'Consolidation packages is not worth it'

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Editorial
07 August 2019
1 min

Consolidation of parcels in urban areas is often cited as a solution against traffic congestion. However, the traffic reduction and cost savings generated by bundling are disappointing in practice, a new German study shows.

BIEK, the German parcel logistics association, conducted quantitative research on consolidated parcel delivery in the cities of Nuremberg and Munich. The conclusion: bundling parcels is not worthwhile.

Positive effects hardly noticeable

Because bundling parcels from companies requires additional transport movements to warehouses. As a result, the positive traffic effects are hardly noticeable, the researchers argue. The number of delivery vehicles would drop by 10 per cent. Moreover, the extra costs incurred by participating companies would not be covered due to a lack of productivity gains.

Alternative solutions

BIEK argues that a better result can be achieved with alternative solutions. Micro-depots, cargo bikes, multi-vendor parcel points, route optimisation and better coordination with recipients would do reduce transport movements. "These measures and concepts guarantee efficient delivery," said BIEK chairman Marten Bosselmann. "In contrast, a regulated approach, such as consolidated delivery, involves considerable administrative overhead."