Patience cuts the distance - An analysis of how route optimization with flexible delivery days improves transport efficiency in last-mile deliveries

Sammanfattning

Last-mile deliveries contributes to substantial operational costs within logistics. Efficiencies in this last leg of deliveries is of interest, and the method proposed in this study is route optimization with flexible delivery days as a way to reduce the total distance driven and increase last-mile efficiency. The study propose four performance indicators, derived to evaluate the systems performance when flexibility is introduced. To test how flexibility would affect these performance indicators, a mathematical model incorporating flexibility was derived from a traditional HCVRP, modified to allow for flexibility. Experiments were conducted to analyze the effects of flexibility on a empirical data set provided by an LSP located in Östergötland, Sweden. The data set was split based on parcel deliveries made in rural and urban areas, and experiments were conducted on each data set, and later compared. The results showed that each proposed performance indicator improved with the introduction of flexibility, for both rural and urban parcel deliveries. Furthermore, a decrease in total distance drive was observed. On rural parcel deliveries, a total distance decrease of 6% was observed, and on urban parcel deliveries, a total distance decrease of 11% was observed when one day of flexibility was used on 25% of the parcel groups. Increasing the level of flexibility was not shown, in these results, to consequently decrease total distance driven.