managers. The results show that driving represents only 30% of the time, another 15% is spent on breaks, and the remaining 55% is used to perform activities related to customer service, freight handling, and planning. The latter are subdivided into multiple activities, each taking a small amount of time. A focus group with the drivers and some interviews revealed several initiatives to improve time efficiency. Most initiatives can bring small gains, but when aggregating all potential time savings there is a big potential to improve overall time efficiency. Initiatives with highest potential and low cost are: providing better pre-advice on upcoming customers, improving route planning, having hand-free cell phone use, and enhancing handling equipment.
Highlights
Transport operators, and parcel delivery companies, are facing increasingly complex challenges to deliver in urban areas
This study focused on the time efficiency of urban distribution activities
The time study indicated that the biggest share of activities took place in the cabin (34%) with driving as the major contributor (30%), followed by time spent on activities around the vehicle (23%), breaks (17%), terminal activities (15%), loading and unloading activities (11%), and other activities (1%)
Summary
Parcel delivery companies, are facing increasingly complex challenges to deliver in urban areas. New supply chain management strategies including centralized inventory control and just-in-time practices have led to smaller consignment sizes delivered more frequently and a need to ensure short and reliable delivery times [1]. The rise of e-commerce tied to fast home deliveries has contributed to having more and smaller parcels delivered to scattered destinations in a race against time [1]. All this happens in urban environments where vehicles are frequently trapped in congestion and where regulation aiming at having more livable cities often impose restrictions on transport operators. Transport operators have found different ways to face these challenges: (i) adapting vehicle size to avoid unused capacity and meet vehicle restrictions, (ii) finding innovative strategies for the last-mile, often relying on transshipment to smaller vehicles, (iii) increasing the efficiency of operations using existing vehicles, and (iv) collaborating with the public sector to design new policy that increases efficiency and reduces externalities
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