by Walther Ploos van Amstel
In countries like the UK and the US, retail space is now increasingly being used to accommodate showrooms for online retailers. In their quest for wider audiences, retailers are joining forces with logistics providers to incorporate online sales into their business models.
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.
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.
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.
Home deliveries are the preferred method of delivery for consumers today. But, due to the specific, costly nature of home deliveries together with changes within society e.g. people working longer and more flexible hours and the competition between logistics providers, new more sustainable alternatives are being implemented. Automated parcel lockers being such an alternative. Check …
Customer involvement is regarded as a new way to increase last mile efficiency. Improved delivery designs call for customer involvement although it is not clear how customers can be involved and what the consequences are for organizations and customers involved in the last mile.