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Last Mile Logistics

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Last Mile Logistics Last mile logistics E-Commerce and its impact on transport in urban areas and Innovative approaches in city logistics for solving the last mile issue Dr. Klaus Esser Berlin, 26.05.2008 KE-CONSULT, Kurte&Esser GbR, Transport Economics Consultants Oskar-Jaeger-Str. 175, 50825 Cologne Tel.: 0221 / 5503075, E-Mail: [email protected] 1 KE-CONSULT Last mile logistics B2C-VERRA B2C-E-Commerce: Impact on transport in urban areas (2002-2004) supported by the German Federal Ministry of Education and Research (BMBF-FKZ 19M2017) in collaboration with the City of Cologne OPTIMAL Strategies for optimizing Pick-up and Delivery traffic of Internet Commerce – Packstations in Cologne (2005-2006) supported by the German Federal Ministry of Economics and Technology (BMWi-FKZ 19G4042) in cooperation with the Deutsche Post World Net, DHL and the City of Cologne 2 KE-CONSULT Last mile logistics Data base of the study „B2C-VERRA“: Trends in B2C E-Commerce / structure of internet consumers: in general: other examinations / literature in Cologne Region: consumer survey Delivery concepts: Interviews with B2C merchants, logistic providers Workshops with B2C merchants, logistic providers Acceptance of delivery concepts: Consumer survey Consumer survery: Questionnaires to 15,000 households 1.600 returned questionnaires 0.1 % of relevant population 3 KE-CONSULT Last mile logistics Database OPTIMAL • Research project OPTIMAL: supported by BMWi • Conducted by KE-CONSULT in cooperation with Deutsche Post World Net, DHL and City of Cologne • Estimating the effects for Cologne (2005) • Empirical data base: • Customer survey of more than 1,200 users at eleven Packstations in Cologne • Data for all Cologne Packstations provided by Deutsche Post World Net, DHL • Current traffic data for the City of Cologne 4 KE-CONSULT Last mile logistics Trends in E-Commerce and Consequences for Express Courier: more parcels, subdivided parcels, increasing deliveries to end-customer: lower potential for bundling, increasing multiple deliveries, lower stop-factor, rising costs of last mile logistics Therefore: innovative concepts for solving the last mile issue are needed 5 KE-CONSULT Last mile logistics Delivery concepts: Conventional home delivery Pick-up points, such as filling stations or kiosks Package boxes for individual residential buildings Locker facilities in publicly accessible places 6 KE-CONSULT Last mile logistics Acceptance of delivery concepts: Used and preferred delivery concepts in percent Used Preferred 100 83 80 60 51 40 23 17 20 13 8 1 1 0 Pick-up point Package box Home delivery Locker facilities 7 KE-CONSULT Last mile logistics Acceptance of delivery concepts: preferred delivery concepts by region Home delivery Pick-up point Package box Locker facilities Center city 39% 61% Outer city 67% 33% Suburbs 72% 28% 8 KE-CONSULT Last mile logistics Impact of E-Commerce and delivery concepts on transport in urban areas (Cologne 2003): shopping traffic – trip balance 4 2.0 2 1.1 0.5 0 -2 -1.5 -4 -5.1 -6 Information Purchase Pickup Returns All trips (in millions of trips per year) 9 KE-CONSULT Last mile logistics Impact of E-Commerce and delivery concepts on transport in urban areas (Cologne 2003): shopping traffic – reduced mileage in car traffic Study region- Center city Outer City Suburbs overall 0 -2 -1.4 -2.6 -4 -3.6 -6 -8 -7.6 -10 (in millions of vehicle km per year) 10 KE-CONSULT Last mile logistics Impact of E-Commerce and delivery concepts on transport in urban areas (Cologne 2003): delivery traffic – delivery trips 30,000 22,700 20,000 14,500 8,200 10,000 0 Pickup point Home delivery Total Locker system Package box 11 KE-CONSULT Last mile logistics Impact of E-Commerce and delivery concepts on transport in urban areas (Cologne 2003): delivery traffic – mileage 2,000,000 1,750,000 1,600,000 1,200,000 960,000 790,000 800,000 400,000 0 Pickup point Home delivery Total Locker system Package box 12 KE-CONSULT Last mile logistics Impact of E-Commerce and delivery concepts on transport in urban areas (Cologne 2003): Synopsis of transport impacts Car traffic Delivery traffic (mil. vehicle (mil. vehicle km) km) 2003 2006 2003 2006 Center city -1.4 -2.5 +0.1 +0.2 Outer city -3.6 -6.2 +0.9 +1.5 Suburbs -2.6 -4.6 +0.8 +1.4 Region under study -7.6 -13.3 +1.8 +3.1 13 KE-CONSULT Last mile logistics B2C E-Commerce results in Reduction of private shopping traffic (personal motor traffic, public transport) and increasing delivery traffic Reduction of demand for parking space in Cologne center city Traffic related problems at locker facilities and pick-up points Concentration of pick-up traffic in peak traffic periods (rush hour) 14 KE-CONSULT Last mile logistics Packstation – an innovative concept solving the last mile issue More than 700 Packstations in Germany (2006) 15 KE-CONSULT Last mile logistics Packstation – an innovative concept solving the last mile issue • Registered Packstation customers (gold card customer) …can receive postal packages at the Packstation for pick-up …can also send postal packages using the Packstations • When a postal package recipient is not at home to accept delivery, the parcel is not deposited at a local post office but placed in a Packstation where the customer can pick it up (green card customer). • DHL deposits postal packages at the Packstations to be picked up by customers (registered Packstation customers and green card customers) and collects the parcels sent from there by registered Packstation customers. 16 KE-CONSULT 25% Customer 20% 15% pick Last 10% -ups 5% mile – 0% 0,9% temporal logistics 0,2% 0.00-2.00 21,8% 0,3% 10,0% 2.00-4.00 6,0% 12,6% 1,8% 14,6% 19,9% KE 4.00-6.00 distribution -C 6.00-8.00 ONSULT 8.00-10.00 10.00-12.00 12.00-14.00 8,7% 14.00-16.00 16.00-18.00 18.00-20.00 3,3% 20.00-22.00 22.00-24.00 25% Delivery 20% 15% 10% traffic 19,8% 5% 22,5% of 0% 23,4% 0,0% DHL 17,8% 0,8% 0.00-2.00 0,6% 2.00-4.00 2,1% 4.00-6.00 6.00-8.00 12,2% 8.00-10.00 10.00-12.00 12.00-14.00 14.00-16.00 0,8% 16.00-18.00 18.00-20.00 0,0% 20.00-2172.00 0,0% 22.00-24.00 Last mile logistics Evaluation of Packstation (I): impact on urban transport • Alternatives to the gold card are the green card and the orange card (orange card: when a parcel recipient is not at home to accept delivery, the parcel is deposited at a local post office). • The traffic volume per parcel is lowest for the registered Packstation customers. • Green card customers have a higher traffic volume per parcel. • The traffic volume per parcel is greatest with the orange card. 18 KE-CONSULT Last mile logistics Evaluation of Packstation (II): impact on urban transport • Pick-up traffic is organized more efficiently. • Customers achieve savings of time and costs. • The trip volume is reduced by 54,000 trips and the traffic volume by around 80,000 km across all transport modes. • The City of Cologne is relieved of around 35,000 vehicle kilometres of car traffic. • The environmental impact of pick-up traffic (particulates, CO2- emissions) is reduced. For example, CO2-emissions are diminished by 8 tons. 19 KE-CONSULT Last mile logistics Effects in delivery traffic • DHL can execute delivery trips more efficiently. This generates savings in time and costs. • For Cologne, Packstations resulted in a reduction of vehicle delivery mileage of 7,000 vehicle kilometres in 2005. • This leads to a reduction of CO2-emissions in delivery traffic by about 3 tons. The particulate matter burden created through delivery trips can be reduced. 20 KE-CONSULT.
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