Last Mile Delivery
Due to the growing share of on-line shopping nowadays, an additional sales channel for companies came up. Internet sales has become an essential part of the retailing business in the past years. Consequently, the volume of traffic caused by delivery services has increased rapidly with the success of e-commerce. Likewise, the delivery market slowly transforms from a mainly B2B market to a B2C one (e.g. Drone delivery). The final track of the supply chain – home delivery to a customer – is called “Last Mile”. The “Last-Mile” of a delivery poses significant logisticalcal challenges, especially regarding the increasing customer expectations, such as "same day delivery" or "exact time delivery" which leads to the decreasing time available for planning. Furthermore, the “Last mile” has a huge effect in traffic of commercial vehicles in cities. The Last Mile Delivery (LMD) accounts for a major part of the costs involved in a delivery. A research of Capgemini Research Institute showed that the costs of LMD account 41 % of the overall supply chain costs ( Jacobs, Warner et al., p. 20 ). Figure 1 - Distribution of overall supply chain costs ( Jacobs, Warner et al., p. 20 ) In the reality of LMD, challenges like a small or single order compared to deliveries to stores, many constantly changing geographically dispersed locations (compare deliveries to stores) etc. must be faced. The goal is to improve the efficiency of LMD, to minimize costs incurred, improve safety to minimize the impact on traffic as well as minimize the environmental impact. To improve the quality of life in the affected areas, the LMD should become environmentally friendly and emission-free (noise and emissions), the volume of traffic should be reduced to prevent illegal parking, collisions and stressful congestions. Congestion, air quality, collisions and illegal parking are all ills affecting the quality of life of citizens. The accessibility of inner-city locations is becoming more and more limited for cars and trucks in contrast delivery services are growing especially in these dense inner-city areas. There are several solutions to solve these problems that reduce pollutant emissions, lower the impact on traffic, improve safety and make LMD more efficient.