Due to the rapid urbanization and the ever-changing consumer demands and the emerging new channels of distribution, urban logistics gets challenged daily. This only refers to the process of optimizing the logistics and transportation activities of private companies and with the support of modern information systems in urban areas. It also takes into account environmental savings, congestion, safety, and energy in the market economy. Urban logistics has evolved since, with the rise of consumers and the constant growth of more supply chains or channels. Indeed, customers will not wait indefinitely for your product. However, if you can provide delivery comfortably, then your unique product differentiation strategy may buy you at the time.
Besides, what is just as important to customers is last-mile delivery integrity. If you commit to delivering to a customer on a specific date, and you meet or beat that commitment, that is more important than speedy delivery.
About: Urban Logistics
Logistics in modern times is the efficient flow and storage of goods from the point of manufacture to consumption. Logistics growth has been steady over the years as more people recognize the importance of logistics to their business. Effective distribution of goods is vital to business growth. Hence, people in the industry are continually looking for a way to improve their logistics coordination through a logistics coordinator. The coordinator here can be a company or by having a single person oversee the logistics process who can be called the logistics manager.
Urban Logistics presents three targets, which include mobility, sustainability, and livability. Versatility is the central component for ensuring smooth and reliable movement, including freight traffic. Durability is necessary for making cities more environmentally friendly, reducing greenhouse gas emissions and decreasing the impact on the local environment. Logistics company plans the logistics process, implement it, and control it as well. Various logistics companies handle part or all of the supply chain functions; however, it depends on the client’s needs or specifications. Coordinating the movement of materials and supplies is now a global process. Since logistics involves the efficient flow of goods as well as the storage of the products, the supply chain, therefore, is essential to the logistics process.
Logistics service provider
Businesses that deal with sales of goods to consumers must find a way to get these goods to their customers. However, concerns about the environmental impact of urban goods transport are growing along with population density and urban congestion. Urban goods transportation includes operators, administrators, and users – configurations that are even more complex than the often changing views of these individuals.
But they have different goals and interests. The urban logistics approach can help solve complicated and difficult problems through intelligent transportation systems (ITS), information, communication technology (ICT), and corporate social responsibility (CSR). The latter will change the behaviour of the private sector.
At the initial stage of the business, you can take the goods to the post office, but as the business grows, it would become more difficult for you. Here is why logistics service providers come in. Logistics service providers are specialized in the management of the shipping process and coordination so that your goods can get to your customers.
The job of the logistics service provider is to make it easier for the logistics carrier to get the cargo or freight. Example of logistics carriers is railroad, trucking company, and parcel/express company.
Logistics supply chain management
Manufacturing businesses often refer to the process of getting goods to consumers as the supply chain. The supply chain management is vital to the manufacturing business, and since most companies rely on manufacturing, supply chain management has become crucial to the corporate world. Logistics supply chain management has four components.
These are integration, operations, purchasing, and distribution. These components depend on one another for a seamless transition, from plan to completion, at an affordable price.
Integration involves collaboration between the manufacturing process rather than working in separate groups. Integration is an essential aspect of logistics planning. Operations, on the other hand, is the backbone of the work manufacturers performs.
It means the monitoring of the manufacturing process to make sure that the work carried is are top quality and are on track. While purchasing is concerned with making sure a company has all they need to manufacture products, including tools, supplies, and equipment.
Distribution is all about making sure that products get to the stores where the customers can see and buy them. For these components to work correctly, you need a well-organized shipping process. Most companies make use of technology in the logistics process.
What the future holds for urban logistics ?
The use of technology in business can’t be overlooked. Most logistics companies work both locally and across different states; without the use of technology, the logistics process would be challenging to manage. The use of technology to assist professionals in the logging business determines the best route to take, handle the complications that can result from combining multiple shipments into one truckload. Technology use makes it easy to even track productivity due to sophisticated analytics now in place.
At the same time, consumer habits aim at on-demand solutions that meet their needs for faster deliveries and put more pressure on current logistics solutions.
Challenges of last-mile service delivery
Customers’ expectations for fast, free shipping get reinforced every day. Ten or twenty years ago, the promise of fast or free shipping got more claimed. Now it has become the customer’s expectation.
One of the challenges in providing last-mile delivery is its complexity. Great products may require quality assembly and disassembly when shipping. Therefore, the sender must rethink how he can ensure that the finished product reflects what is being sold. Although there are hundreds of freight companies from the last-mile, not all installation options offer what can be considered additional services. Other products may require a unique installation by a qualified technician. But large goods are changing from traditional retail models to direct delivery customers; consumers want speed and transparency at every stage.
People continue to meet in urban areas to improve their quality of life – a trend that will undoubtedly continue. Fifty per cent of the world’s population lives in urban areas; with costs expected to increase to more than 60% by 2030. As the world population increases, we will see an increasing need for home delivery services for the elderly.
The urban logistics solution helps reduce the number of passenger cars that drive with limited road network capacity in urban areas. This solution helps to avoid creating additional negative environmental impacts. The urban logistics approach will also make the use of transport vehicles more efficient and introduce economic/regulatory measures. Moreover, there is almost no public transport system for freight transportation; which is why cities rely heavily on urban distribution vehicles and minibuses.
Towards congestion, the expansion of the supply of goods and services for the elderly will gets added. This service will be necessary for the city’s welfare, and the city logistics system can help reduce costs.
Some industrialized countries experience a decline in the overall population; while the proportion of parents is increasing due to lower birth rates and better medical care. Cities can be smaller, but they must be healthier and more acceptable. Some cities implement Smart Downturn – a strategic step to make use of limited space and a more efficient transportation system. Urban logistics can also play an important role here, such as limited access to cars and trucks to city centres. Public transportation can replace cars, and steps such as additional shipping or cooperative freight systems can be used to control truck traffic.
Here logistics service providers play an essential role. They have basic knowledge and experience that is for planning and implementation. However, logistics service providers are often reluctant to engage in public-private partnerships because they compete with businesses and do not want to share customer information and costs. Logistics providers must consider this: Collaboration with senders, residents, and caregivers will enhance their image and acceptance as real partners to make the city healthier and more acceptable.
More effective urban logistics, of course, requires regulation of this sector; and reasonable use in urban areas to ensure smooth traffic and a better environment for all. However, competition does not need to stop.
Some examples include the use of ITS and ICT to enforce traffic regulations and the introduction of management systems such as tolls and prices for heavy goods vehicles with video cameras. Subsidies may be needed to help freight companies and transport companies launch new eco-friendly initiatives that are often expensive to implement. National governments and local authorities must, if necessary, provide support to support new urban hubs and intermodal transport terminals.
In the end, we need to change the attitude of everyone involved if we want to simplify city logistics. You need to realize how important it is to work together in the initial stages of planning. If they do that, they all benefit.
Urban Logistics Role
Urban logistics will play an essential role in increasing the mobility, sustainability, and feasibility of cities in the future. And the older our society, the more critical it is to achieve that goal. To achieve this, all participants in urban freight transportation, including logistics service providers, must join a collaborative framework. Urbanization will continue. With City Logistics, we can ensure that cities are moving, sustainable, and exceptionally friendly.
Logistics Performance Index
The logistics performance index is a collaborative yardstick created by the World Bank to assist countries in identifying the challenges and opportunities they encounter in their performance on trade logistics. The logistics performance index also provides ways they can improve their performance.
Six Areas of Logistic Performance Index
The dimensions are efficiency of the clearance process, quality of trade and transport, ease of arranging priced and competitive shipments and competence and quality logistics service. To understand what constitutes the logistics performance index, you would look at six essential components.
- The efficiency of the clearance process
- Quality of trade and transport-related infrastructure
- Ability to track and trace cargo
- Ease of arranging price competitive shipment
- Face paced loads in reaching the destination with quick delivery.
- Competent and quality of logistics services.
These initiatives aim at increasing co-operation among logistics companies. They also provide new and improved services in the distribution market. The most common form of co-operation is the consolidation of goods to be distributed and collected by different transport operators or suppliers. Compression reduces the number of vehicles needed for delivering the same amount of products; improving the cost-efficiency of transport companies, and reducing the impact on the environment.
It refers to the systems, or method companies use to make the logistics process better. Logistics network optimization is about measuring the number, location, and size of warehouses that are optimal for each business by determining a wide range of implements in the supply chain.
Logistics network optimization usually concerns itself with the supply and sales of finished goods. Its main aim is to get the optimal combination of various warehouses best suited to the client’s needs or specifications.
Network optimization is an essential strategic project in logistics; because it affects the company’s investment in infrastructure and the supply chain as well. The significant advantage of network optimization is cost savings and improvement in service provided.
Solutions to Challenges of Future Urban Logistics
Public authorities and private sectors face many social, economic, and environmental problems; which need to be addressed to meet the evolving challenges of urban logistics.
- Increase environmental awareness and develop regulatory measures;
- More consumer demand for convenience and quality of service;
- Increased traffic and congestion in public spaces (limited loading and unloading space);
- The emergence of new distribution channels and increased complexity of goods;
- Integrate innovation into already complex urban supply chains;
- Various sectors are involved in the policy planning process (government, airlines, residents/users); and often have different views about the logistics location in the future of the city.
With last-mile service delivery, goods must be transported to the recipient as soon as possible. This method of delivery gets driven by an ever-expanding market; and demand for comfortable customer experiences in various industries such as e-commerce, food, retail, and more. Last-Mile shipping is an essential driver for businesses throughout the world. Consumers look for alternatives when their logistics partners offer the best supply chain services available. It’s crucial to build brand loyalty, enabling companies to take a large part of the market.
There is an essential element in the process of sending the last-mile that customers look for; namely speed, timeliness, accuracy, and accuracy of product delivery once they reach the final point.
Logistics is also vital to the efficient storage of products as well as reduce the cost of production. The future of urban logistics is the future of business, and both seem very bright indeed.