The final leg of a product's journey, the last-mile delivery, holds immense significance in the world of logistics. It’s the phase that can make or break the entire customer experience. In the UK alone, the volume of the parcel market reached 2.6 billion items in the 2018-19 financial year (Ofcom, 2019).
With logistics companies and delivery drivers visiting the same streets and buildings day after day, there is a huge economic and environmental impact that can and should be mitigated urgently. That’s why the need for innovative last-mile logistics solutions has become more pressing than ever.
My research, as part of the collaborative SCALE: Soft Computing to Accelerate Fulfilment & Logistics Efficiency project, investigates a novel last-mile logistics delivery system that leverages the power of multiple localized storage depots and multi-modal delivery options. This innovative system aims to support the logistics market, making it more efficient, cost-effective, and environmentally friendly. This new approach might just revolutionise the way we perceive and execute last-mile logistics.
Professor Tony Roskilly, Director of the UK-MaRes Hub at Durham University said:
“Our vision is to create a pioneering research hub providing technically, environmentally, socially and economically informed ways to decarbonise the maritime sector. The UK-MaRes Hub will harness the depth, breadth and diversity of research being undertaken in the UK to foster collaboration, drive forward innovation and transformation, and set a global benchmark for excellence in maritime research.”
Professor Miles Padgett, Interim Executive Chair of EPSRC, added:“Investing in research and innovation is crucial to achieve the UK’s ambitious target of net zero greenhouse gas emissions by 2050. Domestic shipping emits more polluting gases than buses and rail combined. A maritime research hub will bring together world-leading expertise and support the sector to develop and commercialise clean maritime fuels and technologies.”
The UK parcels market has two main operating models: hub-and-spoke and point-to-point. The hub-and-spoke model handles by far the greatest parcel volumes and has traditionally been used for non-urgent (next-day or longer) deliveries. Same-day deliveries are becoming more common but are far less energy-efficient often requiring pickup and delivery of single items.
A new proposal outlined in a recent publication outlined a new system using multiple local storage depots strategically placed in various city locations. These depots not only facilitate express delivery services but also play a crucial role in addressing the challenge of accessibility in certain areas which can make deliveries more efficient. With this setup, the system can operate with greater flexibility, adapting to various restrictions and catering to a wider range of geographical areas.
The integration of multi-modal delivery options within this system further enhances its efficiency. By employing alternative green vehicle types for deliveries, especially in areas where vehicle access might be limited, the system ensures seamless operations while reducing its environmental footprint. This approach aligns with the growing emphasis on sustainable practices in logistics.
Greener deliveries are not only great for the environment, they’re made significantly more cost-effectively by using electric cargo bikes and porters, particularly when dealing with high demand density and smaller parcel sizes. The system's innovative method involves vehicles rendezvousing at kerbside locations to transfer parcels between them streamlines the delivery process, optimising time and resources.
One notable aspect of our model is its variable-echelon structure. By not imposing a fixed hierarchy on the sequence of vehicles transporting parcels, the system demonstrates adaptability and flexibility, ensuring more sustainable solutions and adaptability to varying logistical challenges.
To illustrate how feasible and practical this new distribution system is, we developed computational methods and presented computational results based on benchmark instances, including real sales data to help visualise and validate just how efficient we can make deliveries for organisations and help them understand and manage the collective impact of delivery vehicles.
Greener last-mile delivery system not only tackles existing logistical challenges but also presents a promising solution to revolutionize the entire delivery process. Its potential benefits in terms of efficiency, cost-effectiveness, and environmental sustainability make it a significant contender in the evolving landscape of logistics.