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Transportation Research Procedia 12 ( 2016 ) 836 – 841

The 9th International Conference on City Logistics, Tenerife, Canary Islands (Spain), 17-19 June 2015 U rban freight in supply chain at “” complex of traditional market in the Historic Center of

Juan Pablo Antún, Rodrigo Alarcón & Angélica Lozano Instituto de Ingeniería Universidad Nacional Autónoma de México (UNAM) Ciudad Universitaria, México DF 04510, México

Abstract

This paper presents a first set of findings from the study Improving Physical Distribution of Goods in La Merced Complex of Traditional Markets, a research performed at the Laboratory for Transport, Logistics, Traffic and Territorial Systems at the Engineering Institute of the National Autonomous University of Mexico (UNAM) for the Ministry of Economic Development of the Government of Mexico City, in the University City Studies Program (PUEC), in the period October 2013- August 2014 (Antún, JP; Lozano, A.; et al 2014)

© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license © 2016 The Authors. Published by Elsevier B.V. (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the organising committee of the 9th International Conference on City Logistics. Peer-review under responsibility of the organising committee of the 9th International Conference on City Logistics

Keywords: City Logistics, Supply Chain, Traditional Markets, Mexico City

1. OBJECTIVES

To present the characterization of the Urban Freight Logistic Practices in the supply chain of consumer products, particularly in perishables (fruits, vegetables, etc.) and non-durable (food, groceries, personal care, etc.), in “La Merced” complex of traditional markets at the Historic Center of Mexico City: (1) Characterization of transport operations on different supply chain schemes (2) Identification of the origin and destination of the goods (3) Identification of the input transport characteristics (4) Identification of the characteristics of the output transport (5) Identification of the characteristics of the transport infrastructure, operations and management of the loading and unloading areas

2352-1465 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the organising committee of the 9th International Conference on City Logistics doi: 10.1016/j.trpro.2016.02.036 Juan Pablo Antún et al. / Transportation Research Procedia 12 ( 2016 ) 836 – 841 837

(6) To formulate a set of strategic recommendations for the design of public policies in the “La Merced” Revitalization Program

2. METHODOLOGY

The methodology integrates:

i) the analysis of the state of the art on physical distribution of goods research on historical center (TMV, 2006; Hesse, M 2008; Institut Cerdá & CIMALSA, 2008; Macharis, C, Melo, S 2011;Antún, JP, 2013; BESTUF, 2015; CITY LOGISTICS, 2015; The Urban Mobility Observatory, 2015; TURBLOG, 2015; VREF, 2015)

ii) a primary research on supply chains based on interviews with traders and informants in the traditional sector (formal & informal traders) at La Merced Traditional Market with a methodology created at the Institute of Engineering-UNAM (Antún, JP; Lozano, A; Hernandez, R 2005; Antún, JP; Lozano, A; Hernandez, R; Hernandez, JC 2005; Antún, JP; Lozano, A; Hernandez, R; Alarcón, R; Muñoz, MA 2008)

a. traditional logistics practices at the La Merced Complex Market b. best logistics practices in urban freight distribution in the Historic Center of Mexico City (Fernie, J; Sparks, L 2009; Macario, R; M, et al, 2011; Antún, JP 2013)

iii) a survey with transport operators who perform physical distribution in the “La Merced” complex of traditional markets

3. “LA MERCED” COMPLEX OF TRADITIONAL MARKETS

The nucleus of markets of La Merced is located in the Polygon B of the Historic Center of Mexico City, inscribed on the UNESCO World Heritage List, and integrates seven traditional markets: Fruits and Vegetables, Dairy and Meats, Clothing, Shoes, Flowers, Herbal &Traditional Medicine, and Gifts & Crafts.

This is a set of traditional retailing markets, heirs of existing markets in pre-Hispanic times (see the images on Fig 1).

838 Juan Pablo Antún et al. / Transportation Research Procedia 12 ( 2016 ) 836 – 841

Fig 1 “La Merced”: a complex of traditional market in the historic center of Mexico City Source: Field study, may-august 2014.

4. RESULTS OBTAINED

Field research allowed characterizing transport operations in the supply chain (Antún, JP; Lozano, A; Alarcón, R; 2014):

i. Characterization of the transport operation

x the transport provider is twice significant in the case of formal traders vs the case of informal merchants x a third of street vendors carrying the goods to the informal point of sale by public transport x only 17% of formal traders used own transport x the movement of goods with "diableros"(personal chargers) is nearly 3 times higher in the case of street vendors x the distance to warehousing on average is not more than 150 m, but the maximum values are 6 times higher in the case of informal merchant (maximun distance about 400m vs 2500m) x classic supply schedule is 0600-10.00 hrs, although there is a peak (20% significant) at 0600-07.00 hrs x the use of bicycles is not important

ii. Identification of the origin and destination of goods

x in 40% of the cases studied, the origin of the transport chain is the metropolitan area of Mexico City x slightly more than half of the trips originate in the Wholesale Market x outside the Mexico City metropolitan area, the most common origin of goods are municipalities in the state of Puebla (San Martin Texmelucan and Izúcar de Matamoros), Hidalgo (Ecatepec) and Mexico State (Netzahualcoyotl) x it is remarkable the presence of providers who perform direct deliveries from Oaxaca (Oaxaca City), Michoacán (Zamora) and Jalisco (Guadalajara Metropolitan Area) x over 80% of cases, the destination of the goods is the metropolitan area of Mexico City; however some markets (clothing, candy and gifts) sold to customers who bring their produce as far as Oaxaca and Yucatán.

iv. Identifying characteristics of the input transport

x only 60% of vehicle operators reported that the route was fixed, and 52%, which is defined by the customer x in 75% of cases the route serves several clients x the frequency of deliveries is daily by 25% of cases, and every two day in 31% of cases. x deliveries are made practically every day of the week (including Sundays) x although the most used vehicle (56%) is the pickup with a capacity of 1 ton, there is a widespread use of cars and taxis for the movement of goods x formal merchants with best practices receive goods in light and medium vehicles (most less than 1.5 ton and 3.5 ton) Juan Pablo Antún et al. / Transportation Research Procedia 12 ( 2016 ) 836 – 841 839

v. Identifying characteristics of the output transport

x output transportation is a wide range: from customers with their purchases who go out with Metro, minibuses and taxi, and the case of provincial buyers returning to their villages in ad-hoc charter buses

v. Identifying the characteristics of the infrastructure, operations and management of the loading and unloading áreas

x loading and unloading areas in the original layout of La Merced Markets have been invaded by informal merchants x in 41% of cases the unloading is within the Area of La Merced, but only 24% of cases, is in the the internal road network of the central sector of the “La Merced” x over 75% of unloading are made on public roads without any platform or reception area outside from the circulation flow of vehicles. x in half of the cases from point of the delivery vehicle, to carry the goods to the merchant, all use "diableros"

5. CONCLUSION

The characterization of transport chains was the key to formulate a set of strategic recommendations for the design of public policies in the “La Merced” Revitalization Program, based on specific proposals for loading and unloading areas, logistics platforms and micro-flow management vehicle on access roads.

The study determined to formulate new public policies for the development of logistics distribution practices at the La Merced Market should focus on:

o Improve the adaptability of the load unit at the physical distribution operations in the "last mile" (in so-called "short runs" delivery) based on new Logistics MicroPlatforms (LmP)) / Charging Orders Centers (COC)

o Encourage the use of full-electric vehicles in the delivery operations and the development of new electric vehicles

o Establish a network of Loading and Unloading Areas (L/U A), based on the release of L/U A originals in the La Merced Market and the allocation of new ones, on public roads equipped with up to date technology in order to manage parking duration and type of vehicles o Promote an organization of flows of electric vehicles, as well as “diableros” (informal porters) in the internal road network in the La Merced Complex of Markets

Based on the above, the strategic proposals for public policy are:

(1) Projects of New Logistics MicroPlatforms (LmP) / Charging Orders Centers (COC)

i. Should be designed promotional tools (fiscal, financial, etc) for development in public-private partnership (PPP) New Logistics MicroPlatforms (LmP)) / Charging Orders Centers (COC) for the physical distribution on multiple routes during the day (both in “autosale” and “presale”) into the urban-based development projects on land (as the site of the current Notarial Archives) and / or recycle buildings owned by the Government of the City of Mexico, and / or on land currently used as parking privately owned and operating in public service (Antún, JP; 2013).

ii. Be designed a Methodology for the Study (1.Market, 2.Microlocalization, 3. Technical and Economic Feasibility, and 4.Finance and Business Plan) of New Logistics MicroPlatforms (LmP)) / Charging Orders 840 Juan Pablo Antún et al. / Transportation Research Procedia 12 ( 2016 ) 836 – 841

Centers (COC) Project, as a basis for submitting the candidacy of projects where public participation is sought (Lozano, A; Antun, JP; Santos, C; Alarcón, R ; Guzmán, LA; Hernández, R 2008)

iii. Must be adopted a set of Technical Standards for Engineering Project of the new LmP/COC that considers accessibility, dimensioning, characteristics of logistics warehouses, loading / unloading docks, etc. (Hernández J.C.; Antún, JP; Lozano, A 2003)

iv. Exploratory Study on Identification of Recyclable Buildings in the La Merced Market Complex area for New Logistics MicroPlatforms (LmP)) / Charging Orders Centers (COC) must be made

(2) The Allocation and Equipment of Loading and Unloading Areas

i. Original Loading and Unloading Areas must be released in La Merced Market Complex

ii. Must be implemented signaling in the original loading and unloading areas

iii. A specific study should be performed to design a network of loading and unloading areas on streets managed by information technology (busy signal on web, free of toll by maximun of 30 minutes operation, and for longer period of use increasing toll cost each 15 minutes interval, etc)

(3) Proposal of innovative alternative vehicles for urban freight in the La Merced Market Complex.

i. Should be designed promotional tools (fiscal, financial, etc.) to promote the acquisition of full-electric vehicles for goods distribution routes

ii. A technical project and a feasibility study for the installation of poles refill for full-electric vehicles that incorporate billing management by credit card should be performed

iii. Should be designed promotional tools (fiscal, financial, etc.) to promote the development of innovations in electric vehicles (composite chassis, batteries, charging unit, etc) for urban freight distribution

iv. Should be designed promotional tools (fiscal, financial, etc.) for the development of special vehicles (type "marsupial") that allow early morning launch a full-electric vehicle fleet

(4) Complementary actions to improve vehicles flow performance for urban freight distribution in the Area of La Merced

i. Must be implemented one priority road marking corridors (yellow line) for the displacement of “diableros” (porters) between different markets in La Merced Complex

ii. Must be implemented one priority lane road markings (“blue line”) for the displacement of the full-electric vehicles between different markets

iii. Must be strengthened control the width of the inner aisles of the market to facilitate the movement of “diableros” (porters)

ACKNOWLEDGEMENTS The authors thank the Ministry of Economic Development, Government of Mexico City facilities to spread some Juan Pablo Antún et al. / Transportation Research Procedia 12 ( 2016 ) 836 – 841 841 results of the study conducted.

References

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