Last-mile delivery

The routing architecture for transportation over long distances usually comprises a backbone routing (line-haul), and delivery routing (last-mile delivery). The backbone routing is used for hub-to-hub transportation, and it may use multiple... 

Delivery routing is also known as the last-mile delivery. Typically vans are used to pick up packages from the arrival hub, and distributed to customers in the vicinity. The objective is to cover the largest number of customers, traveling a shortest distance from the hub and return to hub. 

Distributor Warehouse with Last Mile Delivery... 

The last mile delivery to home or business requires the distributor to design a delivery tour of the delivery-vehicle, satisfying customers delivery-time requirements, as shown in Fig. 6.7. Vans start from the distributor s warehouse, make deliveries, and return to the warehouse. To facilitate scheduling customers are offered time slots to choose from, which are determined before customer-orders arrive. When delivery routes begin to fill up, the distributor may reduce the number of slots offered and/or change the fees associated with deliveries during each time slot. 

Fig. 6.7 Distributor warehouse with last mile delivery...

For a soft drink distributor using last mile delivery, inbound shipments of ingredients and consumables usually come on large trucks but the outbound shipments of finished products to numerous customers are organized using smaller vans. It leads to higher shipment costs for the outbound shipments. In global health care delivery last mile distribution is used to make medicines available at remote locations (USAID 2011), and must address local issues such as infrastructure. 

Just like a commercial warehouse, warehouses for disasters must possess appropriate storage and retrieval systems, insurance, and theft protection. But they also need to have additional features to deal with an emergency such as storing items specific to a location in contiguous areas of the warehouse, rapid retrieval of needed items, and special storage for perishable items. Warehouses should be easily accessible to the incoming large trucks from suppliers and the specialized vehicles used for the last mile delivery. 

In addition to the fulfillment center, the order fulfillment chain comprises customer orders, delivery trucks and vans, local distribution hubs, and customers. Orders are received by the supplier electronically. These orders are processed, and sent to the fulfillment center where the ordered items are kept in inventory. At the fulfillment center appropriate items per order list are packed in parcels and prepared for shipment. The parcels are then sent to the distribution hub closest to the customer. From the hub, the parcels are delivered to the customer, the so called last mile delivery (Fig. 9.12). 

Distributor storage with last-mile delivery requires higher levels of inventory than the other options (except for retail stores) because it has a lower level of aggregation. From an inventory perspective, warehouse storage with last-mile delivery is suitable for relatively fast-moving items that are needed qnickly and for which some level of aggregation is beneficial. Auto parts required by car dealers fit this description. 

The information infrastructure with last-mile delivery is similar to that for distributor storage with package carrier delivery. However, it requires the additional capability of scheduling deliveries. 

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