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Initiative 42: Pick-up/Delivery to Alternate Destinations

Pick-up/Delivery to Alternate Destinations
Description: Strategies based on a change of pick-up/delivery destinations to either a central pick-up/drop-off point or  delivery lockers, instead of to homes. Staffed pick-up/drop-off sites and locker banks are two complementary ways to optimize the final leg of deliveries.
Targeted mode: All Traffic, Large Trucks Geographic scope: Area
Type of initiative: Logistical Management: Last Mile Delivery Practices/Pick-up/Delivery to Alternate Destinations Primary objective: Reduce failed delivery attempts
Expected costs and level of effort to implement: Staffed pick-up/drop-off sites and locker banks can be considered, based on careful examination of specific local conditions. The main costs may be related to security assurance and inventory reorganization. In addition, when staffed, labor costs are involved, and for unassisted strategies, such as locker banks, initial investment may be high.
Advantages:

  • Reduce operational costs
  • Environmental sustainability
  • Reduce vehicle miles traveled
  • Increase efficiency
  • Locker banks can be used to replace post offices in rural areas
 Disadvantages:

  • Low probability for unintended consequences:
    • May cause security and liability issues
    • May induce an increase in traffic at/in the vicinity of the area/facility
  • Require economies of scale on the vendor’s side
    • Require warehouse management and inventory reorganization
  • Require very high/moderate coordination among multiple stakeholders/jurisdictions
Examples:

  • Belgium, Luxemburg, the Netherlands, France, Germany (Dortmund and Mainz), the United Kingdom, and Benelux (BESTUFS 2007)
Source: (Jaller et al., 2013b)

Source: Downs 2004

  • FedEx in the United States (Apivatanagul and Regan 2008; FedEx 2010)

Source: (DNAInfo, 2013)

Source: Apivatanagul and Regan 2008
Related alternatives: 1. Load Factor Restrictions; 2. Urban Consolidation Centers; 3. Staggered Work Hour Program; 4. Receiver-Led Delivery Consolidation Program
References: Siikavirta et al. 2003; BESTUFS 2007; Apivatanagul and Regan 2008; Augereau and Dablanc 2008; FedEx 2010

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