Urban Logistics

Management, Policy and Innovation in a Rapidly Changing Environment

Michael Browne, Sönke Behrends, Johan Woxenius, Genevieve Giuliano, José Holguin-Veras, Michael Browne, Sönke Behrends, Johan Woxenius, Genevieve Giuliano, José Holguin-Veras

• Publisher: Kogan Page
• Year: 2018
• ISBN:
  9780749478728
• Edition: 1
• Topic: Business
• Subtopic: Supply Chain Management
• Index: Business

Approximately 80 per cent of European and American citizens live in an urban environment. Due to their large populations and extensive commercial establishments, urban areas require large quantities of goods and services for commercial and domestic use. This results in increasing levels of demand for freight transport services. Freight transport in towns and cities is a major contributor to environmental impacts, particularly to local air pollution and noise. Urban Logistics addresses public policy makers, freight transport companies and receivers of supplies, providing them with the information and guidance to affect change in the logistics of the city. Urban Logistics is written by an outstanding team of international editors combining their expertise and using their research from leading business schools in Sweden and the US. There are also valuable contributions from academics and industry experts from companies and universities from all over the world. The book includes clear examples of initiatives that work and business case developments, as well as toolkits for policymakers and managers who are devising new initiatives. There is an in-depth examination of different aspects of urban logistics, such as retail logistics for cities, urban food supply chains, services and the special logistics requirements involved, construction, waste management and e-commerce and home delivery. There is also a focus on networks and partnerships and an analysis of innovation as a new constant.

PART ONE

Setting the scene

01

Introduction to urban logistics

MICHAEL BROWNE, SÖNKE BEHRENDS AND JOHAN WOXENIUS

Introduction

More than half the world’s population now lives in urban areas, with much higher levels observed in advanced economies. Metropolitan areas propel economic growth, act as sources, sinks and gateways in the global trade network, and drive technological, business and social innovations. The vitality of cities is critical to the success of national economies and in some political areas, the influence of mayors matches that of ministers at the national governance level. Consider that: the top 600 cities in the world produce about 60 per cent of the global Gross Domestic Product (Dobbs et al, 2011); and 80 per cent of the total cargo transported in the United States (US) has its origin or destination at one of the country’s top 100 metropolitan areas (Tomer and Kane, 2014). Without modern supply chains – the circulatory systems of metropolitan areas – urban and national economies would collapse. Yet, major challenges threaten the performance of supply chains and the quality of life in metropolitan areas, including the combined effects of climate change, rising urban congestion, the health impacts of pollution, the emergence of megaregions, the surge of e-commerce fulfilment deliveries, social concerns for temporarily employed staff and already high last mile delivery costs.

Efficient logistics are critical to sustaining both the quality of life and vitality of metropolitan areas. In developed countries, the freight-intensive sectors of the economy – where the production and consumption of freight is a central component of the activity (eg manufacturing, construction, accommodation and food) – represent about half of commercial establishments and employment. Service-intensive sectors – where the primary business function is one of service (eg finance, education) – represent the other half (Holguín-Veras et al, 2018). Both sectors need supplies brought in and shipments sent out, though in different amounts; the bulk of the freight and freight-trips are generated by the freight-intensive-sectors. In developing countries – which depend heavily on economic activities such as agriculture, mining, manufacturing – supply chain activity is even more important, as the freight-intensive sectors represent a significant part of the economy. Essentially, the performance of logistics directly impacts more than half the economy in metropolitan areas, and indirectly affects the rest (Holguín-Veras et al, 2018). Increasing the efficiency and sustainability of freight is crucial to both economic and environmental goals.

However, alongside these positive features are problems of environmental externalities. Urban freight is a substantial contributor to these problems accounting for 30 to 40 per cent of urban transport-related CO₂ emissions and nearly 50 per cent of particulate emissions. Urban freight activities also create problems for local communities (noise, community severance, impacts on safety) and are in competition for scarce infrastructure capacity. Yet efficient urban freight systems can be seen as vital to the wellbeing of urban areas as freight activity is a physical expression of the economy; failing to take account of the importance of freight flows can result in economic and commercial problems.

Challenging goals are being set in terms of future developments for urban freight. For example, the EU 2011 Transport White Paper established a specific urban goal related to freight transport stating the need for ‘a strategy for near-zero-emission urban logistics’ by 2030 (European Commission, 2011).

Public-sector agencies often focus commuting and other passenger transport flows over freight, despite the obvious importance of freight activity. They are generally uninformed about the role freight systems play in the economy, and the role that they could play in fostering urban freight sustainability assuming that the private sector supplies efficient logistics services. Agencies lack the models and tools to understand freight in its context and its place within complex economic, environmental and technological systems. Quite frequently, freight activity is perceived as something detrimental: something to be managed or curtailed. Advancing towards sustainable economies requires a holistic transformation in the ways in which supplies are produced, distributed and consumed. The chief goal is to maximize the beneficial economic effects associated with the production and consumption of goods, while minimizing, or eliminating, the negative impacts produced by the resulting freight ...