Urban logistics activities are expected to grow by 8% a year in Europe through to 2030. Deliveries of goods already account for 20% of all traffic and for 30% of pollution in our cities, and flows are continuing to increase. As our society comes to demand ever more immediacy, deliveries in urban areas present a major and increasingly complex challenge for logistics actors: while some consumers prefer more eco-friendly deliveries, others wish to support their local shops, deliveries in urban areas contribute to traffic jams, pollution and noise disturbance, and the COVID-19 pandemic has given a boost to online shopping. Solutions to the economic and environmental challenges of urban logistics include investments in new technologies, such as artificial intelligence or blockchain, enhanced collaboration between the various actors in the ecosystem, private and public alike, and reflection on the organization of logistics facilities.   To address this topic, Professor Olivier Badot, Scientific Director of the Chair and Full Professor at ESCP and Elisabeth Denner, President of the Chair and Partner at BearingPoint will give the word to: - Professor Joe Miemczyk, ESCP - Laura Morroll, BearingPoint - Richard Walters, BearingPoint - London City representative - Executive at Amazon.

1. Urban logistics 4.0
To address this topic, Professor Olivier Badot, Scientific
Director of the Chair and Full Professor at ESCP
and Elisabeth Denner, President of the Chair and Partner at
BearingPoint will give the word to:
- Professor Joe Miemczyk, ESCP
- Laura Morroll, BearingPoint
- Richard Walters, BearingPoint
- Tony Mannix, Clipper Logistics

2. Urban Logistics 4.0
Sustainability, technology and collaboration
Dr Joe Miemczyk, Professor of Supply Chain Management
ESCP Business School, London campus
3rd March 2021

3. Content
• Sustainability Challenges in Urban Logistics
• The role of technology: Logistics 4.0
• Collaboration approaches: Consolidation,
mutualisation, pooling

4. What is urban logistics?
“urban logistics as that part of supply chain management that plans, implements, and controls the efficient, effective
forward and reverse flow and storage of goods, services, and related information between the point of origin and point of
consumption in order to meet customers’ requirements, as influenced by complex interactions among densely populated
social systems and associated infrastructure.” Rose et al., 2017
Or
City logistics - “infrastructure and space constraints associated with the time and place of deliveries, inefficient processes,
loading /unloading of goods, increased energy costs, as well as high CO2 emissions. The solution requires new, intelligent
(smart) technologies, such as e.g. Intelligent Traffic Control, modular containers, helping to improve vehicle capacity
utilization and alternative means of transport.” Kauf., 2016
An active research area despite it’s origins in Rome with Julius Caesar! ……..However
• Most research focused on urban distribution (retailers), much less on consumer trips, waste logistics,
restaurant/catering, construction
• Most focuses on carriers and local authorities actions, far less on shipper/receiver actions and needs
• Little focus on Africa, but also Asia and N America needed

5. Sustainability Challenges in Urban Logistics
Source: The Guardian, 2020
• Air pollution (also land, water, noise)
• Greenhouse gas emissions
• Safety, accidents
• Worker rights
• Impacted by new trends: online
sales, returns, sharing platforms

6. The role of technology: Logistics 4.0
• Logistics 4.0 is the logistical system that enables the
sustainable satisfaction of individualized customer demands
without an increase in costs and supports this development
in industry and trade using digital technologies (Winklelhaus
& Grosse, 2020)
• Logistics 4.0 benefits, (Strandhagen et al. 2017)
• Real time Big Data analytics, for example for optimized
routing
• Reduced storage requirement due to new
manufacturing techniques
• Autonomous robots with tracking and decision systems
leading to optimized inventory control
• Information exchange in real time avoiding e.g.
bullwhip effects
• No information disruption due to smart items
Ten technology trends accelerated by
Covid 19 (Xiao and Fan, 2020)
1. Online shopping and robot deliveries
2. Digital and contactless payments
3. Working remotely
4. Distance learning
5. Telehealth
6. Online entertainment
7. Supply chain 4.0
8. 3D printing
9. Robotics and drones
10.5G and information and communications
technology
Positive (or negative) feedback mechanism?

7. The role of technology: Logistics 4.0, some research topics…
Introduce the combination of city logistics (collaborations and consolidation) and the
physical internet (PI) , using modular containers (pi containers), global
interconnected, open network, modelling suggests significant increase in efficiency and
reduction in environmental footprint of urban freight transport (Crainic et al., 2019)
Vehicle routing problems for Autonomous Unmanned Aerial/Ground
Vehicles (AUAV/AUGV) of last mile delivery (LMD), e.g Starship
Technologies, Dispatch, and Marble, modelling costs based on routing,
no. of compartments, delivery windows, order size/predicatability,
battery capacity etc. (Sonneberg et al., 2019)
Baum et al. (2019) identifies 39 automated micro-vehicles. Under test, but focus on food/grocery
delivery, post/parcel delivery, parts supply, delivery service for local shops, and mobile sales room
services. Classification dividing automated micro-vehicles by infrastructure (road, non-road), vehicle
(delivery robot, bicycle) and human role.

8. Collaboration approaches: Consolidation, mutualisation, pooling
City Logistics: Hub or no hub?
5 reasons Urban Consolidation Centres fail
1. They were developed on the basis of inaccurate
data about city logistics.
2. The proposed solutions were nothing the
customer wanted.
3. The city logistics solution by means of urban
distribution centres ended up being more
expensive for the shippers.
4. The revenue model for city logistics was not
sound.
5. The local political situation proved volatile
Should focus more on a distributed
network of electric vehicle providers,
smart city approach
(Walther Ploos van Amstel)
In crowd logistics, the delivery task is
outsourced by the employer to an
indefinite group of individuals through
the online platform, who then use their
underutilized vehicles to make timely
deliveries to customers’ locations,
(Huang et al., 2020)
Sharing economy approaches
capitalising on big data and
advancing distributed planning
systems

9. The rise of food delivery platforms
“platform providers utilise crowdsourced self-employed delivery drivers (DDs)
who use their own vehicles (e.g. cars, motorcycles or bicycles), creating new
logistics networks of people willing to service the demand”
“pressure on already congested kerbside infrastructure and is imposing new
transport and planning challenges on towns and cities”
Key issues
• Typically less than 3 miles radius, using motorcycles, bicycles, cars or
vans
• Heuristic algorithms are generally adopted for scheduling deliveries
(due to unpredictability of demand)
• DD worker rights, health and safety issues (50% having accidents or
vehicle damage, 60% not receiving training on risks)
• Consolidation of shared kitchens concentrating traffic flows
Source: Allen et al., 2021

10. The rise of food delivery platforms
Database of 40,941 meal deliveries made by 195 DDs by a platform provider over a three-month period in Greater London
• A meal delivered by car = 1300 times the distance travelled and 200 times the GHG
emissions of an articulated HGV (per tonne delivered)
• Need for policy makers to promote the use of electric modes in this sector, discourage the
use of fossil fuel-powered mopeds and cars
Meal
type
Method of
deriving meal
Vehicle
Type
Cooking
(kg CO2e
per meal)
Transport
(kg CO2e
per meal)
Cooking
plus
transport
(kg CO2e per
meal)
Vehicle km
travelled
per T del’d
Kerbside
parking
required at
delivery
point?
Pizza Meal delivery Car 0.15 0.72 0.87 4000 Yes
Moped 0.15 0.34 0.49 4000 Yes
Bicycle 0.15 0.06 0.21 4000 No
Personal shopping
trip, home cook
Car 0.15 0.04 0.19 200 No
Chick
-en
Meal delivery Car 0.31 0.72 1.02 4000 YesYes
Moped 0.31 0.34 0.65 4000 Yes
Bicycle 0.31 0.06 0.37 4000 No
Personal shopping
trip, home cook
Car 0.31 0.04 0.34 200 No
Source: Allen et al., 2021

11. Some open questions…
Will 2021 mark a radical change in urban consumption
habits (in which direction)?
Can the proliferation of technologies and standards be
brought to bear on urban problems and opportunities or is it
still the wild west?
Who will lead the charge: private or public sector?....and
who will orchestrate the balancing act between externalities

12. Urban Logistics 4.0
Prepared by Laura Morroll, Senior Manager, BearingPoint
3rd March, 2021
How may the Retail / Consumer perspective influence Urban 4.0?

13. 13
Ecommerce acceleration… all generations, all product groups
of e-commerce growth
in a year
(Google 2021)
INTENSE, VOLATILE &
UNPREDICTABLE DEMAND
BABY-BOOMERS & GEN X,
THE BIGGEST ONLINE
SHIFT
to form a new habit
(Google 2021)
« STICKINESS » CONCEPT
will keep some of their new online
shopping habits
(The influential shopper,
The Economist and SAP, 2020)

14. 14
What’s happening on the high street?
36% total online retail sales growth for 2020
747,7
757,2
778
820,9
851,4
879,4
902
921,2
700
750
800
850
900
950
2017 2018 2019 2020 2021 2022 2023 2024
Average
revenue
per
user
in
U.S.
dollars
Average retail e-commerce revenue per user in Europe
from 2017 to 2024 (in U.S. dollars)

15. 15
Meet consumers where they are… the era of ‘Unified Commerce’
LAST MILE DELIVERY
OMNICHANNEL
DIVERSIFICATION
provide pick & pack solutions in
store
(EnVista and Forrester Research, 2020)
use pick-up points
vs. Click & Collect
(FEVAD 2020)
« SHIP FROM STORE »
« ORDER IN STORE »
are open to robots or drones
making deliveries
(Euromonitor 2020)

16. 16
Convenience, not safety, is driving online shopping
Features that make online shopping preferable to in-store shopping:

17. 17
What do customers want when it comes to last mile delivery?
Customers' wishes on last mile services from retailers 2020
48%
42%
42%
34%
28%
26%
16%
14%
0% 10% 20% 30% 40% 50% 60%
Choice of delivery slots
Real-time updates on delivery
Free delivery
Low costs
Time slot adherance
Home delivery
Adjust delivery location after order
Eco-efficient delivery
Share of respondents
Note: Worldwide; 2020; 314 Respondents; 152 solutions providers, 84 logistics providers and 78 retailers.
Further information regarding this statistic can be found on page 58.
Source(s): eft; Dassault Systèmes; ID 817016

18. 18
But not at any cost…
BRAND’S VALUES
& ENGAGEMENT
CONSUME BETTER
& IN A SUSTAINABLE WAY
seek products aligned
with their values
(IBM 2020)
won’t buy again if they lose trust
in the brand
(IBM 2020)
HUMAN SUSTAINABILITY
expect brands to commit to society
(Mosaiclab 2020)

19. 19
Which areas of the last mile delivery will be the most important in the next three years?
Future development in last mile delivery 2020
Note: Worldwide; 2020; 314 Respondents; 152 solutions providers, 84 logistics providers and 78 retailers.
Further information regarding this statistic can be found on page 61.
Source(s): eft; Dassault Systèmes; ID 915755
65%
56%
49%
49%
23%
16%
12%
5%
5%
0% 10% 20% 30% 40% 50% 60% 70%
Increased delivery options
Sustainability
Visibility
Speed
Smart delivery
Electric vehicles
Click and collect
Other
Drones
Share of respondents

20. 20
Average Net Promoter Score for last mile delivery services worldwide by country
Last mile delivery services' Net Promoter Score in selected countries worldwide
Note: Worldwide; October to November 2018; 18 years and older; 2,874 consumers and 500 grocery retailers and consumer product firms from Netherlands, Germany,
France, United Kingdom and United States.
Further information regarding this statistic can be found on page 59.
Source(s): Capgemini; ID 1043230
-9
9
0
-29
-13 -13
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
World United States United Kingdom France Germany Netherlands
Net
Promoter
Score

21. 21
New alternative & greener delivery options are appealing to consumers
Last mile delivery is one of the key issues for retailers
*The Carbon footprint of global trade – OECD 2016
**MetaPack Study January 2019 – 1000 US & Canadian respondents
Non-carbon
transportation modes
New urban delivery options to
reduce road traffic
Carbon dioxide emissions from freight
transportation account for 30% of all
transportation-related carbon emission from fuel
combustion*.
But eco-friendly last-mile delivery solutions could
help to make the logistics industry greener and
reduce its carbon footprint:
Bike delivery
Electrical cars or natural gas vehicle
By foot or using public transportation
As city centers are increasingly saturated, retailers
must find new delivery methods that do not
generate an increase in road traffic.
They also have to adapt to stricter city regulations
banishing cars from urban centers.
Development of collaborative delivery
services (or ‘’crowdshipping’’) where
individuals are in charge of the last mile
delivery. As car sharing, It generates fewer
journeys while optimizing their usefulness.
Secured locker delivery: the retailer can
centralse several customer deliveries in a
single central location (35% US customer
are willing to try this new option if offered**)
Disruptive delivery
methods
All retailers are competing to find new disruptive
delivery methods that could enable a faster,
cheaper, more sustainable delivery experience
for their customers. They are especially looking at
methods that do not require human labour:
Drone delivery
Autonomous cars / self-driving robots
CO2

22. Urban Logistics 4.0
Prepared by Richard Walters, Manager, BearingPoint
3rd March, 2021
What developments are we seeing in practice?
Perspectives from London

23. Urban Logistics and Mobility: an evolving ecosystem
Urban
Logistics
/
Mobility
Ecosystem
Public Sector
Citizens
(Residents & Workers)
Business & Industry
Technology / Digital

24. Public Sector
Examples:
• Greater London Authority, City of London Corporation,
Transport for London
Strategic goals:
• Improve air quality, Net Zero Carbon by 2040
• Greener spaces / road safety
Policies and initiatives (examples):
• Reduce motor traffic, servicing / delivery vehicles
• Consolidation centres (micro / largescale)
• River logistics – reduce road traffic
Source: LSE / Momentum Transport

25. Residents and Workers
Expectations:
• Home / leisure / work – blurred boundaries
• Healthy environment
• Safety, Built environment
Solutions:
• Micro-mobility
• Home work place delivery, click and collect, lockers etc
Source: LSE / Momentum Transport

26. Business & Industry
Examples:
• Retail, Foodservice, Leisure
• Parcel B2B B2C C2C
• Pharma, Office replenishment
• White van, Transport (traditional 3PL, Last mile operators)
Challenges:
• Congestion / kerb side access
• Poor delivery economics
• Access to property (Last mile consolidation centres)
• Environmental pressure / Legislation

27. Technology / Digital
Solutions:
• Apps and Platforms - Smart routing, Kerb reservation
and parking
• Public / Private data collaborations
• Last mile logistics hubs, Urban Fulfilment Centres
• Cargo bikes / AV

28. Your next ‘’rendez-vous’’ with
the Retailing 4.0 Chair
Le Retail dans le monde d'après
#épisode 3 - (in French)
Wednesday 3rd April
WEBINAR
8:30 to 10:30 am (CET)