Analysis Of The Related Last Mile Problem

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Customer: the customer is the delivery task’s key initiators and stakeholders. Customer satisfaction can be used for measuring the required delivery service’s range, quality and performance. Low value goods have higher affinity than medium and high value products to service characteristics, such as frequency, time window and Delivery box usage but they do not need any return option or delivery with signature. In case of medium and high value products have opposite needs.

Fig. Customer interests

Institutional Stakeholders: it is an administrative body representing community’s interests. Its task is to improve the environment and social live within responsibility area. Its …show more content…

Interests of the Institutional Stakeholder

The Related Last Mile problems

The related last mile problems list is collated by studying academic literature and contacts with last mile service providers.

Due to specific needs, the last mile is considered as the most expensive part of the logistics / supply chain. The last-mile part accounts for 13% up to 75% of the total supply chain costs depending on several factors/characteristics. There are many inefficiencies in the last mile and the poor environmental performance related to these high costs.

The Last Mile‘s major problems are due to the ‘attended home deliveries’ in the following ways.
i) In case of without any specific delivery window, a ‘not-at-home deliveries’ high frequency will take place and the courier will have to visit two or three times.

ii) In the case of specific delivery window, routing process becomes very inefficient. Intuitively it can be said that, narrower time windows make delivery route more efficient.
The following simulation demonstrates the differences between a delivery round without (figure 5) and with (figure 6) delivery/time windows.

Fig 5. Simulation of a delivery round WITHOUT time …show more content…

Delivery window length’s effect MILES PER CUSTOMER

(Source: Boyer, Prud’Homme & Chung (2009))

It clearly shows descending relationship between miles per customer and window length which results, Miles per customer cost decrease with time-indefinite deliveries’ number increase.

By doing similar study, Kämäräinen (2001), calculated 42% cost difference when comparing reception boxes without time windows and delivery methods with time windows, using data from a Finnish grocery shop delivering a parcel with time windows was calculated to represent a cost of €2,1 per parcel, while this was only €1,2 when using reception boxes. This was due to the aforementioned reasons, such as the higher number of kilometers driven per parcel.

Security & type of delivery/reception

The delivery characteristic’s type & security is important due to dependency on the level of reception’s security needed. Some deliveries are done by handing the goods over to another person, while other deliveries are done by leaving these goods in a box at the consignee/consumer’s front

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