Leveraging joint distribution in urban express delivery to lessen environmental impacts: a case study

Abstract

PurposeThis paper aims to explore the use of joint distribution to reduce environmental cost of express delivery in urban logistics.Design/methodology/approachAn optimization model was developed to help design the joint distribution network. A real case in Songjiang University Town of Shanghai, China, was used to explore empirically the potential benefit of the design. Performance of the proposed joint distribution was compared with that of the current distribution design using separate deliveries.FindingsThe findings show that, using joint distribution in express delivery, a significant saving in economic cost (up to a reduction of 25%) and environmental cost (up to a reduction of 87%) can be achieved.Research limitations/implicationsThis study provides a reference for joint distribution network design for last-mile delivery in urban logistics.Practical implicationsExpress delivery companies can explore the use of joint distribution to reduce operating cost and increase distribution efficiency of the industry.Social implicationsJoint distribution can facilitate maximization of vehicle utilization and reduction of delivery trips. This will help reduce fuel consumption, carbon emission, as well as other externalities, such as noise and traffic congestion.Originality/valueResearch in joint distribution to date focuses mainly on reduction in operating cost only. Consideration of environmental impact is relatively limited. This paper fills the gap in the literature by using a real case to illustrate the significant benefit of joint distribution in reducing the negative impact of urban logistics on the environment.