Mdes Research Report for FMP Delivery Vehicle

How should a delivery vehicle be designed to anticipate the rapid growth of e-commerce in developing cities?

James Ayre S.I.D. 4873864

M154ID – Research for Design and Reflective Practice Dec. 16

Abstract As global internet penetration rates continue to increase per year, more courier services find themselves fighting to provide efficient solutions to meet the demanding online consumer. This report will question common practises of today’s last mile by examining today’s problems and applying them to the future markets, services and of the delivery process to lead to a vehicle design brief.

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Abstract Contents Index of Figures Glossary of Terms

Research Report List of References Bibliography Appendices 4.1. Preliminary Research 4.2. What Factors within the B2C last mile cause inefficiencies?

4.2.1. What systematic problems can be solved through vehicle design?

4.2.2. How can delivery vehicle design itself be improved for the benefit of last mile efficiency?

4.2.3. How can location affect efficiency 4.3. What areas will expand at the fastest rate for the e-commerce sector and how can a new vehicle design be applied to the market?

4.3.1. Factors that lead to growth in e-commerce 4.3.2. Where should the vehicle be introduced?

4.3.3. How should the design perform to meet the requirements of the user?

4.4. What other design factors can improve a delivery vehicle?

4.4.1. What effect do drivetrains have on efficiency?

4.4.2. How can materials be used to improve the vehicle?

4.5. Existing Product Benchmark Conceptual Framework Project Planning Design Specification Design Brief

Index of Figures Figure 1: Global Retail E-commerce Sales Volume – Own recreation of (Chauhan, 2015) Figure 2: The Supply Chain- Own diagram Figure 3: Last Mile Matrix - Own Recreation of (Gevaers, 2009) Figure 4: Methods of fulfilment - Own Recreation of (Gevaers, 2009) Figure 5: Parcel Tracking 1 – Own recreation of Royal Mail Personal Tracking (2016) Figure 6: Parcel Tracking 2 – Own recreation of Amazon Personal Tracking (2016) Figure 7: Chinese Postman 1: Missed Delivery - Own recreation of (Gevaers, 2009).

Figure 8: Number of Missed Deliveries (Survey Data) Figure 9: Chinese Postman 2 – Time Windows Own recreation of (Gevaers, 2009).

Figure 10 Total Inefficiencies of a Delivery Driver’s Shift – Own Diagram Figure 11: Existing Standardised Parcel Dimensions – Recreation from (Royal Mail, 2016) Figure 12: Survey Data Organised into UK Standardised Parcel Sizes (Royal Mail, 2016) Figure 13: Effects of Customer Density on Efficiency – Own recreation of (Boyer, 2009) Figure 14: Internet Penetration Growth – From statistics supplied by (Internet Live Stats, 2016).

Figure 15: Digital Buyer Penetration Rate – Combination (Statista, 2016) Figure 16 Population and Class Growth – Own image from data supplied by (Donatelli, 2016) Figure 17 Leading Retail E-Commerce Categories in Brazil – Own recreation of data supplied by (eMarketer, 2015) Figure 18: Leading Retail Categories by Standard Parcel Size – Data supplied by (Royal Mail, 2016) and (eMarketer, 2015) Figure 19: Existing Standardised Parcel Dimensions – Recreation from (Royal Mail, 2016) Figure 20: Parcel Deliveries by New System – Own Diagram Figure 21 Updated Parcel Sizes – Own Diagram Figure 22 Application of population data to Parcel Size - (eMarketer, 2015), (Royal Mail, 2016) Figure 23: Product Benchmark

Glossary of Terms Supply chain: The sequence of processes involved in the production and distribution of a commodity

The last mile: The final step of the supply chain before arriving to the consumer’s home

Brick and mortar: A description of a company that makes use of a retail store, factory or production facility

B2C / B2B: Business to Consumer / Business to Business delivery.

Internet penetration: The percentage of total population that has access to the web

Early adopters: A collective group who are fast to react to new technology or ways of thinking

DC: Distribution Centre, an area that parcels are stored and sorted before being dispatched to the consumer

Cluster / Collection Point: A public space where multiple parcels can be held at once.

Fulfilment: The sorting process performed inside a DC to prepare a vehicle for a route

Drops: Parcels being delivered can be referred to as drops.

E-Commerce: Any form of online sale

E-Store: Electronic store or internet shopping site.

Chinese Postman Algorithm: A method of observing a vehicle route without mapping exact points and true roads

Hub and Spoke A distribution centre acts as the area hub where a fleet of vehicles can supply the surrounding consumers

Research Report The delivery drivers of today are being exploited by some of the largest companies in the ecommerce market, (McLeod, 2016). Claims of dangerous driving and an illegal wage have become known in the media recently, evidence that the companies are struggling to meet the needs of a rapidly growing and ever more demanding client.

1600

Global Retail E-commerce Sales Volume from 2009 to 2018 (Billion US Dollars)

1400 1200 1000 800 600 400 200 0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Figure 1: Global Retail E-commerce Sales Volume – Own recreation of (Chauhan, 2015)

For the industry of online shopping, a low cost and flexible supply chain is a necessity to bring competitive pricing to the market when consumers have the benefit of immediate price comparison websites and fierce competition from other suppliers trying to get their share of the marketplace. Depending on the product, a supply chain can be a long and expensive process, see appendix 4.1.

Figure 2: The Supply Chain- Own diagram

The delivery of goods from distribution centre to the consumer can count for up to 75% of overall supply chain costs (Gevaers, 2009). Many suppliers are pressuring the delivery system to ensure that the job is done at the lowest cost and that demand is met, however, the systems are at full speed, despite the continuing growth of the market and the huge amounts of money being invested into sectors of last mile delivery.

As the e-commerce sector continues to grow, companies must ensure that supply continues to flow effectively through to the consumer. By examining the various problems in current delivery vehicle design and systematic problems, this report will explain the benefits that a new vehicle design could have on efficiency of the last mile and how this could be applied to a rapidly developing market to support the growth of online shopping in the area whilst portraying a forward-thinking company to the rest of the world.

Many companies offer more flexible distribution methods, like the use of decoupled supply chains, indirectly meeting the needs of the customer, (Gevaers, 2009) predicts that some alternative parcel delivery methods make a saving of 42% of the cost.

Figure3: Last Mile Matrix - Own Recreation of (Gevaers, 2009)

Figure 4: Methods of fulfilment - Own Recreation of (Gevaers, 2009)

Despite the industry offering flexibility and diverse distribution, the unpredictable nature of the consumer still causes major disruptions in the last mile. Whether it be that the consumer is not at home to receive goods upon arranged delivery or the option of individual time slots choices, that drag the driver away from the most efficient route, see appendix 4.2.1.

Figure 3: Chinese Postman 1: Missed Delivery - Own recreation of (Gevaers, 2009) Figure 9: Chinese Postman 2 – Time Windows Own recreation of (Gevaers, 2009)

Not all last mile inefficiencies are caused by the consumer. Through observation, survey and desk based research, a variety of vehicle design inefficiencies have been located and reviewed as their role in raising costs and adding pressure to drivers and companies, see appendix 4.2.2.

Figure 4 Total Inefficiencies of a Delivery Driver’s Shift – Own Diagram

The problems that this new market has created can be understood and used to the advantage of the late adopters of the internet. Using our markets as a glimpse into the future for their own, a courier company would be able to combat the afore mentioned problems and use them to their advantage when the need to supply online purchases to their consumers predictably arrives, see appendix 4.3.

The Brazilian markets can be predicted to show great promise for the future of e-commerce, when looking at the staggering growth of their online population. However, internet use alone does not lead directly to sales. There can be many different restraints on the success of e-commerce, for example, security, trust and other local problems can delay growth in this sector, however, global growth is still (eMarketer, 2014) and these countries will eventually adapt.

Brazil has been chosen as the example location because of the predictable future that it holds in this sector, see appendix 4.3.2. For this report, Brazil will be used as an example to observe how a new delivery vehicle could be introduced. The study will allow the project to be applied to a real situation, testing functions with data to create criteria that the new design must follow.

Digital Buyer Penetration

%

90 80 70 60 50 40 30 20 10 0

2015

2016

2017* Brazil

2018* 2019* YEAR Mexico UK

2020*

2021*

Figure 5: Digital Buyer Penetration Rate – Combination (Statista, 2016)

Figure 6: Internet Penetration Growth – From stats supplied by (Internet Live Stats, 2016).

With the Brazilian economy growing substantially in recent years, see appendix 4.3.1. (Class change and growth) the massive population are now 80% (Donatelli, 2016), class A/B/C, this is leading the population to move to the large cities to find a better life. As the internet becomes more popular over time and more products are bought online, companies will soon feel the daily pressure to deliver effectively, with a population of over 20 million people, Sao Paulo will experience dramatic growth, more so than anywhere else in brazil.

Figure 15 Population and Class Growth – Own image from data supplied by (Donatelli, 2016)

To supply parcels to the massive population, a distribution centre must be established for a suitable number of consumers in the area, see appendix 4.2.3. Observing the city’s demography, the South-Western prefecture, Santo Amaro makes a good example location.

The mainly ‘C Class’ prefecture is positioned next to many of the city’s high class neighbourhoods, according to (Expat Arrivals, n.d.) Santo Amaro is home to 238,000 people, see appendix 4.3.2, the area can be predicted to create over 4,000 parcels for one company, each day by 2021. To deliver such a high number of parcels, the labour must be split into routes, to be successful, the vehicle must be able to deliver its fraction of the parcel comfortably. The delivery could depend on volume of vehicle, distance of route or the time that it takes to deliver.

A volume of parcels can be calculated using standardised parcel sizes, see appendix 4.2.2.

(Parcel Size). From studying the purchasing habits of the Brazilian population and applying it to the afore mentioned Santo Amaro delivery prediction it is possible to understand the average volume of parcels to leave the DC daily, see appendix 4.3.3.

Figure 8 Updated Parcel Sizes – Own Diagram

Figure 7 Extremely important developments (KPMG, 2014)

The observation of new technologies plays an important role in the design of an efficient vehicle, however certain appealing technology like electric vehicles have major limits for the vehicle functions of range, see appendices 4.4.1 and ‘Existing product benchmark’.

Although electric drivetrains still have set backs compared to their diesel counterparts, companies can make major savings across their fleet by combining the savings from petrol with investments into alternative materials. Although the vehicle may have high upfront costs, in the long term this will have major effects on profit and parcel pricing. See appendices 4.4.1 and 4.4.2.

The new design must apply what has been learnt from this report to introduce an informed solution to the stresses that will arise in Sao Paulo, or any other city with internet and the will to purchase online.

List of References Donatelli, M. (2016). Meet the new Brazilian customer. Retrieved Nov 12, 2016, from McKinsey & Company: http://www.mckinsey.com/industries/consumer-packagedgoods/our-insights/meet-the-new-brazilian-consumer eMarketer. (2013). More Buyers Join Brazil's Robust Ecommerce Market. Retrieved Nov 4, 2016, from eMarketer: https://www.emarketer.com/Article/More-Buyers-JoinBrazils-Robust-Ecommerce-Market/1009725 eMarketer. (2014). Worldwide Ecommerce Sales to Increase Nearly 20% in 2014. Retrieved Nov 15, 2016, from eMarketer: https://www.emarketer.com/Article/WorldwideEcommerce-Sales-Increase-Nearly-20-2014/1011039 eMarketer. (2015). Brazil Ranks No. 10 for Retail Ecommerce Sales Worldwide. Retrieved Nov 3, 2016, from eMarketer: https://www.emarketer.com/Article/Brazil-Ranks-No10-Retail-Ecommerce-Sales-Worldwide/1011804 eMarketer. (2015). Brazil Ranks No. 10 for Retail Ecommerce Sales Worldwide. Retrieved Oct 10, 2016, from eMarketer: https://www.emarketer.com/Article/Brazil-Ranks-No-10Retail-Ecommerce-Sales-Worldwide/1011804 Expat Arrivals. (n.d.). Areas and suburbs in Sao Paulo. Retrieved Oct 18 2016, from Expat Arrivals: http://www.expatarrivals.com/brazil/sao-paulo/areas-and-suburbs-in-saopaulo Gevaers, R. V. (2009). Characteristics and Typology of Last-Mile Logistics from an Innovation Perspective in an Urban Context. Retrieved from http://www.wctrs.leeds.ac.uk/wp/wpcontent/uploads/abstracts/lisbon/general/01457.pdf.

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Appendices Preliminary Research Outline the supply chain Aim: To understand what processes products must go through before getting to the consumer.

Objective: Create a story board of events to inform the reader about the overall scale of the process and the positioning of where the new design will be applied.

Strategy: Desk based research Sources: Fernie, J. (2009). Retail Logistics in the UK: Past, Present and Future. Retrieved Nov 13, 2016, from Stir: http://storre.stir.ac.uk/bitstream/1893/2867/1/Fernie%20et%20al%20probably%20f inal%20version.pdf Gevaers, R. V. (2009). Characteristics and Typology of Last-Mile Logistics from an Innovation Perspective in an Urban Context. Retrieved from http://www.wctrs.leeds.ac.uk/wp/wpcontent/uploads/abstracts/lisbon/general/01457.pdf.

Klein, J. (2015). Logistics: Increasing Efficiency in the Last Mile of the Supply Chain. Retrieved Nov 2, 2016, from Engineering 360: http://insights.globalspec.com/article/522/logistics-increasing-efficiency-in-the-lastmile-of-the-supply-chain Lowe, R. (2014). The Last Mile. Retrieved Oct 25, 2016, from Barclays: https://www.barclayscorporate.com/content/dam/corppublic/corporate/Document s/research/The-last-mile-report.pdf Saunders, K. (2014). Cerasis - Logistics and Supply Chain Facts of 2014. Retrieved from http://cerasis.com/2015/01/16/supply-chain-facts/: http://cerasis.com/2015/01/16/supply-chain-facts/

Conclusion Supply chain: Before studying last mile inefficiencies, it is important to gain an understanding of the overall process of the supply chain. The supply of goods to consumers often follows a standard procedure:

Figure 9: The Supply Chain- Own diagram

In most cases, supply chains follow this route: Raw materials are processed in the manufacturing industry. Following completion, they are shipped to a distribution warehouse and sorted. There are then two key methods for a consumer to receive goods, freighting the goods to a ‘brick and mortar’ retailer or direct to consumer delivery, this is known as the last mile part of the chain.

It is well known that for an organisation to be successful in whatever sector they are involved, they must effectively manage the movement of materials, goods, information and money through their entire company, every part of this process is known as the supply chain. A supply chain can vary in size and complexity depending on the scale of the project or nature of the goods that are being processed, some may cause problems like delays and delivery problems, causing consumer dissatisfaction and therefore, loss in sales. Some of the largest companies in the world state that their success was created through effective supply chain management.

The figure above explains how a simple linear supply chain connects a supplier of individual goods or raw materials to the manufacturer. The diagram shows goods leaving the manufacturer to be dispatched through distributors and retailers, eventually to the consumer. This essay will be focussing on the various methods of delivery for ‘the last mile’ of the supply chain.

Define the Last Mile Aim: To understand what is meant by the last mile and to explore what variations the industry currently uses to ensure that customers receive goods.

Objective: Use online journals to explore how other studies have defined the Last Mile and use the collected information to explore the different methods of parcel distribution that are currently in use by companies in a developed delivery markets, confirmed by a personal study into parcel delivery methods. This will then supply enough information to later assess what strategies in the last mile are efficient and why, creating a more informed design.

Strategy: Desk based research, Primary Research Sources: Boyer, K. (2009). The Last Mile Challenge: Evaluating the Effects of Customer Density and Delivery Window Patterns. Retrieved Nov 2, 2016, from Research Gate: https://www.researchgate.net/publication/229886685_The_Last_Mile_Challenge_E valuating_the_Effects_of_Customer_Density_and_Delivery_Window_Patterns Gevaers, R. V. (2009). Characteristics and Typology of Last-Mile Logistics from an Innovation Perspective in an Urban Context. Retrieved from http://www.wctrs.leeds.ac.uk/wp/wpcontent/uploads/abstracts/lisbon/general/01457.pdf Lowe, R. (2014). The Last Mile. Retrieved Oct 25, 2016, from Barclays: https://www.barclayscorporate.com/content/dam/corppublic/corporate/Document s/research/The-last-mile-report.pdf Saunders, K. (2014). Cerasis - Logistics and Supply Chain Facts of 2014. Retrieved from http://cerasis.com/2015/01/16/supply-chain-facts//

Results: The Last Mile: B2C last mile is the last stretch of a parcel delivery to the final consignee, the parcel may be received at home or at a cluster or collection point (Gevaers, 2009). Deliveries to consumers involve low volume drops of standardised size parcels, often performed on a designed route to increase efficiency.

On the other hand, last mile delivery can involve a B2B transaction, in this case deliveries are usually of higher volume per drop and can be more specialised, a large truck would usually be more suited to this type of delivery as it is more capable to handle large loads and more efficient in many ways than having a fleet of small vans deliver to the same address.

Methods of Parcel Reception: Gevaers (2009) created a matrix to describe the various methods of parcel delivery using two variables; order fulfilment and delivery.

Figure 10: Last Mile Matrix - Own Recreation of (Gevaers, 2009)

From this matrix, it can be established that ‘Semi-Extended’ supply chains pick goods from a brick and mortar shop and deliver to the customer indirectly, this can be through collection points or through cluster systems, usually in the form of secure lockers. A ‘Fully-Extended’ supply chain uses the same method of picking but delivers straight to home. Some systems don’t make use of brick and mortar locations, usually a shop that is based solely online, deliveries are then dispatched directly from a distribution centre. In many cases DCs can be shared by multiple online companies. The ‘Decoupled’ supply chain uses a DC to dispatch goods but do not use home deliveries. Finally, a ‘Centralised Extended’ supply chain uses DCs to deliver goods to people’s homes.

The following diagram represents the multiple ways that a consumer can receive goods after purchasing online, the diagram is a more detailed extension of the Delivery / Fulfilment Matrix and should be referred to when assessing efficiencies of each method.

Figure 11: Methods of fulfilment - Own Recreation of (Gevaers, 2009)

Here we can see the last mile broken down into more detail, however, the matrix is still useful as a classification of each process. The diagram gives a clearer view on order fulfilment by explaining it in ways that we use in our daily lives to collect parcels. It is possible to assess each process and create a cost and convenience for each method of delivery. When a product is dispatched from a distribution centre for delivery, there is a variety of problems that can cause inefficiencies that the delivery company may be unaware of, these problems will be examined in more detail later in this paper to leave a conclusion of inefficiencies and solutions. Using the matrix and the knowledge found in later appendices, it is possible to combine solutions and more detailed types of reception after observing the costs and problems to create the most efficient solution from all aspects of last mile delivery.

To observe a developed delivery system a delivery was tracked from an online store to the customer. This was a useful task to examine the exact route and methods that are applied to the UK’s developed delivery market from online shopping.

Figure 12: Parcel Tracking 1 – Own recreation of Royal Mail Personal Tracking (2016)

In this case, the order was a medium sized parcel bought from a fully online shop.

(Centralised Extended Supply Chain). The product was sent via a standard 2-day delivery and the company chosen performed effectively to transfer the parcel through the following steps to be received on time to the home. The process shows the distribution centre making use of the outbound delivery supplied by Royal Mail to take the parcel to a regional hub and where multiple parcels can be bundled together and loaded onto a larger truck to be shipped to a different region of the country. The parcel is then distributed through the local network to the closest DC to recipient. The product is loaded into a compact panel van for a planned route to be delivered to recipient who is aware of delivery time due to the automated system that texts recipients an estimated time of delivery. The delivery location is 2.7 miles from the hub.

Figure 13: Parcel Tracking 2 – Own recreation of Amazon Personal Tracking (2016)

The figure above has been used as an example of a different method of delivery from another online order. In this situation, the company specialise in completely online orders, making use of a distribution fulfilment centre as effectively as possible. From this company, orders can be received through multiple methods. Offering multiple variations of delivery is a good way to gain a larger customer base, some people know that they will not be at home at any time of delivery, and so, they choose to select a method that is more suitable. This company provide lockers for consumers to receive their goods, these lockers are often positioned somewhere secure, often near shops and other public facilities. A Decoupled Supply Chain method was selected for this example order, for a next day delivery. The consumer knows the location of the locker, as it’s positioned in a central hub of a community and will be close by on the time of delivery.

The order is received at a local fulfilment centre and a van is loaded to stock various lockers around the city. The locker unit is stocked with the order and the PIN password is reset for the next customer. The consumer is notified of each process with the new code and collects their goods at a time that suits them best. The parcel is a large, lightweight envelope and is collected at 1p.m.

Although the locker is extremely convenient for many consumers, if the parcel is collected at mid-day there can be many wasted lockers before the next day stock is added. It could be of benefit to create a moveable locker system that can adapt to consumer demand and density. This would be useful as the locker would be able to supply the public in many areas in different time windows, however, it could be a challenge to provide such a service as the parcel may stay for three days inside on cabinet until it is removed and taken back to distribution.

To create a more informed design, it is important to understand these methods and the inefficiencies related to each one and how the delivery company have performed well, it will then be possible to creatively incorporate each effective part of the process into the new design with justification.

4.2. What Factors within B2C Last Mile Cause inefficiencies?

The last mile can be responsible for 13% to 75% of the total cost of current supply chains (Gevaers, 2009). There are a variety of problems in the last mile process, through the next section I will address the inefficiencies and examine their potential role in a new vehicle design.

4.2.1.

What systematic problems can be solved through vehicle design?

Aim: To address individual inefficiencies and examine their potential role for a new vehicle’s design Objective: To assess each inefficiency involved in current B2C last mile systems and calculate the time wasted from a total route, this will give a timed result that the new design can be gauged against later.

Method: Desk based research, literature review and video review.

Sources: Boyer, K. (2009). The Last Mile Challenge: Evaluating the Effects of Customer Density and Delivery Window Patterns. Retrieved Nov 2, 2016, from Research Gate: https://www.researchgate.net/publication/229886685_The_Last_Mile_Challenge_E valuating_the_Effects_of_Customer_Density_and_Delivery_Window_Patterns CNNMoney (Producer). (2012). FedEx's electric truck challenge [Motion Picture]. Retrieved Nov 21, 2016, from https://www.youtube.com/watch?v=eDHJCM-P9k0 CThompson (Producer). (2016). Life As a FedEx Driver [Motion Picture]. YouTube. Retrieved Nov 25, 2016, from https://www.youtube.com/watch?v=TrLMMIyvP9g CThompson (Producer). (2016). Life As A FedEx Driver Part 2 [Motion Picture]. Retrieved Nov 28, 2016, from https://www.youtube.com/watch?v=LWsjtHV-_88&t=911s DW (Director). (2012). Parcel Delivery Feels the Pressure - Profiting from e-commerce [Motion Picture]. Retrieved Nov 21, 2016, from https://www.youtube.com/watch?v=nvKu3F1TZns Gevaers, R. V. (2009). Characteristics and Typology of Last-Mile Logistics from an Innovation Perspective in an Urban Context. Retrieved from http://www.wctrs.leeds.ac.uk/wp/wpcontent/uploads/abstracts/lisbon/general/01457.pdf.

IMRG. (2015). IMRG metapcack UK Delivery Index Report. Retrieved Nov 9, 2016, from Metapack: https://www.metapack.com/wp-content/uploads/2015/09/MetaPackAugust-2015-Delivery-Index-July-20151.pdf Inman, R. (2010). A Day in the Life of a FedEx Driver. Retrieved Nov 4, 2016, from AOL: http://www.aol.com/article/2010/05/28/fedex-home-delivery-driver/19385158/ McLeod, B. (Producer). (2016). Inside Out - An Inside Out special [Motion Picture]. UK. Retrieved Nov 11, 16, from http://www.bbc.co.uk/iplayer/episode/b082r62y/insideout-16-inside-amazon-an-inside-out-special#group=p02q33dg IMRG. (2015). IMRG UK Consumer Home Delivery Review 2015. Retrieved Nov 13, 16, from IMRG: http://reports.imrg.org/ConsReview2015

Loading cargo In established distribution centres around the UK, each driver will spend an estimated 1 hour every morning loading their van (McLeod, 2016)this totals to 9% of the legal limit each driver is permitted to work per day. At the end of a shift, undelivered parcels must be unloaded for repeat sorting at the distribution centre for redelivery the following day, this is also the time that companies sort the outgoing parcels that are collected throughout the route.

Loading cargo into a vehicle in UK companies is usually performed by the driver and is their responsibility to sort parcels into a suitable order for the route ahead. The tiring task of moving over one hundred parcels into the vehicle is performed at the start of the day and, if done poorly, can impede the driver’s efficiency throughout the day creating anxiety for an already pressured driver.

On the other hand, different studied companies made use of another employee to load the vehicle before the driver arrives, attempting to provide a solution for the afore mentioned problem of tiring the driver before his shift. This would be effective, but drivers often discover problems mid-route and some parcels are not scanned into the delivery routing system before being loaded to the van.

The improved design must eliminate this problem to allow the driver to remain relaxed throughout the route. A driver who is content works effectively and represents the company positively when delivering goods to the consumer.

‘Not at home’ According to the (IMRG, 2015) review, 1/10 deliveries fail because the customer is not at home to receive the item. Some major companies expect their drivers to make 200 drops per day, averaging to 3.3 minutes per drop. Costing 88 minutes per shift. However, another study found that approximately 30% of deliveries failed first time depending on the type of product (Fernie, 2009).

The effect of a missed delivery be dramatic for the system’s overall efficiency. Not only does a failed delivery waste time on the planned route, wasting time and petrol, but it is also common practice is to offer customers redeliveries of the item over the next two days creating more work for the driver and adding more parcels to the next day’s route, this backlog of parcels means that delivery companies struggle to create profit from the parcel, potentially raising the average price of delivery to cover their losses.

Figure 14: Chinese Postman 1: Missed Delivery - Own recreation of (Gevaers, 2009).

The ‘Chinese Postman’ algorithm shows the total route of the vehicle in relation to distribution centre over two consecutive days. From the diagram, the repeat attempt for delivery to the same destination on ‘Day 2’ is visible where the two routes meet at the same node.

A survey was taken to support this information. The survey contained 33 internet users, where all candidates had purchased at least one product from online shopping. The survey asked for details regarding failed delivery attempts. From the five most recent deliveries from online purchases, a percentage can be calculated of the likelihood that they will miss a delivery.

The survey suggests that almost 34 percent of online consumers are likely to miss at their first delivery. With almost 80 percent admitting that they have missed at least one recent delivery.

How Many Recent Deliveries have you Missed?

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For a more efficient design, I should incorporate notification technology to inform customers that the package is near delivery location to decrease the amount of ‘not at home’ situations. Lowering the likelihood of a parcel failing to be delivered will create a lower cost and more efficient service.

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Time windows A key contributor to inefficiency within a last mile system is the offer of time specific windows, these have become extremely popular in developed markets. Naturally, the online shopping market will choose the most convenient time to receive their goods, however, it should be noted that the smaller the gap that is offered, the more likely it will become that the consumer will not be at home to receive the goods.

Route planning is an extremely complex task and can cost a company millions of dollars to develop efficient systems. For this analysis I will use a simple ‘Chinese Postman’ algorithm to describe the effects of short time windows compared to a system with no time windows.

Figure 16: Chinese Postman 2 – Time Windows Own recreation of (Gevaers, 2009).

From the figure above, it is evident that time windows cause the transporting vehicle to cover more distance across the same area when compared to the basic no time window option. When designing an efficient vehicle, this effect should be considered but not ignored due to consumer demand. If the new design can combat this using other methods of delivery or a creative system, the design should be a great improvement to efficiency and to cost of delivery, an important factor, considering the perception that online shopping is better value than traditional shops.

In order to offer time windows successfully, the consumer must be kept informed with notifications of the progress of the parcel as it progresses through the route. By notifying the consumer it is possible to lower the amount of missed deliveries when offering short time windows. Notifications can be automatically produced as parcels are dispensed from the cargo hold of the vehicle, allowing the driver to freely perform delivery tasks.

During the loading process of the vehicle, the designed route will be packed into the van in the correct order, for the drivers to receive each parcel as they deliver without having to question or calculate what parcel is next.

It is vital that the new vehicle will be able to supply such choices to the consumer as the online markets become ever more demanding for low cost, high quality service, although offering time windows is highly inefficient, the design must overcome this.

4.2.2.

How can delivery vehicle design itself be improved for the benefit of last mile efficiency?

Driver Observations Aim: To understand system and vehicle design inefficiencies that currently add pressure to the delivery process by observing the interaction between driver and vehicle / system.

Objective: Collect a series of observations that focus on the main vehicle design, interaction with drivers, interaction with customers and any systematic problems that currently exist from the view of drivers and users. Compile notes on problems and assess each role in a new design.

Method: Observe a delivery driver on their route to collect data on problematic features in current design.

View online videos to confirm data, research more problems from different markets and observe different users in different vehicles.

Sources: CNNMoney (Producer). (2012). FedEx's electric truck challenge [Motion Picture]. Retrieved Nov 21, 2016, from https://www.youtube.com/watch?v=eDHJCM-P9k0 CThompson (Producer). (2016). Life As a FedEx Driver [Motion Picture]. YouTube. Retrieved Nov 25, 2016, from https://www.youtube.com/watch?v=TrLMMIyvP9g CThompson (Producer). (2016). Life As A FedEx Driver Part 2 [Motion Picture]. Retrieved Nov 28, 2016, from https://www.youtube.com/watch?v=LWsjtHV-_88&t=911s DW (Director). (2012). Parcel Delivery Feels the Pressure - Profiting from e-commerce [Motion Picture]. Retrieved Nov 21, 2016, from https://www.youtube.com/watch?v=nvKu3F1TZns McLeod, B. (Producer). (2016). Inside Out - An Inside Out special [Motion Picture]. UK. Retrieved Nov 11, 16, from http://www.bbc.co.uk/iplayer/episode/b082r62y/insideout-16-inside-amazon-an-inside-out-special#group=p02q33dg Journal-Register, T. S. (Director). (2010). UPS driver David "Jake" Jacob [Motion Picture].

Retrieved Nov 25, 2016, from https://www.youtube.com/watch?v=yptavMPaAgU&t=11s

Video 1 Observations / Review: BBC ‘Inside Out – Inside Amazon’: •

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Large companies are exploiting agency delivery drivers, putting them under pressure by expecting large amounts of deliveries per route whilst underpaying them for their time.

Drivers are forced to take risks by using damaged vehicles to keep up with demand.

Driver’s lives have been ‘‘terrible’’ – Jenny Parry, who also said that she wouldn’t have expected this behaviour from a well-known business.

Pressured drivers must run between drops and drive dangerously to keep up with the company’s expectations.

An interviewed driver stated that he has had minor collisions in the past but ignored them to complete the route.

Drivers are told by their managers that if they want to keep their job they must drive quickly, however, it is their responsibility and licence if they are caught.

An undercover reporter drives for the company, when on the designed route, he drives to the rules of the road and finds it impossible to deliver the required number of parcels in one shift and must work overtime to complete the job, however, his shift is already eleven hours long and legally cannot work more than two hours of overtime.

Peter Rodger, Institute of Advanced Motoring – “The layers of safety are being stripped away’’

Video 1 Conclusion: For a delivery company or online shopping site to maintain a good reputation and avoid negative press, the company must manage the supply of goods to consumers effectively. To succeed in supply and public relations, a company should not allow employees to feel exploited and pressured to work more effectively than legally possible. The company in this video will need to protect themselves from more negative press in the future, perhaps even show an idea of forward thinking, this can be done through a design that decreases the pressure for workers yet still increases their work rate capabilities. The outcome of this video has shown how the current system for online delivery is failing through various major problems, for example, safety of public and drivers, lack of ability to supply to demanding clients and stressed or exploited employees.

Video 2 Observations / Review: The State Journal – Register – UPS Driver David ‘Jake’ Jacob •

Large vehicle appears to be difficult and stressful to drive. The driver must be more aware and alert of his surroundings than when driving smaller vehicles, causing stress and fatigue.

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Driver complains about the dangers of others on the road and how it is a challenge to safely drive a large delivery truck

Video 2 Conclusion: Drivers of current delivery vehicles are spending more energy than necessary to safely manoeuvre their vehicle through inner city streets. By reviewing videos, it is visible that current delivery trucks used for online shopping markets have capabilities to carry a far higher load than would ever be possible for the driver to deliver in one route, companies use the same vehicle across multiple disciplines of delivery. A driver exerts high amounts of energy when dealing with the stresses and dangers of driving an oversized vehicle, this is a completely inefficient use of energy and could be used elsewhere if a vehicle can reduce this problem.

Video 3 Observations / Review: CThompson1135 - ‘Life As A FedEx Driver’ A Vlogger posts about his life as a delivery driver, discussing the challenges of each process and shows how he performs various tasks across his entire shift.

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Delivery driver arrives at the distribution centre ready to start his route, however, packages are not sorted into the cargo hold of the vehicle correctly and have fallen into the central walkway through the vehicle. The driver takes time to reposition parcels into the correct locations before leaving for his route.

Driver comments that the sorting of parcels takes time for a new driver to get accustom to and says that it can be a hindrance on a new driver’s efficiency.

The vlogger explains that drivers like the companies hand-held scanning system, stating that it saves time and adds organisation to the 70+ parcels on his shift, however, later the video shows the same system being hard to use and not registering some parcels, creating more work for the driver at the end of the shift.

The vlog gives an example of a usual parcel drop; Driver states that he isn’t stressed and does not need to run as he has reasonable time allocated for the drop. His process goes as follows: o Stops vehicle o Locates the recipient address o Takes time to think about what parcel he will be delivering o Opens tailgate and locates parcel amongst a disorganised cargo space o Scans the object with the handheld system o Walks to delivery address, rings the doorbell, places parcel on doorstep and returns to vehicle (usual protocol for non-signature parcels) The time taken for this process is 1m23s.

The next stop shows the driver accessing a gated community, using multiple gates and codes slows the driver down by having to call the owner of the parcel. The driver was unaware that this stop would take more time and is now behind on deliveries.

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The video displays how the scanner alerts the driver that the next parcel requires a signature on delivery, the machine creates a new sound after scan and the driver remarks that this part of the design works well.

Whilst on the delivery route, the driver has had to return to the same delivery address twice after confusion between multiple delivery addresses in one building (block of flats or work place).

The route system has not alerted the driver effectively about upcoming routes. At the end of the shift, the driver must deliver the parcel that has been missed. The total journey has taken the driver far longer to complete than expected because of this set back.

The cab interior of the vehicle is also a key part of the video, the driver explains how the vehicle accommodates him and the failures of some functions. The interior is extremely dirty and used, many parts are bolted on to meet new needs of the driver, for example, a USB port for charging devices and a fan to cool the driver in the hot climate, the original air conditioning has broken. The driver makes use of the storage areas on dashboard to place hand held readers, pens, headphones, and drinks.

The vehicle is returned to the hub at the end of the shift, there are many large vehicles already parked inside the hub and the driver finds it difficult to park his vehicle into the bay.

Video 3 Conclusion: Video 3 supplied high amounts of useful information, the video explains the various problems that drivers face in another country. The driver shows his personal view on matters that can be categorised and used later for many aspects of design of a new vehicle for his sector. The main design inefficiencies for this driver came from lack of organisation, in multiple situations the driver is delayed by the vehicle design or the on-board system design that is hard to use and can be confusing to a busy driver. Large delays and stress were caused by inefficient use of rear cargo hold of vehicle, the company uses shelved units through the length of the vehicle to allow the driver to organise parcels to a delivery order that suits him, however, this design has created confusion between drivers, some find it hard to sort parcels quickly into an order, later impeding their speed. The largest short coming of the shelving design were visible when parcels had fallen in transit. Poor organisation of parcels also slows down new drivers that aren’t accustom to the job, meaning that a company must assign less parcels to this driver for some time, this problem can be removed if a design focusses on organisation for the driver. The main support for the driver, other than the vehicle, is the hand-held device used to scan and register each parcel as it comes on and off the van, takes signatures from customers, alerts the driver of different situations and gives a count of how many parcels the driver must deliver for the remaining route. Although the driver sees this device as a positive support to the route, the device is heavy and non-ergonomic, with many faults relating to parcel count. If the device, and its relationship to the system and driver, was to be improved, it would become a far better support.

A simple process of stopping the vehicle, collecting a parcel, and walking to a close house has taken the driver 1m23s. If a driver uses a similar technique in the UK, to deliver 150

parcels this simple process would cost them 3h45m per shift. This number has been collected from one example, however, this has been used as a base as it an ideal situation where there driver hasn’t been delayed by any other problems. It would seem that just over 1 minute to perform vital task is very efficient, however, there could be various major vehicle design and system improvements that could boost this efficiency. Automated stopping for the vehicle would allow the driver to prepare for his departure with other objects in hand. On screen displays and on board sounds could aid the driver in quickly locating the house that is being delivered to. The drivers would benefit greatly if the next parcel for delivery was readily available for them to access as they leave the vehicle or collect on route to delivery location. The parcel could already be scanned and the system could be updated without interaction from the driver, this system could then be used as a notification alert for the customer on their device inside the house, similar to a door bell, preventing long waiting times at the home.

Gates and security systems also slow the vehicle when entering different communities across the city. A new design could use RFID or other devices to allow access to gated communities or other similar systems whilst alerting the consumer that the delivery vehicle is arriving.

An easy to use GPS system would be another benefit to drivers. The GPS system could alert drivers of traffic problems or other routing issues, lowering their frustration by giving them an understanding of the overall city congestion and other information and giving them a sense of freedom. The GPS could also alert drivers of the type of area that they are delivering to, giving the driver knowledge of population density and how many drops they must perform to stay on target etc.

The video showed the trucks dirty and broken interior, to improve physical and mental wellbeing of the driver, the new design should combat this by giving the appearance of a clean and new interior, even as the vehicle is in use years later. The interior design should take into account how drivers use surfaces and open storage in vehicles and what they place in certain areas. The interior should be durable and utilitarian; however, it should also allow the driver to have pride in the vehicle and feel that they are using something designed for their needs.

As mentioned in other videos, this driver also struggles with the scale of the vehicle when arriving at the distribution centre at the end of a long shift, the vehicle is too large to manoeuvre through the tight and busy corridor easily and safely indoors. This could create major issues in the future as drivers are put under more pressure with growing orders.

Video 4 Observations / Review: CThompson1135 - ‘Life As A FedEx Driver part 2’ The vlog continues as a sequel, this time showing a new day with new challenges that the driver faces.

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6.a.m. the driver begins the video by stating that he is late to start as he is tired and lives quite far from the hub.

The driver shows his colleague’s truck, displaying the smaller packages that he will deliver to consumers only.

The vlogger’s vehicle is being packed by a ‘loader’ (another worker whose job is to fill vehicles for drivers) to be ready for the route ahead. The driver complains that the worker has not filled his van correctly and that this mistake will cost the driver time when mistakes are made. The driver prefers to arrive at the hub earlier so that he can have time to check for mistakes to prevent more delays.

Larger boxes overfill the truck, preventing effective use of the central walkway.

The driver explains that his hand-held system is not accurately displaying the amount of cargo on his van and is unsure of what is next on route.

The driver has to stop for fuel for the route ahead.

Video 4 Conclusion: The need for more organisation of the cargo area is reinforced when the video displays the methods that the company use when packing a truck for a route. The employee struggles to pack a van by misunderstanding orders presented to him through the hand-held scanning device. The driver arrives twenty minutes early each morning to ensure that the order is correct and that he understands that his parcels are organised. Misunderstanding and disorganisation can be eradicated through the implementation of a new register device, the device could be set by the loader and handed to the driver for each route, limiting the crossover of different technologies and devices.

The vehicle must have enough range for the route ahead. The driver must stop to refill his van with fuel. This is a major setback and most likely it will be off route. The new design could ensure that the vehicle can make all deliveries on one range by using an electric drivetrain that is charged inside the hub. Docking bays could be used to ensure the vehicle has enough charge or range to perform the route ahead and batteries could be charged as the vehicle is loaded.

Video 5 Observations / Review: DW – ‘Parcel Delivery feels the Pressure – Profiting from E-Commerce’ This short video from DW gives an overview of a German delivery driver for DHL Berlin. The driver solely focusses on B2C delivery and tells his view on how inefficiencies affect him.

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The driver starts a two hundred parcel route and is immediately slowed by the heavy traffic of the city at 8a.m., the driver is stressed by waiting and wants to be more efficient.

The video then shows another problem, having to wait for the customer to answer the door, the customer then stops to talk and delaying the driver a further 30 minutes for one parcel.

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The driver explains that he must show a positive face to customers, even if he’s frustrated, as he is the face of the DHL company and must act professional.

The system is most efficient when delivering to a place of work and blocks of flats, where many parcels can be delivered in one drop.

Video 5 Conclusion: The driver from Berlin shows his stress and frustration when stuck in major city traffic. This is part of his daily routine; however, the use of an electric drivetrain could be of benefit to the company. An electric drivetrain will produce minute amounts of noise pollution and could be used at alternate hours to current vehicles used today. The vehicle would have the benefit of being able to run to late night, offering more convenient time windows for consumers who would otherwise be at work in the day time whilst allowing the driver and system to avoid peak traffic times.

Again, the system would benefit from devices being able to alert the consumer that the parcel is arriving, before the doorbell rings, saving waiting time.

Study of different methods of delivery will be useful when looking at extremely dense population areas like office blocks or flats. The use of decoupled supply chains may be necessary when a system is pressured with large amounts of drops, using an indirect method for densely populated areas allows the driver to continue the route without major delays from customers in one area.

Figure 17 Total Inefficiencies of a Delivery Driver’s Shift – Own Diagram

Conclusion: After examining videos and vlogs describing the lives of a variety of employees from different companies, it is apparent that there are many possible improvements that can be made to improve the lives of delivery drivers and increase the rate of parcels that can be dispatched in one route.

Learning from each video conclusion, a series of inefficiencies can be addressed and organised into a chart to record times taken for each task performed on the route. The proposed improvements can be used when creating function requirements of the new vehicle, by doing so, a company can provide a much-needed service to the area whilst applying less pressure on its workforce.

Parcel Size Aim: To identify the effect that existing standardised parcels have on cargo space efficiency and understand how consumers feel towards parcel size.

Objective: Observe the packages that arrive at the consumer’s door and how effective they are for each category of parcel size used in the UK’s Royal Mail system, the study will allow the new design to have a more effective load area.

Method Questionnaire and primary observation of own parcels delivered from internet shopping.

Sources: Royal Mail. (2016). Size and Weights for UK mail. Retrieved Nov 15, 2016, from Royal Mail: https://personal.help.royalmail.com/app/answers/detail/a_id/89/~/size-and-weightformats-for-uk-mail Result: There is a frustration amongst many of the population that parcel sizes are too large for the goods that they receive from online orders. People often feel like the process is wasteful by the amount of packaging used and the contents of fillers that companies must use to ensure the object isn’t damaged at time of reception.

The current delivery system in the UK suffers from standard parcel sizes that aren’t accurate to the objects purchased from many of the consumers in today’s market. For example, a laptop is purchased online and the currier is selected as Royal Mail’s standard delivery service. The laptop in the protective packaging has the following dimensions: H490 x W430 x 120 mm, with a weight of 4kg. This packaging creates enough protection for the product and should not need more, however, to dispatch with Royal Mail the box would need to be placed into a categorised parcel.

Figure 18: Existing Standardised Parcel Dimensions – Recreation from (Royal Mail, 2016)

Due to the dimensions and weight of the product, the example company would use the ‘medium parcel’ from ‘Figure 10’ to organise and ship the product. This method of organisation is inefficient as the packages aren’t suited to the customer’s needs. This

example has shown that an inappropriate parcel dimension has lead the company to ship a 4kg laptop under the assumption that it is a 20kg parcel. This inappropriate packaging has now decreased the number of parcels that the vehicle will deliver in the day by increasing the cargo volume and adding assumed weight to the vehicle.

A survey of 33 internet users was taken to create further understanding of what parcels are being delivered to their door from internet shopping. The survey found that almost 82% of parcels that are delivered to these homes would fall into the ‘Small Parcel’ category provided by Royal Mail. With such a high amount of use of this parcel size, it can be said that either the surrounding parcels are too extreme in size or that there is not enough choice for products bought within range of the ‘Small Parcel’ category.

Figure 19: Survey Data Organised into UK Standardised Parcel Sizes (Royal Mail, 2016)

Conclusion: Parcels must be more adaptable for the consumer when designing for the modern markets of e-commerce and online shopping where parcel sales can be more easily predicted. By studying online purchasing habits, a new parcel system can be created that is more suited to the market, therefore, creating a less wasteful system that can supply the correct amount of goods without the need to overestimate parcel weights and volumes.

4.2.3 How can location affect efficiency?

Aim: To understand the effects of consumer density on the efficiency of a route.

Objective: Review past studies and data to gain a better understanding of how location choice effects efficiency. Use findings from review to inform the location selection process Method: Desk based research Sources: Boyer, K. (2009). The Last Mile Challenge: Evaluating the Effects of Customer Density and Delivery Window Patterns. Retrieved Nov 2, 2016, from Research Gate: https://www.researchgate.net/publication/229886685_The_Last_Mile_Challenge_E valuating_the_Effects_of_Customer_Density_and_Delivery_Window_Patterns Conclusion: Boyer K., (2009) observed the effects that population density has on the efficiency of a delivery route. Efficiency was measured by calculating the average distance travelled during a one hour time frame.

Effects of Customer Density

DISTANCE PER TIME CUSTOMER (MILES)

0.6 0.5 0.4 0.3 0.2 0.1 0

500

1000

1500 2000 CUSTOMER DENSITY

2500

3000

4000

Figure 20: Effects of Customer Density on Efficiency – Own recreation of (Boyer, 2009)

As demonstrated by the graph, there is a negative exponential relationship between miles per customer and the number of customers per area when a time slot option is provided.

The graph implies that an area with more than 3000 or more customers within the square mile will produce the most efficient route possible when only accounting for distance travelled between delivery.

Calculating the distance travelled is not only important information to specify the range required of the vehicle, but also the time spent driving, as the distance and driving times will always stay the same, even for a more efficient vehicle.

4.3. Applying efficiency to a suitable location: To establish a marketplace to introduce the new design I have observed trends that relate to growth within sectors of last mile delivery. After studying the variation in type of last mile delivery it is important to apply a suitable type to a market, this makes selecting a strong candidate important as this will determine many performance factors later in the process.

4.3.1.

Factors that lead to growth in e-commerce

Aim: To find a location that is currently adopting the use of internet at a faster rate than average, this should lead to more internet sales and finally, more deliveries from DC based stores.

Objective: Research multiple areas to find a country that has a dramatic rate of growth, then compare to an established market and the world average. A comparison between sets of data can help to understand which countries are connecting to the web at a faster rate than others.

Method Desk based research Sources: Internet Live Stats. (2016). Internet Users. Retrieved Nov 8, 2016, from Internet Live Stats: http://www.internetlivestats.com/internet-users/

Internet Penetration

Figure 21: Internet Penetration Growth – From stats supplied by (Internet Live Stats, 2016).

The scatter graph above explains the growth of internet penetration of a mature market (UK) and the Brazilian market, where the population are late to develop in this sector but are now firmly adopting the use of internet in their lives. The graph demonstrates that Brazil, in recent years, has risen past the world average penetration and it can be predicted that the use of internet in Brazilian homes will increase to a percentage similar to the UK. This type of growth gives way to investors and advertisers who create awareness of online shopping markets. .

Digital buyer penetration Aim: To observe the relationship between internet connection and internet purchasing.

Objective: Find statistics for digital buyer penetration rates, the rate at which a country adopts internet shopping as they gain connection to the web, for multiple countries from the developing markets to represent growth compared to an established market like the UK. Method Desk based research Sources: Brazil.Org. (2015). Sao Paulo - State. Retrieved Nov 23, 2016, from Brazil.Org: http://www.brazil.org.za/sao-paulo.html Donatelli, M. (2016). Meet the new Brazilian customer. Retrieved Nov 12, 2016, from McKinsey & Company: http://www.mckinsey.com/industries/consumer-packagedgoods/our-insights/meet-the-new-brazilian-consumer Statista. (2016). Digital buyer penetration in Mexico from 2015 to 2021. Retrieved Oct 20, 2016, from Statista: https://www.statista.com/statistics/252405/digital-buyerpenetration-in-mexico/ Statista. (2016). Digital buyer penetration in Brazil from 2015 to 2021. Retrieved Oct 20, 2016, from Statista: https://www.statista.com/statistics/252404/digital-buyerpenetration-in-brazil/ Statista. (2016). Statistics and facts about e-commerce and online retail in the United Kingdom. Retrieved Oct 20, 2016, from Statista: https://www.statista.com/topics/2333/e-commerce-in-the-united-kingdom/

Digital Buyer Penetration 90 80 70 60 %

50 40 30 20 10 0

2015

2016

2017* Brazil

2018* Mexico

2019*

2020*

2021*

UK

Figure 22: Digital Buyer Penetration Rate – Combination (Statista, 2016)

Conclusion: With the growth in accessibility to the internet, naturally, the amount of sales for e-stores rises. The expected growth of e-commerce is an important factor when considering a future delivery vehicle, the market must be anticipated to ensure that the vehicle will meet the demand of the consumer. The online shopping market is considerably different to traditional shops, consumers are more able to compare prices across the market and review products as they shop, these factors are forcing online markets into competition for prices and services. Delivery companies are experiencing massive growth in parcel deliveries as many online shops like Amazon rely completely on distribution centres to deliver goods and do not own physical stores where consumers can collect their purchase, not owning a physical store allows an online market to lower costs further.

Whilst there is an expected correlation between e-commerce and internet penetration, some countries struggle to adopt internet shopping into their lives, for example, Mexico has a slower rate than Brazil, current online stores cause this by not adapting to consumer needs (Pacheco, 2016).

Although some countries don’t adapt to internet shopping as quickly as others, they can still be predicted to use this market in the future. Due to Brazil’s population readily adapting to e-commerce, I have chosen the country to use as an example when for a more detailed study into what makes a location suitable.

E-commerce is rapidly growing in Brazil and it can be predicted to grow to 71% of total internet users by 2021. Last year in the UK, 77% of the online population purchased something through an e-store, figure 14 (TechinBrazil, 2015).

Comparing Brazil’s growth in online shopping and the UK’s current market, it is possible to establish that the problems within the UK’s current delivery systems will become a problem within the Brazilian market too, unless a new vehicle is created to anticipate this change and can meet today’s problems for this future market.

Class Change and Growth:

Figure 23 Population and Class Growth – Own image from data supplied by (Donatelli, 2016)

From a long term review of the Brazilian economy, (Donatelli, 2016) explained that GDP doubled and inflation slowed to a fraction of what it was over the past few decades. The review also explains that since the 90s there has been a boom in growth of the middle class as more Brazilians watched their incomes rise, in this time, the Brazilian ‘C’ class has gained 25 million more citizens. The ‘C’ class now represents 70% of the entire population of Brazil, more than the entire French and UK population combined. The city of Sao Paulo is the country’s largest city with a population of 11.3 million (Brazil.Org, 2015), a place where adoption of online shopping is expanding almost faster than anywhere else on earth (eMarketer, 2015)

What do Brazilians buy online?

Leading Retail E-Commerce Categories in Brazil Toys & Games Sport & Leisure Consumer Electronics Home Decoration Computers Telephones Books / Magazines and Subscriptions Household Appliances Health & Beauty Fashion & Accessories 0

5

10

15

20

Figure 24 Leading Retail E-Commerce Categories in Brazil – Own recreation of data supplied by (eMarketer, 2015)

Conclusion: The Brazilian online population, it appears, have strong preferences to what products are purchased online. The leading sectors of Brazilian e-commerce are fashion (18%) and health (16%) products with various other sectors scored above. These shopping habits are different to other established markets, like the UK where books are the largest seller followed by clothing and electronics.

There are various factors that affect what is bought online: Ease of purchase Comfort and Convenience Competitive Pricing Advertisement The data found from this task can be categorised into standardised parcel sizes to be used to predict the volume and weight of deliveries that the system must supply to consumers

4.3.2.

Where should the vehicle be introduced?

Aim: How will the developing city require a delivery vehicle to perform?

Objective: Study the demography of a city to use as an example to understand the target market and create function requirements for cargo and distance by studying what people will need to be delivered. Find who spends money online and what they order to inform where the vehicle can be introduced and what it should be able to deliver per shift.

Method: Desk based research supported with questionnaire Sources: Expat Arrivals. (n.d.). Areas and suburbs in Sao Paulo. Retrieved Oct 18 2016, from Expat Arrivals: http://www.expatarrivals.com/brazil/sao-paulo/areas-and-suburbs-in-saopaulo World Population Review. (2016). Sao Paulo Population 2016. Retrieved Nov 20, 2016, from World Population Review: http://worldpopulationreview.com/world-cities/saopaulo-population/ eMarketer. (2015). Brazil Ranks No. 10 for Retail Ecommerce Sales Worldwide. Retrieved Oct 10, 2016, from eMarketer: https://www.emarketer.com/Article/Brazil-Ranks-No-10Retail-Ecommerce-Sales-Worldwide/1011804 Hoefel, F. (2015). Mapping the mindset of Brazil's not so new middle class consumers.

Retrieved Nov 21, 2016, from McKinsey & Company: https://www.mckinseyonmarketingandsales.com/sites/default/files/pdf/CSI_Brazil% 20middle%20class.pdf Prefeitura De Sao Paulo. (2016). Dados demogrĂĄficos dos distritos pertencentes Ă s Subprefeituras. Retrieved Nov 2, 2016, from Prefeitura De Sao Paulo: http://www.prefeitura.sp.gov.br/cidade/secretarias/subprefeituras/subprefeituras/ dados_demograficos/index.php?p=12758 LandMarkGlobal. (2014). E-commerce in Brazil: trends, facts and figures. Retrieved Nov 20, 2016, from LandMarkGlobal: http://landmarkglobal.com/en_GB/trends-insights/ecommerce-in-brazil-trends-facts-and-figures/ AMI. (2015). Unlocking Brazil's e-commerce potential. Retrieved Nov 14, 2016, from Americas Market Intelligence : http://americasmi.com/resources//unlocking-brazilse-commerce-potential

UK Population 2016. (2016). Population Of Coventry In 2016. Retrieved Nov 21, 2016, from UK Population 2016: http://ukpopulation2016.com/population-of-coventry-in2016.html Google. (2016). Google Maps. Retrieved Oct 10, 2016, from Google Maps: https://www.google.co.uk/maps/place/S%C3%A3o+Paulo,+State+of+S%C3%A3o+Pa ulo,+Brazil/@-23.682035,46.7353809,11z/data=!3m1!4b1!4m5!3m4!1s0x94ce448183a461d1:0x9ba94b08ff33 5bae!8m2!3d-23.5505199!4d-46.6333094 Boyer, K. (2009). The Last Mile Challenge: Evaluating the Effects of Customer Density and Delivery Window Patterns. Retrieved Nov 2, 2016, from Research Gate: https://www.researchgate.net/publication/229886685_The_Last_Mile_Challenge_E valuating_the_Effects_of_Customer_Density_and_Delivery_Window_Patterns Correios. (2016). Sobre Correios. Retrieved Nov 11, 2016, from Correios: https://www.correios.com.br/sobre-correios

Figure 25- Sao Paulo Map (Google, 2016)

Sao Paulo has a population of over 20 million people, making it the eleventh largest city in the world. To provide last mile services to such a large, busy city, the system must be divided into more manageable sized hubs spread across the area, to provide local people with a faster and more reliable service. Distribution centres can be located close to dock areas, train lines and large roads to increase efficiency for the daily unloading of the area’s stock that is yet to be sorted and organised. A distribution centre in the UK can be used to supply an estimated 100,000 consumers, an example of this can be observed in Coventry, UK. With a population of 337,000, (UK Population 2016, 2016) (207,000 consumers), a major shareholder of the delivery market owns 2 distribution centres to supply the city.

Understanding the capabilities and scale of a distribution centre can be used when establishing a position for the example Sao Paulo hub.

The city is broken down to areas of separate classes, the example route will focus on the growing ‘C’ class areas as they are most likely to be using the major users of online shopping in the future, being the group that are so readily benefitting from low cost online stores, with their new found disposable income.

Using maps and population facts, the most ideal area to introduce a new system can be located. Looking at density of population and topography can inform the design of other surrounding problems, for example, small roads and high amounts of traffic may cause many problems for the system unless addressed during this process. Local knowledge found from online blogs and questions will be used to locate the middle class or higher areas, where people are likely to use online stores and receive deliveries.

Using earlier appendices, a suitable location would require a population density of 3000 or higher per square mile to be optimal in efficiency.

Location A south-western prefecture of the city, named Santo Amaro, a main area of the ‘C Class’ population (Expat Arrivals, n.d.), has been selected to be used as the example to focus on one hub and spoke system, however, the hub and spoke process could be applied to other similar areas of the city, if the demographic is still suitable. It is possible for the proposed system to be adjusted to another district of the city.

To create major function requirements for volumes, weights, range and route calculations, understanding the market that the vehicle is required to serve is vital, this can be calculated by studying population, trends and market share of the owner of the vehicle.

Population: Santa Amaro has a population of 238,000 people. 158,000 adults live in an area of 14.5miles2. Creating an adult population density of 10,900 per mile2 (Prefeitura De Sao Paulo, 2016)This density will be of great benefit to the overall efficiency of the project, like (Boyer, 2009) found during population density / efficiency tests in earlier appendices.

Market Share: In Brazil, a state-owned system known as ‘Correios’ (Correios, 2016) supplies the vast majority of consumers across the country. Similar to how Royal Mail supplied the UK

markets before privatisation, the post office service must be able to supply the country’s entire population of 200million people with an efficient system.

By having large state funded resources, the company is responsible for shipping 93% of the nation’s e-commerce parcels (LandMarkGlobal, 2014). For a new delivery vehicle to be successful in the Brazilian market, it should aim to provide services for this company, as other companies would not be under the same stresses and pressure to deliver large amounts of goods.

How many parcels must be delivered?

Using earlier appendices (4.3.1.), it is possible to predict that the Brazilian online buyer penetration will rise considerably over the coming decade and will continue rising in the same way that the UK has done over recent years. By 2021, 71 percent of Brazilians will shop online at least once in the year.

A survey of 33 internet users found that the average number of parcels received in developed markets was 17 per year, 0.05 per day. Applying difference between our current market adoption and the prediction of the Brazilian market adoption, the average person in the country will receive 0.04 parcels per day.

Applying information found in the population and market share section of this appendices, it can be predicted that of the 112,180 online shoppers in the area, Correios will deliver to a staggering 104,327 of them. This equates to an average of 4,173 deliveries per day.

With a single distribution centre processing over 4,000 parcels per day, it must divide the load into workable routes. Establishing the number of parcels that the new vehicle will be able to deliver will support later on in the report, the amount of routes and vehicles required to deliver to Santo Amaro can be selected.

4.3.3.

How should the design meet the requirements of the user?

Efficient Parcel Sizes

Figure 26: Leading Retail Categories by Standard Parcel Size – Data supplied by (Royal Mail, 2016) and (eMarketer, 2015)

Figure 27: Existing Standardised Parcel Dimensions – Recreation from (Royal Mail, 2016)

From studying the main categories that are purchased online by the Brazilian population, it is possible to assess each product and position them category by category into suitable parcel sizes used in developed markets. For example, Fashion and Accessories can be mainly categorised into the ‘Small Parcel’, many products are small, lightweight and foldable, therefore this parcel will be able to hold the majority of products bought from this e-

commerce category. To estimate the entire range of parcels from the purchasing habits chart, an ‘other’ section was created and then weighted to form an average of all parcels.

Shown in the figure above, the leading parcel size is a small parcel, suggesting that people mainly purchase online to receive small, lightweight goods. This reflects back to Figure 18 where a survey found that online orders from developed markets are packaged into the same sized parcel. To improve efficiency in parcel sizes, larger sizes should be scaled down and reassessed to form more accurate sizes, providing more choice in this section, giving a more accurate representation of a parcel. It must be stated that a general courier would not be expected to deliver a large parcel, this would be left to a more specialised company that will perform less drops per day for a larger shipment cost. The vehicle will be designed to focus on more drops of smaller parcels to supply a service to the general majority of online shoppers.

Combining information found in earlier appendices, ‘What do Brazilians buy online?’ and ‘Parcel Size’, it is possible to statistically prove that some current standard parcels cause major inefficiencies when considering the size and range of the vehicle needed to perform home deliveries.

Creating accurate standardised parcel sizes Combining tasks from appendices, ‘What do Brazilians buy online’ and ‘Parcel size’, new parcel sizes can be created to suit the market and create more efficient volumes and weight predictions. Using the e-commerce order predictions, four new box measurements have been designed to increase efficiency. The new parcels have been arranged to comfortably fit sub packaging from the sending companies and more accurate weight predictions have been created for each field. The parcels are designed to be able to supply other outlying products that may not fit to their category, but will be able to fit in a close to measurement box in the upper band. Weights have been assessed as products that are usually bought

Figure 28: Parcel Deliveries by New System – Own Diagram

online are lightweight as well as being low volume. The figure below shows the dimensions of the new parcels that will be used for the vehicle.

Figure 29 Updated Parcel Sizes – Own Diagram

When comparing the change in parcels to the previous system, we can see the increase in spatial efficiency and a considerably lower predicted weight. The new system is almost 2.5 times more effective for both predicted mass and volume when moving the same quantity of products to the same consumers. The new system can now justify a smaller vehicle to perform the same tasks, this means the vehicle will take less space on the road, creating more room to manoeuvre through tight residential streets and less space taken during loading inside the distribution centre. The lower assumed weight of the parcels will allow the overall weight of the vehicle to be lowered, creating more efficient use of battery life, giving the vehicle more range and less required space for batteries.

Figure 30 Application of population data to Parcel Size - (eMarketer, 2015), (Royal Mail, 2016)

From data used in earlier tasks, it is possible to reassess parcel sizes into more accurate and efficient sizes that reflect the market that they are used in. The data in Figure 22 proves that when the same number of products are shipped using more accurate parcels there can be dramatic effects on volume and assumed weight of the 4,173 daily parcels that the Santo Amaro Distribution Centre must process daily. The expected average volume of the parcels dispatched is now a sixth of the scale it would have been if the company used the old parcel size and 5.3 times less predicted weight. If the company is to use volume and weight as a limiting factor for each route, they would need many more vehicles than proven necessary without having updated parcel sizes. For example, a standard van used by couriers in Europe can hold a total volume of 7.5m3, to provide Santa Amaro with the day’s parcels, there would need to be 53 of these vehicles in the company’s fleet. With the new parcel dimensions, there would only have to be 9 of the same vehicle, if it was to provide the exact average number of parcels.

The assumptions made on the previous section serve as a proof for the new parcel size system, however, an average parcel load cannot be used as this number will fluctuate daily, therefore, the vehicle must be capable of carrying a larger volume than stated earlier.

An extra 25% should be added to volume and weight to anticipate fluctuation, however, any more could produce empty running, giving the vehicle more weight, decreasing it’s range and manoeuvrability.

The proposed hub and spoke system must be able to effectively cope with 5,200 parcels per day, a total weight of 9650kg and 82m3 of parcels.

4.4. What other design factors can improve a delivery vehicle?

4.4.1.

What effects do drivetrains have on efficiency?

Aim: To find a suitable method of propulsion for a delivery vehicle that supplies ample range whilst being lightweight and sustainable Objective: Research current trends in powertrains amongst delivery vehicle concepts and production vehicles. Look at methods of energy recovery. Learn whether power source will be a limiting factor for routing.

Method: Desk based research and University lecture notes Sources: Berg, T. (2010). Driving Navistar's eStar Van. Retrieved Nov 26, 2016, from Trucking Info: http://www.truckinginfo.com/article/story/2010/06/driving-navistars-estar-van.aspx McCartan, D. S. (2016). Road Platform Technology and Innovation (Lecture). Retrieved Oct 5, 2016 KPMG. (2014). KPMG GLOBAL AUTOMOTIVE EXECUTIVE SURVEY 2014. Retrieved Nov 25, 2016, from KPMG: http://www.aseanconnections.com/KPMG-Global-AutomotiveExecutive-Survey-2014-Strategies-for-a-fast-evolving-market-and-the-implicationsfor-ASEAN.aspx CNNMoney (Producer). (2012). FedEx's electric truck challenge [Motion Picture]. Retrieved Nov 21, 2016, from https://www.youtube.com/watch?v=eDHJCM-P9k0 AudiMediaCentre. (2016). The innovative shock absorber system from Audi. Retrieved Nov 25, 2016, from AudiMediaCentre: https://www.audi-mediacenter.com/en/pressreleases/the-innovative-shock-absorber-system-from-audi-new-technology-savesfuel-and-enhances-comfort-6551 Van Vlack, M. (2013). Cool Van: The Navistar eStar. Retrieved Nov 25, 2016, from Field Service Digital: http://fsd.servicemax.com/2013/08/30/cool-van-the-navistar-estar/

Battery E-mobility is now seen as an ‘extremely important’ or ‘very important’ move to the future according to 59% of the (KPMG, 2014) survey, along with 57% claiming that development in ‘urban vehicles’ is also an important aspect of the development of the automotive industry.

Figure 31 Extremely important developments (KPMG, 2014)

The importance of developing green technology for urban vehicles is growing, as companies find themselves with a lot of publicity when introducing green vehicles to their fleet. An example of successful media coverage would be FedEx, the company have announced the use of the Navistar E-star Electric Vehicle in their effort to lower their total fuel usage. The company have saved nearly 14% of carbon emissions per package delivered, the company now use 460 alternative fuel vehicles in their fleet. FedEx have calculated that although the upfront cost of an electric vehicle is considerably higher than a standard combustion engine, the company will save between 70 and 80 percent on operational costs and should recover the cost quickly (CNNMoney, 2012) The importance of saving money in any aspect of the supply chain is of upmost importance, especially for the last mile courier service, giving them the ability to lower the cost of the individual parcel, giving them the edge on competition with other services.

The Navistar E-star uses a lithium-ion battery (Berg, 2010) in their new vehicle supplied to FedEx and other logistical companies. The batteries can supply the vehicle with a range of 100 miles, a long distance for a vehicle that can handle a two-tonne payload. The batteries will also have the benefit of having a long life, (Berg, 2010) predicts that the battery life could be longer than the vehicle’s useful life. The nature of an electric motor is that 100% torque is available upon start, allowing the vehicle to briskly move away from each delivery, far more effectively than a combustion engine. The vehicle has been tested by FedEx for inner city delivery in L.A. where they found that the Navistar can perform a full eight hour

shift of deliveries on one charge, however, one full charge can take eight hours too, (Van Vlack, 2013).

Energy recovery is a useful feature for a delivery vehicle to have, every stop and start is energy spent that a system may be able to recover. Recovering lost energy can be converted back to power for the vehicle or be used for on board systems to prevent drainage of the battery for processes other than powering the vehicle. Energy recovery systems work best under load, where momentum of the vehicle takes more energy to become stationary, useful for a heavy delivery vehicle to have when performing hundreds of drops per day.

Some systems can also use the motion of the vehicle to convert back to be used as propulsion. The Audi eRot system recovers energy lost through the spring movement of a vehicle’s suspension. “Every pothole, every bump, every curve induces kinetic energy in the car. Today’s dampers absorb this energy, which is lost in the form of heat” says Dr. Stefan Knirsch (AudiMediaCentre, 2016). The benefits are even greater as the vehicle travels over rougher terrain like poorly paved roads, where energy of up to 613 watts can be produced during Audi tests.

Not only does the eRot system recover energy for the vehicle, the component also allows tighter packaging as usual suspension systems will stack upwards, above the wheel, the Audi system can be stored horizontally, allowing more space for passengers (Audi, 2016), or in the case of a delivery vehicle, a more compact cargo hold.

Conclusion: Learning from developing trends in the electric vehicle market, the importance of cost saving through effective efficiency savings is of incredible importance to couriers around the world. As mentioned earlier in this paper, the supply chain demands a low-cost solution to last mile logistics, an electric vehicle can supply that need by dramatically saving running costs in a vehicle that will be used all day, every day, on a large scale across a city. The need to be a clean and green delivery service is another benefit for the congested, polluted cities that many delivery vehicles supply to each day. A Lithium Ion battery as should provide suitable range for the lightweight vehicle without costing the company too much money as newer batteries develop.

4.4.2.

How can materials be used to improve the vehicle?

Aim: Find the correlation between the future uses of materials and efficiency.

Objective: Locate the beneficial properties of materials that can improve the efficiencies of a vehicle.

Research other factors that should be taken into account and select suitable materials to be used in the new design.

Method: Desk based research and University lecture notes.

Sources: McCartan, D. S. (2016). Sustainability in Material and Manufacturing (Lecture). Retrieved Oct 3, 2016 Lotus Cars. (2016). Eco Elise. Retrieved Nov 25, 2016, from Lotus Cars: http://www.lotuscars.com/engineering/eco-elise Gerard, K. (2014). High Performance Plastics used in the Automotive Inductry. Retrieved Nov 25, 2016, from CraftTech Ind: http://info.craftechind.com/blog/bid/391683/13-HighPerformance-Plastics-Used-in-the-Automotive-Industry

Alternative materials can give a design great benefits, not only can research into properties produce key solutions for efficiency, they can also gain media coverage for the company that produces or uses the vehicle, helping them to generate more sales and display their forward-thinking to the rest of the world. For benefits in these fields, material choices must be exciting and innovative as well as beneficial to the design.

Green and sustainable products are highly popular in current trends, with natural fibres being a popular substitution for many parts of the automobile. The Eco Elise from Lotus Cars is a great example of the uses of natural composites. The sports car demonstrates how the use of alternative materials can have benefits for the performance, the holistic design uses sustainable materials like hemp, eco wool and sisal for multiple uses across the designs exterior and interior (Lotus Cars, 2016).

In this design, hemp has been used to produce enduring and strong exterior surface panels and other interior parts that get particularly worn, like seating (Lotus Cars, 2016). The material has lightweight and durable qualities, very beneficial to the efficiency of an electric vehicle, such as a delivery truck, where any extra weight other than delivery driver and payload should be considered as an inefficiency to the design extra weight lowers the range of the vehicle and slows down the acceleration rate. Using lightweight materials from sports car uses and applying them to the design can have major benefits as they are often in the interest of performance.

Using alternative methods can create many benefits, for example, Mercedes-Benz have used composite fibres to reinforce the plastics used in sound insulation for cars, the same fibrous materials can be used for structural purposes too as they are lightweight and can be produced in low amounts of parts.

Polyurethane – a good material for seating as it has a long flex life and can take a lot of strain from weight without distortion. The material will not be corroded by many things like whether and UV (Gerard, K. 2014).

Conclusion: A delivery vehicle will require a durable and lightweight selection of materials to produce the best range possible on routes and still have the ability to not get damaged by constant use.

Materials used in the design of the vehicle must be: Durable Lightweight Low Cost Hygienic Local (Preference)

Existing Product Benchmark Aim: To investigate existing vehicles used for last mile delivery, a benchmark of existing products can be produced, this will allow features to be compared and will locate floors in each design.

Sources: Mercedes Sprinter Image: http://cdn.pinthiscars.com/images/mercedes-sprinter-313-cdi--14.jpg Navistar E-star Image: https://tctechcrunch2011.files.wordpress.com/2011/02/profile-shot-537x358.jpg Goupil g3 Image: http://www.goupil-industrie.eu/gamme.php?type=G3&page=fourgon-rideau& Conclusion: Based on Payload Ability (Volume and weight), Range, Size and Ergonomic Access (efficiency improvements) 3 electric vehicles have been compared: Navistar E-star – Recently purchased by FedEx to improve parcel pricing and greenhouse gasses from their fleet.

Goupil g3 Box Van – French micro electric vehicle designed for multiple uses as a utility vehicle. The vans small size gives it the ability by law to drive onto pavements and past bollards for government uses.

Mercedes Sprinter – Commonly used delivery vehicle in UK market using a standard combustion engine.

The advantages of each product is visible in the matrix, perhaps most noticeable of all is the range of a Mercedes Sprinter Van, this great distance available would be reassuring compared to the range anxiety that may be felt when driving the Goupil g3 on a long route, although this is not the function of the g3. The new design must combat the problem of ‘range anxiety’.

Other major problems with the small Goupil Box Van, are caused by the size of the vehicle, although size is very advantageous in busy citys, low volume and payload weight are not ideal for all courier services, however, some last mile dispatchers use these vehicles as there loads are low volume and density.

Figure 32: Product Benchmark

Research Strategies: This paper was written from majority desk based research, observing past studies of a variety of last mile problems and inefficiencies. This method of research allowed the paper to cover a broad amount of information from long term studies and apply them to the conclusion.

Video and Vlogs played a great role in the collection of design information that is not readily available on the internet, however, to continue research and to reassure evidence into design problems within current vehicles an observational task could be used. With more time for research, this task could be performed by observing a driver on their route as a passenger, actions that the driver performs could be measured by time and effort, they could then be weighted and applied to the inefficiency chart in the ‘driver observations’ appendices. The task could be performed like this: Observations Video and Vlogs played a great role in the collection of design information that is not readily available on the internet, however, to continue research and to reassure evidence into design problems within current vehicles an observational task could be used. With more time for research, this task could be performed by observing a driver on their route as a passenger, actions that the driver performs could be measured by time and effort, they could then be weighted and applied to the inefficiency chart in the ‘driver observations’ appendices. The task could be performed like this:

Source: Own Diagram The observational chart has been ordered in a way to record each predicted motion of the driver at every stop. The chart has also been designed to reflect whether the section is an inefficiency in design or in the system, creating a more informed design. Data can be recorded over many sheets for the continuing route, allowing data to become more accurate. The task would also allow the researcher to witness the actions and talk to the driver about any problems that he feels are not addressed by current design.

Interview Interview questions for a driver: 1. What is the furthest distance that you are likely to drive in one route?

2. How many parcels will you deliver on an average day?

3. What part of the consumer delivery process do you find most time consuming or tiring?

Driving, Parking, Use of hand-held register, Accessing cargo hold for parcels, Locating the customer’s house, Waiting for customer for signature, Walking / Running, Other 4. Does the size of your delivery vehicle make it difficult to drive?

5. Do you find the delivery vehicle hard to access?

6. Would you prefer to drive in a standing position between close stops or do you enjoy sitting down?

7. Do you find that seat belts are inconvenient to use when in a residential area?

8. Personally, what improvements would benefit your comfort and efficiency in new vehicle design?

These questions would support the design and give a driver’s own input into the design of the vehicle. For a designer who has never worked as a delivery driver, it is important to use this task to create a more empathic design approach to the user based vehicle. The start of this reports claims that drivers are feeling exploited by companies who only want fast deliveries. This approach could resolve that by allowing the design to be more adjusted to their needs.

Questionnaire Other research tasks performed were questionnaires sent out to the internet using public, regarding information to investigate into parcel size inefficiencies, quantities of parcels received from online shopping and to collect data for how many parcels are missed deliveries upon arrival to the consumer’s home. The research questionnaire was sent out in this format:

From online shopping, how many parcels do you receive per year (average)? ……………………..

What is the typical size of parcel that you receive per year?

Large Envelope (35 x 25 x 2.5cm) Small Parcel (45 x 35 x 16cm) Large Parcel (61 x 56 x 46cm)

In the last 5 online orders that you have made, how many have you missed?

This survey allowed the research to be backed up by the public, proving issues that were raised regarding information discussed throughout the report.

Research Consent Forms

Research Conclusion Poster

Design Brief James Ayre M154ID – How should a delivery vehicle be designed to anticipate the rapid growth of ecommerce in developing cities?

December 2016 As internet penetration continues to climb, online stores and courier services are likely to face a struggle to meet the demand of the consumer. As evident in early adopting countries like the UK, delivery drivers in other countries may start to be pressured and exploited by large firms. News coverage suggests that in order to protect public relations and trust, a company should address this problem, doing so could also result in many benefits for themselves. Many specialists in the supply chain have focussed on solutions for the last mile, however, a vehicle with capabilities to provide the solution for dense, rapidly growing cities is not available.

Aim: Creatively combine research tasks to design a vehicle that meets the requirements of online shoppers whilst providing much needed support for drivers.

Project Objectives: 1. The design should creatively use various methods of last mile parcel delivery to be prepared for the large growth of online orders to supply the predicted quantity of parcels effectively and efficiently at low cost for the recipient.

2. The driver’s needs and wellbeing must be addressed whilst improving their rate of work create a more sustainable design for the future.

3. Make use of innovations in materials and technology to improve the function limitations and performance of the vehicle.

Target Audience: Use appendices 4.3.2. to effectively address the needs of the supplied market whilst considering the courier service that owns the vehicle and how they may wish to be publicly advertised. Other users include drivers and Distribution Centre workers who will be in constant direct contact with the design, the system should ensure that contact with the vehicle is simple and intuitive to prevent mistakes and inefficiencies.

Constraints: The choice of drivetrain may restrict the range of the vehicle and may become a hindrance for functions at the end of a route.

The time taken to deliver all parcels could be a constraint as the driver can only work for 8 hours per day.

Volume capacity and payload of the cargo hold could prevent the function of the vehicle in the future.

The chart of all inefficiencies will perform as a measurement to record constraints and ensure that the required number of parcels can be delivered throughout the development of the design. The chart acts as a goal to become as efficient as possible.

Project Management: Recorded through conceptual framework and planning section of appendices.

Initial Sketch Ideas