The issues of City Logistics
Key words:
City logistics, transport serviceability, city logistics system, city logistics concepts, logistics providers, public sector, private sector
Chapter objectives:
- understanding the importance of City Logistics in the transport serviceability of cities and adjacent agglomerations,
- understanding the characteristics of stakeholders in the system,
- understanding the basic trends when creating city logistics systems.
Time required to study the chapter: 6 hours
Interpretation:
City logistics – what is it?
The definition of the City logistics results from the definition of the term: logistics. Logistics is an interdisciplinary scientific field dealing with the coordination, harmonization, interconnection and optimization of the flow of raw materials, semi-products, products and other kind of materials and services as well as flows of information and finance in terms of customer satisfaction with the optimal resources spending.
City logistics is referring to all logistics and transport processes that are presented in the city, all services which have to be delivered, and all people whose need to move.
City logistics is the process of optimizing overall logistics and transport operations of private companies in the city or in a particular area. Special consideration shall be on the environment, reducing traffic congestion and reduce fuel consumption. City logistics compares the advantages and disadvantages of different solutions for both the public and private sectors. Private carriers are trying to reduce their costs for transporting goods, whereas the public sector is trying to reduce traffic congestion, negative effects of transport on the environment and on city streets trying to preserve the original features of cities as centers of commerce, culture, entertainment and sport.
The principle of comprehensive transport serviceability
Comprehensive transport serviceability of the area includes satisfaction of transportation needs of the residents and business entities in the given territory, i.e. passengers and goods transportation. An unsystematically organized transport chain in the territory (city) causes the creation of problems, such as traffic congestions, environmental pollution and failures of other services. All these aspects result in reducing the quality and possibilities of using the particular territory and, last but not least, a number of social and social problems.
Interconnection of the system
Three main parties (stakeholders) are involved in solving the problems of freight transport:
- End-users (private sector, enterprises and other natural or legal entities, shippers) of the system either send goods to other entities, or receive goods from other entities.
- Carriers (logistics providers, transport operators) try to minimize their costs related to loading, transportation, transshipment, unloading, warehousing, packaging and handling with the goods in order to maximize their profits and be able to meet the requirements of final customers.
- Residents who live, work or shop in the city
- The state administration and city government (public sector) try to ensure a higher economic development of the area or city, residents’ employment and living standards. They seek to eliminate the traffic congestions, improve the environment and increase the safety on roads.
Fig. 1 Interconnection of the system within the city logistics
Environment of the city logistics
When implementing the city logistics systems, emphasis should be placed on a recent development of transport and traffic telematics, which provides a technical potential for effective measurement, vehicles detection, vehicles categorization, on-line communication, information delivery, traffic management and navigation. For example, Global Navigation Satellite System (GNSS) for positioning the trucks and Global System for Mobile Communications (GSM) enable vehicle operators to dynamically change the route and optimally plan the goods distribution depending on vehicle position or current traffic situation. Implementation of these telematics systems can help reduce costs, total traveled vehicle distance and environmental impacts.
E-commerce provides opportunities for fast and direct shipments in the field of B2B (Business to Business) and B2C (Business to Customer).
Basic concept of the city logistics
The concept of the city logistics has a potential to solve these complex logistics problems. City Logistics is the process of overall optimization of logistics and transportation operations of all private companies in a city or in a particular area. Specific consideration is given to the environment, reducing traffic congestions and reducing fuel consumption - by deploying economical vehicles as well as reducing amount of traveled distance.
City logistics concepts
City logistics concept usually consists of one or more combinations of the following examples:
- Advanced Information System
- Cooperation of carriers to optimize the logistics operations
- Public logistics terminal - Urban distribution center
- Controlling the capacity utilization of trucks
- Underground transport systems
- Optimization of vehicles for supply and use of environmentally friendly vehicles – CNG, LPG, electromobiles, biodiesel, hydrogen, hybrids...
- Distribution by other types of vehicles (e.g. railway vehicles, unconventional transport systems, etc.)
- Restrictions of entry of selected types of vehicles
- Charging for transport infrastructure
- Night-time deliveries
- Controlling the space utilization of the cities (Mobility Management, Logistics of the companies, etc.)
- Map for trucks drivers
- Alternative distribution of shipments - automatic dispensing stations
- Information technologies and telematics
These examples are mostly for higher efficiency combined with each other to meet local transport and land-use plans.
Study materials:
Basic literature:
CEMPÍREK, V., KAMPF, R. Logistika. Ed. 1. Pardubice: Jan Perner Transport Institute, 2005. 108 p. ISBN 80-86530-23-X
Voženílek, V., Strakoš, V. City Logistics: Dopravní problémy města a logistika. Olomouc: Publisher – Palacky University, 2009, ISBN 978-80-244-2317-3
Recommended study materials:
Cole, S. Applied Transport Economics, Kogan Page Limited, London N1 9JN, 1991.
LAMBERT, Douglas M., James R. STOCK a Lisa M. ELLRAM. Fundamentals of Logistics. International edition: McGraw-Hill Publishing Co., 1998. 626 p. ISBN 978-0-07-115752-0.
TANIGUCHI, E. a R.G. THOMPSON. City Logistics: Mapping The Future. CRC Press, 2014. 231 p. ISBN 978-1-4822-0889-4.
Questions and tasks
- What is the task of the City Logistics?
a) to ensure comprehensive transport serviceability in cities and their adjacent agglomerations,
b) to ensure the goods transportation between cities of two neighboring regions,
c) to ensure the goods transportation and supply to selected commercial centers.
- Who is involved in the effective operation (functioning) of the City Logistics?
a) Carriers, city residents and local authorities,
b) Carriers and city residents,
c) City residents, end-users, logistics service providers (carriers) and state administration and city government
- What all can be included within City Logistics concepts?
4. The principle of comprehensive transport serviceability is:
a) advanced information system and logistics operations optimization,
b) satisfaction of transportation needs of the residents and business entities in the given territory, i.e. passengers and goods transportation,
c) optimization of logistics and transport activities, involving a private company with the support of advanced information systems
5. The system for positioning the trucks using the satellite navigation is called:
a) B2B
b) JIT
c) GNSS
Key to solve the questions:
1) a.
2) c.
3) Advanced Information System, Public logistics terminal - Urban distribution center, Underground transport systems, Optimization of vehicles for supply and use of environmentally friendly vehicles, The distribution by other types of vehicles, Restrictions of entry of selected types of vehicles, Charging for transport infrastructure, Night-time deliveries, Map for truck drivers, etc.
4) b.
5) c.