IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v145y2021ics1366554520307523.html
   My bibliography  Save this article

Hyperconnected urban fulfillment and delivery

Author

Listed:
  • Kim, Nayeon
  • Montreuil, Benoit
  • Klibi, Walid
  • Kholgade, Nitish

Abstract

Urban last-mile delivery faces great challenges to satisfy growing customer demand with faster, punctual delivery expectations, under tight budgets and environmental requirements. The recently introduced physical internet (PI) offers a conceptual framework to address these challenges, overcoming low efficiency of current fragmented logistics operations with seamless asset sharing and flow consolidation leveraging hyperconnected systems. This article first provides a decision and system architecture for hyperconnected urban logistics, then investigates its potential at a strategic level through a simulation-based experiment in the context of large-item delivery. The results clearly demonstrate the potential of hyperconnected urban logsitics by concurrently improving often opposing measures: economic efficiency, service capability and sustainability.

Suggested Citation

  • Kim, Nayeon & Montreuil, Benoit & Klibi, Walid & Kholgade, Nitish, 2021. "Hyperconnected urban fulfillment and delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
  • Handle: RePEc:eee:transe:v:145:y:2021:i:c:s1366554520307523
    DOI: 10.1016/j.tre.2020.102104
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554520307523
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tre.2020.102104?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eiichi Taniguchi & Rob E.C.M. Van Der Heijden, 2000. "An evaluation methodology for city logistics," Transport Reviews, Taylor & Francis Journals, vol. 20(1), pages 65-90, January.
    2. Björklund, Maria & Abrahamsson, Mats & Johansson, Henrik, 2017. "Critical factors for viable business models for urban consolidation centres," Research in Transportation Economics, Elsevier, vol. 64(C), pages 36-47.
    3. Lindawati & Johan van Schagen & Mark Goh & Robert de Souza, 2014. "Collaboration in urban logistics: motivations and barriers," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 18(2), pages 278-290, July.
    4. M A Krajewska & H Kopfer & G Laporte & S Ropke & G Zaccour, 2008. "Horizontal cooperation among freight carriers: request allocation and profit sharing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1483-1491, November.
    5. Firdausiyah, N. & Taniguchi, E. & Qureshi, A.G., 2019. "Modeling city logistics using adaptive dynamic programming based multi-agent simulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 74-96.
    6. Teodor Gabriel Crainic & Nicoletta Ricciardi & Giovanni Storchi, 2009. "Models for Evaluating and Planning City Logistics Systems," Transportation Science, INFORMS, vol. 43(4), pages 432-454, November.
    7. Carolina Osorio & Michel Bierlaire, 2013. "A Simulation-Based Optimization Framework for Urban Transportation Problems," Operations Research, INFORMS, vol. 61(6), pages 1333-1345, December.
    8. Coelho, V.N. & Grasas, A. & Ramalhinho, H. & Coelho, I.M. & Souza, M.J.F. & Cruz, R.C., 2016. "An ILS-based algorithm to solve a large-scale real heterogeneous fleet VRP with multi-trips and docking constraints," European Journal of Operational Research, Elsevier, vol. 250(2), pages 367-376.
    9. Rochdi Sarraj & Eric Ballot & Shenle Pan & Driss Hakimi & Benoit Montreuil, 2014. "Interconnected logistic networks and protocols: simulation-based efficiency assessment," Post-Print hal-01112138, HAL.
    10. Cleophas, Catherine & Cottrill, Caitlin & Ehmke, Jan Fabian & Tierney, Kevin, 2019. "Collaborative urban transportation: Recent advances in theory and practice," European Journal of Operational Research, Elsevier, vol. 273(3), pages 801-816.
    11. J.H.R. van Duin & R. Kortmann & S.L. van den Boogaard, 2014. "City logistics through the canals? A simulation study on freight waterborne transport in the inner-city of Amsterdam," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 18(2), pages 186-200, July.
    12. Toh, K.T.K. & Nagel, P. & Oakden, R., 2009. "A business and ICT architecture for a logistics city," International Journal of Production Economics, Elsevier, vol. 122(1), pages 216-228, November.
    13. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    14. Martin Savelsbergh & Tom Van Woensel, 2016. "50th Anniversary Invited Article—City Logistics: Challenges and Opportunities," Transportation Science, INFORMS, vol. 50(2), pages 579-590, May.
    15. Imen Ben Mohamed & Walid Klibi & Olivier Labarthe & Jean-Christophe Deschamps & Mohamed Zied Babai, 2017. "Modelling and solution approaches for the interconnected city logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 55(9), pages 2664-2684, May.
    16. Shenle Pan & Eric Ballot & George Q. Huang & Benoit Montreuil, 2017. "Physical Internet and Interconnected Logistics Services: Research and Applications," Post-Print hal-01482909, HAL.
    17. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, April.
    18. Nagy, Gabor & Salhi, Said, 2007. "Location-routing: Issues, models and methods," European Journal of Operational Research, Elsevier, vol. 177(2), pages 649-672, March.
    19. G. Clarke & J. W. Wright, 1964. "Scheduling of Vehicles from a Central Depot to a Number of Delivery Points," Operations Research, INFORMS, vol. 12(4), pages 568-581, August.
    20. Janjevic, Milena & Winkenbach, Matthias & Merchán, Daniel, 2019. "Integrating collection-and-delivery points in the strategic design of urban last-mile e-commerce distribution networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 37-67.
    21. Roorda, Matthew J. & Cavalcante, Rinaldo & McCabe, Stephanie & Kwan, Helen, 2010. "A conceptual framework for agent-based modelling of logistics services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(1), pages 18-31, January.
    22. Don Weigel & Buyang Cao, 1999. "Applying GIS and OR Techniques to Solve Sears Technician-Dispatching and Home Delivery Problems," Interfaces, INFORMS, vol. 29(1), pages 112-130, February.
    23. Carolina Osorio & Kanchana Nanduri, 2015. "Energy-Efficient Urban Traffic Management: A Microscopic Simulation-Based Approach," Transportation Science, INFORMS, vol. 49(3), pages 637-651, August.
    24. Ann Melissa Campbell & Martin Savelsbergh, 2004. "Efficient Insertion Heuristics for Vehicle Routing and Scheduling Problems," Transportation Science, INFORMS, vol. 38(3), pages 369-378, August.
    25. Shenle Pan & Eric Ballot & George Q. Huang & Benoit Montreuil, 2017. "Physical Internet and interconnected logistics services: research and applications," International Journal of Production Research, Taylor & Francis Journals, vol. 55(9), pages 2603-2609, May.
    26. Shenle Pan & Michele Nigrelli & Eric Ballot & Rochdi Sarraj & Yanyan Yang, 2015. "Perspectives of inventory control models in the Physical Internet: A simulation study," Post-Print hal-01112144, HAL.
    27. Klibi, Walid & Martel, Alain & Guitouni, Adel, 2016. "The impact of operations anticipations on the quality of stochastic location-allocation models," Omega, Elsevier, vol. 62(C), pages 19-33.
    28. Julian Allen & Michael Browne & Allan Woodburn & Jacques Leonardi, 2012. "The Role of Urban Consolidation Centres in Sustainable Freight Transport," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 473-490, April.
    29. Liu, Bingbing & Guo, Xiaolong & Yu, Yugang & Zhou, Qiang, 2019. "Minimizing the total completion time of an urban delivery problem with uncertain assembly time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 132(C), pages 163-182.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joanna Alicja Dyczkowska & Olga Reshetnikova, 2022. "Logistics Centers in Ukraine: Analysis of the Logistics Center in Lviv," Energies, MDPI, vol. 15(21), pages 1-15, October.
    2. Faugère, Louis & Klibi, Walid & White, Chelsea & Montreuil, Benoit, 2022. "Dynamic pooled capacity deployment for urban parcel logistics," European Journal of Operational Research, Elsevier, vol. 303(2), pages 650-667.
    3. Orenstein, Ido & Raviv, Tal, 2022. "Parcel delivery using the hyperconnected service network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    4. Kellermayr-Scheucher, Marike & Niedermeier, Maria & Brandtner, Patrick & Schauer, Oliver, 2021. "Urban fulfillment centers - Perceptions and expectations from retailers," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conf, volume 32, pages 13-35, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    5. Kim, Nayeon & Montreuil, Benoit & Klibi, Walid & Zied Babai, M., 2023. "Network inventory deployment for responsive fulfillment," International Journal of Production Economics, Elsevier, vol. 255(C).
    6. Lin, Meiyan & Lin, Shaodan & Ma, Lijun & Zhang, Lianmin, 2022. "The value of the Physical Internet on the meals-on-wheels delivery system," International Journal of Production Economics, Elsevier, vol. 248(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rémy Dupas & Eiichi Taniguchi & Jean-Christophe Deschamps & Ali G. Qureshi, 2020. "A Multi-commodity Network Flow Model for Sustainable Performance Evaluation in City Logistics: Application to the Distribution of Multi-tenant Buildings in Tokyo," Sustainability, MDPI, vol. 12(6), pages 1-18, March.
    2. Ben Mohamed, Imen & Klibi, Walid & Sadykov, Ruslan & Şen, Halil & Vanderbeck, François, 2023. "The two-echelon stochastic multi-period capacitated location-routing problem," European Journal of Operational Research, Elsevier, vol. 306(2), pages 645-667.
    3. Wanjie Hu & Jianjun Dong & Bon-gang Hwang & Rui Ren & Zhilong Chen, 2019. "A Scientometrics Review on City Logistics Literature: Research Trends, Advanced Theory and Practice," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    4. Nguyen, Tiep & Duong, Quang Huy & Nguyen, Truong Van & Zhu, You & Zhou, Li, 2022. "Knowledge mapping of digital twin and physical internet in Supply Chain Management: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 244(C).
    5. Daniele Crotti & Elena Maggi, 2023. "Social Responsibility and Urban Consolidation Centres in Sustainable Freight Transport Markets," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 829-850, July.
    6. Shenle Pan, 2019. "Opportunities of Product-Service System in Physical Internet," Post-Print hal-02155622, HAL.
    7. Fahim, Patrick B.M. & Rezaei, Jafar & Montreuil, Benoit & Tavasszy, Lorant, 2022. "Port performance evaluation and selection in the Physical Internet," Transport Policy, Elsevier, vol. 124(C), pages 83-94.
    8. Shoufeng Ji & Pengyun Zhao & Tingting Ji, 2023. "A Hybrid Optimization Method for Sustainable and Flexible Design of Supply–Production–Distribution Network in the Physical Internet," Sustainability, MDPI, vol. 15(7), pages 1-34, April.
    9. Cleophas, Catherine & Cottrill, Caitlin & Ehmke, Jan Fabian & Tierney, Kevin, 2019. "Collaborative urban transportation: Recent advances in theory and practice," European Journal of Operational Research, Elsevier, vol. 273(3), pages 801-816.
    10. Van der Heide, G. & Buijs, P. & Roodbergen, K.J. & Vis, I.F.A., 2018. "Dynamic shipments of inventories in shared warehouse and transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 240-257.
    11. Francesco Ciardiello & Andrea Genovese & Shucheng Luo & Antonino Sgalambro, 2023. "A game-theoretic multi-stakeholder model for cost allocation in urban consolidation centres," Annals of Operations Research, Springer, vol. 324(1), pages 663-686, May.
    12. Faugère, Louis & Klibi, Walid & White, Chelsea & Montreuil, Benoit, 2022. "Dynamic pooled capacity deployment for urban parcel logistics," European Journal of Operational Research, Elsevier, vol. 303(2), pages 650-667.
    13. Snoeck, André & Winkenbach, Matthias, 2020. "The value of physical distribution flexibility in serving dense and uncertain urban markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 151-177.
    14. Sergio Maria Patella & Gianluca Grazieschi & Valerio Gatta & Edoardo Marcucci & Stefano Carrese, 2020. "The Adoption of Green Vehicles in Last Mile Logistics: A Systematic Review," Sustainability, MDPI, vol. 13(1), pages 1-29, December.
    15. Park, Hyeongjun & Park, Dongjoo & Jeong, In-Jae, 2016. "An effects analysis of logistics collaboration in last-mile networks for CEP delivery services," Transport Policy, Elsevier, vol. 50(C), pages 115-125.
    16. Zhu, Stuart X. & Ursavas, Evrim, 2018. "Design and analysis of a satellite network with direct delivery in the pharmaceutical industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 190-207.
    17. Jeffrey W. Ohlmann & Michael J. Fry & Barrett W. Thomas, 2008. "Route Design for Lean Production Systems," Transportation Science, INFORMS, vol. 42(3), pages 352-370, August.
    18. Daniela Paddeu & Paulus Aditjandra, 2020. "Shaping Urban Freight Systems via a Participatory Approach to Inform Policy-Making," Sustainability, MDPI, vol. 12(1), pages 1-15, January.
    19. Maximilian Schiffer & Michael Schneider & Grit Walther & Gilbert Laporte, 2019. "Vehicle Routing and Location Routing with Intermediate Stops: A Review," Transportation Science, INFORMS, vol. 53(2), pages 319-343, March.
    20. Shenle Pan & Ray Zhong & Ting Qu, 2019. "Smart product-service systems in interoperable logistics: Design and implementation prospects," Post-Print hal-02316272, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:145:y:2021:i:c:s1366554520307523. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.