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Retailer's Distribution and Local Time Window Policies
Abstract
This paper develops a framework for evaluating urban freight transport sustainability initiatives. The purpose of the framework is to identify basic dimensions and classifications for urban freight transport, to structure the urban freight transport field, and to identify critical success factors and barriers for successful urban freight transport sustainability initiatives. Based on a selective literature review in section 2, we develop the basic framework in section 3. We distinguish three phases that affect the results of an urban freight transport sustainability initiative: the design, the execution, and the evaluation. In the next section we provide classifications for all eight framework's basic dimensions, which together form the complete framework. In the final sections of this paper we divide the initiatives in twelve different initiative types to structure the urban freight transport field.
... According Quak and Koster [1], public policies to reduce impacts of freight transport usually are restrictive, such as heavy vehicle ban in particular areas or corridors, loading and unloading restricted times on public roads, vehicle weight restrictions on certain routes and zones, restricted time windows for reception and delivery of goods, and so on. However, despite the progress in urban distribution and logistics, there has not been enough research on the effect of these policies and measures on good's movement or the response of carriers and cargo owners to them, and the effects and impacts on the transport system and environment. ...
... A summary of public policies and actions applied to urban freight transport systems in Europe [6,7,8,9,10,1], Japan [11,12] and those proposed by Ogden [13], are described as follows: ...
The paper analyzes the impact of policies oriented to improve passenger public transportation and reduce emissions, on the traffic and emissions of Mexico City. Median and heavy trucks (over 3.5 tons) prohibition on the new BRT and trolleybus corridors are been implemented in Mexico City. We analyze the impact of such projects on the traffic, emissions and urban freight transportation. A macroscopic flow analysis (multimodal traffic assignment) for the estimation of flow and local emissions (NOx and CO) is used. Three scenarios area analyzed: current scenario, scenario with official prohibitions and scenario with real prohibitions. In order to compare the current scenario versus the other scenarios, a congestion index was used. The results do not show major impact on congestion index and emissions, but do on travel time for trucks. Medium and heavy trucks prohibition on arcs, belonging to the main freight transportation corridors, produces travel time increase (7%-9%) for these vehicles.
... Coordinated goods distribution systems have proven to indicate more efficient deliveries for retail and transport operators in terms of improved vehicle utilization, alleviated traffic conditions and a more eco-friendly culture of the delivery operations. There are many other literature sources where authors review implemented urban freight measures designed both as public policies and as logistics solutions of private operators [39][40][41][42][43][44][45][46][47][48][49][50]. ...
Purpose: Policy implementation in the logistics sector might drive unexpected side-effects which sometimes undermine the performance of key economic activities of logistics operators, especially in areas such as transport service, sustainability of operations, etc. Especially for the latter, there is a lack of understanding how the sustainability performance if retail logistics solutions is impacted on by policy implementation and, in turn, by operators’ responsive measures. This paper conducts a sustainability analysis of concrete innovative and already tested retail logistics solutions addressing the research question “what are the effects of retail logistics solutions on total costs and sustainability performance?” Methods: The analysis relies on the development and application of an indicator-based framework based on the key sustainability components (economy, environment, society) and enriched by the addition of the transport component. The framework assesses three different scenarios together with a business-as-is one: Urban Consolidation Centre, Tethering and Shared Bus accompanied with a Strengths-Weaknesses analysis. Data are provided by an international food retailer operating within the city of Antwerp, Belgium, but conclusions can be generalized due to wider applicability of measures and solutions examined. Results: External costs analysis shows that higher degree of internalization is achieved in the line-haul transport. Within an urban context, the measures that do not require significant initial investment and broad interventions are assessed as the most sustainable in our analysis. Tethering is the solution that indicates the highest sustainability score. Conclusions: The impact of innovative and already tested solutions relies on a variety of factors: organizational, urban context, type of goods transported, engagement of stakeholders, etc. In any case, innovation is crucial for urban retail logistics impacting on transport service, society, economy and environment. Any new retail business model should be designed with respect to cost efficiency and through a socially acceptable transition path.
Urban areas are vital centers of economic activity and innovation generating large economies of density and proximity. Yet, procuring and distributing goods in an urban context is fraught with difficulties because of infrastructure congestion, external costs, conflicting objectives among stakeholders, and asymmetric information. In order to improve the performance of the urban goods transport system many policies have been proposed, including goods vehicle time windows, vehicle-type restrictions, loading\unloading policies, fiscal policies, and the promotion urban transhipment and consolidation centres. Unfortunately, not much is known concerning how these policies affect the existing distribution practices. It is quite likely that the impact is differentiated by type of product and distribution channel. The aim of this paper is to explore this issue. Drawing on the existing literature and on the empirical evidence from some Italian cities, the paper identifies and discusses the relationship between each of the above-mentioned policies and the distribution channels of some goods (fresh food sold in retail stores, food distributed by Hotels, Restaurants and Catering (Ho.Re.Ca.), pharmaceutical products and clothing&footwear) which are commonly distributed in Italian urban centers. It is found that the distribution of pharmaceutical products is unaffected by these policies, whereas the distribution of fresh food is negatively affected especially by access time regulation and loading\unloading policies. The Ho.Re.Ca. and the clothing&footwear channels are likely to be impacted the most by fiscal policies and by the promotion of urban transhipment and consolidation centres.
Although our urbanized civilization requires freight transport in order to sustain it, urban freight transport is especially recognized for its unsustainable impacts. To reduce the unsustainable impacts of urban freight transport, many local governments develop policies that focus sometimes more on banning or restricting urban transport than on making it more sustainable. In the first part of this thesis we develop a framework to structure the urban freight transport field and to review urban fraight transport sustainability initiatives. The number of initiatives that is succesfully implemented in practice turns out te be quite low. In the review and the following analysis, we try to find the barriers for succesful implementation of the initiatives in practice. In the seond part we examine the impacts of the most commonly used local sustainability policies. Six time-window scenarios and their impacts on the economical, environmental and social sustainability are examined based on a multiple case study. Time-window regulations increase both the environmental and distribution costs. Retail chains are affected differently by time-window pressure and vehicle restrictions due to differences in their logical concept. based on an experiment we examine the effects of retailers' logical decisions in combination with local sustainability policies. Next, we examine the degree to which retailers are able te deal with problems caused by time-windows. Combining the primary and secondary distribution, i.e. factory gate pricing, results in more sustainable distribution operations for the retailer and in less sensivity towards time-window regulations.
The movement of goods or freight occurs in every urban area. However, such movements have not received the same level of attention as that given to the movements of people. We do not understand the effects of several massive changes affecting urban freight movements. This paper presents a comparative review of planning studies of the movement of goods in order to assess our current understanding and to provide a context for a research agenda on the movement of urban goods. The studies reviewed provide basic data such as time of day activity, trip and vehicle characteristics. However, they do not provide an understanding of the key relationships that underlie the movement of goods, including those related to land use/transport interaction. Basic research into an integrated modelling effort for urban goods movement (UGM) is needed to address issues associated with congestion and air quality that affect most major urban centres.
The Australian Road Transport Industry has undergone significant changes over the last 30 years. There have been three reviews and increases in the mass carrying limits of trucks. These occurred in the mid 1970s, the Economic Review of Vehicle Limits (ERVL), in the mid 1980s, the Review of Road Vehicle Limits (RoRVL) was undertaken, and the mid to late 1990s, the Mass Limits Review, which utilised the introduction of "road friendly" suspension systems to allow higher mass to be carried was implemented in most regions. Mass limit increases were however, just one means of delivering productivity gains. In the mid 1980s the adoption of a variation of the Canadian B-train (the B-Double) was introduced into Australia. This vehicle although longer could achieve payloads some 30% to 40% higher than the more conventional tractor-trailer combinations. In 1999 the National Road Transport Commission also adopted, and further developed another Canadian concept, that of "Performance Based Standards" (PBS). This effectively allowed for flexible truck design, as long as the vehicles performed against a set of up to 18 specific technical performance criteria. The Performance Based Standards approach to vehicle design has enormous implications for Urban Freight movements. Hit Words: High Productivity Vehicles, Performance Based Standards, B-Double, Australian Truck Design, Freight Transport, Freight Innovation, Urban Productivity.
The unsustainable nature of current urban transportation and land use is well recognized. What is less clear is the prescription for how to move towards a more sustainable future, especially given the many interest groups involved, the complexity of urban systems and the fragmented nature of decision-making in most urban regions. It is argued that the process of achieving more sustainable transportation requires suitable establishment of four pillars: effective governance of land use and transportation; fair, efficient, stable funding; strategic infrastructure investments; and attention to neighbour-hood design. A review of each pillar identifies key issues. The characteristics of an ideal body for governance of land use and transportation are considered. Trade-offs are identi-fied with: spatial representation; organizational structure; democracy; and market philos-ophy. Effective financing and pricing of urban transportation may be distorted because responsibility for infrastructure is separated from service provision. Financing mecha-nisms are categorized depending on vehicle use and location. Investment in infrastructure for alternative fuel vehicles and intermediate semi-rapid transit may be required in many cities. Major investment in public transit infrastructure will likely not suffice if macro land use and micro neighbourhood designs are not supportive of these investments.
This paper applies the theme of sustainable development to the case of urban transport and daily mobility of the inhabitants of a city. A set of indicators which simultaneously takes the three dimensions of sustainability—environmental, economic, and social—into account is suggested. We present here the results of exploratory research funded by Renault Automobile Manufacturers, carried out to verify the feasibility and the usefulness of elaborating such sustainable mobility indicators. Values of the economics, environmental and social indicators are presented for the Lyons case. These estimations are mainly based on the household travel survey held in this city in 1994–1995. In the end, this set of indicators should allow the comparison of different urban transport strategies within an urban area, but also between different urban contexts, and through time. The conditions of generalization of these measurements of indicators are then discussed.
Thesis (doctoral)--Erasmus Universiteit Rotterdam, 2004.
This paper presents a methodology for evaluating city logistics initiatives using a dynamic traffic simulation with optimal routing and scheduling. This methodology was applied to a test road network. The performance of three city logistics initiatives, advanced routing and scheduling systems, cooperative freight transport systems and load factor controls were assessed in terms of total costs and CO2 emissions by pickup/delivery trucks operations within the network. Results indicated that these initiatives were not only effective for reducing total costs, but also for CO2 emissions. The methodology presented here allows city planners to quantitatively evaluate city logistics initiatives.
The distribution of goods for urban areas is vital to the prosperity of these areas. Nevertheless, there are various environmental and accessibility problems related to the urban goods distribution process. Only a comprehensive set of policy actions, that addresses the problems at different geographical scales and at various functional levels in concert, can solve these problems. These functional levels refer to the organisational aspects of the system (logistics), the goods transport and goods traffic means, the infrastructures, and the spatial system in which the urban goods distribution process must function. Progressive innovation is required on all these levels to achieve an efficient urban goods distribution system, efficient both in terms of commercial interests and societal interests. In the thesis, an integrated long-term problem-solving vision of a future urban goods distribution system is developed. The proposed integrated logistics concept for urban goods distribution, is based on the optimal bundling of the movements of goods (consolidation) in time as well as space. This should be done by providing logistic services, such as city logistics, backbone logistics and network logistics, in close harmony with appropriate technological means, such as advanced vehicle technologies, advanced infrastructures, and other supporting systems. The integrated concepts are based on the application of different transport systems in different areas: that is, the concept is based on intermodality. Introducing such a complex, integrated goods distribution system will require a long string of co-ordinated actions from a wide variety of public and private actors. This necessitates the development and application of an implementation strategy that includes all the necessary actions.
This paper propose the implementation of a specific urban freight model, initially ordered by the French Transport Ministry, to analyse and compare the outputs of a few simulations derived from a number of senarios. These scenarios are based on appropriate assumptions to describe possible evolutions over a twenty years period in the field of urban logistics, in order to control the urban freight flows within the framework of sustainable development.
The Internet provides retailers with potentially powerful opportunities to boost sales, increase market share, and generate new business through new services. One of the challenging questions that retailers are facing in that respect is how to organize the logistic fulfillment processes during and after the transaction has taken place. Based on a survey of 55 online retailers (both traditional and Internet-only) this paper investigates the distribution strategies of these different retailer types. This includes the use of infrastructure not particularly designed for delivery to Internet customers like stores and store warehouses, the logistics outsourcing strategy and the company's choice of delivery area. The independent variables studied are the delivery lead times offered to customers, the assortment choice, the number of Internet customer orders and the company type (traditional retailer or not). It is argued and demonstrated that the distribution channel for Internet customers should be integrated with existing operations, but for larger Internet order volumes, traditional retailers should switch to direct-delivery distribution centers. The outsourcing and delivery area decision appear to be mainly determined by the complexity of the assortment.
Relatively little has been done by governments to facilitate the essential flows of goods in urban areas and to reduce the adverse impacts of urban goods transport on the communities served. This has resulted in increasing problems associated with goods delivery including competition with passenger transport for access to road infrastructure and space for parking/delivery facilities. How should OECD countries deal with the challenges they face in this area? This report analyses measures taken in many cities and provides recommendations for dealing with these challenges.
Purpose
Electric freight vehicles (EFVs) are one of the solutions to improve city logistics’ sustainability. EFVs, that are electric powered light and heavy vehicles with a number plate, have the potential to make zero emission city logistics possible within the urban area. However, although trials have been undertaken for the last years, large-scale usage of EFVs in city logistics does not occur yet. EFVs are technically possible, but the implementation of EFVs in practice is relatively limited.
Design
This chapter examines by reviewing current and past EFV implementations, what are the challenges, barriers and success factors for EFVs in city logistics operations. EFVs have especially positive environmental effects, but are overall usually more expensive (especially in procurement) than conventional vehicles. Besides, other technical and operational issues remain to be solved, and many uncertainties still exist on long-term usage.
Findings
Three main barriers for large-scale EFV uptake are identified. The current logistics concepts are developed for conventional vehicles and should be redesigned to fit EFVs better. Local authorities’ support is essential in order to find a positive (or not too negative) business case. And EFV implementation requires companies that want to be sustainable. This contribution presents examples of how some companies or authorities deal with these barriers.
Value
This chapter concludes by identifying elements that are necessary for acceleration of EFV uptake in city logistics operations.
Quantity-Based RM.- Single-Resource Capacity Control.- Network Capacity Control.- Overbooking.- Price-based RM.- Dynamic Pricing.- Auctions.- Common Elements.- Customer-Behavior and Market-Response Models.- The Economics of RM.- Estimation and Forecasting.- Industry Profiles.- Implementation.
City logistics is the process of totally optimising urban logistics activities by considering the social, environmental, economic, financial and energy impacts of urban freight movement. This book focuses on modelling City Logistics. Highlighted are the formulation of mathematical models of vehicle routing and scheduling with Intelligent Transportation Systems (ITS), optimal terminal locations and impact estimation by City Logistics measures. The book presents a theoretical and practical treatment of modelling City Logistics based on ITS and the Global Positioning and Geographical Information Systems.
City logistics aims globally to optimize logistics systems within an urban area by considering the costs and benefits of schemes to the public and private sectors alike. Private shippers and freight operators aim to reduce their freight costs, while the community attempts to alleviate traffic congestion and environmental problems. City logistics initiatives attempt to minimize the total costs of freight movement within urban areas. Schemes for reducing the environmental and social costs as well as the economic costs are sought. This paper describes the development and application of mathematical computer-based models that have been used in the planning and evaluation of city logistics schemes. A detailed description of several modelling approaches that have been developed to predict the effects of specific city logistics schemes is presented. Integrated modelling approaches that combine both optimization and simulation, such as dynamic flow simulation and multi-agent systems, allow the effects of city logistics schemes to be predicted.
Urban freight contributes significantly to pollution, noise disturbance, traffic congestion, and safety problems in city centers. In many cities, local governments have introduced policy measures, in particular time-access restrictions, to alleviate these problems. However, setting time windows is very challenging due to the conflicting interests and objectives of the stakeholders involved. In this article, we examine whether it is possible to develop time-window policies that enhance environmental sustainability and distribution efficiencies, while meeting the objectives of the municipalities. We develop a framework for balancing retailer (costs), municipality (satisfaction), and environmental (emissions) objectives, using data envelopment analysis, under different urban time-window policies. The approach is illustrated by a case study of three Dutch retail organizations, with a large number of stores affected by such time windows. On the basis of an evaluation of 99 different time-window policies, our results show that harmonizing time windows between neighboring cities leads to the best overall performance. The currently used time-window policy appears to perform reasonably well, but can be improved on all dimensions. However, harmonizing time-window policies may be difficult to realize in practice.
London's air quality has improved over recent decades, but is still the worst in the UK. Road transport emissions play an important part in this pollution. A low emission zone (LEZ) would help to accelerate the introduction of cleaner vehicles, and reduce the number of older, more polluting vehicles operating in London. Survey results indicate that there is some support among goods vehicle operators for a LEZ in London, depending on the precise scheme definition. Operators would generally try to comply with LEZ regulations, with most companies either using technical approaches to ensure that their London vehicle fleet complied with the required emission standard, or redeploying vehicles with the appropriate emission standard from other locations.
Environmental equity considerations should be an essential ingredient of any sustainable transport strategy. Yet, it is unclear how environmental equity considerations can be incorporated into the sustainable transport discourse in a meaningful manner. The paper explores the multiple facets of the meaning of environmental equity in the case of transport. Then, the issues that need to be addressed in any analysis of each facet are delineated. On this basis it is suggested that the conventional environmental equity analysis, whereby the affected areas are compared to unaffected areas, is unlikely to render robust or meaningful results. Rather, the focus of research should be on the equity implications of policies geared to mitigate transport systems' environmental externalities, and on comparisons of users of the different transportation systems to those exposed to the negative environmental externalities of these systems. The results of such studies could provide direct inputs into comprehensive balanced policy packages within a sustainable transport strategy.
For both passenger and freight transport, this paper presents analysis frameworks illustrating the interaction of factors that influence indicators of transport sustainability; identifies opportunities for policy intervention; and illustrates the possibility of unintended consequences of such intervention and the tradeoffs among the indicators. The frameworks account for systematic relationships, feedbacks, and rebound effects of making changes to the system. For passenger transport, physical, psychological, and social needs present themselves as primary influencers of sustainable transportation indicators. For freight, market forces and government policy are primary influencers of variables that are predominantly of an economic nature. Questions for future research are presented.
This paper presents a dynamic vehicle routing and scheduling model that incorporates real time information using variable travel times. Dynamic traffic simulation was used to update travel times. The model was applied to a test road network. Results indicated that the total cost decreased by implementing the dynamic vehicle routing and scheduling model with the real time information based on variable travel times compared with that of the forecast model. As well, in many cases total running times of vehicles were also decreased. Therefore, the dynamic vehicle routing and scheduling model will be beneficial for both carriers in reducing total costs and society at large by alleviating traffic congestion.
Usage of the word "sustainability" is widespread and incorporates a plethora of meanings. After reviewing four extant sustainability frameworks, we propose a Sustainability Hierarchy to structure a broad array of issues that have been associated with sustainability. These issues vary widely in their urgency, severity and uncertainty of consequences, and temporal and spatial dimensions. It categorizes actions some view as unsustainable based on their direct or indirect potential to (i) endanger the survival of humans; (ii) impair human health, (iii) cause species extinction or violate human rights; or (iv) reduce quality of life or have consequences that are inconsistent with other values, beliefs, or aesthetic preferences. Effects considered include impediments to the ecosystem functions that support human life, human health, and species viability. This paper argues that for sustainability to become a more meaningful concept, the many worthy issues in the fourth category (values, beliefs, and aesthetic preferences) should not be considered sustainability concerns. Implications for companies, policy makers, and scientists are discussed.
In industrialized countries, the number of studies and surveys in the field of urban goods movement (UGM) has increased considerably over recent years. This paper compares the objectives, methods and results in this sector and focuses on nine industrialized countries of Europe, America and Asia. This non-extensive review shows that in spite of different framework methods and models, similar trends emerge at the economic and environmental levels. It is necessary to take into account urban logistics in the broadest meaning of the term. Cooperative action seems to bear fruit providing that information and dialogue take place in the long-term with all the operators involved. The development of intelligent transport systems (ITS) and better management of urban facilities may improve these attempts. We present our viewpoint in order to shed light on research oriented towards the sustainable management of urban logistics.
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