scholarly journals Understanding customers' adoption of express delivery service for last-mile delivery in the UK

Author(s):  
Shuya Zhong ◽  
Carl Lomas ◽  
Tracey Worth
2020 ◽  
Vol 12 (2) ◽  
pp. 456
Author(s):  
Dragan Lazarević ◽  
Libor Švadlenka ◽  
Valentina Radojičić ◽  
Momčilo Dobrodolac

A rapid development of Internet technologies creates new opportunities for e-commerce, which is one of the fastest-growing segments of the entire economy. For policymakers, the most important aspects of e-commerce are related to the cost reduction in transportation, facilitation of administration and communication, innovations at the market level, and environmental issues. An unavoidable part of the e-commerce production process is related to the postal service. New market expectations of modern society lead to the consideration of upgrading the traditional express delivery service in terms of time availability. In this paper, we propose a new 24-h availability of postal and courier service so-called “post express nonstop”. To assess the potential demand for this kind of service, we propose a forecasting procedure based on the Bass diffusion model. In particular, the research is directed toward the examination of environmental issues, considering both types of services—traditional and the proposed new one. A comparison is done by analyzing CO2 emissions in the last-mile delivery of goods to the users’ addresses. The experiment was carried out in the city of Belgrade, simulating the last-mile delivery under realistic conditions and controlling the fuel consumption and CO2 emissions. In accordance with the results of this experiment and the forecasted number of postal items, a projection of CO2 emissions for the new service from 2020 to 2025 was carried out. The results show a significant contribution of the proposed new express delivery service to environmental well-being and sustainability.


2018 ◽  
Vol 10 (12) ◽  
pp. 4560 ◽  
Author(s):  
Seung Ko ◽  
Sung Cho ◽  
Chulung Lee

Recently, last mile delivery has emerged as an essential process that greatly affects the opportunity of obtaining delivery service market share due to the rapid increase in the business-to-consumer (B2C) service market. Express delivery companies are investing to expand the capacity of hub terminals to handle increasing delivery volume. As for securing massive delivery quantity by investment, companies must examine the profitability between increasing delivery quantity and price. This study proposes two strategies for a company’s decision making regarding the adjustment of market density and price by developing a pricing and collaboration model based on the delivery time of the last mile process. A last mile delivery time function of market density is first derived from genetic algorithm (GA)-based simulation results of traveling salesman problem regarding the market density. The pricing model develops a procedure to determine the optimal price, maximizing the profit based on last mile delivery time function. In addition, a collaboration model, where a multi-objective integer programming problem is developed, is proposed to sustain long-term survival for small and medium-sized companies. In this paper, sensitivity analysis demonstrates the effect of delivery environment on the optimal price and profit. Also, a numerical example presents four different scenarios of the collaboration model to determine the applicability and efficiency of the model. These two proposed models present managerial insights for express delivery companies.


10.29007/vn4r ◽  
2019 ◽  
Author(s):  
Giridhar Maji ◽  
Sharmistha Mandal ◽  
Narayan Debnath ◽  
Soumya Sen

A very important issue with the e-commerce delivery service in most of the emerging economies including India is the last mile connectivity. Delivering products, booked online to the remote tier-2 and tier-3 cities remained “costly”. It is observed from firsthand experience with some well-known e-commerce brands in India that their delivery service partners tend to cancel orders that are far away from their tier-2 logistics hubs with the reason shown as “address out of delivery range”. Due to low order density in the far flanges of tier-2 and tier-3 cities arranging vehicles and delivery personnel become costly. In this paper, we propose an innovative delivery model to serve the remote areas by opening edge-hubs at selected places and employing local daily commuters for last mile delivery. Identifying the edge-hubs for opening distribution centers is a costly business if done using traditional field surveys. Here we propose the use of telecom call detail record (CDR) location data as an alternate way of identifying the hubs in real time with much less cost and time.


Author(s):  
Julian Allen ◽  
Tolga Bektas ◽  
Tom Cherrett ◽  
Oliver Bates ◽  
Adrian Friday ◽  
...  

The UK parcel sector generated almost £9 billion in revenue in 2015, with growth expected to increase by 15.6% to 2019 and is characterized by many independent players competing in an “everyone-delivers-everywhere” culture leading to much replication of vehicle activity. With road space in urban centers being increasingly reallocated to pavement widening, and bus and cycle lanes, there is growing interest in alternative solutions to the last-mile delivery problem. We make three contributions in this paper: firstly, through empirical analysis using carrier operational datasets, we quantify the characteristics of last-mile parcel operations and demonstrate the reliance placed on walking by vehicle drivers with their vans being parked at the curbside for on average 60% of the total vehicle round time; secondly, we introduce the concept of “portering” where vans rendezvous with porters who operate within specific geographical “patches” to service consignees on foot, potentially saving 86% in driving distance on some rounds and 69% in time; finally, we highlight the wider practical issues and optimization challenges associated with operating driving and portering rounds in inner urban areas.


2020 ◽  
Vol 17 (2) ◽  
pp. 1311-1317
Author(s):  
Hendra Gunawan ◽  
Nahry ◽  
Andyka Kusuma ◽  
Sarini Abdullah

Currently, parcel delivery activities are growing rapidly in the urban area along with the increase in online shopping transactions. This trend has an impact on the deterioration in the performance of the urban transportation system due to the increase of fleet of goods carriers as part of last mile delivery of online shopping. To overcome this situation, many countries have developed a delivery service using a parcel locker. In parcel locker service, consumers collect their shipments from lockers, which are mostly situated in public places, such as train stations, gas filling places, convenience stores, etc., instead of receiving them at their homes using a home delivery service. This service also exists in Indonesia, but its use is still not popular. This study aims to develop a choice model of last mile supply package between home delivery and parcel locker. The development of the model is based on the Binomial Logit Model. The calibration process uses the results of Stated Preference survey conducted to online shoppers who have not used parcel locker. Hypothetical conditions used in this survey represent the cost and location of a parcel locker. Location is represented by the shortest (<1 km), medium (1–3 km) and longest (3–5 km) distance of a parcel locker to the respondent’s home. Given the current cost, the potential demand for parcel lockers is 26%, 17% and 13% for short, medium and long distance, respectively. When the willingness to pay of the respondent is represented by a value whereby both methods will be chosen with the same probability, the parcel locker must offer a cost of 65% and 33%, respectively, of the home delivery option for the condition of short distance and medium distance; whereas the parcel locker cannot compete for long distance condition.


2019 ◽  
Vol 270 ◽  
pp. 03003
Author(s):  
Nahry ◽  
Alvin Farhan Vilardi

Online shopping businesses grow significantly in Indonesia, especially in Jakarta. Consumers find out that purchasing products online is more effective. Most of consumers in Jakarta choose direct (home) delivery as their last-mile delivery method, which proposes consumers to receive the purchased goods at home. E-commerce could minimize trip distance travelled by consumers, but distance travelled by delivery service vehicles increase. It causes new problems such as environmental issues. Parcel lockers method appeared as the solution, which proposes advantages for consumers and package delivery operators. Its scheme could minimize distance travelled by both. The packages that dropped in the lockers would be picked up, sorted, and delivered to other lockers. Consumers would pick up their goods by travelling to destination lockers. It could minimize delivery trips. This study observed the consumer's point of view on parcel lockers method, and analyse the potency of parcel lockers. This study was carried out by two online surveys with four main variables that are location, information, cost, and punctuality. The results found that punctuality is the most affecting factor (38.8%) for consumers in choosing type of delivery service. Based on the services, respondents prefer to choose parcel lockers (68.4%) rather than direct delivery.


2020 ◽  
Vol 12 (19) ◽  
pp. 8080 ◽  
Author(s):  
Feng Li ◽  
Zhi-Ping Fan ◽  
Bing-Bing Cao ◽  
Hai-Mei Lv

The last mile delivery service is an important part in the logistics service process of express enterprises. How to select a suitable logistics service mode for last mile delivery to maximize the delivery service capacity and minimize delivery service cost is a noteworthy problem, but studies on this problem are still lacking. In this paper, we first analyze three potential logistics service modes for last mile delivery, i.e., self-run mode, outsourcing mode, and alliance mode, and then propose a selection framework of logistics service mode for last mile delivery based on a two-dimensional matrix decision model according to the two dimensions of delivery service cost advantage and delivery service capability advantage. Next, we give the calculation formulas for the delivery service cost and delivery service capability. Furthermore, we propose a method for logistics service mode selection for last mile delivery according to delivery service costs and delivery service capabilities of three potential logistics service mode. Finally, we show the feasibility and effectiveness of the proposed method by a case analysis.


Author(s):  
Yu. Khamukov ◽  
M. Kanokova

The express delivery market in recent years has been growing at the level of 3-4%, and even in these conditions, not only is it not saturated, but the demand for it is growing. According to Oxford Economics, the growth of the air cargo market, which determines the volume of the express delivery market, accelerated at times up to 7% per year from 2013 to 2018 [1]. The biggest changes took place in 2016-17 due to a technological breakthrough in the field of logistics with the introduction of services such as drone delivery, processing orders on the blockchain, calculation of the delivery mode using artificial intelligence, etc. It was expected that due to the growing demand on fast delivery guaranteed, the number of express delivery employees worldwide will grow to 4.5 million over the next few years. But the coronavirus pandemic has accelerated this process. In the study “The Future of Freight Transportation. How new technologies and new thinking can change the movement of goods”, presented by the international network of consulting companies Deloitte in 2017, states that carriers have already solved many of the problems associated with the transportation of goods. But the “last mile delivery” stage has remained limiting the development of the delivery service. At this stage, companies suffer losses due to the concentration of logistics, algorithmic and kinematic tasks that cannot be automated with modern means and technologies for replacing human labor. Consequently, the use of alternative, unconventional technologies at this stage is a key condition for the mass development of delivery.


2020 ◽  
Vol 12 (14) ◽  
pp. 5844 ◽  
Author(s):  
Seung Yoon Ko ◽  
Ratna Permata Sari ◽  
Muzaffar Makhmudov ◽  
Chang Seong Ko

As e-commerce is rapidly expanding, efficient and competitive product delivery system to the final customer is highly required. Recently, the emergence of a smart platform is leading the transformation of distribution, performance, and quality in express delivery services, especially in the last-mile delivery. The business to consumer (B2C) through smart platforms such as Amazon in America and Coupang in Korea utilizes the differentiated delivery rates to increase the market share. In contrast, the small and medium-sized express delivery companies with low market share are trying hard to expand their market share. In order to fulfill all customer needs, collaboration is needed. This study aims to construct a collaboration model to maximize the net profit by considering the market density of each company. A Baduk board game is used to derive the last-mile delivery time function of market density. All companies in collaboration have to specialize the delivery items into certain service clustering types, which consist of regular, big sized/weighted, and cold items. The multi-objective programming model is developed based on max-sum and max-min criteria. The Shapley value and nucleolus approaches are applied to find the profit allocation. Finally, the applicability of the proposed collaboration model is shown through a numerical example.


Sign in / Sign up

Export Citation Format

Share Document