A Macro and Micro-Level Evaluation of Stakeholders’ Collaboration for Sustainable City Logistics Operations


Author

Taiwo Adetiloye
Concordia Institute for Information and Systems Engineering (CIISE), Montréal, Canada

Gul Pervez
Concordia Institute for Information and Systems Engineering (CIISE), Montréal, Canada


Content

City logistics involves movement of city goods in urban areas respecting the municipal and administrative guidelines. The key goals of city logistics planning are maximizing vehicle movement and utilization, while minimising vehicle emissions and traffic congestion. Collaboration is vital to managing city logistics operations efficiently. Collaboration can take place in the form of goods consolidation, sharing of resources, information sharing, and so on. Two categories of models are proposed to evaluate these collaboration strategies. At the macro level, we present the collaboration matrix model; and at the micro level, we present the operational level model. The macro-level model focuses on the strategic decision making process necessary for stakeholders’ collaboration given the socio-cultural characteristics, economic, and environmental constraint factors, while the micro-level model applies the collaboration decision-making criteria derived from the macro-level analytic result to improve the activities of the city logistics operators. Results of the computational testing of our methodology on vehicle selection, goods to vehicle assignment, goods distribution and environmental impact assessment are discussed, showing that the collaboration strategies of stakeholders, if optimized, can improve city logistics operations. The proposed work is novel and has strong practical applicability for logistics planners and decision makers in planning right collaboration strategies for sustainable city logistics operations.

Keywords: city logistics, collaboration planning, goods distribution, sustainability, stakeholder

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City logistics (CL), as defined by Taniguchi et al.(1999, 2001), is “the process for totally optimizing the logistics and transport activities by private companies in urban areas while considering the traffic environment, the traffic congestion and energy consumption within the framework of a market economy”. The main purpose of CL is to reduce city traffic congestion caused by freight-vehicle movement, improving vehicle utilization; and reducing emissions and pollutions without penalizing the city social and economic activities (Crainic et al., 2011). Stathopoulos et al. (2012) stated that CL have a vital role to play in minimizing the negative impacts of freight movements, pollution and congestions, within urban areas. The freight transport (Lorries > 3.5 tons) constitutes about 10% of total traffic within urban areas (Crainic and Sgalambro, 2009b). A city with high traffic of freightvehicle movement, emissions and pollutions from moving freight-vehicles with the resultant effect on socio-economic activities of the city creates major obstacles for sustainable CL operations. Involved in CL operations are the key stakeholders, participants or actors comprising of shippers, residents also known as clients or customers, freight carriers, and administrator (Taniguchi et al., 2001) within an environment. The subsystems, connected through flows, are the different types of collaborative-commerce (c-commerce) that can be used by stakeholders in CL planning. The Gartner Group (1999) described c-commerce as the “dynamic collaboration among employees, business partners and customers throughout a trading community or market.” Consequently, the robust technologies of today provide for adaptation of c-commerce transactions through collaborations for CL planning. Hence, our objective is to provide meaningful insights on effective collaboration of CL stakeholders using the basic and major approach of c-commerce applied for development of two CL models: the collaboration matrix model and the operational level model.

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Our solution approach for evaluating the stakeholders’ collaboration strategies comprises of two levels namely: macro and micro-level. The macro-level model focuses on the strategic decision making process necessary for stakeholders collaboration given the socio-cultural characteristics, economic, environmental constraint factors; while, the micro-level model applies the collaboration decision-making criteria derived from the macro-level analytic result to improve the activities of the city logistics operators. The models corresponding to the macro and micro levels are the (1) Collaboration matrix model and (2) Operational level model.

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The collaboration of CL stakeholders is vital for sustainable urban transportation operations. It can help potential partners reduce excess inventory, shorten lead times, increase sales and customer service levels. Furthermore, it may allow organizations to enhance flexibility and capabilities by fostering relationships that increase skills and knowledge, facilitate easier logistic operations, offer access to new technologies and reduce time that can be seen as important factors for effective and efficient supply chain management.

We have presented our CM model at the macrolevel to evaluate the social-cultural characteristics, economy and environment impacts of the activities of city dwellers. In addition, we have shown how the collaboration strategies of the stakeholders can be useful at the operational level of CL system. Our operational level model can help CL stakeholders, through partial and full collaboration, lessen vehicles emissions causing pollutions in the city. In future, we shall seek to improve on accuracy and efficiency as well as reduce the gap using software tools for very large number of test cases. We shall also find the usability of SN collaboration by the stakeholders for sustainable CL operations.

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About Author

Taiwo Adetiloye is pursuing his Ph.D. in Information and Systems Engineering at CIISE, Concordia University, Montréal, Canada. He holds a Master in Quality Systems Engineering(2012) also at CIISE, Concordia University, Montréal, Canada, and a B.Sc. Degree in Electronic and Electrical Engineering(2006) from the Obafemi Awolowo University, Ife, Nigeria. His research interests include IT/IS decision support systems, supply chain optimisation, urban freight transport and logistics, and quality management. He is a member of the Canadian Operations Research Society, and the IEEE Society for Intelligent Transportation Systems.

Gul Pervez has a Master Degree in Quality Systems Engineering (2014) at CIISE, Concordia University, Montréal, Canada. He received a B.Eng. in Systems Engineering (2008) from the University of Warwick, Coventry, United Kingdom. His research interests include game theory, collaboration models for supply chain analysis, sustainable city logistics, strategic purchasing, planning & control systems and supply chain sustainability.