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Practice paper

Urban last-mile logistics rethought: Insights from a one-year pilot project

Maximilian Engelhardt and Stephan Seeck
Journal of Supply Chain Management, Logistics and Procurement, 5 (2), 170-181 (2023)
https://doi.org/10.69554/NJIL4629

Abstract

E-commerce parcel delivery is an important part of the overall service experience of online retailers; however, the service quality of today’s parcel delivery cannot meet the expectations of consumers. This forces urban logistics practitioners to consider how the supposedly diverging requirements of both convenient and environmentally friendly delivery can be met in an economically viable way. One possible solution is ‘Kiezbote’, a last-mile concept that collects parcels from various senders and parcel logistics service providers (PLSP) centrally in a micro-hub strategically located within or just outside the neighbourhood to be supplied. Then, parcels are delivered consolidated per recipient within a desired time window by cargo bike. The concept was tested for one year in Berlin-Charlottenburg. It was shown that the tested delivery concept outperforms large PLSPs in terms of customer satisfaction and reduces emissions such as CO2 on the last mile. Economic viability could be achieved, but this requires a sufficiently high volume of parcels, as the willingness to pay is limited. Based on the results, online retailers should place greater emphasis on reliable and accurate delivery. PLSPs have to work more closely with local delivery partners to offer a wider range of customised delivery services. Technology providers should keep pushing new hardware and software solutions into the market; however, industry standards and interfaces are crucial when it comes to realising a diversified last-mile landscape. Delivery start-ups should combine both new modes of transport and digital business models and municipalities and politics should provide infrastructure, regulations as well as fast approval processes. This paper deals with the question of how the wish for both a convenient and environmentally friendly delivery service can be met in an economically viable way.

Keywords: e-commerce; parcel delivery; last-mile logistics; sustainability; customer satisfaction

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Author's Biography

Maximilian Engelhardt is a Research Associate at the University of Applied Sciences Berlin in the field of smart urban logistics. He leads several applied research projects in cooperation with well-known online retailers, logistics service providers, small and medium-sized enterprises and start-ups. He also led the ‘Kiezbote’ pilot project operationally and co-founded the spin-off after the project’s end. Before joining the University of Applied Sciences Berlin, Maximilian was strategy consultant at Mercedes-Benz Management Consulting, the internal top management consultancy of Mercedes-Benz AG.

Stephan Seeck is a Professor of Logistics and Supply Chain Management at the University of Applied Sciences Berlin since 2012 and Vice President at 4flow AG. After studying and graduating as a PhD in physics at the Technical University Berlin, he worked in logistics consulting in leading positions for over 20 years. Stephan’s research focuses on retail logistics, especially online retail distribution and urban logistics.

Citation

Engelhardt, Maximilian and Seeck, Stephan (2023, January 31). Urban last-mile logistics rethought: Insights from a one-year pilot project. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 5, Issue 2. https://doi.org/10.69554/NJIL4629.

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cover image, Journal of Supply Chain Management, Logistics and Procurement
Journal of Supply Chain Management, Logistics and Procurement
Volume 5 / Issue 2
© Henry Stewart
Publications LLP

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