Grant Agreement nº.SCS8-GA-2009-234061 Coordination … · Mumbai, India: the Mumbai Dabbawalas. Most of the urban logistic practices that were presented in case studies and that

Grant Agreement nº.SCS8-GA-2009-234061

Coordination and support action (Coordinating)

FP7-TRANSPORT SST.2008.3.1.4. Urban delivery systems

Project acronym: TURBLOG_ww

Project title: Transferability of urban logistics concepts and practices from a worldwide perspective

Deliverable 2

Business Concepts and Models for urban

logistics

Due date of deliverable: 30th of July 2011

Submission date: 6th of October 2011

Start date of project: October 2009 Duration: 24months

TIS.pt – Transportes, Inovação e Sistemas, S.A.

Version 1.0

Project co-funded by the European Commission within the Seventh Framework Programme

Dissemination Level

PU Public X

PP Restricted to other programme participants (including the Commission Services)

RE Restricted to a group specified by the consortium (including the Commission Services)

CO Confidential, only for members of the consortium (including the Commission Services)

TURBLOG D2: Business Concepts and Models for Urban Logistics ii

Foreword

This TURBLOG Deliverable 2 was produced by TIS.PT (Rosário Macário, Maria Rodrigues, and Ana Gama)

and received contributions from the following members of the consortium:

Cesar Lama, PTL UNI, Peru

Paul Timms, ITS Leeds, UK

Marcelo Cintra do Amaral, BHTRANS, Brazil

Geraldo Abranches, BHTRANS, Brazil

Jarl Schoemaker, NEA, Netherlands

Nathaly Tromp, NEA, Netherlands

The review of the document was made by Nathaly Tromp, NEA.

This document is set to be Published and should be referenced as:

“TURBLOG (2011), Transferability of urban logistics concepts and practices from a worldwide

perspective. Deliverable 2: Business Concepts and models for urban logistics”.

QUALITY CONTROL INFORMATION:

Version Date Description

0.1 20/08/2011 Draft version of TURBLOG D2 for partners comments

0.2 10/09/2011 Draft version of TURBLOG D2 after partners comments

0.3 16/09/2011 Final version of TURBLOG D 2

0.4 30/09/2011 Final version TURBLOG D2 for quality control

0.5 5/10/2011 Final version TURBLOG D2 after quality control

Final 1.0 6/10/2011 Submission of TURBLOG D2 final version to the EC

TURBLOG D2: Business Concepts and Models for Urban Logistics iii

TABLE OF CONTENTS

Executive summary .......................................................................................................... 7

1 Introduction ............................................................................................................. 9

1.1 Overview .......................................................................................................... 9

1.1.1 Objective of the report ..................................................................................... 10

1.1.2 Methodological approach of WP2 ......................................................................... 10

1.2 Scope of the report ............................................................................................. 13

1.3 Report structure ................................................................................................ 15

2 Applying business models to urban logistics ...................................................................... 16

2.1 Objectives ........................................................................................................ 16

2.2 Definition of business models ................................................................................. 17

2.2.1 What is a business model? .................................................................................. 17

2.2.2 Why apply business model definition and components to urban logistics? ........................ 17

2.2.3 Business model Theoretical framework .................................................................. 20

2.2.4 Role of Public Policies ...................................................................................... 24

2.3 Methodological approach of business models .............................................................. 25

2.4 Comparison of case studies business models ............................................................... 27

2.4.1 General Comparison of the Case Studies Business Models ............................................ 27

2.4.2 Main findings from the Comparison ....................................................................... 31

3 Definition and establishment of logistic profiles ................................................................ 34

3.1 Objectives ........................................................................................................ 34

3.2 MethodologIcal Approach of logistic profiles .............................................................. 35

3.2.1 City area features ........................................................................................... 36

3.2.2 Product characteristics ..................................................................................... 36

3.2.3 Agents profile / Deliveries profile ........................................................................ 37

TURBLOG D2: Business Concepts and Models for Urban Logistics iv

3.3 Definition and characterisation of the logistic profiles .................................................. 38

3.3.1 Profile A: Cluster of shops specialised in one specific type of service/product .................. 41

3.3.2 Profile B: Hotels, restaurants, small grocery stores, small neighborhood markets .............. 42

3.3.3 Profile C: Business centre .................................................................................. 43

3.3.4 Profile D: Large commercial stores ....................................................................... 44

3.3.5 Profile E: Residential areas with local trade............................................................ 45

3.3.6 Main differences between logistic profiles .............................................................. 46

3.4 Comparison of case studies logistic profiles ............................................................... 48

4 Adjusting business models to logistic profiles .................................................................... 53

5 Identification of dynamic mechanisms for BM implementation and transferability ....................... 56

6 Concluding remarks ................................................................................................... 63

7 References .............................................................................................................. 66

8 Annexes ................................................................................................................. 67

8.1 Annex A ........................................................................................................... 67

8.2 Annex B ........................................................................................................... 67

8.3 Annex C ........................................................................................................... 67

TURBLOG D2: Business Concepts and Models for Urban Logistics v

INDEX OF TABLES

Table 1 – Comparison of Business Models’ characteristics ........................................................... 28

Table 2 – City area features ............................................................................................... 36

Table 3 – Product characteristics ........................................................................................ 37

Table 4 – Agents profile/deliveries profile ............................................................................. 37

Table 5 – Logistic Profiles.................................................................................................. 39

Table 6 – Characteristics of Profile A .................................................................................... 41

Table 7 – Characteristics of Profile B .................................................................................... 42

Table 8 – Characteristics of Profile C .................................................................................... 43

Table 9 – Characteristics of Profile D .................................................................................... 44

Table 10 – Characteristics of Profile E .................................................................................. 45

Table 11 – Comparison between logistic profiles’ characteristics .................................................. 47

Table 12 – Logistic profiles identification and comparison .......................................................... 50

Table 13 - Relationship between Logistic Profiles and Business Models........................................... 53

Table 14 - Combination of Logistic Profiles with the most suitable business models ........................... 54

Table 15 – Comparison of the policies adopted, logistic profile identified, the business model main

characteristics and the impacts evaluation per good practice case study. ................................. 58

Table 16 – Policies according to the combination of logistics profiles with the most suitable business

models ................................................................................................................... 61

INDEX OF FIGURES

Figure 1- Methodological approach of WP2 ............................................................................. 10

Figure 2 - Methodological approach of Work package 2.............................................................. 12

Figure 3 - Selected cities for the case studies ......................................................................... 14

Figure 4 – Agents from urban logistics and land use system ......................................................... 19

Figure 5 – Core areas of a business model .............................................................................. 20

TURBLOG D2: Business Concepts and Models for Urban Logistics vi

Figure 6 – “Business Model” adapted from Osterwalder ............................................................. 21

Figure 7 – Urban Logistics Business Model .............................................................................. 26

Figure 8 – Definition of logistics profile ................................................................................. 34

Figure 9 – Relation between business models and logistic profiles................................................. 54

Figure 10 – Relationship between business models, logistic profiles and impacts from the measures ...... 56

TURBLOG D2: Business Concepts and Models for Urban Logistics 7

EXECUTIVE SUMMARY

From a general point of view the objectives on urban freight can be grouped along the following aspects:

Economic (income, price, market share, system wide effects), Efficiency (minimising transport costs),

Safety, Environmental, Infrastructure. Such dimensions constitute the core issue under which a

comparison of different business concepts and models was undertaken in this research work. For the

characterisation and comparison of business models the Osterwalder’ (2004) business model was used as a

starting point. By applying this business model canvas, the first drawback faced relates to the lack of

reference to externalities which is a very relevant outcome of urban freight transport that cannot be

ignored. Therefore, the business model was adapted to include a 10th building block to cover

“externalities” generated.

Logistic profiles were defined. This concept is based on Macário (2007) who supported the hypothesis

that, within a city, it is possible to identify areas with homogenous groups in terms of logistical needs,

based on three key variables: the urban characteristics of the area, the requirements of the logistic

agents, and the characteristics of the products they transact / type of delivery. Five Logistic Profiles

were defined:

Profile A: cluster of shops specialized in one specific type of service/product;

Profile B: Hotels, restaurants, small grocery stores, small neighbourhood markets;

Profile C: Business Centre;

Profile D: Large commercial stores;

Profile E: Residential areas with local trade;

The application of these two tools for enhancement, together with the cross comparison of the main

impact of the selected measures, enabled us to draw conclusions and identify the following:

Which business models are best targeted for urban logistics;

The logistic profiles of the case studies;

The dynamic mechanisms that can be applied.

Both analyses were elaborated with the different case studies presented in D3 as a reference,

incorporating the following case studies:

Paris, France: Chronopost Concorde, La Petit Reine, Monoprix and the Freight Oriented Urban

Master Plan of Paris;

Utrecht, the Netherlands: four measures that are part of a greater urban distribution policy

package. These are the Low Emission Zone; the City Distribution Centres; the Beer Boat and the

Cargohopper;


Belo Horizonte, Brazil: Requirements of loading and unloading spaces inside companies with

large traffic movements and Internet/telephone sales and deliveries from producer to customer

through planned routes;

Mexico City Metropolitan Area, Mexico: Public policies for urban logistics;

Santiago de Chile, Chile: Abertis Logistics Park;

Tokyo, Japan: Shinjuku joint delivery systems;

Beijing, People's Republic of China: Beijing Tobacco Logistics Centre;

New York, United States of America: Off-hour delivery program programme;

Mumbai, India: the Mumbai Dabbawalas.

Most of the urban logistic practices that were presented in case studies and that were used to test our

methodologies refer to urban city centres (Profile C), which usually face problems such as bad logistic

accesses and high levels of congestion. At the end of this report, the logistic profiles were crossed

referenced with the business models, which were then grouped into three different types of urban

logistics solutions:

Optimisation/Intermodal distribution

Logistic Parks/Centres

Last mile solutions/Micrologistics Centre

From this analysis, it was possible to analyse the relationship between the types of business models, the

types of logistic profiles and the impact evaluations of the measures from the selected case studies.

Furthermore, it was possible to identify the measures with positive impacts and the associated business

models, logistic profiles and policies that allowed the identification of better targeted policies towards

urban logistics.

The main findings of this report show that the most suitable logistic solution is defined not only by the

business characteristics, but also by the delivery, product and city area features (logistic profile), as well

as the policies adopted/to be adopted for the city. It is the combination of these three pillars that

constitute the backbone of the decision making for best urban logistics solutions.


1 INTRODUCTION

1.1 OVERVIEW

Although urban mobility involves the movement of both people and goods, in most cities, those who are

responsible for urban transport policy and planning have historically paid more attention to the

movement of people (developing many explicit ways of facilitation) and less attention to the movement

of goods. In spite of this general observation many cities around the world have tackled aspects of urban

freight in an attempt to solve particular or local issues or have used urban freight policy to help

contribute to the broader transport or urban objectives. As Ogden (1992) states the “explicit

consideration of urban goods movements has the potential to contribute in a useful and positive way to

achieving both the goals of urban transport and some of the broader goals of urban policy and planning”.

As acknowledged by the European Commission Thematic Strategy on Urban Environment, urban freight

represents typically between 20% and 25% of road space use (space used x hours) contributing to between

10% and 20% of urban road traffic (vehicle x kilometres). This clearly highlights how indispensable urban

freight is for the economy of the city, but also how it may significantly affect the attractiveness and

quality of life in urban areas (i.e. noise, pollution, congestion).

From a general point of view the objectives on urban freight can be grouped along the following aspects:

Economic (income, price, market share, system wide effects), Efficiency (minimising transport costs),

Safety, Environmental, Infrastructure and Urban Structure. Such dimensions constitute the core issues

under which a comparison of different business concepts and models will be realised. This will be done

using the different case studies as a reference.

From that assessment, a definition and establishment of logistic profiles will be done. This concept is

based on the hypothesis that, within a city, it is possible to identify areas with homogenous groups in

terms of logistic needs, based on three key variables: the urban characteristics of the area, the

requirements of the logistic agents, and the characteristics of the products they transact / type of

delivery (Macário, 2007). Furthermore, the definition of these profiles will be done taking as the overall

background, its contribution for the urban sustainability, as seen from the 3 P’s perspective - people,

planet, and profit.


1.1.1 OBJECTIVE OF THE REPORT

The objective of this report is to describe the work undertaken under work package 2 and to present the

main findings about the identification of which business models are best targeted for urban logistics, the

identification of the logistic profiles of the case studies and the identification of the dynamic mechanisms

that can be applied for business models implementation and transferability. This will be done using the

selected case studies from Deliverable D3 as a reference.

The main goals are twofold:

Compare the different business concepts and models identified in the different case

studies, taking also into account the different organisational and institutional settings

behind it, and

Contribute to the definition and establishment of logistic profiles taking into account the

three key variables that frame those logistic profiles (agent needs, characteristics of the

urban area and characteristics of the products/type of delivery).

1.1.2 METHODOLOGICAL APPROACH OF WP2

This report compiles the work undertaken in Work package 2 - Business concepts, with which input was

received from the regional reports and case studies and feedback from the workshops. This work package

was composed by 4 tasks, being the last task the synthesis of main findings and good practices was

identified. This last task is the “wrap up” of the other 3 tasks: a) delimitation of scope for business

models and schemes; b) definition of logistic profiles and c) identification of dynamic mechanisms for

business implementation and transferability.

Figure 1- Methodological approach of WP2


To accomplish the objectives presented in chapter 1.1.1, the adopted methodological approach of WP2 is

illustrated in the figure below (see 1.1.2).

Regarding the definition of the business models, a theoretical framework was adapted and the business

model canvas was applied to the case studies on good practices taken from Deliverable D3 (available at

www.turblog.eu), defining the scope and each case study business model.

For the logistic profile definition, a classification scale was determined and five logistic profiles were

established. An excel based tool for the logistic profile identification was designed and applied to all

selected case studies from Deliverable D3.

The application of these two tools for enhancement, together with the cross comparison of the main

impact of the selected measures, enabled us to draw conclusions and identify the following:

• Which business models are best targeted for urban logistics;

• The logistic profiles of the case studies;

• The dynamic mechanisms that can be applied.

http://www.turblog.eu/


Figure 2 - Methodological approach of Work package 2


1.2 SCOPE OF THE REPORT

As it is presented in the previous chapter, this report has applied two different tools - Urban Logistic

Business Model and Logistic Profile Template – to the case studies selected in Deliverable 3 (see figure 2)

to be able to compare business models and logistic profiles:

Paris, France: Chronopost Concorde, La Petit Reine, Monoprix;

Utrecht, the Netherlands: from the four measures that are part of a greater urban distribution

policy package, the selected good practices were: the Beer Boat and the Cargohopper;

Belo Horizonte, Brazil: Internet/telephone sales and deliveries from producer to customer through

planned routes;

Santiago de Chile, Chile: Abertis Logistics Park;

Tokyo, Japan: Shinjuku joint delivery systems;

Beijing, People's Republic of China: Beijing Tobacco Logistics Centre;

New York, United States of America: Off-hour delivery program programme;

Mumbai, India: the Mumbai Dabbawalas.

The definition of the business models is done according to a methodology that cannot be applied to

policies and/or regulations and therefore some case studies could not be considered. Also, the logistic

profile characterisation is done according to the city area features, the agent profile/deliveries profile

and product characteristics, and due to that, some good practices from the case studies could not be

considered as they are not associated to a product or service or to a specific area. This is the case of the

regulations investigated, such as:

Mexico City Metropolitan Area, Mexico: Freight Transport Regulation Programme and Vehicle

Verification Programme (Public policies for urban logistics);

Belo Horizonte: Requirements of loading and unloading spaces inside companies with large traffic

movements;

Paris: Freight Oriented Urban Master Plan of Paris;

Utrecht, the Netherlands: Low Emission Zone; the City Distribution Centres definition.


Figure 3 - Selected cities for the case studies

Source: TURBLOG D3 (2011)


As Deliverable D3 has already been mentioned, it is important to note that there might be better

practices known in other cities or countries in the world. However, the cities mentioned above have

been selected for a number of reasons. First, in order to present a broad variety of urban logistics

practices around the world, both in developed countries as well as in less developed countries. Each

city is also different with regard to its characteristics (for instance size, important economic sectors,

transport infrastructure and traditions). Each case study also presents one or more types of good

practices, which vary from the practices presented in the other case studies. Some of the cases were

also consciously chosen due to the “specialty” of country. For example, Mumbai is well-known for its

lunchbox delivery system and Tokyo for its co-operative distribution systems.

The next chapters describe the work developed in work package 2 and the findings from the results

achieved.

1.3 REPORT STRUCTURE

The structure of this report involves the following chapters. Chapter 2 describes the adopted business

model framework that was applied to the case studies and makes a comparison of the case study

business models.

Chapter 3 consists of the definition and establishment of five logistic profiles based in the a) city area

features, b) product characteristics and c) agents profile/deliveries profile. It also presents the case

studies logistic profile characterisation and their comparison.

Chapter 4 presents how the business models and the logistic profiles are related and identifies the

business models that are more suitable to the logistic profiles established.

Chapter 5 identifies the dynamic mechanisms for business model implementation through the relation

between impact evaluations, business models, and logistic profiles. This relation enables the

identification of the more adequate policies to each business model and logistic profile, according to

the impact evaluation that was made in Deliverable D3.

Finally, Chapter 6 provides the concluding remarks of the work developed within WP2, identifying which

business models are best targeted for urban logistics, the logistic profiles of the case studies and the

dynamic mechanisms that can be applied.


2 APPLYING BUSINESS MODELS TO URBAN LOGISTICS

2.1 OBJECTIVES

The purpose of applying business model concepts to urban freight logistics is derived from the

similarities between the business model definition and components, and the urban freight logistics

processes.

The objective is to identify which business models are best targeted for urban logistics through the

analysis of the business models of the case studies from Deliverable D3 (available at www.turblog.eu).

To accomplish this objective, the case study business models had to be described according to a

common framework – business model canvas from Osterwalder. This methodological framework is

based on 9 building blocks (see chapter 2.2.3), related to a set of parameters that include:

the products and/or services to be provided,

the means by which such products/services will be provided,

the mechanisms by which opportunities could be exploited,

the different actors / agents, roles and relationships,

the financial flows, investments and incentives.

After the description of the business model of each case study, a comparison of the business model

characteristics has been performed in order to compare the different business models from the case

studies, finding similarities and differences among them (see chapter 2.4).

The next chapters present the methodological approach that has been used, adopted definition of the

business model, the rationale of why applying business models to urban logistics, the theoretical

framework for describing the business model of a case study and characteristics that could be

evaluated to compare business models.



2.2 DEFINITION OF BUSINESS MODELS

2.2.1 WHAT IS A BUSINESS MODEL?

Based on the literature review of business models, there is no universal definition, neither consensus

on the definition and components of a “business model”.

Diversity in the available definitions poses substantive challenges for delimiting the nature and

components of a model and determining what constitutes a good model. It also leads to confusion in

terminology, as business model, strategy, business concept, revenue model, and economic model are

often used interchangeably. Moreover, the business model has been referred to as architecture,

design, pattern, plan, method, assumption, and statement. (Morris, M.; Schindehutte, M., Allen, J.

2003)

As no consensus exists for the definition and components of a “business model”, in TURBLOG the

definition from Osterwalder & Yves Pigneur (2010) was adopted where “a business model describes the

rationale of how an organisation creates, delivers, and captures value.”

2.2.2 WHY APPLY BUSINESS MODEL DEFINITION AND COMPONENTS TO URBAN

LOGISTICS?

In general, in urban logistics, it is possible to identify 3 common goals of all agents in urban logistics:

Efficiency of urban freight transportation;

Reduce traffic congestion;

Mitigate environmental impacts.

Although urban mobility involves the movement of both people and goods, in most cities, those who

are responsible for urban transport policy and planning have historically paid more attention to the

movement of people (developing many explicit ways of facilitation) and less attention to the

movement of goods. In spite of this general observation many cities around the world have tackled

aspects of urban freight in an attempt to solve particular or local issues or have used urban freight

policy to contribute to broader transport or urban objectives. As Ogden (1992) states the explicit

consideration of urban goods movements has the potential to contribute in a useful and positive way


to achieving both the goals of urban transport and some of the broader goals of urban policy and

planning.

If we consider that a business model describes the rationale of how an organisation creates, delivers,

and captures value, there is a huge similarity with the urban freight delivery process. In the urban

freight delivery process there is an organisation (private or public or both businesses) creating,

delivering and capturing value through a product or a service.

To a greater degree, the study of urban freight tasks is enormously complex and heterogeneous,

involving an interdisciplinary engagement as a consequence of the difficulty to identify the common

features between the requirements of different users and vehicle operators. Furthermore, urban

freight is strongly interrelated with many other aspects of the urban system: urban passenger system,

land use, regional development, socio-economic environment, employment, etc. Thus, it is necessary,

when considering urban freight planning, to devote some effort towards understanding its integration

within urban mobility planning. As pointed out by Macário and Caiado (2005), acting on urban logistics

domains implies intervening in different aspects of urban mobility management, particularly

institutional, regulatory, social, infrastructural and technological, therefore requiring the joint and

coordinated action of the different stakeholders in the urban logistics arena.

The scheme below illustrates the relationships between the agents related to urban freight, together

with the layers that correspond to the components of transportation and land use systems.

Understanding the relationships between the agents of the logistics activities and the major elements

that influence the urban logistics is very important to know the functioning of the urban system and

define the most feasible “logistic business”.


Figure 4 – Agents from urban logistics and land use system

Source: Rodrigues, 2006

Logistic organisations have no incentive for engaging sustainable solutions, because the costs they are

responsible for are partly supported by the whole society, as externalities. This raises the need for

regulation, so that externalities are properly incorporated in the activities that are causing them.

Understanding their business model could be the basis for a better targeted strategic decision of the

agents and all the different activities involved.

The following chapter presents the business model theoretical framework that was applied to the case

studies to describe the business models.


2.2.3 BUSINESS MODEL THEORETICAL FRAMEWORK

The theoretical background that represents the departure base for our analysis is the business model

framework developed by Osterwalder (2004). This framework has already been successfully applied and

validated in several organisations such as IBM, Delloite, Erickson and so on. The logic within this

methodology is to describe the business model through nine building blocks that show how an

organisation creates, delivers, and captures value.

Influenced by the Balanced Scorecard approach (Kaplan and Norton 1992) and more generally business

management literature (Markides 1999), Osterwalder suggests adopting a framework which emphasises

on the following four areas that a business model should address:

Figure 5 – Core areas of a business model

Infrastructure Management: how the company efficiently performs infrastructural or logistical

issues, with whom and as what type of network enterprise;

Product: what business the company is in, the products and the value propositions offered to

the market;

Customer Interface: who the company´s target customers are, how it delivers their products

and services, and how it builds a strong relationships with them;

Financial Aspects: what is the revenue model, the cost structure and the business models’

sustainability.

Those four areas can be easily transferred to urban logistics, as urban logistics also involves a business

with a product or a service to be delivered from a producer/supplier (that aims to minimise the costs

and increase the profit) to the customer. The four areas described resulted in the 9 building blocks of

the business model that is presented in the figure below. Each building block is described in detail to

create a clear understanding of the application of this tool in the case studies.


Figure 6 – “Business Model” adapted from Osterwalder

According to this framework, on the right side we have the customer and the communication channels

and relationships that are needed for a product/service to reach the customer.

On the left side, we have the organisation/partnerships and the activities and resources needed to

make a product/provide a service.

In the middle we have the most important piece, which is the customer’s needs/whishes and therefore,

what the producer/supplier have to offer – the product/service that are of value to the customer.


For whom is the organisation creating value?

Starting by the right side, the customer segments are defined by the people or groups of people that

the organisation1 aims to reach with their product/service. To better satisfy the customers, an

organisation can group them according to similar needs and behaviours. In TURBLOG, the customer

segment types are: mass market, segmented and multi side market.

What value does the organisation deliver to the customer?

The value proposition corresponds to the product or service that the organisation has to create for the

customer. This is a rather important element because it has to solve a problem and/or satisfy a need.

In TURBLOG, the elements that we considered that can contribute to the value creation are:

performance/efficiency, customization, reliability, price, cost reduction and accessibility.

How does the organisation reach the customer?

The channels can be defined as the ways the organisation uses to get in touch with the customer. The

channels are a valuable communication tool to raise awareness about the product/service, to enable

the customer to buy the product/service, etc. In TURBLOG, three types of channels are considered, the

direct channels (e.g. sales force), the indirect channels (e.g. wholesaler) and the informal channels.

What type of relationship is established between the organisation and the customer?

Besides the channels, the other building block that makes the “bridge” between the value proposition

and the customer is designated by customer relationship and describes the type of relationships that

exists. In TURBLOG three types of relationships are considered: personal assistance, self-

service/automated services and collaborative.

1 For the description of the framework, whenever we would like to mention the producer/supplier of the urban

logistic chain, we will mention the “organisation”.


What value are the customers paying?

The revenue streams describe how an organisation makes money. In TURBLOG, there are three ways of

generating revenues streams, namely: asset sale, service and advertising.

What does the organisation need to create value?

The key resources are the “inputs” that are needed in a business model to make it work. The key

resources can be physical, financial, human and “know how”.

What are the key activities that must be taken?

There are key activities/actions that should be performed so that the organisation operates

successfully. The difference between key resources and key activities is that the resources are often

needed to perform the activities. In urban logistics we consider three types of activities: production,

distribution and supporting activities.

Who are the “organisation” partners?

The “organisation” is often made up of a cooperative network of suppliers/producers/wholesalers/city

authorities and so on that create alliances according to each partner’s needs/wishes, to optimize their

business model, reduce the risk or acquire resources. The type of partnerships can be: strategic

alliances between non competitors, partnerships between competitors, joint ventures to develop new

businesses or buyer-supplier relationships.

What are the costs associated to the business model?

The cost structure represents all the costs incurred by the organisation to run the business model,

namely with the key partnerships, key resources and key activities. In TURBLOG, the costs can be

classified as fixed costs, variable costs, and sunk costs.

The definitions of the elements used to characterise each one of the building blocks used to describe

the business model can be consulted in Annex B.


2.2.4 ROLE OF PUBLIC POLICIES

While the role of private companies (e.g., producer, supplier, transport operators, retailer, etc) is the

production and the transport of urban freight, the role of the public policy is regulation and

facilitation.

The role of the private sector consists in the private initiatives, such as cooperation amongst agents

and can be part of an urban freight transport policy (cooperation between public and private parties),

particularly when public measures are taken to support this. Usually, technology issues and design and

implementation of information systems can be public or private. The implementation of measures can

be supported by making correct behaviour more attractive (financial support and licensing) or by

discouraging other behaviour (pricing and regulation). The implementation of these public policies

makes use of those 3 tools a) pricing, b) licensing and regulation and c) financial support.

Being known in the field of (urban) freight transport it is necessary to contemplate not only the

existence of several types of stakeholders but also a considerable number of public policies. In

TURBLOG the types of public policies considered are:

Enforcement and promotion, e.g. law and regulations enforcement;

Traffic management (+ vehicle), e.g. vehicle size/type and time window restrictions for vehicle

emissions movement standards, subsidies for low emission vehicle, fuel taxes;

Access conditions, e.g. loading and unloading duration, time and access restrictions;

Land use management, e.g. zoning for logistic activities, land use pricing/subsidies;

Public infrastructure, e.g. new infrastructure for freight, truck routes.


2.3 METHODOLOGICAL APPROACH OF BUSINESS MODELS

To fulfil the objective of identifying the business models better targeted for urban logistics, the

canvas described in chapter 2.2.3 was applied to the case studies of Deliverable D3 (available at

www.turblog.eu), identifying the 9 building blocks of each case study and taking into account the

different organisational and institutional settings.

When applying the BM canvas, the first finding is that this business model is profit oriented, however in

urban logistics the cities have other concerns that are translated into policies that imposes that the

business models take environmental and social impacts into account. The policies targeted to urban

logistics that a city can adopt are;

Environmental impacts

o Reduce pollution;

o Reduce the freight vehicles trips (- km);

o Reduce noise;

Social impacts

o Improve the quality of life;

o Reduce accidents;

o Reduce congestion;

o Improve working conditions.

These impacts were considered “externalities” and so the BM was adapted to include a 10th building

block to cover these issues (see the business model adapted to urban logistics in the figure below).



Figure 7 – Urban Logistics Business Model

Source: TIS.PT, 2011

After the definition and application of the canvas to each good practice case study, all business models

were classified according to the categories presented in the table below. This classification enabled

the identification of the main characteristics and allowed the comparison of the business models of

each case study (see Table 11).


2.4 COMPARISON OF CASE STUDIES BUSINESS MODELS

2.4.1 GENERAL COMPARISON OF THE CASE STUDIES BUSINESS MODELS

According to the methodology described above, the analysis and comparison between the several

businesses models presented in the nine case studies from Deliverable D3 has been completed. This

analysis of the business model characteristics was done using the framework developed by

Osterwalder, as a starting point and as presented below.

After the definition and application of the Urban Logistics business model canvas to each good practice

case study, all business models were classified according to the categories presented in the table

below. This table presents a summary of all business models characteristics with the major outputs of

each case study allowing the comparison of the results between all business models. The definitions of

each business model building block classification item is presented in Annex A.


Table 1 – Comparison of Business Models’ characteristics


A Chronopost in Paris , France F Joint del ivery systems in Tokyo, Japan

B Monoprix Rai l Project, Paris , France G Cargohopper in Utrecht, The Netherlands

C La peti te Reine in Paris , France H The Beer Boat in Utrecht, The Netherlands

D Bei jing Tobacco logistics centre, China I Abertis Logistics Park in Santiago, Chi le

E Mumbai Dabbawalas , India J Sale and del ivery from producer to customer in Belo Horizonte, Brazi l

Considering the Key Partners, from all case studies analysed, the Dabbawalas and all the logistic

improvement measures analysed in the Paris and Utrecht case studies were successful because they

were implemented through strategic alliances between the companies and the Municipality. In order to

optimise their services, Beijing Tobacco Centre, Abertis Logistic Park in Santiago and the Joint Delivery

Centres in Tokyo rely on partnerships between competitors. The Mumbai Dabbawalas and the Belo

Horizonte businesses consider sale and delivery of organic products from the producer to the final

consumer and have typical buyer-supplier relationships.


Key Activities were divided into Production, Distribution and Supporting Activities. All logistic

practices analysed consider “distributions” as a key activity, with the exception of Abertis Logistic Park

which only involves warehousing and other supporting activities. Besides the distribution activity, the

Belo Horizonte logistic business also considers production. The Monoprix rail project in Paris and Beijing

Tobacco Centres also comprise more than one activity, adding to the distribution supporting activities,

mainly related to warehousing operations.

Key Resources are mostly physical resources but also human and know-how (Dabbawalas in Mumbai

have their own code system; Abertis Logistics Park in Santiago takes advantage of the most up-to-date

construction standards).

The Cost Structure is very similar in most of these businesses; they all have fixed costs (salaries,

renting and so on.) and variable costs (for example some operating costs such as combustibles).

Logistic measures considering last mile solutions (Paris and Utrecht and Tokyo case studies) also have

sunk costs related with the internalisation of the externalities, as will be further described.

In regards to the Customer Relationship, there are no logistic practices with self-service or automated

services. So, the business models studied have a customer relationship divided into personal assistance

(Chronopost and La Petite Reine in Paris, Mumbai Dabbawalas, Joint Delivery Centres in Tokyo, Belo

Horizonte sale and distribution of organic products) and collaborative (Monoprix in Paris, Beijing

Tobacco Centre, Cargohopper and Beer Boat in Utrecht, and Abertis Logistic Park in Santiago).

Concerning the Customer Segments, most of the logistic practices presented have their businesses

directed towards the mass market. La Petite Reine in Paris and Belo Horizonte analysed and divided

their customers into different segments. As the Cargohopper and the Beer Boat (Utrecht) serve two or

more interdependent Customer Segments, it was considered a “multi-faceted market”.

The most referenced Value Propositions of these businesses is performance/efficiency. However, in

urban logistics solutions cost reductions and accessibility increases are also major targets, especially

concerning logistic Parks such as the Tobacco Centre in Beijing and Abertis Logistic Park in Santiago.

Cost reduction was also a value proposition induced from the Chronopost Case Study business model

(Paris). For the Mumbai Dabbawala customers, the most added value of this service is customisation,

reliability and price of the product.

From the Case Studies presented in Deliverable 3, is not possible to conclude the Channels used in the

Utrecht business models. Monoprix rail project (Paris) and Belo Horizonte organic food sale and


delivery have their own stores. The last practice also sells its products through web force and

wholesalers. The company La Petite Reine in Paris uses its own direct channels and indirect partners

(partner stores/wholesaler), while Chronopost Concord only refers to its own direct channels. Mumbai

Dabbawalas is the only service that relies solely on informal communication with the customer.

The main Revenue Streams are service fees, in some cases supplemented with advertising (Chronopost

Concord and La Petite Reine in Paris, Cargohopper in Utrecht). The exceptions are the warehousing

services with asset sales (Beijing Tobacco Centre and Abertis Logistic Park) and the Beer Boat in

Utrecht.

All of the business models studied present concerns related to the Internalisation of Externalities,

especially concerning congestion and decrease of truck-km.

2.4.2 MAIN FINDINGS FROM THE COMPARISON

In the Mumbai Dabbawalas case study the partnership between the suppliers and Dabbawalas is a co-

operative movement whose communication with the costumer has remained unchanged for decades,

and is exclusively informal, meaning, without any structured communication policy. The urban logistic

practice selected in the case study of Belo Horizonte presents a service that provides organic food

products through planned routes directly from the producer to the final consumer. However, from the

analysis of the different examples of successful urban logistic measures, it is possible to conclude that

most of the innovative business concepts presented rely on partnerships other than the typical buyer-

supplier relationship, with the expectation to improve performance (efficiency) and accessibility of

their services as core value propositions.

Moreover, some business concepts were only effectively implemented because they were sustained by

public administration policies, which provided availability of warehouse spaces or accessibilities and, in

some cases, financial incentives, resulting in partnerships with the municipality or other government

administrations. It is the case of the new Monoprix logistics organisation including a rail segment within

the transport chain, whose feasibility study was conducted on the initiative of the Direction Régionale

de l'Equipement and the Chronopost and La Petite Reine companies, which developed with the

Municipality of Paris the “Urban Logistic Space” concept. In order to meet the municipality

environmental requirements and restrictions, and also looking forward towards improving the service

performance, some companies developed joint ventures to develop these new services. This is also the


case of the La Petite Reine company, which specifically developed the tricycle needed for its business

with a local manufacturer, and the Beer Boat that is operating in the City of Utrecht. The need to

optimise resources and to also obtain other supporting services and infrastructures, leads to

partnerships among competitors, such as in the case study of Japan, where the key partners are

exclusively private. In these cases, the relationship with the costumer (business-business) is called

collaborative, meaning, they share infrastructures and services expecting to exchange knowledge and

problem solving, which are common to other logistic companies.

In these business model comparisons three key activities in urban logistics were considered: Production

(which basically consists in the design and processing of goods subject to a certain service),

Distribution and Supporting Activities such as warehouse renting. With the exception of the Abertis

Logistic Park located in Santiago (Chile), all the businesses considered are mainly focused in the

distribution section of the logistics chain.

Key resources are therefore physical resources but also human and know-how (Dabbawalas in Mumbai

have their own code system, Abertis Logistics Park in Santiago takes advantage of the most up-to-date

construction standards). Some business models combine more than one activity such as the Beijing case

study regarding the Tobacco Logistics Centre, which performs a uniform storage, centralised sorting

and graded distribution of tobacco for the whole city.

This distribution service can be an undifferentiated service, serving a large group of customers with

broadly similar needs and problems (no costumer segments – mass market), by providing differences in

the service considering groups of costumers with similar needs (for example La petite Reine has

containers designed to carry refrigerated goods), or by serving two or more interdependent Customer

Segments, and in this case the customer segment is defined as a multi-faceted market (for example the

Beer Boat in Utrecht serves different Companies according to the day of the week).

Considering the cost structure of the businesses studied, besides fixed and variable costs, in addition,

costs related to the internalisation of externalities, such as environmental and social costs are key

issues. This especially in “last mile” services, due to the strict municipality restrictions concerning

environmental regulations in cities, such as Utrecht and Paris within the city centre. These investments

are sunk costs. The revenues are mainly obtained through service fees, but some cases have advertising

as a second revenue, namely the Cargohopper (Utrecht case study) and the companies Chronopost and

La Petite Reine (Paris case study).


As was already explained, several of the logistics improvement measures had to make investments in

non-pollutant vehicles and noise reduction equipment that represent an increase of their transport

costs but don’t increase their profit, due to environmental regulations and/or circulation restrictions of

the city policies. Therefore, another block was added to the business model named “Internalisation of

externalities”. These externalities represent not only a cost, but also a value proposition for these

businesses once they win a competitive advantage for “being environmentally friendly”: The

Cargohopper is a delivery solution that is allowed to enter into the environmental zone at any time in

the City of Utrecht and the Chronopost Concorde and La Petite Reine have the possibility to rent Urban

Logistic Spaces at low prices because they use green vehicles. These environmental investments are

also used as publicity and as a communication channel with customers and represent revenues to

society in general, once they contribute to the overall environment.


3 DEFINITION AND ESTABLISHMENT OF LOGISTIC PROFILES

3.1 OBJECTIVES

The objective of this chapter to undertake an assessment of the case studie’s best approaches and

more adequate participation formats, in order to define and establish the logistic profiles and the best

solutions for each type.

The logistic profile concept is based on the hypothesis that it is possible to identify, for some well-

defined areas inside a city, reasonably homogeneous groups of logistic needs, based on three key

points: the urban characteristics of the area, the requirements of the logistic agents (i.e., the

requirements concerning the type of delivery), and the characteristics of the products being

transacted. The logistic profile of a given urban area is thus defined by the interaction of these three

key aspects. The definition of the logistic profile can therefore be summarised as a homogeneous group

with similar logistical needs (Macário et al., (2007)).

The starting point of this framework of analysis is the definition of the logistics profile through the

definition and identification of the 3 vertices of the scheme below.

Figure 8 – Definition of logistics profile

Source: Macário et al (2007)


3.2 METHODOLOGICAL APPROACH OF LOGISTIC PROFILES

For the definition of logistic profiles it is necessary to identify the characteristics that will define the

city area features, the products’ characteristics and the deliveries profile in the first phase. For the

characterisation of the city area it is necessary to identify the features that can represent any possible

constraints, but also give a picture of the actual state of the art in terms of logistic conditions, such as

commercial density and homogeneity, logistic accessibility, or if there are any restrictions applied. The

product characteristics are the ones that can determine the type of vehicle to be used or if there are

any restrictions, such as easiness of handling and special conditions; and finally the agents’ needs or

delivery profiles (for example ,frequency and urgency of deliveries).

Second, for the classification of the logistic profiles, it was necessary to set a scale, in order to

quantify (or qualify) each of the features identified. Based on this classification, conditions are met to

identify and characterise the logistic profiles. These logistics profiles intend to be as comprehensive as

possible, so, there are some features considered crucial for the definition of the type of profile, while

others can be left undefined. These undefined features were called “grey areas”. It is however very

important to compare all profiles, to ensure that they are independent from one another.

The purpose of the definition of logistics profiles is to identify what the features are that best suit the

conditions to the definition of the logistics profile. For each of these features a scale was set, as

described in the following sub-chapters.

After the profiles are clearly identified and characterised, the methodology has been applied to the

case studies addressed in D3 (available at www.turblog.eu ). The goal is to define the most appropriate

logistic profile, for each case study, in order to identify what measures optimise the logistics system,

given the characteristics of the area, product and agent or deliveries’ profile. By doing this exercise, it

is possible to take the examples of successful measures in urban logistics, and associate them to the

profiles’ main features, so that in the end it is possible to identify the dynamic mechanisms for

business concepts, implementation and transferability (see chapter 5).



3.2.1 CITY AREA FEATURES

The table below presents the classification of the city area features. For the identification of the

logistic profile, four city area features were considered: commercial density, homogeneity, logistics

accessibility (based on the existence of measures implemented considering logistic needs and on the

traffic congestion), and if there is any kind of restrictions to the deliveries applied (for example time

windows for deliveries).

Table 2 – City area features

1.1. Commercial density Low Medium High

<30% Commercial face to

residencies/services/industry

30% to 70% Commercial face to


>70% Commercial face to


1.2. Homogeneity Low Medium High

Several types of services and products Mix of residential areas with offices

and commercial stores

Cluster of one type of service or

similar products

1.3. Logistic acessibility Bad Reasonable Good

1.3.1. Measures considering

logistic needs

Bad level of access between the shop

and the parking (e.g. no loading bays)

Some specific measures considering

logistic needs (e.g. loading bays non

exclusive)

Transport network suited for the

logistic needs (e.g. exclusive

loading bays)

1.3.2. Level of Congestion High level of traffic congestion

(Commercial speed < 3km/h)

Reasonable (High on peak hours) Low (Fluid traffic - commercial

speed >12km/h)

1.4. Restriction applied Yes No

Off-peak hours, week days, ...

Features Classification

3.2.2 PRODUCT CHARACTERISTICS

The products’ characteristics have a major influence on how the deliveries are made, especially

considering the easiness of handling and the conditions on how the product must be delivered (for

example, type of packaging, temperature needs, etc.), so they are closely connected to the deliveries

profile. The following table presents the classification table for the features considering the products’

characteristics.


Table 3 – Product characteristics

2.1. Easiness of handling Difficult Reasonable Easy

2.1.1. Size Large (wheelbarrow, crane) Medium (> 1 person to carry one unit) Small (>1 unit per person to

carry)

2.1.2. Weight Heavy (wheelbarrow, crane) Medium (> 1 person to carry one unit) Light (>1 unit per person to

carry)

2.1.3. Holding conditions Difficult Reasonable Easy

2.2. Special conditions Special needs Might have special needs No special needs

e.g. valuable products, frozen

products, etc..

e.g. open packages, if food handled

ambient temperature, chilled, etc...

2.2.1. Fragility Fragile Might have special needs No special needs

2.2.2. Perishability Perishable Not perishable

Characteristics Classification

3.2.3 AGENTS PROFILE / DELIVERIES PROFILE

For the deliveries profile, it is important to know the demands of the client in terms of urgency of

deliveries. This will determine the frequency of the deliveries, and, together with the amounts to be

delivered (number of units per shop, number of shops, etc.), explain how the deliveries are made.

Table 4 – Agents profile/deliveries profile

3.1. Urgency of deliveries Irrelevant Relevant Urgent

3.2. Frequency of deliveries Low Medium High

< once a week Several days per week Daily

3.3. Amounts to be delivered Few Several Many

3.3.1. Number of shops One shop Several shops Retail center/big shops

3.3.2. Vehicles weight and size Light goods vehicle or smaller vehicles Van /small truck Heavy goods vehicles

3.4. Planned deliveries No defined routine Defined routine

e.g. after hours deliveries, 8-10 a.m.,

...

Characteristics Classification


3.3 DEFINITION AND CHARACTERISATION OF THE LOGISTIC PROFILES

The objective of the identification and characterisation of the logistic profiles is to clearly identify

similarities between characteristics that are common to various locations, product types and deliveries

profile in order to be able to identify examples of measures that can be transferred and replicated

elsewhere. Taking into account the classification of each of the factors considered in the previous sub-

chapters, five different profiles were established.

For the characterisation of the logistic profiles, there were some features that were considered

determinant to its classification. Most of these features are related with the city area characteristics

such as commercial density and homogeneity, logistic accessibility and restrictions applied to the

circulation of goods vehicles. However, there is one profile that differs from the others, due to the

particularities of perishable products such as grocery articles (greens, fruits and other foodstuffs).

These products are commonly related to grocery stores, markets, cafeterias, restaurants and hotels.

Thus, there were established the following logistics profiles:

Profile A: cluster of shops specialised in one specific type of service/product;





The definition of these profiles intends only to represent one example of one area/type of product that

fulfils the requirements to fit in the profile, in other words, the definitions’ objective is intentionally

as broad as possible, so there are some characteristics that were considered as key features to define

the profile, while others can be left open (considered “grey areas”).


Table 5 – Logistic Profiles

Profile A Profile B Profile C Profile D Profile E

Cluster of shops specialized in one specific

type of service/product: ex. a neighborhood

that is known for furniture stores, craft or art

pieces, technological pole.

Hotels, restaurants, small

grocery stores,

neighborhood markets

Business center (courier, small

deliveries, B2C)

Large commercial (retail,

shopping centers,

distribution warehouses)

Residential areas with local

trade

1.1. Commercial density High Low/Medium/High High High Low/Medium

1.2. Homogeneity High Low/Medium/High Low Low Low/Medium

1.3. Logistic acessibility Good/Reasonable Bad/Reasonable/Good Reasonable/Bad Good Reasonable/Bad

1.4. Restriction applied Yes/no Yes/No Yes No Yes







grocery stores,



deliveries, B2C)


shopping centers,



trade

2.1. Easiness of handling Easy/Reasonable/Difficult Easy/Reasonable/Difficult Easy Easy/reasonable/Difficult Easy/reasonable/Difficult

2.2. Special conditions No special needs/special needs Special needs No special needs Might have special needs Might have special needs

2.2.1. Fragility No special needs Fragile No special needs No special needs No special needs

2.2.2. Perishability Not perishable Perishable Not perishable Not perishable Not perishable

1. City Area Features

2. Product Characteristics








grocery stores,



deliveries, B2C)


shopping centers,



trade

3.1. Urgency of deliveries Irrelevant/Relevant/Urgent Urgent Relevant/Urgent Relevant Irrelevant/Relevant/Urgent

3.2. Frequency of deliveries Low/Medium/High High High Medium/High Low/Medium

3.3. Amounts to be delivered Few/Several/Many Several Few/Several Many Few/Several/Many

3.4. Planned deliveries No defined routine/Defined routine Defined routine No defined routine/Defined routine Defined routine No defined routine

Grey Areas - Features that are not considered relevant for de definition of the Logistics Profile

3. Agent Profile/Deliveries

Profile


3.3.1 PROFILE A: CLUSTER OF SHOPS SPECIALISED IN ONE SPECIFIC TYPE OF

SERVICE/PRODUCT

This profile refers to neighbourhoods known for having specialised shops of one type of product or

service. The city area with this profile can be for example a neighbourhood with several design

furniture shops, crafts or art pieces.

There can be some cases where the establishments and offices have started to arise organically and the

commercial density has increased in a way that the area no longer has the capacity to guarantee a

good logistic accessibility.

The characteristics of this logistic profile are summarised in the following table:

Table 6 – Characteristics of Profile A

Source: Presentation “Business Model Caso Gamarra Perú”, Victor Plaza

Commercial density High

Homogeneity High

Logistic acessibility Reasonable/Bad

Measures considering

logistic needs

Some measures considering logistic

needsLevel of Congestion High/Reasonable

Restriction applied Yes/no

Easiness of handling Easy/Reasonable/Difficult

Special conditions No special needs/special needs

Urgency of deliveries Irrelevant/Relevant/Urgent

Frequency of deliveries Medium/High

Amounts to be delivered Many

Planned deliveries No defined routine/Defined routine

Profile A

Product Characteristics

Agent Profile/Deliveries Profile

City Area Features

Gamarra, being the largest garment factory in Peru,

fits into this profile, as illustrated in the figures

below.


3.3.2 PROFILE B: HOTELS, RESTAURANTS, SMALL GROCERY STORES, SMALL

NEIGHBORHOOD MARKETS

This is the only profile defined exclusively for the products’ characteristics, and not for the city area

features. The establishments belong to the food sector, so, most of the products sold are perishable

and fragile and might have special needs, such as temperature (e.g. frozen products) and conditioning.

These establishments usually require a high frequency of distribution, with daily reposition of the

products, so the timeliness of deliveries is well established (normally early in the morning).

Table 7 – Characteristics of Profile B

Commercial density Low/Medium/High

Homogeneity Low/Medium/High

Logistic acessibility Bad/Reasonable/Good

Restriction applied Yes/No

Easiness of handling Easy/Reasonable/Difficult

Special conditions Special needs

Fragility Fragile

Perishability Perishable

Urgency of deliveries Urgent

Frequency of deliveries High

Amounts to be delivered Several

Planned deliveries Defined routine

Profile B

City Area Features



Source: www.fito.com.br

Organic Product Company in Belo Horizonte, Brazil delivers organic products, mostly greens directly from the producer to the final consumer. Some aspects of the products involved in this practice are the ones that fit into profile B:

High fragility;

Extremely perishable (the products last approximately 4 to 10 days); Difficulty of handling;

The products need to be kept at a specific temperature.

http://www.fito.com.br/


3.3.3 PROFILE C: BUSINESS CENTRE

A central business district (CBD) is the commercial and often geographic heart of a city, usually typified

by a concentration of retail, commercial buildings and offices. It can concentrate all sorts of public

buildings such as administration and social amenities (cinemas, theatres, etc.). It is normally well

connected by public transport, but, once this area is located in the city centre, it is very densely built

and the road traffic levels are very high, especially during peak hours, causing congestion and

therefore the logistic accessibility may not be facilitated. In many cities this Profile can also

correspond to the denominated downtown, or city centre.

In these areas, the products and services are very diverse, so there were considered in this profile the

type of products that are typical in all kind of offices and small businesses, such as courier, small

deliveries, which represent mostly B2C approaches.

Table 8 – Characteristics of Profile C


Homogeneity Low


Restriction applied Yes

Easiness of handling Easy

Special conditions No special needs

Urgency of deliveries Relevant/Urgent

Frequency of deliveries High

Amounts to be delivered Few/Several


Profile CCity Area Features



http://en.wikipedia.org/wiki/Central_business_district

The examples that better illustrate this profile

are the CBD of highly populated cities such as

New York or Singapore.

http://en.wikipedia.org/wiki/Central_business_district


3.3.4 PROFILE D: LARGE COMMERCIAL STORES

The establishments considered in this profile are retailer distribution centres, shopping centres, and

distribution warehouses, meaning, places exclusively dedicated to commercial activities. These

commercial parks have excellent road accesses, even though they are far away from the city centre. In

these cases, it is understood that conditions are met to have good logistics accessibility, once this

cluster was specifically designed for this purpose, and the location was set out considering the logistic

needs. The figure below presents an example of a technological park located in Oeiras, Portugal.

They receive high amounts of goods; the frequencies of deliveries are high and have normally a defined

routine. These establishments have no restrictions applied to the deliveries, and are well equipped in

terms of logistic accessibility.

Table 9 – Characteristics of Profile D


Homogeneity Low

Logistic acessibility Good

Restriction applied No

Easiness of handling Easy/reasonable/Difficult

Special conditions Might have special needs

Urgency of deliveries Relevant

Frequency of deliveries Medium/High

Amounts to be delivered Many

Planned deliveries Defined routine

Profile D

City Area Features



Source: http://www.lagoaspark.pt/

One common example in metropolitan areas

are technological clusters or logistic parks,

which are composed mainly of warehouses

and/or offices and various support facilities

such as hotels, conference centres, health

clubs, food courts, etc…

http://www.lagoaspark.pt/


3.3.5 PROFILE E: RESIDENTIAL AREAS WITH LOCAL TRADE

This logistic profile concerns areas with low commercial densities, meaning, they are predominantly

residential areas (for example residential buildings with commercial stores on the ground floor). These

areas have residential buildings placed in old neighbourhoods that were not planned considering

logistic needs. Therefore, these areas have restrictions towards the deliveries distribution, as they can

affect the level of congestion within these areas, and the logistic accessibility is already difficult due

to the geometry of the streets (lack of loading bays, narrow streets and so on).Also environmental

concerns are associated with the circulation of freight vehicles in these areas, such as noise and air

pollution.

This profile can also represent the neighbourhoods (which are termed here as anchor neighbourhoods),

that function as small townships: they are residential neighbourhoods, but they have a considerable

concentration of trade and services and can function autonomously.

Table 10 – Characteristics of Profile E

Source: http://infohabitar.blogspot.com/2007/03/sobre-o-bairro-de-alvalade-de-faria-da.html

Commercial density Low/Medium

Homogeneity Low/Medium


Restriction applied Yes

Easiness of handling Easy/reasonable/Difficult

Special conditions Might have special needs

Urgency of deliveries Irrelevant/Relevant/Urgent

Frequency of deliveries Low/Medium

Amounts to be delivered Few/Several/Many


Profile E

City Area Features



Alvalade, a neighbourhood located in

Lisbon, Portugal is an example of Profile E -

residential area with commercial

establishments on the ground floor.

http://infohabitar.blogspot.com/2007/03/sobre-o-bairro-de-alvalade-de-faria-da.html


3.3.6 MAIN DIFFERENCES BETWEEN LOGISTIC PROFILES

The table below provides a cross-analysis between the logistic profiles in order to identify what the

main characteristics are that distinguish them, considering the defined characteristics for the city

area, products and type of deliveries. Thus, it is intended to further clarify the distinction of each

profile, and ensure that each type of logistics profile is independent and represents a completely

different reality from the rest. Therefore, this table compares all the profiles two by two in a

symmetric matrix, in order to identify the main differences between them. For example, the main

differences between Profile A and Profile D are city area features, such as commercial homogeneity

and logistics accessibility.

Most of the logistic profiles were defined according to the city area features, and so, these are the

main characteristics that are relevant to the identification of the logistic profile. The only exception is

Profile B, which is distinct due to the products’ characteristics, namely because it refers to perishable

(and therefore also fragile) products.


Table 11 – Comparison between logistic profiles’ characteristics

Profile A: cluster of shops specialized in

one specific type of service/product: ex.

a neighborhood that is known for

furniture stores, craft or art pieces.

Profile B: Hotels,

restaurants, small grocery

stores, neighborhood

markets

Profile C: Business center

(courier, small deliveries,

B2C)

Profile D: Large commercial (retail,

shopping centers, distribution

warehouses)

Profile E: Residential areas with local

trade

Profile A: cluster of shops

specialized in one specific type

of service/product: ex. a

neighborhood that is known for

furniture stores, craft or art

pieces.

Product Characteristics:

Fragility, Perishability,

Amounts to be delivered

City Area Features:

Commercial homogeneity,

Amounts to be delivered

City Area Features: Commercial

homogeneity, logistic accessibility


density and homogeneity

Profile B: Hotels, restaurants,

small grocery stores,


Product Characteristics:

Fragility, Perishability,

special conditions

Deliveries Profile: Amounts

to be delivered

Product Characteristics: Fragility,

Perishability, special conditions

Deliveries Profile: Amounts to be

delivered

Product Characteristics: Fragility,

Perishability

Deliveries Profile: Frequency of

deliveries, timeliness of deliveries

Profile C: Business center

(courier, small deliveries, B2C)

City Area Features: Logistic

accessibility; Restriction applied

Deliveries Profile: Amounts to be

delivered


density


deliveries

Profile D: Large commercial

(retail, shopping centers,



density, logistic accessibility;

restriction applied


deliveries, timeliness of deliveries

Profile E: Residential areas with

local trade


3.4 COMPARISON OF CASE STUDIES LOGISTIC PROFILES

The definition and characterisation of the logistic profiles help to identify the relevant conditionings for

the organisation of the logistics distribution. Through the identification of the conditions that optimise

the logistics system, it is possible to outline the business models that best suit each logistic profile, which

can have several forms.

Therefore, logistic characteristics are induced from the case studies in order to determine which logistic

profile fits into each case study analysed. Further in this report, the logistic profiles, together with the

main characteristics of the business models of each logistic measure analysed, will help to identify the

measures with the most transferability potential according to its main logistic profile features. The table

below presents the comparison between the logistic features of the following good practice examples

taken from Deliverables 3.1 to 3.9 (available at www.tublog.eu):

City of Paris (France):

o Chronopost Concorde;

o La Petite Reine;

o Monoprix Rail Project;

Beijing Tobacco Logistics Centre (China);

Mumbai Case Study (India):

o Mumbai Dabbawalas

Joint delivery systems in Tokyo (Japan);

New York City Off-Hour Delivery Project (USA);

City of Utrecht (The Netherlands);

City of Belo Horizonte (Brazil):

o Sale and delivery of organic products directly from the producer to the customer;

Truck Regulation and the Abertis Logistics Park in Santiago-Chile (Chile);

Regulations investigated, such as the environmental zone in Utrecht and the requirements of loading

and unloading places in Belo Horizonte weren’t considered because they can’t be directly associated

with one type of product or service, as well as a homogeneous area and the city. For that purpose the

Mexico City Case Study also wasn’t considered in this analysis due to the fact that this case study

http://www.tublog.eu/


concerns a set of regulations such as the Vehicle Verification Programme, that are not directly

associated with one type of product or service, as well as a homogeneous area and the city.


Table 12 – Logistic profiles identification and comparison

Chronopost in Paris,

France

Monoprix Rail Project,

Paris, France

La petite Reine in Paris,

FranceBeijing, China Mumbai , India Tokyo, Japan New York, USA

Utrecht , The

Netherlands

Belo Horizonte,

Brasil

Commercial density High Not determined High High High High High Medium High

Homogeneity Low Not determined Low Low Low Low Low Low Low

Logistic acessibility Reasonable Reasonable Reasonable Reasonable Bad Bad Reasonable Reasonable Reasonable

Measures considering

logistic needs

Some specific

measuresSome specific measures Some specific measures

Some specific

measures

Some specific

measures

Some specific

measures

Some specific

measures

Some specific

measures

Some specific

measures

Level of Congestion Reasonable Not determined Not determined Bad Bad Bad Bad Reasonable Reasonable

Restriction applied Yes Not determined Not determined Yes Yes Yes Yes Yes Yes

Easiness of handling Easy Not determined Easy Easy Easy Easy Easy Reasonable Easy

WeightLight (>1 unit per

person to carry)Not determined

Light (>1 unit per person

to carry)

Light (>1 unit per

person to carry)

Light (>1 unit per

person to carry)

Light (>1 unit

per person to

carry)

Small (>1 unit per

person to carry)

Medium (> 1 person to

carry one unit)

Small (>1 unit per

person to carry)

SizeSmall (>1 unit per

person to carry)Not determined

Small (>1 unit per person

to carry)

Small (>1 unit per

person to carry)

Small (>1 unit per

person to carry)

Small (>1 unit

per person to

carry)

Light (>1 unit per

person to carry)

Medium (> 1 person to

carry one unit)

Light (>1 unit per

person to carry)

Holding Conditions Easy Not determined Easy Easy Reasonable Easy Easy Reasonable Easy

Special conditions No special needs No special needs Might have special needs No special needs Special needs No special

needsNo special needs

Might have special

needs Special needs

Fragility Not determined No special needs Might have special needs No special needs Fragile No special needs No special needsMight have special

needsFragile

Perishability Not perishable Not determined Both perishable and not Not perishable Perishable Not perishable Not perishable Not determined Perishable

Urgency of deliveries Not determined Relevant Relevant Relevant Urgent Urgent Relevant Relevant Urgent

Frequency of deliveries High High High High High High High High High

Amounts to be delivered Several Many Few Several Several Several Several Several Several

Number of shops Several shops Retail center/big shops Several shops Several shops Several shops Several shops Several shops Several shops Several shops

Vehicles weight and size Van/small truck Heavy goods vehiclesLight goods vehicle or

smaller vehiclesVan/small truck

Light goods vehicle

or smaller vehiclesVan/small truck Not determined Van/small truck

Light goods vehicle

or smaller vehicles

Planned deliveries Defined routine Defined routine Defined routine Defined routineDefined routine Defined routine

Defined routine Defined routine No defined routine

PROFILE C PROFILE D PROFILE C PROFILE C PROFILE B PROFILE C PROFILE C PROFILE E PROFILE BLogistic Profile

Agent Profile /

Deliveries

Profile

Product

Characteristics

City Area

Features


Most of the urban logistic practices that were presented in the case studies (Deliverable D3) refer to

urban city centres (Profile C) that usually face problems, such as bad logistic accessibility and high levels

of congestion. Also major urban city centres have to deal with the impacts from goods vehicles on the

urban environment, such as noise, congestion and air pollution. Therefore, the logistic measures

identified in Paris, New York City, Beijing and Tokyo concern restrictions towards the circulation of goods

vehicles, such as time windows or vehicle dimensions. In addition, some innovative measures are being

tested as last mile solutions, such as low-emission transport modes introduced by Chronopost and La

Petite Reine in Paris.

Concerning Profile B, the key issue of this profile is the special conditions that the distribution of

perishable goods require, as well as the distribution concerns that are common in most urban centres,

such as congestion during rush hours. The special needs from perishable products may imply temperature

conditions (chilled, frozen, ambient temperature…) or conditioning needs such as, for example, open

packages. Therefore, the urgency of deliveries is very relevant and the frequency of deliveries is normally

high (on a daily basis). In the Mumbai case study some time and access restrictions to the freight

circulation are considered in local transport policies and therefore, the Mumbai Dabbawalas Operation

System is presented as a successful logistics model that cut-crosses these restrictions, because it is based

on door-to-door food delivery services that uses public transport and non-pollutant vehicles (bicycles) for

their daily deliveries. Moreover, the solution presented in the case study Belo Horizonte (Brazil) includes

innovations on Business-to-Consumer approaches, namely the distribution directly from the producer to

the final consumer.

Profile D regards greater amounts of goods to supply large retail shops, such as supermarkets. The

Monoprix rail train was designed to supply all Monoprix’s supermarkets within Paris. This profile is also

applied to big warehouses and distribution centres, as presented in the Santiago do Chile case study. The

Abertis Logistics Park is a modern logistics park located in the Metropolitan Region and has good access to

the main highways of the city and routes to two major ports in the country, with no restrictions applied.

For areas that are predominantly residential (Profile E), the geometry of the streets is, in most of the

cases, not prepared for commercial supply, such as loading bays exclusive for commercial establishments,

especially in historical city centres. In Utrecht, the solutions for urban logistics include private-public

partnerships, programmes between municipalities/groups of municipalities, and municipality regulations

(vehicle restrictions/time windows/city distribution centres/logistic routes). Cargohopper is an example

of a solution for the constraints caused by the geometry of the streets. This train like vehicle produces

zero emissions and is allowed to circulate in the inner city at any time and any place.

There are some logistic measures that are transversal to all logistic profiles, such as the off-hour delivery

programme presented in the New-York case study. These logistic measures can be loading/unloading

regulations or urban master plans which have a wide application within the city. These wide scope


logistic measures can sometimes neutralise other measures that are specific for one determined area,

product or delivery type. In other cases urban regulations can foresee and encourage innovative urban

logistic actions, as for example, the Paris Freight Oriented Master plan, on which the preservation of land

is foreseen, in order to develop logistic facilities with railway or waterway access and the identification

of areas to tranship goods from a boat/ship to a delivery vehicle during certain times of the day.


4 ADJUSTING BUSINESS MODELS TO LOGISTIC PROFILES

The main goal of this chapter is to identify which business model best suits each logistic profile. In order

to fulfil this objective, a comparison was made between the logistic profiles and the business models of

the case studies that were analysed throughout this report.

This comparison can be observed in the table presented below.

Table 13 - Relationship between Logistic Profiles and Business Models

The major outputs that come from this comparison is that last mile solutions are generally a concern of

densely built areas, namely residential areas, offices and commercial activities (Profiles C and E). The

innovative approaches considering Profile B also consider last mile solutions, but in these cases logistic

measures incorporate the entire logistic chain, from the producer to the final consumer. Due to the large

amounts of products that are subjected to the type of businesses considered in Profile D, warehousing


and supporting activities are major concerns and therefore in both cases studies, optimisation solutions,

such as logistic centres with several supporting facilities and good accessibilities, including intermodal

distribution, as the Monoprix rail project in Paris, France are considered.

The analysis of the case studies allows conclusions to be drawn about what the the best solutions are for

each type of logistic profile, as shown in the figure below.

Figure 9 – Relation between business models and logistic profiles

A classification was made to evaluate the suitability of each type of business model considering the

identified logistic profiles (see Table 14). Although there are no examples regarding Profile A, a

classification was also made for this type of Profile. According to its description, it is possible to describe

some Profile A cases as being equivalent to Profile D, but in a less mature stage of development,

considering the solutions for transportation and distribution logistics. Therefore, the logistic improvement

solutions that are most suitable to Profile D, are also adjustable to Profile A. However, in the last case

additional measures will have to be taken into account together with regulation and freight policies.

Table 14 - Combination of Logistic Profiles with the most suitable business models


The suitability of services ranges from:

+++ 'Service well suited to profile' to 0 'Service is not appropriate for this profile

From the table above it is possible to conclude that for logistic profiles that involve a great amount of

goods deliveries (profile A and D), the best business models are the ones that aim to optimise the

distributions, such as intermodal distribution and the concentration of related services in specialised

areas, such as logistic parks/centres, as the successful logistic practices of Monoprix and Abertis Logistic

Park showed.

The case studies that fit into Profile B are the Dabbawalas in Mumbai, and the organic products sale and

delivery in Belo Horizonte, Brazil. These examples present good solutions to deliver perishable products

using alternative modes of transport and to deliver products straight from the producer to the final

consumer. Therefore, business models involving optimisation and intermodal distribution were considered

as the most adequate for this profile.

Profiles C and E usually correspond to areas that face problems related to congestion and accessibility,

and therefore business models regarding last mile solutions are the ones considered with more potential

to be implemented within areas with these features.


5 IDENTIFICATION OF DYNAMIC MECHANISMS FOR BM

IMPLEMENTATION AND TRANSFERABILITY

This chapter describes the process undertaken to identify the dynamic mechanism (or the potential

engine) for business models implementation and transferability. From a certain perspective this task can

be understood as a tool for the evaluation of trade-offs and synergies between urban freight transport,

the urban environment and the urban economy.

From the analysis of the case studies, it was possible to analyse the relationship between the types of

business models, the types of logistic profiles and the impact evaluations of the measures from the

selected case studies. From this relationship, it was possible to identify the measures with positive

impacts and the associated business models, logistic profiles and policies that allowed the identification

of better targeted policies towards urban logistics.

Figure 10 – Relationship between business models, logistic profiles and impacts from the measures

The following table summarises the policies adopted, the logistic profile identified, the business model

main characteristics and the impact evaluations per good practice case study.


The green symbols represent the positive impacts that the selected good practices had. The red symbols

represent negative impacts caused by the implementation of the measures and the grey symbols

represent measures with limited or almost no impacts shown. If the symbols have a pattern, this means

that no quantitative and/or qualitative data was available in the case studies and that an assumption has

been made regarding the impact. The purpose of this comparison is to give a broad overview of the

expected main impacts of the different measures and to show the type of impacts that can be expected

with the application of those measures, with the adoption of that type of policy, according to that

logistic profile and most suitable business model.

As the impact of measures shows, in general, all measures contribute towards making the city more

attractive and the environment more sustainable.


Table 15 – Comparison of the policies adopted, logistic profile identified, the business model main characteristics and the impacts evaluation per good practice case study.

City attractiveness

Transport

costs

reductions

Reduction of

congestion

Efficiency /

Productivity

Decrease of

transport

fleet

Volume of

goods

transported

Accessibility

of vehiclesPollution

(Truck)

-kmNoise Quality of life

Reduction of

accidents

Working

conditions

A

Partnership with Municipality; Clean delivery

vehicles; Delivery centre close to operational

area.

(+) ~ (+) + + (~) (+) + + + (+) (+) +

C

Partnership with Municipality; Clean delivery

vehicles; Delivery centre close to operational

area

La Petite Reine specifically developed the

tricycle needed for its business with a local

manufacturer.

(+) ~ (+) + (-) (~) + + + + (+) (+) ~

B

LAND USE MANAGEMENT

PUBLIC INFRASTRUCTURE

Freight oriented master plan; use of

railway for goods supply

PROFILE D

Agent profile/ Deliveries Profile:

urgency in the deliveries, medium

to high frequency of deliveries and

the amounts to be delivered are

many; defined routine

Monoprix partly supplies its Paris stores with

trains using the passenger trains tracks during

off-peak hours.

(+) - (+) (~) + + (~) + + - (~) (+) +

D

LAND USE MANAGEMENT

Beijing Transport Development

Program (2004-2020)

PROFILE C

City area features: high commercial

density, low homogeneity, bad to

reasonable logistic accessibility,

application of restrictions

The Tobacco Logistics Centre performs a

uniform storage, centralised sorting and

graded distribution of tobacco for the whole

city.

(+) + + + + + (~) + + (+) (+) (+) (+)

E

LAND USE MANAGEMENT


Land use policy measures for traffic

congestion alleviation; new and

expand public transport

infrastructure network

PROFILE B

Products characteristics: special

conditions e.g perishable

Delivery of lunch boxes carried by suppliers

(dabbawalas) where a major part of the door

to door delivery system is done using Mumbai’s

public transport system; Clean home cooked

food at reasonably cheap costs on a regular,

reliable and fast service such that the food is

at least warm when they consume it.

+ + ~ ~ (~) (~) + + + + + - ~

Environmental impacts Reduction of: Social impacts

LAND USE MANAGEMENT

TRAFFIC MANAGEMENT

Urban logistic spaces on city

centre; incentives to innovative

ways of delivery use of clean

vehicles

PROFILE C





Case

StudiesPolicies

Logistic Profile

main characteristicsBusiness Model main characteristics

Economic impacts Transport impacts

Legend:

Positive impacts

Limited or almost no impacts shown

Negative impacts

No quantitative and/or qualitative data was available


City attractiveness

Transport

costs

reductions

Reduction of

congestion

Efficiency /

Productivity

Decrease of

transport

fleet

Volume of

goods

transported

Accessibility

of vehiclesPollution

(Truck)

-kmNoise Quality of life

Reduction of

accidents

Working

conditions

F

ENFORCEMENT AND PROMOTION

Tokyo metropolitan Government is

commited to control the problems

PROFILE C





Partnerships among competitors, the key

partners are exclusively private. The

relationship with the costumer (business-

business) is called collaborative, meaning, they

share infrastructures and services expecting

to exchange knowledge and problem solving,

which are common to other logistic

companies. Carriers wanted to save delivery

time.

(+) (~) + + + (~) (+) + + (+) + (~) (~)

G

The Cargohopper is a delivery solution that is

allowed to enter into the environmental zone

at any time in the City of Utrecht.

+ (~) (+) + (~) (~) + + + (+) (+) + (+)

H

The Beer Boat is a specific vehicle designed

for the water channels of UTRECHT. The

customer segment is defined as a multi side

market ,serves different Companies according

to the day of the week.

+ (~) + (+) + (+) - + + (+) (+) (+) +

I

LAND USE MANAGEMENT


Construction of new road

infrastructure

PROFILE D

Agent profile/ Deliveries Profile:

urgency in the deliveries, medium

to high frequency of deliveries and

the amounts to be delivered are

many; defined routine

Rent of warehouses equipped with services

“keys in hand”; Designing storage centres

tailored to the client particular needs, with

the same construction standards; Offices

rent.

+ (~) (+) + (~) + + + + - + + +

J

ACCESS CONDITIONS

TRAFFIC MANAGEMENT


Time a and access restrictions; time

regulations

PROFILE B

Products characteristics: special

conditions e.g perishable

Belo Horizonte presents a service that

provides organic food products through

planned routes directly from the producer to

the final consumer.

(+) - + + (~) (~) + + (~) + (+) + (~)

Environmental impacts Reduction of: Social impacts

Case

StudiesPolicies

Logistic Profile

main characteristicsBusiness Model main characteristics

Economic impacts

LAND USE MANAGEMENT

ACCESS CONDITIONS

TRAFFIC MANAGEMENT


Environmental with vehicles

restrictions; time windows; access

restrictions; logistic routes;

stimulating clean vehicles;

PROFILE E

City area features: low to medium

commercial density and

homogeneity;logistic accessiility bad

to reasonable; application of

restrictions

Transport impacts

Legend:

Positive impacts

Limited or almost no impacts shown

Negative impacts

No quantitative and/or qualitative data was available


From the case study comparisons, it should be mentioned that the type of policies land use management

and traffic management adopted by business models based in last mile solutions/micrologistics centres

(logistic profiles C and E), present positive environmental impacts. These positive impacts are amongst

others, reduction of pollution, less km travelled by truck, positive social impacts and positive economic

impacts such as city attractiveness, reduction of congestion and efficiency/productivity. All these good

practices combine distribution centres and clean vehicles/ deliveries for the last mile distribution in

residential areas densely built, with commerce and services.

The type of policies adopted in Profile B and D show that land use management and public infrastructure

have a positive impact especially in the environmental impacts and city attractiveness.

The Cargohopper and Beer boat are clean electric vehicles adapted to the city area features (narrow

streets, water channels and restrictions applied (size, type of vehicle and time windows)) and operate

mainly in residential areas, with commercial activities. This logistic profile (Profile E) combines the four

types of policies and presents positive impacts in the city attractiveness, congestion reduction, the

environment and social impacts.

Only two case studies present positive transport costs reduction, namely the case studies from Mumbai

and the Tobacco Logistcs centre and both adopted policies related to land use management (in the case

of the Logistic centre, it also involved public infrastructure).

The following table illustrates which type of policies should be recommended for the combination of

logistic profiles with the most suitable business models, according to the findings from the good practices

that were assessed.


Table 16 – Policies according to the combination of logistics profiles with the most suitable business

models

Combination of Logistic Profiles with the most suitable business model

Profiles PROFILE A PROFILE D PROFILE B PROFILE C PROFILE E

Business models

Policies

Optimization/

Intermodal distribution

Logistic Parks/ Centres

Optimization/

Intermodal distribution

Logistic Parks/ Centres

Optimization/

Intermodal

distribution

Last mile solutions/

Micrologistics centre

Last mile solutions/

Micrologistics centre

Logistic Parks/

Centres

Last mile

solutions/

Micrologistics

centre

ENFORCEMENT AND PROMOTION

TRAFFIC MANAGEMENT

ACCESS CONDITIONS

LAND USE MANAGEMENT


From the table above it can be observed that all combinations of logistic profile + business model have

the common policy land use management. It is a policy that is strongly related with the city planning e.g.

master plan (in some cases, already freight oriented, as the case of the land use public policies for

logistics considering zoning for logistic activities e.g. Utrecht, land use subsidies e.g. Chronopost

Concorde, Monoprix and La Petite Reine, etc.

Last mile solutions/micrologistics centres have a common policy, which is traffic management. This

policy is related to the deliveries to and from micrologistic centres, as usually they are in the city centre

or in residential areas with commerce and services. These areas usually have (or need) vehicle size and

type restrictions, fuel taxes, subsidies for low emission vehicles and so on.

The land use management and public infrastructure policies are usually applied together, as a package of

needed policies. If the type of business is last mile solutions/micrologistics centre, besides these two

policies, then traffic management is also recommended for this package.

For optimisation/intermodal distribution, besides the land use management and the public infrastructure,

it is also recommended that access condition policies; as in the intermodal distribution, loading and

unloading is one of the activities that is repeated in the logistic chain, be considered.

Despite no evidence, we assume that Profile A needs the same type of policies that profile D, but

due to high commercial density, it would be good to have also access condition policies to ensure

that the loading and unloading is improved.


In general, these findings enable us to draft the following recommendations for the successful

implementation of the measures:

For the implementation of logistic parks/centres and micrologistics centres, it is recommended to

adopt land use management policies, to define zoning for logistic activities and land use pricing

and/or subsidies. For logistic parks/centres, it is also recommended to adopt public

infrastructure policies, such as new infrastructure for freight, new transport network

infrastructure, etc;

For the optimisation/Intermodal distribution, the key activities are production and distribution

and the main characteristic of the business model is related to the product characteristics,

therefore the policies related to access conditions and traffic management, together with the

land use management and public infrastructure, have presented a successful implementation of

the measures assessed in this project as good practices;


6 CONCLUDING REMARKS

This deliverable has provided a methodology to identify the dynamic mechanisms for business concepts,

implementation and transferability, based on the case studies addressed in Deliverable D3.

One of the outputs that came from the business model analysis is that the “building blocks” of

Osterwalders’ approach are not sufficient enough to fully understand the motives as to why a logistics

company invests in such innovative solutions. Several of the logistics improvement measures that needed

to be made were investments in non-pollutant vehicles and noise reduction equipment that represent an

increase on their transport costs but don’t increase their profit, due to environmental regulations and/or

circulation restrictions of the city policies. Urban Policies are therefore a major player in the urban

logistics business. Therefore, another block was added to the business model named “Internalisation of

externalities”. These externalities represent not only a cost, but also a value proposition for these

businesses once they win a competitive advantage for “being environmentally friendly”: The Cargohopper

is a delivery solution that is allowed to enter into the environmental zone at any time in the City of

Utrecht, and the Chronopost Concorde and La Petite Reine have the possibility to rent Urban Logistic

Spaces at low prices because they use green vehicles. These environmental investments are also used as

publicity and as a communication channel with customers, and represent revenues to society in general

once they contribute to the overall environment.

From the analysis of the different examples of successful urban logistic measures, is possible to conclude

that most of the innovative business concepts presented rely on partnerships other than the typical

buyer-supplier relationship, with the expectation to improve performance (efficiency) and accessibility of

their services as core value propositions. Moreover, some business concepts were only effectively

implemented because they were sustained by public administration policies, which provided availability

of warehouse spaces or accessibilities and, in some cases, financial incentives, resulting in partnerships

with the municipality or other government administrations (e.g. Monoprix, Chronopost, La Petite Reine).

In order to meet the municipal environmental requirements and restrictions and also looking towards

improving service performance, some companies developed joint ventures to develop these new services

(e.g. La Petite Reine, that developed the tricycle needed for its business with a local manufacturer, and

the Beer Boat that is operating in the City of Utrecht). The need to optimise resources and also to obtain

other supporting services and infrastructures, leads to partnerships among competitors, such as in the

case study of Japan, where the key partners are exclusively private. In these cases, the relationship with

the customer (business-business) is called collaborative, meaning, they share infrastructures and services

expecting to exchange knowledge and problem solving, which are common to other logistic companies.


In the business model comparisons there were three key activities considered in urban logistics:

production, distribution and supporting activities, such as warehouse renting (which basically consisted of

the design and processing of goods subject to a certain service), With the exception of the Abertis

Logistic Park located in Santiago (Chile), all the businesses considered are mainly located in the

distribution section of the logistics chain.

A methodology for the identification of logistic profiles was also developed in this report and five

different logistic profiles were established. Most of the features that were considered relevant for the

definition of a logistic profile are related to the city area characteristics, such as commercial density and

homogeneity, logistic accessibility and restrictions applied to the circulation of goods vehicles. However,

there is one profile that differs from the others, due to the particularities of perishable products such as

grocery articles (greens, fruits and other foodstuffs). The five logistic profiles defined are as follows:

Profile A: Cluster of shops specialised in one specific type of service/product;





An analysis was made to all case studies presented in D3, and to each case study the following logistic

profile was assigned:

Most of the urban logistic practices that were presented in case studies (Deliverable D3) and that were

used to test our methodologies refer to urban city centres (Profile C), which usually face problems such

as bad logistic accesses and high levels of congestion. At the end of this report the logistic profiles were

crossed referenced with the business models, which were grouped into three different types of urban

logistics solutions:

Optimisation/Intermodal distribution

Logistic Parks/Centres


Last mile solutions/Micrologistics Centre

The main findings of this report show that the most suitable logistic solution is defined not only by the

business characteristics, but also by the delivery, product and city area features (logistic profile), as well

as the policies adopted/to be adopted for the city. It is the combination of these three pillars that

constitute the backbone of the decision making for best urban logistics solutions.

After identifying the most suitable business model for each logistic profile, they were then related to the

five types of policies:

Enforcement and promotion

Traffic management

Access conditions

Land use management

Public infrastructure

The main outcome from the relationships of these policies with the urban solutions and logistic profiles

can enable us to draft the following recommendations for the successful implementation of the measures:

For the implementation of logistic parks/centres and micrologistics centres, it is recommended to

adopt land use management policies, to define zoning for logistic activities, land use pricing

and/or subsidies. For logistic parks/centres, it is also recommended to adopt public

infrastructure policy, such as new infrastructure for freight, new transport network infrastructure

and so on;

For the optimisation/Intermodal distribution, the key activities are production and distribution

and the main characteristic of the business model is related to the product characteristics. Due

to this, the policies related to access conditions and traffic management, together with the land

use management and public infrastructure, have presented a successful implementation of the

measures assessed in this project as good practices.

From the analysis it is possible to induce that entrepreneurship is a key factor for the

enhancement of urban freight solutions but it requires also the intervention of public policies to

encourage that entrepreneurship.


7 REFERENCES

LINDER, J. and CANTRELL, S. (2000), Changing Business Models: Surveying the Landscape;

Accenture, Institute for Strategic Change. Accenture; Cambridge, Massachusetts. 2000.

OSTERWALDER, Alexander (2004), The Business Model Ontology - A proposition in a Design

Science Approach, These pour l’obtention du grade de Docteur en Informatique de Gestion.

Ecole des Hautes Etudes Commerciales de l’Université de Lausanne. 2004.

OSTERWALDER A, PIGNEUR Y. (2010), Business Model Generation - A Handbook for Visionaries,

Game Changers, and Challengers. Published by John Wiley & Sons, Inc., Hoboken. New Jersey.

2010.

OSTERWALDER A, PIGNEUR Y. and TUCCI C.L. (2005), Clarifying Business Models: Origins,

Present, and Future of the Concept. Communications of the Association for Information Systems

(AIS) Las Vegas, USA. 2005.

MAGRETTA, Joan (2002), Why Business Models Matter, Harvard Business Review. 2002.

Stähler, P. (2002) Business Models as an Unit of Analysis for Strategizing. International Workshop

on Business Models. Lausanne, Switzerland.2002.

Morris, M.; Schindehutte, M., Allen, J (2003). The entrepreneur’s business model: toward a

unified perspective. Elsevier, Journal of Business Research. 2003.

MACÁRIO R. et al. (2007), Logurb - Optimização de Sistemas Logísticos de Distribuição de

Mercadorias em Meio Urbano - state of the art da logistica urbana, Fundação de Ciência e

Tecnologia, Lisboa, Portugal.2007.

OECD - Organisation for Economic Co-operation and Development Delivering the Goods (2003),

21st Century Challenges to Urban Goods Transport. 2003.

HENSHER, D.A. E PUCKETT, S. M. (2005), Refocusing the modelling of freight distribution:

Development of an economic-based framework to evaluate supply chain behaviour in response to

congestion charging. 2005.

Rodrigue, J. (2006), Freight and the City: An Overview of Urban Freight Distribution and City

Logistics, Maritime Infrastructure Engineering and Management Program, Rutgers University,

April 2006.


8 ANNEXES

8.1 ANNEX A

Definitions of the characteristics of the business models

8.2 ANNEX B

Urban business model canvas of each case study

8.3 ANNEX C

Logistic profile identification of each case study

TURBLOG D2: Business Concepts and Models for Urban Logistics

8.1 ANNEX A

Definitions of the characteristics of the business models

Strategic alliances between non

competitors

Partnerships between competitors

Joint ventures to develop new businesses

buyer-supplier relationships

Production

These activities relate to designing, making, and delivering a product in substantial quantities

and/or of superior quality. Production activity dominates the business models of

manufacturing firms. (Osterwalder, 2010)

Distribution Distribution is also a very important component of Logistics & Supply chain management.

Distribution in supply chain management refers to the distribution of a good from one

business to another. (in wikipedia)

Supporting activities This supporting activities can include warehousing facilities, offices or placing - network

design services. (Osterwalder, 2010)

PhysicalThis category includes physical assets such as manufacturing facilities, buildings, vehicles,

machines, systems, point-of-sales systems, and distribution networks. (Osterwalder, 2010)

Know-how

Know-how is practical knowledge of how to get something done. In the context of industrial

property, know-how is a component in the transfer of technology in national and

international environments, co-existing with or separate from other IP rights such as patents,

trademarks and copyright. (in wikipedia)

financialSome business models call for financial resources and/or financial guarantees, such as cash,

lines of credit, or a stock option pool for hiring key employees. (Osterwalder, 2010)

fixed costsCosts that remain the same despite the volume of goods or services produced. (Osterwalder,

2010)

variable costsCosts that vary proportionally with the volume of goods or services produced. (Osterwalder,

2010)

Sunk costs

In economics and business decision-making, sunk costs are retrospective (past) costs that

have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted

with prospective costs, which are future costs that may be incurred or changed if an action is

taken. Both retrospective and prospective costs may be either fixed (that is, they are not

dependent on the volume of economic activity, however measured) or variable (dependent

on volume). (in wikipedia)

Externalities

In economics, an externality (or transaction spillover) is a cost or benefit, not transmitted

through prices, incurred by a party who did not agree to the action causing the cost or

benefit. A benefit in this case is called a positive externality or external benefit, while a cost is

called a negative externality or external cost. (in wikipedia)

personal assistanceThe customer can communicate with a real customer representative to get help during the

sales process or after the purchase is complete. (Osterwalder, 2010)

self service / automated services

self service provides all the necessary means for customers to help themselves. Automated

services can recognize individual customers and their characteristics, and oΩer information

related to orders or transactions. (Osterwalder, 2010)

colloborativeCostumers share infrastructures and services expecting to exchange knowledge and solve

its'problems, which are common to other logistic companies. (Osterwalder, 2010)

Mass market Large group of customers with broadly similar needs and problems (Osterwalder, 2010)

SegmentedSome business models distinguish between market segments with slightly different needs

and problems. (Osterwalder, 2010)

Multi side market Organizations serve two or more interdependent Customer Segments (Osterwalder, 2010)

performanceImproving product or service performance has traditionally been a common way to create

value (Osterwalder, 2010)

customisationTailoring products and services to the specific needs of individual customers or Customer

Segments creates value. (Osterwalder, 2010)

ReliabilityCustomers trust and therefore find value in using and displaying a specific brand.

(Osterwalder, 2010)

pricelow-price Value propositions have important implications for the rest of a business model.

(Osterwalder, 2010)

cost reduction Helping customers reduce costs is an important way to create value. (Osterwalder, 2010)

risk reductionCustomers value reducing the risks they incur when purchasing products or services.

(Osterwalder, 2010)

acessibility

Making products and services available to customers who previously lacked access to them is

another way to create value. This can result from business model innovation, new

technologies, or a combination of both. Making things more convenient or easier to use can

create substantial value. (Osterwalder, 2010)

Key partners Type of key partnerships

Key activities Categories

Key resources Type of key resource

Cost structure Characteristics of cost structures

Customer relationships Types of relationships

Customer segments Types according the needs, behaviours

Value propositionElements that can contribute to

customer value creation

own direct (sales force/web force); own

indirect/own stores

Owned Channels and particularly direct ones have higher margins, but can be costly to put in

place and to operate. (Osterwalder, 2010)

partner indirect (partner

stores/wholesaler)

Partner Channels lead to lower margins, but they allow an organization to expand its reach

and benefit from partner strengths. (Osterwalder, 2010)

informal

On the other hand, informal approaches recognize that a variety of needs, including social

ones, underlie communication in organizations and that, as a result, the actual

communication relationships in an organization may be less rational than formal systems

(Johnson, 1993).

asset saleThe most widely understood Revenue Stream derives from selling ownership rights to a

physical product. (Osterwalder, 2010)

serviceThis Revenue Stream is generated by the use of a particular service. The more a service is

used, the more the customer pays. (Osterwalder, 2010)

advertisingThis Revenue Stream results from fees for advertising a particular product, service, or brand.

(Osterwalder, 2010)

Channels Type of channels

Revenue StreamsSeveral ways to generate revenue

streams


8.2 ANNEX B

Urban business model canvas of each case study

Case study Mumbai, India

Food suppliers (family

members of clients,

canteens/catering services)

Employees of

dabbawala system

Railway services

Product manufactures,

service providers,

retailers

Delivery of lunch boxes

(or tiffin boxes) carried

by suppliers (Dabbawalas) where a

major part of the door to

door delivery system is

done using Mumbai‟s

public transport system

Punctual and reliable services all working days

of the year, with no

disruption of services.

Clean home cooked food

at cheap costs on a

regular, reliable and fast

service such that the food is at least warm when

they consume it.

The Dabbawala service does not make formal

contracts with its

clientele. The whole system relies on trust.

Service charges for a full

month collected in

advance.

The logistics business

thrives on the Mumbai employees whose needs

are to get a home

cooked meal respecting their culture and tastes.

Logistics service organised

in the informal sector

without any policy measure.

Co-operative movement

whose basic entity is the

Dabbawala.

The main cost items are wages, rail passes and rail

freight charges.

Each is charged between Rs. 400 to Rs. 700 per tiffin

per month for the service depending on customer

requirements, transport distances and economic conditions of the customer. Customised offerings

(larger lunch box, special diet requirements, etc.) are

charged separately.

n.a.

Case study Beijing, China

Food suppliers (family members of clients, canteens/catering services)

Employees of dabbawala system

Railway services

Product manufactures, service providers, retailers

Beijing Tobacco

Logistics Centre

The original district-

level distribution

centres

Cigarette factories,

enterprises and

retailers.

Storage, sorting and distribution of 38 billion

cigarettes for almost 36

thousand retailers in 18

districts and counties of

the city.

52,700m2 of production area, goods yard, parking

place, living area and other

functional areas.

The overall transport routes have been reduced,

the waste of transport

resource caused by “one-

spot with multi-routes” has been eliminated;

Time and energy have

been saved for industrial enterprises, and has been

improved.

The complexity of internal management of

business departments

has reduced. Customer

managers‟ time and energy are saved.

Customers have better

marketing services.

Direct distribution to

70% cigarette retailers within 45km of city (65%

of sales volume of

whole city) and relay-based distribution to

other retailers in

districts and counties

beyond 45km (30% of cigarette retailers of

whole city and 35% of

sales volume of whole

city)

Storage rentals savings, distribution costs were reduced. The number of logistics staffs was reduced,

representing saved costs in labour cost per year. The

distribution vehicles reduced and the direct economic

cost was reduced by 34,626 million Yuan.

Warehouse rent, distribution cost, labour cost, and

operational cost

n.a.

Environmental storehouse

design reducing the environmental load, saving the land through adopting high

shelf storehouse technology; environmental transportation design, scientifically planning the distribution routes,

cutting down the length of transportation routes, reducing transportation

frequency, improving the load ratio of vehicles and saving energy and reducing emissions.

Case study Belo Horizonte, Brazil

COMAM, traders of

supermarkets and

Hypermarkets, shopping centre retailers,

industrial and freight

transport enterprises,

landfills and recycling solid waste´s plants,

racetracks, race courses

and sports stadiums, graveyards, slaughter

houses, prisons,

headquarters, bus

stations, rail and airline transportation, industrial

areas, Belo Horizonte

Municipality, BHTRANS.

Organic products supplier companies – produce, sell

and deliver

Individual Customer and

families - Purchase Supermarkets and

restaurants – Receive the

products and resell Carriers – do the deliveries

Delivery according to

customer purchase order; Fresh products, 2 types of

distribution

Individual Customer,

families and supermarkets

receive healthy and good quality products at home

and in time scheduled.

Customers receive the

products at the defined

place (supermarket,

restaurant or a customer house), on time and with

quality and good

appearance, in practical packages, with a daily

frequency.

The purchase order can be

done by telephone or Internet through the

company website.

Restaurants,

supermarkets and

individual customers.

The customers pay for the products and separately

by the freight. The freight contributes with 5.4% of

the total revenue of this service.

Production, transport and energy. In the case of transport the most important resource are the cars,

and trucks to make the distribution. The delivery

activity is the most expensive.

The measure reduces the

number of movements of

medium and large vehicles

in the city, resulting in Reduction of fuel

consumption and emission

of pollutants; Reduction of noise in the city (e.g.

horns);

Case study Santiago, Chile

Logistics operators, and

the government.

Rent of warehouses

equipped with services

“keys in hand”- Designing storage centres tailored to

the client particular needs,

with the same construction standards.

Rent of offices.

Higher standards of

urbanisation compared to

other storage services.

Connectivity -

The business park development ENEA, and

the location of the

Abertis logistics park, facilitate the interaction

with the city,

The supplier is able to

manage their stock more effectively and take

advantage of scale

economies.

The proposal of the Abertis Logistics Park in

Santiago constitutes

improved support to

storage services compared to those

offered by remaining

suppliers of these

services.

Intensive marketing activity through logistics fairs and

contacting the principal

managers.

International operators

Strong incentives for using less congested routes and

increase occupancy rates in trucks, reducing traffic time

and in turn, capital costs. This benefit stimulates companies to invest in transference and training

technology.

Transport costs associated with the process of the supply chain and capitalisation of the vehicle fleet

available for such purposes. Operation costs for the

business.

The Abertis logistics centre

has developed a series of

measures to ensure that its

activity is compatible with major environmental

concerns such as landscape

integration, collection of waste, the use of

renewable energy;

minimisation of noise

pollution.

Case study Tokyo, Japan

Local carriers, major

logistics companies and

delivery companies

specialised in office

supplies. All of the

stakeholders mentioned

are private enterprises.

Retailers and offices in the

high-rise buildings demand

and receive goods and

services.

Producers (office supplies)

and carriers, major logistics

companies are suppliers of

goods and services.

Higher standards of

urbanisation compared to

other storage services.

Residents - Good living

surroundings. Timely

availability of goods; Visitors

-Attractiveness, good

shopping environment, traffic

safety, accessibility and

parking space; Estate

managers and developers-

Profitability; Carriers-

Accessibility,

adequate infrastructure for

transport operations, cost

efficiency; Business-

Accessibility, atractiveness,

traffic safety

Formal contract. Shinjuku

Matenro Staff sets a

different delivery fee for

each stakeholder

(customer) depending on

the contract.

Shinjuku Matenro Staff

association

Retailers and offices in

the buildings.

Turning to the revenue model, the measure

makes money through the delivery charges,

which varies depending on each contract per

sender.

Operating expenses of fleet, fuels and maintaining the

distribution centre, labour costs.

The environmental aspect

has been a high priority in

this measure. Shinjuku

Matenro Staff started

using four special CNG

trucks from the

beginning.

Case study Utrecht, The Netherlands - Beer Boat

Municipal department of

public works (SW), which includes the port

authority and is

responsible for waste

collection.

Beer companies

Load and deliver beer by

boat

Transport capacity;

The new electric Beer Boat

uses green energy and can be used 8-9 hours on one

charge.

And it is a solution for

complying with labour laws, which prohibit

people carrying barrels

and crates up and down small staircases.

Users of the Beer Boat are

quite enthusiastic, since

they are not dependent on the time windows in

Utrecht anymore.

The Beer Boat is used by 4

different brewers, 1

catering industry

wholesaler and 65 clients. For example, each brewer

uses the boat on a

different day of the week.

The Beer Boat is owned by

the municipality.

Drinks and food to more

catering industries

located along the canals

of Utrecht

The municipality leases the boat to companies

that provide the actual distribution services.

Not all the costs of the electric boat are completely

financed by its yearly income. As the Beer Boat is a service originating from the municipality, the extra costs for the

electric propulsion and equipment of the boat were paid by

the municipality.

Preserves the monumental bridges and roads

surrounding the canals in

Utrecht, but also relieves

the pressure on the traffic in the inner city.

Case study Utrecht, The Netherlands – Cargohopper

The main partners involved are Hoek

Transport and the

Municipality of Utrecht.

The Cargohopper is a multi-

trailer, 16m long yet

narrow, solar powered road train riding on pneumatic

tyres.

Multi-trailer, 16m long, solar powered road train

riding on pneumatic

tyres.

The Cargohopper has zero

emission (3 solar panels on

top of the lorries) and is allowed in the inner city at

any time and any place.

In April 2009 the

Cargohopper was introduced by the Dutch

Minister of Environment.

Cargohopper is not just a transport medium on its

own, but a last critical link

in an existing large logistics

chain.

The Cargohopper works

for shops, companies

and for the citizens of

Utrecht.

Service fee The Cargohopper can also be used as a „public

announcer„, because there is space on the sides

of the vehicle for advertisement.

The initial investment to get the Cargohopper on the

road exceeded the originally estimated amount of

150,000 euros by at least 20%.

n.a.

It removes 122,000 delivery

van kilometers from the inner-city streets per year;

It saves up to 24,000 liters

of diesel fuel per year;

It reduces the emission of CO2 up to 34 tonnes per

year; Less difficult and

time consuming trips to the inner city; A more

attractive city centre;

Increase of traffic safety.

Case study Paris – Chronopost

Chronopost

Municipality of Paris

Other stakeholders

involved:

Fire brigade and a

national body in charge of police enforcement

Electricity distribution

company of France

Ademe (French

Environment and Energy Management Agency)

Express deliveries in the 7th

and 8th boroughs of Paris.

57% of them are deliveries

and 43% are pick-ups.

Provides transhipment

facilities within the city

walls, the Urban

Logistics Spaces (ULS).

It has a hub outside of

Paris and it uses a fleet of electric vehicles for

the final deliveries.

Concorde ULS gives

Chronopost the advantage of being very close to its

clients (city centre).

B2B and B2C. Publicity of Chronocity and electric

vehicles provide a good

image to public.

High density commercial

areas customer with express deliveries of

parcels up to 30kg and

pick up.

1,9

0 m

1,9

0 m

The balance between additional costs and savings

was null. 41.000 km/year of fuel powered vehicles are saved by using electric vehicles. The average gain

for private car parking space location is 80€/m²/year

in Paris.

Chronopost has invested €500,000 in the logistic facility,

including civil work. The City of Paris decided to rent the underground logistic facility at the regional average

price of logistics facilities.

No wasted time in

congestion; decrease of emissions by 16.6 tonnes;

Over one year of activity,

local emissions of NOx had

decreased; The use of electrical vehicles have an

impact on noise emissions

in the city.

Case study Paris – La Petite Reine

La Petite Reine developed

the first Parisian ULS

together with the City of Paris in order to be able to

use tricycles for final

deliveries in the centre of

Paris.

The tricycle manufacturer, LOVELO worked closely with

la Petite Reine since the

beginning of the service.

Today, it is a subsidiary of

the company itself.

La Petite Reine receives

parcels from different companies before the

morning peak hour and

consolidates the parcels by routes and destinations

Final delivery using a

cargocycle.

A 600m² space located at

underground parking

Tricycle made by a local

manufacturer.

Besides the goods pick-up

and delivery, La Petite Reine also offers

advertising on the side and

rear panels of the cargocycle. It also

manufactures its own

cargocycles, and sells or

rents them.

A new image of logistic activities, with a city-

friendly vehicle.

B2B and B2C

Each day, 3,000 business

or home locations are

being served by the 40 drivers of La Petite

Reine.

Subcontractor to major

express delivery companies,

the communication channel was those delivery

companies.

Express deliveries were

the main market segment

(96%) at the beginning (DHL, FedEx and

Chronopost). In 2010 the

core business is

• Letters and parcels for

express courier companies (with the possibility of

advertising on

cargocycles);

• Parcels delivery for mail

orders and e-commerce businesses;

• Parcels delivery for local shops;

• Fresh product deliveries

Each cargocycle delivers 70 parcels per day in average.

About 3,000 locations are served every day. Besides the

goods pick-up and delivery, La Petite Reine also offers advertising on the side and rear panels of the cargocycle.

From 2003 to 2006, the City of Paris applied a very low

price on the rental of the Urban Logistics Space (€4000/year). Since 2007, the price applied has been

60€/m²/year.

Avoided 600,000 tonnes-

km hauled by vans in Paris;

Generated savings of 89 TOE in engine

consumption; Avoied

emissions of 203 tonnes of CO2 and 84 kg of

particles; Reduced noise

pollution.

Paris case study - Monoprix

Monoprix

The City of Paris Direction

Régionale de l'Equipement financed the initial

project‟s feasibility study;

SNCF, the French national

rail operator: owner of the

Bercy logistics facility and whose subsidiary, VFLI,

operates the train.

Urban logistic facilities,

connected to the railway network with good road

connections.

The new Monoprix

logistics organisation

including a rail segment within the transport chain

represents a true

innovation, the first short rail link for urban

deliveries in France.

The new railway link has

been integrated into the

previous logistics organisation: the final

delivery points received

the same quality of

service: same schedules and same frequencies of

deliveries.

Monoprix supermarkets:

300 urban supermarkets in France.

Customer: mass market

Monoprix stores are present in 85% of French cities of more than 50,000 inhabitants, employ 20,000 people

and generate a turnover of 3.6 billion euro (2008).

Feasibility study - Direction Regionale de l'Equipement. The City of Paris paid for the renovation/reconstruction of the

Paris Bercy facility. Financial help given by ADEME for the

CNG lorries‟ fleet. financial help of the Caisse des Depots

bank for investments. Costs per pallet with the road-based organisation and with the rail-CNG lorries. Depreciation of

the investment made on the rail sidings in Combs-la-Ville.

The new scheme was

supposed to suppress the equivalent of 12,000 lorries

every year; save 337 tonnes

of CO2; and cut nitrogen

oxide emissions by 60%, carbon oxides by 65% and

particles by 90%.A local

association of residents complained because of the

noise associated with the

operation of the freight train every night.

n.a.


8.3 ANNEX C

Logistic profile identification of each case study

(Please identify the City Area)

1.1. Commercial density (Please identify the text paragraphs that contain information about this feature)

Monoprix stores are present in 85% of French cities of more than 50,000 inhabitants, employ 20,000 people

and generate a turnover of 3.6 billion euro (2008). Half of Monoprix stores are located in the Paris region,

specifically in the dense urban areas. 65 stores are located within Paris. Recently, stores located in the close

suburban municipalities around Paris have been added to the scheme, and more than 90 stores are now

supplied by the combination of rail and CNG trucks.

Not determined

1.2. Homogeneity (Please identify the text paragraphs that contain information about this feature)

Not determined

1.3. Logistic acessibility (Please identify the text paragraphs that contain information about this feature) Reasonable

1.3.1. Measures considering logistic

needs

In 2004-2005, the Direction Regionale de l'Equipement (State’s regional agency for transport and land use

matters) and the City of Paris were studying how to promote railway for freight transport in the Paris

Region. They decided to finance a feasibility study in order to experiment the possibility to use railway for

goods for the supply of supermarkets. Monoprix accepted to participate in the project.

1.3.2. Level of Congestion

1.4. Restriction applied (Please identify the text paragraphs that contain information about this feature)

Loading operations must be finished by 6:00pm, when the assemblage of the train must start. Yes

(Please identify the type of products)

2.1. Easiness of handling (Please identify the text paragraphs that contain information about this feature)Not determined

2.1.1. Size Not determined

2.1.2. Weight

2.1.3. Holding conditions

2.2. Special conditions (Please identify the text paragraphs that contain information about this feature)No special needs

2.2.1. Fragility All the stores’ non-alcoholic beverages and general goods (textiles, cosmetics and household and leisure

items) are shipped by trainNo special needs

2.2.2. Perishability Not determined

(Please identify the type of agent / deliveries profile)

3.1. Urgency of deliveries (Please identify the text paragraphs that contain information about this feature) Relevant

3.2. Frequency of deliveries (Please identify the text paragraphs that contain information about this feature) High

Products are prepared and palletized for each supermarket following each supermarket’s daily order.

3.3. Amounts to be delivered (Please identify the text paragraphs that contain information about this feature) Many

3.3.1. Number of shops Monoprix is a French retail group (50% subsidiary of Casino and Groupe Galeries Lafayette, two large French

retail groups), with more than 300 urban supermarkets in France.

Retail center/big shops

3.3.2. Vehicles weight and size Monoprix is famous in City Logistics because its Paris stores are now partly supplied by rail. In November

2007, the first Monoprix train ran from Monoprix's suburban warehouses to Paris Bercy rail station, located

in the 12th borough of Paris, within the City’s limits. This represents a 30 km rail link. The Monoprix train

uses passenger trains’ tracks at off-peak hours. From the Paris Bercy terminal, CNG (compressed natural gas)

trucks deliver pallets to the 65 Paris supermarkets. Recently, stores located in the close suburban

municipalities around Paris have been added to the scheme, and more than 90 stores are now supplied by

the combination of rail and CNG trucks.

Heavy goods vehicles

3.4. Planned deliveries (Please identify the text paragraphs that contain information about this feature) Defined routine

(…) it was important that the final delivery points, the supermarkets, be not impacted by the new process

and receives the same quality of service: same schedules and same frequencies of deliveries.

Profile D

3. Agent Profile/Deliveries Profile Please classify the features bellow

according to the classification scale:

According to the table presented in A. classification scale, please fill out the following table:

1. City Area Features Please classify the features bellow


2. Product Characteristics Please classify the features bellow


E. Case Study - Monoprix Rail Project

Definition and establishment of logistic Profiles



The inner city of Utrecht has a centre with canals, many historical buildings and narrow streets. This setting

provides several problems for freight deliveries, such as congestion. On the other hand the canals also

provide an opportunity, such as transport by water. In 2008 Utrecht counted 750 shops and 370 catering

companies (restaurants, cafés, hotels etc.). To deliver goods to these shops 3,700 trips were made each

week to provide 7,500 deliveries. The volume was about 14,700 m3 of goods to the city centre.

Medium


See above. Low



needs

Over the years the city of Utrecht has introduced different measures to decrease the problem of congestion,

improve air quality and improve the quality of life of its inhabitants and visitors. This has been incorporated

in the urban policy of Utrecht. Until around 2000 there was relatively little coherence in the policy measures

of Utrecht in the area of urban distribution. Since 2003 Utrecht has structured its policy and there is a

continuous effort on Utrecht’s behalf to improve the situation of urban distribution.

1.3.2. Level of Congestion The biggest problem that urban transport in Utrecht faces is congestion during rush hours on the highways

around Utrecht and the roads in the inner city and the air quality problems that this congestion causes.


See below Yes


2.1. Easiness of handling (Please identify the text paragraphs that contain information about this feature)Reasonable

2.1.1. Size Medium (> 1 person to carry one unit)

2.1.2. WeightMedium (> 1 person to carry one unit)

2.1.3. Holding conditionsReasonable

2.2. Special conditions (Please identify the text paragraphs that contain information about this feature)Might have special needs

2.2.1. FragilityMight have special needs

2.2.2. PerishabilityBoth perishable and non-perishable Not determined




See above

3.3. Amounts to be delivered (Please identify the text paragraphs that contain information about this feature) Several

3.3.1. Number of shops See above Several shops

3.3.2. Vehicles weight and size See below Light goods vehicle or smaller vehicles


Given the physical characteristics of Utrecht, on some routes in the inner city vehicle restrictions have been

introduced. This involves both length (9 meters) and axis load restrictions in order to avoid (more) damage

to historical cellars and bridges. In addition, time windows have been implemented. These are periods of

time during the day that freight transport in trucks is allowed to take place in a restricted area.

Profile E









E. Case Study - Utrecht



Beijing's most traditional business districts are Xidan Street and Wangfujing Street. With time, many new

business districts have been formed around Beijng's circular urban structure. New business districts continue

to appear, market competitiveness becomes increasingly fierce and "multi-center" characteristics become

more and more apparent. Business districts include: Qianmen Business District, Fuchengmen Business

District, Chaoyangmen Business District, Dongzhimen Business District, Dongdan Business District, Anzheng

Business District, Madian Business District, etc.; Major business districts include: China World Shopping Mall,

Yansha Business District, Wangfujing Business District, Xidan Business District, Zhongguancun Business

District, Ya'ou Business District, etc. Beijing's major business districts centralize in the city center within the

4th Ring Road, resulting in urban logistics traffic bringing great pressure to the urban traffic.

High


See above Low



needs

In June 2005, Beijing municipality promulgated the Beijing Transport Development Program (2004-2020)

which brings forward the target of building up a "new transport system of Beijing", and draws out strategic

approaches, major transport policies and action measures for the achievement of the objectives. It is

regarded as a programmatic document for guiding the formulation of transport policies, transport planning

and implementation plan in the future period.

1.3.2. Level of Congestion Increasingly serious traffic jams have greatly reduced the efficiency of logistics and transport.


A range of transport control measures are stipulated for freight vehicles' access to the city center in Beijing Yes


In Beijing, there are about 36,000 tobacco retailers. Every day, the Beijing Municipal Tobacco Monopoly

Bureau distributes about 12,000 multi-packs (50 bars/multi-pack) of tobacco products for about 7,000

tobacco retailers.

2.1. Easiness of handling (Please identify the text paragraphs that contain information about this feature)Easy

2.1.1. Size Small (>1 unit per person to carry)

2.1.2. WeightLight (>1 unit per person to carry)

2.1.3. Holding conditionsEasy


2.2.1. FragilityNo special needs

2.2.2. PerishabilityNot perishable



see above


see above


3.3.1. Number of shops see above Several shops

3.3.2. Vehicles weight and size see above Van /small truck


see above

Profile C








E. Case Study - Beijing (China)




Belo Horizonte has several regions with an intense concentration of residences and services High


Belo Horizonte concentrates high level of business services and administration services. Retail has also an

important share

Low



needs

There are exclusive loading bays, some distribution center for the big players

1.3.2. Level of Congestion The traffic has a high level on peak hours specially in the city centre


There is a restriction police in the city centre to above five tons trucks Yes


Packages of fruits and vegetables


2.1.1. Size The packages can be carried by one person Small (>1 unit per person to carry)

2.1.2. WeightThe products are very light Light (>1 unit per person to carry)

2.1.3. Holding conditionsThe vegetables are carried in packages Easy

2.2. Special conditions (Please identify the text paragraphs that contain information about this feature)Special needs

2.2.1. FragilityThe products have to be fresh and with good appearance Fragile

2.2.2. PerishabilityVegetables and fruits have a short life time Perishable


3.1. Urgency of deliveries (Please identify the text paragraphs that contain information about this feature) Urgent

Vegetables and fruits have a short life time


The distribuition of the products is Daily


3.3.1. Number of shops Fito has three shops and distributes to several restaurants Several shops

3.3.2. Vehicles weight and size The distribution is done by small vehicles and motorcycles Light goods vehicle or smaller vehicles

3.4. Planned deliveries (Please identify the text paragraphs that contain information about this feature) No defined routine

The route is planned according the number and location of the deliveries

Profile B








E. Case Study - Belo Horizonte



Mumbai, India


The territorial constraints of Mumbai as an island city have created unusually high urban densities.Within

the city limits the average density surpasses the mark of 27,000 people per km2 which can take above

50,000 km2 if built up area is taken into account.

High


De-centralization of commercial areas has been visible in Mumbai but took some years for businesses and

population to relocate. Office relocations in Mumbai have shown some typical trends.

Low

1.3. Logistic acessibility (Please identify the text paragraphs that contain information about this feature) Bad


needs

Measures used in Mumbai for alleviation of traffic congestion have been a mix of landuse policy

measures, development of new public transport infrastructure and expansion of the existing public

transport infrastructure network .

1.3.2. Level of CongestionOver a period of time, a large workforce was travelling to south Mumbai creating increasing levels of road

and rail congestion.

Road traffic density during peak hours in some areas of the city is so high that the average speeds climb

down to as low as 6 – km/hr especially in the areas of Sion, Bandra and Dadar. The

last mile i.e. from railway station to the customer in the CBD area is transported by using handcarts.

Mixed traffic in Mumbai roads to a large extent aggravate congestion problems in the CBD areas during

peak hours. As common road space is utilised by the dabbawalas during morning peak hours for the

movement of the dabbas. This induces congestion especially near the railway station, which marginally

increases average travel times on those arterial roads during their period of operation.


Time and route restrictions on freight vehicles have been the preferred policy measures to relieve

congestion on city roads in India. In the case of Mumbai city, restrictions on hourly and weekly periods of

vehicle movements are regulated by the Mumbai traffic police.

Yes


Lunch boxes


2.1.1. Size The Tiffin box in which the food is kept is made of aluminium in which there are 4 compartment for in

order to keeping different kinds of food separated. The outer container is typically of particular size

although the food box inside the main container can be arranged differently within the main container.

This simplifieds the transport and handling of dabbas with relative ease even in tough metropolitan

conditions like busy road traffic and congested urban rail systems experienced typically in Mumbai.

Small (>1 unit per person to carry)

2.1.2. Weight The work hours are between 8.30 am to 5.00 pm with an appropriate rest period of 2.5 hours. They travel

in the train along with lunchboxes every day. Light (>1 unit per person to carry)

2.1.3. Holding conditions This is physically demanding and strenuous job as each member should be able to carry 30 tiffin boxes

(which could weigh upto 100 kgs) on their head and walk 2-3 km effortlessly. Reasonable

2.2. Special conditions When the Dabbawala knocks the door, the Tiffin box should be ready.

Adverse weather conditions like extreme heat or heavy rainfall may delay the delivery and to a certain

extent there might be special problems like vehicles/rail accidents

Special needs

2.2.1. Fragility The dabbas used by the dabbawalas are made of aluminium casing and therefore the food within is

compactly arranged within a compartmentalised lunch box. Even so, it needs to be ensured that the

dabbas are not dropped or overturned as all the food content may get mixed.

Fragile

2.2.2. Perishability Home cooked food needs to be supplied within a short period of time (typically 2-3 hours) and on time so

that there is no compromise in food condition at the time of deliveryPerishable



The delivery collection of the filled lunch boxes at the homes or canteens have to be ready at the

prescribed time for collection by the assigned by the dabbawalas.


The tiffin suppliers (dabbawalas) deliver daily home-cooked lunches to thousands of workers and

employees in Mumbai. These services are available six days a week i.e. on 25 working days in a month.

There is no disruption to work as long as the Mumbai suburban rail network is functional.


3.3.1. Number of shops A total number of 2,00,000 lunch boxes i.e. 4,00,000 transactions are carried out per day on all working

days throughout the year. The range of customers includes students (both college and school),

entrepreneurs of small businesses, managers, especially bank staff, and mill workers.

Several shops

3.3.2. Vehicles weight and size Each dabbawala visits his customers for tiffin box collection using a fixed route by bicycle or walking.

Light goods vehicle or smaller vehicles


The services include collection, transportation and delivery of lunch boxes from home to office location in

the morning. In the evening the lunch boxes are moved in the reverse direction.

The Suburban Railway services are employed for the main haulage of the tiffins. Every dabbawala buys a

railway pass which allows them to make unlimited trips on designated routes for a period of time.

There are around 5,000 dabbawalas in the system at any moment of time. Each dabbawala is assigned

upto 30 customers in a specific geographical area. The household is expected to keep the lunchbox ready

when the dabbawala reports for collection which is usually between 7.00 am and 9.00 am (Ravichandran

2005). If the lunch is not ready the dabbawala would leave for the next destination. After collecting

approximately 30 such lunch boxes they are brought to the nearest suburban railway station for sorting

and onward transportation.

PROFILE B









E. Case Study - Mumbai Dabbawalas, India


The borough of Manhattan: The New York City is the focus of this case study. The dense concentration of

population and business activity has lead to significant problems for urban freight. Two of the predominant

issues in Manhattan are the level of congestion and the lack of available curb space. (Executive Summary

Pag 1)


Downtown Manhattan is the home to the nation’s financial center, New York City Hall, the State and Federal

court systems, and offices for many state and city governmental agencies. Manhattan, is an island with a

total land area of 59.52 sq km and 1,537,195 people (25,850 people/sq km.) The fact that it is an island has

resulted in the situation in which the majority of freight in New York City is transported by truck. (2.2. Page

3)

High


Location of Central Business Districts (CBD), industrial areas, and neighborhood retail corridors. The two

CBDs in Manhattan are the largest (Midtown) and third largest (Lower Manhattan) CBDs in the country. (2.2

pages 2 and 3)

Low



needs

Most specific problem is connected with effort on curbside (parking) management. ..."with the net effect of

increasing the availability of (priced) parking to commercial vehicles" "time and miles associated with

searching for on-street parking by decreasing occupancy and increasing turnover" ... "time required to find a

parking spot translates into fewer vehicles driving on the street contributing to congestion"...

"predominantly residential and Commercial areas, paid commercial parking. (Paragraph 4.2. page 13 . )..

loading and unloading of goods by commercial vehicles more difficult as, like the case in Midtown, most of

the activity takes place at the curb due to a lack of loading docks. Compounding the problem is the layout of

the street network in Downtown Manhattan. (2.2. page 5)

1.3.2. Level of Congestion In addition to the sheer number of vehicles on the roads, the lack of available curb space significantly

contributes to the level of congestion. During the late morning, the mean service time reaches 1.8 hours. This

is drastically higher than the mean service times that reach as low as 0.5 hours during the off-peak hours

where there are less parking restrictions as well as less vehicles.


Yes


Freight deliveries during the regular hours (5.6. page 18)

2.1. Easiness of handlingThe latter method was the one utilized by half of the participating receivers.

experienced significant benefits that resulted in them requesting unassisted off-hour deliveries even without

a financial incentive being present. (5.6. Page 18) freight deliveries during the regular hours thus reducing

congestion for all network users and improving the competitive position of the region. (5.1. Page 15)

Easy

2.1.1. Size Drop boxes where goods may be left during the off-hours to be retreived during the regular hours, or by the

receiver providing the carrier direct access to their establishment during the off-hours for the purpose of

making deliveries. (5.6. Page 17)

Small (>1 unit per person to carry)

2.1.2. Weight The pilot test of the program showed that receivers utilizing unassisted deliveries during the off-hours(

Executive Summary page 1)Light (>1 unit per person to carry)

2.1.3. Holding conditions Unassisted deliveries are deliveries that do not require the assistance or presence of staff from the receiving

establishment. (5.6.. Page 17)Easy

2.2. Special conditions Unassisted deliveries can take multiple forms such as the use of double doors in a secure area which allows

the carrier to deliver to the secure area without being able to access the establishment, (5.6.. Page 17) No special needs


2.2.2. Perishability Not perishable



Many of the receivers in the pilot test indicated that receiving deliveries during the off-hours helped them to

be more efficient due to the reliability of the delivery times and the reduced number or order errors. This was

particularly evidenced by receivers that decided to utilize unassisted deliveries. These receivers indicated that

unassisted deliveries enabled them to be more productive and efficient in their operations. This is evidenced

by the fact that the majority of receivers utilizing off-hour deliveries continued to do so upon completion of

the pilot test even without the financial incentive. With that said, this was possible due to the trust that the

receivers had for the participating carrier. In a full implementation, security and liability issues will have to

be addressed (6.3.2 Page 23)


see above


3.3.1. Number of shopsA large traffic generator (LTG) is considered to either be a single business that receives a large number of

deliveries (e.g. universities, large hospitals) or a building that houses a large number of individual businesses

that receive deliveries. (6.4.6. page 28).... In Manhattan there are 89 buildings with their own postal code

and these 89 buildings account for 4 percent of the freight deliveries to Manhattan. It should be noted that

there are numerous other buildings that house a large number of individual establishments that were not

identified as LTGs in the study (e.g., Grand Central Terminal, Javits Center) because they did not have a

unique postal code. All total, LTGs could account for as much as 8 percent of the daily freight deliveries in

Manhattan... (6.4.6. page 2

Several shops

3.3.2. Vehicles weight and size see above Not determined

3.4. Planned deliveries (Please identify the text paragraphs that contain information about this feature) Not determined

The program discussed in this report was pilot tested in Manhattan, which is one of the five boroughs that

make up New York City (New York, New York) in the United States of America. Manhattan was chosen for the

program due to its significant level of congestion and the difficulties incurred by the freight industry in

delivering goods in Manhattan. The pilot test was conducted during the end of 2009 and work continues on

developing a larger implementation of the program. The program is a measure designed to reduce

congestion and increase curb availability[1] by encouraging off-hour deliveries. (1.2. Page 2)

Profile C








Regardless of the assumption made, the economic savings are substantial. The savings are even greater

when considering that carriers indicated that the service times were reduced even though the deliveries

tended to be larger during the off-hours. (6.3.1. page 20)


E. Case Study - USA



Tokyo (Tokyo Metropolis) consists of 23 wards (called KU in Japanese) special areas, the tama area and

some small islands. Along with Saitama, Kanagawa and Chiba prefectures, it forms the Tokyo Megalopolis

Region or Greater Tokyo Area.Tokyo's economy is mainly based on tertiary industries (services, wholesale

and retail trade, transport and communication, financial institutes, etc.), with a contribution of about 84.4%.

Similarly, these industries account for about 80% of the total number of establishments and labour force.

More than 80% of the manufacturing enterprises are concentrated in the 23 ward special area. However, the

tama area contains very high valued products and contributes more than 50% of the total shipment value of

Tokyo.

High


See above Low

1.3. Logistic acessibility (Please identify the text paragraphs that contain information about this feature) Bad


needs

Although the problems have shown a downward trend in recent years, the TMG sees them as future urban

transport problems. They are committed to working towards better control over these problems.

1.3.2. Level of Congestion Congestion is a major urban transport problem in Tokyo. Furthermore congestion losses are significantly

higher in the 23 ward special area, which is also the centre of the business activities. On street (on road)

parking of vehicles, including delivery vehicles, is one of the causes of high congestion levels. Due to many

efforts of the TMG, the situation has become slightly better but still the problem of illegal parking continues

to exist in both the freight and passenger transport sectors.


The Tokyo Metropolitan Government (TMG) issued its logistics policy document named "Vision of

Comprehensive Logistics" (VCL) in 2006. Consistent with the national policy, the VCL also aims at efficient

logistics. To achieve these aims five key initiatives were proposed along with many supporting measure.

Yes



2.1.1. Size Goods that Shinjuku Matenro Staff delivers include office supplies such as prints, photocopying paper and

clothes. Small (>1 unit per person to carry)

2.1.2. WeightLight (>1 unit per person to carry)




2.2.2. PerishabilityNot perishable



Some goods require speedy delivery. It used to take 20 to 30 minutes to deliver one package of goods to the

office in the high building in the area. Carriers wanted to save delivery time. In response to the needs,

Shinjuku Matenro Staff offers a service called "Morning 10" that ensures goods are delivered by 10 am if the

goods are brought to their distribution centre by 8 am.


See above


3.3.1. Number of shops Shinjuku area is one of the busiest areas in Japan. The area has more than 20 highrise buildings (over 100 m

high) and more than 130 thousand workers in the offices.

Several shops

3.3.2. Vehicles weight and size Van /small truck


Profile C









E. Case Study - Tokyo (Japan)


"The Abertis Logistics Park is located in the north-western sector of the Metropolitan Region of Santiago

(Pudahuel municipality), inside the ENEA business complex, just 2.2 km from Santiago’s, Arturo Merino

Benítez, International Airport" (5.1 p57)


"The Abertis Logistics Park in Santiago.... encompasses a total area of 632,810 m2, and will house 327,798

m2 of warehouse space for rent and 13,056 m2 for services." ( 5.1 p57). "The project is embedded in the

industrial park ENEA; integrating industries, offices, housing projects, public recreation areas, service

areas, areas for special projects and road zones." (6.3.1 p72)

High


See response to 1.1 Low

1.3. Logistic acessibility (Please identify the text paragraphs that contain information about this feature) Good


needs

"One of the keys to Abertis centre is its connectivity, which would not have been possible without the

recent construction of concessioned highways in Santiago and the inter-urban roadways that connect the

Abertis Logistics Park with ports and the main cities in the central region of the country. In fact, the urban

highways (Costanera Norte, Vespucio Express, Vespucio Norte and Autopista Central), as well as the inter-

urban roadways (Route 5, Route 68, Route 78 and Route 57) that connect the park were raised to the

standard of highway and taken into use during the past decade." (5.5.2 p65) "The company has had to

develop accesses and roads for the integration of the project with the ENEA Park and the community of

Pudahuel, as well as accesses to the Vespucio Express and Costanera Norte highways; which connect with

the city, the V region and Santiago’s International Airport." (6.3.1 p72-73)

1.3.2. Level of Congestion "As a result of a study concerning Urban Transport System Impact (EISTU), it was possible to estimate the

traffic flow to support this project for the time horizon considered necessary to finalise the completion of

construction of the logistical park.... From the flow analysis, the EISTU concluded from a traffic point of

view, that the execution of Abertis Logistical Park was feasible. Even more so considering the privileged

location between highways. Therefore, the logistics centre does not create a negative impact on the

transportation system of the city. " (6.2.1 p67)


No restrictions No


"The Abertis Logistics Park is essentially a storage project, where the principal service consists of the rent

of warehouses. However, the logistic centre will also be equipped with multiple services such as a

restaurant, high-ceilinged offices inside the warehouses, rest areas and restrooms for drivers and a

modern security system which registers who enters and leaves, and the time spent on the premises." (5.4

p61). "The user/client objectives correspond to all those enterprises that require logistics services for

their operations, especially when it comes to warehousing and transport." (5.2 p59). "In general, large

retail groups and pharmaceutical chains would not be the target clients, given that the great majority are

owners of their own logistics companies." (5.2 p59).

2.1. Easiness of handling (Please identify the text paragraphs that contain information about this feature)Not determined

2.1.1. Size Not determined

2.1.2. WeightNot determined

2.1.3. Holding conditionsNot determined


2.2.1. FragilityNot determined

2.2.2. PerishabilityNot determined


3.1. Urgency of deliveries (Please identify the text paragraphs that contain information about this feature) Not determined

3.2. Frequency of deliveries (Please identify the text paragraphs that contain information about this feature) Not determined

3.3. Amounts to be delivered (Please identify the text paragraphs that contain information about this feature) Many

3.3.1. Number of shops Retail center/big shops

3.3.2. Vehicles weight and size Heavy goods vehicles

3.4. Planned deliveries (Please identify the text paragraphs that contain information about this feature) Not determined

Profile D

"The user/client objectives correspond to all those enterprises that require logistics services for their

operations, especially when it comes to warehousing and transport." (5.2 p59).









E. Case Study - Abertis Logistic Park in Santiago, Chile


Paris City Centre La Petite Reine needs to operate from the city centre. In Paris, La Petite Reine is located in

two Urban Logistic Spaces: one in an underground parking close to the Louvre museum (parking Saint

Germain l'Auxerrois) since 2003 and another in an underground parking (parking Saint Germain des Pres) on

the left bank since 2010.


La Petite Reine is a company which developed a new delivery service for densely populated urban

environments (…)

High


When delivering local shops, La Petite Reine assigns a delivery person (always the same) to the customer’s

premises.

Low



needs

From 2003 to 2006, the City of Paris supported the experiment by applying a very low price on the rental of

the Urban Logistics Space.

1.3.2. Level of Congestion


Not determined


Today, in 2010 the core business of la Petite Reine is more varied:

etc.).

Besides this activity of goods pick-up and delivery, La Petite Reine also offers advertising on the side and rear

panels of the cargocycle. It also manufactures its own cargocycles (through a subsidiary – see below) and sells

or rents them.


2.1.1. Size La Petite Reine was founded on the basis that while 80% of its market concern parcels less than 30kg, a little

van weighting more than a tonne is oversized regarding the real needs of the company. Small (>1 unit per person to carry)

2.1.2. WeightLa Petite Reine was founded on the basis that while 80% of its market concern parcels less than 30kg, a little

van weighting more than a tonne is oversized regarding the real needs of the company. Light (>1 unit per person to carry)



2.2.1. Fragility A refrigerated model has been introduced in 2010, which allows for fresh product deliveries as well as medical

products.Might have special needs

2.2.2. Perishability For fresh product deliveries, La Petite Reine stores the products in the ULS and manages inventory and orders.

When delivering local shops, La Petite Reine assigns a delivery person (always the same) to the customer’s

premises.



For fresh product deliveries, La Petite Reine stores the products in the ULS and manages inventory and orders.


Each day, 3000 business or home locations are being served by the 40 drivers of La Petite Reine. For parcels

deliveries, everyday La Petite Reine receives all the goods to be delivered from its customers in the Saint

Germain L’Auxerois ULS.

3.3. Amounts to be delivered (Please identify the text paragraphs that contain information about this feature) Few

3.3.1. Number of shopsIt now makes some 2,500 deliveries every day for clients including DHL, ColiPoste, Monoprix, Dannon and

more. (…) Each day, 3000 business or home locations are being served by the 40 drivers of La Petite Reine.

Several shops

3.3.2. Vehicles weight and size La Petite Reine also maintains a fleet of about 75 cargocycles for hire on demand by businesses that need to

make small to medium-sized urban deliveries over a distance up to 30 km. Weighing only 80 kg (as opposed to

a tonne or more for most delivery vans), each cargocycle can carry about 180 kg of merchandise in its 1,400

litre cargo space.

Light goods vehicle or smaller vehicles


La Petite Reine’s business model is based on the following two key elements:

consolidates the parcels by routes and destinations;

different routes for the final deliveries.

Profile C









E. Case Study - La petite Reine in Paris

Documents

Grant Agreement nº.SCS8-GA-2009-234061 Coordination … · Mumbai, India: the Mumbai Dabbawalas. Most of the urban logistic practices that were presented in case studies and that