Sustainable solutions for “last mile” deliveries in the parcel industry: A qualitative analysis using insights from third-party logistics service providers and public mobility experts

Details

Supervisors

Agrell, Per Joakim

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

This thesis addresses the solutions that can contribute to improving the level of sustainability of parcel deliveries in the “last mile” of the supply chain. Indeed, the last stage of the parcel delivery process presents many inefficiencies and causes severe negative outcomes economically, socially and environmentally, referred to as the “last mile issue”. The urge to tackle this issue is strengthened by the growth of the industry, boosted by the expansion of online commerce. First, the concept of the “last mile” issue is contextualized and illustrated through a thorough literature review whose aim is to provide a comprehensive view of the challenges of the last mile, the stakeholders involved and the extent of the current and prospective solutions that have been researched from a sustainability perspective, focusing on processes, modes of transportation, public policies and marketing. Secondly, executives from various companies from the parcel delivery industry and local authorities’ representatives from Belgian cities have been interviewed. They provided this thesis with their own perspective of sustainability concerns related to the last mile and how they are tackling it in their respective organizations. A crossed analysis then reveals the significant disparities that may arise between the literature and the expertise provided by the interviews. Insights gathered through this exploratory approach may provide food for thoughts for further researches in the field of last mile sustainability. Particularly, the findings that have been highlighted mention the differences in views regarding the degree of efficiency of some delivery solutions, the important role of the driver in the routing process, the increased role of digitalization, the interest of alternative modes of transportation and the current extent of collaborations between companies. In addition, many inefficiencies were linked to the different aspirations between the third-party logistics providers and the public mobility deciders, as well as the counter-productive interference of political interests and public power structure for efficient and relevant sustainability policies.