A new evaluation approach to City Logistics projects A business-oriented Agent-Based model

Supplying goods to urban areas is a fundamental economic process because the majority of the world population lives and buys goods in cities. Freight distribu-tion activities in urban areas account for roughly 40% of supply chain costs and 60% of supply chain CO2 emissions. Moreover, surging e-commerce trends shape the urban freight transportation arena, increasing its complexity and the pressure on private actors. Thus, urban freight transportation activities generate negative externalities, but are relevant to a great amount of enterprises that compose the economic and social fabric. In this context, City Logistics (CL) emerged as a comprehensive concept driv-ing solutions to reduce negative externalities while interfering as little as possible with private actors’ operations and profitability. CL scholars and practitioners are facing several issues arising from e-commerce and population growth. In particu-lar, logistics service providers are called to optimize their operations in order to increase the speed of delivery. At the same time however, CL is dealing with technological and systemic innovation that might enhance optimization capabili-ties and network usage. As a response to the changing environment and within the mandate of CL paradigm, local authorities and private actors have invested on a wide range of initiatives. The variety of approaches adopted and stakeholders involved, at multiple governmental levels, are responsible for a mixed landscape of CL experiences across different regional contexts. Furthermore, despite their relatively large dif-fusion, CL initiatives often fail in taking up after a first pilot implementation, unable to reach paying customers after public subsidies are removed. Therefore, un-derstanding the major business aspects that underline the reasons for adopting CL initiative by private stakeholders is key to a more long-term vision on CL implementation and assessment. Previous research has given little attention to understanding the commercial and business aspects of CL projects before actually designing and implementing them, even though CL scholars have ascertained that evaluation methodologies need to encompass all aspects relevant issues for CL schemes. Several methodol-ogies have been proposed since the inception of CL with the evaluation objective in mind. However, they fall short in different ways. For instance, qualitative methods adopt a short-term feasibility approach to CL evaluation, and the subjec-tive evaluation of quantitative outcomes may potentially influence the ranking between different alternatives. On the other hand, modelling techniques need high quality data to simulate traffic flows and consumers’ demand, but fail short to ad-dress other important decision-making factors related to the business model of stakeholders. Research opportunities therefore lie in mixing the advantages of quantitative and qualitative approaches to include stakeholders in quantitative ex-ante evaluation of CL projects. My thesis will try to answer to the following research questions. -Research question 1: What is the state-of-art of CL projects modelling and evaluation meth-ods/frameworks? -Research question 2: How can an integrated qualitative-quantitative framework for CL evaluation be conceived? -Research question 3: How can a new evaluation framework effectively integrate a business-oriented view of CL systems? The first objective of this thesis is to highlight advantages and disadvantages of assessment methodologies with respect to the integration of the business mo-tives of CL actors into non-project specific, a long-term view on CL project as-sessment. The second objective of this work is to define a theoretical framework for designing and assessing CL projects business models on a qualitative level. To this end, CL systems are here compared to business ecosystems, which are a network of interrelated business entities. In the framework, CL actors can play multi-ple roles, and their decisions are based on their objectives, information, and con-straints. The business model of a business entity within the system is the set of the roles it plays, the business and operative relationships formed with other business entities, and the monetary and intangible values exchanged through these relationships. New quantitative methods are needed for a more sound representation of the patterns emerging from the different behaviours of agents. Hence, the third objective is to build an agent-model proposal for modelling, simulating and ultimately evaluating CL projects business model. In agent-based modelling, each actor can be modelled as an agent possessing objectives and decision-making attributes. Agents act autonomously and their interactions are defined formally by means of ontologies and model narratives built as a representation of real-life system. Finally, an experiment design will be constructed to provide insights on an ex-isting case study related to the introduction of automated parcel locker station. Two CL ecosystem configurations are modelled together in order to simulate the decision to adopt a new logistics service by potential customers. Then, the effect of the decision regarding the allocation of marketing and R&D budget is also evaluated. From the simulation runs, it becomes clear that the outcome for each ecosystem configuration in terms of profits and customers is strongly influenced by the decisions taken within the other configuration. In summary, this thesis provides a first modelling and simulation tool for as-sessing the implications of business model decisions within specific CL business ecosystems. For instance, the strategic decision to adopt a service proposed by a CL company is associated with the evaluation of intangible benefits offered by such company. Moreover, the modelling tool highlights the links between such strategic decisions and the operative ones, such as vehicle routing or inventory policies. Therefore, it proves that qualitative approaches can be used to integrate all stakeholders, while quantitative modelling provide a simulation environment to test long-term effects of different scenarios. However, this study has some limita-tions. For instance, more strategic decisions should be included in the model to investigate endogeneity stemming from agents’ actions. Furthermore, the implica-tion on the business ecosystem of the value of information are not assessed. Finally, the scope of the computational experiment should be widened to include a per-formance evaluation phase, which would then lead to more decision-making by the agents. Further research is aimed at using the tools developed in the thesis to understand how to drive retailers to change their attitude towards CL by under-standing and designing value proposition that might appeal to them. Moreover, the implications of the entrance of new CL players one traditional ones’ business model need to be explored more deeply from the strategic perspective of power relations

A review of methodologies to assess urban freight initiatives

Only few urban freight initiatives are expanding their scale of application beyond the initial pilot experimentation. To overcome existing barriers to larger scale optimization of urban freight distribution activities, it is necessary to develop and test proper methodologies that assess all aspects relevant to this context. In this paper we propose a classification of existing assessment methodologies, in order to underline their advantages and disadvantages, along with possible research gaps and future trends. For this review we adopt a framework constructed on two dimensions of an assessment methodology, namely method used and scope. As for the method used, methodologies can be either quantitative, if they aim at simulating or evaluating the outcomes in terms of vehicle flows, pollutant emissions, or monetary outcomes, or qualitative, if they are directed towards elucidating the subjective assessment of stakeholders. Concerning the scope, existing methodologies can cover three main aspects of urban freight distribution systems, such as measures to be assessed, stakeholders and impact areas

City logistics policy evaluation with system dynamics

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Home delivery services: innovations and emerging needs

The increasing amount of small-sized shipments and their frequency variation, due to the growth of e-commerce, pose a great challenge to logistics service providers. At the same time, new technologies and innovations are being developed with the aim of increasing the efficiency of logistics service provider, as much as foster the creation of new enterprises and business models in the home delivery sector. The aim of this paper is to provide an exploratory analysis of the fit between existing home delivery innovative services, requirements, and issues that users might have. To do so, we review the main features of innovative services and we compare them with the findings from an online survey. For each service, we identify the value propositions, and the issues the service aims to address. In particular, four innovative services are reviewed. Through the online survey, we identify user’s habits, requirements and perceptions regarding the effectiveness and features of the innovative services

System Dynamics Group Modeling: An Educational Perspective

An application of the SD group model-building methodology in a higher post-graduate course is presented with the purpose of illustrating its value for improving the learning process. The measurements from this experience are collected via a survey and interviews and results are presented to determine if the SD group model-building experience enables transformational, instructive and communicative learning. The experience provides a testament for some important characteristics of the SD group model methodology, namely: its ability to promote changes in perspectives of the course participants via reflection, to substantiate participants’ growth in understanding the key principles of investigation and to facilitate interaction between participants

Value Proposition for Sustainable Last-Mile Delivery. A Retailer Perspective

The sustainability of last-mile (LM) freight delivery is crucial to add value to the stakeholders in the distribution chain. However, its achievement is often hindered by a poor consideration of their needs by both literature and practice. The goal of this paper is to address the point of view of local retailers by exploring their needs about innovative LM delivery services and identifying sustainable value propositions (VP). A survey was submitted to retailers operating in the limited traffic zone of Torino (Italy). The survey data were analyzed by a factor analysis using a principal component analysis (PCA) to extract the factors. A correlation analysis was also conducted between the needs and selected contextual variables. The results show that retailers accept higher costs for more reliable deliveries and stock reduction. Retailers also correlate punctuality and flexibility because flexible and on-time deliveries allow for better inventory management, higher control, and, in turn, improved customer service level. This work is one of the first research attempts to quantify local retailers’ LM delivery needs and provides guidelines about how to design value-added logistics services. Moreover, from a practical point of view, the analysis shows the main VP that managers and practitioners should consider in the development of LM initiatives

Digital Dashboards for Smart City Governance: a Case Project to Develop an Urban Safety Indicator Model

This paper illustrates a case project to design a digital dashboard for governing the urban safety of an Italian city and proposes a methodology for the definition of a set of safety measurement indi- cators. Results show that the method is easy to be used to identify the most crucial areas of the city, in several domains of application that have been identified. The study can substantially support policy makers in the development of their strategies and in the measurement of the effectiveness of their decisions

Assessing the Diffusion of a City Logistics System Based on Low Emission Vehicles

City logistics (CL) has recently emerged as a comprehensive and coordinated approach to reduce the negative impacts of last mile logistics, making urban freight distribution more sustainable from both an economic and an environmental point of view. Assessing the viability of CL initiatives is necessary to comprehend the relevant aspects that can support their adoption by private stakeholders. This work focuses on a new CL system relying on low emission vans for a large city in Northern Italy. A System Dynamics simulation model has been developed in order to assess the potential diffusion of the system at issue and understand the main factors that either stimulate or hinder it. Behavioral, economic, and environmental issues that characterize urban freight distribution are taken into account. A sensitivity analysis has been performed to test the robustness of the model and to predict the CL system behavior when its underlying parameters change. The outcomes show that the new system is feasible and allow suggesting some policies to encourage its adoption

A Systematic Literature Review on Innovative Technologies Adopted in Logistics Management

Many innovative technologies have been successfully adopted in logistics and supply chain management processes to increase efficiency, reduce costs or enhance communication. In recent years, considerable attention from both practitioners and academics has been focused on evaluating the impacts of innovative technologies adoption. However, the current body of literature on technology adoption, implementation and evaluation in logistics is quite fragmented; thus, an updated and structured overview of the scientific literature in this field might be useful. To this end, this work presents a systematic literature review (SLR) that aims to increase the understanding of the trend toward new technologies in logistics and identify the main research trends and gaps. The principal research trends that emerged from the SLR involve the technologies, their evolution over time and their relationships with the research methodologies. The main literature gaps concern integration and communication, technology-adoption processes and differences between inbound and outbound logistics

The Smart Home Services Diffusion Process: A System Dynamics Model

The application of smart technologies for domestic environment has been around for a while. But the market diffusion of such products and services has not seen yet a significant growth. This paper seeks to provide an overview of the most important factors that influence the diffusion process of smart home services via literature and a case study. These factors compose a System Dynamics model showing the diffusion dynamics of three main smart home services (Heating, Monitoring, Assisted Living)