Abstract
PurposeLast-mile fulfilment is among the most energy consuming logistics operations in the supply chain because of the vast amount of stops and low fill rates. The study's purpose is to explore last-mile fulfilment options in regard to their energy efficiency and to develop guiding propositions for energy efficient last-mile fulfilment options. Design/methodology/approachInterviews with Swedish retailers and their logistics service providers (LSPs) were conducted to compare different last-mile fulfilment options for consumer goods. Data of these options in respect to energy efficiency was analysed in regard to a framework with the components of distribution structure, transportation execution, and household logistics capability. FindingsThis study analysed the energy efficiency of six distinct options in the last-mile fulfilment. Since transportation in the last mile is highly energy consuming, energy could be saved in last-mile fulfilment when goods are carried as far as possible collectively down in the supply chain to collection points close to the point of consumption (POC) in commercial vehicles with high fill rates. The end consumer should be responsible for only the last part of the last mile. Proximity between private households and collection points increases the possibility that the consumer will walk or use public transportation. Practical implicationsThis study provides insights to managers of logistics companies and retailers regarding how to save energy in last-mile logistics fulfilment. Originality/valueViewing consumers as co-producers of logistics solutions and aligning the distribution structure, transportation execution, and household logistics capability suggest propositions for the improved energy efficiency of last-mile fulfilment options in the supply chain.
Highlights
To reduce greenhouse gas (GHG) emissions from transport of good is a huge challenge in connection to reducing climate impact
Six last-mile fulfilment options were analysed in regard to the framework of distribution structure, transportation execution, and household logistics capability
Transportation execution represents the immediate energy consuming activity within the fulfilment options, and can be evaluated through energy efficiency indicators, such as the average distance a commercial vehicle must drive to drop off a parcel, the average fill rate of the commercial vehicle, the average time needed to drop off a parcel, and the average distance driven by a private vehicle to pick up the parcel
Summary
To reduce greenhouse gas (GHG) emissions from transport of good is a huge challenge in connection to reducing climate impact. Road freight transportation is mainly powered by fossil fuels, which generate GHG emissions, CO2 emissions, responsible for climate change. To be in line with the goals set by the EU on GHG emission reduction of 80%–95% by 2050 (European Commission, 2011b, 2011c), this requires a reduction of at least 60% of GHG emissions in the transport sector, a sector which is emitting a still growing amount of GHG emissions (European Commission, 2011c). The International Energy Agency expects the transported volume to nearly double by 2050 compared to 2006 (OECD/IEA, 2009). The high and growing demand of transported products in the forward flow of the logistics system is an increasing challenge. Transportation during the last mile, that includes the transport of goods from retailers' last contact point to the good, e.g. store, terminal or another place of handover, to households at the point of consumption
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