In 2016, 135 million parcels were delivered in the Netherlands. And that number is rising. In terms of the last mile, that creates the necessary challenges. But answers to those challenges are also gradually being found. Margeeth Pape of Thuiswinkel.org takes us through five advancing trends in the last mile at E-fulfiment & Logistics.
Pape first of all wants to nuance that e-commerce is the big culprit of all delivery vans in inner cities. Research by the Top Sector Logistics recently showed that only 3 per cent of all vans in inner cities are e-commerce related. "The big culprit of congestion in inner cities is construction traffic," Pape said. So how come e-commerce is often seen as the big culprit? "It is because we are very visible. We drive past homes, people see us. And we block their streets, of course."
The number of delivery vans in inner cities may not be too high, but e-commerce still creates challenges on the road. Due to narrow streets and limited loading and unloading spaces, delivery vans often block the streets. 80 per cent of Dutch consumers prefer to have their parcels delivered at home or at work instead of at a collection point. As a result, carriers cover many kilometres. Because carriers have limited cooperation, vans often drive around largely empty.
Yet there are also a lot of developments that can make inner-city logistics future-proof. Pape, logistics and sustainability adviser at Thuiswinkel.org, identifies five trends that may drastically change the last mile in the Netherlands.
1. Consumer controls
Consumers will be in control of the last mile. "This can already be seen in the numerous delivery options at check-out. In Belgium, Zalando is conducting a test with startup Parcify. In this, the parcel delivery company tracks real-time location of the consumer, then drives there and delivers the parcel." A big advantage of delivery in this way is that the first delivery attempt is always successful, whereas currently it often goes wrong. "We can also question whether online shopping and logistics will still be connected in the future. Possibly consumers will determine their own logistics through social delivery."
2. Sustainable logistics
"You notice that e-commerce is transforming. Companies are asking themselves how they can make their logistics as sustainable as possible." According to Pape, this is due to pressure from social parties such as NGOs and increasing consumer awareness towards sustainability. "In addition, there are of course the European agreements we have made around CO2 reduction. These state that we should be able to transport six times more with the same emissions. That requires a rethink of our current logistics processes."
Effective use of resources
By using available space effectively, considerable mileage can be saved. "This can be achieved by effective mobility, for example cooperation between logistics service providers, but also by effective use of space. Space is available in many inner cities and distribution centres. This can be arranged more flexibly and efficiently and there are initiatives that capitalise on this. Time can also be used more effectively. We are probably moving towards a future of 24-hour delivery."
4. Return logistics
Return logistics is also transforming. Due to WEEE (Waste Electrical and Electronic Equipment) legislation, online shops are now obliged to take back old electrics from consumers. "With some carriers, when receiving their parcel, consumers can give their old electrics directly to the delivery driver." Thuiswinkel.org also notes an increase in home delivery of parts and repair services. In addition, the number of sales between consumers (C2C) via Marktplaats, for example, is also on the rise.
5. New entrants
"There are numerous new entrants that can make the last mile more sustainable. Drones and delivery robots, but also startups like ViaTim, De Buuren and NokNok should make delivery more efficient. NokNok is a party that provides smart locks, allowing the delivery driver to access the house and drop a parcel behind the front door. That raises questions around security, but so does every innovation."
Editorial LogistiekProfs
