Right now, we’re excited by the boom in digital technology and everything it’s done to make our online shopping habits easier and more convenient than ever before. But, how often do we stop to think about what it’s doing to our clogged-up city streets?
Roads are getting busier
Well – here’s a clue. A recent McKinsey report suggests commercial vehicles will put increasing strain on congested city roads as we head into the future. In fact, the report reveals the number of commercial vehicles in use worldwide increased by 32 per cent between 2006 and 2014, while the amount of freight in cities could rise by 40 per cent by 2050!
And, it’s surely no coincidence e-commerce sales are also expected to rise by a massive 85 per cent between 2015 and 2020, according to McKinsey.
The problem is, with around 54 per cent of the entire world population living in metro areas (and rising), the demand for thousands of fast, same-day deliveries (or even food orders!) across the inner-city won’t be going anywhere. One report even says one-in-ten people receive a daily delivery to their place of business.
It’s about timeliness and access
You guessed it – as more passenger and commercial vehicles battle it out for a place on city roads, delivery companies are facing a few challenges. A detailed study into city logistics says delivering or collecting on time, and problems with space, access and distance are all key challenges for the logistics industry today. Unsurprisingly, the study also intelligently points out that we need to fix it!
Need a clearer picture? With 28 per cent of the total delivery cost to a business coming from the last-mile, traffic jams can quickly result in skyrocketing labour and fuel costs. And then there’s the damage to reputation. That’s right, whether it was caused by traffic chaos or not, customers won’t be thanking anyone for a delayed delivery!
Increasingly congested areas and parking restrictions also make it incredibly hard for those same-day delivery drivers to quickly access some CBD addresses – without running the risk of a fine or towed vehicle. Often, delivery drivers find themselves burning precious time and fuel finding a safe place to park before making the final leg on foot.
What’s the solution?
So, what’s the solution? Well – thankfully, it turns out there might be a few:
- Urban consolidation centres (UCCs): This study describes UCCs as “an enabler to alleviate negative effects associated with distribution of goods in cities”. Fancy, but here’s the much simpler version: UCCs provide businesses with a location outside the city to which suppliers can deliver orders. Then, all they need to do is gather them together and transport them into their CBD location. And that means less vehicles entering the city!
- Nocturnal deliveries: While time is of the essence when it comes to passenger transport (we all need to get to work on time!) the same can’t be said for commercial deliveries. In fact, wouldn’t it be great to have that delivery waiting for you in the morning rather than being disturbed during the day? The concept of night time deliveries simply means delivery drivers can sail along those empty roads at all hours of the night, saving time and cost.
- Parcel Lockers: Parcel lockers that are accessible 24 hours mean delivery drivers have one easily accessible location to deliver multiple goods in one go. Not only does this mean the number of delivery journeys is reduced, but also, consumers can pick them up at a time that’s convenient to them. Better still, this means packages won’t run the risk of a misdelivery and spending even more time on the road.
- Electric vehicles and bicycles: This solution is all about agility. Unlike cars and vans that waste hours sitting idle in their clogged-up lanes, smaller electric delivery vehicles such as these bicycles and these E-Trikes could enable delivery drivers to bypass traffic woes and give them direct access to locations inaccessible by car or van.
- Autonomous ground vehicles (AGVs): These don’t exist yet, but if they did, this is what would happen: An unmanned electric delivery vehicle, complete with parcel lockers, (AGV) would notify a recipient when it will arrive in a location to deliver or collect a package. Essentially, this means parcel locker deliveries could become a reality for more people because the concept doesn’t depend on permanent lockers being installed in multiple road-accessible locations.