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Agile Urban Logistics

Agile Urban Logistics. 02/04/14. Project origins. GLA application to TSB Future Cities programme Hypothesis: the use of data, technology and innovative, collaborative business models to better manage systems and services in a city

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Agile Urban Logistics

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  1. Agile Urban Logistics 02/04/14

  2. Project origins • GLA application to TSB Future Cities programme • Hypothesis: the use of data, technology and innovative, collaborative business models to better manage systems and services in a city • Expose and exploit flexibility in supply and demand to better utilise resources – space, time, energy, materials • Funding to support innovation in key sectors and to deliver against key city challenges • growth, congestion, pollution… • Secured funding for demonstrator projects that can lead to deployment at scale

  3. Vans and congestion • The key growing road use in London • 43% growth projected to 2030 • Growth of e-commerce is key driver • Rapid innovation in the home deliveries sector – especially in the use of data, IT and business model innovation • Can this be tailored towards Mayoral priorities to mitigate congestion and pollution?

  4. Objectives • Create fewer, fuller vehicles • Promote re-timing away from peak hours • Promote re-routing of journeys away from the most congested roads and pollution hot spots • Promote consolidation and a reduction in the number of pick-ups/drop-offs • Promote utilisation of low emission vehicles • Influence customer preferences to help achieve any or all of the above

  5. Sweet spot commercial advantage externalities market inefficiencies customer convenience

  6. Approach • Mayor’s office backing • Working with TfL Freight team • Timeframe: 2014-16 • Funding: £750k - £1.5m (+ matched investments) • Three stages – • Options appraisal, demonstrator design, buy-in • ‘On the ground’ demonstrator(s) • Evaluation

  7. Approach – stage 1 • Commissioned Arup to – • Assess the state of the market • Understand capabilities & interest • Appraise options • Co-design demonstrator • Secure buy-in / commitments • Develop implementation plan • Establish evaluation framework

  8. London Urban Logistics Overview Peter Wilkinson - TfL Dan Evanson - Arup

  9. Why have we focused on B2C Safety:Home Deliveries are typically executed by less regulated van fleets which already have a disproportionate (if less high profile than HGV) impact on TfL’s ‘Killed and Seriously Injured’ (KSI) statistics Congestion:Home delivery requires less efficient deliveries compared to traditional retail models and drives significantly more vehicles onto the roads, predominately in the peak hours Environment: The predominant fuel used is currently diesel which is high in nitrus oxide (NOx) and particulate matter (PM) outputs. This is enhanced by the high intensity multi-drop routes which result in very poor MPG performance, unwelcome driving behaviours such as engine idling and therefore even more pollutants The market is growing London is growing

  10. The National Picture 1st e-commerce delivery in 1994 2012 – 10% of retail spend (Royal Mail) 2018 – 21% of retail spend (British Retail Consortium) Trend towards • Time sensitive deliveries (Shutl, DPD) • On line SKU explosion (amazon have 1,191,000) • Increased connectivity / confidence • Mobile and tablets

  11. The National Picture “Our behaviour as consumers is driving this change in e-commerce and freight deliveries; everyone needs to be part of the solution.” (CILT, 2014). In 2013, there were over 4 million. In 2012, 400,000 tablets were given as Christmas gifts.

  12. The London Picture There are really multiple E-commerce supply chains and all are constantly and rapidly evolving. We’re seeking to better understand the picture in London, and then to help suggest the most effective solutions

  13. Deliveries analysis to Organisation X in Zone 1 – 5 days data equivalent In total 250 vehicles performed deliveries to Organisation X where 30 of them were purely for personal deliveries

  14. Arup Post Room Data – Amazon deliveries Taking a day in Jan as an example we can see that 5 different carriers deliver to our office. Parcel Force and City Sprint deliver just a few minutes apart! *that companies may deliver non-Amazon as well Amazon shipped circa 10% of the deliveries received when obvious business deliveries were discounted. Goods came via 18 different carriers

  15. Specific Concerns Building London centric knowledge Multiple attempted deliveries / returns Duplicate journeys Absence of collaboration (manufacturers, retailers and consumers) Road space All in order to: Tackle inherent inefficiencies within London’s transport system Address these inefficiencies and mitigate their impacts

  16. Consumer Quotes I'd rather large items be delivered to Home at a given, narrow, time slot. I would prefer something to be part of my daily route. Whether this is near home, near work, or near the principle train stations that I use on my daily commute Essentially convenience - can grocery shop after hours from living room. Also, shopping with small children is stressful so I prefer to order online I live in Middlesex so don't want to have to carry much home when commuting as will probably be standing Depends on the opening hours of the pick-up point: I need them to be open late in the evening Location, convenience and supporting local convenience store / newsagent "Tube/train station- generally experience poor customer service at these locations, so doubt they would be able to cope with parcel collections as well. If I can carry it easily and its not too valuable work is ok, otherwise I prefer near home. Convenience of linked trips (public transport node on route home / shop where I'd drive to do normal shopping) if I have to go to shops and carry the items home, the advantage of the delivery is lost

  17. Attendee Overview

  18. Discussion Based upon what you’ve heard: • What works well for ecommerce and home deliveries? • What doesn’t work well? • Are there any significant barriers to improve current operations? • What is your view of the characteristics of different product supply chains?

  19. Break

  20. A Recap of the Questions for Discussion Based upon what you’ve heard: • What works well for ecommerce and home deliveries? • What doesn’t work well? • Are there any significant barriers to improve current operations? • What is your view of the characteristics of different product supply chains?

  21. Potential Solutions for debate • • Examples solutions could be: Click & Collect: In tube/NR stations and other regularly used locations Penalty prices: charges put in place for deliveries into central London Lockerboxes: all couriers would be able to use them, not single branded Alternative modes: use of electric vehicles, delivery of goods by rail into major rail terminals Consolidation of deliveries: combine deliveries in different areas by postcode Out of hours delivery: if consumers prefer deliveries to be made at home, switch activity to times that better suit… People power: community / neighbourhood based solution

  22. Innovative Solutions Demonstrators Obstacles Viability

  23. Summary Objectives Progress Outputs from the session Next steps

  24. Peter Wilkinson: PeterWilkinson@tfl.gov.uk Dan Evanson: Dan.Evanson@arup.com

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