Consumer Choice Portal and Package Consolidation Centre (PPCC)
Lead Research Organisation:
University of Cambridge
Department Name: Engineering
Abstract
This project proposes the development of a portal enabling consumer choice in the delivery of packages to the home supported by a packaging consolidation centre pilot, located within a densely populated urban environment. The introduction of a consolidation centre aims to empower the consumer with respect to the delivery method in the last five miles of the package journey, also enables supplies to be consolidated upstream and downstream of the centre. Statistics show that 30% of small packages dispatched to customer homes fail to be delivered first time. Failed deliveries significantly reduce the productivity of the logistics provider and increase congestion and pollution. Consumers are aware that deliveries to their home may fail repeatedly but there exist no mechanisms to engage with the supply chain. In the UK, many courier firms are engaged in multiple drops to the same urban area each day, increasing pollution and congestion with no value added to the consumer. This pilot involves -the development of a portal that provides consumer choice features including packaging type, traceability, time and mode of delivery (e.g. sustainable vehicle solutions)-a local urban consolidation centre, open 24x7, providing opportunities for easy access for consumers, consolidation opportunities for primary suppliers and last mile couriers where packages are required to be delivered to the home, and facilities to minimize packaging at source and optimize recyclingThe novelty lies in the front end consumer portal enabling consumer choice, the integrated consolidation centre and in the delivery network involving key stakeholders in the supply chain.
Organisations
People |
ORCID iD |
| Mike Gregory (Principal Investigator) |
Publications
Aized T
(2013)
Hierarchical modelling of Last Mile logistic distribution system
in The International Journal of Advanced Manufacturing Technology
Aized, T.
(2013)
Hierarchical modelling of last-mile logistics distribution system
in International Journal of Advanced Manufacturing Technology
Alinaghian L
(2020)
A relational embeddedness perspective on dynamic capabilities: A grounded investigation of buyer-supplier routines
in Industrial Marketing Management
Alinaghian L
(2020)
A relational embeddedness perspective on dynamic capabilities: A grounded investigation of buyer-supplier routines
in Industrial Marketing Management
Alonso F
(2014)
Emerging market multinationals: Opportunity or threat for Europe
Baxter D
(2014)
Reshoring: Back to the source
Cheng K
(2012)
Special issue on sustainable manufacturing and the key enabling technologies
in Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture
Christodoulou P
Synergy from configuration of global production networks: drivers, mechanisms and outcomes
in Production Planning & Control
Cranston G
(2015)
Doing business with nature: Opportunities from natural capital
| Description | This project focused on the delivery of packages to the home, driven by an online portal and supported by a packaging consolidation centre located next to a densely populated urban environment. The approach developed, as part of the research, was applied to develop a novel last-mile supply chain configuration. One key element of this was a 'consumer portal'. This shows an which enabled the consumer to make informed decisions regarding the mode of last-mile delivery and to take control of timing, cost, reliability and 'greenness'. The approach also led to detailed mapping of the order/delivery system for a single parcel, and development of a physical consolidation centre that handles the incoming packages from the logistics provider for last-mile provision. The key benefits delivered by the project included improved consumer choice on delivery mode and timing, alongside improved service, reduction in congestion and improved environmental performance. Key academic outputs included: a) Development of a 2-echelon supply chain (SC) model for the 'Last Mile' b) Understanding Customer, Industrial, Institutional and SC drivers in terms of parcel delivery c) Exploration of the usage habits of actual users including drivers and motivations d) Development of overlapping metrics involving the 3 actor groups (i.e. Customer, Industry, Institution); overlaps between actor pairings; common interests and trade-offs e) Exploration of scale-up opportunities through potential partnerships f) Development of a 'concept of operations' for Consolidation centres g) Identification of potential revenue streams with other supply chain actors and possible extension to B2B context (i) downstream with public sector bodies and (ii) Upstream with 'competing' couriers h) Advancing the critical 'Triple Helix' concept e.g. interests and engagement of the different stakeholders (e.g. institution, industry and customer) |
| Exploitation Route | The approaches developed as part of this research have already been used to inform assessment of future service provision in the public sector. In this particular case, the approaches were used to examine current operations and opportunities for process optimisation and cross-service integration across a series of services. In general, the approaches and findings from the original research may help inform future service requirements that can be tested against likely future trends - social, technological, industrial, economic, and political - and the impact these emerging scenarios might have on strategic decisions. |
| Sectors | Communities and Social Services/Policy,Construction,Creative Economy,Digital/Communication/Information Technologies (including Software),Education,Environment,Government, Democracy and Justice,Culture, Heritage, Museums and Collections,Retail,Transport,Other |
| URL | http://www.ifm.eng.cam.ac.uk/research/global-networks/emerging-themes/e-commerce-driven-last-mile-logistics/ |
| Description | Considerable research outputs continue to be generated on e-commerce driven last-mile logistics. Specifically, publications have addressed the viability of e-commerce last-mile delivery, integrating the economics of cost-to-serve models linked to a specific geography-population, and where we would examine the basket of the consumer, based on their preferences (e.g. nutritional preferences). Other papers published in the leading journals in the field cover specific topics including: - a recent 2017 industrial practice review piece published in leading supply chain management journal - a 2018 publication, in the International Journal of Operations and Production Management, on the design (configuration) approach for last-mile logistics in the omni-channel context - a structured 2018 literature review, published in the International Journal of Physical Distribution and Logistics Management, on the e-commerce last-mile logistics domain. These publications and on-going modelling tools are currently being used in industry to analyse Best Practise, omni-channel configuration design, and the viability of e-commerce operations in high population densities with significant market penetration and adoption of e-commerce transactions. Industry users include major Fast Moving Consumer Goods Manufacturers, retailers, and specialist last-mile distributors. Similar approaches to last-mile e-commerce delivery are now being explored within the healthcare sector with a major pharmacy-chain, and a thrid-party logistics services provider. |
| First Year Of Impact | 2016 |
| Sector | Communities and Social Services/Policy,Creative Economy,Digital/Communication/Information Technologies (including Software),Environment,Healthcare,Pharmaceuticals and Medical Biotechnology,Retail,Transport |
| Impact Types | Societal,Economic,Policy & public services |