Agile Urban Logistics
02/04/14
Freight & Fleet Programmes
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Freight & Fleet Programmes
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P RO J E C T O R I G I N S
• GLA application to TSB Future Cities programme
• Hypothesis: the use of data, technolog y 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, energ y, 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
VA N S A N D C O N G E S T I O N
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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?
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/dropoffs
• Promote utilisation of low emission vehicles
• Influence customer preferences to help achieve any or all of the above
SWEET SPOT
externalities
market inefficiencies
commercial advantage
customer convenience
A P P R O AC H
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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
A P P R O AC H – S TAG E 1
• Commissioned Arup to –
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Assess the state of the market
Understand capabilities & interest
Appraise options
Co-design demonstrator
Secure buy-in / commitments
Develop implementation plan
Establish evaluation framework
London Urban Logistics Overview
Peter Wilkinson - TfL
Dan Evanson - Arup
Freight & Fleet Programmes
Why
have we focused on B2C
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• 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
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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
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The
National Picture
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• 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
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The
National Picture
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“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.
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The
London Picture
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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
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Deliveries analysis to Organisation X in Zone
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1 – 5 days data equivalent
Business vs. Personal Deliveries
to Organisation X
Delivery Vehicle Type Mix
Business and Personal to
Organisation X
17%
Personal
Business
83%
140
125
120
100
70
80
60
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Total
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2
3
0
Car
Hand Large Van Motorbike Pushbike Small Van
Delivery
In total 250 vehicles performed deliveries to
Organisation X where 30 of them were purely
for personal deliveries
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Arup
Post Room Data – Amazon deliveries
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Original date of delivery Delivery company
14/01/2013 City Sprint
DPD
Hermes
Yodel
15/01/2013 City Sprint
Parcel Force
Yodel
16/01/2013 City Sprint
Hermes
17/01/2013 City Sprint
DPD
Parcel Force
Royal Mail (Special)
Yodel
Time booked
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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
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Amazon shipped circa 10% of the
deliveries received when obvious
business deliveries were discounted.
Goods came via 18 different carriers
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Specific
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• Building London centric knowledge
• Multiple attempted deliveries / returns
• Duplicate journeys
• Absence of collaboration (manufacturers, retailers and consumers)
• Road space
All in order to:
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Tackle inherent inefficiencies within London’s transport system
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Address these inefficiencies and mitigate their impacts
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Consumer
Quotes
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Essentially convenience - can
grocery shop after hours from
living room. Also, shopping with
small children is stressful so I
prefer to order online
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
I'd rather large items
be delivered to Home
at a given, narrow,
time slot.
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
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Attendee
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Discussion
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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?
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Break
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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?
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Potential
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• 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…
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People power: community /
neighbourhood based solution
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Innovative
Solutions
• Demonstrators
• Obstacles
• Viability
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Summary
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• Objectives
• Progress
• Outputs from the session
• Next steps
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Thank
Questions?
For further information contact:
Peter Wilkinson: [email protected]
Dan Evanson: [email protected]
Email: [email protected]
Web: www.tfl.gov.uk
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