Pilot Project in Nuremberg: Can Micro-Depots Revolutionise the Last Mile?

Pilot project in Nuremberg: can micro-depots revolutionise the last mile?

• DPD in Germany participates in intelligent city logistics field trial

• Pilot project led by Nuremberg Institute of Technology

• Support from Bavaria's state government, the Chamber of Commerce and the City of Nuremberg

Nuremberg, 11 April 2016 – City logistics 2.0 in Nuremberg: under the scientific leadership of the Nuremberg Institute of Techology CEP service providers DPD and GLS are testing the use of micro-depots and transport bikes in the city centre and in a residential district of the city. The project is supported by Bavaria's Interior Ministry, the Nuremberg Chamber of Commerce for Central Franconia, and the City of Nuremberg. The pilot project was officially launched in Nuremberg last Friday.

The aim of the 'pilot project for sustainable city logistics featuring CEP services based on the micro-depot concept in Nuremberg' is to develop innovative solutions for the so-called 'last mile' and then test them in practice. In two geographically separate field trials, parcels destined for retailers and consumers are to be deposited in centrally located containers, vehicles or buildings. From there the parcel couriers use emissions-free alternatives such as transport bikes or hand trucks, which effectively reduces the impact of traffic on busy inner-city areas.

The aim of the Building Department of Bavaria's Ministry of the Interior, Construction and Transport, the principal sponsor of the project, is to reduce transport emissions by developing innovative and ecologically sustainable solutions for the 'last mile'. Further funding is provided by the city of Nuremberg and the Nuremberg Chamber of Commerce and Industry for Central Franconia. Dr. Michael Fraas, Nuremberg's Deputy Mayor for Economic Affairs, confirms the significance of innovative city logistics concepts as an important precondition for future- compatible retail operations in the city centre: "In view of changing consumer habits and the challenges posed by the growth in online retail, bricks-and-mortar retailers need to have the opportunity to supply their customers with goods conveniently and fast. CEP services play a key role in this respect. Our pilot project is an important future component for retail operations in the city centre and accordingly for the vitality of the inner city."

Project leader Prof. Ralf Bogdanski adds: "CEP services represent an essential basic supply service for our city and ensure a vibrant retail culture. The micro-depot concept with deliveries on foot and the use of transport bikes meets the ecological, economic and social sustainability objectives of municipalities, CEP services and the retail industry to a very high degree. We are especially proud of the fact that two major players in the parcels business - DPD and GLS - are participating in our shared pilot project."

Gerd Seber, Group Manager Sustainability & Innovation at DPD, explains: "Intelligent city logistics is essential when it comes to continuing to supply inner-city retailers with goods and linking the urban population with online retailing worldwide. In this respect delivery concepts based on micro-depots can be a highly effective response to the challenges represented by the growth in inner-city traffic." In the case of DPD 'intelligent city logistics' is one of the four pillars of the company's DrivingChange™ sustainability strategy, which was presented in February this year for the entire international DPDgroup.

From the summer of 2016 onwards the micro-depots will - on the basis of detailed analysis - be tested in daily operations in Nuremberg, the ideal location for the project. The preliminary planning was carried out by the Federal Association of International Express and Courier Services (BIEK).

2 Photo: Torsten Mendel (2nd from left - manager of the DPD depot in Nuremberg), Prof. Ralf Bogdanski (3rd from left - Nuremberg Institute of Technology), Mirko Schmidt (GLS, 4th from left) and Klaus Huber (GLS, right) shown with Nuremberg parcel couriers (source: CNA).

The photo is available in print quality at https://www.dpd.com/de/Home/Ueber-DPD/Presse- Center/Pressemitteilungen.

About DPD

DPD in Germany is part of DPDgroup, the second-largest international parcel delivery network in Europe. Throughout Germany DPD has 76 depots and 6,000 Pickup parcelshops. A workforce of 8,000 and 9,000 delivery drivers are in daily operation on behalf of the company’s customers. Every year the No. 2 on the German parcels market ships around 350 million parcels – providing carbon-neutral transport operations at no additional cost to the customer.

Through innovative technology, local knowledge and dedicated customer care, DPD provides the best possible experience for both shippers and shoppers. DPD’s industry- leading Predict service is setting a new standard for keeping customers closely in touch with their delivery, with real time tracking of their delivery, a one-hour delivery window and a range of options for redirecting parcels. In recognition of this innovation DPD received the Digital Transformation Award 2015.

As part of DPDgroup, DPD in Germany has access to over 22,000 local Pickup points across Europe, and delivers to 230 countries worldwide. DPDgroup’s 30,000 people work together to deliver 3.6 million parcels each day. The majority shareholder in DPD is GeoPost (93,79 per cent shareholding), additional shareholder is DPD Zeitfracht GmbH & Co. KG. GeoPost, a wholly-owned La Poste subsidiary, posted sales of €5.7 billion in the year 2015.

Press contact DPD Dynamic Parcel Distribution GmbH & Co. KG Peter Rey PR Officer Wailandtstraße 1 63741 Aschaffenburg Phone +49 (0)6021 492-7066