Identifying design criteria for urban system ‘last-mile’ solutions – a multi-stakeholder perspective

Abstract

This study presents a novel approach to designing and evaluating 'last-mile' solutionsencompassing the social and economic perspectives of key stakeholders. While urban system initiatives have been implemented in practice, theoretical gaps remain at the operational design level. A theoretical framework is developed, based on design criteria identified from a critical synthesis of supply chain and operations management literature, and 'operationalised' using an in-depth case study demonstrating implementation of a Consumer Choice Portal-Package Consolidation Centre solution, within a densely populated urban geography.Findings suggest that there is a need to re-define the role of institutional actors beyond that of the traditional governance task, to one of being able to facilitate performance outcomes. Similarly, industrial efficiency dimensions need to be re-orientated to include consumer participation, social considerations and multi-stakeholder service outcomes. Finally, implications for operations theory and practising managers in city logistics are highlighted, with suggested directions for future research.

Consumer-driven e-commerce

“…However, existing definitions (details available from the authors) appear incomplete in capturing the complexities driven by e-commerce, such as omission in defining an origin (Esper et al, 2003;Kull et al, 2007;Gevaers et al, 2011;Ehmke and Mattfeld, 2012;Dablanc et al, 2013;Harrington et al, 2016); exclusion of in-store order fulfilment processes as a fulfilment option (Hübner, Kuhn and Wollenburg, 2016); and/or non-specification of the destination (or end point), including failure to capture the collection delivery point (CDP) as a reception option (Esper et al, 2003; 309 Consumerdriven e-commerce Kull et al, 2007). Without a consistent and robust definition of LML, the design of LML models is problematic.…”

“…Finally, while collaborative logistics enable the sharing of assets and capacities in order to increase utilisation and reduce freight, its success rests on developing a logistics ecosystem of relevant stakeholders (including institutions). Consequently, exciting research opportunities exist to explore new design variables that capture key stakeholders' interests at various levels (Harrington et al, 2016).…”

“…The longer the shipping distance or the higher the shipping indirectness, the lower the level of product freshness Product margin LML models with a central product sourcing point, such as the in-transit merge and drop-shipping models, are more compatible with higher margin products because the benefits of inventory aggregation are high and consumers are more willing to tolerate a longer response time. By comparison, LML models with local product sourcing points (continued ) Order visibility: the ability of consumers to track their order from placement to delivery (Chopra, 2003;Harrington et al, 2016).…”

“…• Consumer physical convenience: the effort consumers exert to receive orders (Chopra, 2003;Harrington et al, 2016).…”

“…Forman et al, 2009;Gallino and Moreno, 2014). Additionally, a few studies used case research to provide operational guidance via framework development, such as last-mile order fulfilment (Hübner, Kuhn and Wollenburg, 2016) and LML design, to capture the interests of various stakeholders (Harrington et al, 2016). …”