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1、GREEN LAST MILE EUROPE REPORT 2023Prepared with the support of:April 2023 Executive summary Definitions About the authors and partners Background to the report Green last mile topology Why is the green last mile relevant today?Participants of the report Review of initiatives Assessment of the value
2、of projects The environmental impact of the last mile Future last mile development concepts Conclusions and the future How do we plan to develop the report for next year?T&C and contact3835175177CONTENTSPrepared with the support of:EXECUTIVESUMMARYEXECUTIVE SUMMARY4The activiti
3、es of the global population are estimated to have caused approximately 1.0C of global warming above pre-industrial levels(IPCC,2018).According to a 2021 study published in Climate Dynamics,global warming is likely to cross a danger threshold of 1.5C between 2027 and 2042 if it continues to increase
4、at the current rate.This may be expected to have serious implications for the increased incidence of extreme weather events.In 2022,the European CEP market volume reached almost 16,5 billion parcels(Data source:Effigy Consulting).The CEP industry is being propelled by the expansion of e-commerce,whi
5、ch is,in turn,fuelled by customers demand for more affordable products in the face of inflation,initially generated by COVID19 and now,the Russian invasion of Ukraine.This has led to a dramatic increase in the number of parcel related vehicles on the streets and to the carbon footprint associated wi
6、th them.Estimates from UPIDO suggest that the carbon footprint linked withe-commerce parcel delivery can be as high as 5.5 million metric tonnes in 2032 and it is for this reason that this isa matter of great relevance in the battle to protect our planet.More importantly,we could potentially reduce
7、this carbon footprint by over 91%in just a decade,or to put it more visually,save over one forest the size of the Black Forrest in this time.EXECUTIVE SUMMARY EXECUTIVE SUMMARY5EXECUTIVE SUMMARY In this context,it is important that,thanks to the foresight and support of Parcel Pending by Quadient,Sa
8、meday and Swipbox,we have been able to,once again,take a close look at the green Last Mile from the perspective of operators and market stakeholders.E-commerce currently represents over 70%of European CEP volumes and is considered by many experts to be more sustainable than bricks&mortar shopping.La
9、st mile delivery and packaging are responsible for 40%of all e-commerce emissions and,unfortunately,as was the case last year,despite continued communication activities by many stakeholders regarding their green policies,our feeling is that unfortunately much of this is”greenwashing”and that few pla
10、yers,especially amongst carriers,are really making headway in creating a green last mile.On a more positive note,some large operators,notably DPD Group as well as several larger local heroes in the such as PostNord,Posten Norge,InPost,bpost,Posti and Evri are genuinely seeking to“walk the talk”in th
11、e green last mile.There is also a large group of smaller,younger and dynamic companies such as bloq.it or Smartmile which are seeking to address this area albeit their impact is more limited by the coverage that presently have.Some larger organisations are beginning to choose SBTi measures and proce
12、dures to ensure the quality and credibility of their sustainable achievements(and to secure themselves from green washing accusations).This years data shows that the actions of players across the logistics industry are being noticed,but that no major CEP players are currently owning this space in a
13、way that could drive brand differentiation for them.Moreover,just 13%of Logistics brands have a strong consumer profile in the area of sustainability according to Kantars research.Fortunately,customers are becoming more demanding about sustainability in the logistics and last mile process,with recen
14、t research showing that almost 80%*of customers choose eco-friendly deliveries when having such an option but are still not willing to pay for it.*Ecommerce Delivery Benchmark Report 2023EXECUTIVE SUMMARY6EXECUTIVE SUMMARY In general,customers assume that retailers and logistics companies should tak
15、e care of this issue,which demonstrates the need for stakeholder education,given the many cost-free“green”options available to consignees such as OOH or consolidation of orders.Sustainability has,nevertheless,become an important element(circa 10%)of brand value according to Kantar.Due to a lack of c
16、omparative data or independent audits,it is hard to fully evaluate individual projects,albeit from our research we have been able to identify key areas of opportunity and where the quick wins are,as well as the longer term potential for a greener last mile.So what is the right way forward?To achieve
17、 significant(net zero)sustainable results,our experts have concluded that all stakeholders must be active and included retailers,delivery companies,consumers,local authorities,governments and regulators.While EVs appear to have a key impact in creating a green last mile,the infrastructure which will
18、 allow them to be used at scale is still being developed.For now,education of all last mile stakeholders continues to be a major opportunity in achieving better and more ecological delivery via shipping less air,driving responsible consumer patterns or ordering parcels when and where the consignee c
19、an really collect them.For the above to work well,development of efficient and proximate OOH networks and other forms of last mile consolidation such as urban consolidation points and nano hubs are needed.This will lead to aggregated parcel flows being delivered near to the consignee and allowing fo
20、r 100%(or close to this)first time delivery rates.Experience from developed OOH markets has shown that this can reduce the carbon footprint by up to in urban areas and even more in rural ones.Fortunately,achieving increased OOH delivery is quite realistic,in Poland,a highly developed OOH market,InPo
21、st NPS for locker delivery has grown to an incredible 94 and the overwhelming majority of customers consider parcel locker delivery to be the most eco-friendly.EXECUTIVE SUMMARY7EXECUTIVE SUMMARY Cargo bikes are becoming increasingly popular as a sustainable alternative to traditional delivery vehic
22、les in dense urban areas.In fact,a simulation model was used to compare the delivery processes of a logistics service provider using either conventional diesel-powered vehicles or cargo bikes in combination with a micro-hub in a large German city.Results showed that the use of cargo bikes resulted i
23、n significant reductions in CO2 emissions(circa 65.5%)and operational costs(circa 38.6%).Finally,while futuristic projects such as robotic autonomously guided vehicles or drone delivery will be developing,they are not expected to have effect,at scale,in the nearest years.Unfortunately,without legisl
24、ative action providing a carrot for those already inclined to“go green”and a stick for those who are not ready to act,we do not see the green last mile developing fast enough.It is the role of NGOs and carriers and other stakeholders to impress upon on local and national governments,the need for act
25、ion that is timely and effective.For the sake of future generations,we sincerely hope that this will be the case.DEFINITIONSPrepared with the support of:9DEFINITIONSTERMS&DEFINITIONSDefinitions and abbreviations used in the report AGV Automated Guided Vehicle APM Parcel locker BOPIS Buy Online,Picku
26、p In Store B2C Business to Consumer B2B Business to Business C2C Consumer to Consumer C2X Consumer to anyone CEE Central Eastern Europe CEP Courier Express Parcel CO2 Carbon dioxide CO2e CO2 equivalent COD Cash on Delivery CoE Centre of Excellence CWM Come With Me function CX Customer Experience DEF
27、RA Department for Environment Food&Rural Affairs D2D Door to Door delivery ESG Environmental,Social and Governance EV Electric Vehicles GHG Greenhouse Gas IDM Interactive Delivery Management10DEFINITIONSTERMS&DEFINITIONSDefinitions and abbreviations used in the report KPI Key Performance Indicator L
28、AST MILE Leg of a journey comprising the movement of goods from a distribution centre to a final destination LBG Liquefied Bio Gas LME Last Mile Experts OOH Out Of Home NGO Non-Governmental Organisation NOx Nitrogen Oxides NPS Net Promoter Score Paczkomaty Reserved name for InPost parcel locker PMO
29、Project Management Office PPP Public Private Partnership PUDO Pick Up And Drop Off Location SLA Service Level Agreement UAV Unmanned Aerial Vehicle UN DESA United Nations Department of Economic and Social Affairs11DEFINITIONSTERMS&DEFINITIONSTerms used in the report SBTi Scientific Based Target init
30、iative provides companies with a framework to set targets that are aligned with the goal of limiting global warming to well below 2C above pre-industrial levels.As part of this framework,companies are required to set targets for their Scope 1 and 2 emissions.Scope 1 emissionsScope 1 covers emissions
31、 from sources that an organisation owns or controls directly for example from burning fuel in our fleet of vehicles(if theyre not electrically-powered).Scope 2 emissionsScope 2 are emissions that a company causes indirectly when the energy it purchases and uses is produced.For example,for our electr
32、ic fleet vehicles the emissions from the generation of the electricity theyre powered by would fall into this category.Scope 3 emissionsScope 3 encompasses emissions that are not produced by the company itself,and not the result of activities from assets owned or controlled by them,but by those that
33、 its indirectly responsible for,up and down its value chain.An example of this is when we buy,use and dispose of products from suppliers.Scope 3 emissions include all sources not within the scope 1 and 2 boundaries.Source:https:/ IS THE LAST MILE?The term“Last mile”has been borrowed from the telecom
34、munications industry,where it describes the difficulty of connecting usershomes or businesses to the main telecommunication network.Our definition of the“last mile”,in logistics,covers all of the parcel flows from the moment an item leaves the outbound ramp at a manufacturers/retail/e-commerce wareh
35、ouse.This can actually involve the“first mile”to a carrier logistics facility,the“middle mile”between various hubs anddepots,and the last mile from the local delivery facility to the end consignee.The last mile is important because it is critical for any retail/e-commerce customer experience as an i
36、tem that is undelivered,damaged or late is arguably the most important service failure on the part of the merchant.Moreover,based on LME,our internal research and calculations,the last mile makes up some 30-60%of all supply chain costs for B2C parcels and,more relevant to this report,is a key elemen
37、t of the carbon footprint created by e-commerce B2C parcel flows.13DEFINITIONSGREEN LAST MILE VS SUSTAINABLE LAST MILEGreen Logistics,although not having a clear or legally defined meaning,is commonly understood to focus on economic return with a concurrent positive effect on the environment.Sustain
38、ability,is a broader,forward-looking concept that considers the needs of society,the environment,and economic benefits all at once.In this report,we generally use the term green,but many of the projects we discuss are actually more aligned with the idea of sustainability.The importance of environmen
39、tal sustainability is growing for many consumers,who are increasingly choosing services and products with lower environmental impact,even if they are not the most cost-effective options.This trend is particularly prevalent in the Nordic region.Some businesses have come to realise the financial benef
40、its of sustainability,especially as the effects of climate change become increasingly evident.Legislative and policy decisions are also beginning to promote sustainability,such as the implementation of low and zero emission zones in cities,the phasing out of combustion cars,and the promotion of walk
41、ing in 15-minute city models*.Global human activities are believed to have caused approximately 1.0C of global warming above pre-industrial levels(Intergovernmental Panel on Climate Change,2018),According to a 2021 study published in Climate Dynamics,global warming is likely to cross the threshold f
42、or dangerous warming of 1.5C between 2027 and 2042(2018 studies showed a time frame of 2030 2052).This could result in increased incidents of extreme weather and threats to biodiversity,posing a significant threat to human life.The United Nations Framework for the Convention on Climate Change(UNFCCC
43、)and the Paris Accord,with its nationally determined contribution(NDC)targets,are among the international treaties beginning to influence national legislation and policy to meet these challenges.Also the EU has implemented a number of regulations and laws aimed at reducing greenhouse gas emissions a
44、nd promoting sustainability.These include the EU Emissions Trading System,the Renewable Energy Directive,and regulations on energy efficiency and eco-friendly products.*”15 minute city model”refers to a planning concept where essential services,amenities,and places of work are located within a 15-mi
45、nute walking or cycling distance from peoples homes.ABOUT THE AUTHORS AND PARTNERSPrepared with the support of:ABOUT THE AUTHORS AND PARTNERS15LAST MILE EXPERTSOur focus drives Your SUCCESS!Last Mile Experts is a specialist CEP and E-commerce last mile consultancy.Our team have joint experience of s
46、everal hundred years and are supported by partnered specialists throughout the globe,who help us deliver industry best practice in even the most focused areas.In addition to the above,we have relationships with many key suppliers of hardware and software for route optimisation,sortation or tracking
47、and control.Very few consultancies are so specialised and hence our mottoABOUT THE AUTHORS AND PARTNERS16WHAT WE DO AT LAST MILE EXPERTSAt Last Mile Experts,we support our clients to develop,deliver and sustain competitive advantage across a number of critical business areas but focusing on Courier
48、Express Parcel and e-commerce last mile:Business operating models including cross-border General or specific operations solutions Hardware and software selection and contract negotiation People and organisational development Research and benchmarking Support in negotiating the best SLAs and commerci
49、al terms Strategic as well as operational pricing and product portfolio managementMergers&acquisitions including market reviews,pre-deal due diligence and post-deal advisoryE-commerce/Amazon and the last mile Out of Home delivery options including APMs and HUBs(lockers)and PUDOs(access points).Strat
50、egic planning and commercial propositionInterim/turnaround managementABOUT THE AUTHORS AND PARTNERS17CO-AUTHOR-LAST MILE EXPERTS MANAGING PARTNERMAREK RYCKIExperience in courier industry Financial Controller-DHL Express Poland Financial Controller-DHL Express Poland 1990 Founder,Masterlink Express(n
51、ow DPD Polska)1991 Turnaround CEO Masterlink Express 1999-2004 CEO CEE,DPD 2004-2006 CEO CSEE DPD 2006-2013 VP Amazon Logistics Europe 2014-2015 Deal Advisor SB Member Pekaes SA 2015-2017 Deal Advisor SB Member Advent/InPost S.A 2016-2017 Deal Advisor SB Advisor Urgent Cargus S.A.2017-2019 Board Adv
52、isor Trendyol Turkey 2020-2022 Board Advisor eMag/Sameday Romania 2020-Board Advisor Nova Poshta Ukraine 2022-Achievements Created leading domestic CEP carrier in Poland(DPD Polska)Successful turnaround of 10+BUs Developed the most homogenous road based parcel network in CSEE Tripled DPD CSEE revenu
53、e from 2006-2013,with industry beating ROS Conceived and implemented IT4EM(ERP for several DPD markets)Part of start up team for Amazon Flex,Fresh and Prime Now Participated in creating the successful post acquisition restructuring plan for InPost Supported implementation of OOH strategy for Trendyo
54、l(TR)and eMag/Sameday(RO,HU,BG)Selected Projects Complete nationwide PUDO/locker implementation plan in CEE Restructuring of some 10 CEP businesses Launch of fuel surcharge throughout DPD CSEE Launch of PUDOs 16 countries IT4EM/IDM capability at DPD CSEE Helped acquire or sell over 10 CEP businesses
55、Summary Entrepreneurial ex-regional CEO with multicultural experience;a courier express parcel,restructuring and last mile e-commerce background.A team builder with a strong industry network who has operated in various CEP markets,especially Poland,with a proven track record of success even in very
56、challenging circumstances.ABOUT THE AUTHORS AND PARTNERS18Experience in courier industry Operations Supervisor,Oversea Courier Services 1992-1996 International Operations Manager,M.S.Stolica 1996-2003(GSA for Airborne Express,FedEx,Aramex/GDA,Net Express)Founder,COO of MACS brokerage&freight forv.19
57、98-2004 Key Account Manager,Frans Maas Polska 2004 International Operations Manager,M.S.Stolica 2004-2005 Industrial Engineering Manager,UPS Polska 2005-2010 PM,UPS NE District 2010-2011 Industrial Engineering Manager,UPS EMEA Region 2011-2013 Outside Service Providers Manager,UPS Polska 2013-2014 P
58、M,Central Hub construction,UPS Polska 2014-2015 COO,UPS Polska 2015-2019 PRO Partner Last Mile Experts,CEP consultant 2020-2021 Partner,Vice President Last Mile Experts 2021-Achievements OCS,Airborne Express,FedEx and Aramex(GDA)next day international services implementation across the Poland Full o
59、perational and IT integration of UPS and acquired M.S.Stolica UPS Nordics HQ and Stockholm package centre relocation UPS stage one integration with acquired Kiala B2C company UPS Poland central hub construction and distribution network redesign UPS Poland best operational performance worldwide CO-AU
60、THOR LAST MILE EXPERTS PARTNERMIREK GRALSelected Projects Cofounder of Polish Express Carriers Forum GSE contracts with Airborne Express,FedEx and Aramex UPS Polska integration with M.S.Stolica and complete distribution network redesign Launching UPS intercontinental flights via Warsaw airport First
61、 stage of Kiala B2C/PUDO business merge with UPS network Renegotiations of Polish UPS Outside Service Providers service agreements with new SLA implementation UPS Poland feeder&hubs network redesign BREXIT operational set up redesign for UPS Poland.Subject matter expert during few DDs in CEE CEP mar
62、ketSummaryMore than 30 years of experience in CEP industry supported by cooperation with the largest players on the international market.Leader and Team player with organisational and planning skills followed by experience of work abroad with multinational/multicultural environment and time critical
63、 projects.ABOUT THE AUTHORS AND PARTNERS19Selected Projects Introduction of international courier services in Poland for Chronopost and DPD GSE contracts with Pony Express,New Silk Road and others.Board member of Polish Express Carriers Forum Purchase,integration and development of Air Cargo Poland(
64、one of the largest Polish air freight forwarders and custom agencies)Building or adaptation of over 60 operational depots and Hubs Creation of several International delivery networks including Baltic Logistic System(Posten AB)and Road to Russia(DPD Polska)Experience in courier industry KN Air(Subsid
65、ary of Kuhne ubd Nagel)Customer service supervisor 1992-1994 FedEx Country Manager Masterlink Express 1994-1997 Regional Operations Director Masterlink Express 1997-1998 International Operations Department Director Masterlink Express (Owner Posten AB/GeoPost)1998-2005 International Department Direct
66、or DPD Polska and VP in Air Cargo Poland 2005-2014 Administrative Director DPD Polska 2005 2014 Partner Last Mile Experts,CEP consultant 2016 PPM,Central Hub construction,DPD Polska 2010-2012 Creating a network of over 1000 Pickup/Drop off facilities in Poland Achievements Together with my operation
67、al team granted Circle of Excellence FedEx award for best operational performance in the world.As ACP Vice President/Operations Manager,first restructured and then developed the company from a mid size,loss making,customs agency into one of the largest Freight Forwarders in Poland(c.100 MPLN turnove
68、r,8%ROS)Member of Masterlink Express restructuring team(after two years,the company showing a loss at the level of 50%of its turnover,started to yield profit).The success achieved thanks attention to costs,quality and sales processes Over 20%reduction of international service costs per parcel within
69、 two years from takeoverCO-AUTHOR LAST MILE EXPERTS PARTNERGREG KRUPASummaryHas over 30 years of experience in the CEP industry and has a proven track record of success,even in challenging circumstances.Collaborated with the largest players in the international market,demonstrating strong leadership
70、 skills and the ability to work effectively as part of a team.With exceptional organizational and planning skills,they have overseen a variety of time-critical projects.In addition to technical expertise,has extensive experience working in a multinational/multicultural environment,adapting seamlessl
71、y to diverse cultures and customs.ABOUT THE AUTHORS AND PARTNERS20OUR PARTNERSPARCEL PENDING BY QUADIENTQuadient is a global leader in smart locker solutions for residential,retail,carrier,commercial,and university clients.With nearly 75 million packages delivered through Parcel Pending by Quadient
72、lockers annually,Quadients fast-growing global locker network delivers a safe,secure,and on-demand experience for parcel deliveries and returns.Millions of users rely on Quadients vertical-,location-,and carrier-agnostic parcel locker solutions.The companys parcel network now encompasses circa 18,00
73、0 locations around the world,with new units being deployed across North America,Europe,and Japan.Parcel Pending by Quadient smart locker solutions are currently used to support a wide range of business needs,with partners including major global carriers(e.g.,Yamato Transport and Sagawa in Japan;Rela
74、is Colis in France;DPD,DHL,and Evri in the UK;DHL in Sweden;Purolator in Canada),retailers(e.g.,Lowes Home Improvement in the US and Canada;FNAC,Auchan,and Decathlon in France),residential housing providers(the US leader in multifamily and growing in the UK and France),higher education institutions(
75、e.g.,University of Pittsburgh and University of Alabama in the US;University of Northampton in the UK),and commercial property developers and managers.By focusing on three key solution areas,Intelligent Communication Automation,Parcel Locker Solutions and Mail-Related Solutions,Quadient helps simpli
76、fy the connection between people and what matters.A 1.02 billion company with a direct presence in 26 countries and services sold in c.80 countries,Quadient is the driving force behind the worlds most meaningful customer experiences.ABOUT THE AUTHORS AND PARTNERS21OUR PARTNERSSAMEDAYSameday is the l
77、eading Romanian B2C parcel carrier company,providing a full range of delivery services and operating the largest automated parcel machines(APM)network in Romania,Hungary and Bulgaria.With a strong customer-centric focus,throughout its 15 years of operation,Sameday continually innovates and uses tech
78、nology to create new opportunities for people,communities and industries.Accordingly,Sameday is this years logistic sector champion and registered the highest growth across all pillars,improving its overall CX Score by 0.39 points compared to last year,according to The Romanian 2022 Customer Experie
79、nce Report developed by KPMG in Romania.This is the result of the brands commitment to investing in solutions that translate into reduced time and effort among customers and increased convenience.The Romanian courier company aims to reinvent the day-to-day delivery experience and uses technology to
80、develop a delivery infrastructure and services that open new ways for their partners and employees growth.Being the result of e-commerce,last-mile,and technology teams working together,Sameday benefits from the perfect combination that enables them to create value for their customers and offer corre
81、ct business solutions to their clients needs.Their determination in pursuing a vision of creating a customer-centric technological last mile is the cornerstone,a delivery experience that unites Eastern European countries.After entering the Hungarian market in 2020,Sameday launched services in 2022 a
82、lso in Bulgaria aiming to offer cross-border delivery services with the same facility as domestic delivery.Sameday is a company that has seen constantly double-digit growth since joining the eMAG Group,a Naspers company,in 2017.This is due to the development of the business through the expansion of
83、the easybox network,which has now exceeded 4500 lockers at the regional level.Source:https:/ THE AUTHORS AND PARTNERS22OUR PARTNERSSWIPBOXSwipBox was founded in 2012 based on the idea of thinking about last mile from a different perspective.This thinking quickly proved successful,with parcel lockers
84、 giving end users more freedom in terms of picking up their parcels,while also reducing the courier carbon footprint by consolidating deliveries.Since then,we have continued to focus on innovation,user-friendliness and sustainability,and in 2019 we launched our app-operated,battery-driven Infinity p
85、arcel locker.Energy-efficient and highly recyclableThe Infinity locker has an extremely low power consumption.In fact,over a 10-year period it only uses the same amount of energy as brewing a pot of coffee.The low power consumption is the result of a power-optimised chip and an extremely energy-effi
86、cient design,which ensures that the locker only uses power when an end user or courier is connected to it through an app.Efficiency has also been thought into the hardware construction.In fact,the SwipBox Infinity parcel locker has been designed for disassembly,with 98.8%of materials easily disposed
87、 of in standard waste fractions.SwipBox innovative company with a focus on the user experienceSwipBox is focused on creating the worlds best user experience for delivering and picking up parcels using parcel lockers.Through a combination of intuitive network management software and hassle-free,app-o
88、perated parcel lockers,SwipBox delivers maximum convenience to logistics providers,retailers and end users alike.The company is headquartered in Denmark and has additional offices in Pakistan,Poland and Australia.Together they have thousands of SwipBox parcel lockers in 30+countries.In 2022 alone,Sw
89、ipBox partners installed more than 15,000 Infinity parcel lockers,proving the simplicity of installation.ABOUT THE AUTHORS AND PARTNERS23Jos Anson is founder of UPIDO(Unlimited Parcel Intelligence&Data Outreach).He holds a PhD in economics from the University of Lausanne(Switzerland)and made a caree
90、r as an economist in international organisation including the World Bank,the World Trade Organization and the United Nations.He currently leads economic and big data research at the Universal Postal Union.He is known for having developed the methodology for the Integrated Index For Postal Developmen
91、t(2IDP)which ranks the best postal services in the world every year.Jose is the author of numerous scientific publications in peer-reviewed economic journals in the area of international trade,development economics and postal economics,and his research is extensively cited by other economists.UPIDO
92、provides delivery intelligence-as-a-service continually monitoring e-commerce and the CEP industry evolutions in more than 100 countries.Thanks to proprietary machine learning algorithms,it has produced highly reliable B2C parcel volumes,predictions and forecasts,enabling parcel and postal companies
93、 to anticipate better in the new delivery normal resulting from the Covid-19 crisis.UPIDO predictions have been used to prevent delivery failures,better plan the holiday season,anticipate major shifts in online consumer behaviour,and design the next generation delivery services with artificial intel
94、ligence.Thanks to its accurate online shoppers demand prediction,UPIDO brings timely insights to unleash greater lifetime value creation for all e-commerce ecosystem players.UPIDO also strongly supports postal and parcel companies to leverage their unique data assets and better serve customers in th
95、eir country and worldwide.CONTRIBUTORJos Anson,UPIDO FounderABOUT THE AUTHORS AND PARTNERS24CONTRIBUTORFiaz Gul,Postal Strategy and Transformation ExpertFiaz GulFiaz Gul is an independent postal strategy and last-mile expert currently based in the United Kingdom.He has worked for ten years at Pakist
96、an Post where he has delivered as area manager of ninety delivery and booking post offices.He has also worked as head of international mail at the Lahore Office of Exchange for four years where he delivered a customer-driven transformation project and got short-listed for World Post and Parcel Award
97、 2021 in the customer service category.Fiaz has also designed and delivered projects such as Same Day Delivery(SDD),EMS Plus(International Mail),and Automation of Booking,Transmission and Delivery of mail at Post Offices.Fiaz has great experience in people management,training and motivation.He has l
98、ed around 700 employees as area manager and head of international mail at Lahore OE.He is also an author and writer.Recently,he has authored“21st Century Business Strategy for Posts in Developing Countries”and“Customer Driven Transformation of Lahore OE.ABOUT THE AUTHORS AND PARTNERS25CONTRIBUTORJoh
99、an Peeters is a seasoned professional with over ten years of experience in driving positive change.His expertise has earned him a reputation as a go-to consultant for sustainable last-mile services.Forthebpost group he deliveredan innovative concept for emission-free parcel delivery that has already
100、 earned the Environmental Achievement of the Year award(2021),and is featured in the World Economic Forums toolbox for decarbonizing urban ecosystems.Verified results from the University of Brussels(VUB-MOBILISE)have shown that his approach is not only sustainable but delivers real benefits to citie
101、s worldwide.His commitment to making a positive impact on the world is evident in his work.His ability to bridge cooperation between industry leaders,government officials,and local inhabitants has produced a vast amount of applicable insights that can be put to work for cities all over the world.Joh
102、an Peeters,owner of FishermenABOUT THE AUTHORS AND PARTNERS26CONTRIBUTORKantar is the worlds leading marketing data and analytics company.We have a complete,unique and rounded understanding of how people think,feel and act;globally and locally in over 90 markets.By combining the deep expertise of ou
103、r people,our data resources and benchmarks and our innovative analytics and technology,we help our clientsunderstand peopleandinspire growth.Graham Staplehurst is the global brand strategy expert on Kantars BrandZ project.He consults with an array of clients drawing on experience from a wide range o
104、f blue-chip companies including FMCG,automotive,telecoms.And finance with branding,advertising,media and communications issues.Also contributes regularly to Kantar thought leadership on brand&communications topics.Client Director in the Postal and Logistics Unit.Will has researched the postal indust
105、ry for many years and worked with major logistics players including Royal Mail,IPC,Canada Post and Australia Post.He helped launch JICMAIL,a currency for the direct mail industry proving the efficacy of direct mail advertising.Jonathan Hall is the Managing Partner of Kantars Sustainable Transformati
106、on Practice,leading the team,solution development,thought leadership and business management for all of our client work in the social and environmental space across the world.Graham Staplehurst,Thought Leadership DirectorWill Simpson,Client DirectorJonathan Hall,Managing Partner,Sustainable Transfor
107、mation PracticeBACKGROUND TO THE REPORTPrepared with the support of:BACKGROUND TO THE REPORT28BACKGROUND TO THE REPORTBased on data from Effigy Consulting,the European market for Courier,Express,and Parcel(CEP)is projected to experience a 9.1%decline in volume in 2022 when compared to 2021.This decl
108、ine is expected to result in around 16.5 billion parcels,down from 18.148 billion in 2021.The CEP industrys previous rapid growth,fuelled by COVID 19 enhanced e-commerce,has come to a sudden halt due to inflation and general uncertainty resulting from the war in Ukraine,though it still surpasses pre
109、-COVID levels.Additionally,there is a possibility of a general business slowdown and potential economic crises in 2023 that could impact the growth of the European parcel market,although the extent of the effect remains increasingly uncertain and dependent on various factors.As a result of this new
110、market reality,some CEP players may be hesitant to introduce new sustainable initiatives unless they align with cost-saving measures.Our report focuses on the impact of the last mile on the environment and aims to identify key trends and initiatives targeted at addressing this growing environmental
111、issue.We seek to understand the underlying causes of the carbon footprint and assess the future impact on the environment,assuming no action is taken or the use of best-in-class Green Last Mile projects.The CEP market is served by a mix of carriers,including national postal operators and commercial
112、carriers or parcel locker operators.In recent years,faster delivery times and the need for localised stock have become increasingly relevant.Consumers are becoming more aware of the sustainability related consequences of the last mile and expect the stakeholders of the process to adapt their activit
113、ies to alleviate the impact.LME has extensive knowledge of this market and has already shared various studies and reports in the public domain.Along with our partners,we aim to provide an initial status report on an area that is widely discussed,but where few significant initiatives are currently vi
114、sible.We have directly contacted all key operators and used industry media and business social media(especially our sister business,the Last Mile Prophets)to gather project submissions.This has resulted in 22 varied projects across several markets that cover various aspects of the last mile includin
115、g two cases covering future potential development.One of the most significant and disappointing findings is the prevalence of greenwashing,across the board.Few players have a coherent and effective green last mile strategy and can truly walk their green talk.However,some businesses are taking this i
116、ssue seriously,and other stakeholders,particularly local authorities and governments,are becoming actively involved in monitoring and controlling the environmental impact of the last mile.BACKGROUND TO THE REPORT29What can you find in this report?What are the sources and methodology?Who will benefit
117、 from our report?Projects&Case Studies The report covers green last mile initiatives from all Logistics&CEP organisations who have shared information about their green initiatives on the European arena as well as selected other projects that we have been able to identify with desk research or in exp
118、ert interviews.We also seek to identify the most promising initiatives and to extrapolate what their impact could be if they were to be implemented on a wider scale.The main sources for the report are:Extensive desk research on the CEP market covering company press releases,websites and other source
119、s.Use of UPIDOs advance internet search algorithm outcomes to estimate CO2 emissions in 27 EU countries plus Norway,Switzerland and the UK.Published information on the environmental impact of the CEP last mile.Interviews with senior-level expert contacts in the market.LMEs own,in depth,expert knowle
120、dge.Verification by subject matter experts including the Last Mile Experts team and Jose Anson(UPIDO),Muhammad Fiaz Gul,Graham Staplehurst(Kantar),Jonathan Hall(Kantar),William Simpson(Kantar)and Johan Peeters(Fishermen)have been made to confirm our data and conclusions.Where the actual or published
121、 data is not available,we have made estimations based upon our market knowledge.The report is intended for:Owners and operators of CEP networks.Online retailers.Governmental departments and local authorities.Investors in these businesses.Market regulators and policymakers.Journalists and editors of
122、newspapers and magazines.Analysts,consultants and other stakeholders.All business cases have been described by the solution owners and have not been subject to any modifications by Last Mile Experts.Both the content and the vocabulary used in the descriptions come from the authors and owners of the
123、projects.Last Mile Experts do not bear civil and legal liability for possible inaccuracies and errors in project descriptions.BACKGROUND TO THE REPORT30NOTES TO THE REPORT It has been very difficult to obtain concrete carbon emissions data from companies who do not generally provide detailed or curr
124、ent data.Data has been obtained from contributors to the report,publicly available sources and from commercially available sources.The data published represents the latest information available from these sources at the time we carried out our research.The authors have reviewed company websites and
125、publications or news items.Moreover,we have conducted numerous interviews(CEOs or senior-level CEP experts and data&research consultancies)to develop our core knowledge and understanding of the environment.Finally,we have used the Last Mile Experts teams own market“know how”and expectations for futu
126、re developments.GREEN LAST MILE TOPOLOGYPrepared with the support of:GREEN LAST MILE TOPOLOGY32GREEN LAST MILE TOPOLOGYProjects generally fall into 3 key categories:Operational:where the last mile is made greener due to operational efficiency(i.e.shorter routes and better first time delivery),eco dr
127、iving as a result of driver training and monitoring or simply by using less polluting vehicles such as EVs or cargo bikes.Infrastructural:where infrastructure allows for consolidated collections or deliveries as is the case with PUDO,lockers or urban consolidation points or where the logistics infra
128、structure itself,is greener due to investment in solar cells,heat exchange pumps or simply better heat insulation.Administrative:where the carbon footprint is“offset”by planting trees or where emissions are monitored and controlled by local or central government and then charges are applied to disco
129、urage the most damaging carriers.In some cases this could even lead to a complete ban on certain vehicle/engine types in a given geography.132GREEN LAST MILE TOPOLOGY33GREEN LAST MILE TOPOLOGY Operational Low emission vehicles Eco driving Route optimisation Interactive Delivery ManagementInfrastruct
130、ural Out-of-home delivery Consolidation points Green facilitiesAdministrative Auditing Carbon offsetSource:Otto-von-Guericke University Magdeburg Source:Parcel Pending by QuadientSource:Photo:Marco Verch https:/ LAST MILE TOPOLOGY34GREEN LAST MILE TOPOLOGY E-commerce sellers are the biggest generato
131、rs of parcels in Europe,and therefore,the largest contributors to greenhouse gas emissions in this sector.According to Effigy Consulting,in 2021,European e-commerce(B2C and C2X)accounted for 13.3 billion parcels,representing over 73%of the total European CEP parcel volume.As of 2022,the percentage r
132、emains at a similar level.According to the DPDgroup,the transportation of a parcel causes an average of 0.6 kg of CO2 emissions,which amounts to a total of almost 8 million tonnes in 2021 and circa 7,2 million tonnes(estimated volume decrease of circa 10%B2C&C2X shipments in 2022 vs 2021)in 2022 of
133、CO2 emissions all over Europe,due to online shopping alone.However,other research by Oliver Wyman(figure 1)shows that compared to offline shopping,e-commerce has a positive environmental impact as it results in an average 2,3(from 1.5 up to even to 2.9)times fewer greenhouse gas emissions.Although e
134、-commerce relies on delivery vans,they reduce car traffic by four to nine times more than they generate.Moreover,e-commerce uses less land than physical retail,considering logistics,selling space,and parking.Figure 1 CO2e impact of a product purchsed through different sales channels in EuropeSource:
135、Oliver Wyman analysisGREEN LAST MILE TOPOLOGY35GREEN LAST MILE TOPOLOGY Even though there appears to be a clear sustainable advantage of online over bricks&mortar shopping in Europe,we have to strive to further reduce the generated CO2e emissions.The last mile delivery and packaging contribute up to
136、 40%(figure 1)of the e-commerce delivery CO2e impact and therefore,carbon emission reduction projects in these areas can provide significant sustainable gains.Sustainability has become an important issue for many customers and consumers in the logistics sector.The growing awareness of environmental
137、challenges and their impact on society has led to an increasing demand for companies to adopt sustainable practices in their operations.Customers and consumers are now more inclined to purchase products and services from companies that demonstrate a genuine commitment to sustainability.Moreover,comp
138、anies that prioritise sustainability are seeing a significant increase in their brand value.Consumers are becoming more aware of the environmental and social impact of their purchasing decisions,and they prefer to support brands that align with their values.Companies that invest in sustainable pract
139、ices and initiatives are likely to attract and retain customers who value environmentally conscious products and services.Further details on this topic can be found in a dedicated chapter prepared by Kantar.The Metapack Ecommerce Delivery Benchmark Report 2023 also indicates that factors such as del
140、ivery costs and eco-friendliness are gaining importance,while the significance of speedy and convenient delivery is declining.This suggests that despite the current economic slowdown and the fact that more people have financial concerns,sustainability should not be compromised,but rather improved.Th
141、e same report also finds that sustainability is playing an increasingly significant role in shaping purchasing decisions.Nearly 4 out of 5(79%)consumers worldwide prioritise having eco-friendly delivery choices when making online purchases,marking a rise from 74%the previous year.GREEN LAST MILE TOP
142、OLOGY36GREEN LAST MILE TOPOLOGY In line with consumers rising sustainability expectations European CEP organisations are increasingly introducing science-based sustainability targets in order to demonstrate the effectiveness of their actions and avoid accusations of greenwashing.The Scientific Based
143、 Target initiative(SBTi)has almost 4800*participating companies,with a significant representation from the European CEP market,including Austrian Post,bpost,Correios de Portugal,Deutsche Post,GeoPost/DPDgroup,Hrvatska Posta,InPost,La Poste,Posten Norge,Posti Finland,Post NL,PostNord,Royal Mail or Sw
144、iss Post*.Science-based targets are described as a clearly defined plan for businesses to reduce their greenhouse gas(GHG)emissions in order to mitigate the severe effects of climate change and ensure the continued growth of the business.These targets are classified as science-based when they align
145、with the most recent climate science findings and aim to achieve the objectives of the Paris Agreement,which includes keeping the increase in global temperatures to well below 2C above pre-industrial levels and making efforts to limit the temperature increase to 1.5C.The process for companies to est
146、ablish science-based targets to reduce greenhouse gas emissions involves five steps:making a commitment,developing the target,submitting it for validation,communicating it to stakeholders,and disclosing annual progress reports.This process ensures that the targets are credible and based on the lates
147、t scientific findings.Companies with approved science-based targets are achieving significant reductions in greenhouse gas emissions,with a collective 12%reduction in scope 1 and 2 emissions in 2020,resulting in a total decrease of 29%between 2015 and 2020.SBTi-approved companies have surpassed thei
148、r peers within their countries in reducing emissions.Although an annual 4.2%reduction is required for 1.5C alignment,SBTi-approved companies have achieved a linear rate of 8.8%scope 1+2 reductions per year*.However,28%of companies have not disclosed any public information on progress towards their t
149、argets,highlighting the need for harmonised reporting.*Source:SBTi https:/sciencebasedtargets.org/companies-taking-actionGREEN LAST MILE TOPOLOGY37GREEN LAST MILE TOPOLOGY Figure2 shows scope 1 emissions and scope 2 market-based emissions,where available.As per the Greenhouse Gas Protocol scope 2 gu
150、idance,if a companys market-based data was not available,location-based data was used to represent the lowest-granularity market-based data and still the SBTi led projects show significantly better reduction results.In conclusion,the introduction of science-based sustainability targets by European C
151、EP organisations demonstrates a commitment to reducing greenhouse gas emissions and mitigating the effects of climate change.The process of establishing science-based targets ensures that these targets are aligned with the latest scientific findings and are credible.The impact of science-based targe
152、ts on reducing greenhouse gas emissions is significant,and the need for harmonised reporting is essential to ensure transparency and accountability in achieving these targets.Figure 2:Gross scope 1 and 2 emissions change rate from companies with approved targets vs.the global economy(2015-2020)Guida
153、nce Source:SBTi Progress Report 2021GREEN LAST MILE TOPOLOGY38GREEN LAST MILE TOPOLOGY As a company deeply committed to Corporate Social Responsibility and environmental protection,we are proud to sponsor this years Green Last Mile report.Conducting our business in an ethical and responsible manner
154、is a core value of our company and we believe it is essential for sustainable growth and success.Our proven experience and scale in the parcel locker business globally have led us to believe that our Parcel Locker Solutions are a key component for making the e-commerce last mile more sustainable.Our
155、 solutions contribute to reducing fuel usage and CO2 emissions with less trucks in circulation,cost optimisation for retailers and carriers,and convenient 24/7 availability for consumers.The early and wide adoption of our parcel locker solutions,in the US and Japan in particular,confirms their relev
156、ance as a key differentiator in a growing e-commerce market.Furthermore,our open network of Parcel Pending by Quadient lockers is attracting more and more players who are interested in diversifying their delivery offer.Our highlighted project with Relais Colis within Carrefour stores is a powerful e
157、xample of how our solutions make life easier for our partners and their customers while paving the way for a greener delivery process.We hope that readers will find the Green Last Mile Report 2023 informative and insightful in how businesses can contribute to making e-commerce delivery more efficien
158、t and environmentally friendly in the years to come.Benoit Berson,Chief Solution Officer PLS,Parcel Pending by QuadientGREEN LAST MILE TOPOLOGY39GREEN LAST MILE TOPOLOGY So why are lockers and PUDOs so effective?Today,with the exception of home office which took root after COVID19,people are general
159、ly not at home to receive deliveries during the working day,when most carriers deliver.One of the most comprehensive reviews of actual first time delivery failure rates(Edwards et al.,2009)shows that failure can vary considerably,ranging from around 2%to an incredible 50%.Whilst the data is now quit
160、e old,new research from Which.co.uk?found that failed deliveries remain a key issue.This is in part due to carriers varied policies regarding signature on delivery or leave safe options(safe place or leave with neighbour).This is compounded by the fact that the vast majority of B2C parcels dont fit
161、in a standard domestic letterbox.In fact,the Which?report(2019)found that 24%of couriers did not actually follow customer instructions,probably due to poor process communication or lack of time on the carrier side.Moreover,just 32%of consumers reported that everything went to plan with the delivery.
162、Deliveries failed for a number of reasons including:29%of deliveries arriving earlier than expected.17%of deliveries arriving later than expected.GREEN LAST MILE TOPOLOGY40GREEN LAST MILE TOPOLOGY Late or failed deliveries are a significant source of frustration for customers and can have severe rep
163、ercussions for businesses,impacting their reputation with consumers.Moreover,customers are increasingly finding indirect ways to voice their complaints,which can prove especially detrimental to eCommerce companies.In fact,when asked about reasons for delayed deliveries over the past year,41%of consu
164、mers blamed the retailer,while 32%faulted the courier.*Remedies for these service failures often carry financial penalties for the retailer,but negative reviews and complaints can be even more costly.A significant number of customers,including 12%who leave bad online reviews and 9%who complain on so
165、cial media,are willing to publicly air their grievances.The impact of negative feedback on brand reputation cannot be overstated,especially considering that 93%of consumers read reviews before making a purchase.Even just three negative reviews can deter almost 6 in 10 potential customers(59%).Its im
166、portant to keep in mind that even customers who remain silent,without leaving negative feedback,may still decide not to return.In 2020,the average first-time delivery failure rate was 7%in Germany,and 6%in the UK,costing an average of 14.69,and 11.60 per failed delivery*.In conclusion,late or failed
167、 deliveries can have significant negative consequences for both customers and businesses.Customers may become frustrated and voice their complaints through negative online reviews and social media posts,which can damage a businesss reputation and deter potential customers.The financial impact of the
168、se service failures can also be substantial,with penalties for retailers and the average cost per failed delivery being relatively high.As such,it is crucial for businesses to prioritise effective delivery management and seek to minimise the occurrence of late or failed deliveries to maintain positi
169、ve customer experiences and preserve their reputation in the market.Keeping with the focus of this report,first time delivery also reduces the carbon footprint due to elimination of return driving and processing by couriers.*Source:Fixing Failed Deliveries report by Loqate GREEN LAST MILE TOPOLOGY41
170、GREEN LAST MILE TOPOLOGY Where Delivery attempts fail,customers often have to go to a local depot to pick up their parcels after missed home deliveries,as couriers typically make only two,three delivery attempts before requiring a customer to collect the package.However,research by Edwards et al.(20
171、09)revealed that the distance to collect a parcel from a depot is directly linked to the total carbon dioxide emissions produced.Even the shortest average distance of 15km,representing a trip from the city centre to the suburbs to collect a package,generates a total of 3,113g CO2 when driving a car
172、and 1,340g CO2 when using public transportation.The trip to the local depot accounts for the majority of CO2 emissions associated with failed deliveries.Although this distance may vary for carriers with a dense OOH network,failed deliveries often result in the package being returned to a depot that
173、can be several kilometres away from the recipient.Accordingly,minimising emissions from failed delivery and personal consumer travel to depots or even returns to sender is crucial for reducing the environmental impact of failed deliveries and achieving important sustainability benefits.Furthermore,r
174、eliable delivery is highly valued by customers in e-commerce,as noted by Vakulenko et al.(2019).While new developments in delivery technology such as IDM can improve success rates,they can also negatively affect parcel consolidation and routing efficiency if not used well,especially when customers a
175、re able to select their own delivery windows instead of accepting push notifications from carriers based on optimised routes or when an automatic leave safe/at a proximate OOH location option is not available.GREEN LAST MILE TOPOLOGY42GREEN LAST MILE TOPOLOGY Parcel lockers and pick-up/drop-off poin
176、ts(PUDOs)are fixed B2B-like locations,generally with good visibility,parking,and extended opening hours,which allows for simpler and more efficient routing strategies.Moreover,APMs and PUDOs significantly reduce the number of failed deliveries.Last Mile Experts estimates show that first-time deliver
177、y success rates are usually above 99%for most items(excluding cash on delivery or seller push products that may not have been explicitly requested by the consignee).Using some postal terminology“slipper distance”*(ca 350m*in an urban area)is key for customer centric and effective delivery in the las
178、t mile and this is why in places where a dense and,proximate OOH network exists,amongst others in Sweden,France,United Kingdom,Poland,Hungary,Finland,Czech Republic,Belgium or the Baltic States,these options are highly regarded by consignees.In fact,Kantar research from 2022 showed that the NPS for
179、InPost parcel locker delivery in Poland was an incredible 94,beating all other parcel delivery methods.At the same time NPS for shipping via an InPost locker reached 81-a 6%increase year over year.The survey also shows that 85%of online shoppers consider Parcel Lockers to be the most eco-friendly de
180、livery option.*bpost term *Based upon research from Posten NorgeFigure 3:Comparison of Last Mile Delivery ModesSource:Last Mile ExpertsThis table is based upon one developed by BESTUFS.net with modifications and updates by Last Mile Experts.*Pantry=non perishable groceries*Fresh availability is subj
181、ect to chill chain requirements being met*Unless COD or push sell item*Generally for fresh or“white gloves”*Where locker use is optimised*Can be mitigated with camerasComparison of Last Mile Delivery ModesAttended DeliveryDrop box/Delivery boxSmartlock/Controlled AccessAPM(locker)PUDO/Access PointLa
182、st mile served byCarrierCarrierCarrierConsigneeConsigneeConsignee presentYesNoNoNoNoItems ShippedAllCEP/Pantry*CEP/Pantry*/FreshCEP/Pantry*/Fresh*(size restricted)CEP/Pantry*/Fresh*(size restricted)First Time Delivery SuccessHighInsignificant*Insignificant*Insignificant*Insignificant*Delivery time W
183、indowFixed carrier push/Customer Pull*Carrier operating hoursCarrier operating hoursCarrier/location hoursPUDO hoursCollection timesNA24/724/724/7/location hoursPUDO hoursConsignee retrieval timeNoneMinimalMinimalSubject to APM location rulesSubject to PUDO location rulesDrop off timeLongMinimalMini
184、malSubject to APM locationSubject to PUDO locationCapex/ParcelMediumLowlowMedium/Low*Low/MediumDelivery cost/ParcelHighMediumMediumLowest*LowOperations issuesFailed delivery,low parcels per stopNeed for suitable size/density of boxes and accessCustomer security concerns*Customer travel to locationCu
185、stomer travel to locationCarbon reduction vs D2DNAModerateModerateHighest*HighGREEN LAST MILE TOPOLOGY43GREEN LAST MILE TOPOLOGYThese charts from a recent InPost report by the TOR Consulting team show the operational differences and resulting carbon footprint for home delivery and out of home(APM)de
186、livery in a nice and easy to understand format.Figure 5:Comparison of Last Mile Delivery Modes parcel locker vs.Home delivery.Source:TOR,Parcel locker machines reportFigure 4:Comparison of Last Mile Delivery Modes home delivery.Source:TOR,Parcel locker machines reportGREEN LAST MILE TOPOLOGY44GREEN
187、LAST MILE TOPOLOGY-POLANDDue to its having the largest number of APMs in Europe,it is worth drilling down in Poland.According to the latest survey,by Gemius,InPost Paczkomaty remains the top choice for delivery among online shoppers,with 81%reporting that they use this service most frequently.In con
188、trast,only 43%of e-consumers opt for home or work delivery by courier.The survey also confirmed InPosts dominance in the overall courier delivery sector,with DPD and DHL following behind.Among the eco-friendly delivery options,parcel locker delivery was the most popular(67%),followed by delivery to
189、a PUDO point(49%)and delivery via BOPIS(48%).However,only 38%of respondents considered home or work delivery by a courier as eco-friendly.The most important issue related to ecological forms of delivering goods,as perceived by respondents,is the use of environmentally friendly packaging(65%).Second
190、on the list is the possibility of using reusable packaging(53%).The issues of carbon footprint(33%)and transportation by electric vehicles(25%)are perceived as less important by those surveyed.Interestingly,choice of delivery option is not seen by consumers to be an issue,which only confirms the nee
191、d for consumer education.Figure 5:Delivery preference survey resultsSource:Gemius,E-commerce w Polsce 2022Figure 6:Eco-friendliness perception of deliverySource:Gemius,E-commerce w Polsce 2022GREEN LAST MILE TOPOLOGY45GREEN LAST MILE TOPOLOGYUrban micro hubs are compact logistics centres located wit
192、hin cities that enable efficient and sustainable delivery of goods.These hubs act as a bridge between the larger distribution centres and the final delivery destination,reducing the number of vehicles required to make deliveries and therefore minimising the carbon footprint.By consolidating deliveri
193、es in a single location,urban micro hubs optimise the use of vehicles,which reduces traffic congestion and lowers emissions.Additionally,since these hubs are located in urban areas,they allow for last-mile deliveries to be made via cargo bikes,electric cargo bikes or electric vehicles,further reduci
194、ng emissions and improving sustainability.Overall,urban micro hubs are an innovative and practical solution to the challenges of delivering goods in urban areas,offering increased efficiency,sustainability,and reduced environmental impact.This is especially the case if they are shared”by several car
195、riers.In early 2023,a study was conducted to explore emerging trends in urban logistics.The study specifically focused on two concepts,Urban Consolidation Centres(UCCs)and Micro Hubs,and analysed the requirements of various stakeholders in urban logistics such as manufacturers,retailers,and logistic
196、s service providers.The results of the survey indicated that approximately 70%of companies envisage using urban logistics solutions like UCCs and Micro Hubs in the near future,as these concepts offer a competitive edge.However,new concepts must be understood by central and local government so that m
197、unicipal regulations strengthen them and support success.The primary challenges and risks associated with implementing these concepts include education,coordinating efforts,costs and potential fluctuations in consumer buying habits.The previously mentioned cargo and electric cargo bikes are becoming
198、 popular for last-mile delivery in urban areas due to their sustainability benefits and agility in the urban environment.A simulation model of a large German city showed that using cargo bikes with a micro-hub resulted in CO2 emission savings of 65.5%and cost savings of 38.6%.However,implementing mi
199、cro-hubs beyond the pilot stage is still hindered by several barriers.The solution proposed is the use of urban-friendly nano-hubs,a modular design concept that enables the large-scale implementation of small transhipment hubs for cargo bike swap bodies within the delivery areas.More details on this
200、 matter can be found in a chapter prepared by Dr Tom Assman from Otto-von-Guericke University Magdeburg.Source:ULAADS-Miebach Consulting,alongside JLL and the Research Lab Urban Transport(ReLUT)of Frankfurt University of Applied SciencesGREEN LAST MILE TOPOLOGY46GREEN LAST MILE TOPOLOGYAre parcel lo
201、cker deliveries really more eco-friendly than direct Home delivery?Lets take a closer look.Most available research shows that if all courier transport moved to proximate and efficient parcel lockers,it would be possible to reduce CO2 emissions by up to 2/3 in urban areas and even more in rural ones.
202、Of fundamental importance is distance,and in a market like Poland where the average distance from the parcel machine or PUDO to the customers home is slipper distance”or about 350m in urban areas and where the access point is always on my way”the risk of a dedicated car trip is mitigated.According t
203、o the Green Generation report,37%of respondents reach parcel machines walking.Moreover,according to the same survey,62%of customers take out their parcels“on their way”,for example when returning from work,traditional shopping or walking.Some people are also willing to choose a bike(or electric scoo
204、ter),certainly better for the environment,because cyclists had 84%lower CO2 emissions from all daily travel than non-cyclists and life cycle CO2 emissions decreased by 14%for each additional cycling trip*.Having stated that APMs and PUDOs have the highest CO2 reduction rate of all forms of delivery,
205、it is worth highlighting the rationale for the development of OOH networks towards agnostic networks,which,being open to any logistics operator,show even greater potential for reducing emissions at the last mile.The popularity of parcel machine deliveries is one of the main drivers for the developme
206、nt of these networks.Supporting the above,the SwipBox Kontaktfri study demonstrated a direct correlation between the number of parcels delivered to lockers and the potential CO2 savings,highlighting the effectiveness of the locker concept.In this particular case,where SwipBox lockers that are locate
207、d in close proximity to end-users for 12 parcels are delivered per stop(versus a typical number of just over 1 for home delivery),the potential savings could reach 63%,while with 24 parcels,the savings could increase up to 82%.*Green Generation 2021”,Mobile Institute,in partnership with Allegro and
208、ukasiewicz-ILiM.*Transportation Research Part D,Volume 93,April 2021,102764WHY ISTHE GREENLAST MILERELEVANTTODAY?Prepared with the support of:WHY THE GREEN LAST MILE IS RELEVANT TODAY?48IMPACT OF E-COMMERCE ON THE LAST MILEIntroductionThe following sections bring together a collection of articles wr
209、itten by Green experts in and around the field of sustainable last mile delivery.The aim of these articles is to share a range of views on the challenges and opportunities facing the last-mile delivery sector,with a focus on promoting sustainable solutions for the environment and local communities.T
210、he first article,The Impact of E-commerce on Local Communities:Challenges and Opportunities for Sustainable Delivery Solutions discusses the impact of e-commerce on local communities and the challenges faced in the last mile delivery process,particularly in urban areas.It highlights the negative imp
211、acts of delivery traffic on urban areas and how e-commerce companies can invest in sustainable delivery solutions.The second article,The Benefits of Sustainability:Helping Consumers Do the Right Thing,The article discusses the importance of sustainability for the logistics and postal industry,and ho
212、w companies that incorporate sustainable practices into their business model are more likely to perform better financially and recover quicker from crises.The third article,Designing a Greener Roadmap for Last-Mile Deliveries in London and Other Large Urban Centres in Europe,focuses on the developme
213、nt of a greener roadmap for last mile deliveries in large urban centres such as London.The article discusses the challenges faced by delivery companies in implementing sustainable solutions and provides insights into the development of a roadmap for greener last mile deliveries.The fourth article di
214、scusses the growing use of micro-hubs and cargo bikes for last-mile logistics in urban areas due to their sustainability and cost-effectiveness,and introduce the proposal of modular and urban-friendly nano-hubs.Overall,these articles help build a comprehensive view of the challenges and opportunitie
215、s facing the sustainable last mile delivery sector and offer practical solutions for promoting sustainability in the last-mile.WHY THE GREEN LAST MILE IS RELEVANT TODAY?49IMPACT OF E-COMMERCE ON THE LAST MILEThe Impact of E-commerce on Local Communities:Challenges and Opportunities for Sustainable D
216、elivery SolutionsBy Johan Peeters.Logistics is a crucial aspect of the modern-day business world,as it plays a pivotal role in the efficient delivery of goods to customers.However,logistics can also have a significant impact on local communities,particularly in the area of the last mile delivery.In
217、this article,we will explore the impact of e-commerce on local communities,the trend towards urbanisation in Europe,and how logistics can contribute to a healthier and more livable society.The growth of e-commerce has brought many benefits to consumers,including convenience,choice,and accessibility.
218、It has revolutionised the way we shop,making it easier and more convenient than ever to buy what we need from the comfort of our homes.However,it has also created new challenges for local communities,particularly with regards to the last mile delivery.The last mile refers to the final step of delive
219、ring a package to the customer and can be complex and costly due to factors such as crowded city streets,limited parking,and navigating complex building access codes.Studies have shown that increased delivery traffic can have negative impacts on urban areas,such as air pollution,congestion,and road
220、maintenance.In turn,local taxpayers are often left to bear the costs of these impacts.For example,a 2019 study by the European Environmental Agency found that the rapid growth of e-commerce and last mile deliveries are contributing to increased traffic congestion in urban areas and increasing emissi
221、ons from delivery vehicles.The exact contribution of consumer movement to emissions related to parcel delivery in Europe is not widely reported.However,the transportation sector is a major contributor to greenhouse gas emissions globally and is a significant source of air pollution in urban areas.Th
222、e increase in e-commerce and last-mile deliveries has contributed to the growth of delivery traffic in urban areas.WHY THE GREEN LAST MILE IS RELEVANT TODAY?50Furthermore,e-commerce companies often use local delivery contractors and subcontracted delivery services to complete the last mile,which may
223、 not have the resources to invest in sustainable delivery solutions,such as electric vehicles,bike delivery,and congestion pricing.As a result,cities are forced to introduce new regulations to manage delivery traffic,such as restrictions on delivery times and access to certain areas,which can be dif
224、ficult to enforce and the cost of implementation is often also borne by local taxpayers.It is important for e-commerce companies to consider their role in reducing the burden on local taxpayers by investing in sustainable delivery solutions and working with cities.A 2020 study by the World Bank foun
225、d that cities can work with e-commerce companies to encourage sustainable delivery practices and share the costs of implementation,leading to a win-win scenario for both parties.By investing in solutions such as consolidated delivery via urban consolidation points or OOH points,electric vehicles and
226、 bike delivery,e-commerce companies can reduce their environmental footprint and support local communities.Cities can also play a role in encouraging sustainable delivery practices.By working with e-commerce companies to share the costs of implementation,cities can ensure that the benefits of online
227、 retail are shared by all.For example,the city of Amsterdam has been working with e-commerce companies to implement bike delivery and reduce the number of delivery trucks on the road,resulting in reduced traffic and improved air quality.The trend towards urbanisation is another important factor to c
228、onsider when looking at the impact of logistics on local communities.According to the United Nations Department of Economic and Social Affairs(UN DESA),approximately 74%of the European population lived in urban areas in 2018.This is a significant increase from previous years,and reflects the growing
229、 trend towards urbanisation in the region.Urbanisation brings with it a range of challenges,including increased traffic,pollution,and pressure on infrastructure.As more people move to cities,the demand for goods and services increases,leading to more delivery vehicles on the road and greater congest
230、ion.This is particularly true for the last mile delivery,where vehicles have to navigate busy urban streets and find parking in areas where space is limited.IMPACT OF E-COMMERCE ON THE LAST MILEWHY THE GREEN LAST MILE IS RELEVANT TODAY?51To address these challenges,cities are increasingly turning to
231、 sustainable transportation solutions,such as electric vehicles,bike delivery,and public transport.These solutions not only reduce the environmental footprint of logistics but also contribute to a healthier and more liveable society.For example,the city of Copenhagen has implemented a range of susta
232、inable transportation initiatives,including a bicycle superhighway network and a new metro line,which have helped to reduce traffic congestion and improve air quality.In addition to sustainable transportation,out-of-home solutions such as locker and pick-up points can provide customers with more con
233、venient and flexible delivery options and can reduce the costs associated with door-to-door delivery.The convenience for the customer depends on their individual preferences and needs.Door-to-door delivery provides the benefit of delivery directly to the customers location,which can be convenient fo
234、r those who are unable to leave their homes or who have limited mobility.On the other hand,out-of-home delivery solutions,such as pickup points or locker systems,can be more convenient for those who are not at home during regular delivery hours or who live in a location with limited access for deliv
235、ery vehicles.Where dense and efficient networks exist,these solutions also have the potential to reduce the carbon footprint of the delivery process by reducing the number of delivery vehicles on the road.Something the city of Mechelen has shown by setting up an Ecozone in which both a dense network
236、 of out of home solutions is combined with emission free delivery vehicles and cargo bikes.ConclusionE-commerce has brought many benefits to our lives,but the last mile delivery has created challenges for local communities.By considering the impact of their delivery practices and working with cities
237、,e-commerce companies can ensure that the benefits of online retail are shared by all,reducing the burden on local taxpayers and contributing to a more sustainable future.Logistics plays a crucial role in building a sustainable and healthy society,and by investing in sustainable delivery solutions,e
238、-commerce companies can make a positive impact on our environment and our communities.IMPACT OF E-COMMERCE ON THE LAST MILEWHY THE GREEN LAST MILE IS RELEVANT TODAY?52IMPACT OF E-COMMERCE ON THE LAST MILEThe Benefits of Sustainability:Helping consumers do the right thingBy Graham Staplehurst,Jonatha
239、n Hall&Will SimpsonAt Kantar,we say we are now living in an era of disruption.This is set against the preceding period,known to economists as the Great Moderation,where a stable world nursed the development of certain types of businesses generally those suited to stability and certainty.Nowadays,mod
240、eration is in the rear-view mirror and disruptions come thick-and-fast,forcing companies to embrace agility and change,or else disappear.And of course,the biggest disruption of them all climate change looms now larger than any.It gives a vital imperative for action.The carbon footprint of the logist
241、ics and postal industry is large and well documented.It is an energy intensive industry closely linked to economic activity,moving goods and communication around to facilitate trade.And the last mile in particular offers sustainability challenges in the sudden dispersal of routes and potentially bes
242、poke nature of each delivery event.It is said to account for 53%of shipping costs and it makes a significant contribution to the industrys carbon footprint.1 Innovation in this area is essential,and soon.Looking across the industry,many companies are recognising the importance of climate change.Our
243、proprietary BrandZ dataset suggests sustainability is more important to logistics brand equity in the minds of consumers than it is in other sectors.However,beyond a few companies,we also have evidence that,while actions are being taken,few single companies are owning this space in a way that could
244、drive sustainable growth for them and their brands.Sustainability business models offer significant benefits.For businesses that get it right that understand their responsibilities,act and are seen to act there are huge financial benefits.1 Accenture,The Sustainable Last Mile:Faster,Greener,Cheaper(
245、2021)WHY THE GREEN LAST MILE IS RELEVANT TODAY?53KANTARS ESG IN LOGISTICS INSIGHTFigure 1:BrandZ Sustainability Index change 2021/2022Source:KantarFor 25 years,Kantars BrandZ database has tracked 20,000 brands across 522 categories and in 51 markets world-wide.Its brand valuations have been verified
246、 time and again against the financial outcomes of brands and the companies that own them.As a resource,it gives unrivalled insight into how brands build,maintain and lose value.And what we see is that a companys reputation around sustainability,driven by genuine action and investment(rather than gre
247、enwashing!)is becoming an increasingly important indicator of brand equity.As a rule of thumb,Corporate Reputation explains about 10%of a brands value,with sustainability being now the most important aspect of this.In short,our data proves that businesses which build the ideas of the relevant sustai
248、nable development goals(SDG)created by the EU into their business model perform better financially and,crucially,are more resilient in times of crisis,recovering quicker once the dust settles.To put this into hard numbers,our latest analysis shows that those brands which ranked highly across measure
249、s pertaining to sustainability in the eyes of consumers and business buyers grew substantially,even outstripping the average of the worlds top 100 brands in 2022 vs.2021(See chart).WHY THE GREEN LAST MILE IS RELEVANT TODAY?54KANTARS ESG IN LOGISTICS INSIGHTFigure 2:Consumer expectations towards Busi
250、nesses responsibilities Source:Kantar2 Kantars Global Issues Barometer Wave 2,April 2022,Q5a.Whose responsibility is to help solve/tackle this issue?Base:Total(19 countries)In a sense,being clear on sustainability is becoming the table stakes for business especially as regulation in this area is imp
251、lemented around the world.But more than that,there is a huge opportunity here that should be grasped.Nowhere is this truer than in the logistics industry.The value-action gap.As always,the basis of that value growth comes from consumers the key question:where are they choosing to spend their dollars
252、?Kantars Sustainability Sector Index 2022 found that 97%of consumers are prepared to make changes to their lifestyle to live more sustainably.Some do,but many others struggle to put these wishes into action.For instance,68%believe sustainable products come at a premium and 65%say that the increased
253、costs of living prevent them making the choices they would like to.Cutting these numbers by social grade and income type shows clearly,those with financial flexibility are more likely to choose premium sustainable options;those with less,find it harder.The point here is not that consumers are not te
254、lling the truth,it is that both perception and action are part of the equation.At Kantar,we call this the value-action gap.This tension between how consumers would ideally act and how they actually do helps identify barriers,either mental or physical,that stop them.In this gap,there are significant
255、benefits to be reaped for those brands that remove frictions and help consumers act in the way they would like to.For the logistics industry,that would be offering sustainable delivery options at a competitive price.And indeed,climate issues are seen as an area that consumers the world over identify
256、 as businesses responsibility.And by a large margin!Over two-thirds(67%)believe businesses should take action on the climate,while the next issue pay and working conditions are claimed as part of businesses purview by less than half consumers(47%).2WHY THE GREEN LAST MILE IS RELEVANT TODAY?55KANTARS
257、 ESG IN LOGISTICS INSIGHT3,4,5 https:/www.ipc.be/news-portal/general-news/2022/09/16/07/37/green-postal-day-20226 https:/business.inpost.co.uk/press/inpost-partner-with-transport-for-london-to-deliver-dozens-of-new-parcel-collection-lockers-across-capital/So,what does our BrandZ data tell us about t
258、he logistics industry?For our BrandZ data,our modelling approach relates the perceptions of brands in the minds of customers to the choices they make in buying decisions which brands are they preferring and how much they are willing to pay for them.Looking across our recent Logistics studies,we can
259、compare delivery companies with other categories,among both B2B and B2C brands,in terms of the influence that sustainability has on brand equity.On average,the importance of sustainability is higher for Logistics brands than for other categories.Its still not the most critical factor but its influen
260、ce has been growing over time.Sustainability helps brands as both a hygiene factor-for many customers its something to check off and be satisfied with-and also as a differentiator for a few specific brands.BrandZ data reveals that just 13%of Logistics brands have a strong consumer profile in the are
261、a of sustainability.The brands that have successfully promoted their sustainability credentials tend to be smaller businesses,but not all of them.One of the biggest with a positive profile is Lotte Logistics,the leader in South Korea.The company has a full scale ESG program and has a great reputatio
262、n for treating employees and their partners well.DHL in Europe is also well regarded and has a particular focus on its environmental responsibility aiming to reduce its carbon footprint and“striving for clean operations and climate protection”.From within the industry,one would be forgiven for being
263、 amazed at this 13%!Surely it must be higher!In recent years,some of the largest delivery companies have developed well-integrated and impactful ESG programmes and industry bodies such as UPU and IPC have been active in promoting the ambitions and achievements of the industry:For national posts,coll
264、ective yearly CO2 emissions were reduced by 34%in 2021 compared to 20083 Between 2012 and 2021,posts have doubled the share of alternative fuel vehicles(from 12%to 24%of the postal fleet).Electric vehicles account for 17%of the postal fleet.4 By 2021,34%of the energy used in postal buildings comes f
265、rom renewable sources.By 2030,posts aim to reach 75%.5 The carbon savings offered by a well-functioning PUDO/Open-locker network6 Replacing old sorting infrastructure with newer,more efficient models The generation by many companies of clean energy on site to run their operationsThe list goes on as
266、the industry has already made huge investments in this space.So,what explains the low penetration with the public?WHY THE GREEN LAST MILE IS RELEVANT TODAY?56KANTARS ESG IN LOGISTICS INSIGHTFigure 3:UK Sustainability Index:UK Carrier market Source:KantarSustainability:Swords and ShieldsAt Kantar,we
267、use a“swords and shields”framework to classify sustainability business investments.At a category level,this framework helps our clients understand what plays are necessary-a hygiene factor,or a shield and which are genuine“big bets”around sustainability that can be used to differentiate their brand
268、in their category and drive a competitive advantage.Although more research is needed,one trend that may be classed as a shield is becoming clearer the electrification of delivery fleets.It remains an incredibly important step,indeed,without it brands will not be seen to meet fundamental consumer req
269、uirements.Strides must continue to be made in this area,not least as regulation on combustion engines across Europe will come into force over the next decade or so,but also as it is predicted to offer operational savings over the long-term.However,as every major brand(at least in the UK)is purchasin
270、g alternative fuel and electric vehicles,this action alone will not necessarily give them the winning edge over their competitors in consumers minds.That said,it is also true that sustainable investments made by carriers in the UK(as one national example among the countries we monitor)are being seen
271、 by consumers to some extent.The majority of brands that we track have seen their sustainability index increase since we started measurement in 2017 but none are running away from the pack.The biggest winner here is DHL with an increase of 36.Closely following are DPD,FedEx and UPS who all saw 30 po
272、ints of improvement.Royal Mail,with its superior brand salience and“feet-on-the-street”delivery model has the highest sustainability index,although it dropped slightly between 2020 and 2023.WHY THE GREEN LAST MILE IS RELEVANT TODAY?57KANTARS ESG IN LOGISTICS INSIGHTIn summary,Kantars BrandZ data con
273、firms the growing relevance of sustainability to the Logistics industry.This trend should not be ignored,and brands should continue to look to leaders and innovators in this area to see what can be achieved.Regulation is coming to force sustainable initiatives,but more than this,consumers expect you
274、 to take action and will reward those businesses that make their own sustainable aspirations a genuine possibility for them.Further,the data underlines that the actions of players across the logistics industry are being noticed,but that no major players are currently owning this space in a way that
275、could drive brand differentiation for them.Each company should be asking themselves:“can we go faster with our sustainable strategy and implementation?”If so,they may be able to cement their sustainability credentials with consumers and reap the benefits this will bring.Kantar,the worlds leading dat
276、a,insights and consulting company has a number of products and services to help operators and marketers in the logistics industry drive sustainability and value for their brands.In writing this article,we have drawn on three specific offers:Kantars Sustainable Transformation Practice brings together
277、 expertise and assets from across Kantar to support organisations,both commercial and public,in the definition activation and measurement of sustainability strategie We are dedicated to leveraging our human understanding expertise to identify how to move citizens and consumers on the journey from Va
278、lue to Action.Kantar BrandZ ranks the most valuable brands in the world and shows you how to become one of them.It is the worlds largest,consumer focused source of brand equity insight,which also powers our proprietary brand valuation methodology.Kantar BrandZ brings you industry leading brand valua
279、tions,along with research from the worlds most extensive brand equity study:Over 4 million consumer interviews covering 19,250 brands across 522 categories in 51 markets.Our Specialist Logistics and Postal unit:In the challenging world of post and logistics,tap into Kantars expertise to help grow yo
280、ur business,improve your network,and gain visibility of your entire journey.Our suite of innovative insight tools combines operational and consumer data to give our clients the insight they need to make key business decisions.If you would like to discuss any of the ideas in this report,please contac
281、t: WHY THE GREEN LAST MILE IS RELEVANT TODAY?58MUNICIPAL GREEN LAST MILE INITIATIVESDesigning a greener roadmap for last-mile deliveries in London and other large urban centres in EuropeBy Muhammad Fiaz Gul and Jos AnsonI.Greening the last mile in London:introduction and current situationGreen last-
282、mile strategy is a priority not only for many Courier Express and Parcel(CEP)companies but also for governments worldwide.In this regard,the Greater London Authority(GLA)has implemented various policy interventions to reduce emissions by public and freight transport.GLA has taken both evolutionary a
283、nd revolutionary measures in its three-tier emission reduction strategy.Before diving into these measures,let us look at some demographics of London.Greater London is made up of 32 boroughs and the City of London,with a total population of around 9 million people.Each borough has roughly 270,000 inh
284、abitants,and London is divided equally between houses and apartments.To provide a clean and eco-friendly environment to Londoners,GLA has introduced economic and environmental tools like the congestion charge in Feb 2003(Centre for Public Impact,2016),Low Emission Zone(LEZ)in 2008,and the worlds fir
285、st 24-hour Ultra Low Emission Zone(ULEZ)in 2019(TFL,2022).These eco-friendly measures have been extended across London since their introduction,with the ULEZ expanding to cover all London boroughs from 29 August 2023.Therefore,GLA is extensively promoting low-emission transport.Figure 1:Map of Great
286、er LondonSource:WHY THE GREEN LAST MILE IS RELEVANT TODAY?59MUNICIPAL GREEN LAST MILE INITIATIVESThis has had a significant impact not only on existing parcel delivery companies in London but also on new entrants in the last-mile market.Presently,large last-mile operators like Royal Mail,DPD,Evri,Am
287、azon,DHL,FedEx,Yodel,UPS,and Whistl all have a presence in London.Royal Mail still has the largest 40%share of last-mile deliveries.According to industry expert Alan Barrie,out of more than 27,000 delivery vehicles that enter London daily to deliver parcels,9,000 are from Royal Mail alone.Despite cu
288、rrent strikes posing a threat to Royal Mails position,it continues to dominate the last-mile delivery market,not only in London but also in the United Kingdom.Hence,in green last-mile delivery,Royal Mail leads the way in London.The combined fleet of 27,000 vans serves around 3.5 million addresses in
289、 Greater London,where,prior to the pandemic,500 million parcels were delivered.Since then,around 700 million parcels have been delivered by this fleet,and it is expected to reach 1 billion parcels by 2030.Royal Mail has a massive strategic advantage over its competitors in terms of green last-mile d
290、elivery.With a fully developed network of distribution centres(DC)supported by delivery offices in London and a postie-network of 90,000(ESG Report,2022),it retains 30%of the parcel market share by volume,followed by Amazon with 17%,Evri 13%,DHL 8%,DPD,UPS,and Yodel with 6%each(Pitney Bowes Parcel S
291、hipping Index,2022).Most of these posties are deployed in London and are the main source of lowering emissions for Royal Mail.Currently,with an electric fleet of 1,588(although DPD is ahead of Royal Mail in terms of fleet transition),Royal Mail is the most eco-friendly last-mile operator in London,w
292、ith an average of 205gCO2e per parcel compared to the industry average of 300-500gCO2e per parcel(ESG Report,2022).Other industry players,such as DPD and Evri,are actively searching for micro hubs,but it will take time for them to catch up with Royal Mail.DPD has established its first all-electric m
293、icro hub on Vandon Street in Central London,with a second hub in Shoreditch and plans to build six more in London.Micro hubs are important because they reduce stem time,saving time and fuel and increasing efficiency in last-mile delivery.DPDs 5,000 square foot all-electric depot on Vandon Street in
294、Central London is powered by two 7.5-ton all-electric vehicles,with final mile deliveries made by seven electric vans capable of making 120 stops a day.These vehicles are further supported by eight micro electric vehicles for delivering parcels in areas close to the depot.These micro vehicles can ma
295、ke 60 stops per charge per day.DPDs facility,with the help of around 18 vehicles,delivers.Figure 2:All Electric 5,000 sq ft Depot DPD on Vandon Street,Central LondonSource:Authors:WHY THE GREEN LAST MILE IS RELEVANT TODAY?60MUNICIPAL GREEN LAST MILE INITIATIVES2,000 parcels a day in Central London,s
296、erving an area of two square miles in Westminster.London has a network of colourful street furniture”parcel lockers,with Amazon leading the way with a network of around 6,500 lockers and InPost with around 4,500-5,000 lockers.Presently,this locker network is not carriers-agnostic,and each company is
297、 using it for its own parcels.UPS is apparently trying to catch up with Amazon and InPost,but at a slow pace but the entrance of Parcel Pending(Quadient)with its agnostic lockers will be a potential positive disruptor.If Royal Mail is able to deal with its internal issues and enters the race for par
298、cel lockers,it will be challenging for its competitors to beat Royal Mail in terms of green deliveries.The different colours of parcel lockers reflect how different carriers use them as a physical differentiator from other industry players.Figure 3:Lockars locker LondonSource:Authors:Figure 5:InPost
299、 locker LondonSource:Authors:Figure 4:Amazon locker LondonSource:Authors:Figure 6:Amazon locker LondonSource:Authors:WHY THE GREEN LAST MILE IS RELEVANT TODAY?61MUNICIPAL GREEN LAST MILE INITIATIVESDespite concerns over the environmental impact of last-mile deliveries,Londoners still overwhelmingly
300、prefer the convenience of receiving parcels at home.One key issue is a lack of awareness among consumers about the negative externalities associated with home deliveries,such as increased CO2 emissions and congestion.In fact,a recent survey found that the vast majority of online shoppers were unable
301、 to find information about the carbon footprint of their deliveries.This lack of transparency limits consumer choice,as many carriers do not offer out of home(OOH)delivery options,which could help reduce emissions and alleviate congestion.Instead,consumers are often forced to choose the cheapest and
302、 most convenient delivery option available to them,without considering the broader social and environmental costs.To encourage more sustainable choices,greater transparency and education around delivery emissions and alternative delivery options are needed.Many eco-carriers are operating in London,s
303、uch as Zedify,Hived,Stuart(part of GeoPost/DPDgroup),Urb-it,and Ryde.These smaller industry players use a mix of zero-emission last-mile transport,such as e-bicycles,tricycles,and electric vehicles,for delivering parcels in deep urban areas like London.They are scaling up their zero-emission parcel
304、delivery network,not only in London but also in other UK cities.Figure 7:Zedify e-cargo bikeSource:Authors:Figure 9:urb=it e-cargo bikeSource:Authors:Figure 10:Hived e-cargo bikeSource:Authors:Figure 8:Ryde e-cargo bikeSource:Authors:WHY THE GREEN LAST MILE IS RELEVANT TODAY?62LONDON GREEN LAST MILE
305、 INITIATIVESII.Survey on greening the last mile in LondonOur survey has revealed that the majority of customers still prefer home delivery as their last-mile option,as opposed to greener alternatives such as parcel lockers or parcel shops.Of the customers surveyed who regularly shop online,53%prefer
306、red home delivery,while 47%preferred green options for receiving their parcels.Interestingly,of the 47%who preferred green options,23%chose parcel lockers as their preferred method of delivery.Despite home delivery continuing to dominate as the preferred last-mile option in London,the fact that diff
307、erent green options together make up around 50%of the last-mile options is a positive development.It suggests that customers are becoming increasingly aware of greener alternatives,and are willing to adopt them as part of their shopping habits.The results of our survey asking customers about their p
308、reference for home delivery versus greener last-mile options were surprising.The overwhelming reason for choosing home delivery was convenience.47%of respondents cited the presence of a family member at home as the main reason for choosing this option,while 20%preferred not to travel to collect thei
309、r parcel.The distance to parcel lockers or shops was another significant factor influencing customers choices.Therefore,it is essential to consider the location and density of parcel lockers to promote eco-friendly last-mile options in London.Figure 11:Customers delivery prefrencesSource:Authors:WHY
310、 THE GREEN LAST MILE IS RELEVANT TODAY?63MUNICIPAL GREEN LAST MILE INITIATIVESInterestingly,the survey also revealed that parking was becoming a real problem,particularly in central London,and was increasingly becoming a hurdle to using parcel shops or lockers for parcel collection.Additionally,3%of
311、 respondents noted that even if the parcel shop or locker was within walking distance,it was difficult to collect bulky parcels and recommended using these options for smaller e-commerce deliveries.Overall,convenience is the primary factor that attracts customers to choose home delivery over greener
312、 options.However,a significant reason for the preference for less green options is the lack of awareness about CO2 emissions per home delivery.All respondents agreed that retailers or small stores should provide information about emissions per packet to customers at the online checkout.Interestingly
313、,almost all respondents also indicated that they would choose greener last-mile delivery options if given the choice.Figure 12:Home delivery preference reasonsSource:Authors:WHY THE GREEN LAST MILE IS RELEVANT TODAY?64MUNICIPAL GREEN LAST MILE INITIATIVESIII.Current delivery sustainability policy an
314、d business model failures in LondonThe policy of reducing last mile delivery carbon emissions through micro-hubs systems is still failing in London for several reasons.Firstly,the implementation of micro-hubs requires significant investment in infrastructure and technology,which can be a barrier for
315、 smaller carriers and may slow down the pace of adoption by larger companies.Secondly,the lack of carrier-agnostic parcel lockers means that customers have limited options for collecting their parcels from a convenient location.This pushes customers towards home deliveries,which increases the number
316、 of delivery vehicles on the road and thus increases carbon emissions.Thirdly,customers are still not well informed about the environmental impact of home deliveries,and many are not yet willing to change their behaviour to adopt more environmentally-friendly options such as out of home(OOH)delivery
317、 or using smaller eco-carriers.Finally,the lack of convenient and easily accessible OOH delivery points,such as lockers or shops,makes it difficult for customers to choose this option.This requires a significant effort from industry players,as well as from Transport for London(TFL),to build the nece
318、ssary infrastructure and educate customers about the benefits of OOH delivery.WHY THE GREEN LAST MILE IS RELEVANT TODAY?65MUNICIPAL GREEN LAST MILE INITIATIVESIV.Encouraging stronger collaboration in the last mile in LondonTo foster collaboration between all last-mile delivery stakeholders and reduc
319、e delivery emissions in London,the following steps could be taken:1.Encouraging transparency:Providing clear information on carbon emissions for all delivery options to online buyers would allow them to make informed decisions and choose the greener options,which would create market pressure for car
320、riers to reduce their carbon footprint.2.Coordinated planning:Collaboration between local authorities,carriers,and retailers could lead to coordinated planning of delivery routes and times,reducing unnecessary travel and making deliveries more efficient.3.Promoting public transport:Encouraging the u
321、se of public transport and active travel modes,such as cycling and walking,for deliveries in the city centre could reduce congestion and emissions from vehicles.4.Developing infrastructure:Developing infrastructure such as micro-hubs,cycle lanes,and secure parcel lockers could support the transition
322、 to greener delivery options and make them more feasible for carriers,or offering free or subsidised locations for green last mile infrastructure.5.Incentivising green delivery:Offering financial incentives for carriers to adopt low-emission vehicles or use micro-hubs could encourage the adoption of
323、 greener delivery options.6.Collaboration among industry players:Collaboration between industry players,such as sharing delivery routes and infrastructure,could reduce competition and improve efficiency,reducing emissions from the sector as a whole.These measures,if implemented effectively,could fos
324、ter collaboration among all last-mile delivery stakeholders,reduce delivery emissions in London,and create a greener,more sustainable city.WHY THE GREEN LAST MILE IS RELEVANT TODAY?66MUNICIPAL GREEN LAST MILE INITIATIVESV.Limiting factors hindering a stronger collaboration in the last mile in London
325、There are several factors that may be limiting collaboration for greener last mile delivery in London.One possible factor is the competitive nature of the industry,as each carrier may be more focused on gaining market share and increasing profits rather than collaborating with other players to reduc
326、e emissions.Additionally,there may be a lack of incentives or regulations that encourage collaboration and emissions reduction.Another factor may be the high costs and challenges associated with implementing sustainable last mile delivery solutions.For example,building micro-hubs and developing alte
327、rnative delivery networks can require significant investments in infrastructure,technology,and human resources.These costs may be prohibitive for smaller carriers or new entrants to the market.Furthermore,the fragmented nature of the industry and the diversity of delivery models used by different ca
328、rriers can make it difficult to standardise and implement sustainability measures across the entire sector.Additionally,the complex logistics and geographic challenges of delivering parcels in a densely populated city like London can make it difficult to implement more sustainable delivery models,pa
329、rticularly in areas with narrow streets and limited parking options.VI.Possible solution to foster stronger collaboration in the last mile in LondonOne solution to foster collaboration for greener last-mile delivery in London could be to establish a public-private partnership(PPP)between the governm
330、ent,industry players,and other stakeholders.The PPP could work towards a common goal of reducing carbon emissions in last-mile delivery by implementing sustainable practices and technologies,such as micro-hubs,electric vehicles,and alternative delivery methods.The government could provide incentives
331、,subsidies,and regulatory frameworks to encourage industry players to adopt sustainable practices and technologies.Industry players,on the other hand,could share their expertise,data,and resources to achieve the common goal.Other stakeholders such as customers,community groups,and environmental orga
332、nisations could provide feedback and support to ensure that the PPP is transparent and accountable.WHY THE GREEN LAST MILE IS RELEVANT TODAY?67MUNICIPAL GREEN LAST MILE INITIATIVESBy working together,the PPP could overcome the barriers that currently limit collaboration for greener last-mile deliver
333、y in London,such as the lack of trust,conflicting interests,and financial constraints.The PPP could also leverage the strengths and opportunities of each stakeholder to achieve a more sustainable and efficient last-mile delivery system.Ultimately,the success of the PPP would depend on the commitment,cooperation,and leadership of all stakeholders involved.VII.The role of tech in supporting the gove