Abstract

Last-mile logistics is both a source and cause of problems in urban areas, especially problems related to traffic congestion, unsustainable delivery modes, and limited parking availability. In this context, multiple sustainable logistics solutions have been proposed. We focus on micro-depots (MDs), which can function as a consolidation center and a collection-and-delivery point for business-to-consumer (B2C) small parcels. This paper presents a new research idea that extends the existing MD solution by introducing the concept of a shared MD network with parcel lockers. Such networks enable multiple logistics service providers (LSPs) and/or business partners to use an MD while minimizing their individual costs and optimizing the use of urban space. We present case studies of such shared MD networks operating in the cities of Helsinki and Helmond. We provide a framework for auxiliary businesses that can exploit the existing MD structure to offer services to the surrounding population. Finally, we define metrics for evaluating the success of shared MD networks while considering social, environmental and economic objectives. The case studies highlight the complexity of implementing such a solution; it requires stakeholders’ involvement and collaboration. In particular, deciding on the location for a shared MD network is a critical phase, since local authorities have their own regulations, and residents’ preferences are usually different than LSPs’ ones. Nevertheless, if these challenges are overcome, this sustainable last-mile logistics solution has a promising future.

Highlights

  • Introduction nal affiliationsLast-mile logistics focuses on delivering parcels to the end-customers’ preferred location instead of purchasing the goods at disparate physical stores, increasing the number of freight movements, which is even more aggravating when considering that each parcel is often small [1]

  • We introduced the concept of a shared MD network with parcel lockers and auxiliary business models for B2C small parcel last-mile deliveries

  • Our contribution to cities and business partners is to showcase studies of a shared MD network’s implementation, to provide a framework for possible auxiliary businesses that can be tailored to each location, and to supply a way of measuring the implementation success

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Summary

Literature Review

With the rapid growth of online shopping, which has increased the congestion and emissions in cities, the number of academic studies in the area of lastmile logistics has significantly increased [15,16,17], where sustainability is the key objective. The mobile depot presented in [28] circles the city and only parks when loading and unloading This configuration requires less urban space than the solution of [14] and decreases the economic cost of the LSP. The congestion and the pollution could be reduced further because the suggested mobile depot is neither electric or small These solutions do not propose the installation of parcel lockers, which enable customers to pick up their own deliveries from the depot and reduce the last-mile delivery. They show that optimal usage of shared spaces enhanced by multiple delivery options in cities helps to decrease the operational, economic and environmental costs with respect to the single-echelon policy, while focusing on customers’ delivery option preferences Their methodology is theoretical, whereas our approach is empirical, since real case studies support our proposed solution. The shared MD network concept that we propose here is flexible enough to integrate parcel lockers as CDPs and auxiliary business models, which may be economically profitable for the LSPs and sociably profitable for residents

Implementation of a Shared MD Network
Helsinki Case Study
Helmond Case Study
Extensions of shared MDs
Auxiliary Business Models for Shared MDs
Standard Auxiliary Business Models
Pickup or Delivery
Pickup
Exchange
Activity Space
Enhanced Auxiliary Business Models
Assessing the Success of a Shared MD Implementation
GHG Emissions
Air Pollutants
Economic Bottom Line
Monetary Logistics Costs
Non-Monetary Logistics Costs
Social Bottom Line
Findings
Conclusions
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