Leveraging Socially Networked Mobile ICT Platforms for the Last-Mile Delivery Problem

Abstract

Increasing numbers of people are managing their social networks on mobile information and communication technology (ICT) platforms. This study materializes these social relationships by leveraging spatial and networked information for sharing excess capacity to reduce the environmental impacts associated with "last-mile" package delivery systems from online purchases, particularly in low population density settings. Alternative package pickup location systems (PLS), such as a kiosk on a public transit platform or in a grocery store, have been suggested as effective strategies for reducing package travel miles and greenhouse gas emissions, compared to current door-to-door delivery models (CDS). However, our results suggest that a pickup location delivery system operating in a suburban setting may actually increase travel miles and emissions. Only once a social network is employed to assist in package pickup (SPLS) are significant reductions in the last-mile delivery distance and carbon emissions observed across both urban and suburban settings. Implications for logistics management's decades-long focus on improving efficiencies of dedicated distribution systems through specialization, as well as for public policy targeting carbon emissions of the transport sector are discussed.

Information technology for sustainable supply chain management: a literature survey

“…Finally, expert systems can be used to analyse the operational performance of supply chains (Olugu and Wong 2012) or for ad hoc improvements (Suh, Smith, and Linhoff 2012). Suh, Smith, and Linhoff (2012) show how the combination of a social network with location-based information of participants can be used to improve last-mile package delivery in real time.…”

“…Suh, Smith, and Linhoff (2012) show how the combination of a social network with location-based information of participants can be used to improve last-mile package delivery in real time.…”

“…In particular, some authors suggest an effect of IT on carbon emissions of road freight traffic (Benz et al 2012;Suh, Smith, and Linhoff 2012;Iacob et al 2013;Bosona et al 2013). Also, Shi et al (2012) attribute their efforts to improve reverse logistics information flow to the goal of establishing a low-carbon environment.…”

Household-Level Economies of Scale in Transportation

“…The intent of our work is to better understand the trade-off between centralized and decentralized distribution schemes. Our work could be said to follow naturally from [36,49,50], for example, and would also fit in the company of [15,17], all of which study this same trade-off in one form or another.…”

“…A third example can be found in [49], which considers a closely related problem in which a customer receiving a package can specify multiple locations at which the delivery service may drop off the package (e.g. "please drop off my package at my home, my work, my gym, or my friend's house").…”