City Logistics constraints and opportunities

Transcription

1 City Logistics constraints and opportunities E-mobility and city logistics for citizens, goods and business Allan Larsen, Professor Operations Management Management Science Transport DTU

2 Urbanization 2005: 3.1 billion people live in cities 2030: Estimate: 77% will live in cities Source: United Nations, Department of Economic and Social Affairs, Population Division (2006). World Urbanization Prospects: The 2005 Revision. New York: United Nations. 2 DTU Management Engineering, Technical University of Denmark E-mobility and City Logistics 01 February

3 Urban Transport Problem of the Last Mile Unit transport costs Low fill rates Labour intensive Small/medium sized vehicles Congestion High fill rates Modest labour intensive Medium/large sized vehicles Very high degree of consolidation Not labour intensive Large/very large sized vehicles Transport in the cities is in many cases the real bottleneck in the transport chain This problem will inevitably increase with the growing cities First-mile Transport sequence Last-mile 3 DTU Management Engineering, Technical University of Denmark 01 February E-mobility and City Logistics

4 Urban Freight Transport - Challenges In many cases the transport operator decides on the timing, routing and circumstances of the deliveries For small parcel deliveries etc. the receiver rarely will have a say in the delivery operation Some trends: Faster - same-day deliveries or even same-hour deliveries Digitalization how will the Uberfication of transport play a role for urban freight transport More rapid growth in E-commerce Free returns Parallel distribution systems 4 DTU Management Engineering, Technical University of Denmark 01 February E-mobility and City Logistics

5 Suboptimal Goods Transport in Cities - System-optimum versus User-optimum Frieght transport is usually based on rational decisions Minimise operational costs, ressource utilization, maximise customer service, etc. From a macroscopic (system) viewpoint this is NOT optimal Subsystems are too small, which means businesses are too small Subsystems are being optimised subject to each business agenda and quest for profitability without looking into the hollistic picture 5 DTU Management Engineering, Technical University of Denmark E-mobility and City Logistics 01 February

6 City Logistics - Basics, Challenges & Limitations Basic idea: Consolidation of freight between the shipper, operator and receiver Challenge: Integration of the multitude of demands by the stakeholders so that an efficient logistics system is achieved Relevant freight markets Small deliveries NOT cold chain NOT multiple pallet shipments NOT already highly consolidated goods and a lot of other goods unsuited for this concept people.hofstra.edu 6 DTU Management Engineering, Technical University of Denmark E-mobility and City Logistics 01 February

7 City Logistics Experiences The introduction of an extra level/handling in the transport chain is NOT economically sustainable Almost all UCCs cannot survive after the subsidies are phased out Browne et al. (2005) Systems too small to take advantage of scale-of-economies Remedies to overcome theses challenges Value-adding services Reverse logistics, waste, etc. Incurring new regulations (bans) Today not applicable to DK 7 DTU Management Engineering, Technical University of Denmark E-mobility and City Logistics 01 February

8 Closing remarks No easy solutions no single one solution will solve it all The needs of logistics is even more dispersed than the needs when transporting people => the digitalization will increase the dynamism in society and therefore also in logistics City logistics consolidation via a UCC IS NOT the appropriate solution to most types of urban freight transport BUT for some cases/types of goods it might be Questions: Are we willing to accept higher prices of goods in the inner parts of larger cities? Are we willing to change the regulation to favour certain types of fuelled vehicles? (EVs, biogas, hydrogen, bikes, etc.) 8 DTU Management Engineering, Technical University of Denmark E-mobility and City Logistics 01 February