The impact of shipment consolidation strategies for green home delivery: a case study in a Mexican retail company

Andrés Muñoz-Villamizar, Josué C. Velázquez-Martínez, Christopher Mejía-Argueta and Karla Gámez-Pérez

International Journal of Production Research, 2022, vol. 60, issue 8, 2443-2460

Abstract: The growth of e-commerce has increased the number of home deliveries that need to be made in retail operations. Strategies such as reducing routing distance using optimisation models have been the most popular approaches to enhancing the efficiency of the delivery process and reducing its environmental burden. However, recently, customer purchasing behaviour has become relevant in understanding demand trends and increasing the effectiveness of the supply chain process. Customers are subject to different incentives to drive them to wait longer for their home deliveries. These incentives allow companies to pool and ship in more cost-efficient and energy-friendly alternatives. In this article, we present a methodology that uses a mixed-integer-linear programming model to evaluate the impact of extending delivery slots. We use real data from one of the largest retail companies in Mexico to analyse the impact of different time slot extensions for three different criteria: distance, transport costs and CO2 emissions. Our results show that the common approach of minimising distance is not recommended for any of the scenarios under study. On average, having up to 4 days for deliveries leads to savings of 57% in total distance, 61% in total costs and 56% in fuel consumption and/or CO2 emissions.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2021.1893852 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:60:y:2022:i:8:p:2443-2460

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2021.1893852

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().