by Walther Ploos van Amstel
Brookings is reporting about where will online orders get fulfilled? The changing local geography of e-commerce. Brookings: “As the brick-to-bits transition continues, it’s not enough to just count job and output changes. It’s equally important to know where e-commerce jobs are emerging, especially as it relates to more traditional retail locations”.
We are seeing a growing body of research into last-mile logistics for delivery of products in cities. The growing congestion of cities and the explosion in e-commerce home delivery have challenged traditional last-mile logistics strategies that have focused on point-of-sale delivery. “In the city, shipments are typically much smaller and more fragmented than in regional transport,” …
Automated systems enabling customers to pick-up e-purchased goods from designated 24/7 Parcel Locker pickup points are proliferating. While they offer the promise of improved access to goods and reduced travel for consumers and delivery vehicles, the integration of these systems in cities, and their impact on access, generally and by mode are understudied.
The increasing number of online purchases also causes an increase in deliveries, delivery options, and higher consumer expectations. Extra pressure is being put on the already complex last mile. To overcome this pressure, new initiatives are being developed, including the concept of Green and Social Delivery.
The widespread adoption of e-commerce is impacting a range of stakeholders. Retailers are expected to sell online, logistics operators and parcel companies are required to reconfigure their supply chain and public authorities try to keep local retail competitive while simultaneously attempt to manage the increase in freight transport.
For urban planners, retailers and logistics companies, the growing flow of products from manufacturer to consumer presents new challenges. What is the impact of increasing e-commerce in our European cities? And what can be done to facilitate this transformation of our shopping habits?
The growth of e-commerce is accompanied by an increasing distribution of parcels in cities resulting in externalities like traffic congestion or emissions. As a consequence, different delivery concepts like bike deliveries or delivery points have been suggested. Most companies will only accept these changes, if they do not result in higher cost of delivery.
Tatjana Mirosnicenko won the 2018 KPMG-RSM Sustainability Master Thesis Award for her thesis entitled E-grocery: the effectiveness of content sharing on social media in promoting green slot choice behavior. The MSc graduate was presented the award at the RSM Sustainability Forum 2018, hosted by the Dutch Rotterdam School of Management, Erasmus University (RSM).
City logistics makes an important contribution to the quality of life that people experience in cities. The liveability of cities is under pressure, partly caused by growing number of ‘last mile’ E-commerce deliveries. Various (f)actors involved in the last mile have led to smart initiatives in the sector.
New opportunities arise to design profitable last-mile delivery strategies. In particular, companies can influence customer behavior by choosing the lead-times or time-slots that are offered (capacity controls) and as well as their associated fees (pricing controls). These decisions ultimately seek to balance the capacity utilization and increase the profitability of the delivery operation.