TPR Antwerps (B) developed last mile cost model

The last mile segment is by far the most dynamic one of a total logistics chain, from both a market perspective and a process perspective. TPR Antwerps research concerning last mile logistics started with the analysis of the B2C market and with the development of the last mile typology, based on desk research.

Further on, an analysis was elaborated concerning the perceived cost effects of the last mile characteristics.

The following areas were found to offer opportunities for optimising last mile efficiency and reducing cost:

  • consumer service level
  • security and delivery type
  • the geographical region
  • market penetration or density
  • the vehicle fleet and technology
  • the environment.


For each of these areas, TRP specified two to four proxy variables. The relevance of each of the proxy variables to each of the three sub flows varied. Clearly, though, the determining factor for their applicability was the value of the goods concerned.

Finally, a simulation cost model/function was developed, so as to simulate the cost effects caused by changes in last mile characteristics or by policy measures taken.

Source: TPR

Leave a Reply

Your email address will not be published. Required fields are marked *