Integrating mobile parcel lockers into last-mile delivery networks: an operational design for home delivery, stationary, and mobile parcel lockers

Abstract

PurposeThe e-commerce boom presents new challenges for last-mile delivery (LMD), which may be mitigated by new delivery technologies. This paper evaluates the impact of mobile parcel lockers (MPL) on costs and CO2 equivalent (CO2e) emissions in existing LMD networks, which include home delivery and shipments to stationary parcel lockers.Design/methodology/approachTo describe customers’ preferences, we design a multinomial logit model based on recipients’ travel distance to pick-up locations and availability at home. Based on route cost estimation, we define the operating costs for MPLs. We devise a mathematical model with binary decision variables to optimize the location of MPLs.Findings Our study demonstrates that integrating MPLs leads to additional cost savings of 8.7% and extra CO2e emissions savings of up to 5.4%. Our analysis of several regional clusters suggests that MPLs yield benefits in highly populous cities but may result in additional emissions in more rural areas where recipients drive longer distances to pick-ups.Originality/valueThis paper designs a suitable operating model for MPLs and demonstrates environmental and economic savings. Moreover, it adds recipients’ availability at home to receive parcels improving the accuracy of stochastic demand. In addition, MPLs are evaluated in the context of several regional clusters ranging from large cities to rural areas. Thus, we provide managerial guidance to logistics service providers how and where to deploy MPLs.