freight & fleet programmes agile urban logistics 02/04/14

Freight & Fleet Programmes

Agile Urban Logistics 02/04/14

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2Freight & Fleet Programmes2

• GLA application to TSB Future Cities programme• Hypothesis: the use of data, technology and innovative,

collaborative business models to better manage systems and services in a city

• Expose and exploit flexibility in supply and demand to better utilise resources – space, time, energy, materials

• Funding to support innovation in key sectors and to deliver against key city challenges –growth, congestion, pollution…

• Secured funding for demonstrator projects that can lead to deployment at scale

PROJECT ORIGINS

• The key growing road use in London• 43% growth projected to 2030• Growth of e-commerce is key driver • Rapid innovation in the home deliveries sector –

especially in the use of data, IT and business model innovation

• Can this be tailored towards Mayoral priorities to mitigate congestion and pollution?

VANS AND CONGESTION

OBJECTIVES

• Create fewer, fuller vehicles• Promote re-timing away from peak hours• Promote re-routing of journeys away from the most

congested roads and pollution hot spots• Promote consolidation and a reduction in the number

of pick-ups/drop-offs• Promote utilisation of low emission vehicles • Influence customer preferences to help achieve any or

all of the above

SWEET SPOT

commercial advantage

customer convenience

externalities

market inefficiencies

• Mayor’s office backing• Working with TfL Freight team• Timeframe: 2014-16• Funding: £750k - £1.5m (+ matched investments)• Three stages –

– Options appraisal, demonstrator design, buy-in– ‘On the ground’ demonstrator(s)– Evaluation

APPROACH

• Commissioned Arup to –

– Assess the state of the market– Understand capabilities & interest– Appraise options– Co-design demonstrator– Secure buy-in / commitments– Develop implementation plan– Establish evaluation framework

APPROACH – STAGE 1

Freight & Fleet Programmes

London Urban Logistics Overview

Peter Wilkinson - TfL

Dan Evanson - Arup

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Why have we focused on B2C

• Safety: Home Deliveries are typically executed by less regulated van fleets which already have a disproportionate (if less high profile than HGV) impact on TfL’s ‘Killed and Seriously Injured’ (KSI) statistics

• Congestion: Home delivery requires less efficient deliveries compared to traditional retail models and drives significantly more vehicles onto the roads, predominately in the peak hours

• Environment: The predominant fuel used is currently diesel which is high in nitrus oxide (NOx) and particulate matter (PM) outputs. This is enhanced by the high intensity multi-drop routes which result in very poor MPG performance, unwelcome driving behaviours such as engine idling and therefore even more pollutants

• The market is growing

• London is growing

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The National Picture

• 1st e-commerce delivery in 1994

• 2012 – 10% of retail spend (Royal Mail)

• 2018 – 21% of retail spend (British Retail Consortium)

Trend towards

Time sensitive deliveries (Shutl, DPD)

On line SKU explosion (amazon have 1,191,000)

Increased connectivity / confidence

Mobile and tablets

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The National Picture

In 2012, 400,000 tablets were given as Christmas gifts.

“Our behaviour as consumers is driving this change in e-commerce and freight deliveries; everyone needs to be part of the solution.”(CILT, 2014).

In 2013, there were over 4 million.

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The London Picture

There are really multiple E-commerce supply chains and all are constantly and rapidly evolving. We’re seeking to better understand the picture in London, and then to help suggest the most effective solutions

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Deliveries analysis to Organisation X in Zone 1 – 5 days data equivalent

In total 250 vehicles performed deliveries to Organisation X where 30 of them were purely for personal deliveries

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Arup Post Room Data – Amazon deliveries

Original date of delivery Delivery company Time booked14/01/2013 City Sprint 11

DPD 09Hermes 12Yodel 13

15/01/2013 City Sprint 09Parcel Force 12Yodel 11

16/01/2013 City Sprint 09Hermes 11

17/01/2013 City Sprint 10DPD 11Parcel Force 10Royal Mail (Special) 11Yodel 12

Amazon shipped circa 10% of the deliveries received when obvious business deliveries were discounted. Goods came via 18 different carriers

Taking a day in Jan as an example we can see that 5 different carriers deliver to our office. Parcel Force and City Sprint deliver just a few minutes apart!

*that companies may deliver non-Amazon as well

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Specific Concerns

• Building London centric knowledge

• Multiple attempted deliveries / returns

• Duplicate journeys

• Absence of collaboration (manufacturers, retailers and consumers)

• Road space

All in order to:

- Tackle inherent inefficiencies within London’s transport system

- Address these inefficiencies and mitigate their impacts

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Consumer Quotes

Essentially convenience - can grocery shop after hours from

living room. Also, shopping with small children is stressful so I

prefer to order onlineI live in Middlesex so don't want to have to

carry much home when commuting as will

probably be standing

If I can carry it easily and its not too valuable work is ok, otherwise I

prefer near home.

Depends on the opening hours of the pick-up

point: I need them to be open late in the evening

I would prefer something to be part of

my daily route. Whether this is near home, near work, or

near the principle train stations that I use on

my daily commute

I'd rather large items be delivered to Home

at a given, narrow, time slot.

Convenience of linked trips (public transport node on route home /

shop where I'd drive to do normal shopping)

Location, convenience and supporting local convenience store /

newsagent

if I have to go to shops and carry the items home,

the advantage of the delivery is lost

"Tube/train station- generally experience poor customer

service at these locations, so doubt they would be able to cope with parcel collections as well.

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Attendee Overview

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Discussion

Based upon what you’ve heard:

• What works well for ecommerce and home deliveries?

• What doesn’t work well?

• Are there any significant barriers to improve current operations?

• What is your view of the characteristics of different product supply chains?

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Break

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A Recap of the Questions for Discussion

Based upon what you’ve heard:

• What works well for ecommerce and home deliveries?

• What doesn’t work well?

• Are there any significant barriers to improve current operations?

• What is your view of the characteristics of different product supply chains?

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Potential Solutions for debate

• Examples solutions could be:

Alternative modes: use of electric vehicles, delivery of goods by rail into major rail terminals

Alternative modes: use of electric vehicles, delivery of goods by rail into major rail terminals

Click & Collect: In tube/NR stations and other regularly used locations

Click & Collect: In tube/NR stations and other regularly used locations

Lockerboxes: all couriers would be able to use them, not single branded

Lockerboxes: all couriers would be able to use them, not single branded

Penalty prices: charges put in place for deliveries into central London

Penalty prices: charges put in place for deliveries into central London

Consolidation of deliveries: combine deliveries in different areas by postcode

Consolidation of deliveries: combine deliveries in different areas by postcode

People power: community / neighbourhood based solutionPeople power: community / neighbourhood based solution

Out of hours delivery: if consumers prefer deliveries to be made at home, switch activity to times that better suit…

Out of hours delivery: if consumers prefer deliveries to be made at home, switch activity to times that better suit…

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Innovative Solutions

• Demonstrators

• Obstacles

• Viability

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Summary

• Objectives

• Progress

• Outputs from the session

• Next steps

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25Freight & Fleet Programmes

Questions?

For further information contact:

Thank you

Email: [email protected]: www.tfl.gov.uk

Peter Wilkinson: [email protected]

Dan Evanson: [email protected]

freight & fleet programmes agile urban logistics 02/04/14

Documents

freight deliveries

efficient deliveries

home deliveries sector

growth of ecommerce

use of data

key sectors

home delivery

tfl freight teamtimeframe