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City logistics

City logistics. Definition. City Logistics is an integrated approach for urban goods distribution based on the systems approach. It promotes innovative schemes that reduce the total cost (including economic, social and environmental) of goods movement within cities

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City logistics

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  1. City logistics

  2. Definition City Logistics is an integrated approach for urban goods distribution based on the systems approach. It promotes innovative schemes that reduce the total cost (including economic, social and environmental) of goods movement within cities OECD, (2003) Delivering the Goods, Challenges for the 21st Century, Paris.

  3. Vienna cargo-tram

  4. Structure of visions for city logistics Sustainability Mobility Liveability Global competitiveness Efficiency Environment friendliness Congestion alleviation Security Safety Energy conservation Labour force

  5. Efficiency problems Urban freight transport affect the economic prosperity and liveability of cities. But it is responsible for a range of negative social and environmental impacts. These are relatively well understood and include fossil fuel consumption, greenhouse gas emissions, air pollution, noise, visual intrusion, physical intimidation of pedestrians and cyclists, road safety and accidents, and road traffic congestion.

  6. The problems less understood • traffic flow/congestion: traffic levels, traffic incidents, inadequate road infrastructure, narrow street layouts and poor driver behaviour; • transport policy-related: neglect of freight transport issues in town and traffic planning, and other policy issues such as vehicle access restrictions based on time and/or size/weight of vehicle and width of bus lanes; • loading/unloading: regulations, fines, lack of unloading space and handling problems; • customer/receiver: queuing to make deliveries and collections, difficulty in finding the receiver, and collection and delivery times requested by customers and receivers.

  7. Two actors of changes Public policy makers (especially urban authorities) who make changes to urban freight transport operations through the introduction of policy measures that force or encourage companies to alter their behaviour. Freight transport companies that implement initiatives that reduce the impact of their freight operations because they derive some internal benefit from this change in behaviour.

  8. key issues In order to reach efficient and sustainable approaches: • Vehicles making the deliveries should impose as few social and environmental impacts as possible. • Planners (from urban, city, municipal or local transport authorities), freight transport companies and other businesses must cooperate to ensure that these objectives are met. • Urban planners may need to influence or control the movement of goods vehicles. • Transport companies must optimize operational efficiency to reduce traffic congestion and environmental impact.

  9. Policy measures The types depend on factors such as: • the economic, social and environmental objectives of the urban authority; • the level of freight transport and other road traffic; • the size, density and layout of the urban area.

  10. Focus of initiatives • Efficiency of operations • greater use of environmentally friendly modes • Reductions in the demand for freight transport (through reorganization of land-use patterns or supply chain organization) • regulations to influence urban transport behaviour and patterns through the implementation of traffic and transport policies, • improvements in technological applications including vehicles, handling equipment and freight facilities.

  11. The most prominent initiatives • Environmental zones to encourage the use of less polluting engine technologies. • Access regulations • Urban consolidation centres (UCC) to reduce the number of goods vehicles making deliveries. • Use of home delivery locker banks and collection points • Use of non-road modes • Lorry-routeing schemes to provide suitable road networks and routes • Road pricing systems

  12. Companies Stores Companies Stores a a A A b b B B c c C C UCC d d D D e E e E Schematic representation of deliveries in the city with and without a UCC. Note that here the returns trips of the trucks are not taken into account and trucks are assumed to make single deliveries except for the UCC truck.

  13. UCC services • Storage • Transport • Pre-retail

  14. Product storage It provides a fully managed warehouse solution for clients who require a managed storage capacity without the cost of operating their own warehouse. In addition to receiving and storing both palletised and non-palletised stock, it offers the facility to re and d-stuff goods if they are not already palletised inside the container. Tailored stock control and reporting using computerised systems ensures accurate reports throughout this process. In addition it offers a racked and non-racked storage solution for pallets or Hanging Garments. Plus order picking, packing and delivery (mail order/Internet)

  15. Fulfilment house It provides: • Loose leaf leaflet inserts into a variety of products: magazines, newspapers and periodicals. • Attaching promotional items (glue spotting, stapling)onto individual products. • Re-wrapping for distribution onto secure pallets. • Storage bays to load and unload cargo. • Make-up of orders; de-stuffing and re-stuffing. • Re-packing and re-labelling, re-quality controlling imported general merchandise.

  16. UCC costs The costs can include: • capital and operating costs of UCCs; • an additional handling stage in the supply chain; • security, liability and customer service issues associated with additional companies handling goods.

  17. Improved sales/ profitability Storage More sales space available in-store Less vehicle trips/km Reduced traffic and environmental impact Greater vehicle utilization Transport Fewer vehicles needed Scope for non-road modes Less unloading time Improved customer satisfaction/ shopping experience Increases in handling costs Pre-retail More shop staff time available Outcomes and economic, social andenvironmental effects

  18. UCC services vs Operational benefits Opportunity to redesign store Opportunity to redesign store Storage Greater product range (breadth) Greater number of products (depth) Remove stock, waste, defects and returns from shop Improved consolidation –reduced time delivering at shops Transport Use of low-impact vehicles Improved waste handling Availability of products Fewer stock outs Improved returns service Pre-retail Less unpacking, display and pricing work Less waste handling and returns processing in shop More time to assist customers More time for staff training Less queuing at checkouts

  19. Public and private joint working Public decision making has required more efforts to coordinate these initiatives to ensure that they function efficiently, while at the same time minimizing the social and environmental impacts. In an attempt to reach democratic decisions policy makers have been working closely with other stakeholders on a range of urban freight issues. Urban freight involves many different stakeholders (retailers, wholesalers, freight operators, warehousing companies, residents, shoppers, workers and policy makers).

  20. Benefits and Costs of a UCC Existence and extent of costs and benefits amongst involved parties will depend on the operational arrangements of the UCC. The involved parties are: • Supplier • Transport provider • Receivers • Local Authority • UCC operator • Developer (new retail sites only)

  21. Supplier and transport provider

  22. Receivers

  23. Local Authority and UCC operator

  24. Developer

  25. Co-opetition in city logistics Co-opetition occurs when companies work together for parts of their business where they do not believe they have competitive advantage and where they believe they can share common costs.  In city logistics co-opetition can work in sharing vehicles, warehouses & distribution centres to increase load factors & decrease dead running. All schemes require ITS for successful implementation.

  26. Collaborative Distribution Shared storage location(s). Networks restructured using advanced vehicle routing & scheduling systems. Distribution to outlets by areas & priority Savings in transport costs (20-30%). Significant reduction in environmental & social costs.

  27. Next Generation UCC Intelligent Freight Systems using ITS Necessary to support Public Logistics UCC: • In-vehicle systems • Vehicle routing & scheduling systems • Auction and matching systems (portals) • Information Systems (eg. travel time & reliability) • Track &Trace Systems • Monitoring (eg. AVL) • e-Commerce

  28. Common information platform in PPP Traffic management Traffic management server server Decision making VICS Decision making VICS system system Real time traffic information Freight information Freight carriers A Freight carriers C Freight carriers B Freight management Freight management Freight management Server Server Server Decision making Decision making Decision making system system system PPP Public Private Partnership VICS Vehicle Information and Communication System 

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