Volume List  / Volume 10 (4)

Article

HOME DELIVERY: CONCEPT AND CHARACTERISTICS

DOI: 10.7708/ijtte.2020.10(4).10


10 / 4 / 519-533 Pages

Author(s)

Snežana Tadić - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Miloš Veljović - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -


Abstract

Due to the development of e-commerce and specific customer habits and requirements, in recent decades an increasing number of companies offer home delivery service, which is the flow of goods from the business to the consumer (B2C) at the end of the supply chain ("last mile”). The main characteristic and difference of home delivery in relation to other ways of supplying customers/households (traditional customer purchase, "click & collect" purchase, door-to-door sales) is the engagement of companies in picking/physical preparation and delivery of ordered goods to customers. Delivery characteristics depend on a number of factors and circumstances, preferences, goals and interests of stakeholders (customers, companies, governments), but there is also a strong interdependence, with the type of goods having a dominant influence on other delivery characteristics. Planning, organization and implementation of the process of ordering, picking, delivery and return of goods are a serious challenge for companies' logistics and information systems, generate high costs, increase freight transport and have a significant impact on the environment. Therefore, delivery characteristics are an important area of research and optimization of systems that implement this service. This paper analyzes the concept, basic characteristics and criteria for structuring home deliveries. In this way, the systematization of basic scientific knowledge about home delivery was performed and the basis for future research of various aspects of this field was created.


Download Article

Number of downloads: 35


References:

Agatz, N.; Campbell, A.; Fleischmann, M.; Savelsbergh, M. 2008a. Challenges and Opportunities in Attended Home Delivery. In: Golden, B.; Raghavan, S.; Wasil, E. (Eds.), The Vehicle Routing Problem: Latest Advances and New Challenges. Operations Research/Computer Science Interfaces, vol. 43. Springer, Boston, 379-396.

 

Agatz, N.; Fleischmann, M.; Van Nunen, J. A. E. E. 2008b. E-fulfillment and multi-channel distribution – A review, European Journal of Operational Research, 187(2): 339–356.

 

Agatz, N.; Campbell, A.; Fleischmann, M.; Savelsbergh, M. 2011. Time Slot Management in Attended Home Delivery, Transportation Science 45(3): 435–449.

 

Allen, J.; Thorne, G.; Browne, M. 2007. Good practice guide of urban freight transport, BESTUFS, Available from internet: http://www.bestufs.net/download/BESTUFS_II/good_practice/English_BESTUFS_Guide.pdf.

 

Arslan, A.M.; Agatz, N.; Kroon, L.; Zuidwijk, R. 2018. Crowdsourced Delivery - A Dynamic Pickup and Delivery Problem with Ad Hoc Drivers, Transportation Science 53(1): 1-14.

 

Ayanso, A; Diaby, M.; Nair, S. K. 2006. Inventory rationing via drop-shipping in Internet retailing: A sensitivity analysis, European Journal of Operational Research 171(1): 135–152.

 

Bernon, M.; Cullen, J.; Gorst, J. 2016. Online retail returns management, International Journal of Physical Distribution & Logistics Management 46(6/7): 584–605.

 

Boyer, K. K.; Prud’homme, A. M; Chung, W. 2009. The Last Mile Challenge: Evaluating the Effects of Customer Density and Delivery Window Patterns, Journal of Business Logistics 30(1): 185–201.

 

Boyer, K.K.; Frohlich, M.T.; Hult, T.G. 2005. Extending the Supply Chain: How Cutting Edge Companies Bridge the Critical Last Mile into Customers’ Homes. American Management Association, USA. 252 p.

 

Boyer, K.K.; Hult, G.T.; Frohlich, M. 2003. An exploratory analysis of extended grocery supply chain operations and home delivery, Integrated Manufacturing Systems 14(8): 652–663.

 

Brown, J. R.; Guiffrida, A. L. 2014. Carbon emissions comparison of last mile delivery versus customer pickup, International Journal of Logistics Research and Applications 17(6): 503–521.

 

Browne, M.; Allen, J.; Anderson, S; Jackson, M. 2001. Overview of home deliveries in the UK. University of Westminster and Freight Transport Association (FTA), a study for the DTI.

 

Cairns, S. 1996. Delivering alternatives, Transport Policy 3(4): 155–176.

 

Campbell, A. M.; Savelsbergh, M. W. P. 2005. Decision Support for Consumer Direct Grocery Initiatives, Transportation Science 39(3): 313–327.

 

Campbell, A. M.; Savelsbergh, M. 2006. Incentive Schemes for Attended Home Delivery Services, Transportation Science 40(3): 327–341.

 

Carbone, V.; Roquet, A.; Roussat, C. 2017. The Rise of Crowd Logistics: A New Way to Co-Create Logistics Value, Journal of Business Logistics 38(4): 238-252.

 

Cárdenas, I.; Beckers, J.; Vanelslander, T. 2017. E-commerce last-mile in Belgium: Developing an external cost delivery index, Research in Transportation Business & Management 24: 123–129.

 

Dablanc, L.; Giuliano, G.; Holliday, K.; O’Brien, T. 2013. Best Practices in Urban Freight Management, Transportation Research Record 2379(1): 29–38.

 

Dablanc, L.; Morganti, E.; Arvidsson, N.; Woxenius, J.; Browne, M.; Saidi, N. 2017. The rise of on-demand “Instant Deliveries” in European cities, Supply Chain Forum: An International Journal 18(4): 203–217.

 

Daduna, J.R.; Lenz, B. 2005. Online-shopping and changes in mobility, In: Fleischmann, B.; Klose, A. (Eds.), Distribution Logistics: Advanced Solutions to Practical Problems. Springer, 65–84.

 

De Koster, M. B. M. 2002. Distribution structures for food home shopping, International Journal of Physical Distribution & Logistics Management 32(5): 362-380.

 

De Koster, M.B.M. 2003. Distribution strategies for online retailers, IEEE Transactions on Engineering Management 50(4): 448–457.

 

Devari, A.; Nikolaev, A. G.; He, Q. 2017. Crowdsourcing the last mile delivery of online orders by exploiting the social networks of retail store customers, Transportation Research Part E: Logistics and Transportation Review 105: 105–122.

 

Du, T.C.; Li, E.Y.; Chou, D. 2005. Dynamic vehicle routing for online B2C delivery, Omega 33(1): 33–45.

 

Ducret, R. 2014. Parcel deliveries and urban logistics: Changes and challenges in the courier express and parcel sector in Europe — The French case, Research in Transportation Business & Management 11: 15–22.

 

Durand, B.; Gonzalez-Feliu, J. 2012. Urban Logistics and E-Grocery: Have Proximity Delivery Services a Positive Impact on Shopping Trips? Procedia - Social and Behavioral Sciences 39: 510–520.

 

Edwards, J. B.; McKinnon, A. C.; Cullinane, S. L. 2010a. Comparative analysis of the carbon footprints of conventional and online retailing, International Journal of Physical Distribution & Logistics Management 40(1/2): 103–123.

 

Edwards, J. B.; McKinnon, A. C.; Cullinane, S. L. 2009. Carbon auditing the ‘last mile’: modelling the impact of conventional and on-line food shopping, Green Logistics Project, Herriott-Watt University, Edinburgh.

 

Edwards, J.; McKinnon, A.; Cherrett, T.; McLeod, F.; Song, L. 2010b. Carbon dioxide benefits of using collection-delivery points for failed home deliveries in the United Kingdom, Transportation Research Record 2191: 136–143.

 

Ehmke, J. F.; Mattfeld, D. C. 2012. Vehicle Routing for Attended Home Delivery in City Logistics, Procedia - Social and Behavioral Sciences 39: 622–632.

 

Ehmke, J.F.; Campbell, A.M. 2014. Customer acceptance mechanisms for home deliveries in metropolitan areas, European Journal of Operational Research 233: 193-207.

 

Esser, K.; Kurte, J. 2005. B2C e-commerce: impact on transport in urban areas. In Recent Advances in City Logistics, In Proceedings of the 4th International Conference on City Logistics, 437–448.

 

Fernie, J.; McKinnon, A.C. 2009. The development of e-tail logistics, In Fernie, J.; Sparks, L. (Ed.), Logistics and retail management: emerging issues and new challenges in the retail supply chain, 3rd Ed, Kogan Page, 207-232.

 

Fernie, J.; Sparks, L.; McKinnon, A. C. 2010. Retail logistics in the UK: past, present and future, International Journal of Retail & Distribution Management 38(11/12): 894–914.

 

Gan, X.; Sethi, S. P.; Zhou, J. 2010. Commitment-penalty contracts in drop-shipping supply chains with asymmetric demand information, European Journal of Operational Research 204(3): 449–462.

 

Gardrat, M.; Toilier, F.; Patier, D.; Routhier, J. 2016. How can the impact of new practices for supplying households be quantified in urban goods movements, In Proceedings of the 6th International Conference on Information Systems Logistics and Supply Chain, 1-9.

 

Gevaers, R. 2020. Why COVID might change B2C last mile networks forever, Linkedin blog. Available from internet: https://www.linkedin.com/pulse/why-covid-might-change-b2c-last-mile-networks-forever-gevaers-ph-d-/?trackingId=zH3ziDb3Tsia8eyxUK%2FzkQ%3D%3D.

 

Gevaers, R.; Van de Voorde, E.; Vanelslander, T. 2009. Characteristics of innovations in last-mile logistics-using best practices, case studies and making the link with green and sustainable logistics. In Proceedings of the European Transport Conference, 21 p.

 

Gevaers, R.; Van de Voorde, E.; Vanelslander, T. 2011. Characteristics and Typology of Last-Mile Logistics from an Innovation Perspective in an Urban Context. In Macharis, C.; Melo, S. (Ed.), City Distribution and Urban Freight Transport: Multiples Perspectives, 56–71.

 

Gevaers, R.; Van de Voorde, E.; Vanelslander, T. 2014. Cost Modelling and Simulation of Last-mile Characteristics in an Innovative B2C Supply Chain Environment with Implications on Urban Areas and Cities, Procedia - Social and Behavioral Sciences 125: 398–411.

 

Gould, J. 1998. Driven to Shop?: Role of Transportation in Future Home Shopping, Transportation Research Record 1617: 149–156.

 

Hausmann, L.; Herrmann, N.A.; Krause, J.; Netzer, T. 2014. Same-day delivery: The next evolutionary step in parcel logistics (McKinsey & Company). Available from internet: https://www.mckinsey.com/~/media/McKinsey/Industries/Travel%20Transport%20and%20Logistics/Our%20Insights/Same%20day%20delivery%20the%20next%20evolutionary%20step%20in%20parcel%20logistics/Sameday_delivery_The_next_evolutionary_step_in_parcel_logistics.ashx.

 

Hays, T.; Keskinocak, P.; De López, V. M. 2005. Strategies and challenges of internet grocery retailing logistics. In Geunes, J. (Ed.), Applications of Supply Chain Management and E-Commerce Research, Springer, 217-252.

 

Hesse, M. 2002. Shipping news: the implications of electronic commerce for logistics and freight transport, Resources, conservation and recycling 36(3): 211–240.

 

Hobbs, J. E. 2020. Food supply chains during the COVID-19 pandemic, Canadian Journal of Agricultural Economics 68: 171-176.

 

Iwan, S.; Kijewska, K.; Lemke, J. 2016. Analysis of Parcel Lockers’ Efficiency as the Last Mile Delivery Solution – The Results of the Research in Poland, Transportation Research Procedia 12: 644–655.

 

Joerss, M.; Schroder, J.; Neuhaus, F.; Klink, C.; Mann, F. 2016. Parcel delivery: the future of last mile, Travel, Transport and Logistics, McKinsey&Company. 32 p.

 

Kämäräinen, V.; Punakivi, M. 2002. Developing Cost-effective Operations for the e-Grocery Supply Chain, International Journal of Logistics Research and Applications 5(3): 285–298.

 

Kämäräinen, V.; Saranen, J.; Holmström, J. 2001. The reception box impact on home delivery efficiency in the e-grocery business, International Journal of Physical Distribution & Logistics Management 31(6): 414–426.

 

Klein, R.; Neugebauer, M.; Ratkovitch, D.; Steinhardt, C. 2019. Differentiated Time Slot Pricing Under Routing Considerations in Attended Home Delivery, Transportation Science 53(1): 236–255.

 

Kuhn, H.; Sternbeck, M.G. 2013. Integrative retail logistics: an exploratory study, Operations Management Research 6(1/2): 2-18.

 

Kull, T. J.; Boyer, K.; Calantone, R. 2007. Last-mile supply chain efficiency: an analysis of learning curves in online ordering, International Journal of Operations & Production Management 27(4): 409-434.

 

Lim, S. F. W. T.; Jin, X.; Srai, J. S. 2018. Consumer-driven e-commerce, International Journal of Physical Distribution & Logistics Management 48(3): 308–332.

 

Lin, I.; Mahmassani, H. 2002. Can Online Grocers Deliver?: Some Logistics Considerations, Transportation Research Record 1817(1): 17–24.

 

Lindner, J. 2011. Last mile logistics capability: a multidimensional system requirements analysis for a general modelling and evaluation approach. Dipl. Technical university of Munich.

 

McKinnon, A. C.; Tallam, D. 2003. Unattended delivery to the home: an assessment of the security implications, International Journal of Retail & Distribution Management 31(1): 30–41.

 

McLeod, F.; Cherrett, T.; Song, L. 2006. Transport impacts of local collection/delivery points, International Journal of Logistics Research and Applications 9(3): 307–317.

 

Mehmann, J.; Frehe, V.; Teuteberg, F. 2015. Crowd Logistics − A Literature Review and Maturity Model, In Proceedings of the Hamburg International Conference of Logistics (HICL), 117-145.

 

Menge, J.; Hebes, P. 2011. Optimization of urban deliveries: evaluating a courier, express and parcel services pilot project in Berlin, In Macharis, C.; Melo, S. (Ed.), City Distribution and Urban Freight Transport: Multiples Perspectives. Edward Elgar Publishing, Northampton, 201–216.

 

Morganosky, M. A.; Cude, B. J. 2000. Consumer response to online grocery shopping, International Journal of Retail & Distribution Management 28(1): 17–26.

 

Morganti, E.; Dablanc, L.; Fortin, F. 2014a. Final deliveries for online shopping: The deployment of pickup point networks in urban and suburban areas, Research in Transportation Business & Management 11: 23–31.

 

Morganti, E.; Seidel, S.; Blanquart, C.; Dablanc, L.; Lenz, B. 2014b. The impact of e-commerce on final deliveries: alternative parcel delivery services in France and Germany, Transportation Research Procedia 4: 178-190.

 

Moroz, M.; Polkowski, Z. 2016. The last mile issue and urban logistics: choosing parcel machines in the context of the ecological attitudes of the Y generation consumers purchasing online, Transportation Research Procedia 16: 378-393.

 

Murphy, A. J. 2003. (Re)solving space and time: Fulfilment issues in online grocery retailing, Environment and Planning A 35(7): 1173–1200.

 

Oldhager, J. 2003. Strategic positioning of the order penetration point, International Journal of Production Economics 83(3): 319–329.

 

Ozbaygin, G.; Karasan, O. E.; Savelsbergh, M.; Yaman, H. 2017. A branch-and-price algorithm for the vehicle routing problem with roaming delivery locations, Transportation Research Part B: Methodological 100: 115–137.

 

Park, H.; Park, D.; Jeong, I.J. 2016. An effects analysis of logistics collaboration in last-mile networks for CEP delivery services, Transport Policy 50: 115–125.

 

Punakivi, M. 2003. Comparing alternative home delivery models for e-grocery business, PhD thesis, Helsinki University of Technology, Industrial Engineering and Management, Helsinki. 140 p.

 

Punakivi, M.; Saranen, J. 2001. Identifying the success factors in e-grocery home delivery, International Journal of Retail & Distribution Management 29(4): 156–163.

 

Punakivi, M.; Yrjölä, H.; Holmström, J. 2001. Solving the last mile issue: reception box or delivery box, International Journal of Physical Distribution & Logistics Management 31(6): 427–439.

 

Reyes, D.; Savelsbergh, M.; Toriello, A. 2017. Vehicle routing with roaming delivery locations, Transportation Research Part C: Emerging Technologies 80: 71–91.

 

Siikavirta, H.; Punakivi, M.; Kärkkäinen, M.; Linnanen, L. 2008. Effects of E-Commerce on Greenhouse Gas Emissions: A Case Study of Grocery Home Delivery in Finland, Journal of Industrial Ecology 6(2): 83–97.

 

Slabinac, M. 2016. Innovative solutions for a “last-mile” delivery–a European experience. In Proceedings of The 15th International Scientific Conference Business Logistics in Modern Management, 111–129.

 

Song, L.; Cherrett, T.; McLeod, F.; Wei, G. 2009. Addressing the last mile problem. Transport impacts of collection and delivery points, Transportation Research Record 2097(1): 9–18.

 

Tadić, S. 2019. City logistics initiatives for central urban zones (In Serbian), Tehnika 69(4): 585-594.

 

Tadić, S.; Veljović, M. 2020a. Logistics flows of household, Tehnika 75(2): 225-237.

 

Tadić, S.; Veljović, M. 2020b. Return flows in home delivery. In Proceedings of The 19th International Conference on Transport Science (ICTS), Portoroz, Slovenia, in press.

 

Tadić, S.; Zečević, S.; Kostadinović, A. 2017. Home delivery – problems and opportunities. In Proceedings of the 6th international conference Тowards a Humane City: Smart Mobility – Synergy Between Sustainable Mobility and New Technologies, Faculty of technical sciences, University of Novi Sad, Novi Sad, Serbia, 131-136.

 

Taniguchi, E.; Kakimoto, Y. 2004. Modelling effects of e-commerce on urban freight transport. In Taniguchi, E.; Thompson, R. G. (Ed.), Logistics systems for suistanable cities, Elsevier, 135–146.

 

Van Duin, J. H. R.; De Goffau, W.; Wiegmans, B.; Tavasszy, L. A.; Saes, M. 2016. Improving Home Delivery Efficiency by Using Principles of Address Intelligence for B2C Deliveries, Transportation Research Procedia 12: 14-25.

 

Vanelslander, T.; Deketele, L.; Van Hove, D. 2013. Commonly used e-commerce supply chains for fast moving consumer goods: comparison and suggestions for improvement, International Journal of Logistics Research and Applications 16(3): 243–256.

 

Visser, J.; Nemoto, T.; Browne, M. 2014. Home Delivery and the Impacts on Urban Freight Transport: A Review, Procedia - Social and Behavioral Sciences 125: 15–27.

 

Wang, Y.; Zhang, D.; Liu, Q.; Shen, F.; Lee, L. H. 2016. Towards enhancing the last-mile delivery: An effective crowd-tasking model with scalable solutions, Transportation Research Part E: Logistics and Transportation Review 93: 279–293.

 

Weltevreden, J. W. J. 2008. B2C e-commerce logistics: the rise of collection and delivery points in The Netherlands, International Journal of Retail & Distribution Management 36(8): 638–660.

 

Weltevreden, J. W. J.; Rotem-Mindali, O. 2009. Mobility effects of B2C and C2C e-commerce in the Netherlands: a quantitative assessment, Journal of Transport Geography 17(2): 83–92.

 

Wohlrab, J.; Harrington, T.S.; Srai, J.S. 2012. Last-mile logistics evaluation - customer, industrial and institutional perspectives, In Proceedings of The 23rd Annual Production and Operations Management Society (POMS) conference. Chicago, 20 p.

 

Xu, M.; Ferrand, B.; Roberts, M. 2008. The last mile of e-commerce – unattended delivery from the consumers and eTailers’ perspectives, International Journal of Electronic Marketing and Retailing 2(1): 20-37.

 

Yaman, H.; Karasan, O. E.; Kara, B. Y. 2012. Release Time Scheduling and Hub Location for Next-Day Delivery, Operations Research 60(4): 906–917.

 

Yrjölä, H. 2001. Physical distribution considerations for electronic grocery shopping, International Journal of Physical Distribution & Logistics Management 31(10): 746–761.

 

Yuen, K. F.; Wang, X.; Ng, L. T. W.; Wong, Y. D. 2018. An investigation of customers’ intention to use self-collection services for last-mile delivery, Transport Policy 66: 1–8.