Published by the Last Mile Experts, the 2022 Green Last Mile Europe Report offers insights into last mile logistics and the key trends and initiatives aimed at mitigating the increasing environmental impact. The report estimates that “the last mile makes up some 30-50% of all supply chain costs for B2C parcels and is a key element of the carbon footprint created by e-commerce B2C parcel flows”.
Going forward companies need to make changes that are cost-effective, thoroughly thought-through and have the requisite environmental impact. The report highlights the positive and meaningful solutions that are in motion; Infinium Logistics is leading from the front.
Why do we need more sustainable solutions for the last mile?
The European courier express parcel (CEP) market is expected to further grow in 2022 and exceed 2021’s figures of more than 7 billion parcels worth over 80 billion euros. Companies need to act now to keep up with sustainable development goals (SDGs), legislation, and future targets for emissions and sustainability.
The report suggests that many companies are ill-prepared despite their corporate messaging: “Much of this is “greenwashing” and only a handful of players are really making headway in creating a green last mile”. The good news is that we are building the infrastructure to facilitate electric vehicle transition, cargo and e-bike parks, pick up drop off (PUDO) points, and out of home lockers, for example. The software to support it all on one platform is also now available, making the transition smoother and solving the problem of fragmented journeys.
Out of home (OOH) parcel lockers and pick up drop off (PUDO) points
Not all deliveries are completed first time. In fact, a 2019 Which report found that only 32% of deliveries went according to plan. The emissions and environmental impact related to repeated failed deliveries and customer trips to the local depot are significant. Offering customers a choice of delivery times can negatively impact parcel consolidation and routing efficiency.
Parcel lockers and PUDO points offer delivery companies better routing strategies and up to 99% first time delivery. InPost research in Poland, where there is already a high uptake, shows that “if all courier transport moved to parcel lockers, it would be possible to reduce CO2 emissions by up to 75% in relation to traditional courier delivery”. Actual cost savings can also be made.
The transition to electric vehicles
The UK and some European countries have committed to transitioning to electric vehicles (EV) by 2030. Some companies intend to do so even earlier. However, it is not just a question of swapping fossil fuel vehicles for electric ones. There are the additional issues of parking, charging, payment, and operating infrastructure to be considered.
The report recognises that “superior customer experiences for payments, parking and EV charging will fundamentally drive the move to emissions-free motoring”. With our FLTEZ software, developed with Paythru, we have created a “flexible payments gateway service and a complementary suite of white-label, integrated, customer-focused services and applications” to facilitate this and ease the transition.
Making the move to sustainability easier
Infinium Logistics is dedicated to decarbonising, electrifying, and optimising the logistics chain. We are helping our customers understand and implement green last mile solutions. We are continuing to roll out our Hyperlocal logistics hubs, fleet hubs, parking, and out of home solutions. And, as the report says, “Infinium’s Logistics’ solutions can now transition fleets by removing barriers, simplifying a fleet’s changing landscape by factoring in all its vehicles’ needs”.