Abstract
Last mile deliveries in urban areas cause a disproportionate unsustainable impact, while it is also the most expensive part of the supply chain. This is particularly true for freight flows that are characterized by fragmentation. Logistically, this becomes apparent in vehicles that are driving around with a low vehicle fill rate, leading to the unnecessary presence of freight vehicles in our cities. This study focuses on the operational feasibility of utilizing the spare transportation capacity of a service-driven company as a potential solution to supply small independent retailers, or nanostores. The aim is to reduce inefficient vehicle movement. Based on a real-life implementation, we use SYnchronization Model for Belgian Inland Transport (SYMBIT), an agent-based model, to simulate various bundling scenarios. Results show the total vehicle kilometers and lead times to supply nanostores for the service-driven company to serve its customers. There is a potential to utilize spare capacity to supply nanostores while maintaining a decent service level. The number of vehicle kilometers driven highly depends on the location of the distribution center where the service-driven company operates. Based on these results, the conditions that have to be met to replicate this solution in other urban areas are discussed.
Highlights
Over the past two decades, we have seen increased attention to last mile transport
Last mile deliveries in urban areas cause a disproportionate unsustainable impact, while it is the most expensive part of the supply chain. This is true for freight flows that are characterized by fragmentation. This becomes apparent in vehicles that are driving around with a low vehicle fill rate, leading to the unnecessary presence of freight vehicles in our cities
This study focuses on the operational feasibility of utilizing the spare transportation capacity of a service-driven company as a potential solution to supply small independent retailers, or nanostores
Summary
Over the past two decades, we have seen increased attention to last mile transport. This is driven by the problematic nature of supplying goods in dense urban areas, where a large proportion of the last mile takes place (i.e., urban freight transport). A lot of cities are characterized by congestion, lack of unloading zones, and restrictive regulations for (freight) vehicles in their territory [7,8] This makes it costlier to deliver in urban areas, while it affects the journey’s reliability and customer service. Models for nanostores are inefficient, which is primarily caused by the small size of these stores and the lack of a storage room. This means that if a product is not on the shelf, it is out of stock, which subsequently leads to continuous inventory replenishment [25].
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
