R'SULT Best Practices Handboek by Brigitte Vleghels

A project by VIL

R!sult Responsive Sustainable Urban Logistics Best Practices in Last-Mile Deliveries

Department of Transport and Regional Economics University of Antwerp (September 2020)

R!sult – Best practices in last-mile deliveries

Contents Acknowledgements ............................................................................................................... 6 Project Participants ............................................................................................................... 7 Abbreviations ........................................................................................................................ 8 1.

Introduction .................................................................................................................... 9 1.1 Background ................................................................................................................. 9 1.2 Objectives.................................................................................................................... 9 1.3 Document structure ................................................................................................... 10

Methodology and framework ........................................................................................ 11 2.1

Exploration ............................................................................................................ 11

2.2

Selection ............................................................................................................... 13

2.3

Evaluation ............................................................................................................. 16

2.4

Observation .......................................................................................................... 19

Category: Environment-friendly vehicles ...................................................................... 21 3.1 a) 3.2 a)

Deliveries with electric vans .................................................................................. 21 Best practice: Gnewt Cargo (London, UK) ............................................................ 22 Deliveries with cargo bikes.................................................................................... 26 Best practice: Zedify (London, UK) (deliveries with cargo bikes and micro hub) .... 27

b) Best practice: La Petite Reine (Paris, France) (deliveries with cargo bikes with value-added services) .................................................................................................. 30 c)

Other cases .......................................................................................................... 34

Case 1: Pedal & Post (Oxford, UK) .............................................................................. 34 Case 2: Bubble Post (Belgium) .................................................................................... 35 Case 3: Dropper (Groningen, Netherlands) .................................................................. 36 Case 4: Loreal - Proximus case (Brussels, Belgium) .................................................... 37 Case 5: Urban Cargo (Berlin, Germany) ...................................................................... 38 Case 6: Dabbawala (Mumbai, India) ............................................................................ 39 Case 7: Pling Transport (Gothenburg, Sweden) ........................................................... 40 Case 8: Cargo Velo (Ghent, Belgium) .......................................................................... 41 Case 9: De fietskoerier (Cities in Belgium and Netherlands) ........................................ 42 Case 10: Royal Mail (UK) ............................................................................................. 43 3.3

Reverse logistics with cargo bikes ........................................................................ 44

R!sult – Best practices in last-mile deliveries

a) 3.4 4.

Best practices: TRASHH (Hamburg, Germany) .................................................... 45 Summary .............................................................................................................. 49

Category: Infrastructure ............................................................................................... 53 4.1

Micro hub with multiple or single carriers .............................................................. 53

Best Practice: KoMoDo (Berlin, Germany) ............................................................ 54

Other cases .......................................................................................................... 58

Case 1: DPD (London, UK) .......................................................................................... 58 Case 2: The green link (Paris, France) ......................................................................... 59 Case 3: Oslo City hub (Oslo, Norway) .......................................................................... 60 Case 4: City Hub (Graz, Austria) .................................................................................. 61 Case 5: Shinjuku joint delivery system ( Japan) ........................................................... 62 Case 6: Imagine Cargo (Berlin, Germany) ................................................................... 63 Case 7: CityHUB, Smart and Wise (Turku, Finland) ..................................................... 64 Case 8: The hub company (Netherlands) ..................................................................... 65 4.2

Storage and consolidation..................................................................................... 66

Best Practice: Binnenstadservice (Netherlands) ................................................... 67

Other cases .......................................................................................................... 71

Case 1: Goederen Hub (Cities in the Netherlands) ...................................................... 71 Case 2: CityPorto Padova (Padua, Italy) ...................................................................... 72 Case 3: CityDepot / BDmyShopi (Belgium) .................................................................. 73 Case 4: Simply Mile (Netherlands) ............................................................................... 74 Case 5: Hubbel Last-Mile (Netherlands) ...................................................................... 75 Case 6: Lucca Port (Italy) ............................................................................................. 76 4.3

Click and collect services (Locker system / Pick Up-Drop Off points) .................... 77

Parcelly (London, UK) ........................................................................................... 78

Other cases .......................................................................................................... 82

Case 1: Cubee (Belgium) ............................................................................................. 82 Case 2: Bringme (Belgium) .......................................................................................... 83 Case 3: Parcls (The Netherlands) ................................................................................ 84 4.4 Summary ................................................................................................................... 85 5.

Category: Policy ........................................................................................................... 88 5.1

Urban logistics management system .................................................................... 88

R!sult – Best practices in last-mile deliveries

Best Practice : Gothenburg, Sweden (Stadleveransen) ........................................ 89

Other cases .......................................................................................................... 94

Case 1 : Utrecht (Netherlands)..................................................................................... 94 5.2

The network of urban logistics infrastructure ........................................................ 95

a) London, UK (a network of lockers at a city level and micro hubs in parking lots at borough level) .............................................................................................................. 96 b)

Other cases ........................................................................................................ 100

Case 1: Mechelen (Belgium) ...................................................................................... 100 5.3 6.

Summary ............................................................................................................ 101

Category: Technological interventions ....................................................................... 104 6.1

Intelligent Transport System (ITS) solutions for deliveries ................................... 104

AreaDUM application (Barcelona, Spain) ............................................................ 105

Other cases ........................................................................................................ 109

Case 1: Robovan from Omniva (Tallinn, Estonia)....................................................... 109 Case 2: CoRoS Mercedes van (USA) ........................................................................ 110 Case 3: Boxbot (California, USA) ............................................................................... 111 Case 4: Hytchers (Belgium) ....................................................................................... 112 Case 5: Parcify (Antwerp, Belgium)............................................................................ 113 Case 6: Beedrop (Belgium) ........................................................................................ 114 Case 7: Amazon Flex (USA) ...................................................................................... 115 Case 8: iShare (Netherlands) ..................................................................................... 116 Case 9: Scheduling at Changi Airport (Singapore) ..................................................... 117 6.2

Summary ............................................................................................................ 118

Observations.............................................................................................................. 121

Annexure ................................................................................................................... 124 8.1

Quick view table of all cases ............................................................................... 124

8.2

Map : location of various cases explored in this study ......................................... 128

References ....................................................................................................................... 129

List of tables Table 1: Project categories and unique concepts ......................................................................... 12 Table 2: Sustainability indicators ..................................................................................................... 14

R!sult – Best practices in last-mile deliveries

Table 3: Case study components in various European projects on urban logistics ................ 18

List of figures Figure 1: Study process .................................................................................................................... 11 Figure 2: Category-wise case distribution ...................................................................................... 13 Figure 3: Diagram showing the ranking of cases .......................................................................... 14 Figure 4: Project categories, best practices and unique concepts ............................................. 15 Figure 5: Second stage outcome ..................................................................................................... 16 Figure 6: Case study framework ...................................................................................................... 19 Figure 7: Sustainability indicator ranking for deliveries with electric vans................................. 22 Figure 8: Gnewt Cargo’s delivery vehicles ..................................................................................... 23 Figure 9: Location of micro consolidation centre of Gnewt Cargo in London ........................... 24 Figure 10: Urban consolidation centre concept by Gnewt Cargo ............................................... 24 Figure 11: Sustainability indicator ranking for deliveries with electric vehicles ........................ 26 Figure 12: Tricycles parked in micro consolidation centre in Hoxton ......................................... 28 Figure 13: Location of Zedify Hoxton depot and London’s ULEZ ............................................... 28 Figure 14: Zedify’s delivery fleet ...................................................................................................... 28 Figure 15: Environment-friendly vehicles by La Petite Reine...................................................... 31 Figure 16: La Petite Reine’s micro hubs ......................................................................................... 32 Figure 17: Sustainability indicator ranking for reverse logistics with cargo bikes .................... 44 Figure 18: Tailor-made cargo bikes for TRASHH ......................................................................... 46 Figure 19: a multi-modal solution with last-mile consolidation centres for waste (prepared by DLR) ..................................................................................................................................................... 47 Figure 20: Generic business model for cases of environment-friendly vehicles ...................... 50 Figure 21: Sustainability indicator ranking for a micro hub with multiple carriers .................... 54 Figure 22: Location of KoMoDo micro hub ..................................................................................... 55 Figure 23: Container arrangement at KoMoDo ............................................................................. 56 Figure 24: Sustainability indicator ranking for storage and consolidation ................................. 66 Figure 25: Binnenstadservice concept ............................................................................................ 67 Figure 26: Binnenstadservice vehicles and depot ........................................................................ 68 Figure 27: Sustainability indicator ranking for storage and consolidation ................................. 78

R!sult – Best practices in last-mile deliveries

Figure 28: Parcelly’s local warehousing concept .......................................................................... 79 Figure 29: Parcelly app interface ..................................................................................................... 80 Figure 30: Generic business model for cases of Infrastructure .................................................. 86 Figure 31: Sustainability indicator ranking for urban logistics management system ............... 89 Figure 32: Delivery vehicles of Stadleveransen ............................................................................ 91 Figure 33: project timeline of Stadleveransen ............................................................................... 92 Figure 34: Sustainability indicator ranking for the network of urban logistics infrastructure ... 95 Figure 35: London metropolitan area .............................................................................................. 97 Figure 36: Borough of City of London ............................................................................................. 97 Figure 37: Generic business model for cases of Policy ............................................................. 102 Figure 38: Sustainability indicator ranking for ITS solutions for deliveries .............................. 105 Figure 39: AreaDUM application interface ................................................................................... 107 Figure 40: Generic business model for cases of Technical interventions ............................... 119

R!sult – Best practices in last-mile deliveries

Acknowledgements We thank VIL for partnering with us for R!sult project. We would also like to thank all the project partners for their feedback and inputs during the study. We would like to thank various people for their contribution to this study by sharing their experiences and learnings; •

Dr Adeline Heitz (Assistant Professor, Conservatoire National des Arts et Métiers, Paris, France) for sharing her insights about La Petite Reine;

•

Allan Barrie (Consultant, Transport for London, UK) for sharing TfL’s policies and planning for urban freight in London;

•

Birgit Hendrix (Representative from Binnenstadservices, Netherlands) for explaining the system of Binnenstadservices and the background story of its commencement;

•

Britta Peters (Project Coordinator, Stadtreinigung, Hamburg, Germany) for sharing her experiences of implementing and managing TRASHH project;

•

Christoffer Widegren (Consultant, the City of Gothenburg, Sweden) for sharing about Stadleveransen project;

•

Dr Julius Crowd (a representative from BEHALA, Germany) for giving a tour of KoMoDo project and explaining the implementation process;

•

Rob Fowler (General Manager, DPD London, UK), for providing details about their micro hub and planning for a pilot with cargo bikes;

•

Rob King (Co-founder, Zedify London, UK), for showing how Zedify works from a micro hub in the Low Emission Zone with cargo bikes;

•

Sebastian Steinhauser (Managing Director, Parcelly, London UK), for sharing insights about Parcelly’s PUDO system;

•

Stina Johansson (Representative from Pling transport and Velove, Gothenburg, Sweden), for showing us cargo bike operations in Gothenburg;

•

Thomas Parker (Senior Strategic Transportation Officer, Borough of the City of London, UK) for sharing ideas and plans for urban freight in the borough;

•

Xavier Cruzet (Technical officer, Barcelona city hall, Barcelona, Spain) for explaining how the AreaDUM project commenced and how it works.

R!sult – Best practices in last-mile deliveries

Project Participants There are 23 companies and six cities participating in this project: City of Antwerp, ACP, BD Myshopi, BME, City of Bruges, Cargo Velo, Colruyt, Geosquare, DHL International, Etheclo, Futurelab (bpost), City of Ghent, GLS, Goodman, City of Mechelen, Montea, On Time Logistics, OOVelo (Fietskoerier De Nil), PostNL, Proximus, City of Sint-Niklaas, City of SintTruiden, Smartship, Tengu, Trimble, WDP, Weerts Supply Chain and Zetes.

R!sult – Best practices in last-mile deliveries

Abbreviations CEP - Courier Express Parcel GHG - Green House Gas IT - Information Technology ITS - Intelligent Transport Solutions MENA - the Middle East and North Africa O&M - Operations and Maintenance PUDO - Pick-Up Drop-Off UAntwerp - University of Antwerp UCC - Urban Consolidation Centre UK United Kingdom VIL - Speerpuntcluster voor Logistiek ULEZ - Ultra Low Emission Zone

R!sult – Best practices in last-mile deliveries

1. Introduction 1.1 Background Urbanization leads to an increase in the demand for goods entering the city on a daily basis. Various companies and online stores are providing more options to consumers for the supply of goods and services including ‘same-day delivery’. This demand has led to a growth in the number of delivery vans in towns, cities and neighbourhoods: more than 80% of freight traffic in urban areas is now comprised of delivery vans (Visser et al, 2018). Local authorities are trying to maintain the liveability in the city centres. In Flanders, cities are facing congestion and growing numbers of deliveries can be seen as one of the causes. In the project ‘R!sult’, it is intended to explore various practices and strategies within urban logistics with a specific focus on last-mile deliveries. R!sult Best Practices focuses on accumulating knowledge and information which can support in establishing a commercially feasible set-up for last-mile deliveries considering sustainability goals. Further, VIL wants to work out a model for sustainable and economic city logistics that is beneficial to all stakeholders (producers, cities, logistics service providers, traders and citizens), as a final output of the R!sult project. The accumulated knowledge from the subproject Best Practices and the Calculation Model provides opportunities for all industrial companies involved in this project to optimize their supply chains and to build innovative services concerning city logistics, and for city authorities to create a roadmap towards better urban logistics. VIL, along with participating cities, plans to propose pilot projects based on this research and the Calculation Model to experiment and develop innovative solutions for sustainable last-mile practices. More details about the Calculation Model and the pilot projects can be found on https://vil.be/en/project/rsult-responsive-sustainable-urban-logistics/

1.2 Objectives The main objective of this sub-project is to identify best practices in urban logistics focusing on last-mile deliveries. This is done by observing and documenting various national and international initiatives with an emphasis on successful business models. This also includes a more detailed study of specific cases to better understand their learnings.

R!sult – Best practices in last-mile deliveries

1.3 Document structure This booklet provides insights into various cases related to last-mile delivery. The case studies have a common structure to lead readers through the whole process of the framework. This booklet is structured into seven parts. The following part explains the process of exploring cases related to last-mile deliveries and the methodology developed to study those cases. The third, fourth, fifth and sixth parts present the cases according to various categories of innovation. The seventh part of the document summarizes the observations derived from the case studies. At the end of the booklet, all the cases explored during this project are listed with the basic information in a quick view table along with a map as part of the annexure.

R!sult – Best practices in last-mile deliveries

2. Methodology and framework This study comprises of empirical research to acquire knowledge about existing urban logistics practices and eventually derive learnings for cities in Flanders. The methodology is shown in figure 1. It involves four stages. The first stage explores various last-mile delivery practices and classifies them in different categories. The second stage performs a ranking of cases and selects examples for the detailed case study. The third stage” applies the case study framework to understand the selected examples. Finally, the fourth stage comprises of learnings which can be helpful to pilot project application in Flemish cities.

Figure 1: Study process The following sections explain each stage in the study process in detail.

2.1 Exploration The exploration stage relies to a significant extent on cases collected from various sources. These sources include information observed in the different conferences joined and references collected by different members at the VIL and UAntwerp. These conferences include METRANS (held in October 2019 in the USA), Last-Mile Delivery in Urban Logistics (held in June 2019 in the UK), International Cargo Bike Festival (held in June 2019 in The Netherlands). We also explored academic papers which touched upon sustainable last-mile practices to understand various elements related to last-mile deliveries. We focused on cases and practices that have something more than the regular activity, e.g. deliveries with diesel vans. 11

R!sult – Best practices in last-mile deliveries

The exploration of cases in urban logistics required attention to various elements related to last-mile delivery. We derived different elements of last-mile delivery based on a literature review. These elements are distributed in the different project categories. These project categories are based on a study on Urban Logistics by the European Commission published in 2017. The study was published to support local policymakers for the preparation of NonBinding Guidance Documents (NGBD) on urban logistics. This report describes various topics related to urban freight. The consortium narrowed down to topics based on an extensive literature review of academic publications, reports on pilot projects and intense consultation with stakeholders. These stakeholders involved diverse members of the urban freight community from different countries in Europe. These topics were chosen based on the challenges and topics identified by stakeholders, input from DG MOVE, CIVITAS Advisory group on urban logistics and expertise of the consultants involved. The topics selected by this consortium have eventually become our project categories shown in table 1. The sub-division of the project categories into last-mile delivery concepts is also based on the topics identified in this study and expertise from VIL and UAntwerp. Table 1: Project categories and unique concepts Project categories Environment-friendly vehicles Infrastructure

Policy

Business Model Technological interventions

Last-mile delivery - unique concepts Electric vehicles, Cargo (e)bikes, CNG or Hydrogen-powered vehicles, etc. Micro hub, Consolidation and distribution centre, Storage, Logistics systems for e-commerce (Locker system), etc. Regulations, Delivery window, Vehicle access restrictions, Incentives, etc. Engagement of stakeholders. Loading-unloading and scanning support technologies, Infrastructure management systems, Data collection methods and management systems, Automation in handling and deliveries, Crowd shipping or app-based systems, Noise reduction technologies etc.

There were a total of 107 cases identified and collected in the first phase of the project. These cases are further distributed in five project categories so that it is easier to understand the main learnings from a wider perspective. The division of cases is based on the project categories and elements discussed in table 1. We kept updating and extending our list of

R!sult – Best practices in last-mile deliveries

cases via different resources until we had a diverse sample in each category. Figure 2 shows the number of cases identified in each category.

Figure 2: Category-wise case distribution

2.2 Selection We conducted a stage-wise selection process for identified cases. The selection criteria are based on study objectives and are focused on sustainable last-mile delivery practices. The selection of exemplary best practices was necessary to emphasis on category-wise learnings at the evaluation process. Selection of exemplary best practices was done in two stages. In the first stage, the sustainability indicators were developed to rank the cases along with a grouping of cases with common characteristics. The second stage was based on the detailed evaluation of cases selected in the first stage. The evaluation was done by members of VIL and UAntwerp. The stagewise selection of cases is explained below. First stage: Development of sustainability indicator and ranking of cases To filter from the list of 107 cases, we developed sustainability indicators based on the literature review. These indicators gave an overall view of the three sustainability aspects. These sustainability indicators are listed in table 2. Simultaneously, we also collected quick facts about all the cases to briefly understand what the case is about. At this stage, we had to leave 11 cases out due to a lack of information. Based on the sustainability indicators, we assessed and ranked the remaining 96 cases. The qualitative assessment and ranking were performed based on the availability of the information of all the cases.

R!sult – Best practices in last-mile deliveries

Table 2: Sustainability indicators Environment

Criteria • Energy efficiency

• Reduction in pollution

Economic

• Financial viability

• Competitiveness

Social

• Impact on customers and employees • Impact on community

Indicators • Reduction in energy consumption (transport and handling) • Life-cycle assessment (from construction and end-of-life phases) • Reduction in air pollution • Reduction in noise pollution • Reduction in water pollution • Operational effectiveness (transport and handling) • Short term costs • Return on investment (long term) • Market share (future-ready, the potential for growth, etc.) • Services (on-time, less failed deliveries, etc.) • Customer satisfaction • Employee satisfaction • Employment generation • Reduction in congestion • Improvement in relationships with local communities • Increase in safety (Reduction in accidents)

Source: Adapted from Gonzalez-Feliu (2017) and Sys, Vanelslander and Carlan (2017)

The diagram in figure 3 shows an example of scoring cases to process the initial filtration in the first stage. The ranking of cases with common characteristics is shown in the respective sections with a similar diagram along with a detailed description of best practice and onepager overview of remaining cases.

Figure 3: Diagram showing the ranking of cases

R!sult – Best practices in last-mile deliveries

We saw similarities in cases while scoring, e.g. bicycle couriers in different cities working with similar characteristics such as advertisement on tricycles. We grouped cases with similar operational characteristics. We came down to the list of 48 cases to study further. The formation of a group for each unique concept brings forth the second stage. For these cases, a limited description will be provided with reference to the most appropriate web links. Second stage: Formation of groups for each unique concept For the second stage assessment, we created an expert group with members from VIL and the UAntwerp. At this stage, we performed a more detailed examination of cases from secondary sources. This information helped us understand the operations of these cases in more detail. We made detailed observations of various characteristics of the 48 cases to further select best practices in each unique concept. At this stage, we narrowed down our focus to 13 best practices with unique concepts. A detailed investigation has been made for 10 best practices out of 13. Figure 4 shows unique concepts and best practices in each category.

Figure 4: Project categories, best practices and unique concepts

The selection of 13 exemplary cases was performed by the expert group considering the innovation involved to create a sustainable practice for last-mile deliveries. In the following chapters, 10 exemplary best practices out of 13 are explained in detail. Due to the Covid-19 pandemic, the detailed study of three best practices was not feasible. The overview of the remaining 38 cases will be explained through one-pager information to know the key innovation. Figure 5 shows a graphical representation of the stage-wise selection process.

R!sult – Best practices in last-mile deliveries

Figure 5: Second stage outcome After the exercise of going through details of these selected cases, we created a framework to understand the background, the business model and implementation experiences. The framework is explained in the next section.

2.3 Evaluation We selected a qualitative case study approach to understand the detailed operations of the best practices. Based on a series of European projects on urban logistics, we identified the fundamental project parameters to be analysed. These parameters were then grouped into six main project components, based on the business model canvas (Osterwalder et al. 2010). 1. General information and context 2. Partners 3. Implementation, operations and maintenance 4. Impact and value creation 5. Finances 6. Learnings and future plans Table 3 explains how various parameters considered in European projects helped derive the project components. The business model canvas is a useful tool to document and study existing operations, and to explain the current situation of the case. The two components concerning ‘general information and context’ and ‘the learnings and future plans’ were added in the framework of the business model canvas. Figure 6 shows how the case study framework comprises

R!sult – Best practices in last-mile deliveries

elements of the business model canvas. This framework enables the understanding of the detailed operations and context behind the exemplary best practices. It ensures a uniform and comparable data collection for all cases and in the end, create easy to understand learnings.

R!sult – Best practices in last-mile deliveries

Table 3: Case study components in various European projects on urban logistics

Sr. No

Case study components

General information and context 1

2 3

Partners Implementation, operations and maintenance

4 5 6

Impact and value creation Finances Learnings and future plans

Main parameters included in European projects

General information about the case City context Context / trigger/leverage point Policy details Contact Partners Institutional framework and governance Implementation details Operations and Maintenance Supporting mechanism Impacts / results Finances Difficulties / Barriers / Challenges / issues Key considerations and learnings

TURBLOG

C-LIEGE

CITYLOG

SUGAR

NOVELOG

CITYLAB

BESTFACT

(Transferability of Urban Logistics Concepts and Practices from a World Wide Perspective)

(Clean and energyefficient urban freight transport in European cities)

(Sustainabilit y and efficiency of city logistics)

(City logistics best practices – A handbook for authorities)

(New cooperative business models and guidance for sustainable city logistics)

(City Logistics in Living Laboratorie s)

(best practice factory for freight transport)

X X X

X X X X

X X

X X X

X X

X X X

X X

R!sult – Best practices in last-mile deliveries

The best practice(s) are studied in detail from various sources like; web articles, academic papers, semi-structured interviews, related studies and even the website of the practice. The data was used to fill nine blocks explained in the business model canvas and to understand the background and barriers faced during the implementation and operations of the selected cases.

Figure 6: Case study framework At this stage, we chose to eliminate the business model category. As the case study framework is based on the business model canvas, we look at the business model of all selected cases. The cases from the original business model category were redistributed over the other four categories. For example, the case of La Petite Reine shows a unique collaboration between stakeholders, which prompted us to consider the case from the business model perspective in the initial stage. In the process of re-distribution, we chose to consider La Petite Reine under the environment-friendly vehicle category because it uses cargo bikes for last-mile delivery with added value services (advertisements on their cargo bikes for various clients). This makes La Petite Reine equally important for the environmentfriendly vehicle category. Similarly, we redistributed six other cases which were previously considered under the business model category.

2.4 Observation A generic business model is explained to summarise the learnings from each category. Also, challenges and opportunities are observed from the stakeholders’ perspective and

R!sult – Best practices in last-mile deliveries

collectively summarise the study and facilitate to derive learning application for Flemish cities. We acknowledge the limitations of this study, especially in the selection process. We could not explore and identify every existing practice in last-mile delivery. The exploration, selection and sustainability ranking of cases are derived from an expert group’s observation. It may not comprise all potential cases and elements required for sustainable last-mile delivery. The detailed case study was performed for 10 cases out of 13 best practices selected due to limitations faced because of the Covid-19 pandemic. The next sections describe in-depth the best practices in each category. The detailed description follows the case study framework. It explains the background, operations and maintenance (O&M) details, implementation details and key learnings of the best practices. The next sections also include brief information of all other cases explored in the respective categories and concepts. The overview of other cases was referred from the secondary sources, mainly company website and web articles. It gives a wider perspective of different types of practices and ideas of innovative initiatives that exist in each category.

R!sult – Best practices in last-mile deliveries

3. Category: Environment-friendly vehicles In this category, practices with environment-friendly vehicles are explained. These are the practices operating vehicles that produce low amounts of or no harmful air pollutants. Most of the last mile innovations are focused on electric vehicles including cars, vans and cargo bikes. These vehicles are considered one of the most promising technical solutions to replace diesel vans in the context of urban logistics. Also, electric mobility is increasingly regarded as a solution to promote the sustainable development of the European Union (A report on Urban Logistics by the European Commission, 2017). The following concepts were identified related to the use of environment-friendly vehicles in urban logistics. 1. Deliveries with electric vans 2. Deliveries with cargo bikes 3. Reverse logistics with cargo bikes The descriptions of the best practices in each concept are given in the following section.

3.1 Deliveries with electric vans Electric vehicles are an energy-efficient alternative and can mitigate some of the problems caused by urban freight transport. Shifting inner-city distribution from conventionally-fuelled to electric vehicles helps to reduce emissions and noise. The advantages of electric vehicles are even more pronounced when switching to more efficient ways for the last-mile delivery of goods in city centres (Foltyński 2014). The sustainability score for this first concept is shown in figure 7. It is based on the following reasoning for the individual indicators. Environment indicator: The negligible noise levels of the vehicle, near to zero air pollution, also from the charging infrastructure as the electricity to charge the vehicle battery can be produced from the renewable sources Economic indicator: Environment-friendly vehicles often get tax reductions and subsidies but at the same time, it is often seen that the maintenance costs are higher, can save time if the vehicle size is smaller. The market and the technology are still in a developing phase, making the purchase cost high vs. a traditional van.

R!sult – Best practices in last-mile deliveries

Social indicator: The electric vehicles are silent and leave a positive impact on the neighbourhoods and in the city centre, employees often perceive it easy to ride compared to old diesel vans.

Figure 7: Sustainability indicator ranking for deliveries with electric vans

a) Best practice: Gnewt Cargo (London, UK) General information and background: Gnewt Cargo is a London-based delivery company founded in 2009. It has a fleet of one hundred fully electric vans and delivered over 2.6 million parcels in 2018. It has a micro hub in London and conducts the last-mile delivery from the micro hub with electric vehicles. In the micro hub, parcel operators (like Hermes and TNT) drop their parcels in bulk in off-peak hours and Gnewt Cargo then delivers those in a series of local rounds. Due to being electric, their vehicles are exempted from daily congestion charges. They do pay yearly a small fee to enter the congestion zone in London. This arrangement works efficiently both for parcel operators and Gnewt Cargo. Recently, Gnewt Cargo was acquired by Menzies Distribution. Together, they have the largest 100% electric vehicle fleet (as claimed by Menzies Distribution) to operate within and outside London’s Ultra Low Emissions Zone (ULEZ). They are planning to expand their services across the rest of the UK in the future.

R!sult – Best practices in last-mile deliveries

Partners: Gnewt Cargo– operates urban consolidation centres and fleet of electric vans for urban deliveries Menzies distribution – Major shareholder and investor Customer profiles of Gnewt Cargo include various courier, express and parcel (CEP) companies, e-commerce retailers and many local, national and international logistics partners such as Hermes. Implementation, operations and management: Initial operations started in the southeast of London and eventually expanded to Central London. In 2017, Gnewt Cargo was typically delivering 6-7,000 parcels a day, rising to 17-18,000 per day during the Christmas period. They started initial operations with eight electric-assisted cargo bikes bought from La Petite Reine (a company based in Paris who delivers goods with cargo bikes and is a cargo bike manufacturer) and one electric van. Currently, its fleet consists only of electric vans (refer figure 8). This results in a significant reduction in any fossil fuel consumption or GHG, as the electricity used is produced in-house from renewable sources.

Figure 8: Gnewt Cargo’s delivery vehicles

The micro consolidation centre is located approximately 5km outside the ULEZ, in Bow area in London (refer figure 9). It was born from initiatives taken by the city authority. Gnewt Cargo along with parcel operator Hermes received funding from the Greater London Authority to evaluate the role of micro hub concept in London. The switch from direct diesel van deliveries to micro consolidation of goods in combination with electric van deliveries resulted in a significant reduction in fuel usage and vehicle kilometres. Gnewt Cargo continued working from the micro hub after the pilot phase. Operating through the micro hub, Gnewt Cargo offers companies the opportunity to decrease the

R!sult – Best practices in last-mile deliveries

total CO2 equivalent (CO2e) emissions per parcel up to 54%. The concept of consolidation centre by Gnewt Cargo is shown in figure 10.

Figure 9: Location of micro consolidation centre of Gnewt Cargo in London

Figure 10: Urban consolidation centre concept by Gnewt Cargo Source: www.gnewt.co.uk

Impacts and value creation: Gnewt Cargo has set an example of successful commercial operation within a sustainability context. They demonstrated effective operations with a micro hub and environment-friendly vehicles. This combination facilitated operations in the ULEZ and congestion charging area in London. It gave other parcel distribution companies also an alternative to save resources and energy while maintaining a reliable service. Gnewt Cargo’s continuous innovation in the use of renewable sources and investment in vehicle technology also played a key role in developing its sustainable practice. 24

R!sult – Best practices in last-mile deliveries

Finances: Gnewt Cargo started its operations with a small fleet and gradually increased the business. The company majority self-funded since its commencement. Its interest in sustainable operations and innovation receives positive response from the city authority which created several funding opportunities, like evaluating the use of micro hub and continue its use. In 2018, Menzies distribution invested in Gnewt Cargo and became a major shareholder. Challenges and barriers: Once Gnewt Cargo established their services, it faced difficulties to deliver large consignments of high-volume or bulky goods. The tricycle used by Gnewt was an innovative vehicle at that time but took time to be accepted for road usage by the national road authorities. The main barrier in attracting new clients is that those have to change their established customer and delivery relationships. Future plans: Gnewt Cargo is planning to develop a system of coupling electric vans with porters and bike system. They aim to reduce parking time for vans with this system. It will also enhance accessibility by reaching every corner of the city. There was a successful pilot implemented in 2018 in the borough of Southwark and borough of the city of London. The porters walked 5 km to deliver their packages taking three hours and 40 minutes, each delivering two 140 litre bag loads. The results show a total round time reduction of 33%. More details on this pilot project can be found in the report on the Portering Trial TfL Consolidation Demonstrator project published by Gnewt Cargo and Freight Traffic Control. Source(s): • • • • • • •

BESTFACT. (2017). Best practice factory for freight transport. http://www.bestfact.net/best-practices/ Clarke, S. (2018, April). Postal hub Podcast Interview Clarke, S. and Leonardi. J. (2017, April). Final Report: Single-carrier consolidation Central London trial EO Charging powers Gnewt Cargo. (2019, February). retrieved from https://www.eocharging.com/case-studies/gnewt-cargo Parcel a porter (2018, March). Retrieved from https://postandparcel.info/94729/news/infrastructure/parcel-a-porter/ Portering – FTC2050 project (2018, May). Retrieved from http://www.ftc2050.com/portering/ www.gnewt.co.uk

R!sult – Best practices in last-mile deliveries

3.2 Deliveries with cargo bikes Cargo cycles can play a significant role in supplying urban distribution centres, helping to decrease harmful commercial transport externalities. Some companies have already carried out initial pilot schemes using cargo cycles to assess their technological and economic feasibility (Rudolph and Gruber, 2017). In this study, many practices of the cargo bike delivery concept are explored. Many of these cases concern companies that have adopted full-fledged cargo bike use for deliveries in urban areas. There are four variations observed in this concept. o

Cargo bikes with micro hub

Cargo bikes with value-added services

Cargo bikes combination with vans

Cargo bikes with trailers and bike messengers

While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: Non-polluting (noise and air) vehicles Economic indicator: Cheaper than the diesel car, the purchase of cargo bikes often eligible to tax reductions and subsidies, but the capacity is lower than traditional vans Social indicator: Increase interaction between other road users - including pedestrians leads to better safety, cargo bikes blend well in public space, the active mode of transportation for employees leads to better health

Figure 11: Sustainability indicator ranking for deliveries with electric vehicles

R!sult – Best practices in last-mile deliveries

Many bicycle couriers operate in many cities. Also, there are private logistics players like DHL, Hermes, UPS who have adopted deliveries with cargo bikes and tricycles in combination with vans to adopt environment-friendly deliveries. The annexure shows the list of all practices explored as part of the study.

a) Best practice: Zedify (London, UK) (deliveries with cargo bikes and micro hub) General information and background: Zedify was founded in June 2018 with the merger of Recharge Cargo and Outspoken delivery. It has a network of zero-emission delivery operations with depots in several cities in the UK namely; London, Cambridge, Brighton, Norwich, Waltham Forest and Glasgow. We looked at Zedify’s London operations as part of this study. They have a micro hub at the edge of the ULEZ in London. Their fleet consists of electrically-assisted cargo bikes and tricycles, as well as an electric van to support the bike fleet as mobile warehouses or for heavier and bulkier deliveries. Partners: Zedify – who operates cargo bikes and hire employees to ride the bikes. Infrastructure provider – the owner of a space rented by Zedify in Central London for the micro hub, one of Zedify’s client in this case Zedify has a range of customers such as local authorities (e.g. City of London), logistics carriers (e.g. TNT) and many local businesses. Implementation, operations and management: They deliver approximately 800 parcels in a day. It maintains a fleet of 20 cargo bikes and tricycles (refer figure 12) in their Hoxton micro consolidation centre (approx. 80-100 sqm) in London. The hub is located just outside London’s congestion charging zone/ULEZ (refer figure 13). It has one supervisor and 8-10 FTE for everyday operations. One rider completes two to three routes (within a two-mile radius) in a day with flexible timeslots. The employees perceive the arrangement of flexible timeslots favourable.

R!sult – Best practices in last-mile deliveries

Figure 12: Tricycles parked in micro consolidation centre in Hoxton

Advertisement on tricycles

Figure 13: Location of Zedify Hoxton depot and London’s ULEZ

A happy Zedify tricycle rider Figure 14: Zedify’s delivery fleet

They offer advertisement rights on the side panels of their tricycles as an additional revenue stream. Figure 14 shows the delivery fleet and advertisement panel on a tricycle. They are partnered with the technology company Skotkonung to provide end-toend tracking of deliveries and enable clients to book deliveries online as well as see the real-time delivery status. Though the focus of this case study is limited to Zedify’s London operations, their experiment with introducing a temporary micro hub – a container at the edge of a Science park in Cambridge - was an innovative move to mention. Their logistics partners drop parcels to the container in the morning and Zedify then uses cargo bikes for delivering 200 companies within the Science park premises. They found that the use of the container saved 12 miles a day in cycling distance, compared to cycling the goods from the depot. They use a similar concept in London by placing their electric van as a mobile warehouse on the streets in ULEZ which saves time resulting in increased efficiency. This also helps them in delivering bulkier and longer distance goods.

R!sult – Best practices in last-mile deliveries

Impacts and value creation: Zedify is committed to establishing themselves as a sustainable delivery alternative. Their bold step towards a fleet of cargo bike came with opportunities to serve the city centre with ease throughout the day without paying congestion charges. They offer advertisement rights on their tricycles, which creates value-added services. They let their employees choose flexible timeslots without competition with other riders. This arrangement has created a friendly environment within the company and it led to a positive societal impact along with the visible positive environmental impact. Finances: The regular cost of infrastructure (rent of Hoxton hub), utilities & services and operations and maintenance costs are borne by Zedify. However, they experimented with offering advertisement rights on their tricycles to have additional income. Challenges and barriers: To operate efficiently Zedify needed space for their micro hub in the city centre. It was challenging to find this space as real estate prices were high. They faced limitations in the volume of goods handling by cargo bikes. The company faces difficulties in upscaling and offering high-volume deliveries to retailers. Future plans: They are planning to create commercial and sustainable stability by exploring the opportunity to work with local authorities to get subsidies and acquire space for micro hubs in the city centre, which will eventually support to upscale the system. Source(s): • • •

Potential for e-cargo bikes to reduce congestion and pollution from vans in cities. (2019). Transport for Quality of Life Ltd and Bicycle Association King, R. (2019, December). Semi-structured interview https://www.zedify.co.uk/

R!sult – Best practices in last-mile deliveries

b) Best practice: La Petite Reine (Paris, France) (deliveries with cargo bikes with value-added services) General information and background: La Petite Reine was founded in 2001. The main objectives of La Petite Reine are to minimise congestion, reduction in environmental impacts while remaining economically viable. They have attempted to do this by using small and clean vehicles. They use electrically assisted tricycles with a load capacity of up to 180kgs. They manufactured their own tricycles to use it for deliveries. These vehicles run from a micro consolidation centre provided by the city of Paris, located in the city centre. La Petite Reine also started to innovate their revenue stream with value-added services like selling advertisement rights on their tricycles. In 2009, they were associated with ARES, the non-profit association for the professional insertion of people, in 2009 to strengthen their portfolio. In 2011, Star Service purchased 51% of the shares of La Petite Reine and became a major shareholder. Star service is a leading French company of home deliveries. La Petite Reine benefitted from Star Service’s existing business. Later, they also expanded their service to Bordeaux, Rouen, Dijon, Geneva, and Lyon. This case study is focused on its Paris operations. Partners: La Petite Reine – Developed the first Parisian micro consolidation centre together with the City of Paris to use tricycles for final deliveries in the city centre. This combination enabled La Petite Reine to transform their services from a bicycle courier company to a bicycle transport company which not only distributes goods but also collects parcels, consolidates streams and prepares routes. The city of Paris – who decided to develop the concept of micro consolidation centre(micro hub). It was one of the first cities that decided to use underground parking as a micro consolidation centre. They gave this space to La Petite Reine at a reduced price during the experimental phase of two years. Lovelo - the tricycle manufacturer, they have worked closely with La Petite Reine since the beginning of the service. It is now a subsidiary company of La Petite Reine. ARES, A non-profit association for the professional insertion of people – who supports an underprivileged group of people and get them connected with La Petite Reine’s workforce as a tricycle rider.

R!sult – Best practices in last-mile deliveries

Customers’ profile varies from CEP companies, e-commerce retailers and restaurants for fresh food delivery. Implementation, operations and management: La Petite Reine makes some 3,000 deliveries every day for clients including DHL, ColiPoste, Monoprix, Danone and more. It maintains a fleet of about 100 cargo tricycles for distributing goods. These bikes weigh only 80kg, which is significantly less compared to heavyweight delivery vans. Each cargo cycle can carry weight up to 180kg in its 1,400-litre cargo space which is approximately half of the van capacity. These cargo bikes can save 3 metric tons of CO2/cargo bike/year. La Petite Reine manufactures its cargo tricycles (through a subsidiary company Lovelo) and sells or rents them. It offers advertisement rights on the side and rear panels of their cargo bikes. Figure 1515 shows an example of the advertisement panel on a cargo bike.

In-house designed tricycle

Advertisement on tricycles

Figure 15: Environment-friendly vehicles by La Petite Reine

La Petite Reine has two micro hubs in the city of Paris and one consolidation centre at the edge of the ring road. La Petite Reine uses the consolidation centre at the edge of the city for receiving goods which are transported from other cities to Paris. The two micro hubs are used for distribution within the city. The locations of the two micro hubs are in the city centre. The first one is located in underground parking close to the Louvre museum (parking Saint Germain l'Auxerrois) since 2003. The second is in another underground parking (parking Saint Germain des Pres) on the left bank since 2010 (see Figure 16 16). These hubs approximately have a 500sqm area. The company has two supervisors and 15 full-time equivalent employees including drivers at their micro hubs.

R!sult – Best practices in last-mile deliveries

Micro hub location of La Petite Reine in Paris

La Petite Reine’s operational organization

Figure 16: La Petite Reine’s micro hubs

Impacts and value creation: La Petite Reine has created an example of sustainable deliveries in urban areas through their innovative practice. Collaboration with the city of Paris for the location of the micro hubs facilitated operations throughout the day in the start-up phase. Due to its environment-friendly and small size vehicles, it is convenient and fast to access the city centre during and outside of peak hours. It creates value-added services by offering advertisement rights on its tricycles. It also manufactures its own vehicles and give them for rent or sell. These value-added services provided an extra revenue stream other than deliveries. Its association with ARES aided the professional integration of the underprivileged. La Petite Reine created a sustainable system where there are environmental benefits of using cargo bikes for deliveries while innovative institutional arrangements led to creating positive societal impact. Finances: The subsidy from the city of Paris helped La Petite Reine establish the distribution system at the beginning of the project. Its association with other financially stronger entities like Start Service enabled the development of a commercially sustainable system. It remains however unclear what share of the revenues comes from advertisements and the renting and selling of cargo bikes. Challenges and barriers: After a few years of operations, La Petite Reine faced major competition from other small independent truck companies acting as subcontractors for the major express transport companies and lost majority express delivery business. La Petite Reine eventually got

R!sult – Best practices in last-mile deliveries

higher volumes again because of their social integration program with ARES. Their new collaboration helped to win the tender to get space for a micro consolidation centre from the City of Paris for the second time. The second micro consolidation centre supported to maintain the increased volume. Delivery activities are limited due to size constraints. The maximum load one courier can take is 180kg. There are issues with the rapid deterioration of the wheels of cargo cycles, generated by the heavy loads which led to an increase in maintenance costs. Future plans: The subsidiary company Lovelo and La Petite Reine are looking for technical improvements for the cargo cycles to decrease maintenance costs, especially on the wheels. Source(s): • • •

• •

BESTFACT. (2017). Best practice factory for freight transport. http://www.bestfact.net/best-practices/ Heitz, A. (2020, April). Semi-structured interview Macário, R., Rodrigues, M., Gama, A., Timms, P., Lama, C., Amaral, M., Schoemaker, J., Tromp, N., Quinn, D., Abranches, G. (2011). “Handbook on Urban Logistics” -TURBLOG_ww, Transferability of urban logistics concepts and practices from a worldwide perspective SUGAR. (2019, July). City logistics best practices – A handbook for authorities http://lapetitereine.com/

R!sult – Best practices in last-mile deliveries

c) Other cases Case 1: Pedal & Post (Oxford, UK) Last-mile delivery feature: Deliveries Status: Operational with cargo bike with micro hub General information: Pedal & Post is a delivery service in Oxford, UK. Operations and management: Pedal & Post offers planned and last-mile deliveries with cargo bikes and tricycles. Their services include secure document exchange, Royal Mail collection, medical deliveries and even multi-drop deliveries. Along with deliveries with cargo bikes, Pedal and Post offers storage facilities in shipping containers. These containers provide a secure, condensation-free outdoor storage option. Other information: Deliveries with cargo bike and tricycles have replaced several vans from the road and create better proximity with customers

Sources and weblinks: http://www.pedalandpost.co.uk/, http://www.pedalandpost.co.uk/pedal-post-prouldy-supporting-the-zero-emission-zone/, http://www.pedalandpost.co.uk/pedal-post-introduces-e-trike-into-our-courier-fleet/

R!sult – Best practices in last-mile deliveries

Case 2: Bubble Post (Belgium) Last-mile delivery feature: Deliveries with Status: Not in operation cargo bike (also temperature controlled) General information: Bubble Post was founded in 2012. They offered first and last-mile delivery. Bubble post had a wide experience with food wholesalers and delivery of prepared meals and lunch boxes. In August 2017, Bubble Post announced its acquisition by bpost. This deal was beneficial to both companies as Bubble Post was actively looking for a strategic partner and bpost wishes to expand in environment-friendly delivery services. bpost also enriched its hybrid network with Bubble Post’s expertise regarding cold and refrigerated transport. Operations and management: Bubble Post used cargo bikes for delivering goods. They were able to target niche markets with temperature-controlled cargo. Bubble post offered temperature-controlled deliveries. Dry, cold and refrigerated goods were consolidated at the city rim and distributed into the city centre with small and fast ecological vehicles. The goods were delivered through a tricycle with temperaturecontrolled box (see photo below right). Bubble Post reduced the environmental, human and economic cost of the last-mile. The use of cargo bikes replaced bpost’s vans. Other information: --

Sources and weblinks: https://www.bloovi.be/artikels/ondernemen/2019/medeoprichterbubble-post-over-de-nieuwe-plannen-je-wil-enkel-mensen-aanwerven-die-samen-met-jouimpact-willen-maken, http://www.si2fund.com/bpost-signs-a-deal-with-bubble-post/

R!sult – Best practices in last-mile deliveries

Case 3: Dropper (Groningen, Netherlands) Last-mile delivery feature: Deliveries Status: Operational with cargo bikes General information: Dropper was founded in 2016 and began with food deliveries by the name FoodDrop in Groningen. The founder had knowledge about healthy eating, which became the connection between restaurants and food delivery system development. Operations and management: Dropper initially delivered PostNL parcels in the city centre of Groningen. They recently (2019) announced a partnership with PostNL (the Dutch post office) to deliver postal packages by bike in the whole city of Groningen. This development has given more volumes to Dropper, allowing them to rise above start-up level to a full-fledged bike courier. The move also goes hand in hand with the city of Groningen and PostNL’s goal to achieve emission-free city logistics by 2025. Other information: The bikes, cargo bikes and trailers used by Dropper will directly replace the PostNL delivery vans in Groningen’s narrow, historic streets.

Sources and weblinks: https://www.dropper.nl/, https://www.logistiek.nl/distributie/nieuws/2019/06/postnl-in-zee-met-dropper-voorpakketbezorging-in-groningen-101168494?_ga=2.110621125.1534733500.159227584953831457.1591178845, https://www.rippl.bike/rippl/rippl-52-dropper-dropping-it-like-itshot/

R!sult – Best practices in last-mile deliveries

Case 4: Loreal - Proximus case (Brussels, Belgium) Last-mile delivery feature: Deliveries with cargo Status: Pilot running (Pilot bike and trailers commenced in 2019) General information: The two retailers L’Oréal and Proximus wanted to reduce the ecological footprint of their last-mile operations. In the second half of 2019, the two companies have started a pilot phase in Brussels, which allows deliveries to be made to hair salons and Proximus sales outlets by electric cargo bikes. Operations and management: Cargo Velo, a cargo bike delivery carrier, has been delivering products of the L'Oréal Professional Products Division to 130 Brussels hair salons, along with telecom products to Proximus' sales outlets in the city centre. The pilot project aims to assess the potential operational viability of a partnership between two large retailers for the organization of their urban deliveries. All orders are gathered in the Proximus warehouse in Anderlecht before being transported to their final destination by electric cargo bike. It is estimated that in the first year, the number of deliveries performed in this way will be about 15,000, equally divided between the two companies. This is an example of companies operating in different sectors uniting to fulfil their commitment to reducing their CO2 footprint. Other information: The MOBI research group of the Vrij University Brussels (VUB) will study the data from the pilot project and assess whether it is feasible to increase the volumes by expanding this initiative. The potential to extend the initiative to other cities will also be examined, along with the possibility of extending this project to other partners in the retail sector.

Sources and weblinks: https://www.proximus.com/news/proximus-and-loreal-partner-upfor-the-delivery-of-telecom-and-hair-salon-products-by-electric-bicycle.html

R!sult – Best practices in last-mile deliveries

Case 5: Urban Cargo (Berlin, Germany) Last-mile delivery feature: Deliveries Status: Operational with cargo bike and trailers General information: Urban Cargo is a logistics provider that does CO2-free deliveries with light electric vehicles and cargo bikes. Operations and management: The light electric vehicle TRIPL (see images below) is designed in Denmark for Urban Cargo. It has a loading space of 750 litres. The design of TRIPL gives the rider a clear view in the front which increases safety. They also have cargo bikes in their fleet. Cargo bikes have a loading capacity of 250 litres. All vehicles have secured electronic locks which can be operated from the top of the vehicle for easy loading-unloading of packages. Urban Cargo offers its vehicle fleet for rent also. Other information: In December 2017, Urban cargo received an award of the “European Transport Prize for Sustainability” in the category of CEP services. The decisive factor of the jury was the consistent use of an innovative, emission-free vehicle fleet of urban cargo.

Sources and weblinks: https://www.urbancargo.de/index.html, https://www.urbancargo.de/fotos.html, https://bdkep.de/bdkep-blog/details/urban-cargo-istpreistr%c3%a4ger-des-europ%c3%a4ischen-transportpreises-f%c3%bcr-nachhaltigkeit2018.html

R!sult – Best practices in last-mile deliveries

Case 6: Dabbawala (Mumbai, India) Last-mile delivery feature: Deliveries Status: Operational with bikes General information: The Dabbawala is a food delivery system that operates in Mumbai since 1890. “Dabbawala” literally means a man who carries the tiffin (a British English word for Lunch box or any meal box). The tiffins are picked up before lunchtime, delivered at workplaces and returned empty after lunch hours. The commercial meal suppliers also use this system for delivering their readymade lunches. Operations and management: The pickup and return of all tiffin boxes are done on manual bikes and local trains. The Dabbawala system is one of the oldest tiffin services in the world. A study by Forbes magazine showed that there is only one mistake in 8 million deliveries each day despite a complete manual and unique system to mark tiffin boxes. This system includes; 1. Abbreviations for collection points 2. Colour code for starting station and the number for the destination station 3. Markings for handling dabbawala at the destination, including building and floor markings A colour-coding system identifies the destination and the recipient. They follow a peculiar dress code (white cotton kurta-pyjamas, and the white Gandhi cap) which act as a brand identity for the Dabbawalas. Other information: Dabbawala is a classic example of need-based innovation. This system can be considered a very sustainable service because it uses bikes (image on the left) for short distances and wooden crates in local trains (image on the right) for longer distances. The tiffins are returned every day to reuse the next day, limiting the packaging waste. The system does not use any technical intervention to manage 8 million deliveries every day. They also plan to enter in CEP deliveries in future with technical intervention.

Photo: https://economictimes.indiatimes.com/news/politicsand-nation/dabbawalas-to-deliver-couriers-parcelssoon/articleshow/64205519.cms

Photo: Shivji Joshi/Dinodhiya (https://www.agefotostock.com/age/en/StockImages/indian-dabbawala-dabbawalla.html)

Sources and weblinks: https://mumbaidabbawala.in/, http://specials.rediff.com/money/2005/nov/11spec.htm, http://www.boldtalks.com/en/speaker/speakers/error-rate-of-1-in-16-million-the-case-ofthe-mumbai-dabbawala.html

R!sult – Best practices in last-mile deliveries

Case 7: Pling Transport (Gothenburg, Sweden) Last-mile delivery feature: Deliveries Status: Operational with cargo bikes, and containerisation General information: Pling transport has been operating in Gothenburg since 2012. They carry goods by cargo bikes, which are designed and manufactured in-house by a sister company Velove. Velove manufactures cargo bike called “Armadillo” and developed a system of containerization, which is popular among logistics players worldwide such as DHL Express and DB Schenker. Operations and management: Pling transport currently delivers parcels in Gothenburg city for various retailers. It does last-mile deliveries for other logistics players. The company has a micro hub in one of the parking areas of a shopping mall called Noordstan located in the city centre. The design of cargo bike for logistics purposes is a key feature of Pling Transport. Its bikes can take up to two cubic meters and 200 kg. The bikes have electric assistance and a place to keep a spare battery. It also has advanced suspension so that sensitive goods (fragile parcels, food, flowers etc.) will be safe after passing uneven surfaces like tram tracks and curbs. The width of the bike is suitable for current bicycle lane widths. They have recently introduced Armadillo with an extra container to add more capacity. Its containerization system is designed in such a way that the container can be replaced entirely at the logistics facility to save the sorting time between the trips. It also makes a transfer of goods efficient and secure from a bigger vehicle to the cargo bike for last-mile delivery if standardized everywhere. Other information: Pling is an employee-owned company. They have created community and member benefit as the sole purpose rather than generating profit to a few owners.

Sources and weblinks: http://plingtransport.se/om-oss, https://www.rippl.bike/en/rippl-27velove-and-pling-transport-pedal-powered-logistics-exactly-how-energy-efficient/, https://www.velove.se/, https://www.velove.se/news/containerisation-can-replace-evenvans-cargo-bikes

R!sult – Best practices in last-mile deliveries

Case 8: Cargo Velo (Ghent, Belgium) Last-mile delivery feature: Deliveries Status: Operational with cargo bike and trailers General information: Cargo Velo started its operations in 2016. Initially, it operated only as bike messengers and since 2016 they introduced cargo bike fleet for entering into last-mile deliveries. The founder has a strong commitment to sustainable mobility which is one of the motivations behind commencing this service. Operations and management: Cargo Velo has a fleet of more than 10 cargo bikes for its operations. Its bikes carry shipments weighing up to 120 kilos. They attach a trailer if there are more volumes to be delivered. It operates from a micro consolidation centre located at the edge of the city centre of Ghent. It uses the consolidation centre not only for handling goods but also for bike parking and bike maintenance work. Cargo Velo had invested in software for routing and dispatching activities as it foresees explosive growth in last-mile deliveries with cargo bikes because of the introduction of Low Emission Zone in various cities. It also operates last-mile deliveries in Antwerp. It is also involved with a pilot project (started in 2019) in Brussels where they do last-mile deliveries for two different retailers in the city centre. Other information: It expects ambitious growth through their practical experience and expected financial feasibility for the company for the future.

Sources and weblinks: https://cargovelo.be/nl, https://www.flows.be/nl/peoplejobs/cargo-velo-mobiliteitsuitdagingen-antwerpen-groter-dan-gent,

R!sult – Best practices in last-mile deliveries

Case 9: De fietskoerier (Cities in Belgium and Netherlands) Last-mile delivery feature: Deliveries Status: Operational with cargo bikes and bike messengers General information: De fietskoerier operates in several cities in the Netherlands and Belgium. Typically, a person delivers small goods such as letters and small packages by bike. The operational area for this kind of service is dense urban areas. Generally, the courier is flexible and can be made available within an hour. Operations and management: De fietskoerier is often a fast, cheap and environmentally friendly alternative to the car courier. Fietskoerier operates with a different number of employees in different cities, e.g. De fietskoerier Utrecht consists of a team of more than 20 people. It is also observed that sometimes bike messengers use cars or vans as their mobile consolidation centre to save time. Other information: There are many bicycle courier operates in many cities. Some of them are listed in the annexure at the end of this booklet for reference.

Sources and weblinks: https://www.metronieuws.nl/in-hetnieuws/binnenland/2016/01/de-fietskoerier-gaat-hard/, http://www.fietskoerier.nl/#header, https://www.defietskoerier.be/

R!sult – Best practices in last-mile deliveries

Case 10: Royal Mail (UK) Last-mile delivery feature: Deliveries with Cargo bikes Status: Pilot completed, expansion under discussion combination with vans General information: Royal Mail is a British postal company. Traditionally, they have vans to deliver the daily volume. The current awareness of environmental issues together with some of London’s policy initiatives like the ULEZ encouraged Royal mail to step forward and experiment with the introduction of bikes in their fleet. Operations and management: Royal Mail started its first trial of zero-emission electric tricycles for letter and parcel deliveries in March 2019. The 1200mm wide x 1968mm high electric tricycles are specially designed to help postmen and women deliver letters and parcels in a safe and environment-friendly way. The tricycles can accommodate letters, cards and the majority of parcels, and are designed for use on roads and cycle paths. As part of the pilot phase, deliveries on the electric tricycles are operating as part of a usual delivery pattern on predetermined routes. Special delivery arrangements are made for larger parcels and deliveries to operate during peak hours. They experimented in areas like Stratford, Cambridge and Sutton Coldfield and continued for six months as part of the pilot project. The decision of its expansion is still under discussion. Other information: The private service players like DHL, Hermes, UPS have adopted deliveries with cargo bikes and tricycles in combination with vans to adopt environment-friendly deliveries. The list of similar practices can be found in the annexure.

Sources and weblinks: https://www.royalmail.com/, https://www.bikebiz.com/royal-mailto-trial-e-tricycles-for-letter-and-parcel-deliveries/

R!sult – Best practices in last-mile deliveries

3.3 Reverse logistics with cargo bikes Replacing traditional vehicles used by municipal organizations for reverse logistics with environment-friendly vehicles is a lesser-explored option by cities. There is only one case study available which explains this concept in detail. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: Non-polluting (noise and air), vehicles use renewable sources for energy Economic indicator: Cheaper than other large vehicles used for reverse logistics and cleaning services, but the capacity is much less than vehicles normally used for trash collection, and maintenance is challenging. Social indicator: Increase interaction between other road users including pedestrian leads to better safety, blends well in public spaces, active mode of transportation for employees leads to better health and creates a unique identity for the city.

Figure 17: Sustainability indicator ranking for reverse logistics with cargo bikes

The detailed description of the best practice is given in the following section.

R!sult – Best practices in last-mile deliveries

a) Best practices: TRASHH (Hamburg, Germany) General information and background: The TRASHH project was planned as a three-year (2016-2019) pilot project. It is extended until September 2020. It was implemented by Stadtreinigung, the organization responsible for cleaning services in Hamburg. The aim of the pilot project is to explore the feasibility of using cargo bikes in reverse logistics, i.e. garbage collection and cleaning services. This project was funded under the National Cycling Plan (NCP) to promote sustainable practices in public services. The German Aerospace Centre (Deutsches Zentrum fur Luft und Raumfahrt - DLR) is a partner to study and analyse the economic efficiency of the pilot project. After the pilot phase and its study, they aim to share the results of this with other German municipalities so that they can adapt the practice based on their need. Partners: Stadtreinigung (SRH) – the organization responsible for cleaning services in Hamburg, implemented the pilot project of cleaning services with e-cargo bikes German Aerospace Centre (Deutsches Zentrum fur Luft und Raumfahrt (DLR) – monitoring the pilot and quantifying the impacts Implementation, operations and management: SRH, being the sole organization in Hamburg responsible for cleaning services, has 700 vehicles and 2,600 employees for various cleaning activities. A team from DLR started an initial study to identify which of SRH’s operations could be carried out in combination with cargo bikes (see figure 18). For example, whilst collections of bulky waste such as furniture were deemed out of scope, street cleaning was found to be potentially suitable and was put forward for the trial phase. They found 12 out of 23 work processes have a high potential for operations with cargo bikes. In total, 62 platform trucks could be replaced. Below are some examples of potential activities to be conducted by the cargo biker drivers. - City Cleaner: Street cleaning services in sensitive areas, such as the central business district, NeuerWall, HafenCity - District caretaker: Specialized cleaning services in areas with higher cleaning needs (e.g. subway stations) - Instant cleaning: Removal of illegally dumped waste in cooperation with the waste watcher team - Special cleaning services: Removal of illegally dumped waste reported through SRH hotline - Public space cleaning: Emptying of trash bins and cleaning of green areas and playgrounds

R!sult – Best practices in last-mile deliveries

Figure 18: Tailor-made cargo bikes for TRASHH

R!sult – Best practices in last-mile deliveries

Location of SRH depot centres in Hamburg with 5km radius

Principle of last-mile consolidation centres for waste

Figure 19: a multi-modal solution with last-mile consolidation centres for waste (prepared by DLR)

Seven cargo bikes for waste cleaning and collection services were ordered for this pilot project. A manufacturer from Berlin was identified to supply the cargo bikes. The bikes were modified so that they could carry different cleaning and waste collection material such as garbage bins, broom, etc. The maximum capacity of the bikes ranges from 50 kg to 400kg of garbage. It was also required that the bike can run up to 80km to finish the eight-hour cleaning shift. The service area covered is within a 5km radius of each SRH depot (see figure 19) from where respective cargo bike trips start and end. SRH already had 100+ evehicles to support the waste collection system and produced green energy to charge those vehicles. They charge the batteries of the cargo bikes from the same green energy produced in-house. DLR also looked at the issue of transferring the waste from the bike to SRH depots. A multimodal solution with last-mile consolidation centres for waste was introduced. SRH employees can drop-off waste by bike locally at on-street storage containers which are later collected by a truck. Impacts and value creation: The TRASHH project created the possibility for many cities to employ a sustainable practice in public services. This project gave SRH and DLR high visibility and publicity for putting forth a unique practice. By biking, the SRH employees could get in frequent contact with the citizens, which increased their social presence and generated positive feedback. The bikes have been contributing to noise and environment protection, especially in public spaces, playgrounds and parks. The research by DLR to assess the economic performance of the system is still ongoing.

R!sult – Best practices in last-mile deliveries

Finances: The project was funded for 50% by the German Federal Ministry of Transport and Digital Infrastructure within the National Cycling Plan 2020 and was implemented in cooperation with the German Aerospace Centre’s (DLR) Institute of Transport Research. The SRH invested itself the other 50% funds for the pilot project. It has extended the pilot till September 2020 and is looking to continue at other strategic locations for the cleaning practices with e-cargo bikes. Challenges and barriers: It was a difficult task for SRH to find the appropriate cargo bike for waste collection and cleaning services as it has to accommodate the different tools. Moreover, SRH experimented with different types of cargo bikes, facing differences in performance. SRH and DLR found difficulties in changing the system and employee behaviour during this pilot project since the culture has always involved using vans or other bigger vehicles. Future plans: The study by DLR is based on the data monitored during the last three years and is still ongoing. SRH has plans for its commercial implementation in the future (Oct 2020 onwards). SRH is looking for a local bike producer so that bike maintenance and modification can be carried out locally. They are also looking for better battery performance in the future. To continue the eight-hour shifts during winter while maintaining the employee’s comfort the DLR team is now looking at cargo bikes with closed cabins. Source(s): • • • • •

Charlotte, V., Rudolph, C., and Schäfer, L. (2018). TRASHH [presentation]. European Cycle Logistics Federation conference, Vienna, Austria Parr, T. (2017, October). Keeping it clean – Hamburg street cleaners trial switch to etrikes, retrieved from https://www.rippl.bike/en/rippl-35-keeping-it-clean-hamburgstreet-cleaners-trial-switch-to-e-trikes/ Peters, B. (2020, April). Semi-structured interview Peters, B. TRASHH project of Stadtreinigung, Hamburg. [presentation] TRASHH - Possible uses of cargo bikes in municipal companies. Retrieved from https://nationaler-radverkehrsplan.de/de/praxis/einsatzmoeglichkeiten-vonlastenraedern-kommunalen

R!sult – Best practices in last-mile deliveries

3.4 Summary One of the major issues of urban goods distribution is dealing with externalities such as noise, congestion, air pollution and GHG emissions. Many cities are developing sustainable mobility plans to strengthen the transport sector to address these externalities. The use of environment-friendly vehicles can help meet emission reduction objectives addressed in these plans. These environment-friendly vehicles are convenient and fast to access city centres during peak hours. Some of the best practices mentioned in this report have additional innovative concepts such as selling the advertisement rights on their delivery vehicles. This kind of value-added service has the potential to create a consistent revenue stream to aid the financial setup for the operator or to sustain the system in the longer term. Cases like Gnewt Cargo and La Petite Reine have demonstrated effective operations with urban consolidation centres or micro hubs in combination with environment-friendly vehicles. The cases that focus on the environment-friendly vehicle component have clear benefits of improving customer proximity and reducing externalities. They also lead to timely and streamlined deliveries in dense areas. Delivery activities may seem limited due to size constraints especially of cargo bikes, but the innovative use of micro hubs and strategically chosen location can lead to creating an efficient system. The appropriate choice of environment-friendly vehicles for the type of goods can also enhance efficiency. They face issues in planning for charging facilities in consolidation centres as these charging facilities have a different configuration than regular charging. It is also challenging to maintain a vehicle as the conventional maintenance system doesn’t include these vehicles which often leads to additional hidden costs. It is important to consider the maintenance costs of such operations, preferably by closely cooperating with a dedicated cargo bike expert. It is often difficult to change employee behaviour when changing vehicles for deliveries or reverse logistics. The social appreciation and branding works as an incentive and encourages the positive behavioural changes within the organization. Often, operating in niche markets attract investments by bigger companies. Using environment-friendly vehicles, the operators receive support from the city authority like access to broader time windows, tax reduction or infrastructure at a lower price. Following the case study structure, the different possibilities for the various components of the business model are listed below. Figure 20 shows a generic business model for the environment-friendly vehicles category, where all possibilities of stakeholders, various aspects related to implementation, operations and maintenance, finances, and impacts and value creation are listed.

R!sult – Best practices in last-mile deliveries

Partners In this segment, various stakeholders involved in realizing cases with environment-friendly vehicles are listed. Generally, the initiatives are prompted by the city’s goal or individual company’s goal of reducing GHG emissions. Practices with environment-friendly vehicles often required extra financial and technical support to function efficiently. Below listed are the possibilities of different stakeholders associated with this category. • Distribution partner (In-house or third party agency) – for performing last-mile deliveries • Cargo Bike supplier/manufacturer and maintenance – for acquiring vehicle fleet • Infrastructure provider – for providing space for everyday operations • Delivery management software supplier – for providing tracking facilities • Research institute – for studying the impact • NGOs/association for social and economic integration – for promoting employment for less privileged • Government authorities (Local, state and federal) – for funding opportunities and supporting the work publicly

Figure 20: Generic business model for cases of environment-friendly vehicles

Implementation, operations and management In this segment, various tasks required to perform every day are listed. There is the principle work of distributing goods with these vehicles, but also many supporting tasks are required to perform and function efficiently. Below listed are the tasks associated with the environment-friendly category. Principle work

R!sult – Best practices in last-mile deliveries

• Distributing goods • Cross-docking • Last-mile delivery • Vehicle parking and maintenance • Vehicle charging Resources • Human resources (riders, back office, admin) • Office resources (stationary, computers, scanning devices etc) Communication • Communication channels • Tracking facilities • Delivery management software Value-added services • Advertisement on vehicles • Bike manufacturing, selling and renting Impacts and value creation In this segment, different kinds of impact were observed when using environment-friendly vehicles. Below listed are some of the areas where these vehicles leave a positive impact. Economic: • Ease of operations and routing less expensive than contemporary vans • Exemption to enter in low emission zones without any charges • Gets tax benefits and subsidies • Capacity can be limited, e.g. cargo bikes, compared to vans but suitable for parcels and small volumes for deliveries • Possibilities of using the vehicle itself for value-added services like advertisements Environmental: • Non-polluting (noise and air) vehicles • Lightweight and reduced size of these vehicles results in lower damage on the transport infrastructure Social: • Low visual intrusion, reduced size and positive visual identity, blends well in public spaces • Active mobility leads to better health for employees Finances In this segment, different expenditure and revenue possibilities are listed. Apart from the obvious expenditures and revenue streams, the additional revenues from value-added services can support the finances. Outgoing: • Cost of infrastructure, utilities & services

R!sult – Best practices in last-mile deliveries

• Operations and Maintenance cost (O&M includes; the cost of last-mile delivery & vehicle maintenance, staff salaries, utility costs and other administrative costs) • Cost of delivery software Incoming: • Delivery service revenue • Revenue from value-added services e.g. advertisement, bike rental or sell

R!sult – Best practices in last-mile deliveries

4. Category: Infrastructure In this category, practices with prominent use of infrastructure facilities are explained. The study focuses on different facilities that support to achieve a more sustainable urban logistics practice. The following concepts were identified related to logistics infrastructures in urban distribution. 1. Micro hub with multiple or single carriers 2. Storage and consolidation 3. Click and collect points (Locker system / Pick Up-Drop Off points) The next sections list for every concept (a) its best practice and (b) the remaining other cases.

4.1 Micro hub with multiple or single carriers A network of micro hubs for last-mile deliveries has the potential to reduce truck and van trips and kilometres travelled, hence alleviating congestion in urban areas (Browne et al., 2011). There were several practices explored which use a micro hub for the last-mile delivery. The commercially established micro hubs are generally seen as single carrier micro hubs where an individual company operates from. We saw examples of La Petite Reine and Zedify in the previous category where both logistics players have their own micro hubs. In this section, we explore micro hubs used by multiple logistics players. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: The location of a micro hub can reduce vehicle km which eventually reduces air pollution. Economic indicator: The cost of locations in the dense urban areas can be shared which can be profitable for logistics players. It also enables the use of environmentfriendly vehicles for last-mile deliveries. Social indicator: The location can act as an urban node which is accessible for other essential amenities and become a central place within the neighbourhood.

R!sult – Best practices in last-mile deliveries

Figure 21: Sustainability indicator ranking for a micro hub with multiple carriers The detailed description of the best practice(s) and a brief description of other cases are given in the following sections.

a) Best Practice: KoMoDo (Berlin, Germany) General information and background: KoMoDo (Kooperative Nutzung von Mikrodepots) is a pilot project initiated in 2018 in which the five largest national service providers (DHL, DPD, GLS, Hermes and UPS) came under one roof. The pilot project was planned for one year but is already extended for another year. The focus is on the sustainability of last-mile parcel deliveries by cargo bikes from a shared micro hub. BEHALA (a Port and Warehouse Authority in Berlin) has set up a micro hub consisting of seven sea containers in the Prenzlauer Berg area in Berlin. Each of these containers forms a micro hub for an individual service provider. All project partners can use this system individually and there is a possibility to integrate their route planning. Currently, they do not integrate their routes. Each company uses a container as a central collection and distribution point. In the morning, the shipments arrive by van for each company individually and are stored in the corresponding container. During the day, the parcels are delivered in the vicinity by the company’s cargo bike or by a third party bike courier. Since the start of the project, these companies are delivering parcels in a climate-neutral manner.

R!sult – Best practices in last-mile deliveries

Partners: There are two principal partners involved in realizing this project and many other partners participated to conceptualize the idea of the shared micro hub. All the five service providers (DHL, DPD, GLS, Hermes and UPS) were also involved from the conceptualization to implementation of the pilot project. BEHALA (Berliner Hafen- und Lagerhausgesellschaft GmbH) – a Port and Warehouse Authority in Berlin, is an operator for this project and acts as a neutral partner. It operates the micro depot location and provided containers for the micro hub. LNC LogisticNetwork Consultants GmbH – coordinates the project in all phases. Also, the Senate Department for Environment, Transport and Climate Protection Berlin, the Federal Association of Courier-Express-Post-Dienste eV, the Federal Association of German Postal Service Providers eV, the Federal Association of Parcel and Express Logistics eV and the German Institute for Standardization eV support the KoMoDo project are involved. The involvement of these partners should ensure that the requirements and concerns of the entire industry are taken into account. Implementation, operations and management: The project partners chose to have a temporary structure created with a minimalist approach but with all required utilities. The micro hub should be a secure place for the storage of parcels. The chosen location used to be a car park. Each company uses a 20’ container as a central collection and distribution point. There are in total 11 cargo bikes used per day by the different service providers. Each bike normally covers a 2-3 km radius from the location of the micro hub based on their delivery route and schedule.

Figure 22: Location of KoMoDo micro hub

R!sult – Best practices in last-mile deliveries

Figure 23: Container arrangement at KoMoDo

Figure 22 shows the location, area of a micro hub and shows the vehicle movements. The containers are equipped with charging facilities. The micro hub covers an area of 1200 sqm approximately. The total of seven containers is placed to maximize the space in the front. This facilitates for each member the handling of their shipments on bikes. The space between two containers is covered with a temporary structure to create an enclosed area keeping the shipments safe in the rain. These details are shown in figure 23. The logistics service providers are responsible for bringing other required resources as per their need except for electricity. There is a common toilet facility available for riders. They can choose to park their bikes overnight inside the container. The KoMoDo premise is secured and considered a private premise where trespassing is not possible, to ensure the security of the shipments. Impacts and value creation: This project demonstrates the possibility of a collaborative model in urban logistics, operating last-mile deliveries from a micro hub. It encourages companies to practice sustainable processes on a daily basis. After completion of the first year, the project partners recorded noticeable results from this project: -

Approximately 11 ton CO2 saved

28,000 km vehicle km driven saved 56

R!sult – Best practices in last-mile deliveries

More than 38,000 km covered by cargo bikes

160,000 parcels delivered

Finances: KoMoDo micro hub pilot project is funded by the National Climate Protection Initiative of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. The regular expenses related to all delivery operations are borne by the participating companies based on their respective business. Challenges and barriers: The biggest challenge for the coordinator was to bring all project partners under one roof. The discussions went on for two years. Considering project funding, it was difficult to decide the minimum level of infrastructure provision while maintaining a sufficient security level. Unavailability of bicycle infrastructure in Berlin at places often encouraged riders to ride the bike on the footpath. This caused a new type of externality not present before. Future plans: Following the success of the pilot project, three to five new city hubs are planned to open in Berlin in the coming years. The project partners saw visible benefits of the project and are exploring avenues to improve the commercial sustainability of the business model. Source(s): • • • •

Crowd, J. (2019, September). Semi-structured interview Erlandsson, J. (2018, June 3). Big step forward for cyclelogistics in the Berlin KoMoDo project. Retrieved from https://www.velove.se/news/big-step-forward-forcyclelogistics-in-the-berlin-komodo-project KoMoDo – Lieferverkehr nachhaltig gestalten. Retrieved from https://www.behala.de/komodo-lieferverkehr-mit-lastenraedern-nachhaltig-gestalten/ https://www.komodo.berlin/

R!sult – Best practices in last-mile deliveries

b) Other cases Case 1: DPD (London, UK) Last-mile delivery feature: Micro hub with a single carrier Status: Operational using environment-friendly vehicles General information: DPD is an international logistics player and operates in many countries. DPD London has decided to invest in creating sustainable practices to reduce their carbon footprint. The deliveries are generally done by regular diesel vans in the city of London. Introduction of congestion charging and Ultra Low Emission Zone encouraged them to take sustainable initiatives and prepare for the future. Operations and management: DPD opened its first all-electric last-mile delivery depot in Westminster, London in 2018. The 5,000 sqft Westminster site, which can handle 2,000 parcels per day, is the first of eight all-electric depots planned across London. DPD has now opened three micro hubs on other locations in London. These micro hubs are self-funded. DPD has plans to introduce electric cargo bikes to do last-mile deliveries from these micro hubs. They are also planning to design the cargo bikes in-house. Currently, DPD Westminster has invested around £500,000 in refurbishing the site to include electric vehicle charging facilities to service its fleet. Vehicles operating from the site include two fully-electric 7.5t vehicles will feed parcels into the depot each day. Lastmile deliveries will then be carried out by a fleet of 10 electric vans capable of making 120 stops a day. These vehicles are delivering to the immediate area around the depot. A further 23 of the micro-vehicles are expected to be deployed at the site in future. Other information: --

Sources and weblinks: https://airqualitynews.com/2018/10/23/dpd-opens-electricdelivery-hub-in-central-london/, https://motortransport.co.uk/blog/2018/10/17/dpd-opensits-first-all-electric-last-mile-delivery-site/, Semi-structured interview with Rob Flower

R!sult – Best practices in last-mile deliveries

Case 2: The green link (Paris, France) Last-mile delivery feature: Micro hub with a single Status: Operational carrier using environment-friendly vehicles General information: The Green Link (TGL) is a company making parcel deliveries in central Paris with an entire fleet of electric vehicles since 2009. Operations and management: At the end of 2013, the volume of parcels distributed was 2,500 per day. TGL operates three depots (called ‘green hubs’) and a fleet of 28 electrically assisted cargo cycles and two electric vans. The ‘green hubs’, are located in the centre of Paris. The main depot near Gare de l’Est has a size of 350 sqm. The two other hubs have a size of about 200 sqm and are located in other central boroughs of Paris. The main clients are large express carriers such as TNT and FedEx or shippers such as Coca-Cola, Eurodep (a pharmaceutical agent specialized in the retail outlet) and Saveurs et Vie (a company distributing food at home). The organisation of the logistics processes is straightforward. The goods arrive in the early morning hours, starting from 07.00, up to 09.30, at the depot. The parcels are coming by truck and vans from the larger regional distribution centres of the clients and then unloaded into the depot via pallets, before being sorted and loaded onto the clean vehicles. The distribution rounds are performed by a staff of 60 part-time and full-time drivers. TGL’s record says that it has avoided the emission of more than 400 tonnes of CO2 and the consumption of 130,000 litres of diesel since its creation in 2009. Other information: The Green Link is profitable and does not rely on subventions from the public sector.

Sources and weblinks: https://www.changemakers.com/discussions/entries/green-linksustainable-city-logistics, The Green Link case study, BESTFACT project

R!sult – Best practices in last-mile deliveries

Case 3: Oslo City hub (Oslo, Norway) Last-mile delivery feature: Micro hub with a single carrier Status: Operational using environment-friendly vehicles General information: DB Schenker is a branch of German Rail Operator that focuses on logistics services. Since 2002, it was acquired by Schenker-Stinnes and became DB Schenker. They operate majority in European countries. The project was initiated by the Port of Oslo by announcing a tender for the use of a site in the port area of Oslo for logistics hub in 2017. DB Schenker established Oslo City Hub with the other two partners. They leased the site for 5 years which will be finishing in 2021. Operations and management: DB Schenker opened Oslo City Hub on May 8, 2019. It estimated that it will manage 80% emission-free distribution with this arrangement. It also invested in three electric vans and eight cargo bicycles to reduce its carbon footprint. The building covers 457 sqm area and is built of containers and facilitated for the handling of goods. A report on the evaluation of Oslo city hub shows five criteria for a successful establishment of the Oslo City Hub: -

Trust between the project partners Expert knowledge and a dedicated driving force in the planning and design process Support from and good cooperation with the public sector Suitable and available location for the depot in city centres and simple

Other information: This arrangement will distribute with zero emissions and ensure the City of Oslo's goal of a better environment in the capital. DB Schenker also has a zero-emission target for all urban distribution by the end of 2020.

Sources and weblinks: https://www.dbschenker.com/no-no/om-dbschenker/b%C3%A6rekraft/oslo-city-hub, Evaluation of Oslo City Hub -The planning and establishment of a depot for transhipment of goods by TOI Norway (https://www.toi.no/publications/evaluation-of-oslo-city-hub-the-planning-and-establishment-of-adepot-for-transshipment-of-goods-article35848-29.html), http://www.citylogistics.info/projects/evaluation-of-db-schenker-oslo-city-hub-lessons-learned/

R!sult – Best practices in last-mile deliveries

Case 4: City Hub (Graz, Austria) Last-mile delivery feature: micro hub Status: Pilot running with multiple carriers General information: As part of the pilot project “City Hub Graz”, parcel delivery will be carried out on a trial basis with e-cargo bikes from June 2020 for three months. The city’s traffic planning department, Austrian Institute of Technology together with various retailers initiated the idea of city hub in Graz. The pilot project is funded by BMVIT - Federal Ministry of Climate Action, Environment, Energy, Mobility, Innovation and Technology. Operations and management: A city hub will be installed in the city centre of Graz. The delivery of goods and parcels is handled by several logistics service providers based on agreed time windows and digitally optimized route planning. They plan to pre-load parcels in the logistics centre in Kalsdorf and then transfer to the City Hub in the city centre of Graz. An innovative trailer solution with flexible modules is used, which follows the “containerization” approach of the lastmile. Emission-free delivery is achieved by renewing and electrifying the Swiss Post fleet. The mail delivery charging infrastructure required for the e-fleet will be available by May 2020. Then the rollout of the new 42 electric vehicles will begin and by September 2020 the entire fleet will have been converted to battery-electric vehicles through this initiative. Other information: The similar pilot was tested in Vienna in 2019.

Sources and weblinks: https://oevz.com/oesterreichische-post-city-hub-graz-fuer-diepaketlogistik/, https://logistik-initiative-austria.at/graz-startet-city-hub/

R!sult – Best practices in last-mile deliveries

Case 5: Shinjuku joint delivery system ( Japan) Last-mile delivery feature: Micro hub with multiple carriers Status: Operational (joint delivery system) General information: The carrier association called “Shinjuku Land Transport Business Association” developed a joint delivery system called the Shinjuku Mantenro Staff in Tokyo, Japan. Operations and management: It has a distribution centre of 330 sqm about 10 minutes away from the buildings to be delivered to. The association owns four 2-tonne trucks (all CNG powered), one 4-tonne truck and a light vehicle. The delivery quota of the Shinjuku was 500,000 packages in 2009. Soon after the joint delivery system started the association observed the following changes. - Fewer vehicles needed: an estimated total of 16 vehicles (four trucks four times a day) covers the deliveries of one day, which would otherwise need somewhere between 60 and 70 vehicles - Improved loading ratio (actually loaded cargo divided by the loading capacity of the vehicle) - Reduced congestion - limited concerning the traffic volume in Shinjuku area, however, the entrances for the freight vehicles at the delivery addresses remained clear - Delivery efficiency improved - from a daily trip of about 181 km (before) to 130 km (after), which is a reduction of 28%. This is approximately 12,240 km saved per year - Fewer delivery errors observed and the business of the Shinjuku Matenro Staff has gained admiration from its customers Other information: During the starting phase, tracking became difficult and caused increased delivery tickets and sorting work. Sorting work is complicated because each carrier uses a different format. Because delivery and sorting staff requires a high level of knowledge of goods and know-how of streamlining workflow and hence training of staff became essential.

Sources and weblinks: A TURBLOG case study, Presentation on urban consolidation centre by Prof. Elichi Taniguchi and Dr Ali Qureshi – webinar organized by VREF in 2014

R!sult – Best practices in last-mile deliveries

Case 6: Imagine Cargo (Berlin, Germany) Last-mile delivery feature: Micro hub with multiple carriers Status: Operational General information: Imagine Cargo is a Berlin-based start-up who started operations in early 2019. It now operates in Berlin, Hamburg and Munich. They have 10 people working for sustainable urban logistics. Operations and management: They invested in a city hub in their early days of operations in Berlin. This city hub is suitable for smaller and more sustainable delivery vehicles such as cargo bikes and tricycles and helps them to do deliveries efficiently. The interesting initiative is that Imagine cargo opened hub for themselves but also for other logistics companies. On an area of initially 150 square meters, they handle deliveries within the neighbouring districts. Currently, they have created collaboration in the city hub with Liefery, Velogista, Urban Cargo and other local logistics partners. Other information: --

Sources and weblinks: https://www.imaginecargo.com/, https://medium.com/@ImagineCargo/cityhub-er%C3%B6ffnet-in-berlin-dd1e59dfdbbc,

R!sult – Best practices in last-mile deliveries

Case 7: CityHUB, Smart and Wise (Turku, Finland) Last-mile delivery feature: Micro hub with multiple carriers Status: Operational General information: The CityHUB, a local distribution centre opened at the Turku Puutori station On May 17, 2019, hosted by City of Turku under the framework of the New Solutions for City Logistics project to reduce the number of cars in the city centre. CityHUB will initially operate at Puutori for 12 months to try out the functionality of the concept in all seasons. The current status of the pilot project may vary due to the Covid-19 pandemic. It is built from mobile modular facilities supplied by IntLog. It also hired a graphic designer from an advertising agency to design the outer surfaces of the micro hub in the city centre. Energy for the hub is obtained from solar panels placed on the roof. Operations and management: The hub has room for at least two companies to operate simultaneously. DHL Express (Finland) and Turku Cooperative's Kauppakassi service have started operations from the CityHUB in summer 2019. The ‘shopping bag service’ also operates on a self-service principle, which essentially acts as a pick-up point for online orders. The service is especially aimed at residents of the area and business travellers. The routes of bicycle couriers are typically about 10 to 20 km long and the ride consists mainly of document transmissions as well as small packages weighing less than 5 kg. The CityHUB has smart locks, the key of which is a smartphone. Other information: A tender is currently underway for the premises of the Puutori station, after which it will be possible to plan a more detailed implementation schedule and the station's activities together with the actors. In the future, rapid experiments will be carried out around the hub on various themes related to the development of urban logistics, the reduction of emissions and the testing of various light transport vehicles.

Sources and weblinks: https://www.turku.fi/uutinen/2019-05-15_puutorille-avataancityhub-lahijakeluasema, https://citylogistiikka.fi/cityhub-turku/, https://www.sitowise.com/fi/referenssit/smart-city/turun-jakelukonseptit, https://www.turku.fi/uutinen/2019-01-22_citylogistiikan-uudet-ratkaisut-hankkeen-pilotillekumppani&usg=ALkJrhjfG7PcmsINq0at9TemeMbn3yKFZA

R!sult – Best practices in last-mile deliveries

Case 8: The hub company (Netherlands) Last-mile delivery feature: Modular Status: Operational (no micro hub micro hub manufacturer implemented) General information: The hub company offers the design of micro hubs car parking areas. They also offer closed parking solutions for bicycles and cargo bikes for storage and charging. Operations and management: The City Micro HUB offers a flexible, secure and weatherproof space from which easy last-mile deliveries are possible. Alongside a cargo bike or LEV, there is space inside the hub for the storage of packages and spare parts. The modular hub includes steel galvanized floor and frame for better stability. The size of one module fits one car parking spot. To make it energy efficient, they propose a green roof with solar panels and insulated side panels. Other information: The hub company offers a solution for constructing a micro hub in a small space with modular material but they have not implemented any project in reality.

Sources and weblinks: https://thehubcompany.eu/#, https://thehubcompany.eu/citymicro-hub/,

R!sult – Best practices in last-mile deliveries

4.2 Storage and consolidation Urban consolidation centres (UCCs) and storage facilities could play an important role in the future sustainability of the cities (Saetta et al., 2016). The key purpose of UCCs is the avoidance of poorly loaded goods vehicles making deliveries in urban areas and thereby a reduction in goods vehicle traffic. This objective can be achieved by transhipping and consolidating goods at the UCC onto vehicles with high load factors for final delivery in the urban area. The UCC also offers the opportunity to operate electric and alternatively powered goods vehicles for this urban delivery work (Allen et al., 2012). The cases observed in this category show that they could be effective for operating lastmile logistics in urban areas. The location of storage and consolidation centres is often seen outside the city centre, in most cases at the edge of the city. So that trucks coming from other cities can access the storage and consolidation centre without accessing the inner areas of the city. The economic viability of UCCs is always under discussion. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: The location of a micro hub can reduce vehicle km which eventually reduces air pollution. Economic indicator: The cost of locations in urban areas or the edge of the city may be high and economic viability of UCCs and storage facilities can be questionable as it increases overall logistics costs. Social indicator: The direct societal impact may be limited but reducing the number of total trips and also truck trips in the city can decrease congestion.

Figure 24: Sustainability indicator ranking for storage and consolidation

R!sult – Best practices in last-mile deliveries

The detailed description of the best practice(s) and a brief description of other cases are given in the following sections.

Best Practice: Binnenstadservice (Netherlands)

General information and background: Binnenstadservice (BSS) is an innovative concept applied in 15 cities in the Netherlands. The cities are Arnhem, Nijmegen, Den Bosch, Amsterdam, Arnhem, Beuningen, Dordrecht, Gouda, Heerlen Maastricht, Nieuwegein, Rotterdam, Tilburg, Utrecht and Wijchen. BSS operates a warehouse and distribution service on behalf of a group of retailers and other organizations located in the cities. The basic approach is that goods are delivered at a distribution centre at the edge of the city. From there, the goods are bundled and the lastmile to retailers is performed with a high load factor and where possible, with clean vehicles that are subcontracted to third party providers. Simultaneously, they also collect packaging material/paper and bring it to the consolidation centre for recycling. Figure 25 shows the BSS concept.

Figure 25: Binnenstadservice concept

Partners: Binnenstadservice – operates a warehouse and distribution service on behalf of retailers Retailers – deliver goods to Binnenstad warehouse Logistics service provider – delivers with environment-friendly vehicles (bicycle, (e)cargobike, electric vehicles, and natural gas vehicles), also responsible for the reverse logistics of recyclable materials to the consolidation centre.

R!sult – Best practices in last-mile deliveries

Implementation, operations and management: BSS started its operations with public subsidy, which encouraged shopkeepers to participate. Currently, it is a franchise organization. Each city has an independent local entrepreneur (retailer and local business owners) who takes up BSS franchise. They encourage local entrepreneurs to locate the existing warehouse and collaborate with them rather than competing so that the entrepreneur can start without huge investments. It also provides economies of scale because of the combined functions at the warehouse/crossdock location. The estimated costs in a start-up phase would be of around 10,000 Euros a month. The business model is based on the fact that the shopkeepers do not pay extra for the delivery of the goods. They, however, have to pay for the additional recycling activities provided by BSS. It is the transport company that used to deliver the freight to the city centre customers that now has to pay a fee to BSS. Then, they bundle the freight and subcontracts it to one logistic service provider per city. Figure 26 shows some of the operations and vehicles used by BSS.

Figure 26: Binnenstadservice vehicles and depot

Impacts and value creation: After several years of operations in different cities in the Netherlands, BSS has proven to be an efficient system with benefits for all involved parties.

R!sult – Best practices in last-mile deliveries

The shopkeepers receive all packages in one trip and do not have to sign multiple times anymore. Also, they need less storage space in their shops as they do not have to store packaging materials for days and give for recycling on the same trip as the delivery of goods. while the shopping street becomes more attractive. Transport companies can deliver the goods at BSS’s distribution centre located in the outskirts of the city. This arrangement saves them time and money because they don’t have to enter the city. It also eases the pressure of time windows and local policy initiatives targeting logistics activities, such as low emission zones. In addition, the companies pay less for transporting the goods because the consolidation resulted in a cheaper last mile. The city has the benefit of reduced environmental pollution and an increase in liveability due to less freight traffic. The BSS entrepreneur has easy conditions to start up in a new city. They receive coaching from the national organization. This organisation even provides support to other European cities at this moment (e.g Citylogistik in Denmark). A study done by TNO shows that, depending on the scenario, BSS has the potential to reduce vehicle kilometres by 48-72%. Time savings could go up to 60-70%, cost savings to 59-71% and the service has the potential to reduce CO2 emissions by 47-71%. The savings would vary depending on the type of deliveries, the length of the vehicle round-trip, the line haul and the number of deliveries in the city. Finances: BSS started its services from a public subsidy with local and national funds. Challenges and barriers: The shopkeepers are hesitant to accept such a concept initially which acted as a barrier to develop the system. This system requires many retailers to join for creating a critical mass to make it successful. In many cities, BSS started with a subsidy to create some time to convince the shopkeepers to participate. Future plans: Cities in the Netherlands are encouraged to adopt the BSS concept as much as possible by city authorities and non-profit organization like Eco2city. To facilitate its introduction in cities, policy measures and restrictions are important factors to look into, e.g. strict time windows, limited loading/unloading facilities and strict environmental conditions (environmental zones). Such a measure could force logistics companies to work with the BSS. The more cities participate in the BSS concept, the easier it is for transport companies to make use of the

R!sult – Best practices in last-mile deliveries

system. In the current situation, where BSS does not cover all cities, shippers and transport companies have to deal with different situations and conditions in different cities. Source(s): • • •

BESTFACT. (2017). Best practice factory for freight transport. http://www.bestfact.net/best-practices/ Hendriks, B. (2020, April). Semi-structured interview www.binnenstadservice.nl/

R!sult – Best practices in last-mile deliveries

b) Other cases Case 1: Goederen Hub (Cities in the Netherlands) Last-mile delivery feature: Consolidation centre Status: Operational General information: The Goederen Hub is a national logistics network initiated by entrepreneurs of Binnenstadservice in 2016. This network provides sustainable logistics in the 40 largest cities in the Netherlands by coordinating and bundling the small and medium-sized goods flows. Operations and management: This network allows shippers of goods with end address in the city to opt for a sustainable solution. A network within which Goederen Hub’s entrepreneurs work in their city under their brand or company name, while at the same time offering services to (inter)national shippers and carriers nationally in the same way, under the name of Goederen hubs. Goederen Hubs was initiated by BSS entrepreneurs and follows a similar concept as BSS but they are self-funded. Goederen hub held an open national meeting. The outcome of the meeting summarized that public intervention is necessary to safeguard the social interests of safety, quality of life and health. And the government has a crucial role to play. As soon as the local government sets new solid frameworks and policies, the market will rearrange within that. Other information: The entrepreneurs of the Warehousing Network have resolved to regularly open the national meetings to (social) partners to work closely with all partners and keeping the communication channel always open.

Sources and weblinks: https://goederenhubs.nl/home, https://goederenhubs.nl/page.cgi?p=nieuws&r=44, https://www.nieuwsbladtransport.nl/wegvervoer/2020/01/15/met-nieuwe-hub-willen-wekleine-ladingen-bundelen/

R!sult – Best practices in last-mile deliveries

Case 2: CityPorto Padova (Padua, Italy) Last-mile delivery feature: Consolidation centre Status: Operational General information: CityPorto is an Urban Consolidation Centre service operational in Padua, Northern Italy, focusing on deliveries to the central area ‘Low Traffic Zone’ since 2004. The Interporto Padova S.P.A. manages the consolidation centre. The same organization also manages the local freight village, which is a Public-Private Partnership (PPP) arrangement where local public bodies Municipality, Province, Chamber of Commerce are involved. Operations and management: CityPorto performs more than 100,000 deliveries per year (2012), for 65 customers. The deliveries are performed by 11 LNG-powered vans. The depot has a 1000 sqm urban consolidation platform located within the freight village. Operators deliver their goods to the CityPorto Padova on the outskirts of the city, where the eco-friendly CNG and electric vehicles are loaded and then distribute the goods to the city centre. The vehicles used for the service have preferential lanes, free access to the city and can park inside the limited traffic zones at any time of the day. The service is dedicated to the direct or subcontracted goods hauliers work in the city. The introduction of CityPorto service led to an estimated decrease of total distance travelled by 561,442 km between July 2008 and June 2010. A net reduction of emissions of 219 tonnes of CO2, 369 kg NOx, 72 Kg SOx, 210 kg VOC, and 51 kg PM10. They also performed Cost-Benefit Analysis for this period which demonstrated its sustainable practice. Other information: The model has been taken as an example by many other Italian towns. Interporto Padova also supplies its management software for those companies that wish to develop this type of activity.

Sources and weblinks: http://www.interportopd.it/en/cityporto/, http://www.prosfet.eu/PROSFET/wp-content/uploads/2018/06/ProSFeT-D1.1.pdf,

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Case 3: CityDepot / BDmyShopi (Belgium) Last-mile delivery feature: Consolidation and distribution centre Status: Operational General information: CityDepot offers a solution for the sustainable distribution of goods to the city centre and back. It has started with two depots, one in Brussels and Hasselt and continues to develop depot in other cities in Belgium. Recently BDmyShopi took over CityDepot. They connect carriers, retailers, suppliers, cities, public organizations and consumers. They stand for suitable customized solutions for all these stakeholders. CityDepot directs goods transport to and from cities and also within cities. Operations and management: CityDepot provides volume bundling and cargo pooling for last-mile and for long distances, which help in the reduction of vehicle km. It offers delivery with ecological vehicles. CityDepot served more than 800 companies in four months. In 2015, they started a pilot project where trucks unloaded the goods in a warehouse on the edge of the Brussel’s pentagon. From there, the deliveries were made by smaller vans and light electric vehicles. Other information: --

Sources and weblinks: https://www.citydepot.be/nl/, https://www.retaildetail.be/nl/news/algemeen/bd-myshopi-neemt-citydepot-over, https://www.bruzz.be/milieu/citydepot-leveringen-met-fiets-en-stootkar-niet-voor-morgen2018-08-07, https://www.bruzz.be/videoreeks/bruzz-24-30012015/video-citydepot-kent-grootsucces-we-willen-brussel-leefbaarder-maken

R!sult – Best practices in last-mile deliveries

Case 4: Simply Mile (Netherlands) Last-mile delivery feature: Consolidation centre Status: Operational General information: Simply Mile is an urban consolidation and distribution service in the Netherlands started first time in Amsterdam in 2017. Operations and management: Simply Mile is a consolidation centre where goods are received, stored and bundled for delivery in the city. They have ten suppliers and with them, they deliver all locations of the municipality, the University of Amsterdam and the Hogeschool van Amsterdam. All products are delivered in bulk to the consolidation centre on the outskirts of the city, allowing suppliers to drastically reduce the number of trips. From the consolidation centre, the products are combined into one shipment once or several times a week and delivered by PostNL with electric vehicles. Other information: They operate with a similar concept in Groningen also. The retailer Canon will supply its CO₂-neutral produced so-called 'Black Label Zero paper' directly from the factory to a Simply Mile 'hub' on the outskirts of the city of Groningen. From this hub, the paper is driven into the city by electric vehicles from PostNL. With this collaboration, both companies respond to the municipality of Groningen’s vision to achieve sustainable logistics practices in the city.

Sources and weblinks: https://simplymile.nl/, https://www.logistiek.nl/distributie/nieuws/2019/09/simplymile-breidt-emissielozestadsdistributie-voor-canon-in-groningen-uit-101169472,

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Case 5: Hubbel Last-Mile (Netherlands) Last-mile delivery feature: Consolidation Status: Operational and storage facilities General information: Hubbel Last-Mile offers consolidation and last-mile services in cities in the Netherlands. It limits the number of journeys due to the consolidation of goods and limits GHG emissions by using electric vehicles for last-mile deliveries. Operations and management: Hubbel receives goods from different suppliers, stores them in the consolidation centre and brings them to the city. Hubbel uses electric vehicles for transport. And contributes to a better environment, and create efficiency in distribution. Other information: --

Sources and weblinks: https://hubbel-lastmile.nl/nl-NL/#logistiek

R!sult – Best practices in last-mile deliveries

Case 6: Lucca Port (Italy) Last-mile delivery feature: Consolidation Status: Operational between 2007-2016 and distribution centre (now looking for investors) General information: Lucca Port started in 2005 from the initiative of the EC LIFE program. It implemented environment-friendly freight distribution in the historic city centre of Lucca under the project CEDM (Centre for Eco-Friendly City Freight). The key operational concept behind CEDM is a distribution centre, the main infrastructure to support rationalised, eco and business-efficient urban distribution. Operations and management: Lucca Port has delivered so far with fully electric vehicles more than 2,00,000 shipments to the historic centre of Lucca corresponding to more than 1 million parcels during the operational period. The measures as part of the Lucca Port development are listed below. - Adoption of restrictions to regulate freight deliveries in the historical centre (time slots for different types of goods, minimum load factor, electrical vehicles for final deliveries); - Cooperation among freight operators to cover last-mile city distribution (e.g. load consolidation, transhipment at freight transit points, etc.) - Implementation of innovative delivery concepts including goods consignment via dedicated collect points to be used directly by citizens and tourists; - Efficient management of reverse logistics. Other information: The initiative led to a significant reduction in freight vehicle trips with measurable improvements in air quality. The strategic planning under CEDM helped in establishing several other European projects. Lucca Port completed 9 years in 2016. It is now looking for funding. The city administration has been working towards understanding the issues encountered during this activity. It is also exploring collaborating with an IT company to collect data about freight in Lucca and to integrate the data for future planning.

Sources and weblinks: https://www.eltis.org/discover/news/luccaport-9-years-greenlogistics-lucca-italy, http://www.prosfet.eu/PROSFET/wpcontent/uploads/2018/05/Transitioning-Urban-Consolidation-Centres-initiatives-in-successfuloperations.pdf, https://www.eltis.org/discover/case-studies/urban-logistics-innovation-mid-sizedhistorical-city-lucca-italy,

R!sult – Best practices in last-mile deliveries

4.3 Click and collect services (Locker system / Pick Up-Drop Off points) Another unique concept that was observed during the study was the click and collect service. These locations are similar to Pick UP and Drop Off (PUDO) points and locker system where PUDO points are generally operated from an existing shop with human interaction and lockers work with technological support. Despite the obvious convenience of home deliveries, the last mile of e-commerce is the most expensive leg of the supply chain. Additionally, home deliveries cause a number of negative impacts to residential areas such as street blocking because of double parking, an increased risk of accidents, as well as other negative externalities linked to freight vehicles (e.g. pollution, congestion, noise) (Cardenas, 2019). Click and collect services are therefore widely regarded as a solution for increasing the efficiency and reducing the traffic of freight vehicles in residential areas. If doorstep deliveries get consolidated in a click and collect services, household freights trips become less frequent. Municipalities and companies are recognising this potential and start focusing their attention on densifying click and collect services networks. From their perspective, those pick-up point networks constitute an instrument to mitigate the negative impacts of e-commerce in urban areas (Cardenas, 2019). The cases observed in this concept show that they could be an effective option to make last-mile logistics sustainable in urban areas. This type of practice requires technical intervention to function efficiently in the complex supply chain. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: The location of the click and collect points can reduce vehicle km which eventually reduces air pollution. It can also save motorized trips to residential areas. Economic indicator: Finding locations for click and collect services can be tedious. Manufacturing lockers with a safe and secure system to operate can be expensive and asks major investments at an early stage. Social indicator: It can reduce traffic in residential areas which makes it more liveable and safe.

R!sult – Best practices in last-mile deliveries

Figure 27: Sustainability indicator ranking for storage and consolidation

The detailed description of the best practice(s) and a brief description of other cases are given in the following sections

a) Parcelly (London, UK) General information and background: Parcelly was launched in 2014. It was the UK’s first and most advanced network of carrier and retailer Pick Up and Drop Off (PUDO) locations managed by ITS solution. Their motive was to create a system where receiving, returning and sending parcels is convenient, efficient, simple and most importantly sustainable. Parcelly started with launching the mobile application to achieve this vision and to transform first and last-mile delivery through innovative technology solutions. Parcelly is operating today in over 150 cities across the UK, Germany, Spain and the Middle East and North Africa with over 2,500 'Parcelly location partners'. This case study is focused on its London operations. They want to offer its customers full control over their online orders, resolve the issue of failed deliveries and reduce the environmental impact of failed deliveries and freight traffic. It also provides stakeholders along the entire supply chain the opportunity to streamline fulfilment processes, speed up delivery cycles, facilitate reverse logistics and ultimately improve customer experience and satisfaction. Parcelly works beyond parcel collection and return. It converts excess space in local businesses and private homes into storage capacity. 78

R!sult – Best practices in last-mile deliveries

Partners: Parcelly - an independent company developing technological solutions for urban logistics practices PUDO point owners - local shops and businesses and retailers registered as Parcelly PUDO point Logistics carriers - couriers and shippers, and corporate or large enterprises collaborate with Parcelly to offer PUDO points to their customers as their final destination Implementation, operations and management: The main on-ground activity of Parcelly is creating a network of PUDO points at local shops. Overall, Parcelly contributes to the entire supply chain by doing mini-warehousing with local micro hubs to fulfil orders within 60 minutes. It offers consolidation and instant returns with a simple, convenient, label-less drop-off and returns process. The consumer can select a label-less option from the app where they don’t have to create label instead a QR-code is generated. The consumer can go to the drop-off location with the QR-code and return the parcel. Parcelly locations act as central micro hubs for short term storage before the lastmile delivery. It has integrated the network of 1,700+ PUDO locations through their technological solutions. The local warehousing shortens the delivery distance and enables fast, on-demand deliveries to consumers. Figure 28 shows a concept of local warehousing and identification tag by Parcelly.

Figure 28: Parcelly’s local warehousing concept

R!sult – Best practices in last-mile deliveries

Parcelly converts redundant space in local shops and private households into carrier and retailer parcel storage. The nationwide network of Parcelly business partners is managed through smart technology that allows anyone, anywhere and at any time to access, manage and monetise on redundant space – for the smallest package to large pallets. Parcelly’s service is available to consumers through a mobile app. The integrated list of retail and logistics services are available after registering in the app. This enables consumers to select their choice of PUDO location while ordering online. They offer a different app for shops and businesses to register as a Parcelly PUDO location. This app provides seamless check-in/check-out experience, dynamic and list view of storage capacity available across the entire network, the ability to scan and process barcodes from any courier and access to the helpline for all registered users. Figure 29 shows the mobile application interface for both types of services. It has a back end support department which takes care of technical issues and also continuously innovates with a broad range of platform features.

App for PUDO point

App for consumer

Figure 29: Parcelly app interface

Impacts and value creation: There are different possibilities for businesses to benefit from cooperation with Parcelly PUDO points. -

Local shops and businesses can increase footfall and revenue by becoming a Parcelly location.

Online retailers can provide a new delivery option and facilitate the return flow from a Parcelly location.

R!sult – Best practices in last-mile deliveries

Couriers and shippers have access to Parcelly’s PUDO network and can benefit from Parcelly’s technological innovation.

A corporate and large enterprise can opt for delivering packages to their mailroom by becoming a Parcelly location.

Parcelly also donates up to 5% of the price of each Parcelly Booking to their partner Atmosfair. Since the company’s inception, over 35 tonnes of greenhouse gas emissions have been offset. Finances: Parcelly is a privately-owned company. They charge consumers a monthly subscription fee or the price of the service will be quoted on the App at the time of the booking for deliveries at the PUDO locations. And at the same time, they pay to local businesses and shops to become PUDO points to grow a dense urban network of Parcelly PUDO locations. These payments are generally made each month. They offer the same PUDO network to carriers and shippers for their parcel deliveries and short-term storage. Challenges and barriers: Parcelly works on technological solutions which need continuous monitoring and updates. To be available for all kind of issues and queries is challenging. Future plans: Parcelly has been innovating with a different type of service to expand its network and to avoid failed deliveries. As part of their innovation program, they have launched a new partnership with Hull University Student’s Union to facilitate personal parcel deliveries for Hull University students. Students now can collect their online orders at one convenient location right in the centre of the campus. The new Parcelly service means students have an alternative option to their existing University’s mailroom, and all commission earned from Parcelly bookings will help raise money to invest in their Student Union. Parcelly wants to work with more and more universities to keep innovating in their services and projects in future. Source(s): • • •

Parcelly opens click&collect location at Hull University (2017, October). Retrieved from https://parcelly.com/blog/180-parcelly-has-a-real-social-impact-on-thecommunity Steinhauser, S. (2019, December). Semi-structured interview https://parcelly.com/

R!sult – Best practices in last-mile deliveries

b) Other cases Case 1: Cubee (Belgium) Last-mile delivery feature: Locker system Status: Operational General information: Cubee is a Belgian parcel locker operator. It started in 2017 by the collaborative arrangement of bpost and the Dutch company Buren to cater for needs of e-commerce customers. It is an open network of parcels for retailers, online customers and couriers which enables a fast and simple way to receive and send parcels. Operations and management: Cubee parcel lockers can be configured from different modules, available in four layouts. Cubee has more than 250 parcel lockers in the BeNeLux. The Cubee solution is fully integrated with its partner webshops using mobile technologies. Customers select the most convenient location of the Cubee locker in the checkout. Parcels are retrieved from the locker by scanning the QR-code on the smartphone. It has a collaboration with bpost and is open to use by all parcel providers. Cubee lockers can be located at an independent location on the street by the consent of the city authority or a place outside any store for making it easily accessible for users to pick-up their parcels. Cubee lockers have the flexibility of being open 24/7. The possibility of returning parcels is also available at these locations. Other information: The location for parcel lockers can be used strategically within the urban planning process.

Sources and weblinks: https://cubee.be/, https://www.easyfairs.com/nl/logisticsdistribution-brussels-2018/logistics-distribution-brussels-2018/exposanteninnovaties/exposantencataloog/stand/793006/, https://www.hln.be/in-debuurt/glabbeek/mobipunt-in-centrum-glabbeek-krijgt-pakjesautomaat-vanbpost~acfd1687/?referer=https%3A%2F%2Fwww.google.com%2F

R!sult – Best practices in last-mile deliveries

Case 2: Bringme (Belgium) Last-mile delivery feature: Locker system Status: Operational General information: Bringme is a system of smart parcel lockers developed by a company in Leuven, Belgium. The lockers can be installed indoors to serve as an automatic reception of parcels for employees, residents etc. Operations and management: Bringme has already installed lockers in 750 companies and residential buildings in the Benelux. The basic operations of Bringme are similar to Cubee parcel lockers. But the location of Bringme lockers are generally inside the residential or office building and limited to people who enter the particular building. Bringme is planning to introduce ‘Bringme Cool’, a refrigerated locker module for receiving fresh products. The city of Antwerp also did a pilot project with Bringme to observe the working of a parcel locker in office buildings. Other information: The design of Bringme locker is contemporary and attract many architects across the world to explore the possibility of installing it in their upcoming projects.

Sources and weblinks: https://www.bringme.com/be-nl/, http://www.divercitymag.be/en/bringme-box-intelligent-concierge-future/

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Case 3: Parcls (The Netherlands) Last-mile delivery feature: Pick Up and Drop Off points Status: Operational General information: Parcls provides a location for a neighbourhood hub for parcel deliveries and returns. It works on a similar concept as Parcelly. Additionally, it also offers last-mile deliveries with the bike in case the user opt for it instead of pick up. Operations and management: Local shop owners and businesses can register themselves as Parcls PUDO point. A user has to create a Parcls’ account before they shop online. And they can fill the delivery address of Parcls locations of their choice. The app notifies the user once the PUDO location receives the package including groceries. A user then can pick up the parcel or choose to be delivered at home by bike. Other information: --

Sources and weblinks: https://parcls.com/en/

R!sult – Best practices in last-mile deliveries

4.4 Summary Urban logistics has become one of the development objectives in recent years because it has a great impact on economic and environmental activities. The logistics activities are highly dependent on the state of the infrastructure. The realization of these infrastructure facilities such as consolidation, storage spaces, micro hubs etc., require high investments. Infrastructure enables companies to perform consolidation, cross-docking and distribution of urban goods. The availability of infrastructure has become extremely important for highquality last-mile services. There are certainly higher costs involved but it can be managed by creating innovative associations and public-private partnerships like KoMoDo and Binnenstadservice. This study explains several cases with collaborative arrangements. The cases with infrastructure as a prominent feature create an opportunity to re-look at the land use, real estate development and transportation. The physical location of storage, consolidation and PUDO points can become an integral part of the city’s larger transportation network for the optimum utilization. But it often includes a complex financial arrangement between stakeholders. It is then difficult to find a common ground to bring all project partners under one roof and sharing infrastructure and utility costs. The city authority and government bodies can play a crucial role to initiate the communication among all partners. Following the case study structure, different components of business model possibilities are listed below. Figure 30 shows a generic business model for the infrastructure category, where all possibilities of stakeholders, various aspects related to implementation, operations and maintenance, finances, and impacts and value creation are listed. Partners In this segment, various partners involved in realizing cases with infrastructure are listed. As infrastructure is a basic requirement for goods distribution, it is important to possess it from the beginning of operations. But they are often the most expensive part of the investment. The cases explored in this study show that financial viability can be achieved at initial stages with the support of local authorities. Below listed are the possibilities of different stakeholders associated with infrastructure category. • • • • •

City authority – for providing possible locations and subsidies State and federal governments Port authority – for funding opportunities and subsidies Retailers and local businesses – for integrating PUDO locations Logistics service provider – for goods distribution

R!sult – Best practices in last-mile deliveries

Figure 30: Generic business model for cases of Infrastructure

Implementation, Operations and Management In this segment, various tasks required on a daily basis are listed. There is the principle work of distributing goods from the location of infrastructure facilities, but also many supporting tasks are required to perform for efficient goods distribution. The collaboration among different logistics providers can act as a value-added feature. Below listed are the tasks associated with the infrastructure category. Principle work • Consolidation and Distribution • Cross-docking • Storage • Vehicle parking and maintenance • Vehicle charging Resources • Human resources (riders, back office, admin) • Office resources (stationary, computers, scanning devices etc) Communication • Communication channels • Tracking facilities • Delivery management software Value-added services • Co-working space shared utilities

R!sult – Best practices in last-mile deliveries

Impacts and value creation In this segment, different kinds of impact are described as observed in the cases using various infrastructure facilities. Below listed are some of the areas where it can create a positive impact. Economic: • Ease of operations with cargo bikes in densely populated and congested areas • A convenient place to operate last-mile deliveries Environmental: • Reduction in vehicle km driven and savings in the use of energy and fuel Social: • Creating an example for other stakeholders and other cities • Value for the community (e.g. reduction in congestion) and creating a liveable neighbourhood Finances In this segment, different expenditure and revenue possibilities are listed. Apart from the obvious expenditures and revenue streams, collaboration models for using shared space can be an effective solution for overcoming the financial burden at initial stages and also to sustain in the long-run. Outgoing: • Cost of Infrastructure and services (land, containers, utilities etc) • Operations and Maintenance cost (O&M includes; the cost of last-mile delivery & vehicle maintenance, staff salaries, utility costs and other administrative costs) Incoming: • Rent for using infrastructure e.g. rent of using a container or using space in the parking lot for the city or sharing space with other logistics operator

R!sult – Best practices in last-mile deliveries

5. Category: Policy Making urban centres as accessible as possible requires local decision-makers to prioritise the use of urban space according to local needs and circumstances. Similarly, local competent transport authorities need to decide on how to make the best possible use of the existing expensive transport infrastructure and maximise the accessibility of cities for passengers and freight. Towns and cities across Europe are considering or have completed the establishment of policies like access regulation schemes in order to improve urban accessibility, reduce congestion and/or to foster the development of alternative transport modes and the use of cleaner and more energy-efficient vehicles (European Commission, 2017). These regulations are dependent on the wider policy framework at a local and national level. In this category, practices related to policy initiatives are explored. The study focuses on different policy initiatives that led to establishing an organized system in urban logistics. The following concepts were identified: 1. Urban logistics management system 2. The network of urban logistics infrastructure The description of best practice in each concept is shown in the following section.

5.1 Urban logistics management system This concept explains different types of policy bundles and initiatives. Some of the city logistics policies and initiatives include time window restrictions, developing new infrastructure, promoting environment-friendly vehicles, monitoring and data collection, promoting new technologies etc. These policies are developed coherently and are supervised by a group of experts in different businesses and public sector institutions. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: Policies like access control regulations enable the use of environment-friendly vehicles. Economic indicator: Local authorities’ intervention in providing location and subsidies for infrastructure like micro hubs can lead to the development of innovative practices. Social indicator: time window restrictions can divert goods traffic in non-peak hours which eases congestion. Linking freight and logistics policies with other policies such as a potential

R!sult – Best practices in last-mile deliveries

Sustainable Urban Mobility Plan (SUMP) can have the objective of improving the liveability of cities.

Figure 31: Sustainability indicator ranking for urban logistics management system The detailed description of the best practice(s) and a brief description of other cases are given in the following sections.

a) Best Practice : Gothenburg, Sweden (Stadleveransen) General information and background: Gothenburg has been working on the development of a legal framework for sustainable city logistics in the inner city for many years. They have developed and applied a group of policies and initiatives related to urban logistics in the 2000s. These include the installation of time windows, setting up a low emission zone in the city centre, the development of a consolidation centre and micro hub and the promotion of light electric vehicles and cargo bikes. The team of experts at the city of Gothenburg and other field experts from the public and private sector supervised these initiatives and eventually created an integral urban logistics management system. Stadleveransen was established in 2012 keeping the bigger vision of developing sustainable practices in mind. This initiative was drawn from the legal framework discussed by a group of experts. It ran for two years as a pilot project and was later established as a fully commercial cost-neutral set-up. A consolidation centre was developed in the city centre of Gothenburg where all goods coming to the city centre is directed. It is located in the parking lot of the Nordstan shopping centre. From there, the goods are distributed within the city centre with 89

R!sult – Best practices in last-mile deliveries

electric vehicles and cargo bikes by the sole logistics service provider ‘Paketlogistik’ involved during the pilot phase. The service area of Stadleveransen is aligned with the low emission zone declared in Gothenburg. Following the time window and vehicle size restrictions, Paketlogistik chose to deliver goods by small electric vehicles and later involved Pling transport for doing deliveries with a cargo bike. Partners: City of Gothenburg – City authority developing the policies and supporting the implementation Innerstaden - a joint company (owned by the trade association of Gothenburg and the real estate owners) runs the consolidation centre in the city centre of Gothenburg Paketlogistik - a small haulier that operates the last-mile delivery from the consolidation centre using light electric vehicles Pling transport – operator for last-mile delivery with cargo bikes As part of the EU project START in 2005, a local freight network was established. This group includes experts from transport operators, trade associations, local authority, academia, property owners and retailers. This group of experts were involved in creating an urban logistics management system for Gothenburg. Implementation, operations and management: The planning was carried out by the Urban Transport Administration of the City of Gothenburg and the five real estate owners that own the Nordstan shopping centre located in the inner city of Gothenburg. During the study, the University of Gothenburg and logistics operators Schenker, PostNord and DHL provided support to collect and analyse the freight data in coordination with the major transport companies operating in the Gothenburg area and Nordstan’s business owners. The analysis from these data showed that only a few companies perform most deliveries in Nordstan. Moreover, a significant part of the traffic volume consisted of small shipments. The group of experts believed that the consolidation centre can become the centre for deliveries in inner-city. They intended to explore the sustainability of the consolidation centre from the pilot project. The Stadleveransen project started in 2012 with a small scale pilot for one year. Initially, a small number of shops (8-10) were contacted and asked to redirect their goods through the consolidation centre. The consolidation centre was set up in a car park in the shopping centre of Nordstan, and a small electric vehicle by Paketlogistik was used to deliver the goods from the centre to the retailers. The retail trade association ‘Innerstaden’ in the city

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centre was responsible for the consolidation centre and it was operated by a security company. Figure 32 shows the vehicles used in Stadleveransen.

Figure 32: Delivery vehicles of Stadleveransen

Approximately 200 shop owners and businesses were using the consolidation centre by the end of the pilot phase. As part of the pilot project, the city of Gothenburg also explored a possibility to involve another logistics operator for the pilot project. To aid the final delivery of the growing volume of goods, a logistics company called Pling transport using cargo bikes was also involved. During this phase, another revenue stream was opened through selling advertising space on the vehicle. In the second phase, another consolidation centre was created outside the city centre. This consolidation centre is integrated into a large existing logistics terminal. The logistics company can perform the daily last-mile delivery with two to three trips per day from there. The businesses connected to the service will assign this consolidation centre as the delivery address, except for some specific types of goods that have been excluded in the first phase

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(perishables, express, very high value, etc.). All shipments are registered into a universal ITS track & trace system, providing the customers with real-time information of the status of their deliveries. The last-mile delivery is performed according to the established base service level. In 2014, they also introduced collecting packaging material for recycling which generated an equal amount of work and financial return to make Stadleveransen commercially successful practice. The shop keepers and businesses pay a small fee for activities like collection packaging material, empty boxes and paper. Figure 33 shows the phase-wise evolution of Stadleveransen. At this stage, the first consolidation centre continued catering parcels for Nordstan and the consolidation outside the city centre handles bigger volumes and recycling activities.

Figure 33: project timeline of Stadleveransen Image source: Presentation by Michelle Coldrey, International project coordinator, Urban Transport Administration, City of Gothenburg

Impacts and value creation: This system created value in terms of environmental benefits. The use of clean vehicles led to lower pollutants emissions, lower noise levels and reduced CO2 emissions. All original freight vehicles were replaced by light electric vehicles and cargo bikes which reduced congestion and improved the liveability of the city centre. Communication and cooperation between partners was key to the success of the Stadleveransen project. In Gothenburg, it created an environment of trust among stakeholders, resulting in a high acceptance level for other urban logistics solutions and the possibility of establishing a more fundamental collaboration model. Additionally, the Stadleveransen project enabled a setting for reliable and commercially feasible urban logistics.

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Finances: The pilot was mainly financed by EU projects, the local authority, the trade association and property owners in the city centre. The introduction of the reverse logistics of packaging material for recycling created a revenue stream for Stadleveransen. The recycling company pays Stadleveransen for the collection. The value-added service like advertisement on their electric vehicles provided additional revenues. By the time the third phase ended, the project became cost-neutral and established a business model for fully commercial set-up. Challenges and barriers: The main challenge was obtaining an agreement with businesses and retailers to use the UCC and its clean vehicles, as it was required to change some of their established long-term relationships with customers and logistics players. The use of electric vehicles in place of diesel vans cost more to businesses. It was also a point of disagreement in the early stages. Future plans: The city of Gothenburg is planning to implement the next phase. During the next phase, the delivery area will be extended, the terminal will be moved to a better location with more space. A policy will be established where all transport operators need to use the central consolidation centre. Also, operators not using the consolidation centre for their urban deliveries will be charged more. Source(s): • • •

BESTFACT. (2017). Best practice factory for freight transport. http://www.bestfact.net/best-practices/ Coldrey, M. (2019, December). Stadleveransen - Urban Logistics in Gothenburg. [presentation] Widegren, C. (2019, December). Semi-structured interview

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b) Other cases Case 1 : Utrecht (Netherlands) Last-mile delivery feature: Utrecht’s sustainable Status: Operational freight transport plan General information: In 2008, with the help of the CIVITAS MIMOSA project, the city of Utrecht developed a freight distribution plan. As part of the project, various measures were taken to improve urban logistics. This includes the improvement of co-operation between companies, the installation of time restrictions for vehicles entering the city and the set-up of low-emission zones. The city also introduced additional measures as part of its 2011 Action Plan Freight Transport. Operations and management: In 2011, the city introduced the waterborne electric Beer Boat and the solar-powered electric freight road vehicle known as the Cargohopper. This has resulted in a reduction in emissions, noise and freight traffic, and increased the safety and quality of life for city residents. The introduction of the Cargohopper has seen fewer freight-vehicle trips by diesel vans or trucks in Utrecht. During the MIMOSA project, they observed a reduction in vehicle km. This resulted in a 73% (5.8 t) reduction in CO2 emissions, a 56% (0.001 t) decrease in PM10 emissions; and a 27% (0.005 t) fall in NOx emissions. It also reduces noise and increases the safety and overall liveability of the city centre. The beer boat concept was first introduced in 1996 to perform efficiently last-mile operations of beer by preserving the historical centre of the city and relieving the pressure on road traffic. In 2010, the City of Utrecht upgraded the beer boat with an environmentally-friendly electric boat and added another in 2012. Compared to its predecessor, the Beer Boat reduced CO2 emissions by 13 % and decreases by 10% and 6% of PM10 and NOx emissions, respectively. Other information: --

Sources and weblinks: http://www.bestfact.net/zero-emission-beer-boat-in-utrecht/, https://www.eltis.org/discover/case-studies/utrechts-sustainable-freight-transport-netherlands, https://civitas.eu/content/city-distribution-boat, http://www.cargohopper.nl/

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5.2 The network of urban logistics infrastructure The concept of parcel lockers is explained as part of the click and collect services in section 4.3 (Click and collect services (Locker system / Pick Up-Drop Off points). The real impact of urban logistics infrastructure such as parcel lockers (and other click and collect points) can be seen when they are strategically placed in the city at multiple locations. To achieve this, the city can introduce multiple measures simultaneously to make them more effective. The cases observed in this concept are limited but give an example of effective planning and implementation measures. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: installing parcel lockers can save vehicle trips and km which eventually reduces air pollution Economic indicator: saves time and money for transport operators as they can deliver multiple packages at the same location, saving on trips to an individual address. The development of a locker network provides business opportunities to locker manufacturers and IT companies for the installation and maintenance Social indicator: connecting it with transport nodes like metro station, public spaces etc, it can become an identity for the neighbourhood and ease to access the lockers

Figure 34: Sustainability indicator ranking for the network of urban logistics infrastructure The detailed description of the best practice(s) and a brief description of other case are given in the following sections.

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a) London, UK (a network of lockers at a city level and micro hubs in parking lots at borough level) General information and background: This best practice explains initiatives taken by the city level authority and borough level authority. A study on “Improving the health of Londoners - Transport action plan” by Transport for London (TfL) showed that the majority of accident-related fatalities involved a freight vehicle. In addition, there are up to 9400 deaths estimated due to long term exposure to NOx and PM2.5 in the London Metropolitan area. These numbers put urban freight high on the policy agenda. The Mayor of London showed political will for implementing solutions to mitigate the environmental impact of freight transport along with improving safety. Historically, London showed several successful policy initiatives with the implementation of the congestion charging and the Ultra Low Emission Zone (ULEZ). The Freight and Servicing Action Plan has also established a connection with other statutory documents like the Mayor’s Transport Strategy, the London Plan and the London Environment Strategy. Below are listed some of the initiatives described in the Freight Action Plan. -

Encouraging night deliveries with ‘retiming’ strategies for Heavy Goods Vehicles (HGVs) by developing the ‘Quiet deliveries toolkit’

A citywide network of PUDO points

Making land available for logistics and introducing a micro hub network for consolidation

Establishing deliveries via bicycles and a pedestrian porterage system

Three-day training program for construction logistics planners and developers to improve the creation of Construction Logistics Plans (CLP)

Introducing safe streets program by redesigning streets to avoid conflict points between HGVs on the one hand and bicyclists and pedestrians on the other

Making citizens aware of the impact of deliveries by requesting all employees working in the city centre to avoid personal deliveries at office buildings and rather select the click and collect service. This to avoid more deliveries in the city centre. Transport for London set an example by banning work deliveries

The borough of the City of London is a financial district in a 1sqmi area in Central London. Being a financial district, it is the most important borough of Greater London. It has an 8,000 resident population and a 500,000 working population. Figure 35 and 36 show the metropolitan area of London and the borough of London respectively.

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Figure 35: London metropolitan area

Figure 36: Borough of City of London

The City of London aims to develop its own area-wide logistics plan in line with the wider plan prepared by Transport for London for the metropolitan area of London. The main objective is to mitigate the impact of freight traffic in the area. The City of London initiated the following measures to improve the freight distribution system in the borough: -

Converting unused parking spaces into urban consolidation centres (UCC)

Improving bike infrastructure in the City of London by conceptualizing and implementing the mini-Holland program (now liveable neighbourhood program), to enable the use of cargo bikes for urban logistics

Coming up with a freight plan for construction site by real estate developers

Partners: Various departments of Transport for London – Implementing team of the Freight Action Plan, departments occupied with land use, economics and urban planning The borough of the city of London – planning team, owner of some of the parking lots in the borough Locker provider/manufacturers – manufacturing of locker units Logistics operator – goods distribution with environment-friendly vehicles Implementation, operations and management: City-level initiatives: Transport for London is working towards implementing a network of parcel lockers across the city. To achieve this, TfL is working with other departments to rationalize locker locations and to assess their economic impact. Borough level initiatives: The borough of the City of London has identified two sites for the location of a UCC, which are unused parking lots in the office buildings owned by the real

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estate developers. These locations require additional charging facilities. The borough of the City of London intends to lease these areas for a five-year period to a delivery company, to be selected via a public tender. To improve the safety for cargo bikes, the borough is planning to improve its streets with additional bicycle infrastructure. The borough also wants to encourage other innovative pilot projects in urban logistics. There are also plans for the rearrangement of on-street car parking spaces for loading-unloading areas. Impacts and value creation: The implementation of these policy measures will lead to reducing CO2 emissions from freight transport and creating liveable neighbourhoods. The utilization of unused parking spaces will encourage the innovative arrangement between stakeholders, where freight companies, real estate companies and the city authority will benefit. The borough of the city of London plans to improve the modal share of cycling with improvements to the cycling infrastructure. Implementing this measure can also ease cargo bike movements in the borough. Finances: The discussion and planning for the financial arrangement are ongoing at both city and borough level. The detailed study on the economic and financial impact of introducing lockers in the metropolitan area of London is under process. There are possibilities of giving subsidy for using the UCC in the borough of the City of London to the transport operator but the details are not yet finalized. Challenges and barriers: The planning of new concept demands the engagement of every actor involved. Engaging each department and external stakeholder into one vision is challenging and it takes time to achieve the desired target. The Freight Action Plan shows several initiatives where transport companies and logistics companies are encouraged to follow various training programs. These programs include a safe driving training program for logistics vehicle drivers, training for construction companies and suppliers for creating freight plan for the construction site. It is difficult for the city to make it an official requirement for companies to follow this training.

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The borough has started working on the legal framework to use parking lots as UCC’s. Simultaneously they are also calculating the subsidy for the logistics partner for using the parking space as UCC. This is a challenging process for the city. Future plans: Transport for London is in discussion with locker manufacturers to estimate the cost for implementing approximately 10,000 parcel locker network across the city of London. The borough of the city of London is in the process of assessing charging facility requirements for implementing UCC’s in unused parking areas. Currently, also the legal framework for leasing the parking areas is under development. Source(s): • • • •

Berrie, A. (2019, December). Semi-structured interview Freight Action Plan. (2019). Transport for London Parker, T. (2019, December). Semi-structured interview Steele, S. London’s Freight and Servicing Action Plan. [presentation]

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b) Other cases Case 1: Mechelen (Belgium) Last-mile delivery feature: Parcel lockers and UCC Status: Partially operational General information: The city of Mechelen participated in NOVELOG project which involved two pilot actions. The first is the development of an urban distribution centre and operating last-mile deliveries with cargo bikes. The second one is the development of a parcel locker system for pick-ups and deliveries in the inner city. Operations and management: The city of Mechelen established close cooperation between the logistic service providers and business to achieve the success of both pilot actions. Mechelen also experimented with an electric garbage truck in car restricted areas in 2014. The development of lockers for pick-ups and deliveries in the inner city was aimed at improving freight distribution of e-commerce deliveries. Originally, four different locations in Mechelen were chosen for installing parcel lockers in a parking lot. The installation of lockers proved to be very demanding due to the necessary technical requirements concerning their connectivity (i.e. COAX cable and Wi-Fi). For budget reasons, only two lockers were installed and they were tested for 6 months instead of one year in 2017. A company called Ecokoeriers is doing the last-mile deliveries by picking- p the goods delivered by suppliers to a depot outside of the city centre. Here, the delivery cost remains the same while the city has to pay an extra fee for the last-mile bike delivery. The importance of collaboration among different stakeholders proved a valuable lesson. The demonstration was expanded to all city services. The bike courier now performs the lastmile for the city of Mechelen. Other information: Mechelen has actively participated and explored different solutions for improving the sustainability of urban logistics activities. They believe that significant benefits could be achieved by developing mutual engagements that could also contribute to the reduction of social costs related to environmental pollution, energy consumption and traffic congestion. Keeping the freight and urban logistics agenda on priority, the city is preparing a covenant among different stakeholders which is expected to realize by the end of 2020.

Sources and weblinks: https://www.eltis.org/discover/news/introduction-electric-garbage-truckmechelen-belgium-0, NOVELOG Cities & Regions Factsheets Mechelen case study

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5.3 Summary Urban logistics is crucial for the functioning of cities but often neglected at the policy level. In this section, we observed best practices of policy initiatives for urban goods distribution. Besides the companies’ process of improving their logistics operations in cities, governments at different levels design public policies to facilitate urban freight movements. These initiatives can reduce the negative impacts of externalities on inhabitants. The development of a legal framework shared in these cases has shown innovative ways of creating an institutional framework for various projects. However, the development of a legal framework remains a major challenge. The policy interventions show the potential of changing the city on a wider scale. These initiatives can utilize existing public transport infrastructure to optimize the urban freight network. But they experience difficulties in enrolling and negotiating with different stakeholders and to put the policy plan into effect. Policies that encourage the consolidation of smaller shipments have the potential to reduce the traffic resulting from logistics activities in the central parts of the city. Such policies could lead to less congestion, noise and pollution and hence contribute to a more pleasant and attractive urban environment. As an authority, they can come up with a group of measures to align different innovation. The innovative group of measures can be integrated with the Sustainable Urban Mobility Plan (SUMP) and Sustainable Urban Logistics Plan (SULP). It enables cooperation across different policy areas, across different levels of government, and with local residents and other principal stakeholders. Many cities in the Netherlands are preparing for a covenant to enable actions related to freight and urban logistics. Following the case study structure, different components of business model possibilities are listed below. Figure 37 shows a generic business model for the infrastructure category, where all possibilities of stakeholders, various aspects related to implementation, operations and maintenance, finances, and impacts and value creation are listed. Partners In this segment, various partners involved in realizing cases with policy intervention are listed. Policies can cover a broad range of topics but the opportunity of integrating different levels (local, regional and national) can lead to the realization of sustainable practices for cities. Below listed are the possibilities of different stakeholders associated with the policy category. • Government authorities (Local, state and federal) – for drawing policies

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• Urban planning department and transport authority– for assisting in policy planning and realizing projects based on policies • Real estate developers – for providing properties for various purposes related to public amenities • Companies and businesses associated with the development, installation and maintenance of parcel lockers • Logistics and last-mile companies

Figure 37: Generic business model for cases of Policy

Implementation, Operations and Management In this segment, various tasks required on a daily basis are listed. There is the principle work of drawing policies related to urban logistics. The integration of policies between different departments can lead to creating sustainable practices. Below listed are the tasks associated with the policy category. Principle work • • • • •

Drawing policy interventions Analysing the existing situation (e.g. inventory of parking spaces and their utilization) Identifying locations for different services Implementing logistics plans Preparing awareness programs for citizens

Resources • Human resources (riders, back office, admin) • Office resources (stationary, computers, scanning devices etc) Communication

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• Communication channels • Tracking facilities • Delivery management software Value-added services • Co-working space shared utilities • Developing transport nodes Impacts and value creation In this segment, different kinds of impact observed in the cases using various policy measures, are described. Below listed are some of the areas where it can create a positive impact. Economic: • Facilitating collaboration model • All-day delivery possibilities • Developing a commercially viable and sustainable system Environmental: • Eliminating emissions • Achieving specific measurable results (e.g. zero-emission by 2050) • Improving cycling infrastructure will lead to an overall increase in the modal share of green vehicles and support cargo bike for logistics Social: • Creating an easily accessible city centre • Reducing congestion • Creating social integration and liveable neighbourhoods Finances In this segment, different expenditure and revenue possibilities are listed. The benefits created from policy measures are generally indirect and don’t show monetary profits or financial revenues. Outgoing: • Cost of consolidation and distribution centre • Infrastructure maintenance cost • Cost of reverse logistics Incoming: • Creation of more intangible values than financial revenues

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6. Category: Technological interventions In this category, practices with technological interventions are explained. The role of technology in urban logistics can be very diverse. Technological interventions can support urban logistics policy goals by providing information on travel and parking, tracking facilities, etc, (Kijewska, 2018). It can be used by logistics companies for selecting alternate routes in response to for example new information received regarding urban traffic conditions. The following concepts were identified related to the use of technological interventions in urban logistics. a) Intelligent Transport System (ITS) solutions for deliveries b) Automation in deliveries c) Crowdsourced delivery systems d) Data management and data sharing The description of best practice as part of the ITS solutions is shown in the following section. In the other three concepts, a brief description of the cases is given.

6.1 Intelligent Transport System (ITS) solutions for deliveries This concept explains how ITS solutions work in urban logistics. Loading-unloading bays are one of the easy measures to implement for the city. The problem in utilizing these bays is their inappropriate use, i.e. using for private car parking and conflicts between users in the case of more than one delivery at the same time. The following best practice shows how an ITS can be a solution for managing parking spaces for loading-unloading in urban areas. While developing the sustainability indicator ranking for this concept, below listed features were taken into consideration. Environment indicator: Vehicles don’t have to roam around in search of the loadingunloading area, leading to savings in vehicle km. Real-time traffic information can help to plan the route or take an alternate route for timely deliveries Economic indicator: Logistics operators can better schedule in advance because of the certainty of having access to the loading-unloading bay Social indicator: the organized system can help to avoid double parking on roads which not only eases traffic flow but also creates a safe place for freight distribution

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Figure 38: Sustainability indicator ranking for ITS solutions for deliveries The detailed description of the best practice(s) (for concept a) and a brief description of other cases (concept b, c and d) are given in the following sections.

a) AreaDUM application (Barcelona, Spain) General information and background: The AreaDUM app was developed and implemented by the city of Barcelona within the scope of Barcelona’s 2013-2019 Sustainable Urban Mobility Plan (SUMP). AreaDUM stands for Urban Freight Transport area (Distribució Urbana de Mercaderies in Catalan), a new name for loading-unloading areas. The app was created to include new technologies in urban logistics and for better management of on-street delivery spaces. The app essentially registers parking space for loading-unloading. Currently, a total of approximately 8,000 loading-unloading spaces are managed through this app. The parking zones were planned in Barcelona since 1983. The city has since then taken various measures related to parking. Between 2000 and 2004, they introduced regulations for loading-unloading and higher parking charges to ease congestion in the city centre. They redefined parking zones further and introduced AreaDUM. Initially, these zones were open only for private car parking and from 2015 they started this system for freight distribution vehicles also.

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Partners: The City council of Barcelona – initiated the AreaDUM project as part of SUMP The Transport association – responsible for mobility planning in the city The public service company B:SM – developed the app, manages and monitor areas Implementation, operations and management: As part of the SUMP, the AreaDUM app was implemented first only for the main shopping area in the city centre. The public service company B:SM started managing and monitoring the app. The app was extended to the rest of the areas in the city with the support of mobility agreement between the city council, the transport guild, local stakeholders and B:SM. It became compulsory to reserve parking spaces via AreaDUM app by November 2015. It was the only way commercial vehicles can use on-street parking spaces for loading-unloading. These zones are created exclusively for goods where vans and trucks are allowed to park. It includes about 2,000 loading-unloading spaces in each zone. There is space for four vehicles in each zone. Freight vehicles had time-restricted parking of 30 minutes to enforce the rotation of vehicles. Earlier, this time restriction was controlled with a cardboard disc. The disks have been replaced by an AreaDUM application for smartphones, and users will now have to enter their vehicle number plate to register the start time of their parking. There are three ways users can use this application to reserve the loading-unloading space. (1) by using the AreaDUM app, for which user has to register first, or (2) send a text message (chargeable) to activate each parking session in an AreaDUM, which does not require previous registration, or (3) by getting an AreaDUM ticket from a parking meter nearby the loading-unloading zones if a user doesn’t have a mobile phone. There is a possibility of opening two types of accounts in the AreaDUM app. 1. Individual accounts for private users with one or more vehicles in their household. 2. Fleet accounts for companies in which parking bays can be booked. It is possible to link more than one vehicle in this account but it can reserve one place at a time. Figure 39 shows AreaDUM app interface of booking the location and starting the 30 min. timer.

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Figure 39: AreaDUM application interface Source: https://www.areaverda.cat/en/areadum/qusareadum

When the parking timings were managed with cardboard disk, the control of the parking spaces was done only by the police. With refined parking measures and the introduction of the AreaDUM app, the city of Barcelona transferred the task of monitoring and controlling these zones to B:SM guards. Impacts and value creation: There are visible benefits of this system. 1. Geolocated real-time vehicle details – useful for the transport department to study the existing situation, estimate future demand and plan activities and projects in future 2. Detailed records of all parking activities for loading-unloading – useful for cities to study the existing situation of logistics by monitoring company accounts 3. User can view how much time remains for parking – helpful for logistics operator to move within the time limit of 30min. This is resulting in the availability of more spaces 4. Up-to-date information about the area is shown in the app including the status of road works – useful for logistics operators to plan and schedule their deliveries The AreaDUM app data is used by the city authority to monitor the pattern and intensity of freight distribution operations by the time of the day. It is also becoming useful for other observations like the zone-wise difference in the use of the app, utilization of goods vehicles and how many trips they do in a day, etc, which can be used to plan future activities.

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Finances: The application was developed from the funding available from SUMP (2013-2019) of the city of Barcelona. Currently, the app and the on-ground situation are maintained by a public limited company. There are no monetary revenues from this system for the city except fines. Challenges and barriers: It was a challenging task for the planning team to digitalize the inventory of parking spots and to connect it with the application algorithm. There are some spots in the city that still are not covered in the AreaDUM system. The city authority along with B:SM is working towards studying the data from the app and connect these spots in future. Future plans: A study will be done based on the data from AreaDUM to assess the existing situation. The study will help understand the parking pattern and requirement which can be used to rearrange parking spaces. The attention will be given to users’ daily experiences by conducting surveys and to the areas which are not fully utilized. They are planning to initiate this task within the framework of SmartCities. The system will be updated so that the user can find parking in specific time ranges. This will reduce the kilometres spend driving around to look for parking, hence AreaDUM allows users to save both time and money. Currently, the metropolitan authority is in communication with several cities around Barcelona to expand the AreaDUM app. A new app called SPRO is being developed, which replaces AreaDUM and will be valid for Barcelona and the surrounding cities. For private vehicles, the metropolitan authority is also working towards developing an app called SMOU (for more information, see https://www.areaverda.cat/index.php/en/smou/qussmou). Source(s): • • •

Ripa, F., Lozzi, G., Mourey, T., Dondi, S. (2017). NOVELOG - city logistics and Cities & Regions Factsheets. http://novelog.eu/ What is areaDUM. Retrieved from https://www.areaverda.cat/en/areadum/qusareadum Xavier, C. (2020, April). Semi-structured interview

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b) Other cases Case 1: Robovan from Omniva (Tallinn, Estonia) Last-mile delivery feature: automation in Status: Demonstration completed, deliveries planning for the pilot General information: Omniva is an Estonian international logistics company. They demonstrated a trial of the ‘mothership concept’, a prototype autonomous package delivery service using Mercedes Benz Vans and Starship Delivery Robots. They are now planning for the pilot project in a suburb of Tallinn. Operations and management: The mothership concept combines the van with those of an autonomous delivery robot. To optimize devilries, a Mercedes-Benz Sprinter van will serve as a mobile loading and transport hub for eight delivery robots. They will be linked together with the support of automation technologies like intelligent interlinking of delivery processes. The demonstration carried out in a suburb of Tallinn. They used actual customers’ parcels for the demonstration purpose, which would otherwise have been sent to post offices. In June 2018, the Estonian parliament also adopted legislation allowing delivery robots on its pedestrian sidewalks. The neighbourhood level pilot will be carried out in the suburban region of Kakumäe in the northwestern part of Tallinn. The objective is to direct all regional parcel flows that meet the size-requirements to robot deliveries. Other information: The parcel robot pilot concept has also been awarded the Estonian Logistics Project of the Year award.

Sources and weblinks: https://www.omniva.ee/index.php?article_id=644&page=888&action=article&, https://www.baltictimes.com/omniva_s_parcel_robot_pilot_among_the_best_in_europe/

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Case 2: CoRoS Mercedes van (USA) Last-mile delivery feature: Automation in deliveries Status: Planning for prototype (automatic bar code scanning in the van) General information: Mercedes-Benz Vans is developing new solutions for the CEP industry. In their prototype design, they want to demonstrate how technology saves time. The Cargo Recognition and Organization System (CoROS), transforms Mercedes-Benz vans into an intelligent cargo space via computer vision and artificial intelligence. CoROS is planning for refurbishment of the inside of the van to help drivers easily find the parcel when stopping for a delivery. The important features of CoRoS are listed below. •

The camera system integrated into the load compartment automatically scans the bar codes of the packages. This eliminates the need for time-consuming manual scanning.

•

Initial customer testing with large national and international CEP service providers have demonstrated added value in the fields of ergonomics and time savings as a result of a reduction in the number of work steps involved, as well as increased safety for driver e.g. by a better view to outside and theft protection of load.

•

CoROS Deep Learning software constantly monitors the position of the packages in the load compartment. This way it is easy to find the package.

•

The LED system shows the driver the optimum place to put each package. Upon arriving at the delivery address it indicates which package has to be delivered.

Operations and management: Since it is still in the design stage, the detail of the operations is not listed anywhere. Other information: It was mentioned by Mercedes that some features are in the state of prototype and series production may vary.

Notification with light for parcel destination

The in-built scanner in the van

Sources and weblinks: https://www.vans.mercedes-benz.com/vans/en/mercedes-benzvans/future-mobility/coros, https://www.youtube.com/watch?v=75jgiowLqQY, https://www.prnewswire.com/news-releases/the-digital-transformation-of-mercedes-benz-vansleveraging-artificial-intelligence-in-last-mile-logistics-300728738.html

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Case 3: Boxbot (California, USA) Last-mile delivery feature: Automation In Status: planning phase (start-up), deliveries (automated vans, mobile lockers operational with basic delivery services and automated handling) General information: Boxbot is a delivery company focusing on the last mile. It is a California startup founded by ex-Uber and Tesla engineers and backed by Toyota AI Ventures. Together they announced the new last-mile delivery system for e-commerce packages and other shipments. Operations and management: They are developing a system which combines automated handling of goods with a fleet of delivery vehicles. The local hub stores and sorts parcels before loading them for delivery in automated vehicles. The locations of these hubs are planned near residential neighbourhoods so that it can be cost-effective for retailers to offer fast deliveries including same-day delivery. Their goal is to make deliveries convenient and safe at the same time providing wider time slots to consumers. They are also working on creating a smooth system for returning goods. Their fleet includes two types of vehicles – regular parcel delivery vans and self-driving electric vans with lockers. The vehicles can be loaded with packages throughout the day at the local hubs. because of the automation in goods handling and sorting, drivers can get more work done in less time, without worrying about organizing or finding packages within their vehicles. Other information: --

Sources and weblinks: https://www.boxbot.io/, https://www.roboticsbusinessreview.com/supply-chain/boxbot-launches-last-mile-selfdriving-parcel-delivery-system/

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Case 4: Hytchers (Belgium) Last-mile delivery feature: Crowdsourced Status: Operational delivery system General information: Hytchers is an online platform (a mobile app) that connects sender, courier and receiver. It is a Belgian start-up. Operations and management: Hytchers has created a network with shops such as Total, Europcar, J&Jo etc. from where parcels can be picked up and delivered. Using an application, commuters can check if there are parcels available for collection on their route and can transport them within Hytchers’ network (e.g. between Total service stations, Europcar offices…). In return, commuters receive a reward, such as “miles”, valid in their partner shops (e.g. Total, Europcar, J&Joy, CO2Logic etc). Commuters who registered with Hytchers, are already on the road for their commute. Users first set the route they want to drive, before receiving propositions to transport parcels, with minimal diversions along this route. This use of existing traffic flows thus avoids adding new vans and trucks to the traffic and means that CO2 emissions related to deliveries are minimized. Along with the delivery, it also offers returns from their collection points. Consumer and seller both can track these packages in real-time. Hytchers claims that they move return packages up to the respective central depot via the greenest method possible. Other information: There are similar types of crowd shipping services available in other countries, namely Peer in the Netherlands, Hey Parcel in India, Yello in Australia

Sources and weblinks: https://www.hytchers.com/en/, https://ikbenpeer.nl/en/, https://heyparcel.com/, https://www.driveyello.com/

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Case 5: Parcify (Antwerp, Belgium) Last-mile delivery feature: Status: Not in operation Crowdsourced delivery service General information: Parcify connects private senders and businesses to independent couriers through a crowdsourced delivery platform founded in 2015. The intention is to ensure sustainable, cost-effective and convenient freight delivery. It is a Belgian start-up now merged to bpost. Operations and management: On the Parcify app, the sender can specify the size of the parcel and chose the location for pick-up and delivery. This action immediately leads the sender to see the costs of sending the parcel. A person who registered as a Parcify courier then accepts the ride and picks-up the package to deliver at the given address. The Belgian postal company bpost entered into a 'strategic partnership' with Parcify since 2016 and invested and acquired 51% shares. This investment has given them a room to continue to innovate in their last-mile delivery services for time being but unfortunately, Parcify has ended its services along with the official website and app from July 2020. Other information: --

Sources and weblinks: https://parcify.com/en/home-3/, https://techpulse.be/nieuws/168618/antwerpse-start-up-parcify-krijgt-15-miljoen-vanbpost/, https://www.sentiance.com/2017/09/20/mobile-delivery/, https://www.gva.be/cnt/dmf20171220_03253954/antwerpse-pakjesbezorger-parcifyovergenomen-door-bpost

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Case 6: Beedrop (Belgium) Last-mile delivery feature: Crowdsourced digital Status: Not in operation shopping platform and delivery service General information: Beedrop was founded in 2015 as an online platform on which consumers could place orders with affiliated traders, after which the products would then be delivered free of charge. With the platform, Beedrop wanted to ensure that specialist shops, producers, local businesses and small traders also had access to the fast-growing e-commerce market. Operations and management: Bee-drop saw its turnover double in 2017 and had already connected more than 800 small traders in almost eighty municipalities. But after that, it needed an investor to expand its services. A potential investor had been found, but negotiations failed. It did not get further than 80 Flemish municipalities where it was active. At that time, 831 stores are connected through Beedrop, more than 19,000 people were using the service. Beedrop handled some 225,000 deliveries. Other information: --

Sources and weblinks: https://www.ecommercenews.be/beedrop-stopt-ermee/, https://www.ecommercenews.be/beedrop-volgend-jaar-in-nederland/

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Case 7: Amazon Flex (USA) Last-mile delivery feature: Status: Operational Crowdsourced delivery service General information: Amazon Flex drivers are contract workers who use their vehicles to deliver packages to customers’ doorsteps for Amazon. Amazon Flex was launched in 2015 and since has become one of the primary sources of income for some of its drivers. The program uses everyday drivers to deliver packages from their vehicles. It operates in about 50 cities. Operations and management: In the Flex app, drivers find package delivery jobs in their area. After they log in, drivers can find delivery shifts, referred to as “blocks”. Drivers earn $18 to $25 an hour depending on the type of block, but as independent contractors, they’re responsible for any costs associated with their vehicle, like gas, tolls and maintenance. Other information: Recently there are reports (article link below) which state that Amazon Flex jobs are disappearing across the US. Some Flex drivers have been complaining that the holiday season in 2019, typically the busiest time of year for deliveries, was slower compared to previous years. Some delivery workers say Amazon Flex jobs are drying up as Amazon relies more heavily on delivery service partners because of cheaper rates.

Contractors working for Amazon Inc. Flex program load packages into vehicles to deliver to customers in San Francisco. Photo by David Paul Morris

Sources and weblinks: https://flex.amazon.com/#, https://www.cnbc.com/2020/02/09/amazon-flex-drivers-use-bots-to-get-more-work.html, https://www.businessinsider.nl/amazon-drivers-say-flex-delivery-jobs-are-disappearing2019-1/

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Case 8: iShare (Netherlands) Last-mile delivery feature: Data management and Status: Operational data sharing General information: iShare is a set of agreements about sharing data in the Transport & Logistics sector. This set includes Functional, Technical, Operational and Legal Agreements, agreed by the sector itself. It is a uniform set of agreements or schemes that enables organizations to give each other access to their data. Since they all work with the same identification, authentication and authorization methods, they do not need to keep making new agreements every time they want to share data. Operations and management: Participants in the iShare scheme can share data effortlessly. Below listed are some features of iShare scheme. 1. No need for costly and time-consuming integrations to share data; 2. Share data with previously unknown parties through a legal agreement; 3. Keep full control over their data. The participant can always determine under what conditions their data is shared, with whom, for what, and for how long. Other information: iShare is a Dutch initiative but is not limited to the Netherlands. During the co-creation process, connections were made with international parties.

Sources and weblinks: https://www.ishareworks.org/en/ishare/what-ishare, https://www.ishareworks.org/en/news/secure-logistics-introduces-single-sign-ishare-easyand-above-all-more-secure

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Case 9: Scheduling at Changi Airport (Singapore) Last-mile delivery feature: Data sharing platform by Government Status: Operational agency in the planning phase, Scheduling in operation General information: Singapore government has launched a few initiatives for decarbonising the supply chain including the last-mile delivery. The use of IT is seen as one of the key elements to manage logistics services efficiently. Operations and management: As part of integrating technological interventions to manage logistics activities, the government authority has identified the following areas to work further. 1. Scheduling Scheduling coordinates the delivery of goods, spreads out the arrivals and reduces congestion. Technology enables scheduling to be done easily and efficiently. Some companies also adopt night deliveries, when the emptier roads allow for quicker and smoother deliveries. Gurusoft's Dock Scheduling & Queue Management system is currently implemented at Changi Airport Terminal 4, where delivery trucks arrive during pre-booked timeslots for more efficient deliveries. Other areas they are working on are; 2. Digitalization, which creates new ways to view, manage and optimise operations including optimising delivery schedules and routes. Digitalisation also supports innovations like resource pooling and scheduling and allows them to be implemented more efficiently. 3. Resource pooling, which talks about the consolidation of goods for each area 4. Self-collection points, Households are encouraged to act as a neighbourhood collection points for receiving parcels. This arrangement allows consumers to enjoy the convenience of having different collection options in their neighbourhoods. Other information: The Land Transport Authority (LTA) of Singapore is working towards drawing legal agreements to enable data sharing at this stage.

Sources and weblinks: https://www.ura.gov.sg/Corporate/Get-Involved/Plan-Our-FutureSG/Innovative-Urban-Solutions/Urban-logistics

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6.2 Summary We observed various practices which have one or the other form of technological intervention as its key element. The extent to which different companies have used technological interventions is very different mainly due to how fast and creative innovations take place in this field. Often, technological interventions are used by private companies which helps them to perform various activities efficiently. But when a practice like AreaDUM demonstrates its use at the city level, it creates value where other cities can also take inspiration. These interventions demand a different type of human resources within the logistics sector. There are resources which have to manage customer care on phone or app, monitoring data, analyse and communicate data with the responsible department, maintain the IT systems and provide regular updates. The users vary from consumers to CEP service providers, e-commerce retailers, and all types and size of delivery companies. There are visible benefits of technological interventions in urban logistics. Apart from the real-time parcel tracking, it produces different types of data which enable private companies and city authorities to have a wider perspective on the overall system. The cases that focus on technological interventions demonstrated higher customer satisfaction because of the tracking facilities. The data generated from these tracking tools are also helpful to analyse and understand the movement pattern. This could help in planning future urban freight activities but it is challenging to change the conventional system. It is often time-consuming to train employees to adopt a new system. On the one hand, the type of data these technological interventions generate can be used for better O&M and plan for more efficiency in the future. On the other hand, data handling is becoming a bigger challenge and further studies are required. Following the case study structure, different components of business model possibilities are listed. Figure 40 shows a generic business model for the Technological Interventions category, where all possibilities of stakeholders, various aspects related to implementation, operations and maintenance, finances, and impacts and value creation are listed. Partners In this segment, various partners involved in realizing cases with technological intervention are listed. Different types of IT companies and app developers play the most important role technically in developing these practices. To manifest its impact on a bigger level government authorities play a crucial role. Below listed are the possibilities of different stakeholders associated with the policy category.

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• Government authorities (Local, state and federal) – for conceptualization and drawing the precise need for the use of technology o Urban planning department o Transport authorities • App developer and customer care department – for developing technological interventions like the app, tracking facilities etc. • Monitoring and maintaining agency – for maintaining the service levels

Figure 40: Generic business model for cases of Technical interventions

Implementation, Operations and Management In this segment, various tasks required on a daily basis are listed. The principle work here is to develop a technological intervention, and further maintain and monitor it. If the technology is implemented by city authority then the communication channel becomes one of the most important tasks. Below listed are the tasks associated with the policy category. • • • •

App development, maintenance and customer care Data monitoring and analysis Creating communication channel to share data and information Adding area-wide information and app updates regularly

Impacts and value creation In this segment, different kinds of impact observed in the cases using technological interventions, are described. Below listed are some of the areas where it can create a positive impact. There are visible benefits and value for cities and companies using technology in urban logistics. Eventually, these benefits lead to a bigger environmental, economic and social impact. 119

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• Geolocated real-time vehicle details – useful for the transport department to study the existing situation, estimate future demand and plan activities and projects in future • Detailed records of all operations – useful for cities to study the existing situation of logistics by monitoring company accounts • Loading-unloading zone registration user can view how much time remains for parking – helpful for logistics operator to move within the time limit. This is resulting in the availability of more spaces • Information about the area is shown in the app including the status of road works – useful for logistics operators to plan and schedule their deliveries • Data sharing and management – enables companies to explore and align routes for optimizing capacities Finances In this segment, different expenditure and revenue possibilities are listed. Apart from the obvious expenditures and revenue streams, the additional revenues are not observed from any practice explored in this study. Outgoing: • Cost of developing the app • Cost for app maintenance (app update, updating data inventory etc) Incoming: • Fines • Registration fees

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7. Observations This booklet documents the study on various last-mile delivery cases and identified best practices and learnings from those practices. The detailed case studies explain the most interesting cases from its conceptualization to implementation. The challenges and opportunities in each category were summarized at the end of the respective chapters. The insights and findings derived by observing these practices are summarized below to support the implementation of pilot projects as part of the R!sult project and for future reference. 1. Create a policy that incentivises sustainable practice The collection of practices shows that sustainable practices are often incentivised by a public authority via tax exemptions, permissions of operation, and subsidies. It is also an indirect way to discourage practices that do not lead to general welfare. Example: Subsidized micro hub for La Petite Reine in Paris, tax exemptions and incentives for bike operators, exemption from congestion charging fees for Gnewt Cargo’s electric vehicles 2. Form mechanisms to make public buildings accessible Many of the best practices are initiated and continue to work because the public sector and the real estate sector have taken steps towards accommodating freight in the city. It is difficult to visualize the implementation through the regular way as it is no simple task and does not follow the rules of the real estate market. But possibilities can be created via a city authority. Example: The borough of the City of London is planning to offer office building parking space for logistics purposes, a proposal of using a hotel basement and parking space for logistics purpose in Paris is also under construction (Chapelle International logistics Hotel) and already operational at Beaugrenelle logistics hotel in the south of Paris 3. Plan and design tailor-made solutions The success of solutions comes from exploring niche markets that are often not addressed by traditional large-scale logistics. For example, Instant deliveries, perishables, pharmaceutical products, oversized goods, returns, reverse logistics and cleaning services and other non-standard services like rebalancing vehicle for public bicycle sharing systems. Often, catering to a niche market then leads to attracting investments from big companies.

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Example: TRASHH project for cleaning services funded by National funds and cleaning service company’s investments, Menzies distribution in the UK invested in Gnewt cargo, Star services in Paris invested in La Petite Reine 4. Generate possibilities for Public-Private Partnerships Successful practices often count on the integration of stakeholders around public and private initiatives. A Public-Private Partnership arrangement shows mutual benefits for involved parties and increases welfare in general. This arrangement creates an environment to perform experiments and space for incubating new ideas. Example: There are public entities that formally deal with urban logistics in Gothenburg. They initiated Stadlveransen and included private business owners also in it. KoMoDo shows an integration among different public and private stakeholders 5. Organize for sustainable and innovative experiments Best practices are often the outcome of innovative experimental projects initiated by universities, research centres and freight advisory boards and forums. Using a quadruple-helix approach allows for close collaboration and engagement with these stakeholders to shape sustainable practices and encourage innovation via experiments. Example: TRASHH, where a research institute generated the idea and collaborated with cleaning service company and city authority, Parcelly collaborated with the university to experiment with parcel lockers in the educational institute. Stadleveransen had city authority, university, business owners and logistics operator in its expert group created specifically for urban logistics 6. Initiate recognition and training programmes Many Best practices offer an environment to uplift their employees’ quality of life and safety. The warm and friendly environment for employees and riders often increases customer satisfaction and increases overall social welfare. Example: Zedify gives flexible hours even to their drivers, London offers a training program for drivers carrying construction material, La Petite Reine offers jobs to underprivileged groups of people 7. Create a platform for communication among experts The key to successful practices with multiple stakeholders is a dedicated communication platform among experts. It helps to establish a strong relationship among experts where new ideas can be discussed along with its implementation possibilities. The experiences

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from the stakeholders associated with this platform are a useful and valuable support to implement new ideas. Example: KoMoDo micro hub where city authority and port authority created a communication platform to bring all partners under one roof which resulted in experimenting a collaborative model for a micro hub, an expert group in Gothenburg was created to deal with everything related to urban logistics in the city and they established Stadleveransen 8. Initiate and manage a database (framework) to share collective learnings The creation of a common framework to collect various best practices and learnings helps to establish a database. It can be initiated at the local level and gradually can be expanded to the regional (e.g. Vervoerregio Vlaanderen), national and even at the European level using the common framework. The library or observatory of best practices with open access can be a useful tool to learn from previous experiences and take inspiration. Example: SUGAR City logistics best practices – A handbook for authorities, BESTFACT best practice factory for freight transport

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8. Annexure 8.1 Quick view table of all cases All the cases explored during the study are listed concerning its unique concept in the table below. There are cases we came across after the study phase are also added. Sr.No.

Unique concept

Name of the case

City and country of operation

Status

Remarks

Reference page

Gnewt

London, UK

Operational

Zedify

London, UK

Operational

Value-added service (Advertising), also has a micro hub

on page 27

Pedal & Post Oxford

Oxford, UK

Operational

Bubble post

Ghent, Belgium

Not in operation

on page 34on page 34 on page 35

Loreal - Proximus case

Brussels, Belgium

Pilot running

La Petite Reine

Paris, France

Operational

Pling Transport

Gothenburg, Sweden

Operational

Cargo Velo Velogista

Ghent/Antwerp, Belgium Berlin, Germany

Operational Operational

Also has storage facilities, an interesting case to see from the infrastructure perspective Used to serve a niche market of temperature-controlled goods, now merged to bpost Collaboration with retailers, interesting to see the business model Value-added service (advertising), an interesting case to see from the business model perspective, also has a micro hub(s) Has a sister company which manufactures Cargo bikes (armadillo), also has a micro hub Operates from a micro hub

Dropper Last-mile Leeds Green Wheel Delivery Box Bike Delivery LLP Die Boten Dioxyde de Gambettes Green Link York MOVEBYBiKE Portland Pedal Power Groen Rijders Urbike Mumbai Dabbawala Urban Cargo Cycloxress Vi-tes De fietskoerier

Groningen, Netherlands Leeds, UK Hull, UK Hitchin Salzburg, Austria Brussels, Belgium York, UK Stockholm, Sweden Portland, USA Arnheim, Netherlands Brussels, Belgium Mumbai, India Berlin, Germany Brugge, Belgium Leuven, Belgium Antwerp, Brussels, Nijmegen, Arnheim, Amsterdam Brussels, Belgium

Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational

Category: Environment-friendly Vehicle 1 2a

Deliveries with electric vehicles combining with porters and bikes Deliveries with cargo bikes with valueadded services

Cargo bikes with micro hub

Cargo bikes with trailers/tricycles and bike messengers

Molenbike

on page 22

on page 37 on page 30

on page 40 on page 41

on page 36

Effective operations without technological intervention Innovative vehicle design

on page 39 on page 38

on page 42

Operational

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Sr.No.

Unique concept

Name of the case

City and country of operation Birmingham, London, UK

Status

Soria, Segovia, Castelló, Valencia, Spain Istanbul, Turkey Bremen, Germany Bratislava, Slovakia Essen, Netherlands Florence, Italy Graz, Austria Sion, Switzerland Budapest, Hungary Milan, Italy

Operational

Operational Operational

URBY TRASHH

Mexico city, Mexico Various cities in Belgium, UK London, UK Cities in France Boston, New York, USA Chicago, USA Cities in France, Spain, UK Karlsruhe, Germany Cities in Germany Cities in Spain, Italy, Croatia, Argentia, Georgia, Portugal and France Brussels, Belgium BASEL, Switzerland Kiev, Ukraine Brisbane, Australia London, UK Antwerp, Amsterdam, Cologne also other cities in the world Paris, France Hamburg, Germany

KoMoDo

Berlin, Germany

Started as a Pilot project in 2018,

e-cargobikes.com (Sainsbury) Bicimensajerosoria Bisiklet Kurye Bremer Radkurier Cyklokurier Svihaj Suhaj Die Kuriere Ecopony Fuhrwerk/Veloblitz Kargobike Hajtas Pajtas UBM Urban Bike Messengers TIG bicimensajero Deliveroo

Cargo bikes combination with vans

Pedals Delivery Novea DoorDash Bike Four-star bike courier Stuart Kalix Liefery Glovo

Ecopostale Kurier Zentrale GMBH Delfast e-motion concepts Royal mail DHL Express

Reverse logistics with cargo bikes

Remarks

Reference page

Operational

Operational Operational Operational Operational Operational Operational Operational Operational Operational

An interesting case to see from the Technological perspective

Operational Operational Operational Operational Operational Operational Operational Operational

An interesting case to see from the technological perspective, investment by Japanese giant Rakuten

Operational Operational Operational Operational Operational Operational

Operational Pilot running – planning for commercial set-up

on page 43

An interesting case to see from the Policy perspective

on page 45

Used by multiple service providers

on page 54

Category: Infrastructure 4

Micro hub with single or multiple carriers

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Sr.No.

Unique concept

Storage and consolidation

Name of the case

Click and collect services (Locker system/Pick up points)

Status

DPD The green link Oslo City hub - DB Schenker CITY HUB Shinjuku joint delivery system (A TURBLOG case study) Imagine Cargo

London, UK Paris, France Oslo, Norway

now extended (preparing for commercial set up) Operational Operational Operational

Graz, Austria Tokyo, Japan

Pilot running Operational

Berlin, Germany

Operational

CityHUB Smart & wise

Turku, Finland

Pilot running

The hub company

Netherlands

Micro hub Binnenstadservices Goederen hub

Sint-Niklaas, Belgium Netherlands Arnheim, Amsterdam and other cities in NL Padua, Italy

Partially operational/startup Planning for pilot Operational Operational

VeloceVicenza & CityPorto Padova City Depot/BDmyShoppi Simply Mile Hubbel Last-mile Mango logistics Luccaport

City and country of operation

Brussels, Belgium Netherlands Den Haag, Netherlands London, UK Lucca, Italy

Remarks

Interesting to see from the policy perspective An interesting case to see from the policy perspective

An interesting case to see from the policy perspective and institutional framework The Privately-owned hub offers space to other bike couriers on a rental basis Used by two service providers, an interesting case to see from the policy perspective

Reference page

on page 58 on page 59 on page 60 on page 61 on page 62

on page 63 on page 64 on page 65

An interesting case to see from the policy perspective An interesting case to see from the policy perspective

on page 67 on page 71

Operational

on page 72 on page 73 on page 74 on page 75

City hub Parcelly

Utrecht, Netherlands London, UK

Operational Operational Operational Operational On hold – looking for investors Operational Operational

Cubee

Cities in Belgium

Operational

Bringme

Cities in Belgium

Operational

Parcls

Amsterdam, Netherlands

Operational

Bentobox (CITYLOG project)

Germany

Pilot closed

Stadleveransen

Gothenburg, Sweden

Operational

An interesting case to see from the policy perspective

on page 76

An interesting case to see from the technological perspective An interesting case to see from the technological perspective An interesting case to see from the technological perspective An interesting case to see from the technological perspective

on page 78

An interesting case to see from the infrastructure perspective

on page 89

on page 82 on page 83 on page 84

Category: Policy 7

Urban logistics management system

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Sr.No.

Unique concept

Name of the case

City and country of operation Utrecht, Netherlands

Status

Remarks

Operational

Policy initiatives in London Mechelen

London, UK

Planning phase

Mechelen, Belgium

Operational

A similar initiative like beer boat in Utrecht is implemented in Amsterdam by Power Zone sports club along with other stakeholders Bid Food and Zoev city in the dock area. An interesting case to see from the infrastructure perspective An interesting case to see from the infrastructure perspective

Utrecht

The network of urban logistics infrastructure

Reference page on page 94

on page 96 on page 100

Category: Technological intervention 9

ITS solutions for deliveries

AreaDUM

Barcelona, Spain

Operational

Automation in deliveries -Robovan

Omniva

Tallinn, Estonia

CoRoS Boxbot

USA California, USA

Hytchers Peer Hey Parcel Yello Parcify Bee-drop Amazon flex ishare Scheduling at Changi Airport

Cities in Belgium Cities in the Netherlands Hyderabad, India Melbourne, Australia Antwerp, Belgium Belgium Cities in the USA Netherlands Singapore

Demonstration completed, planning for a pilot Planning phase Planning phase / startup Operational Operational Operational Operational Not in operation Not in operation Operational Operational Operational

Crowdsourced delivery system

Data management and data sharing

Loading-unloading area management, Interesting case to see from the Policy perspective The demonstration was successful, Interesting case to see from the Policy perspective

Automated vans, mobile lockers and automated hubs

on page 105 on page 109

on page 110 on page 111 on page 112

An interesting case to see from the Policy perspective

on page 113 on page 114 on page 115 on page 116 on page 117

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8.2 Map: location of various cases explored in this study

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Gonzalez, J. and Feliu. (2017). Sustainability Evaluation of Green Urban Logistics Systems: Literature overview and proposed framework Heitz, A. (2020, April). Semi-structured interview Hendriks, B. (2020, April). Semi-structured interview King, R. (2019, December). Semi-structured interview Macário, R., Rodrigues, M., Gama, A., Timms, P., Lama, C., Amaral, M., Schoemaker, J., Tromp, N., Quinn, D., Abranches, G. (2011). “Handbook on Urban Logistics” TURBLOG_ww, Transferability of urban logistics concepts and practices from a worldwide perspective Ripa, F., Lozzi, G., Mourey, T., Dondi, S. (2017). NOVELOG - city logistics and Cities & Regions Factsheets. http://novelog.eu/ Parcel a porter (2018, March). Retrieved from https://postandparcel.info/94729/news/infrastructure/parcel-a-porter/ Parcelly. (2017, October). Parcelly opens click&collect location at Hull University. Retrieved from https://parcelly.com/blog/180-parcelly-has-a-real-social-impact-onthe-community Parker, T. (2019, December). Semi-structured interview Parr, T. (2017, October). Keeping it clean – Hamburg street cleaners trial switch to etrikes, retrieved from https://www.rippl.bike/en/rippl-35-keeping-it-clean-hamburgstreet-cleaners-trial-switch-to-e-trikes/ Peters, B. (2020, April). Semi-structured interview Peters, B. TRASHH project of Stadtreinigung, Hamburg. [presentation] Portering – FTC2050 project (2018, May). Retrieved from http://www.ftc2050.com/portering/ Transport for Quality of Life Ltd and Bicycle Association. (2019). Potential for e-cargo bikes to reduce congestion and pollution from vans in cities. Steele, S. London’s Freight and Servicing Action Plan. [presentation] Steinhauser, S. (2019, December). Semi-structured interview 130

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SUGAR. (2019, July). City logistics best practices – A handbook for authorities Sys, C., Vanelslander, T., Carlan, V. (2017). Innovative concepts in the maritime supply chain TRASHH - Possible uses of cargo bikes in municipal companies. Retrieved from https://nationaler-radverkehrsplan.de/de/praxis/einsatzmoeglichkeiten-vonlastenraedern-kommunalen What is areaDUM. Retrieved from https://www.areaverda.cat/en/areadum/qusareadum Widegren, C. (2019, December). Semi-structured interview Xavier, C. (2020, April). Semi-structured interview

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