Analysis of logistics measures of CEP service providers for the last-mile delivery in small- and medium-sized cities: A case study for the Aachen city region

Abstract

The e-commerce sector’s rapid expansion has led to an increase in delivery activities both within and across cities, fuelling the growth of the courier, express, and parcel (CEP) services. CEP service providers are crucial for the distribution of goods across all types of cities, especially for last-mile delivery. However, CEP service providers need innovative approaches for their last-mile distribution in small- and medium-sized cities to reduce transport costs and negative environmental impacts. For this reason, this paper analyses the quantitative impacts of logistics measures of CEP service providers for last-mile delivery in small- and medium-sized cities, especially the resulting transport costs and environmental impacts, in the framework of a case study for the investigation area of the Aachen city region. A simulation-based analysis was conducted using the agent-based transport simulation MATSim and the linked route optimisation Jsprit. 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, combining electric trucks with other sustainable logistics measures, such as parcel shops and parcel lockers, results in a viable logistics measure for last-mile delivery. It is possible to reduce total transport costs by at least 5.4% and CO2 emissions by at least 61.1%. Hence, CEP service providers should replace diesel trucks with a mix of sustainable logistics measures for last-mile delivery in small- and medium-sized cities to achieve better operational efficiency and lesser environmental impacts.