The Externality Of Parcel Locker Service

Abstract

Abstract A type of e-commerce which is growing rapidly is B2C (Business-to-Customer), thus, home delivery, the delivery service that supports this activity, is also developing. As the result, there is competition between home delivery services that causes last mile segment to become fragmented. Parcel locker exists to improve the operational effectiveness of home delivery. Additionally, planning for the delivery of goods has not considered the externalities that may arise from the delivery trips to the impactees. This study aims to analyse the effectiveness of the parcel locker to reduce the external costs due to the CO2 emissions produced by the delivery trips. The effectiveness is represented as a comparison between the external costs of the parcel locker and the one of home delivery service. The result showed that in term of externalities reduction due to CO2 emissions home delivery are three to seven times more effective than parcel locker. To increase the use of parcel locker, it is necessary to relax the delivery slot-time arrangement in order to reduce the externalities while maintaining good service to customers.