Analysis of Logistics’ Measures of CEP Service Providers for the Last-mile Delivery in Small- and Medium-sized Cities A Case Study of the Aachen City Region

Abstract

The e-commerce sector's rapid expansion has led to an increase in last-mile delivery activities both within and across cities, fuelling the growth of the courier, express, and parcel (CEP) services industry. Even though last-mile delivery is the costliest and least efficient segment of the entire logistics system, CEP service providers are faced with the challenge of offering fast and flexible delivery at competitive pricing. For last-mile delivery in small- and medium-sized cities, CEP service providers tend to be less innovative and consider diesel trucks the most viable logistics measure. This study analyses the alternative logistics measures of CEP service providers for last-mile delivery in small- and medium-sized cities, as well as their impacts on the delivery services, especially the resulting transport costs and environmental impacts. An empirical analysis was conducted using the agent-based transport simulation MATSim and the integrated logistics behavioural model jsprit to analyse the feasibility of selected logistics measures of CEP service providers. The results revealed that electric trucks are not cost-effective as a stand-alone logistics measure for last-mile delivery in small- and medium-sized cities. However, electric trucks can still be a viable logistics measure for last-mile delivery when combined with other sustainable logistics measures, such as e-cargo bikes with micro-depots or parcel shops and parcel lockers. In comparison to using diesel trucks for last-mile delivery in small- and medium-sized cities, using electric trucks and e-cargo bikes in combination with micro depots showed a reduction of 14.2% in total transport costs, 37.6% in total freight mileage, 84.1% in CO2 emissions, and 100% in CO, HC and NOX emissions. Using parcel shops and parcel lockers combined with electric trucks showed a significant reduction of 31.2% in total transport costs, 60.4% in total freight mileage, 80.6% in CO2 emissions, and 100% in CO, HC and NOX emissions. For last-mile delivery in small- and medium-sized cities, CEP service providers should switch to mixed sustainable logistics measures that are more effective than diesel trucks in reducing operating transport costs and negative environmental impacts.