4thEuropeanConferenceonSustainableUrbanMobilityPlans
29-30March2017
Theimportanceofbusinessmodelsinsustainableurbanfreightini5a5ves
MichaelBrowne-UniversityofGothenburg
VREFUrbanFreightIniIaIve
Outline
• WhyarebusinessmodelsimportantforsustainableurbanfreightiniIaIves?
• HowcanthisapproachhelptoidenIfysomeoftheproblemsweneedtoresolve?
• Whatworks,whatcanwelearnfromexperienceandwhatcanwechange?
Whyisabusinessmodelimportant?
• Everythingchanges–needtobeadaptable• InurbanfreightandcitylogisIcspublicfundingisincreasinglylimited
• Asoundbusinessmodelleadstolonger-termimprovements
• ThequesIonofscalecanbeaddressed
CanweidenIfysomeoftheproblems?• Product
– ValueproposiIon• Customerinterface
– Customersegments– Channels– CustomerrelaIonship
• Infrastructuremanagement– KeyacIviIes– Keyresources– Keypartnerships
• Financialaspects– Coststructure– Revenuestreams
Theninebusinessmodelbuildingblocks(OsterwalderandPigneur2009)
ProductandthevalueproposiIon• SomeImeslackclarityaboutthepurpose
– TrafficreducIon– CO2/airquality/noise
• Definingwhogainsvalue– Shipper– Receiver– Carrier– Resident….
…andhowvaluewillbeshared…
Vehicles,systems,infrastructure,operaIons…InsetLoadingBay:London Cargotram:Dresden Consolida5on
Electricvehicle:RegentStreet
EspaceLogis5quesProximité:Bordeaux
Customerinterface• Customersegments
– Manysectorswithdifferentneeds–incitylogisIcshighlevelofabenIononretailing
• Channels– Complexity(relatedtotheabove)– Controlandpowerinthechannel–maybewefocustooocenonthecarrier
• CustomerrelaIonship– ContracIngandsub-contracIng– FragmentaIonofflows
Source:TransportforLondon
Infrastructuremanagement• KeyacIviIes
– SpaceuseinciIeschangingdramaIcally–logisIcssprawl,densificaIon,retail/e-commerce
• Keyresources– Infrastructureforurbangoodsmovementandservicesisbothprivateandpublic
• Keypartnerships– Theroleofpublic-privatepartnershipsinmanyformsisimportant
Salesbystoresande-commerceforecast2010-2020(billionsUKpounds)
EveningStandard28May2013
Revenueearningandchangingbehaviour
DeliveriesandlockerboxesatstaIons
MorespaceavailableasIcketofficeusechanges
Financialaspects
• Coststructure– IniIaIvesincitylogisIcsocenarguedtoincreasecosts
• Revenuestreams– Addedvalueservicesareocendiscussed
KeyquesIonalsoabouttheallocaIonandtransferofcostsandrevenues
Weknowthingscanbedifferent…
• EmissionsandcongesIoncanbereduced• ImproveduIlisaIon,beberrouteingandbeberuseofspace
• ConsolidaIonofflowsispossible–notonlythroughconsolidaIoncentresbutalsobysupplychainacIons
• Workingtogethertoachieveresults
NearbyiniIaIves:Gothenburg
TheGuardian,18November2015
Motomachi shopping street
CNG truck for cooperative freight transport
Parking area for cooperative freight transport
Source:EiichiTaniguchi
Furtheraway-CooperaIvefreighttransport-Japan
NewYorkCitySource:JoséHolguin-Veras,2014
Somewhereinbetween:London
0
1
2
3
4
5
6
7
8
9
10
Percentageshareofd
ailyto
tal
2011averageday
Paralympics
Olympics
Lorries(3.5tonnesorover)entering/leavingcentralLondon
SharingspaceinLyon
Source:DianaDiziain,GrandLyon
Freightnetworksandpartnerships
• Gothenburg• Paris• London• Philadelphia• EastOsaka• Brussels• Copenhagen
CIVITASCITYLABCityLogisIcsinLivingLaboratories
WeknowwehavetokeepchangingthingsinciIes• Flows(ofbothgoodsandvehicles)• TheuseofIme• Howspaceisusedandallocated• BehaviourandpercepIons
…anddoitinawaythattakesaccountofmanyinterests
WhyGoodsMovementMaKers:StrategiesforMovingGoodsinMetropolitanAreas
AcIons• Complexity:Useit–combinesoluIonsandimproveunderstanding
• Integratedapproaches:makesurefreightandmobilityareconsideredtogetherinplanningfromthestart
• Scale:Buildandreinforcenetworks–notone‘bigthing’butmany–usethemanyexisIngexamplesandnetworks
• Behaviourchange:lookforgoodpracIce,eventsandIppingpoints
• Inspirechangeandsupportlinks:o Research–Industry–PublicauthoriIes
Thankyou
AcknowledgementsWithacknowledgementsto:(1)IanWainwrightfromTransportforLondon
fortheinformaIonandslidesonFreightinLondon(2)Dr.DanièlePaIer(LET)forslidesontheELP(3)Prof.EiichiTaniguchi(KyotoUniversity)forslidesaboutJapan(4)Prof.JoséHolguin-VerasforslidesaboutoffhoursdeliveryNewYorkCity(5)DianaDiziainfortheslideoniniIaIvesinLyon.However,anyviewsandcommentsexpressedinthepresenta5onarethoseofthepresenter–MichaelBrowne.MichaelBrowneProfessorofLogisIcsandUrbanFreightTransportUniversityofGothenburgDepartmentofBusinessAdministraIonSchoolofBusiness,EconomicsandLawBox610,SE-40530Gothenburg,Sweden
email:[email protected]:+46317866798
1) Urban Freight Platform an initiative at University of Gothenburg and Chalmers supported by the Volvo Research & Educational Foundations (VREF): http://www.chalmers.se/en/centres/lead/urbanfreightplatform/Pages/default.aspx
VREF Urban Freight Conference, Gothenburg (17-19 October 2016) Information and presentations at: http://www.chalmers.se/en/centres/lead/urbanfreightplatform/vrefconf16/Pages/default.aspx
2) Center of Excellence: Sustainable Urban Freight Systems (supported by VREF) for webinars and other information available see: https://www.coe-sufs.org/
3) METROFREIGHT Center of Excellence (supported by VREF) for more information see: http://priceschool.usc.edu/metrofreight-the-localglobal-challenge-of-urban-transportation-planning/
4) Why Goods Movement Matters - by the RPA in collaboration with the VREF (2016)
http://www.vref.se/publications/researchsynthesisreports/researchsynthesisreports/whygoodsmovementmattersbytherpaincollaborationwiththevref.5.1feeef8b156cfde87aa3d60e.html
Interactive website: http://goodsmovementmatters.org
LinksandfurtherinformaIon
Sources/references• Allen,J.,Browne,M.andHolguin-Veras,J.(2015)SustainabilityStrategiesforCityLogisIcs,chapterin
GreenLogisIcs:ImprovingtheEnvironmentalSustainabilityofLogisIcs,McKinnon,A.,Browne,M.,Whiteing,A.andPiecyk,M.(eds.)ThirdEdiIon,KoganPage,London.
• Broaddus,A.,Browne,M.andAllen,J.(2015)ImpactsoftheLondonCongesIonChargeandLowEmissionsZones.TransportaIonResearchRecord.Vol2478,pp1-11.Paperreceived'BestPaperAward'fromTRBUrbanFreightTransportaIonCommibee(AT025).
• Browne,M.,Allen,J.,Wainwright,I.,Palmer,A.andWilliams,I(2014)London2012:changingdeliverypa5ernsinresponsetotheimpactoftheGamesontrafficflows,InternaIonalJournalofUrbanSciences,18(2),pp.244-261.
• FlodénJ,andWilliamssonJ(2016)Businessmodelsforsustainablebiofueltransport:thepotenIalforintermodaltransport.JournalofCleanerProducIonVol113pp426-437.
• Lindholm,M.andBrowne,M.(2013)CooperaIonamongurbanfreightstakeholders:Acomparisonofpartnershipapproaches.EuropeanJournalofTransportandInfrastructureResearch,13(1).pp20-38(ISSN1567-7141).
• Holguín-Veras,José,Aros-Vera,Felipe,Browne,Michael(2015)AgentinteracIonsandtheresponseofsupplychainstopricingandincenIves.EconomicsofTransportaIon4(2015),pp.147-155.Ref:ECOTRA-D-14-00014R1).
• VREF(2013)UrbanFreightforLivableCiIes(2013).PublishedbytheVolvoResearchandEducaIonalFoundaIons.Availablefordownloadfrom:hbp://www.vref.se/download/18.11165b2c13cf48416de7e59/1377188311719/FUT-Urban-Freigth-Webb_low.pdf