Introducing the Shared Micro-Depot Network for Last-Mile Logistics

Abstract

Last-mile logistics is both a source and cause of problems in urban areas, especially problems related to traffic congestion, unsustainable delivery modes, and limited parking availability. In this context, multiple sustainable logistics solutions have been proposed. We focus on micro-depots (MDs), which can function as a consolidation center and a collection-and-delivery point for business-to-consumer (B2C) small parcels. This paper presents a new research idea that extends the existing MD solution by introducing the concept of a shared MD network with parcel lockers. Such networks enable multiple logistics service providers (LSPs) and/or business partners to use an MD while minimizing their individual costs and optimizing the use of urban space. We present case studies of such shared MD networks operating in the cities of Helsinki and Helmond. We provide a framework for auxiliary businesses that can exploit the existing MD structure to offer services to the surrounding population. Finally, we define metrics for evaluating the success of shared MD networks while considering social, environmental and economic objectives. The case studies highlight the complexity of implementing such a solution; it requires stakeholders’ involvement and collaboration. In particular, deciding on the location for a shared MD network is a critical phase, since local authorities have their own regulations, and residents’ preferences are usually different than LSPs’ ones. Nevertheless, if these challenges are overcome, this sustainable last-mile logistics solution has a promising future.

Micro-hub location selection for sustainable last-mile delivery

“…Regarding the facility location problem, Rosenberg et al [ 13 ] introduced the shared Micro-Depot (MD) network for last-mile logistics. They evaluated the success of shared micro-depot networks, considering economic, environmental, and social aspects.…”

“…There are several articles found in the literature dealing with the facility location problem. For example, Rosenberg et al [ 13 ] investigated the success of the micro-depot network for LMD considering the economic, social, and environmental criteria. Awasthi et al [ 14 ] applied the fuzzy TOPSIS method to locate the urban distribution centers.…”

Towards a typology of logistics “work” beyond formal employment: a synthesised literature review

“…For example, consumers' participation in last-mile self-collection via parcel lockers has become a critical success factor for the e-commerce last-mile delivery (Zhou et al, 2020;Wang et al, 2021a). Aside from selfcollection, consumers are expected to handle deliveries via alternative methods (Buldeo Rai et al, 2021a;Hagen and Scheel-Kopeinig, 2021), such as unmanned delivery (Kapser and Abdelrahman, 2020;Osakwe et al, 2022), unattended home delivery (Olsson et al, 2021), drop-box delivery (Risher et al, 2020) and micro-depot delivery (Rosenberg et al, 2021). Furthermore, in the case of reverse logistics, consumers' participation in waste collection,…”

Planning delivery-by-drone micro-fulfilment centres

“…Interest in UCCs and MFCs has grown recently due to new last mile technologies, such as drones. However, MFCs do not depend on any advanced technology; there are current MFC trials around the world that use cargo-bicycles (Rosenberg et al 2021). Furthermore, although companies have expressed for many years an interest to take the technology into the city, current trials of drone delivery are exclusive to rural areas.…”