Last mile delivery is already a major challenge for logistics providers across the world, especially in major urban locations. A growing consciousness amongst consumers of sustainability in current last mile practices is exacerbating the challenges, as is the introduction of national and international environmental policy. In the UK, central government policy has a stated target of reducing emissions to net zero by 2050, which will require major change in operating and business models if logistics providers are to meet them.
It has been increasingly acknowledged over the last few years that current last mile operations are unsustainable and that consumer expectations have risen to levels that are unrealistic in the long-term. But while retailers, logistics service providers, governments, regulatory bodies and consumers all have their own vested interests and their own ideas of how to address this issue, in reality there needs to be a collaborative, united approach to achieve the targets.
No single approach is likely to meet all the challenges, but a consistent framework on a national and regional level from government and regulatory bodies will be key. London, for example, has multiple emission zones which is confusing and frustrating for providers, and enforced on a local level. Moreover, there is the further concern that if policies change regularly changing, private companies will be reluctant to invest in new technologies such as electric vehicles (EVs). For example, in 2008 TNT invested in electric vehicles which after two years became redundant because they no longer met updated policy requirements. Any policies created need to be government created long-term solutions, as frequent policy changes will hinder progress towards the end goal.
Another solution may lie in technology. EVs hold huge potential, but battery technologically is not yet advanced enough to meet requirements for last mile operations. Currently batteries do not have the required lifespan to enable long-distance or stop-start driving which causes the batteries drain quickly. Special training is also required for those driving EVs, this will incur costs initially. At the moment there is a risk that companies will not invest until there is appropriate framework and infrastructure implemented.
However, many companies are working towards developing green and convenient customer driven solutions. Gnewt Cargo in London has trialled a porter service to deliver last-mile parcels and cut down the number of vans on London roads. A future solution would be to further develop autonomous, electric mobile lockers to enable delivery time specifically chosen by the consumer. This would reduce congestion and also aid in tackling the problem of repeat deliveries, cutting the carbon footprint of parcels.
These solutions are redundant if consumer expectations remain steadfast. The consumer remains at the forefront of the retailer and provider operations. Massive volume growth over the last decade has put increasing pressure on providers to create sustainable models of last mile delivery, especially in cities. But, with providers already operating on razor thin margins, consumer expectations for free delivery, unless both retailers and consumers change their behaviour the last mile delivery system won’t be able to adapt to become as sustainable as it could be.
Logistics providers are in an unenviable position in having to offer value to retailers and consumers while also creating last mile services that produces zero emissions. The industry is not solely responsible for achieving the target of net zero emissions by 2050 however, it should be noted that van mileage has increased by 67% over the past 20 years due to business models and consumer behaviours. In order to meet net zero emission targets all parties will have a role to play in the creation of new sustainable models. This could be through new technologies, via government legislation or by consumers and retailers altering their expectations and accept that services will change.
Source: Transport Intelligence, July 2, 2019
Authors: Beth Poole & Holly Stewart
