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Separate or Integrated? Least-Cost Parcel Delivery Methods in a Flexible Delivery Environment

In: The Economics of the Postal and Delivery Sector

Author

Listed:
  • Michael D. Bradley

    (George Washington University)

  • Jeff Colvin

    (Independent Consultant)

  • Mary K. Perkins

    (Howard University)

Abstract

The recent fall in letter demand, along with the dramatic growth in the demand for parcel delivery, has opened the question as to whether posts should rely upon an integrated network (letters and parcels delivered together) or create a system of dedicated (parcels only) routes. As a result, there is ongoing research/debate on the topic of efficient last mile delivery. This is more than an academic question. Winkenbach et al. (2016) note that posts have taken quite different paths toward achieving efficiency in delivery, with some posts retaining their traditional integrated networks (Royal Mail, Deutsche Post) and others turning to dedicated parcel delivery (PostNL, Bpost). Still others choose integrated delivery in the city, while switching to separate routes in rural areas (La Poste).

Suggested Citation

  • Michael D. Bradley & Jeff Colvin & Mary K. Perkins, 2022. "Separate or Integrated? Least-Cost Parcel Delivery Methods in a Flexible Delivery Environment," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), The Economics of the Postal and Delivery Sector, pages 81-93, Springer.
    • Handle: RePEc:spr:topchp:978-3-030-82692-5_6
    DOI: 10.1007/978-3-030-82692-5_6
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