Coping with the rise of E-commerce generated home deliveries through innovative last-mile technologies and strategies

E-commerce has the potential to make urban goods flow economically viable, environmentally efficient, and socially equitable. However, as e-retailers compete with increasingly consumer-focused services, urban freight witnesses a significant increase in associated distribution costs and negative externalities particularly affecting those living close to logistics clusters. Hence, to remain competitive, e-retailers deploy alternate last-mile distribution strategies. These alternate strategies, such as those that include use of electric delivery trucks for last-mile operations, a fleet of crowdsourced drivers for last-mile delivery, consolidation facilities coupled with light-duty delivery vehicles for a multi-echelon distribution, or collection points for customer pickup, can restore sustainable urban goods flow. Thus, in this study, the authors investigate the opportunities and challenges associated with such alternate last-mile distribution strategies for an e-retailer offering expedite..., This work models a last-mile network design problem for an e-retailer with a capacitated two-echelon distribution structure - typical in e-retail last-mile distribution, catering to a market with a stochastic and dynamic daily customer demand requesting delivery within time-windows. Considering the distribution evnironment, this work formulates last-mile network design problem for this e-retailer as a dynamic-stochastic two capacitated location routing problem with time-windows. In doing so, this work splits the last-mile network design problem into its constituent strategic, tactical, and operational decisions. Here, the strategic decisions undertake long-term planning to develop a distribution structure with appropriate distribution facilities and a suitable delivery fleet to service the expected customer demand in the planning horizon. The tactical decisions pertain to medium-term day-to-day planning of last-mile delivery operations to establish efficient goods flow in this distribut...,