Inductive research in last‐mile delivery routing: Introducing the Re‐Gifting heuristic

Abstract

The last-mile problem presents a daunting challenge for many logistics service providers, especially some 7000 small, localized operations for whom the cost of complex software solutions is often prohibitive. As a result, last-mile dispatchers rely on simple heuristics to ensure adequate customer service at an acceptable cost. This research effort extends prior qualitative work by developing and testing a simple vehicle routing heuristic, based on behaviors observed in practice, that prioritizes customer service over cost against other simple vehicle routing heuristics across a variety of environments using simulation. The results support the inclusion of a customer service focus in vehicle routing and the addition of such heuristics to existing algorithm portfolios, specifically in urban areas with well-developed highway systems.

You're driving me crazy! How emotions elicited by negative driver behaviors impact customer outcomes in last mile delivery

“…Ultimately, the choice of a delivery partner impacts the customer delivery experience (Esper et al, 2003). Last‐mile delivery research has found that there are operational performance implications of different outsourcing delivery operations (Rose et al, 2022). Castillo, Bell, et al (2022), for example, found that a logistics fleet with private and outsourced drivers impacts the fulfillment time because of differences in driver compensation.…”

“…Castillo, Bell, et al (2022), for example, found that a logistics fleet with private and outsourced drivers impacts the fulfillment time because of differences in driver compensation. Rose et al (2022) found that firms need to tailor customer service and execution costs to the dimension of the service providers, because small service providers typically rely on a simplistic optimization routing algorithm not accounting for the variability of a customer service‐focused last‐mile delivery. Finally, Ta et al (2023) found higher customers ratings of electronic LSQ dimensions when crowdsourced delivery is used over delivery with traditional carriers.…”

A case and framework for expanding the use of model‐free evidence

“…Finally, Rose et al (2022) focus their attention on consumers' increasing demand for last-mile delivery service. Retailers often outsource this activity, and many logistics service providers are small businesses that do not have access to complex technological routing solutions and use simple heuristics for delivery schedules and routes.…”

Exploring the Viability of Last-Mile Delivery Solutions for Sustainable Supply Chains

“…Last-mile delivery challenges: The last-mile delivery stage of the supply chain poses several challenges, including high transportation costs, traffic congestion, and environmental impact (Kruger & Gertz, 2021). Urbanization has increased the demand for last-mile delivery, leading to increased traffic congestion, air pollution, and noise pollution (European Commission, 2016).…”

“…Urbanization has increased the demand for last-mile delivery, leading to increased traffic congestion, air pollution, and noise pollution (European Commission, 2016). Additionally, the COVID-19 pandemic has accelerated the growth of e-commerce, resulting in increased demand for last-mile delivery services (Kruger & Gertz, 2021). These challenges have highlighted the need for sustainable last-mile delivery solutions.…”