Sustainable Development of Logistics: The Case of Energy Efficiency in Last-Mile Fulfillment

Paper in proceeding, 2017

Purpose Last-mile fulfillment is among the most energy-consuming logistics operations in the supply chain. An array of fulfillment options exists, by which shipments are distributed to the point of reception (private household) by private transport, home delivery, and consumer pickup. The energy efficiency of these fulfillment options is a result of the interaction between distribution structure, transportation execution, and household logistics capability. This paper’s purpose is to explore last-mile fulfillment options in regard to their energy consumption and identify propositions that make last-mile fulfillment more energy-efficient. Design/methodology/approach Interviews with Swedish retailers and their logistics service providers were conducted to compare different last-mile fulfillment options for consumer goods. Findings This paper identified options in last-mile fulfillment, which were analyzed in relation to their energy efficiency. Since private transportation is very energy-consuming, energy could be saved in last-mile fulfillment when certain propositions are in place and distribution structure, transportation execution, and household logistics capability are aligned. Research limitations/implications Viewing consumers as co-producers of logistics solutions may improve energy efficiency of last-mile fulfillment modes in the supply chain. Practical implications This paper gives insights to managers of logistics companies and retailers in how to shape last-mile fulfillment and save energy in this energy-consuming transportation leg. Original/value Sustainable development of logistics services can be further enhanced by examining energy efficiency of various last-mile fulfillment options.