agile urban logistics
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Agile Urban Logistics. 02/04/14. Project origins. GLA application to TSB Future Cities programme Hypothesis: the use of data, technology and innovative, collaborative business models to better manage systems and services in a city - PowerPoint PPT PresentationTRANSCRIPT
Freight & Fleet Programmes
Agile Urban Logistics 02/04/14
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• GLA application to TSB Future Cities programme• Hypothesis: the use of data, technology and innovative,
collaborative business models to better manage systems and services in a city
• Expose and exploit flexibility in supply and demand to better utilise resources – space, time, energy, materials
• Funding to support innovation in key sectors and to deliver against key city challenges –growth, congestion, pollution…
• Secured funding for demonstrator projects that can lead to deployment at scale
PROJECT ORIGINS
• The key growing road use in London• 43% growth projected to 2030• Growth of e-commerce is key driver • Rapid innovation in the home deliveries sector –
especially in the use of data, IT and business model innovation
• Can this be tailored towards Mayoral priorities to mitigate congestion and pollution?
VANS AND CONGESTION
OBJECTIVES
• Create fewer, fuller vehicles• Promote re-timing away from peak hours• Promote re-routing of journeys away from the most
congested roads and pollution hot spots• Promote consolidation and a reduction in the number
of pick-ups/drop-offs• Promote utilisation of low emission vehicles • Influence customer preferences to help achieve any or
all of the above
SWEET SPOT
commercial advantage
customer convenience
externalities
market inefficiencies
• Mayor’s office backing• Working with TfL Freight team• Timeframe: 2014-16• Funding: £750k - £1.5m (+ matched investments)• Three stages –
– Options appraisal, demonstrator design, buy-in– ‘On the ground’ demonstrator(s)– Evaluation
APPROACH
• Commissioned Arup to –
– Assess the state of the market– Understand capabilities & interest– Appraise options– Co-design demonstrator– Secure buy-in / commitments– Develop implementation plan– Establish evaluation framework
APPROACH – STAGE 1
Freight & Fleet Programmes
London Urban Logistics Overview
Peter Wilkinson - TfL
Dan Evanson - Arup
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Why have we focused on B2C
• Safety: Home Deliveries are typically executed by less regulated van fleets which already have a disproportionate (if less high profile than HGV) impact on TfL’s ‘Killed and Seriously Injured’ (KSI) statistics
• Congestion: Home delivery requires less efficient deliveries compared to traditional retail models and drives significantly more vehicles onto the roads, predominately in the peak hours
• Environment: The predominant fuel used is currently diesel which is high in nitrus oxide (NOx) and particulate matter (PM) outputs. This is enhanced by the high intensity multi-drop routes which result in very poor MPG performance, unwelcome driving behaviours such as engine idling and therefore even more pollutants
• The market is growing
• London is growing
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The National Picture
• 1st e-commerce delivery in 1994
• 2012 – 10% of retail spend (Royal Mail)
• 2018 – 21% of retail spend (British Retail Consortium)
Trend towards
Time sensitive deliveries (Shutl, DPD)
On line SKU explosion (amazon have 1,191,000)
Increased connectivity / confidence
Mobile and tablets
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The National Picture
In 2012, 400,000 tablets were given as Christmas gifts.
“Our behaviour as consumers is driving this change in e-commerce and freight deliveries; everyone needs to be part of the solution.”(CILT, 2014).
In 2013, there were over 4 million.
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The London Picture
There are really multiple E-commerce supply chains and all are constantly and rapidly evolving. We’re seeking to better understand the picture in London, and then to help suggest the most effective solutions
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Deliveries analysis to Organisation X in Zone 1 – 5 days data equivalent
In total 250 vehicles performed deliveries to Organisation X where 30 of them were purely for personal deliveries
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Arup Post Room Data – Amazon deliveries
Original date of delivery Delivery company Time booked14/01/2013 City Sprint 11
DPD 09Hermes 12Yodel 13
15/01/2013 City Sprint 09Parcel Force 12Yodel 11
16/01/2013 City Sprint 09Hermes 11
17/01/2013 City Sprint 10DPD 11Parcel Force 10Royal Mail (Special) 11Yodel 12
Amazon shipped circa 10% of the deliveries received when obvious business deliveries were discounted. Goods came via 18 different carriers
Taking a day in Jan as an example we can see that 5 different carriers deliver to our office. Parcel Force and City Sprint deliver just a few minutes apart!
*that companies may deliver non-Amazon as well
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Specific Concerns
• Building London centric knowledge
• Multiple attempted deliveries / returns
• Duplicate journeys
• Absence of collaboration (manufacturers, retailers and consumers)
• Road space
All in order to:
- Tackle inherent inefficiencies within London’s transport system
- Address these inefficiencies and mitigate their impacts
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Consumer Quotes
Essentially convenience - can grocery shop after hours from
living room. Also, shopping with small children is stressful so I
prefer to order onlineI live in Middlesex so don't want to have to
carry much home when commuting as will
probably be standing
If I can carry it easily and its not too valuable work is ok, otherwise I
prefer near home.
Depends on the opening hours of the pick-up
point: I need them to be open late in the evening
I would prefer something to be part of
my daily route. Whether this is near home, near work, or
near the principle train stations that I use on
my daily commute
I'd rather large items be delivered to Home
at a given, narrow, time slot.
Convenience of linked trips (public transport node on route home /
shop where I'd drive to do normal shopping)
Location, convenience and supporting local convenience store /
newsagent
if I have to go to shops and carry the items home,
the advantage of the delivery is lost
"Tube/train station- generally experience poor customer
service at these locations, so doubt they would be able to cope with parcel collections as well.
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Attendee Overview
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Discussion
Based upon what you’ve heard:
• What works well for ecommerce and home deliveries?
• What doesn’t work well?
• Are there any significant barriers to improve current operations?
• What is your view of the characteristics of different product supply chains?
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Break
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A Recap of the Questions for Discussion
Based upon what you’ve heard:
• What works well for ecommerce and home deliveries?
• What doesn’t work well?
• Are there any significant barriers to improve current operations?
• What is your view of the characteristics of different product supply chains?
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Potential Solutions for debate
• Examples solutions could be:
Alternative modes: use of electric vehicles, delivery of goods by rail into major rail terminals
Alternative modes: use of electric vehicles, delivery of goods by rail into major rail terminals
Click & Collect: In tube/NR stations and other regularly used locations
Click & Collect: In tube/NR stations and other regularly used locations
Lockerboxes: all couriers would be able to use them, not single branded
Lockerboxes: all couriers would be able to use them, not single branded
Penalty prices: charges put in place for deliveries into central London
Penalty prices: charges put in place for deliveries into central London
Consolidation of deliveries: combine deliveries in different areas by postcode
Consolidation of deliveries: combine deliveries in different areas by postcode
People power: community / neighbourhood based solutionPeople power: community / neighbourhood based solution
Out of hours delivery: if consumers prefer deliveries to be made at home, switch activity to times that better suit…
Out of hours delivery: if consumers prefer deliveries to be made at home, switch activity to times that better suit…
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Innovative Solutions
• Demonstrators
• Obstacles
• Viability
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Summary
• Objectives
• Progress
• Outputs from the session
• Next steps
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Questions?
For further information contact:
Thank you
Email: [email protected]: www.tfl.gov.uk
Peter Wilkinson: [email protected]
Dan Evanson: [email protected]