Urban Last-Mile Transportation 4.0
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2019-08-07
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Edition:Year 25 Final Report
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Abstract:With the rise of the on-demand economy and the increasingly high service levels expected by consumers, companies are racing to provide shorter and shorter delivery lead times for ecommerce orders. Two-day deliveries have become the norm in dense urban areas and companies are developing highly responsive urban distribution networks capable of serving consumers in lead times as low as one hour. In this work, we explore the strategic design of highly responsive urban distribution networks, promising lead times of under two hours, and investigate which operational and environmental parameters drive the deployment of different types of network designs. Furthermore, we evaluate the environmental footprint of these networks by measuring their contribution to congestion and CO2 and NOx emissions, and contrast these with the environmental footprint of next-day delivery distribution networks. From a policy perspective, we investigate how the strategic design and performance of highly responsive networks are affected by an urban congestion charge policy and by different levels of government subsidy for last-mile logistics infrastructure. We conduct a case study inspired by the operations of a global fashion company in Manhattan, New York. Our preliminary findings indicate that highly responsive networks can be sustainable if designed under favorable operational conditions.
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