What are the best practices for green logistics in e-commerce delivery?

1 What is urban freight and green logistics?

Urban freight refers to the movement of goods and services within and around urban areas, such as cities and towns. It includes various modes of transport, such as trucks, vans, bikes, drones, and even robots. Green logistics is the concept of minimizing the environmental impact of logistics activities, such as reducing greenhouse gas emissions, energy consumption, noise, congestion, and waste. Urban freight and green logistics are closely related, as urban freight contributes to a significant share of the environmental problems caused by logistics, and also faces the challenges of limited space, traffic, and regulations in urban areas.

2 Why is e-commerce delivery important for urban freight and green logistics?

E-commerce delivery is one of the fastest growing segments of urban freight, as more and more people shop online and expect fast and convenient delivery options. According to some estimates, e-commerce delivery could account for 40% of urban freight by 2030. This means that e-commerce delivery has a huge potential to improve or worsen the environmental performance of urban freight, depending on how it is managed and optimized. For example, e-commerce delivery can reduce the need for personal trips to stores, which can save fuel and emissions, but it can also increase the number of delivery vehicles on the roads, which can cause congestion and pollution. Therefore, e-commerce delivery needs to adopt green logistics practices to balance the economic, social, and environmental goals of urban freight.

3 How to optimize the last mile delivery?

The last mile delivery is the final stage of e-commerce delivery, where the goods are transported from a local distribution center or hub to the customer's doorstep. It is also the most costly and inefficient part of the delivery process, as it involves multiple stops, low load factors, and unpredictable traffic conditions. To optimize this stage, e-commerce delivery providers can consolidate deliveries from different sources and destinations to reduce trips and vehicles needed, as well as use alternative modes of transport such as electric vehicles, cargo bikes, or drones to reduce emissions and noise. Additionally, dynamic routing and scheduling can be implemented to adjust delivery routes and times according to real-time traffic and customer preferences. Furthermore, flexible delivery options such as lockers, pick-up points, or time windows can be offered to increase the delivery success rate and customer satisfaction.

4 How to leverage the digital technologies?

Digital technologies can have a major impact on improving the efficiency and sustainability of e-commerce delivery, by allowing for better communication, coordination, and data analysis among the various actors. Cloud computing and big data analytics can store, process, and visualize large amounts of data from sources like sensors and GPS. Internet of things (IoT) and smart devices can connect and monitor delivery vehicles, equipment, and infrastructure. Artificial intelligence (AI) and machine learning can automate and optimize decision making and planning processes. Blockchain and smart contracts can secure and transparently manage transactions among suppliers, distributors, customers, and regulators.