Streamlining the delivery of parcels by utilising consolidation centres in the Netherlands
The pilot will look to test solutions to reduce the impact of increased inner city deliveries to both small retailers and homes, and reduce the number of failed deliveries. End users will be engaged to participate in the ‘parcel address’ service, where deliveries are sent to a central hub, then consolidated for last mile delivery using electric bikes.
The company offers a basic service to its customers who are both retailers and individuals: bundling goods and delivering them at a time convenient for the customers. Additional services offered by Binnenstadtservice (BSS) include disposal of valuable waste, a service that contributes towards a more circular economy.
The Dutch partner, Eco2city, has worked with Binnenstadservice
in Nijmegen and Maastricht to launch the Freight Circle service in the two cities (launched in March 2014 and April 2014, respectively).
The pilots are testing solutions to reduce the impact of increased inner city deliveries to homes. End users sign up to the “Freight Circle” service, thus choosing a central hub as the delivery address for the goods ordered. Parcels are then consolidated at the hub for last mile delivery using electric bikes, at a time that is convenient for its customers. By consolidating the freight and offering ad hoc reverse logistic services, the Freight Circle contributes towards the reduction of the number of vehicles in the city centre and residential areas, and towards the reduction of failed deliveries.
The partner now also offers ’urban mining’ service to its customers, supporting a circular economy, as well as making the business more profitable, which in turn, strengthens its business case. This extra service reduces the number of vehicles as well.
The partner is currently focusing on the recruitment of local participants to increase the number of the Freight Circle customers to 100 per city. This is being undertaken by direct customer approach, and by an effort to increase the visibility of the service through its partners (waste management company, local government, bike courier and Binnenstadservice).
Work is currently being undertaken on improving the website and developing a booking system. The latter is being developed in conjunction with Dinalog (Dutch Institute for Advanced Logistics).