The Retailer Spring_09.05_FA

#reinventionretail

Re-imagining city-based retail supply chains for a better future

Hop Ming Chen Senior Supply Chain Commercial Manager DP World London Gateway

HOWMARRYING UP TRADITIONAL TRANSPORTWITH NEW TECHNOLOGY COULD CREATE GREENER URBAN LOGISTICS CHAINS Last month, London’s drivers began facing up to a new challenge: the introduction of a new Ultra-Low Emissions Zone (ULEZ). Increasing the cost of delivering goods within the city, ULEZ is unlikely to be restricted to London alone; air pollution is an issue that reaches well beyond the capital and other UK cities, such as Bimingham, are already pondering similar proposals. While these zones will play a positive role in reducing environ- mental harm, it needs to be supported with a reimagining of how city-based supply chains operate – and how retailers can reach their customers, while avoiding the emissions charge criteria and reducing their own carbon footprints; an objective that ties into a number of the UN’s Sustainable Development Goals which so many organisations are aligning with. This is especially important in the context of the complexity generated by omni-channel supply chains, which pose a myriad of challenges. Reverse logistics on unwanted goods, next day and ‘anywhere’ deliveries lie among this web which, compared with traditional bricks-and-mortar networks, makes retail logistics operations somewhat like quantum physics. Yet the ever-increasingly conscious consumer is paying attention to the environmental impact of the goods they consume. There is a balance to be struck between serving customers cost effectively, meeting their growing demands and delivering sustainably. Therefore alternative distribution methods need to be considered. Many of these may seem futuristic, but others exist which are tried and tested – and could provide shorter term solutions. The future Emerging technology like drones, Hyperloop and autonomous vehicles will almost certainly have a role to play in city supply chains in the future. Many of the big players in the last-mile delivery market, from Fedex to Hermes, are trialling robot delivery and delivery of small packages by drone has already been proven by Amazon. Hyperloop technology is also proving its potential to revolutionise the supply chain; DP World, a smarter trade enabler, and Virgin have joined forces to introduce DP World Cargospeed, which will support faster delivery of unitised cargo.

This cutting-edge technology, while being successfully trialled in some areas, is still some way off maturity – and of course, it all requires the right infrastructure.

The tried, tested and traditional So what options can we explore now that address the current day logistics conundrums? Localised, multimodal approaches to logistics could provide one answer; a network of urban logistics hubs on the outskirts of cities, serviced by a range of new and environmentally friendly delivery options. In London, both rail and river transport are viable, environmentally friendly ways of getting goods into the city centre, with emis- sion-free electric vehicles used for the last-mile. And by transport- ing more goods in this way, it’s possible to address other industry issues too, like the persistent shortage of drivers. DP World which operates one such large logistics hub, just 25 miles from Central London, is working with a number of different stakeholders to offer logistics providers and cargo owners alternative final mile solutions. These solutions make use of transportation modes and infrastruc- ture that is currently under-utilised for the movement of goods. The River Thames and its wharves, along with barges, passenger boats, repurposed old passenger trains – recently removed from service – and inner city rail station infrastructure, are among those means, all of which combine neatly with new final mile technolo- gy, like electric vehicles that would avoid emissions charges and offer a net reduction in carbon emissions when compared with traditional road transportation. We are looking at the feasibility and viability of these options to help with inner city deliveries, so that our customers – many of whom are retailers using our port and warehousing at London Gateway – can partner with us on delivering small batches of goods direct from their distribution centres or the port, on short range, ‘green’ trips. What’s great about this model is that all the elements involved are tried and tested in the real-world. In London, waterways fulfil an important role in the city’s waste management, with barges used to transport domestic refuse to processing depots and landfill sites. Similarly, in Germany, waterways are commonly used to move goods.

38 | spring 2019 | the retailer

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