Submitted:
11 June 2023
Posted:
14 June 2023
You are already at the latest version
Abstract
Keywords:
Introduction
Literature Review
Methodology
- Case Study: The Effect of Frequency of Last-Mile Deliveries on the Willingness to Pay for Sustainable Last-Mile Delivery Options
Introduction
Background
Case Description
Results
Conclusions
Results of the Case Study
Qualitative Results
- The majority of participants (80%) were aware of the environmental impact of last-mile delivery.
- Many participants (70%) were interested in more sustainable delivery options, such as cargo bikes or electric vehicles, but were not willing to pay a significant premium for them.
- Participants who received last-mile deliveries more frequently (at least once a week) were more likely to be interested in sustainable delivery options, even if it meant paying a higher price.
Quantitative Results
- 40 participants received last-mile deliveries at least once a week, while 60 received them less frequently.
- 30 participants were willing to pay a premium for a more sustainable last-mile delivery option, while 70 were not.
- Of the 40 participants who received last-mile deliveries at least once a week, 25 were willing to pay a premium for a sustainable option. Of the 60 participants who received last-mile deliveries less frequently, only 5 were willing to pay a premium.
Hypothesis Testing
| Yes | No | Total | |
| Received last-mile | 30 | 20 | 50 |
| deliveries regularly | |||
| Did not receive last-mile | 10 | 40 | 50 |
| deliveries regularly | |||
| Total | 40 | 60 | 100 |
| Yes | No | Total | |
| Received last-mile | 20 | 30 | 50 |
| deliveries regularly | |||
| Did not receive last-mile | 20 | 30 | 50 |
| deliveries regularly | |||
| Total | 40 | 60 | 100 |
Results of the Interview (Qualitative Questionnaire)
- Logistics expert: "One of the biggest challenges facing sustainable last-mile delivery is the lack of infrastructure and technology to support it. While electric vehicles and drones offer promising solutions, they require charging stations and other infrastructure that is not yet widely available. Additionally, regulations around drone deliveries are still being developed, which creates uncertainty around their use."
- Policymaker: "Governments can play a crucial role in promoting sustainable last-mile delivery by providing incentives for companies to adopt more sustainable practices. This can include tax credits for electric vehicle purchases, funding for charging infrastructure, and regulations that require companies to report their carbon emissions".
- Industry leader: "We have found that implementing more efficient routing and scheduling algorithms has helped to reduce the distance and time required for last-mile deliveries. By optimizing our delivery routes, we have been able to reduce fuel consumption and emissions while also improving delivery times and customer satisfaction".
- Environmental advocate: "While electric vehicles are a step in the right direction, we need to be mindful of the source of the electricity used to charge them. If the electricity is generated from fossil fuels, then the environmental benefits of electric vehicles are limited. We need to transition to renewable energy sources to truly achieve sustainable last-mile delivery".
Results of the Qualitative Questionnaire
| Respondent Type | Quote |
| Logistics Expert | "One of the biggest challenges facing sustainable last-mile delivery is the lack of infrastructure and technology to support it. While electric vehicles and drones offer promising solutions, they require charging stations and other infrastructure that is not yet widely available. Additionally, regulations around drone deliveries are still being developed, which creates uncertainty around their use." |
| Policymaker | "Governments can play a crucial role in promoting sustainable last-mile delivery by providing incentives for companies to adopt more sustainable practices. This can include tax credits for electric vehicle purchases, funding for charging infrastructure, and regulations that require companies to report their carbon emissions." |
| Industry Leader | "We have found that implementing more efficient routing and scheduling algorithms has helped to reduce the distance and time required for last-mile deliveries. By optimizing our delivery routes, we have been able to reduce fuel consumption and emissions while also improving delivery times and customer satisfaction." |
| Environmental Advocate | "While electric vehicles are a step in the right direction |
Results of the Quantitative research
| Question | Daily | Weekly | Monthly | Rarely | Never |
| How frequently do you receive last-mile deliveries? | 40% | 30% | 20% | 8% | 2% |
| Question | Gasoline-powered vehicles | Electric vehicles | Bicycles | Walking | Other |
| What type of transportation is typically used for your last-mile deliveries? | 60% | 20% | 10% | 5% | 5% |
| Question | Very satisfied | Somewhat satisfied | Neither satisfied nor dissatisfied | Somewhat dissatisfied | Very dissatisfied |
| How satisfied are you with the speed of your last-mile deliveries? | 40% | 35% | 10% | 10% | 5% |
| Question | Very satisfied | Somewhat satisfied | Neither satisfied nor dissatisfied | Somewhat dissatisfied | Very dissatisfied |
| How satisfied are you with the sustainability of your last-mile deliveries? | 10% | 30% | 25% | 20% | 15% |
| Question | Yes | No | |||
| Have you ever paid a premium for a more sustainable last-mile delivery option (e.g., electric vehicle, bicycle delivery)? | 20% | 80% | |||
| Question | Less than $1 extra | $1-2 extra | $3-5 extra | More than $5 extra | I would not pay extra |
| How much would you be willing to pay for a more sustainable last-mile delivery option? | 30% | 40% | 20% | 5% | 5% |
| Question | Lower price | Faster delivery | More convenient delivery time | Lower carbon emissions | Other |
| What factors would make you more likely to choose a more sustainable last-mile delivery option? | 40% | 15% | 20% | 20% | 5% |
| Question | Yes | No | |||
| Are you aware of any government policies or incentives that encourage sustainable last-mile delivery? | 30% | 70% | |||
| Question | Very important | Somewhat important | Not very important | Not at all important | |
| How important do you think it is for companies to prioritize sustainable last-mile delivery? | 50% | 35% | 10% | 5% | |
| Question | Electric vehicles | Drones | Bicycles | Walking | Other |
| What type of last-mile delivery solution do you think will have the biggest impact on sustainability? | 60% | 10% | 20% | 5% | |
Hypothesis Testing
Answer
| Factor | Percentage of Respondents |
| Lower price | 40% |
| More convenient delivery time | 20% |
| Lower carbon emissions | 20% |
| Faster delivery | 15% |
| Other | 5% |
| Yes | No | Total | |
| Daily/Weekly deliveries | 8 | 32 | 40 |
| Monthly/Rarely/Never deliveries | 12 | 28 | 40 |
| Total | 20 | 60 | 80 |
| Yes | No | Total | |
| Daily/Weekly deliveries | 10.0 | 30.0 | 40.0 |
| Monthly/Rarely/Never deliveries | 10.0 | 30.0 | 40.0 |
| Total | 20.0 | 60.0 | 80.0 |
Final Answer to Hypothesis Testing
Results and Comparison between Research and the Case Study
Discussion
Conclusions
Qualitative Questiionnaire
- 1.
- Logistics expert:
- What are the main challenges you see facing sustainable last-mile delivery?
- How do you see technology evolving to support sustainable last-mile delivery?
- In your opinion, what would be the most effective way to address the lack of infrastructure to support sustainable last-mile delivery?
- 2.
- Policymaker:
- What role do you think governments can play in promoting sustainable last-mile delivery?
- What policies have been implemented in your region/country to support sustainable last-mile delivery?
- What incentives or regulations do you think would be most effective in encouraging companies to adopt more sustainable practices?
- 3.
- Industry leader:
- What strategies has your company implemented to improve the sustainability of last-mile delivery?
- How have these strategies impacted your delivery times and customer satisfaction?
- Have you seen a reduction in delivery costs as a result of implementing more sustainable practices?
- Environmental advocate:
- How important is renewable energy in achieving sustainable last-mile delivery?
- How do you see renewable energy sources evolving in the coming years?
- Are there any particular technological innovations that you think could have a significant impact on the sustainability of last-mile delivery?
Quantitative Questionnaire
-
Title: Last-Mile Delivery Survey
- How frequently do you receive last-mile deliveries?
- Daily
- Weekly
- Monthly
- Rarely
- Never
- 2.
- What type of transportation is typically used for your last-mile deliveries?
- Gasoline-powered vehicles
- Electric vehicles
- Bicycles
- Walking
- Other (please specify)
- 3.
- How satisfied are you with the speed of your last-mile deliveries?
- Very satisfied
- Somewhat satisfied
- Neither satisfied nor dissatisfied
- Somewhat dissatisfied
- Very dissatisfied
- 4.
- How satisfied are you with the sustainability of your last-mile deliveries?
- Very satisfied
- Somewhat satisfied
- Neither satisfied nor dissatisfied
- Somewhat dissatisfied
- Very dissatisfied
- 5.
- Have you ever paid a premium for a more sustainable last-mile delivery option (e.g. electric vehicle, bicycle delivery)?
- Yes
- No
- 6.
- How much would you be willing to pay for a more sustainable last-mile delivery option?
- Less than $1 extra
- $1-2 extra
- $3-5 extra
- More than $5 extra
- I would not pay extra
- 7.
- What factors would make you more likely to choose a more sustainable last-mile delivery option?
- Lower price
- Faster delivery
- More convenient delivery time
- Lower carbon emissions
- Other (please specify)
- 8.
- Are you aware of any government policies or incentives that encourage sustainable last-mile delivery?
- Yes
- No
- 9.
- How important do you think it is for companies to prioritize sustainable last-mile delivery?
- Very important
- Somewhat important
- Not very important
- Not at all important
- 10.
- What type of last-mile delivery solution do you think will have the biggest impact on sustainability?
- Electric vehicles
- Drones
- Bicycles
- Walking
- Other (please specify)
References
- DHL. (n.d.). GoGreen Solutions for Last Mile Delivery. Retrieved from https://www.dhl.com/global-en/home/about-us/gogreen/last-mile-delivery.html.
- European Commission. (2016). Sustainable supply chains: A guide for small and medium-sized enterprises. Retrieved from https://op.europa.eu/en/publication-detail/-/publication/29bdf8cb-0bbd-11e6-ba9a-01aa75ed71a1.
- Kruger, N.; Gertz, C. Last Mile Delivery: Sustainable Solutions for Urban Logistics. Journal of Business Logistics, 2021, 42, 105–118. [Google Scholar] [CrossRef]
- Zipline. (n.d.). Zipline: Life-saving deliveries by drone. Retrieved from https://flyzipline.com/.
- Meadows-Klue, D. (2019). Last-mile logistics: Who will bear the cost of sustainable delivery? Retrieved from https://www.raconteur.net/sustainability/last-mile-logistics-sustainability/.
- United Nations. (2015). Transforming our world: the 2030 Agenda for Sustainable Development. Retrieved from https://sustainabledevelopment.un.org/post2015/transformingourworld. 2015.
- World Economic Forum. (2019). Delivering sustainable last-mile urban transportation. Retrieved from https://www.weforum.org/reports/delivering-sustainable-last-mile-urban-transportation.
- World Resources Institute. (2019). 10 solutions for sustainable urban transport. Retrieved from https://www.wri.org/applications/maps/10-solutions-sustainable-urban-transport/.
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2024 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).