Last-mile logistics innovations: the balance between customer demands and sustainability

Giovanni Pangrazzi

Master's thesis

Abstract:

Over recent years, the significant growth in e-commerce has put a lot of pressure on last-mile logistics, which has to face increasingly complex situations. Customers are becoming more demanding; they ask for shorter delivery times and are willing to pay a very low price for it. The consequences for last-mile logistics are higher costs and a lack of efficiency in many operations. At the same time, a sense of responsibility toward environmental issues is growing among customers, who ask companies to be more sustainable. The problem is that sustainability for companies translates into an increase in costs. The goals of the thesis are several. First, identify the main issues of the last-mile logistics. Then, indagate what innovations have been implemented in the sector or are considered for the future and whether they have positive effects on cost and sustainability. Finally, find out whether there will be a balance in the future between sustainability and customer satisfaction, remaining cost-efficient. The methodologies consist of a theoretical and a practical part. In the first part, a systematic literature review was made to create an academic background on the mentioned topics. The second part consists of qualitative research based on interviews with experts. The data collected have been analyzed and discussed with those of the theory to see if they support, complete, or question them. The results of this thesis emerge a more precise and complete picture of the last-mile logistics and its issues; some innovations considered relevant for the industry’s future; the reasons behind the introduction or not of sustainable innovations. Finally, customers and governments seem to be the central elements on which will depend the future of the last mile, to ensure sustainability and demand satisfaction.

Abstract:

Over recent years, the significant growth in e-commerce has put a lot of pressure on last-mile logistics, which has to face increasingly complex situations. Customers are becoming more demanding; they ask for shorter delivery times and are willing to pay a very low price for it. The consequences for last-mile logistics are higher costs and a lack of efficiency in many operations. At the same time, a sense of responsibility toward environmental issues is growing among customers, who ask companies to be more sustainable. The problem is that sustainability for companies translates into an increase in costs. The goals of the thesis are several. First, identify the main issues of the last-mile logistics. Then, indagate what innovations have been implemented in the sector or are considered for the future and whether they have positive effects on cost and sustainability. Finally, find out whether there will be a balance in the future between sustainability and customer satisfaction, remaining cost-efficient. The methodologies consist of a theoretical and a practical part. In the first part, a systematic literature review was made to create an academic background on the mentioned topics. The second part consists of qualitative research based on interviews with experts. The data collected have been analyzed and discussed with those of the theory to see if they support, complete, or question them. The results of this thesis emerge a more precise and complete picture of the last-mile logistics and its issues; some innovations considered relevant for the industry’s future; the reasons behind the introduction or not of sustainable innovations. Finally, customers and governments seem to be the central elements on which will depend the future of the last mile, to ensure sustainability and demand satisfaction.

Keywords

Last-mile logistics, Sustainability, Innovation, customer satisfaction, e-commerce

Keywords

Last-mile logistics, Sustainability, Innovations, Customer satisfaction, e-commerce

Language used: English

Date on which the thesis was submitted / produced: 11. 5. 2022

Thesis defence

• Date of defence: 14. 6. 2022
• Supervisor: Petr Kolář
• Reader: Petr Jirsák

Vysoká škola ekonomická v Praze

Master programme:
Management