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SAILOR (Smart lAst mILe cOmmeRce)

PURPOSE AND GOAL

The objective of SAILOR is to develop real-time solutions to the matching problems of parcel delivery companies and the final customer, shortening routing distance as well as increase first-time deliveries and reverse logistics in the last mile. The final goal of SAILOR is to improve cost efficiency and decrease congestions and pollutions in last mile commerce. A prototype demonstration of SAILOR will be put to in four heterogeneous European cities: Amsterdam (Netherlands), Borlänge (Sweden), Graz (Austria) and the San Sebastian area (Spain) together with local stakeholders.

CONCEPT

To illustrate the concept see Figure 1. Presently, delivery of parcels, in particular for consumers, typically ends at a pick-up point making the consumer managing the last mile transport herself. To the extent a parcel delivery company makes a direct handover, it usually works as a static routing of the (motor) vehicle stipulating a time window for deliverance and a place (the residential address). This is illustrated in the picture of a truck travelling the route passing points A-C finding no one at the place in point A and being delayed at C because of a waiting time for unloading.

The illustration concerns deliveries, but the same structure applies for returns. The SAILOR system is expected to remedy these matching problems. Upon coordination, delivery to customer A is re-routed to the place where the receiver happens to be and the unloading at C is swifter because of slot availability information. The solid arrows illustrate the actual trip while the dashed the statically planned one, and their length illustrate the trip time along the route. Delivery by bike also appears in the picture as in some of the demos, the parcel delivery company will use cargo-bikes in their last mile deliverance.

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Figure 1 Concept

IMPACTS

Indicators on expected impact are:
i) 25% reduction in cost for last mile deliveries
ii) 20% increase in market acceptance of direct parcel handover rather than via parcel pick-up iii) at least 25% reduction of      CO2 emissions
iii)  a time reduction of 5% in a delivery round trip which potential will lead to less congestion in the cities and less stressful working conditions for the employees of parcel delivery companies.

PLANNED DESIGN AND IMPLEMENTATION

The pillar in the implementation of the project is the Consortium which is formed by a dedicated team of mixed competencies. The work in the project is organized in six Work Packages with 2-7 tasks per WP covering identification of market conditions in demonstration cities, development of a back office for the SAILOR system and a mean for information distribution, and an application of a systematic approach to work out business models for the launching of SAILOR (see Figure 2). The completion of a task is supervised via milestones associated to the task. Management is monitored by the Steering Committee.

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Figure 2 - Work Package methodology picture                              

RESULTS

i) Increase cost efficiency of the parcel delivery companies via a higher proportion of first-time delivery success, faster access to (un)loading zones and better management of reverse logistics
ii) Greater adoption of flexible time and place handovers of parcels leading to customer satisfaction
iii) Societal benefits as reductions in emissions in urban areas, less congestion and less stressful working conditions for employees of parcel delivery companies.

 


 

 

 Starting date: 1 of July 2016, closing date: 30 of June 2018