Purpose The purpose of this paper is twofold: first, to review and classify scientific publications dealing with those innovative solutions aimed at increasing the efficiency of last-mile delivery in business to consumer (B2C) e-commerce; and, second, to outline directions for future research in this field. Design/methodology/approach The review is based on 75 papers published between 2001 and 2019 in international peer-reviewed journals or proceedings of conferences, retrieved from bibliographic databases and science search engines. Findings Due to its importance in affecting the overall logistics costs and, as a consequence, the economic sustainability of a B2C e-commerce initiative, last-mile delivery process deserves particular attention in order to be optimised. The review highlights that, among the main factors affecting its cost, there are the probability to have failed deliveries, the customer density in the delivery areas and the degree of automation of the process. Innovative and viable last-mile delivery solutions – which may impact the mentioned drivers – include parcel lockers, crowdsourcing logistics, mapping the consumer presence at home and dynamic pricing policies. Eventually, some gaps and areas for further research activities have been identified (e.g. mapping customer behaviour, crowdsourcing logistics). Originality/value This review offers interesting insights to both academics and practitioners. On the academic side, it analyses and classifies relevant literature about innovative and efficiency-oriented last-mile delivery solutions, proposing directions for future research efforts. On the managerial side, it presents a holistic framework of the main factors affecting last-mile delivery cost and of viable innovative solutions that may be implemented to increase efficiency.
PurposeThe purpose of this paper is twofold: first, to review the extant academic literature on on-demand food delivery (ODFD) services, i.e. the delivery of freshly prepared meals from restaurants to customers enabled by online platforms; second, to propose directions for future research in this field.Design/methodology/approachThis work reviews 59 papers published between 2016 and 2020. They are classified with respect to both their research methodology and the addressed themes, namely the actors involved and the activities creating value for the ODFD ecosystem. The latter was analysed by applying a framework derived from the integration of traditional models and literature about platforms/business ecosystems. Results were validated through interviews with practitioners.FindingsDue to its huge success and the significant complexities behind it, the ODFD business has been gaining the interest of academics. The authors’ review highlights that (1) the perspectives of the various actors involved should be integrated, moving towards an ecosystem-based view; (2) future research should focus more on restaurant operations and their role in ODFD systems and (3) despite they have been investigated by several academic contributions, human resource management and logistics of ODFD systems still present room for further extensions, in the areas of intervention/regulation and distribution network/batching, respectively.Originality/valueThis review offers insights to both academics and practitioners. On the academic side, it analyses the literature on ODFD systems, outlining directions for future research. On the managerial side, it provides a comprehensive view on the most critical value-creating activities for ODFD businesses.
The last-mile delivery is one of the most challenging logistics issues arising from B2C e-commerce. Companies operating online have to meet stringent requirements in terms of service level; moreover, the features of e-commerce orderse.g. small dimensionmake last-mile delivery the most expensive part of the delivery process. In this context, crowdsourcing logistics emerges as an innovative and promising solution: deliveries are assigned to a network of 'common' people through an open call. This solution may imply great advantages for the urban society. Nonetheless, in order to spread, it has to be economically sustainable for companies. In this regard, the paper investigates the economic profitability of a 'pony express' crowdsourcing logistics initiative in an urban area. A model has been developed in order to estimate the cost of deliveries using crowdsourced services, and to compare it with the cost of 'traditional' pony express couriers.
PurposeThis paper focusses on on-demand food delivery (ODFD), i.e. the delivery of freshly prepared meals to customers' homes, enabled by the use of online platforms. In ODFD, a key process is represented by last-mile deliveries (LMDs): they directly affect customers (the delivery price influences their purchase intention), riders (the compensation drives their willingness to perform deliveries) and platforms (deliveries are very expensive). In this context, this work aims to investigate the economic performances of ODFD LMDs.Design/methodology/approachThis study adopts a multi-method threefold process. First, it develops a model that – after the generation of customers' demand and the assignment of deliveries to available riders – identifies incomes and costs faced by an ODFD operator. Second, the model is applied to a base case in Milan (Italy). Third, sensitivity analyses are performed (on daily demand and riders' salary).FindingsThe analyses allow – besides the identification of significant values associated to ODFD profitability – to draw general insights about delivery price (e.g. free delivery is not economically sustainable), daily demand (e.g. greater demand values do not only improve positive results but also worsen negative ones) and fixed/variable wage mix (e.g. increasing the variable wage enhances the profitability for platforms).Originality/valueOn the academic side, this word enhances extant literature about ODFD, proposing a model – with multidisciplinary implications – to strategically investigate profitability conditions of LMDs. On the managerial side, it provides support for (logistics/marketing) ODFD practitioners since it allows to evaluate the potential impact of significant decisions on profitability.
PurposeThis paper investigates the economic performances of two business-to-consumer (B2C) e-commerce last-mile delivery options –parcel lockers (PLs) and traditional home delivery (HD) in contexts where e-commerce is still at its early stages. It analyses and compares two different implementation contexts, urban and rural areas.Design/methodology/approachThis study develops an analytical model that estimates delivery costs for both the PL and HD options. The model is applied to two base cases (representative of urban and rural areas in Italy), and sensitivity analyses are subsequently performed on a set of key variables/parameters (i.e. PL density, PL fill rate and PL annual costs). To support the model development and application, interviews with practitioners (Edwards et al., 2011) were performed.FindingsPLs imply lower delivery cost than HD, independently from the implementation area (urban or rural): advantages mainly derive from the higher delivery density and the drastic reduction of failed deliveries. Benefits entailed by PLs are more significant in rural areas due to lower PL investments and annual costs, as well as higher HD costs.Originality/valueThis paper offers insights to both academics and practitioners. On the academic side, it develops a model to compare the delivery cost of PL and HD, which includes the analysis of urban and rural contexts. This could serve as a platform for developing/informing future analytical/optimisation contributions. On the managerial side, it may support practitioners in making decisions about the implementation of PLs and HD, to benchmark their costs and to identify the main variables and parameters at play.
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