City logistics 3 towards sustainable and liveable cities

Integrating Direct and Reverse Logistics in a “Living Lab” Context: Evaluating Stakeholder Acceptability and the Potential of Gamification to Foster Sustainable Urban Freight Transport..

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Series Editor Jean-Paul Bourrières

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First published 2018 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers,

or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address:

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Library of Congress Control Number: 2018937245

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library

ISBN 978-1-78630-207-6

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Contents

Preface xv

Chapter 1 Integrating Direct and Reverse Logistics in a “Living Lab” Context: Evaluating Stakeholder Acceptability and the Potential of Gamification to Foster Sustainable Urban Freight Transport 1

Valerio G ATTA , Edoardo M ARCUCCI , Michela L E P IRA and Andrea C ICCORELLI 1.1 Introduction 1

1.2 CITYLAB: city logistics in living laboratories 4

1.2.1 Integrating direct and reverse logistics in a living lab context: the case of Rome 5

1.2.2 The role of gamification to foster sustainable urban freight transport 7

1.3 Data/methodology 8

1.3.1 Plastic cap collection at the University of Roma Tre 8

1.3.2 Stated choice experiments 10

1.3.3 Discrete choice models 11

1.4 Results 11

1.4.1 Policy implications 16

1.5 Conclusion 17

1.6 Acknowledgements 17

1.7 Bibliography 18

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Chapter 2 Optimizing the Establishment of a Central

City Transshipment Facility to Ameliorate Last-Mile

Delivery: a Case Study in Melbourne CBD 23

Khalid A LJOHANI and Russell G T HOMPSON 2.1 Introduction 23

2.2 Literature review 25

2.2.1 Recent trends and challenges affecting last-mile delivery 25

2.2.2 Operational challenges in last-mile freight in the central city area 26

2.2.3 Establish small-scale logistics facilities in the central city area 26

2.3 Overview of methodology 28

2.4 Results and analysis of the observational study of loading activities in Melbourne CBD 28

2.5 Framework to establish Central City Transshipment Facility in the central city area 35

2.5.1 Description of framework 35

2.5.2 Stages of integrated framework 36

2.6 Conclusion 43

2.7 Bibliography 43

Chapter 3 Simulation of a City Logistics Solution for Montreal 47

Marguerite S IMO , Teodor Gabriel C RAINIC and Yvon B IGRAS 3.1 Introduction 47

3.2.1 Different types of model classification 48

3.2.2 Different models for urban freight 49

3.3 Methodology 51

3.3.1 The initial national model 51

3.3.2 Modifying model 53

3.4 Results 56

3.4.1 Base case scenario 56

3.4.2 Scenario 1 57

3.4.3 Scenario 2 58

3.4.4 Scenario 3 59

3.5 Conclusion 61

3.7 Bibliography 62

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Contents vii

Chapter 4 Simulation Applied to Urban Logistics: A State of the Art 65

Sarra J LASSI , Simon T AMAYO and Arthur G AUDRON 4.1 Introduction 65

4.1.1 Modeling versus simulation 66

4.2 Research method 67

4.3 Analytical framework 72

4.3.1 Simulation techniques used in different types of problems 72

4.3.2 Software solutions 80

4.3.3 Research opportunities 80

4.4 Conclusion 81

4.6 Bibliography 83

Chapter 5 Can the Crowd Deliver? Analysis of Crowd Logistics’ Types and Stakeholder Support 89

Heleen B ULDEO R AI , Sara V ERLINDE , Jan M ERCKX and Cathy M ACHARIS 5.1 Introduction 89

5.3 Methodology 94

5.4 Results 96

5.5 Conclusion 103

5.7 Bibliography 105

Chapter 6 Preliminary Investigation of a Crowdsourced Package Delivery System: A Case Study 109

Sudheer B ALLARE and Jane L IN 6.1 Introduction 109

6.2 Overview of the case study 111

6.2.1 Types of delivery service 111

6.2.2 Pricing model 112

6.3 Research questions 113

6.3.1 Data 114

6.3.2 Analysis findings 117

6.4 Further discussion 123

6.4.1 Market opportunities 123

6.4.2 Qualitative assessment of service 124

6.5 Conclusion 125

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Chapter 7 Concepts of an Integrated Platform for Innovative

City Logistics with Urban Consolidation Centers and

Transshipment Points 129

Eiichi T ANIGUCHI , Rémy D UPAS , Jean-Christophe D ESCHAMPS and Ali Gul Q URESHI 7.1 Introduction 129

7.2 Concepts of integrated platform for city logistics 130

7.3 Surveys on opinions about UCC and transshipment 132

7.3.1 Questionnaire 132

7.3.2 Results 133

7.4 Urban consolidation centers in Tokyo and Bordeaux 137

7.4.1 UCC in Tokyo 137

7.4.2 UCC in Bordeaux 139

7.5 Implementation issues 141

7.6 Conclusion 144

Chapter 8 E-Consumers and Their Perception of Automated Parcel Stations 147

Sara V ERLINDE , César R OJAS , Heleen B ULDEO R AI , Bram K IN and Cathy M ACHARIS 8.1 Introduction 147

8.3 Methodology 151

8.4 Results 154

8.4.1 Delivery preferences of online consumers 154

8.4.2 Attitude toward automated parcel stations 155

8.4.3 Expectations and use of automated parcel stations 155

8.5 Conclusion 157

Chapter 9 Loading/Unloading Space Location and Evaluation: An Approach through Real Data 161

Simon T AMAYO , Arthur G AUDRON and Arnaud DE L A F ORTELLE 9.1 Introduction 161

9.2 Proposed approach 163

9.2.1 Data collection 164

9.2.2 Demand generation 165

9.2.3 Optimization model 168

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Contents ix

9.3 Application and findings 173

9.3.1 Data collection and demand generation 173

9.3.2 Location of 10 L/U spaces if there are no prior spaces in the area 174

9.3.3 Location of two new L/U spaces taking into account the existing spaces 175

9.3.4 Evaluation of the existing L/U spaces in the area 176

9.4 Conclusion 177

Chapter 10 Understanding Road Freight Movements in Melbourne 181

Loshaka P ERERA , Russell G T HOMPSON and Yiqun C HEN 10.1 Introduction 181

10.2 Data 183

10.2.1 Comprehensive freight data 183

10.2.2 Land-use data 184

10.2.3 Employment data 185

10.3 Analysis, results and discussion 185

10.3.1 General descriptive analysis 185

10.3.2 Test of independence 192

10.3.3 Regression analysis 194

10.3.4 Freight vehicle cost analysis 197

10.4 Conclusion 198

10.5 Future work 199

Chapter 11 High-Resolution Last-Mile Network Design 201

Daniel M ERCHÁN and Matthias W INKENBACH 11.1 Introduction 201

11.3 Network circuity in last-mile logistics 203

11.3.1 Circuity factors 203

11.3.2 Empirical analysis for São Paulo 204

11.4 Model for two-echelon network design 206

11.5 Case study 209

11.6 Conclusion 212

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Chapter 12 Cooperative Models for Addressing

Urban Freight Challenges: The NOVELOG and

U-TURN Approaches 215

Maria R ODRIGUES , Eleni Z AMPOU , Vasilis Z EIMPEKIS , Alexander S TATHACOPOULOS , Tharsis T EOH and Georgia A YFANTOPOULOU 12.1 Introduction 215

12.2 Business models in the UFT environment 217

12.3 Need for cooperative business models in the evolving UFT environment 219

12.3.1 The approach of NOVELOG 219

12.3.2 The case of Turin 221

12.3.3 The approach of U-TURN 224

12.4 Conclusions 232

Chapter 13 The Capacity of Indonesian Logistics Service Providers in Information and Communication Technology Adoption 235

Kuncoro Harto W IDODO , Joewono S OEMARDJITO and Yandra Rahardian P ERDANA 13.1 Introduction 235

13.2.1 ICT as an essential logistics performance 237

13.2.2 The role of ICT in city logistics 238

13.2.3 ICT platforms and innovation in logistics 240

13.2.4 Impact of ICT adoption 241

13.3 Method 242

13.4 Results 243

13.5 Conclusion 246

Chapter 14 An Explorative Approach to Freight Trip Attraction in an Industrial Urban Area 249

Elise C ASPERSEN 14.1 Introduction 249

14.2 Background 251

14.3 Data from establishments in Groruddalen 252

14.3.1 Industry classification 254

14.4 Estimating freight trip generation models 256

14.4.1 FTA model functional form 257

14.4.2 Model extension with establishment and shipment characteristics 261

14.5 Conclusion 264

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Contents xi

Chapter 15 Choice of Using Distribution Centers in the Container Import Chain: a Hybrid Model Correcting for Missing Information 269

Elnaz I RANNEZHAD , Carlo G P RATO and Mark H ICKMAN 15.1 Introduction 270

15.2 Methods 271

15.2.1 Data 271

15.2.2 Model formulation 274

15.2.3 Model specification 276

15.3 Results 277

Chapter 16 Applying Gamification to Freight Surveys: Understanding Singapore Truck Drivers’ Preferences 281

Fangping L U and Lynette C HEAH 16.1 Introduction 281

16.2 Gamification process 283

16.2.1 What is gamification? 283

16.2.2 Gamification design methods 284

16.3 Protoypes and testing 287

16.4 Conclusion 293

Chapter 17 Urban Distribution of Craft-Brewed Beer in the Belo Horizonte Metropolitan Area 299

Renata Lúcia Magalhães DE O LIVEIRA , Patrick Mendes dos S ANTOS , Jonathan R EITH , Julia Almeida C OSTA and Leise Kelli DE O LIVEIRA 17.1 Introduction 299

17.2 The urban distribution of beer 301

17.3 Study area: Belo Horizonte Metropolitan Area 303

17.4 Methodological approach 304

17.4.1 Data collection and spatialization 305

17.4.2 Descriptive analysis of the consumer profile 307

17.4.3 Logistics network design 307

17.5 Results and discussions 309

17.5.1 Descriptive analysis of the consumer profile 310

17.5.2 Logistics network design 311

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17.6 Conclusion 313

Chapter 18 Issues and Challenges in Urban Logistics Planning in Indonesia 317

Kuncoro Harto W IDODO , Danang P ARIKESIT , Hengki P URWOTO , Joewono S OEMARDJITO and E RIADI 18.1 Introduction 317

18.2 Identifying urban logistics challenges 318

18.2.1 Urban growth and urbanization 318

18.2.2 E-commerce growth 319

18.2.3 Space conflict 320

18.2.4 Traffic density congestion 321

18.2.5 Readiness for agents/operators 322

18.2.6 Readiness for logistics regulation 323

18.2.7 Environmental, geographical and disasters issues 323

18.3 Implementation of city logistics in Indonesia 325

Chapter 19 From City Logistics Theories to City Logistics Planning 329

Francesco R USSO and Antonio C OMI 19.1 Introduction 329

19.2 The state of the art 331

19.2.1 Methods and models 331

19.2.2 City logistics plans 333

19.2.3 Goals 334

19.3 The interconnected processes to study and to implement city logistics 335

19.4 The city logistics plan definition 336

19.4.1 Empirical data driving city logistics theories and the plan design 337

19.4.2 City logistics measures 337

19.4.3 Grant for start-up 341

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Contents xiii

Chapter 20 Strategies to Improve Urban Freight Logistics in Historical Centers: the Cases of Lisbon and Mexico City 349

Juan Pablo A NTÚN , Vasco R EIS and Rosário M ACÁRIO 20.1 Introduction 349

20.2 Objectives 351

20.3 Methodology 352

20.4 Trends in corporate logistics for urban goods distribution 352

20.5 Urban logistics in historical centers 353

20.5.1 Complexity of the physical distribution of goods in Historical Centers and Central Districts of cities 353

20.5.2 Priority areas of intervention for public policies to improve Urban Logistics in Historical Centers and Central Districts of cities 354

20.6 Parallelisms and contrasts in logistic practices in the Historical Centers of the city of Mexico and Lisbon 356

20.6.1 Trends in logistics practices 356

20.6.2 Logistics impact of pre-selling 357

20.6.3 Size and technology of urban freight vehicles 358

20.6.4 Logistics Platforms: DLP and OC 359

20.7 Experimental proposals for the Historical Center of Lisbon 360

20.7.1 Characteristics of the Historic Center of Lisbon 360

20.7.2 Period of operation of deliveries to the HORECA sector 361

20.7.3 Experimental proposals to improve the logistics of distribution of goods, with particular reference to the HORECA sector, at the Historic Districts of Lisbon 361

List of Authors 367

Index 371

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on the environment and safety However, new modeling, evaluation and planning techniques are required to conduct in-depth investigations before city logistics schemes can be effectively deployed

This book includes recent developments in the modeling, evaluation and planning of city logistics schemes Since city logistics schemes have already been implemented in several cities, a review of the performance of these schemes is presented and discussed The book also presents a description of emerging techniques for increasing practical applications of city logistics models and reducing social and environmental impacts of urban freight transport Several chapters describe the application of ICT (Information and Communication Technology) and ITS (Intelligent Transport Systems) which play a vital role in collecting data and providing a platform for managing urban freight transport New dimensions of freight transport platforms using the IoT (Internet of Things) or Physical Internet are also discussed A number of chapters in this book focus on public–private

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partnerships among stakeholders, which are important for promoting city logistics Economic analyses using cost–benefit analyses relating to urban distribution in an e-commerce environment are discussed Case studies that address frameworks for managing urban freight transport including legal, organizational and financial aspects are presented Decision support systems are also important tools for making appropriate decisions based on correct data and scientific analyses Chapters covering new areas of city logistics such as crowd logistics, zero emission urban delivery, co-modality and the use of electric vehicles and bicycles are included New algorithms and applications of models to practical problems using vehicle routing and scheduling, location routing and multi-agent models are highlighted

We believe that this book covers a wide range of important developments in city logistics throughout the world It will help researchers, students and administrators

to understand the current status of urban freight transport issues, models, evaluation methods and planning approaches We hope that the ideas and perspectives contained in this book will encourage researchers and practitioners to create more efficient and environmentally friendly logistics systems for sustainable cities

We would like to express our heartiest appreciation to all of the authors of the papers submitted to the conference for their contributions and to the members of organizing committee for their help in organizing the conference Special thanks go

to all of the reviewers of the papers submitted to the conference A total of 61 papers were accepted for publication after peer review to make up the chapters in the three volumes of this book

Professor Eiichi TANIGUCHIAssociate Professor Russell G THOMPSON

March 2018

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1

Integrating Direct and Reverse Logistics in

a “Living Lab” Context: Evaluating Stakeholder Acceptability and the Potential of Gamification to Foster Sustainable Urban Freight Transport

This chapter tests stakeholder acceptability and their likely behavior change with respect to innovative solutions for improving urban freight transport efficiency and fostering city sustainability The proposed solution concerns a new system for integrating direct and reverse logistics in the urban area of Rome with the aim of improving clean waste collection, while also minimizing transport-related CO 2 emissions An ex ante behavioral analysis based on a stated

preference survey has been conducted to investigate stakeholder preferences for different scenario configurations associated with recycling, so as to boost the success of the initiative and promote sustainable behavior Results show that an environmentally friendly transport system and a gamification process associated with recycling are the most important attributes for stakeholders Scenarios including these two elements are the most effective in terms of the amount of recycled materials and potentially saved CO 2 Results of the behavioral analysis are useful to plan the functioning of the proposed solution according to stakeholders’ preferences and pave the way for its upscaling and transferability

1.1 Introduction

The EU’s efforts to develop a sustainable, low carbon, resource efficient and competitive economy rely on a transition to circular economy paradigm, where the

Chapter written by Valerio G ATTA , Edoardo M ARCUCCI , Michela L E P IRA and Andrea C ICCORELLI

City Logistics 3: Towards Sustainable and Liveable Cities, First Edition.

Edited by Eiichi Taniguchi and Russell G Thompson.

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value of products, materials and resources is maintained for as long as possible and the generation of waste minimized [EUR 15a] Waste recycling is considered fundamental so that the EU action plan for the circular economy includes long-term targets to reduce landfilling and increase the preparation for reuse and the recycling

of key waste streams such as municipal waste and packaging waste [EUR 15a] In fact, waste management is a major issue for the sustainability of urban areas Many countries are facing problems related to landfill capacity and emissions from combustion, leading to an increased attention paid and effort made to reduce, reuse and recycle waste

The need to recycle has implications on logistics which negatively affect the environment In fact, door-to-door systems applied to several types of recycling materials would require a large number of trucks and fragmented collection taking

place that negatively impacts service efficiency, while using ad hoc collection points

would require costly infrastructure interventions, greater effort and involvement of citizens and additional dedicated trips Thus, transport management is critical, and additional routes are needed

Reverse logistics includes all the logistic activities related to the recycling, substituting, reusing and disposing of materials [STO 92] It involves planning, implementing and controlling an efficient, cost effective flow of raw materials, in-process inventory, finished goods, and pertinent information from consumption to the retrieval or proper disposal of the product [ROG 98] Efficient reverse logistics systems commonly produce both economic (i.e recovering the value of goods transported) and environmental benefits (i.e reuse and recycle waste) without producing additional negative externalities (i.e congestion and pollutant emissions) Reverse logistics and recycling are therefore strictly related, and different governmental-based strategies can be implemented to foster a broader development

of logistic systems for controlling reverse bound flows of recycled materials [WRI 11] Transport occurs at several stages within the recycling channel and often represents the largest logistical cost [POH 92]

The two fundamental aspects to consider in setting up an efficient reverse logistics process aimed at recycling are as follows:

– Although transport is fundamental to our economy and society, its impacts, in particular at the urban scale, are severe, affecting the livability and sustainability of our cities [EUR 11] It represents one of the main contributors to greenhouse gas emissions at the global level and is the only economic sector in Europe that has witnessed an increase in emissions by 19.4% over the period since 1990 [EUR 15b]

In this respect, there is a need for a better integration of freight activities in the urban transport system with context-specific measures to improve life quality standards within cities [ALI 15, COM 08]

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Integrating Direct and Reverse Logistics in a “Living Lab” Context 3

– Consumer involvement in recycling is essential Consumers are the foremost and decisive link in a reverse logistics chain that aims to recycle household packaging residues In fact, without consumers’ involvement and continuous collaboration, this system cannot produce the expected results [DOV 09] A “living lab” (LL) approach is desirable, where cities work as contexts for innovation and implementation processes for public and private measures co-created with stakeholders contributing to an increased efficiency and sustainable urban logistics [ERI 05, QUA 16, GAT 17]

– Based on this premise, this chapter describes the case of the Rome LL within the EU CITYLAB project,1 whose main objective is to develop knowledge and solutions that result in rollout, upscaling and further implementation of cost-effective strategies, measures and tools for emission-free city logistics The proposed solution

in the Rome LL concerns an innovative system for integrating direct and reverse logistics flows in the urban area with the aim of improving clean waste collection, so

as to increase the amount of recycled materials while also minimizing the amount of transport-related CO2 emissions [CIT 16a]

In general, reverse logistics design is maintained separately from direct logistics Nevertheless, this configuration reveals its weaknesses mostly due to the suboptimality, resulting from the disjoint design of the two logistics systems Therefore, the goal is to plan a logistics system shared by much of the territorial chain, which reduces losses due to the doubling and overlapping of forward and reverse logistics activities A reverse logistics network establishes a relationship between the market that releases used products and the market for new products

Using the definition El-Sayed et al provide [ELS 10], one can say that, “when these

two markets coincide, then it is called a closed loop network”

The main idea behind the Rome LL is to involve the national postal operator, already delivering mails/parcels all around the city, in the pickup, via electric vehicles,

of recycled materials during the same transportation route This will optimize the logistic process by avoiding dedicated trips and increasing load factors, thus reducing congestion and pollution As a first step, an innovative process of plastic cap collection (clean waste), integrating direct flows (i.e mail delivery) with reverse flows (i.e plastic caps), is tested in a small scale implementation involving a University context (i.e a large attractor) To increase the success probability of the solution proposed, it is fundamental to know the behavioral levers capable of stimulating potential agents’ (i.e students, administrative personnel and professors) participation in the initiative in advance Under this respect, a recent and fast-developing trend to engage and promote sustainable behaviors foresees the deployment of gamification techniques, i.e the use

of game dynamics in non-game contexts [DET 11]

1 http://www.citylab-project.eu/

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An ex ante behavioral analysis has been performed via stated choice experiments to

identify barriers/opportunities and necessary strategic/operational prerequisites for the proposed solution to be accepted and supported The potential effect of a gamification process applied to plastic cap recycling has been investigated Results of the behavioral analysis have been used to plan the proposed solution according to stakeholders’ preferences so as to increase their participation and foster sustainable behavior

The remainder of this chapter is organized as follows: the following section (1.2) describes the aims of the CITYLAB project and the Rome LL case (1.2.1) Besides, the innovative concept of gamification will be introduced as a mean to foster behavior change and participation to recycling initiatives (1.2.2) Section 1.3 on data

and methodology illustrates the case study (1.3.1) and the methods used for the ex ante behavioral analysis, i.e stated choice experiments (1.3.2) and discrete choice

models (1.3.3) Then, results will be presented (1.4) and policy implications derived, together with further steps of the Rome LL (1.4.1) Finally, a conclusion section (1.5) summarizes the main content and findings of this paper

1.2 CITYLAB: city logistics in living laboratories

The goal of the CITYLAB project is to develop knowledge and solutions for emission-free city logistics In a set of LL, logistics concepts are tested and evaluated

LL is defined as a dynamic environment built to test project solutions in real-life contexts: the city or city center can typically be such an LL environment where several implementations performed by different stakeholders run in parallel [CIT 16a] The

LL approach allows cities to be used as the contexts where seven innovative solutions identified within the project were tested and fine-tuned A city logistics LL

environment comprises three layers: strategic, practical and ex-post result observation

On the strategic layer, LL participants interact with each other with the aim to provide governance of the LL On the practical layer, the implementations are carried out in order to obtain information and results of the solution proposed; the third layer deals with the results of the implementation cases, enabling a “feedback loop” to decide for new directions and possibilities of the LL [CIT 16b]

Public and private measures, which are promising in terms of the potential impact on traffic, externalities and business profitability, are tested to provide a platform for replication The project focuses on four main axes:

– highly fragmented last-mile deliveries in city centers;

– large freight attractors and public administrations;

– urban waste, return trips and recycling; and

– logistics facilities and warehouses

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The main objectives of this project involve improving basic knowledge and understanding of urban freight transport/service trips in urban areas and testing and implementing innovative solutions in the cities of Rome, Amsterdam, Brussels, Oslo, London, Southampton and Paris The Rome LL focuses on the CITYLAB intervention axis on urban waste, return trips and recycling with the aim of reducing trips by integrating direct and reverse flows

1.2.1 Integrating direct and reverse logistics in a living lab context: the case of Rome

Rome is the most populated city in Italy, and it is in the last positions in the Italian city ranking according to environmental and livability indicators [LEG 15] Waste management and urban mobility are among the main problems afflicting the city With a constant presence of about 3.5 million inhabitants, Rome produces more than 1.7 million tons of waste each year, an amount equal to almost 600 kg/inhabitant, and only 37% of the total is recycled [LEG 15, WWF 16] Using the Scottish Carbon Metric, it has been estimated that recycling can reduce greenhouse gas emissions in Rome of approximately 400,000 tCO2eq [WWF 16] As far as urban mobility is concerned, Rome also shows significant problems related to traffic congestion and pollution, with 62 cars per 100 inhabitants, resulting in the 53% of total trips made by private vehicles [LEG 15]

The Rome LL aims to facilitate the EU circular economy strategy by providing

an efficient city logistics system collecting recycled urban waste, thus minimizing road congestion and polluting emissions while increasing freight vehicle load factors [EUR 15a] It contributes to the improvement of knowledge and understanding on the impacts of increased waste recycling It also allows the establishment of a community of multiple actors, working together in the city context, to work together toward shared solutions

The stakeholders involved in the Rome LL are as follows:

– Poste Italiane (PIT), the Italian national postal operator, who is interested in

exploring new businesses and discovering the main issues to be tackled when integrating direct and reverse trips in a real-life case;

– City of Rome and, in particular, Roma Servizi per la Mobilità (RSM), the

agency in charge of urban mobility in Rome, representing the main addressee of the

LL solutions;

– University of Roma Tre (UR3), one of the three main public universities in

Rome, providing scientific support to the Rome LL and the testbed for the implementation;

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– Meware (MEWR), a software house providing technological support for the

LL implementation;

– Cooperativa Formula Sociale (CFS), the company providing concierge

services to UR3 and UR3’s Mobility Manager, who is actively involved in the implementation process; and

– UR3 students, teaching and administrative staff, representing the demand for recycling in the LL implementation

The main idea refers to a double role played by PIT which will deliver mails/parcels (direct) and collect recyclable waste directly from the addressees during the same transportation route (reverse) This will optimize the logistic process by avoiding dedicated trips and increasing load factors, thus reducing congestion and pollution The solution proposed is completely new for PIT, and it has never been tested before PIT is interested in discovering the organizational, functional, operational, managerial and legal issues to be tackled when integrating direct and reverse trips PIT sees a business in the expansion of its core activities in

a complementary market (potentially profitable) where it can use existing capacity (operated at a marginal cost) to perform reverse logistic activities Risk and complexity suggest adopting a cautious approach In fact, a first implementation is proposed on a small scale yet capable of unveiling possible structural problems and relevant upscaling issues After extensive consultations and meetings, plastic cap collection was chosen as a test case The choice was mainly motivated by the stringent regulatory/labor legislation constraints that PIT is faced with (e.g hazardous material regulations and labor union reactions) The already existing and inefficient plastic cap recycling initiative at UR3 was also a complementary motivation

13% of the total waste in 2012 in Rome consisted of plastic material Since its unit value is 295 €/t, it has been estimated that this can yield a return of approximately 68 million € While generic plastic waste management is performed

by the local waste collection company (AMA S.p.A.), plastic caps can be collected separately and are more profitable Plastic caps are composed of polyethylene, which is an easily recyclable-versatile-economic type of plastic, and recycling initiatives have been spreading in local/national contexts in recent years, demonstrating their success with respect to people participation

The first cycle of the Rome LL therefore aims at setting up a small scale implementation of plastic cap collection in a University context, which is, by definition, a large attractor Participation in the initiative is fundamental to increase

the success probability of the solution proposed An ex ante behavioral analysis has

been conducted to investigate the preferences and behavioral levers capable of motivating University agents to take an active role in recycling In this respect,

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gamification has been included as an attribute characterizing variants of recycling initiatives to explore its importance from an agent’s point of view and to estimate its potential impact The next section briefly describes the fundamental tenets of this innovative approach to engage and promote sustainable behaviors

1.2.2 The role of gamification to foster sustainable urban freight transport

Gamification consists of “using game design elements in non-gaming contexts” [DET 11] It is mainly aimed at influencing behaviors, and in the last years, it has been explored and used in many sectors, such as education (e.g [DEN 13, DOM 13, GÅS 11]) and sustainability (e.g [GNA 12, BER 13, NEG 15]) Gamification takes advantage of the power of game mechanics for non-entertainment purpose in order

to foster sustainable behavior [NEL 12] Behavior change is the end goal that policy-makers aim for In fact, a voluntary change in behavior can contribute to the substantial changes needed to ensure a sustainable society [SCH 12] Inducing behavior changes in the freight industry could help jointly achieve significant reductions in the externalities produced as well as improve economic productivity and efficiency For this reason, gamification is more progressively used in both passenger [MEL 15, COR 15, HOH 12, KAZ 15, JYL 13] and freight [KLE 14, HEN 14] transport

Gamification, however, needs to be appropriately conceived, deployed and managed if the expected results are to be achieved To foster engagement and participation, one has to understand who the potential players are and, above all, what they expect from a gamified experience Users’ preferences for game types should be directly linked to game elements and mechanics (i.e rules of the game) so

as to maximize the “behavior change potential” the gamification might produce [MAR 16a] The main game components are (1) point assignment (e.g by overcoming levels, succeeding in a mission), (2) rewarding mechanisms (e.g based

on badges, external rewards such as discounts) and (3) type of participation (e.g individual, team)

Since a well-conceived gamification process can increase user participation and

contribute to the overall success of the plastic cap initiative, the ex ante behavioral

analysis performed investigates the potential impact of a gamification process

associated with the plastic cap collection The aim is to understand if and how much

gamification would impact on agents’ behaviors, since the success of the solution under investigation is strictly linked to the participation of the plastic cap recycling initiative: the more the caps are collected, the more the caps are recycled and the less

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dedicated the trips are made This implies a decrease of kilometers traveled and CO2

emissions emitted In this respect, stimulating a wider participation in the initiative

is important and a gamification process could be potentially crucial Therefore, it is

important to investigate its attractiveness and desirability for UR3 agents

1.3 Data/methodology

1.3.1 Plastic cap collection at the University of Roma Tre

UR3, which is considered a “green” University according to the UI GreenMetric Ranking,2 started a plastic cap recycling initiative 10 years ago The existing collection process was conceived so that the involved people brought plastic caps to one of the collection points present in several of the 28 buildings scattered around the city The Mobility Manager was in charge of gathering and consolidating them from the peripheral collection points to the central one (located in the Rectorate)

The organization of this process implied detours or ad hoc trips characterized by

extremely low load factors The initiative relied on the voluntary participation of UR3 agents and it was conditioned by the actual availability of participants In 2015, the plastic cap collection came to an end for various reasons The presence of indecorous plastic bags filled with caps left next to the bins was one of the reasons that prompted its closure Old system saturation was basically inducted by its inefficiency in responding to user needs

An innovative process of cap collection will be tested in four University buildings that accommodate both students’ facilities and offices for professors and administrative staff, integrating direct and reverse flows with the aim of reducing the number of necessary trips and organizing an efficient and sustainable collection system The implementation site is reported in Figure 1.1 It consists of a small area

of about 1 km2 located in the southern part of Rome

The whole system related to caps’ management, from the signaling of full boxes

to be picked up, to the distribution from the four buildings to the local PIT distribution center, and then to the UR3 central collection point (Rectorate), will be

efficiently and coordinately organized, without ad hoc trips, by taking advantage of

the existing trips made by mail carriers

2 http://greenmetric.ui.ac.id/

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Figure 1.1 Site of the LL implementation

An ex ante behavioral analysis has been performed with the main objective to

evaluate the degree of acceptance of the CITYLAB solution in the UR3 social environment Behavioral analysis is fundamental to elicit stakeholders’ preferences and to investigate their utility, maximizing behavior (e.g [HOL 13, GAT 16b, MAR 17a, MAR 17b]) First, data were collected (through surveys) from key

stakeholders, to understand their behavior and their ex ante acceptance of the

measures proposed This process led to the identification of barriers/opportunities and necessary, strategic/operational prerequisites for the proposed solution to be accepted and supported A questionnaire was subsequently prepared and administered to elicit stakeholders’ general opinions and preferences about alternative scenario configurations Preferences about hypothetical scenarios were elicited via stated choice experiments (SCEs), while discrete choice models (DCMs) were used to estimate the willingness to pay related to single scenario components [GAT 14]

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1.3.2 Stated choice experiments

Stated choice experiments (SCEs) are widely used in various areas including marketing, transport, environmental resource economics and public welfare analysis [ALE 16, ALE 17, FEL 07, MAR 11, MAR 12a, ROT 12, STR 07, VAL 16] They represent one of the most important survey methods used across the world [AIZ 12] They can be used for forecasting individuals’ preference structures [MAR 16b], estimating robust willingness to pay measures [GAT 15] and calculating scenario simulations [MAR 15] An SCE consists of several choice sets, each involving two

or more alternatives, described by several attributes Each attribute has two or more levels that are plausible over a reasonable range Each respondent is asked to choose one of the options presented in the choice set according to his/her preferences The core part of SCE is characterized by the statistical design to construct hypothetical choice sets Several types of experimental designs can be created from simple to advanced ones For instance, Gatta and Marcucci [GAT 16a] propose a stakeholder-specific multistage efficient design for urban freight transport policy behavioral analysis The idea is to study the relative influence of independent variables (attributes) on a given observed phenomenon (choice)

The ex ante behavioral analysis in the Rome LL is based on a questionnaire

administered to acquire information on stakeholders’ preferences to customize the proposed solution accordingly The first section includes general information and opinions about the initiative while the second includes the SCE, aimed at eliciting preferences by proposing different scenario configurations The choice of the attributes to be included in the SCE has been performed by taking into account the results that emerged from focus groups and, more in general, from the survey with key stakeholders previously conducted Interviewees were asked to respond to a sequence of tasks where they had to choose one option within a finite and self-excluding choice set The statistical design adopted in this specific application allows each of the possible level combinations to appear at least once

The design adopted was divided into five blocks corresponding to five versions

of the questionnaire Each option was characterized by five attributes with two levels each More in detail, the attributes used are (1) the aim of the initiative (to improve UR3 services/charity), (2) cap-throwing mode (one cap/more caps per time), (3) the transport system used (environmentally/non-environmentally friendly) and (4) the probability to find boxes full (low/high), gamification (yes/no) Besides, for each option, agents were also asked to state (1) if they would have participated in the initiative (yes/no), (2) the expected frequency of participation (e.g daily, weekly) and (c) the number of caps they would eventually recycle

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1.3.3 Discrete choice models

In choice experiments, it is usually supposed that each interviewee chooses the

option with the highest utility among those available [TRA 03] Random utility

models assume that the decision-maker disposes of perfect discriminative capability,

while the analyst has incomplete information and, thus, utility is modeled as a

random variable [BEN 85] DCMs are used to analyze data gathered via SCEs where

respondents’ decision-making can be modeled using random utility theory

Microeconomics assumes that rational agents maximize utility [LOU 00] Utility (ܷ)

is composed of a deterministic (ܸ) and a stochastic term (ߝ): the former is assumed

to be a linear function of attributes while different assumptions about the distribution

of the stochastic term lie at the basis of different DCM specifications

The utility that individual ݅ associates with alternative ݆ is given by

where ܺ௜௝ is the vector of attributes as perceived by agent ݅ for alternative ݆, and ߚᇱ

is the vector of estimated parameters

The analysis performed uses multinomial logit models (MNLs) The variables

included in the models are effect-coded.3

1.4 Results

In total, 597 interviews were administered, mostly consisting of students (90%),

professors (5%) and administrative staff (5%), reflecting the different strata of the

daily University-going population

The estimation run over the whole sample is shown in Table 1.1 Three

attributes, i.e the aim of the initiative, cap-throwing mode and the probability to find

boxes full, are not significant, meaning that agents are probably indifferent to the

levels of that particular attribute or their preferences are not significantly affected by

that factor The attributes that appear to be significant are “Environmentally-friendly

transport system” (environ) and “Gamification” (gamif) Both have a positive

impact on the overall value of the utility function The result related to the transport

system adopted for the recycling initiative is of great interest for the research In

3 Effects coding an attribute imply constraining parameters’ estimates to sum up to zero One

has to take this into account when interpreting the econometric results

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fact, this coefficient is not only significantly different from zero but also seems to have a positive impact on the overall utility function, according to the collected data

On average, interviewees prefer a solution that includes gamification Econometric analysis testifies the high potential that a gamified plastic cap recycling initiative has, thanks to its engaging capability within a University environment Other studies too seem to indicate that gamification applied to plastic cap recycling has a positive effect on the final result of the initiative [BER 13]

Variable Description Coefficient St Error T-stat P-value improve Improve UR3 services –0.037 0.022 –0.169 0.866 onecap One cap per time 0.012 0.022 0.526 0.599 environ

Table 1.1 MNL results for the whole sample

In order to investigate preference heterogeneity [MAR 12b, MAR 13], estimations were done by dividing the sample according to the different departments Table 1.2 reports the results for the four departments

Results obtained by dividing the sample suggest that preferences are quite spatially heterogeneous However, a wide shared consensus toward the application

of an environmentally friendly transport system, which is the main innovation brought by CITYLAB project in Rome, emerges from the estimated models

Gamification is seen as a positive feature for two out of four departments During interview sessions, it was possible to experience the reactions of students when faced with gamification For example, many of those who usually tended to discard this approach used to justify it as ethically unacceptable, while others simply argued that it would be too complex to build a game able to encourage participation

in the initiative A low probability to find full boxes appears to be significant for two out of four departments, while the cap-throwing mode and the aim of the initiative are significant only for one department (Departments 1 and 2, respectively), showing a preference toward throwing more caps per time and improving UR3 services, thanks to the revenue derived from recycled caps

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Department 1 (n= 180) Variable Coefficient St Error T-stat P-value

Table 1.2 MNL results per department

Another important goal of the research is to estimate the participation of users in

the recycling initiative Since for each scenario configuration, they were asked to

state the number of caps that they would eventually throw, it is possible to roughly

estimate how many plastic caps could be collected in a scenario analysis To create a

link between the preference toward the alternative systems and the estimated amount

of recycled plastic caps per department, a simple measure of the “satisfaction

to a certain scenario as a percentage of the maximum amount of utility perceived

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Two basic assumptions were made:

– estimations made for departments are extended to the single users; and

– for each user, the maximum amount of caps declared is considered as the amount that they would throw if the utility of the department were maximized Starting from these assumptions, the utility assigned to alternative systems is calculated, based on the results of the four MNL models reported earlier The estimations are then extended to the population attending the four departments, according to internal data available from UR3.4 Daily estimations are extended

to yearly ones by considering an approximate number of the presence at the University

Starting from the number of caps, it is possible to derive the kilogram of caps collected in a year (considering that 400 caps weigh approximately 1 kg) and the number of full boxes (1 box § 2 kg of caps), corresponding to the trips that have to

be made to collect caps (1 full box = 1 trip) Then, the total number of kilometers for round trips is estimated for each scenario according to the distance from each department to the collection point, and an estimation of the emitted greenhouse gases (in terms of CO2eq) is performed using an average emission factor for cars of

189 gCO2eq/vkm ([RIC 14], tab 33) The amount of CO2eq is a measure of the

transport impact of the old solution (i.e the status quo) and, therefore, an estimate of

the potentially saved CO2eq by combining direct and reverse logistics with the CITYLAB solution

Variable/Scenario Status quo (worst) Scenario 1 Scenario 2 Scenario 3 (best)

improve no no no yes

problow no no no yes

Table 1.3 Scenario analysis

Table 1.3 reports the different scenarios tested The reference scenario is the

status quo situation (i.e before LL implementation), characterized by a charity aim,

a system allowing one thrown cap per time, a non-environmentally friendly transport

4 Under this respect, data related to the number of students attending classes in the four departments for 6 months of classes are used as the starting point For a first rough estimate, only a portion of the population is considered (corresponding to 50% of the attendants)

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system, a high probability to find boxes full and without gamification According to the results obtained, this can be considered as the worst option The other scenarios

are built by considering incremental changes to the status quo in line with the

preferences expressed by UR3 agents:

– Scenario 1 improves the status quo by adopting an environmentally friendly

transport system (first ranked attribute according to the MNL estimated for the whole sample);

– Scenario 2 is scenario 1 with, in addition, a gamification process associated

with the initiative (second ranked attribute according to the MNL estimated for the whole sample);

– Scenario 3 also considers improving UR3 services as the aim of the initiative, a

system allowing more thrown caps per time and a low probability to find boxes full (as suggested by the results of the MNL per single department) This can be considered as the best option

Results in terms of expected caps (kilogram per year) and saved CO2 are presented in Table 1.4

Scenario ܵௗ௘௣̴ଵ

(%)

ܵௗ௘௣̴ଶ(%)

ܵௗ௘௣̴ଷ(%)

ܵௗ௘௣̴ସ(%)

Expected caps (kg per year)

Expected trips (i.e

boxes per year)

Saved

CO 2 eq (kg per year)

Table 1.4 Scenario comparison: expected caps and saved CO2eq

The difference between the status quo solution and scenario 1 is high, with more

than 400 kg of additional caps expected to be collected in a year Since scenario 1

envisages the integration of direct and reverse logistics with no ad hoc trips to carry

the caps, it is possible to estimate the saved CO2eq with respect to the status quo,

which is of 457 kg per year By adopting a “gamified” system in scenario 2 and, thus, following the results of the MNL estimated for the whole sample, approximately 80 more kg would be collected compared to scenario 1 with an additional saving in terms of CO2eq emitted (about 40 kg) The “best” scenario (i.e scenario 3), which encompasses all the heterogeneous preferences of the

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departments’ agents, accounts for an additional increase of caps (about 270 kg) and saved CO2eq (about 50 kg) per year

These results are helpful to plan the solution to be deployed according to the preferences of stakeholders and the expected impacts in terms of recycled caps and saved greenhouse gas emissions Clearly, they need to be validated within the implementation to see how much the stated preferences differ from the actual behavior It is worth noting that the very small scale of the implementation does not allow us to obtain significant results in terms of the overall CO2eq saved Nevertheless, by testing the sustainable logistics model and proving its feasibility and effectiveness at a small scale, it would be possible to upscale it and transfer the results to other contexts so as to increase its impact

1.4.1 Policy implications

Results of the behavioral analysis are useful to plan the functioning of the proposed solution according to stakeholders’ preferences Assigning a double and correlated task to the postal operator ensures empty trip minimization, thus contributes to the goal of reducing trips by integrating direct and reverse flows Upscaling the solution proposed will both produce beneficial impacts for the city and contribute to service financial viability The sustainable logistics model proposed could be applied to (1) other departments within UR3, (2) other Universities/educational institutions, (3) other large attractors (e.g hospitals), (4) commercial activities and (5) condominiums with a concierge service Additionally, the logistics solution could also be extended to other types of recycled materials (e.g exhausted batteries and toners) and to other geographical contexts (i.e local, national and international) This is particularly relevant for the second cycle of the

LL, which will explore the opportunity to (1) extend the implementation in terms of flows involved, sites and alternative waste recycled, and (2) include it in the actual logistics process for urban waste management

A hybrid waste collection strategy, using large attractors as intermediate locations with dedicated recycling facilities, can (1) reduce the amount of dedicated efforts that agents have to perform while recycling (no specific trips would be required to visit ecological islands), (2) reduce the number of trips that collection firms need to perform in order to increase the amount of materials recycled whilst also avoiding their illegal discharge and (3) optimize load factor capacity by selecting specific waste categories and grouping their collection via appropriately organized and coordinated non-dedicated trips The Rome LL contributes to the city environment where the recently passed Directives 2016–2021 for the future governance of the city of Rome have set waste collection and management as one of the most relevant issues [ROM 16]

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As far as gamification is concerned, we evaluated ex ante its potential

acceptability and its impact in terms of stakeholder participation in recycling Future research will consider its implementation as a real opportunity to engage stakeholders and promote sustainable behaviors, and preliminary work is already under way Apart from the general acceptance of a gamification process, it is necessary to investigate the preferences of the potential (heterogeneous) players and link these preferences to game elements and mechanics so as to increase the probability of success In this respect, a behavioral analysis based on the stated choice techniques and discrete choice models provides a sound theoretical basis where to ground a user-centered gamification process [MAR 16a] This complementary measure might have a high impact in fostering financial self-sustainability and upscaling of the solution proposed

1.5 Conclusion

This paper presented the case of the Rome LL within the EU CITYLAB project, where an innovative system for integrating direct and reverse logistic flows in the urban area has been set up with the aim of improving clean waste collection so as to increase the amount of recycled materials while also minimizing the amount of transport-related CO2 emissions An ex ante behavioral analysis has been conducted

via SCEs and DCMs to investigate stakeholder preferences for different scenario configurations and the potential impact of a gamification process associated with the plastic cap collection Results of the behavioral analysis are useful to plan the functioning of the proposed solution according to stakeholders’ preferences The scheme proposed represents a solution that can contribute to reach sustainability and efficiency of freight transport at the urban level The sustainable logistics model proposed has a high potential of upscaling and transferability, e.g to other departments, Universities or large attractors (e.g hospitals) Additionally, it could be extended to other types of recycled materials and to other geographical contexts The scheme proposed contributes to the improvement of knowledge and understanding

of the impacts of increased waste recycling and represents a solution that can contribute to reach a circular economy, environment protection, sustainability and

efficiency of freight transport at the urban level

1.6 Acknowledgements

This work was supported by and developed within the framework of the EU H2020 CITYLAB project (grant agreement no 635898)

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2.1 Introduction

Movements of freight vehicles inside central city areas have significantly increased in recent years due to various operational and socioeconomic factors and trends [VIS 14] This is accompanied by inefficient loading and parking infrastructure, which deteriorates the efficiency of last-mile freight Consequently, the presence of increasing movements of freight vehicles results in various negative

Chapter written by Khalid A LJOHANI and Russell G T HOMPSON

City Logistics 3: Towards Sustainable and Liveable Cities, First Edition.

Edited by Eiichi Taniguchi and Russell G Thompson.

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social, environmental and economic impacts on residents, workers and businesses [SAV 16] suggested that in order for freight carriers to keep offering low-cost and competitive services inside the central city area, they need an improved coordination

of the flows of goods, a higher consolidation of freight movement and a better multi-organization cooperation Despite being the least efficient link in freight transport, previous academic studies aiming to enhance last-mile freight have concentrated primarily on carrier-focused initiatives such as urban distribution centers, freight vehicles’ restriction schemes, environmentally friendly vehicles and congestion pricing However, focusing on sustainable logistics land-use policies to reduce negative impacts of freight movements based on the location of logistics facilities in inner urban areas has not received similar academic research [GON 14] indicated that micro-urban consolidation centers in France and Italy were significantly less prevalent and established than many traditional UCCs that were established in suburban parts of the city Furthermore, [JAN 13] reported in their evaluation of MUCC initiatives in Europe that only French-based MUCCs such as Chronopost and Distriopolis and London-based MUCCs such as Regent St and Gnewt Cargo operated logistics facilities that were in fact established inside the city’s center It can be argued that more research is required on how to optimally and sustainably establish suitable logistics facilities in the central city area due to increasing last-mile delivery activities, as supported by [BRO 15, TAN 16, ALJ 16a] This chapter presents the results and analysis of an observational study of the use

of on-street loading zones (OLZs) which was conducted in Melbourne’s CBD in September 2016 The observational study aimed to develop a better understanding of the usage and efficiency of parking and loading activities by freight vehicles, especially light commercial vehicles (LCV) in the central city area The study attempted to shed more light on the increasing use of LCVs and the type of products delivered by LCVs in the central city area The results further raise the need to establish suitable sorting and consolidation facilities in the congested central city area to alleviate the negative impacts of last-mile delivery Accordingly, this chapter presents an integrated framework for designing and facilitating the sustainable establishment of a Central City Transshipment Facility (CCTF) in the central city area that uses carriers-led and receivers-engaged initiatives to ameliorate last-mile freight in congested inner urban areas This chapter is organized as follows: section 2.2 presents a review of the literature on last-mile delivery in central city areas Section 2.3 describes the observational study and provides an overview of the integrated framework Section 2.4 provides results and analysis of the observational study in Melbourne’s CBD Section 2.5 presents the framework developed to establish the CCTF with a description of the various stages involved in this framework Section 2.6 provides a concluding summary and recommendations for future research

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Optimizing the Establishment of a Central City Transshipment Facility 25

2.2 Literature review

2.2.1 Recent trends and challenges affecting last-mile delivery

Trends such as the desire for speed in delivery lead time, rise of the sharing economy, crowd logistics and omni-channel fulfillment have contributed to significant changes in last-mile deliveries [SAV 16] These trends are increasing the volume of express and urgent deliveries as well as fragmentation of shipments (receiving smaller parcels daily rather than a weekly consolidated delivery) Furthermore, the rise of same-day delivery services offered by retailers due to new customer’s requirement for express deliveries and omni-channel fulfillment presents

a challenge to Couriers, Express and Parcel (CEP) service providers [SAS 16] warned that express delivery services make coordination and consolidation of loads more challenging for retailers and CEP carriers, as the location of their storage facility becomes very critical in their success in offering cost-competitive and efficient delivery services

In crowd logistics, which builds on crowdsourcing and sharing economy, an online platform acts as a mediator that coordinates supply and demand for transport services and matches shippers and receivers with qualified individuals and businesses to conduct the transport service [MEH 15] The rise of partnerships between retailers and online platforms such as Deliv and Postmates offers instantaneous delivery services to consumers without owning warehouses A majority of these deliveries are for light parcels and are carried out on foot or bike These significantly expedite the speed of delivery compared to traditional couriers

It can be argued that these trends and competition compel traditional logistics companies to consider adding a newer layer of small-scale sorting and distribution facilities that are geographically much closer to consumers inside inner urban areas This facilitates the minimization of delivery lead time, improving service levels and lowering transportation costs [TRE 14], the Director of Operations at the UK-based retail consultant Javelin Group, reported that the recent growth of online grocery orders encouraged various large grocery retailers in Europe to establish physical stores in inner urban areas dedicated only to e-grocery deliveries These fulfillment centers, which are called “dark stores”, enable large supermarket chains to offer express and efficient delivery services to shoppers in inner urban areas without affecting offline store operations These dark stores usually operate large fleets of light trucks to deliver e-grocery orders to thousands of shoppers in inner urban areas For instance, Waitrose, a leader in the UK grocery industry, established a dark store

in West London that delivers about 2,000 orders/week while Tesco’s dark store in Southeast London processes about 4,000 orders/day [BUT 14] Similarly, Amazon established a 50,000 ft2 warehouse on the fifth floor of a Mid-Manhattan office tower in New York to offer one- and two-hour delivery of groceries and selected

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