Value Proposition for Sustainable Last-Mile Delivery. A Retailer Perspective

Giulio Mangano, Giovanni Zenezini and Anna Corinna Cagliano
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Giulio Mangano: Department of Management and Production Engineering, Politecnico di Torino, 10129 Torino, Italy
Giovanni Zenezini: Department of Management and Production Engineering, Politecnico di Torino, 10129 Torino, Italy
Anna Corinna Cagliano: Department of Management and Production Engineering, Politecnico di Torino, 10129 Torino, Italy

Sustainability, 2021, vol. 13, issue 7, 1-15

Abstract: The sustainability of last-mile (LM) freight delivery is crucial to add value to the stakeholders in the distribution chain. However, its achievement is often hindered by a poor consideration of their needs by both literature and practice. The goal of this paper is to address the point of view of local retailers by exploring their needs about innovative LM delivery services and identifying sustainable value propositions (VP). A survey was submitted to retailers operating in the limited traffic zone of Torino (Italy). The survey data were analyzed by a factor analysis using a principal component analysis (PCA) to extract the factors. A correlation analysis was also conducted between the needs and selected contextual variables. The results show that retailers accept higher costs for more reliable deliveries and stock reduction. Retailers also correlate punctuality and flexibility because flexible and on-time deliveries allow for better inventory management, higher control, and, in turn, improved customer service level. This work is one of the first research attempts to quantify local retailers’ LM delivery needs and provides guidelines about how to design value-added logistics services. Moreover, from a practical point of view, the analysis shows the main VP that managers and practitioners should consider in the development of LM initiatives.

Keywords: last-mile delivery; sustainability; value proposition; retailers; factor analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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