HOME DELIVERY: IMPACT AND OPPORTUNITIES FOR CITY LOGISTICS

Cycle Logistics Conference16 October 2015San Sebastian

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Susanne BalmProject leader E-mobility & City LogisticsAmsterdam University of Applied Sciences

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AMSTERDAM UNIVERSITY OF APPLIED SCIENCES

• Based in Amsterdam, The Netherlands• 50,000 students and 3,600 employees• 80 bachelor and master programmes

• Practical orientated research addressing real-life challenges• Close collaboration with both academics and professionals • A joint Executive Board with the University of Amsterdam

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CONTENT OF PRESENTATION

1. Zero emission

slow mobility

ambitions

2. Home delivery:

increasing markets

The need for different city logistics, considering changes in urban:

• Design• Challenges• Preferences

Market opportunities for cycle logistics: • Food• Elderly • C2C• Construction

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WHAT IS WRONG IN THIS PICTURE?

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WALKABLE CITIES

Florionapolis, Brazil (Photo credit: Maremagnum/Photodisc/Getty Images)

(Portland State University, 2012)

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OTHER ISSUES

Noise Vibrations

CongestionAir pollution

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AIR POLLUTION

Share of trips Contribution to NOx

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NOISE POLLUTION: “A MODERN PLAGUE”

Elevated noise levels can cause:• Hypertension• Sleep disturbance• Stress• Increased workplace accident rates• Aggression and other anti-social behaviors

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PREFERRED SITUATION

Slow mobility and recreational activities instead of car dominance

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EXPERIMENTS IN AMSTERDAM“Autovrij” = car free

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AND OTHER CITIES

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Saturday 3 October 2015 

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BUT AT THE SAME TIME…

• Consumers and businesses order more and more online • Demand on-time and same-day delivery• High numer of failed deliveries• High number of retour deliveries

EUROPEAN B2C E-COMMERCE TURNOVERTOP 12 IN TERMS OF B2C E-COMMERCE GROWHT RATE

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ENVIRONMENTAL IMPACT DEPENDS ON LOGISTICS CONCEPTSource: Ernst & Young (2015)

CO2 emissons for the delivery of 1 parcel

The combination of a drop-off point and bike delivery has

lowest expected impact for the environment

A

B

CA B C

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GREAT POTENTIAL FOR CYCLE LOGISTICS

In particular:• As a service for suppliers, retailers and receivers

that are (or aim to be) socially responsble• In areas that restrict or limit automobile access

But challenging as well:• How to organize financially feasible drop-off points?• Which flows are large, growing and most suitable?

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RISE AND FALL AND EXPANSION OF INITIATIVES

Drop-off point on water

Bubble Post

Stadslogistiek DelftBentobox Berlin

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WHAT IS LACKING?

Insight in the share of freight trips and their characteristics, like:

• What do they deliver? • Where do they come from?• Is transport at own account or carried out by a 3rd party? • Which markets are growing?• Which are suitable for cycle logistics?

This should be the start of new logistics (cycle) concepts

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Freight traffic countings Amsterdam

LOGISTICS RESEARCH SHOWS POTENTIAL

80 - 85% are vans

Distance % of deliveries

≤ 30 km 54 – 56%

≤ 10 km 32 – 45%

Research Facility Services (2015)

(2015)

Souce: CycleLogistics, 2014

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Oppurtunities for cycle logistics

GROWTH MARKETS IN CITY LOGISTICS HOME DELIVERY

Elderly

C2C

Food

Construction

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ELDERLY PEOPLE

Number of citizens in Amsterdam of ≥ 65 :

Absolute Percentage

2014 95.289 11,7%

2035 154.907 17,2%

Source: AUAS (2015)

• Ageing population, also in cities• Elderly people (need to) live at home longer• Older generations are getting more familiar with internet• Challenge: different requirements and preferences

By 2025 more than 20% of Europeans will be 65 or over

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• Food delivery is one of the largest flows in cities

• Home food delivery is an increasing market• Local for local • Low risk of “not at home”• Challenge: cooling / heating

FOOD

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C2C (CONSUMER TO CONSUMER)

• Inner city transport between consumers• Challenge: willingness to pay

Peerby members in my neighborhood

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CONSTRUCTION

• Great share in freight traffic • Increasing amount of inner city construction / renovation work• Little space for inventory and parking on site • On-time delivery • Challenge: cooperation with drop-off or consolidation point and

complementary transport

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CONCLUDING REMARKS

• Cycle logistics services should be tailored according to the market segment: • Receivers preferences • The logistics concept

• Cycle logistics solutions should not be more expensive than the current situation. Otherwise it will be very difficult to change.

• Consistent stimulating local policies are needed (not just experiments)

Susanne Balms.h.balm@hva.nl

Project leader E-mobility & City LogisticsAmsterdam University of Applied Sciences

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RESEARCH PROGRAM URBAN TECHNOLOGY Technologies for a sustainable, liveable and connected city

Smart Mobility & Logistics

Smart Urban Design

Smart Energy Systems

Circular Design and Smart Production

Urban analytics

Business Models

Susanne Balms.h.balm@hva.nl

Project leader E-mobility & City LogisticsAmsterdam University of Applied Sciences