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The potentials of last mile logistics by the use of cargo bikes in the city center of Oslo : a case study of dhl express

Kjønnø, Anne Marthe; Pham, Diem Tran Huong
Master thesis
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URI
http://hdl.handle.net/11250/2483323
Date
2017
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  • Master of Science [1555]
Abstract
For logistics companies, the last mile is considered the most expensive yet least

efficient and most polluting part of the entire supply chain, accounting for 13 to

75 percent of the total costs. The last mile often hinders city logistics due to

regulated traffic speed, narrow streets, and limited parking and unloading space.

Distribution of goods is an essential part in the development of sustainable

transport networks. Cities need to explore new ways of organizing goods transport

in addition to new transport modes to meet the negative externalities created by

transport companies. A mode that has gained widespread interest for urban

deliveries is the use of electric cargo bikes in last mile logistics. An estimation of

51 percent of all goods distribution using motorized transport modes in European

countries could be replaced with cargo bikes.

Oslo Municipality and the City Council are establishing new regulations to

increase urban life. With this in mind, a joint collaboration between the state, Oslo

Municipality and DHL Express was initiated, and led to the cargo bike project.

During Summer 2017, DHL Express implemented cargo bikes to their vehicle

fleet in order to meet the increasing demand for sustainable solutions in Oslo.

The thesis is a case study in Operations Research that investigates the

potentials of last mile freight transport by implementing cargo bikes to DHL

Express’ vehicle fleet in the city center of Oslo. It evaluates the performance of

cargo bikes as supplement for vans within a limited area, and its influence on

productivity, environmental impact, and service level. It assesses the existing gap

in research regarding the implementation of cargo bikes in Norway from a

business perspective.

Two models were developed for the delivery and pickup process, in terms

of the current system and pilot project. Simulations were performed to determine

the effect of changing the system. In addition, a qualitative analysis was included

to strengthen the validity of the study. Based on the analyses, the main findings

suggest a potential of implementing cargo bikes to the vehicle fleet. The results of

the study prove that by replacing vans with cargo bikes in a limited area in Oslo,

DHL Express is able to increase the productivity and service level, while reducing

CO2 emission. Evidently, cargo bikes have the potential of reducing traffic

congestions, and handle goods more efficiently in terms of better accessibility to

customers.
Description
Masteroppgave(MSc) in Master of Science in Business, Logistics, operations and supply chain management - Handelshøyskolen BI, 2017
Publisher
BI Norwegian Business School

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