[ESSEC Knowledge] by Claudia Archetti - Professor in Operations Research. at ESSEC Business School. She is member of the Operations Management & Operations Research (OMOR) Research Cluster.

With Ivana Ljubic and Laurent Alfandari

Abstract

The rapid growth of e-commerce has brought last-mile delivery to the forefront. Customer demands for fast, efficient delivery services create a challenge in optimizing delivery operations, leading to a surge in the number of delivery vehicles in urban areas. This results in increased pollution, congestion, and a decreased quality of life.

Emerging technologies and strategies aim to address this issue, from crowdshipping (leveraging the sharing economy) to integrating public transport systems into freight delivery (Freight on Transit or FOT) during off-peak hours, and utilizing low-emission vehicles, drones, and robots for last-mile delivery.

Optimization and AI-powered analytics play a vital role in making these solutions effective. They help create efficient distribution plans for crowdshipping, assist in the management of FOT initiatives, and optimize the operation of autonomous delivery robots, considering factors such as speed, range, and network structure.

These technologies and approaches are pivotal in reducing pollution and congestion caused by urban freight transportation and making last-mile deliveries more environmentally friendly and sustainable.

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