Page 149 - Proceeding of Atrans Young Researcher's Forum 2019_Neat

“Transportation for A Better Life:
Smart Mobility for Now and Then”

23 August 2019, Bangkok, Thailand

Fulfillment optimization with Consolidation shopping and ordering food more than they did two
Points using Parcel lockers and PUDO points (pick- years ago. This reveals the rise in commuter
6
up and drop-off) are becoming an attractive commerce and the opportunities for retailers to tap
alternative and efficient way to reduce last-mile into the commuting time of consumers.
delivery costs. By providing a special key or a
barcode scanner, the customer can receive deliveries As e-commerce rise and commuter
in a safe and secure manner. These lockers could commerce emerges, delivery providers are
help reduce the number of failed deliveries and struggling to keep up with the evolving needs of
return of goods by the courier. They would also consumers. A 2016 survey by shipping platform
reduce vehicle mileage, congestion and energy usage company Temando shows that most customers value
7
– resulting in positive impact to city governments, same-day delivery options. A survey by Accenture
retailers and delivery companies. However, parcel also found that the value of flexible delivery and
lockers have a fixed volume and need to be full to be returns is growing. 65% of consumers consider the
5
continually economical. Moreover, these lockers ability to change delivery in-transit to be a key factor
need to be placed at prime locations and are costly to when choosing delivery services. Consumers like
8
build and maintain especially for low-labor markets the flexibility to shop in store and have items shipped
such as Southeast Asia. Therefore, it is essential to home or to have the ordered items shipped to a
enhance their efficiency by optimising locker different location, such as an office, a self-service
utilisation and turnaround time based on real-time locker, or other pickup points. In order to keep up
mobility and location based information captured in with the needs of consumers, retailers are demanding
conventional MaaS platform. faster deliveries from delivery providers. A 2018
survey by Localz found that the top service retailers
Combined with electronic and mobile look for in their last mile partners is next day
commerce functionalities, this concept brings new delivery, with 66% retailer respondents selecting
opportunities, agility and flexibility for consumers to that option, followed by full visibility (57%) and
3
reserve, purchase, collect or even return products on same day delivery (50%).
the go at location and time that is convenient for
them. At the same time, this approach requires 2.2 Current problems with last mile delivery
careful considerations of commuting time and place The last mile might be one of the highest
that may constraint and/or influence their purchasing growth sectors in the logistics industry, but it is also
preferences. This paper aims to highlight the needs, one of the most expensive. Last mile logistics may
findings and opportunities from prospective users in amount to 13% to 75% of the total logistics costs. 9
utilising such services. Currently, the majority of the last mile
business-to-consumer (B2C) delivery services are
2. Literature Review provided by local postal operators. Items are
2.1 Changing needs of consumers delivered and packaged at the retailers’ warehouse,
The time taken during daily commute has then shipped over to local post offices to be delivered
become a productive period for mobile-enabled, by delivery men to the doorstep of consumers. This
affluent commuters and a good opportunity for delivery method is labour intensive and limited by
retailers, a research survey by KBH On-Train Media the number and speed of delivery men available for
revealed. According to the study, vast majority of service. Delivery companies have to increase cost to
travelers (88%) use their smartphones during an decrease delivery time. The implementation of
average journey, with 33% checking their device minimum wages, increasing labour cost and
every couple of minutes. 73% of commuters used decreasing labour supply especially in the developed
their mobile devices to browse for items, while over countries further increases operation cost.
a quarter of commuters (26%) actually made a
purchase during their journey. A survey from Besides manpower problems, delivery
2
mobile agency Fetch confirms that commuters not inefficiencies also reduces the margins of delivery.
only use smartphones to show the quickest way to In Singapore, the delivery failure rate is more than
work, but they also are spending more commuting 15%. Surprisingly, delivery failures occur not only
10
time using their mobile devices to shop and order when recipients were not home but even when they
food ahead, among other activities. Almost half were home, leading to numerous complaints to
(43%) of commuters said they use a smartphone for SingPost, Singapore’s main last mile delivery

124