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To close the gap between current distribution operations and today’s customer expectations, firms need to think differently about how resources are acquired, managed and allocated to fulfill customer requests. Rather than optimize planned resource capacity acquired through ownership or long- term partnerships, this work focuses on a specific supply-side innovation – on-demand distribution platforms. On-demand distribution systems move, store, and fulfill goods by matching autonomous suppliers' resources (warehouse space, fulfillment capacity, truck space, delivery services) to requests on-demand. On-demand warehousing systems can provide resource elasticity by allowing capacity decisions to be made at a finer granularity (at the pallet-level) and commitment (monthly versus yearly), than construct or lease options. However, such systems are inherently more complex than traditional systems, as well as have varying costs and operational structures (e.g., higher variable costs, but little or no fixed costs). New decision- supporting models are needed to capture these trade-offs.
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Vehicle Miles Traveled and Environmental Impacts from On-Demand Delivery: A Literature Review
The boom of e-commerce and the increasing demand for fast and reliable delivery services have led to the thriving of on-demand delivery (ODD), which provides delivery services to food takeout, grocery, pharmacy, and other light-weighted goods. The operational efficiency of ODD is subject to many factors—access to curbside, delays at the pick-up and drop-off locations, order dispatching mode, vehicle routing schedule, and vehicle refueling needs. The fast-growing delivery orders coupled with operational inefficiencies of ODD may lead to higher vehicle miles traveled (VMT) and pollutant emissions. Policymakers as well as practitioners need to evaluate the VMT and emissions impact of ODD, given the consumer behavior, operational paradigm, and business models. This paper conducted a systematic review of the existing literature to synthesize and summarize the impacts of ODD with a specific focus on VMT and emissions. The PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analysis) guideline was employed to systematically search for related studies in multiple databases and to crystallize the review scope. The impact evaluation was delved into three aspects: customer shopping behavior (online shopping vs. in-store shopping), ODD operational strategy (truck/van vs. green vehicles, professional delivery vs. crowdsourcing), and business models (home delivery vs. depot/collection point). Overall, this study found that online shopping with coordinated ODD can achieve significant VMT and emissions reduction compared with in-store shopping. The reduction extent depends on the customer trip chaining, travel mode choice, residential area type, and the ratio of product return. The use of zero-emissions vehicles in ODD, such as electric van/truck/vehicle, cargo-bike, UAV, provides relatively higher emissions reductions, but also brings new issues such as charging needs or capacity limits. Collection points (e.g., parcel locker, retailer store, postal service point) can reduce the VMT and emissions if they are optimally distributed, and customers visit them in zero-emissions modes or through trip chaining.
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- Award ID(s):
- 2152258
- PAR ID:
- 10584657
- Publisher / Repository:
- American Society of Civil Engineers
- Date Published:
- ISBN:
- 9780784485521
- Page Range / eLocation ID:
- 37 to 48
- Format(s):
- Medium: X
- Location:
- Atlanta, Georgia
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript
- Conference Paper:
- https://doi.org/10.1061/9780784485521.004
