Last-mile delivery in favelas: an explanatory study with Brazilian Companies

Abstract

In urban logistics, the last-mile delivery from warehouse to the consumer's home has become more and more challenging with the continuous growth of urbanization, particularly in developing countries when addressing the logistical difficulties of distributing products in low-income population. This work presents an approach how companies distribute products within brazilian Favelas. Delivering products in these scenarios are not an easy task, high concentration of households without formal urbanization imposes hurdles to find and access to specific location added to the high number of cargo stolen, leads to lot of obstacles in this last mile operations. The company’s strategies are found by matching product type with Favela type in quadrants in the Conditions Decision Matrix. The results showed an emergent proposed model from data based on theory that helps to understand the last-mile delivery in Favelas having the risk as the moderator factor of logistics performance. The paper highlights that companies do not change information, practices neither synergies between their distribution models as well as do not relate to communities in, for example, social actions, in the vast majority of cases. It concludes by mapping the practical strategies applicable for the companies in the last-mil

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