Foreword
Distribution to businesses remains an important part of city logistics, but the focus is shifting; from predominantly business to business fulfilment, towards more business to consumer fulfilment.
2 minutes to read
Operating in the urban environment comes with its challenges; rising populations and competing property uses are putting pressures on the supply of industrial land, and the proximity of residents can lead to conflict. But densely populated cities of affluent consumers offer huge opportunities.
Stiff competition amongst retailers and logistics service providers is driving a range of delivery options such as same-day or next-day delivery and click & collect. A growing spectrum of delivery options brings new logistics challenges such as higher delivery frequencies, shorter turnaround times, fluctuating demand, changing delivery patterns, and uncertainties around the returns.
Fundamental changes to consumer habits are taking place and businesses need to consider changes to their operational models and their real estate footprints, particularly within urban areas. But consumer habits are not the only factor driving changes for operators. There are also important technological and sustainability considerations.
Consumers, retailers, and logistics carriers are increasingly looking at the environmental impact of their decisions. While shoppers want more goods, more quickly and more conveniently, they also want those goods produced and delivered more sustainably. Consumers are demanding higher standards of sustainability from retailers and in turn, retailers are looking at the delivery options they provide, and the sustainability credentials of the operators they partner with. Balancing financial, social, and environmental objectives, which are sometimes contradictory, remains critical for logistics service providers.
Councils and policymakers are also becoming increasingly concerned with the environmental and social impacts of urban logistics. This is challenging traditional distribution models and delivery methods. Clean air zones are encouraging greener transport choices, with more electric fleet vehicles as well as the adoption of alternative delivery methods such as cargo bikes. Councils are also promoting the use of consolidation centres, fundamentally changing how goods are delivered to city centre businesses.
Technological advances are offering solutions for urban logistics operators. Enabling them to improve how efficiently they manage their facilities, inventory, and operations. Improvements in automation technology are allowing equipment to be scaled down and applied in smaller facilities. High-tech solutions are also bringing about new ways to move goods around the city.
In this report, we explore these key themes of consumer demand, sustainability, and technology, and how they are influencing the urban logistics environment.
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