Online shopping and just-in-time delivery – or almost. We became familiarised with this scenario over the past few years, mainly because of the COVID-19 pandemic. The environmental impact of new retail strategies is not yet fully known, particularly regarding new business models and consumption habits, associated with e-commerce; this was the starting point of the e-LOG project, led by INESC TEC, which has now come to an end.
Over the last two years, a team of INESC TEC researchers has worked on the development of a methodology based on a mathematical model to compare the environmental impact of the different types of sales business models in the retail sector, considering products’ distribution. Now, the objective is to use this methodology to support the development of strategies, optimising logistics operations, which contribute to mitigate their environmental impact. In addition, the team also seeks to increase the available knowledge on how the quality of life in cities is affected by transportation policies.
“We started by identifying a set of regulations for the management of logistics operations in Portugal and Europe, focused essentially on the implementation of Sustainable Urban Logistics Plans and the definition of traffic restriction areas, e.g., low-emission zones”, explained Tânia Fontes. According to the researcher, the team analysed the business models of three large European companies in the last-mile cargo distribution area, to characterise the operations of parcel distribution companies. “The distribution of goods in the last mile, meaning the final stage of delivery of an order, can be particularly challenging in certain contexts, namely, in city centres – due to their configuration and the available infrastructures, among other factors,” she stated.
Therefore, one of the parts of the research work focused on the analysis of last-mile distribution in the city of Porto. “The study we carried out, which also included a series of interviews with experts, revealed some interesting conclusions: from the outset, the combined use of means for parcel deliveries is a solution that translates into less energy consumption and a reduction in carbon emissions, compared to the traditional solution based on the use of fossil fuel-powered vehicles. One of said solutions could be a mobile warehouse, i.e., a van or a truck, parked at a certain point in the city, combined with cargo bikes that distribute orders to customers from this mobile warehouse”.
Another factor explored by the team was the topography of the cities. “We evaluated the use of four delivery strategies – using fossil fuel-powered cars, electric vehicles and different-sized bicycles – in three scenarios with different slopes. We tried to measure the performance in terms of energy consumption, emission of polluting gases, and duration of operation, and realised that an electric vehicle will always be the best option for different types of terrain”. Still, Tânia Fontes pointed out that on less steep terrain, cargo bikes consume less energy, but the delivery time of packages is longer than using electric cars.
In the paper “Towards sustainable last-mile logistics: A decision-making model for complex urban contexts”, published in the journal Sustainable Cites and Society, the team presents the results of this research work – in particular a model that allows defining the form of parcel distribution in a historical city centre, taking into account different interests/profiles. “The 67 profiles we have defined show that the most appropriate solution varies depending on the position of decision-makers regarding environmental, economic and social factors. For example, the use of a cargo bike is perceived as beneficial when the focus is on environmental sustainability. On the other hand, if the decision maker does not have an environmental-prone profile, the best solution becomes the mobile warehouse”, explained Tânia Fontes, adding that, “interestingly enough, when a decision maker perceives Environmental, Economic and Social factors equally, the difference in the choice between the mobile warehouse and the cargo bike is minimal”. According to the researcher, the results also indicate that the solution based on the combination of different last-mile delivery methods shows great potential.
The e-LOG project also resulted in a solution, Log-ON, which aims to improve the management of the access of certain vehicles to certain areas, at specific periods. “Knowing that this order management involves different actors, with specific needs, and that there may be certain restrictions on the circulation of vehicles, we combine information from different sources, so that our system can provide real time data about the various types of restrictions or about the need to request access to certain areas of a historic centre, for example”, said Tânia Fontes.
The project was also the basis for the development of eight master’s degree theses, and two first-degree projects. Vasco Silva, one of the students involved in the project, will continue to work on this issue, focusing on collaborative issues, thanks to his PhD Thesis “A Hybrid Collaboration Model for Sustainable Last-Mile Logistics”.
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