Towards sustainable last-mile logistics: A decision-making model for complex urban contexts

Abstract

E-commerce growth is raising the demand for logistic activities, especially in the last-mile, which is considered the most ineffective part of the supply chain and a negative externalities source. Although various solutions aim to address these issues, selecting the best one is challenging due to multiple perspectives, conflicting criteria, trade-offs, and complex and sensitive urban contexts. This article proposes a 4-level hierarchical model based on the triple bottom line of sustainability that may assist decision-makers in selecting the most adequate last-mile solution for historic centers. The model was defined based on a systematic literature review; evaluated by interviewing a set of experts; and quantified according to an AHP-TOPSIS approach. This quantification focused on the historic center of Porto, Portugal. The experts considered all three sustainability dimensions similarly important. Air pollution was the most valued sub-criterion whereas Visual pollution was the least. 67 decision-maker profiles were defined, showing that environmentally oriented decision-makers prefer cargo bikes, while decision-makers who prioritize economic and social factors prefer parcel lockers. All last-mile solutions considered in the model yielded similar results, therefore suggesting a combined distribution strategy. Nevertheless, the use of parcel lockers is the most favorable solution for Porto’s historic center.