Enabling the freight traffic controller for collaborative multi-drop urban logistics: practical and theoretical challenges

There is increasing interest in how horizontal collaboration between parcel carriers might help alleviate problems associated with last-mile logistics in congested urban centers. Through a detailed review of the literature on parcel logistics pertaining to collaboration, along with practical insights from carriers operating in the United Kingdom, this paper examines the challenges that will be faced in optimizing multicarrier, multidrop collection, and delivery schedules. A “freight traffic controller” (FTC) concept is proposed. The FTC would be a trusted third party, assigned to equitably manage the work allocation between collaborating carriers and the passage of vehicles over the last mile when joint benefits to the parties could be achieved. Creating this FTC concept required a combinatorial optimization approach for evaluation of the many combinations of hub locations, network configuration, and routing options for vehicle or walking to find the true value of each potential collaboration. At the same time, the traffic, social, and environmental impacts of these activities had to be considered. Cooperative game theory is a way to investigate the formation of collaborations (or coalitions), and the analysis used in this study identified a significant shortfall in current applications of this theory to last-mile parcel logistics. Application of theory to urban freight logistics has, thus far, failed to account for critical concerns including (a) the mismatch of vehicle parking locations relative to actual delivery addresses; (b) the combination of deliveries with collections, requests for the latter often being received in real time during the round; and (c) the variability in travel times and route options attributable to traffic and road network conditions

Collaboration in urban distribution of online grocery orders

Purpose: Population growth, urbanisation and the increased use of online shopping are some of the key challenges affecting the traditional logistics model. The purpose of this paper is to focus on the distribution of grocery products ordered online and the subsequent home delivery and click and collect services offered by online retailers to fulfil these orders. These services are unsustainable due to increased operational costs, carbon emissions, traffic and noise. The main objective of the research is to propose sustainable logistics models to reduce economic, environmental and social costs whilst maintaining service levels. Design/methodology/approach: The authors have a mixed methodology based on simulation and mathematical modelling to evaluate the proposed shared logistics model using: primary data from a major UK retailer, secondary data from online retailers and primary data from a consumer survey on preferences for receiving groceries purchased online. Integration of these three data sets serves as input to vehicle routing models that reveal the benefits from collaboration by solving individual distribution problems of two retailers first, followed by the joint distribution problem under single decision maker assumption. Findings: The benefits from collaboration could be more than 10 per cent in the distance travelled and 16 per cent in the time required to deliver the orders when two online grocery retailers collaborate in distribution activities. Originality/value: The collaborative model developed for the online grocery market incentivises retailers to switch from current unsustainable logistics models to the proposed collaborative models

Simulation and optimization of a multi-agent system on physical internet enabled interconnected urban logistics.

An urban logistics system is composed of multiple agents, e.g., shippers, carriers, and distribution centers, etc., and multi-modal networks. The structure of Physical Internet (PI) transportation network is different from current logistics practices, and simulation can effectively model a series of PI-approach scenarios. In addition to the baseline model, three more scenarios are enacted based on different characteristics: shared trucks, shared hubs, and shared flows with other less-than-truckload shipments passing through the urban area. Five performance measures, i.e., truck distance per container, mean truck time per container, lead time, CO2 emissions, and transport mean fill rate, are included in the proposed procedures using real data in an urban logistics case. The results show that PI enables a significant improvement of urban transportation efficiency and sustainability. Specifically, truck time per container reduces 26 percent from that of the Private Direct scenario. A 42 percent reduction of CO2 emissions is made from the current logistics practice. The fill rate of truckload is increased by almost 33 percent, whereas the relevant longer distance per container and the lead time has been increased by an acceptable range. Next, the dissertation applies an auction mechanism in the PI network. Within the auction-based transportation planning approach, a model is developed to match the requests and the transport services in transport marketplaces and maximize the carriers’ revenue. In such transportation planning under the protocol of PI, it is a critical system design problem for decision makers to understand how various parameters through interactions affect this multi-agent system. This study provides a comprehensive three-layer structure model, i.e. agent-based simulation, auction mechanism, and optimization via simulation. In term of simulation, a multi-agent model simulates a complex PI transportation network in the context of sharing economy. Then, an auction mechanism structure is developed to demonstrate a transport selection scheme. With regard of an optimization via simulation approach and sensitivity analysis, it has been provided with insights on effects of combination of decision variables (i.e. truck number and truck capacity) and parameters settings, where results can be drawn by using a case study in an urban freight transportation network. In the end, conclusions and discussions of the studies have been summarized. Additionally, some relevant areas are required for further elaborate research, e.g., operational research on airport gate assignment problems and the simulation modelling of air cargo transportation networks. Due to the complexity of integration with models, I relegate those for future independent research

Towards Sustainable Collaborative Logistics Using Specialist Planning Algorithms and a Gain-Sharing Business Model:A UK Case Study

This paper introduces the FreightShare Lab Platform (FSLP) and its embedded business model, aiming to facilitate and encourage horizontal collaboration in freight logistics. The idea of the FSLP is to create collaborating clusters of freight operators, and corresponding collaborative operational plans, via specialised decision support algorithms and multi-fleet optimisation. Further, a gain-sharing business model embedded within the FSLP algorithms ensures that participants, mainly logistics service providers and freight operators, can retain their own profit margins and fairly share the efficiency gains from collaboration. A case study is presented, centred on a large UK freight operator, to evaluate the key FSLP algorithms in a realistic context. The results evidence the potential for significant financial and environmental benefits for industry and society

Can We Operate in a Shared Economy: Insights from Global Logistics Sector

The current global environment requires to continue improvement for innovative methods and practices of the business process management to be sustainable performance including three-pillars (economic, social and environment) [1]. The term sharing generally defined as non- ownership and less tangible assets [2]. This paper presents the interconnection of “Sharing Economy” & “Sharing Logistics”. The paper aims to address the understanding of success factors towards sharing economy and development in global logistics and supply chain management. Its achievement is based on a two-research methodology design that consists of the secondary sources review and case studies analysis. The study identifies that share economy logistics has opportunities and benefits from rising costs of warehousing, transportation, and last-mile delivery to create customer value. Such as the omnichannel (customer focus) to increase customer expectation and improve customer experience. Beside generate value to the customer it has driven supply chain sustainability with blockchain as well.Keyword: Shared Economy, Shared Logistics, Supply Chain Management, Procurement and Transportatio

Internal report cluster 1: Urban freight innovations and solutions for sustainable deliveries (1/4)

Technical report about sustainable urban freight solutions, part 1 of

Volumetric Techniques for Product Routing and Loading Optimisation in Industry 4.0: A Review

Industry 4.0 has become a crucial part in the majority of processes, components, and related modelling, as well as predictive tools that allow a more efficient, automated and sustainable approach to industry. The availability of large quantities of data, and the advances in IoT, AI, and data-driven frameworks, have led to an enhanced data gathering, assessment, and extraction of actionable information, resulting in a better decision-making process. Product picking and its subsequent packing is an important area, and has drawn increasing attention for the research community. However, depending of the context, some of the related approaches tend to be either highly mathematical, or applied to a specific context. This article aims to provide a survey on the main methods, techniques, and frameworks relevant to product packing and to highlight the main properties and features that should be further investigated to ensure a more efficient and optimised approach

A blockchain-IoT platform for the smart pallet pooling management

Pallet management as a backbone of logistics and supply chain activities is essential to supply chain parties, while a number of regulations, standards and operational constraints are considered in daily operations. In recent years, pallet pooling has been unconventionally advocated to manage pallets in a closed-loop system to enhance the sustainability and operational effectiveness, but pitfalls in terms of service reliability, quality compliance and pallet limitation when using a single service provider may occur. Therefore, this study incorporates a decentralisation mechanism into the pallet management to formulate a technological eco-system for pallet pooling, namely Pallet as a Service (PalletaaS), raised by the foundation of consortium blockchain and Internet of things (IoT). Consortium blockchain is regarded as the blockchain 3.0 to facilitate more industrial applications, except cryptocurrency, and the synergy of integrating a consortium blockchain and IoT is thus investigated. The corresponding layered architecture is proposed to structure the system deployment in the industry, in which the location-inventory-routing problem for pallet pooling is formulated. To demonstrate the values of this study, a case analysis to illustrate the human–computer interaction and pallet pooling operations is conducted. Overall, this study standardises the decentralised pallet management in the closed-loop mechanism, resulting in a constructive impact to sustainable development in the logistics industry