Sustainable Cities by Collaborative Last Mile Parcel Delivery - Live Example Insight
Publication Name: Springer Proceedings in Earth and Environmental Sciences
Publication Date: 2024-01-01
Volume: Part F2516
Issue: Unknown
Page Range: 457-468
Description:
The restrictive measures during the Covid pandemic resulted in an unexpected growth in e-commerce, which growth has continued since the epidemic. The growth of e-commerce also increased the number of last mile parcel delivery transactions. The growth of last mile parcel logistics also resulted in an increasing number of cars, emissions and traffic problems. City governments introduce restrictive measures against increased environmental burdens, which imposes an additional burden on parcel logistics providers. Collaboration among last-mile service providers can assist boost productivity while at the same time lowering harmful environmental effects. However, there is little service provider cooperation in this industry. This study analyses the development of cooperation between service providers based on an examination of a Central-Eastern European Courier, Express, Parcel (CEP) market, which has market characteristics that can be referred to as typical for this area such as: a small number of dominant service providers; a large number of small service providers who are usually subcontractors of the dominant ones; individualistic operation. The market structure of the example country being presented is oligopoly, which is typical of the CEP market of the countries in the region. The analysis of the Hungarian market is supplemented by the creation of a model that simulates cooperation, which shows that the quantity of delivery vehicles, the distance travelled by the trucks, and the degree of environmental impact brought on by all of this can be decreased.
Open Access: Yes