ABSTRACT
The COVID-19 pandemic is accelerating the growth of e-commerce. As a result, urban freight transport volume is increasing, leading to traffic congestion and negative environmental impacts, while service quality is deteriorating. These challenges can be addressed through radical innovation of urban last mile logistics with environmental-friendly transportation modes (e. g., cargo bikes), consolidation points (e. g., micro hubs) and new digital service models (e. g., time window alignments). However, sustainability improvements lead to higher costs and will not be realized - beyond pilot studies - until they become economically viable. Therefore, willingness-to-pay (WTP) for sustainable last mile innovations (LMI) is one of the most important success factors. In our work, we aim to investigate the WTP for the additional costs of sustainable LMI. While various stakeholders such as online retailers, logistics service providers or city administrations could benefit from sustainable LMI, in our study we focus on the group that is likely to benefit the most: urban inhabitants. Therefore, we investigated consumers' WTP for sustainable LMI by conducting a questionnaire survey in Germany in September and October 2020 (n = 1,071) and analyzing the data using multivariate statistics. The results show four consumer segments, their characteristics, and their WTP for LMI. Based on the results, implications for stakeholders (especially online retailers) are derived to address the behavior of each consumer segment towards more sustainability in urban last mile logistics. Further research would be interesting to evaluate allocation scenarios for the additional costs among all last mile stakeholders empirically. © 2023 The Authors. Published by ELSEVIER B.V.
ABSTRACT
The COVID-19 pandemic is accelerating the growth of e-commerce. As a result, urban freight transport volume is increasing, leading to traffic congestion and negative environmental impacts, while service quality is deteriorating. These challenges can be addressed through radical innovation of urban last mile logistics with environmental-friendly transportation modes (e. g., cargo bikes), consolidation points (e. g., micro hubs) and new digital service models (e. g., time window alignments). However, sustainability improvements lead to higher costs and will not be realized - beyond pilot studies - until they become economically viable. Therefore, willingness-to-pay (WTP) for sustainable last mile innovations (LMI) is one of the most important success factors. In our work, we aim to investigate the WTP for the additional costs of sustainable LMI. While various stakeholders such as online retailers, logistics service providers or city administrations could benefit from sustainable LMI, in our study we focus on the group that is likely to benefit the most: urban inhabitants. Therefore, we investigated consumers' WTP for sustainable LMI by conducting a questionnaire survey in Germany in September and October 2020 (n = 1,071) and analyzing the data using multivariate statistics. The results show four consumer segments, their characteristics, and their WTP for LMI. Based on the results, implications for stakeholders (especially online retailers) are derived to address the behavior of each consumer segment towards more sustainability in urban last mile logistics. Further research would be interesting to evaluate allocation scenarios for the additional costs among all last mile stakeholders empirically. © 2023 The Authors. Published by ELSEVIER B.V.
ABSTRACT
Humanity has faced many pandemics throughout its history with COVID-19 pandemic being the most recent. Each pandemic requires the implementation of a series of restrictions and measures to reform local societies or even society on a global scale. Scientific and technological innovations have ensured the survival of mankind and consequently the establishment of new habits and trends. One of these reforms concerns the transport of goods and in particular urban logistics and last-mile delivery. Despite the increasing use of e-commerce, the average amount of money spent per month and per buyer has decreased;in times of uncertainty, people prefer to postpone big purchases and focus more on everyday products. These purchases have generated an increase in demand for the transport of goods and put significant pressure on the supply chain. For this reason, actions have been developed to improve logistics, in particular last-mile delivery, with the introduction of environmentally friendly and small vehicles, among others. In order to be able to trace the evolution of the combination of the COVID-19 pandemic and logistics spatially and temporally, the manuscript focused as a first step on the analysis of the literature entered in the main databases dedicated to scientific publications, returning some 2,227 indexed articles from 2000 to 2021. The search was conducted using keywords and iterations between them. The results emphasised the need to adapt business activities to the changing situation by anticipating people's needs, creating e-commerce sites capable of accompanying customers in this delicate phase. The results obtained were analysed from a statistical point of view, laying the foundations for future investigative steps in the field of last-mile logistics and the proper planning of loading and unloading spaces for goods in urban areas. © 2023 The Authors. Published by ELSEVIER B.V.
ABSTRACT
PurposeThe main objective of this paper is to provide a systematic literature review (SLR) and structured insight into last mile delivery, ultimately identifying gaps in current knowledge and proposing a framework for future research direction in terms of sustainability in the area.Design/methodology/approachThis paper identifies and synthesizes information from academic journals and examines "Journals and Publishing place,” "Geographic location,” "Year of Publication,” "University and Author Affiliation,” "Themes and Sub-themes,” "Theory,” "Research Design, Methods and Area” and "Industry Involvement.” A collection of online databases from 2005 to 2020 were explored, using the keywords "Last mile delivery,” "Last mile logistics,” "Last mile transportation,” "Last mile fulfillment,” "Last mile operations” and "Last mile distribution” in their title and/or and/or keywords. Accordingly, a total of 281 journal articles were found in this discipline area, and data were derived from a succession of variables.FindingsThere has been significant growth in published articles concerning last mile delivery over the last 15 years (2005–2020). An in-depth review of the literature shows five dimensions of the last mile: last mile delivery, transportation, operations, distribution and logistics. Each of these dimensions is interrelated and possess clustered characteristics. For instance, last mile operations, last mile transportation and last mile delivery are operational, whereas last mile distribution is tactical, and last mile logistics possess strategic characteristics. The findings also indicate that even though the sustainability concept can be incorporated into all levels of the last mile, the current literature landscape mainly concentrates on the operational level.Research limitations/implicationsThis review is limited to academic sources available from Emerald Insight, Science Direct, Taylor and Francis, Springer, MDPI and IEEE containing the mentioned keywords in the title and/or /or keywords. Furthermore, only papers from high-quality, peer-reviewed journals were evaluated. Other sources such as books and conference papers were not included.Practical implicationsThis study dissects last mile delivery to produce a framework that captures and presents its complex characteristics and its interconnectedness with various related components. By analyzing last mile delivery in its entirety, the framework also helps practitioners pinpoint which levels of last mile delivery (operation, tactical or strategic) they can incorporate the concept of sustainability.Originality/valueThe research findings enrich the contemporary literature landscape and future work by providing a conceptual framework that incorporates the "economic,” "environmental” and "social” pillars of sustainability in all dimensions of the last mile delivery.
ABSTRACT
The purpose of this paper is to assess the impact of the COVID-19 pandemic on rural e-customers' preferences in terms of last mile delivery and products purchased via the Internet. This paper is based on the theory of last mile delivery (with a strong focus on the methods of delivery) and customers' preferences. It combines both theories to fulfil the paper's goal. In the paper, the literature review and multivariate data analysis of rural e-customers in Poland were used. The hypothesis states that there is a requirement for different last mile delivery solutions in rural areas than in urban areas in Poland. The research was carried out on a sample of 1071 adult Poles, who are residents of rural areas, using the standardized and structured computer-assisted interview (CAWI). The authors used the chi-square independence test, the Student t-test, one-way analysis of variance (ANOVA), regression models, and logistic models. The research shows that more than 60% of respondents living in rural areas order goods purchased online with a home delivery method and that online shopping preferences' changes are not so significant after the occurrence of COVID-19. Both before and after the pandemic, rural e-customers made online purchases most often 2–3 times a month. Nevertheless, some differences in the preferences of rural e-customers in terms of last mile delivery and purchasing preference can be seen considering their age, gender, or family size. The survey found that smaller families were more likely to choose free home delivery with a free return after the pandemic. The research presented in this paper provides essential information for courier companies, stores, and online platforms alike. Knowledge of preferences and their changes after the occurrence of COVID-19 can support the reorganization of last mile delivery to meet the needs of e-customers and to adapt to the increasing demands for sustainable transportation. © 2023 by the authors.
ABSTRACT
The COVID Pandemic since early 2019 has imposed significant effects on our life. In the retail and logistics sector, the large-scale national lockdown has drastically driven e-commerce sales because the e-marketplace has become the only sales channel. Whilst the pandemic has accelerated the shift towards a more digital world and led to an irreversible dependence on e-commerce retailing, the pressure is on retailers and logistics service providers to respond to the growing demand for immediate delivery in the e-commerce era. Given the integration of smart lockers into developing a more favourable environment which potentially makes immediate delivery more feasible, this paper introduces a novel, dynamic delivery strategy, namely Community Logistics Strategy (CLS), for formulating and updating the new delivery plan in real time as new delivery requests to smart lockers arrive. To shed light on the effect of dynamic order arrival towards delivery planning, the CLS attempts to update the delivery plan by taking new requests into account in real time. Simulation results reveal the superiority of the proposed strategy in managing e-commerce delivery requests, especially within megacities where consumers are highly dense in a compact geographical area.
ABSTRACT
Along with the increase in population, the increase in demand for freight in e-commerce has complicated the transportation of goods with increasing transportation costs. The demand for e-commerce has also increased rapidly, especially during the current outbreak of the COVID-19 epidemic. Along with this need, the paper presents the current situation of freight transportation in the last mile of the e-commerce industry and new trends to improve the conditions in the last-mile delivery. Through published studies, several applications in last-mile delivery have also been identified for comparison with other costing methods. Studies also show that the application of new technologies in last-mile delivery can optimise costs, the environment, as well as delivery policies for companies. The paper also points out that the difficulty in applying and managing new technologies is very complicated and requires policies from managers. This can also be considered a new research direction that contributes to promoting new technologies in last-mile delivery to reduce time and costs for delivery companies as well as customer costs for last-mile delivery. Copyright © 2022 Inderscience Enterprises Ltd.
ABSTRACT
The final leg of the supply chain: the last mile delivery on the one hand is considered the most problematic part of the delivery process, but on the other hand it contributes to customer satisfaction the most. In its turn, customer experience (CX) is now just as important an element of the brand perception as the product offering. Customers are constantly looking for more personalized, convenient, and secure ways of getting the delivery service. Studies show that for many shoppers, efficient and fast deliveries are becoming the top priority coming before the price of goods. An increase in customer demand for service quality and the boom of e-commerce has led to the development of new ways of last-mile delivery solutions, that optimize customer experience and contribute to building strong relationships between the customer and the brand. In this study, we attempt to review the transformations that LMD has gone through in recent years during the COVID-19 pandemic both because of the challenges and new opportunities companies faced as well as the changes in the customer behaviour and customer experience. We will also try to provide some insights on the possible future development of LMD. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
Purpose: Considering the last-mile delivery service supply chain as a social-ecological system rather than just a firm-based service system, this research exploit the COVID-19 pandemic disruption to investigate how the supply chain develops resilience from a viewpoint that integrates a social-ecological perspective with the traditional engineering one. Design/methodology/approach: This research adopt a multi-case study approach using qualitative data collected via semi-structured interviews with executive-level managers from nine leading UK last-mile delivery companies. Data analysis is guided by a research framework which is developed by combining the social-ecological perspective with the structure–conduct–performance paradigm. This framework aids the investigation of the impacts of external challenges on companies' resilience strategies and practices, as well as performance, in response to disruptions. Findings: The research identifies three distinct pathways to resilience development: stabilization, focussing on bouncing back to the original normal;adaptation, involving evolutionary changes to a new normal;transformation, involving revolutionary changes in pursuit of a new normal-plus. Three strategic orientations are identified as operating across these pathways: people orientation, digital orientation, and learning orientation. Originality/value: In contrast to the manufacturing supply chain focus of most current research, this research concentrates on the service supply chain, investigating its resilience with a social-ecological perspective alongside the traditional engineering one. © 2022, Emerald Publishing Limited.
ABSTRACT
In IoT (Internet of Things), the concept of a Smart City integrates technologies and physical devices in various fields of deployment. One such instance is logistics. With the increasing popularity and need for online shopping, the e-commerce sector is growing-which goes hand in hand with the logistics industry. The logistics industry keeps growing and is gaining more and more importance-and so do the delivery solutions in the last-mile part of the logistics chain. The last-mile delivery offers a lot of possibilities for new and complexly integrated smart solutions. We propose a new solution for smart delivery services on the last mile. We call it a Smart Post Box. This concept combines various elements and creates a multi-purpose smart city solution that can be easily integrated into different systems. It introduces new ways to receive and send packages, integrates as a part of a smart household, sends notifications, and can be used to collect valuable data. During the current coronavirus outbreak, this solution would prove to be useful in reducing interpersonal contact and thus help eliminate the transfer of the disease. Our calculations show great potential for such innovation. © 2022 IEEE.
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PurposeThis study aims to analyse the structure of the Indian vaccine supply chain (SC) during the Covid-19 crisis and explore the underlying challenges at each stage in the network. It also brings out the difference in performance of various constituent states. Design/methodology/approachThis study relied on both primary and secondary data for the analyses. For the primary data, the study gathered experts' opinions to validate the authors' inferences. For the secondary data, it relies on government data provided in websites. FindingsBased on the quartile analysis and cluster analysis of the secondary data, the authors find that the constituent states responded differently during the first and second waves. This was due to the differences in SC characteristics attributed to varied demographics and administrative efficiency. Research limitations/implicationsThis paper's analyses is primarily limited to secondary information and inferences are based on them. The study has important implications for implementing the large-scale vaccination drives by government and constituent states for better coordination and last-mile delivery. Originality/valueThe contribution is unique in studying the performance of constituent states using statistical techniques, with secondary data from authentic sources. It is also unique in combining this observation with validation from experts.
ABSTRACT
The economic and environmental challenges associated with Last Mile Delivery (LMD) give rise to the self-collection concept, yet the practical adoption is often below expectations. In this consumer-centric segment, adequate understandings of consumers are vital but are often lacking. To address this gap, this study examines consumers' LMD preference with the Integrated Choice and Latent Variable framework. A stated choice experiment was commissioned in Singapore during the transition of COVID pandemic toward endemic. Our results showed that consumers accept unattended delivery methods and are no longer concerned with the delivery time window, a traditionally critical delivery attribute. Regarding latent perceptions, this study confirmed the significant effects of value perception on self-collection preferences. Nonetheless, individuals' environmental consciousness was found to be insignificant. The relative effects of specific value statements were quantified using the marginal rate of substitution and the mediation roles of value perception on the sociodemographic-preferences relationships were validated.
ABSTRACT
Notoriously precarious, hazardous, and stressful, delivery jobs became even more onerous and dangerous during the pandemic. In this study, set in Ho Chi Minh City, Vietnam, we applied Structural Equation Modelling to a large sample of primary data to measure delivery riders' intention to quit their jobs at the height of the pandemic. We found that job burnout was the key trigger to the intention to quit whereas the risk of Covid-19 infection did not directly affect this behavioral intention. Female riders, migrants, persons living with chronic diseases, and those who had seen their income decimated during the pandemic were more likely to want to quit their job. But if a mass of delivery drivers or riders had failed to show up for work, the last-mile delivery sector would have become paralysed, leaving individuals in various states of lockdown or isolation without food and supplies. As the sector is poised to retain its importance in the post-pandemic period, we recommend a number of approaches for both private companies and public policy makers to persuade riders to stay in their jobs. First and foremost, strategies to prevent and mitigate job burnout should be formulated.
ABSTRACT
Purpose Considering the last-mile delivery service supply chain as a social-ecological system rather than just a firm-based service system, this research exploit the COVID-19 pandemic disruption to investigate how the supply chain develops resilience from a viewpoint that integrates a social-ecological perspective with the traditional engineering one. Design/methodology/approach This research adopt a multi-case study approach using qualitative data collected via semi-structured interviews with executive-level managers from nine leading UK last-mile delivery companies. Data analysis is guided by a research framework which is developed by combining the social-ecological perspective with the structure-conduct-performance paradigm. This framework aids the investigation of the impacts of external challenges on companies' resilience strategies and practices, as well as performance, in response to disruptions. Findings The research identifies three distinct pathways to resilience development: stabilization, focussing on bouncing back to the original normal;adaptation, involving evolutionary changes to a new normal;transformation, involving revolutionary changes in pursuit of a new normal-plus. Three strategic orientations are identified as operating across these pathways: people orientation, digital orientation, and learning orientation. Originality/value In contrast to the manufacturing supply chain focus of most current research, this research concentrates on the service supply chain, investigating its resilience with a social-ecological perspective alongside the traditional engineering one.
ABSTRACT
One of the profound impacts of digitalization on supply chains is manifested through e -commerce. The latter has significantly grown during the last two decades, with further amplifications during the COVID-19 pandemic. This has created operational and policy making challenges for firms when deciding about how best to manage the resulting growth in e -commerce. While the impact of e-commerce on supply chains has been widely recognized in the literature, there was no effort to systematically review the literature, conceptualize some of the challenges and propose future research directions. This paper fills this gap by reviewing 153 publications from 1999 to 2019. We classify the reviewed literature based on which supply chain drivers were investigated, as well as, the employed research methodology. In addition, we conduct network and content analysis to uncover the main research themes and potential research directions namely, developing analytical centred;modelling based ecosystem for environment;leveraging data mining to enhance sustainability;balance between growth and sustainability;consumer demand and uncertainty;coordination in e-commerce logistics;last mile alternatives and cost management of innovative technique implementations. Furthermore, based on our literature review, we propose a conceptual framework where we interlink supply chain stages with a firm's business strategy, digital transformation strategy and performance.
ABSTRACT
In recent months, online sales have experienced a sharp surge also due to the COVID pandemic. In this paper, we propose a new location and routing problem for a last mile delivery service based on parcel lockers and introduce a mathematical formulation to solve it by means of a MIP solver (Gurobi).The presence of parcel locker stations avoids the door-to-door delivery by companies but requires that consumers move from home to collect their parcels. Potential location of locker stations is known but not all of them need to be opened. The problem minimizes the global environmental impact in terms of distances traveled by both the delivery company and the consumers deciding the optimal number of stations that have to be opened.How much do the number and location of lockers impact on environment? Is the behavior of consumers a critical aspect of such optimization? To this aim we have solved 1680 instances and analyzed diferent scenarios varying the number of consumers and potential parcel lockers, the maximum distance a consumer is willing to travel to reach a locker station, and the maximum distance we may assume the same consumer is willing to travel by foot or by bicycle.The experimental results draw interesting conclusions and managerial insights providing important rules of thumbs for environmental decision makers.Copyright (c) 2022 The Authors. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
ABSTRACT
Background: The coronavirus disease 2019 (COVID-19) pandemic had a significant impact on business operations and consumer behaviour across the world. The South African online retail environment also encountered different opportunities and last-mile logistics challenges. However, the impact of the COVID-19 pandemic on online consumer behaviour has received limited attention. Furthermore, limited studies exist which have measured the online buying behaviour of young people, an important online market segment. Objectives: The primary purpose of this study was to determine whether the onset of the COVID-19 pandemic significantly influenced the online shopping behaviour of young people and to provide online retailers and consumer behaviour theorists with a better appreciation of young consumers’ online purchasing needs, which will assist them in developing and effecting appropriate last-mile logistics strategies. Methods: A quantitative research design was used, and empirical data were collected from two non-probability sampling surveys conducted in 2019 (before the COVID-19 pandemic) and in 2020 (during the COVID-19 pandemic) of 461 young people in the Johannesburg area. A self-administered online questionnaire was used to collect the research data. Results: The results indicate that online shopping behaviour either did not change or increased because of the COVID-19 pandemic for most respondents. Young online consumers consider order fulfilment aspects to be more important than the tangible considerations of online retailers. Conclusion: This research study provides a distinct perspective of young people’s perceptions of online shopping and makes a meaningful contribution by identifying the important fulfilment-related service quality expectations of young online customers in South Africa. © 2022. The Authors.
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Purpose This study aims to investigate the conditions for the financial feasibility of an incentive-based model for self-drop or crowdsourced drop of the product to be returned at designated drop boxes (thereby ensuring a contactless process). Design/methodology/approach Constraint-based non-linear mathematical modeling was done for cost differential with and without crowdsourcing. This was analyzed against returns on investment for the installed infrastructure. Scenarios were looked into from the linear, iso-elastic and logarithmic demand functions to identify the optimal incentive policy. The results were further evaluated using "willingness to return" for customer willingness for product returns via drop boxes. Findings Crowdsourcing is viable when product returns are no more than 15%-20% of the overall products, with a logistics cost differential of 15%-25%. These were only viable when the product return incentive was within the range of 15%-20% of the product cost, as well as the penalty was in the range of 25 to 40% for wrong returns. Research limitations/implications The findings are expected to aid the organizations in successfully designing product return policies while adhering to the post-COVID-19 norms, including contactless transactions and social distancing. Originality/value The study provides a look into the viability sensitivity of effective gains/profitability against the required level of service for returns, wrong returns, penalties and incentives for crowdsourcing in a developing country like India.
ABSTRACT
The urban freight sector provides an essential service by delivering goods that are required by shops, companies, and households at a specific place and time. However, the growth of e-commerce and the dawn of on-demand logistics (hereinafter ODL) have raised citizens’ expectations of logistics systems, further stressing them and thereby increasing their operational and environmental costs. To the authors’ best knowledge, there are no extensive literature reviews specifically on the topic of ODL and on suggestions for policy prioritisation for tackling its effects. This paper aims at addressing this issue by providing an extensive literature review of ODL and its enablers. This research, after a thorough explanation of the ODL rationale, its trends, and its effects, analyses possible solutions to its inefficiencies, focusing on enablers and barriers. Furthermore, it illustrates and clarifies the role of external factors in influencing ODL. Finally, it proposes a systematic evaluation approach by identifying knowledge gaps and consequently defining the subsequent actions needed, broken down by the individual influencing components, rendering these solutions compatible with the status quo and effective for solving the highlighted issues.
ABSTRACT
As the private sector is under heavy pressure to serve the ever-growing e-commerce market, the potential of implementing new disruptive mobility/logistics services for increasing the level of the current last-mile delivery (LMD) services, is emerging. Vehicle automation technology, characterized by high-capacity utilization and asset intensity, appears to be a prominent response to easing this pressure, while contributing to mitigation of the adverse effects associated with the deployment of LMD activities. This research studied the perceptions of Greek end-users/consumers, regarding the introduction of autonomous/automated/driverless vehicles (AVs) in innovative delivery services. To achieve this, a mixed logit model was developed, based on a Stated Preferences (SP) experiment, designed to capture the demand of alternative last-mile delivery modes/services, such as drones, pods, and autonomous vans, compared to traditional delivery services. The results show that the traditional delivery, i.e., having a dedicated delivery person who picks up the parcels at a consolidation point and delivers them directly to the recipients while driving a non-autonomous vehicle—conventional van, bike, e-bike, e-scooter—remains the most acceptable delivery method. Moreover, the analysis indicated that there is no interest yet in deploying home deliveries with drones or AVs, and that participants are unwilling to pay extra charges for having access to more advanced last-mile delivery modes/services. Thus, it is important to promote the benefits of innovative modes and services for LMD, in order to increase public awareness and receptivity in Greece.