1. Freight & Fleet Programmes Agile Urban Logistics 02/04/14

2. Heading 2 Freight & Fleet Programmes 2

3. GLA application to TSB Future Cities programme Hypothesis: the use of data, technology and innovative, collaborative business models to better manage systems and services in a city Expose and exploit flexibility in supply and demand to better utilise resources – space, time, energy, materials Funding to support innovation in key sectors and to deliver against key city challenges –growth, congestion, pollution… Secured funding for demonstrator projects that can lead to deployment at scale PROJECT ORIGINS

4. The key growing road use in London 43% growth projected to 2030 Growth of e-commerce is key driver Rapid innovation in the home deliveries sector – especially in the use of data, IT and business model innovation Can this be tailored towards Mayoral priorities to mitigate congestion and pollution? VANS AND CONGESTION

5. OBJECTIVES Create fewer, fuller vehicles Promote re-timing away from peak hours Promote re-routing of journeys away from the most congested roads and pollution hot spots Promote consolidation and a reduction in the number of pick-ups/drop-offs Promote utilisation of low emission vehicles Influence customer preferences to help achieve any or all of the above

6. SWEET SPOT commercial advantage customer convenience externalities market inefficiencies

7. Mayor’s office backing Working with TfL Freight team Timeframe: 2014-16 Funding: £750k - £1.5m (+ matched investments) Three stages – –Options appraisal, demonstrator design, buy-in –‘On the ground’ demonstrator(s) –Evaluation APPROACH

8. Commissioned Arup to – –Assess the state of the market –Understand capabilities & interest –Appraise options –Co-design demonstrator –Secure buy-in / commitments –Develop implementation plan –Establish evaluation framework APPROACH – STAGE 1

9. Freight & Fleet Programmes London Urban Logistics Overview Peter Wilkinson - TfL Dan Evanson - Arup

10. Heading 10 Freight & Fleet Programmes 10 Why have we focused on B2C Safety: Home Deliveries are typically executed by less regulated van fleets which already have a disproportionate (if less high profile than HGV) impact on TfL’s ‘Killed and Seriously Injured’ (KSI) statistics Congestion: Home delivery requires less efficient deliveries compared to traditional retail models and drives significantly more vehicles onto the roads, predominately in the peak hours Environment: The predominant fuel used is currently diesel which is high in nitrus oxide (NOx) and particulate matter (PM) outputs. This is enhanced by the high intensity multi-drop routes which result in very poor MPG performance, unwelcome driving behaviours such as engine idling and therefore even more pollutants The market is growing London is growing

11. Heading 11 Freight & Fleet Programmes 11 The National Picture 1 st e-commerce delivery in 1994 2012 – 10% of retail spend (Royal Mail) 2018 – 21% of retail spend (British Retail Consortium) Trend towards ­ Time sensitive deliveries (Shutl, DPD) ­ On line SKU explosion (amazon have 1,191,000) ­ Increased connectivity / confidence ­ Mobile and tablets

12. Heading 12 Freight & Fleet Programmes 12 The National Picture In 2012, 400,000 tablets were given as Christmas gifts. “Our behaviour as consumers is driving this change in e-commerce and freight deliveries; everyone needs to be part of the solution.” (CILT, 2014). In 2013, there were over 4 million.

13. Heading 13 Freight & Fleet Programmes 13 The London Picture There are really multiple E-commerce supply chains and all are constantly and rapidly evolving. We’re seeking to better understand the picture in London, and then to help suggest the most effective solutions

14. Heading 14 Freight & Fleet Programmes 14 Deliveries analysis to Organisation X in Zone 1 – 5 days data equivalent In total 250 vehicles performed deliveries to Organisation X where 30 of them were purely for personal deliveries

15. Heading 15 Freight & Fleet Programmes 15 Arup Post Room Data – Amazon deliveries Original date of deliveryDelivery companyTime booked 14/01/2013City Sprint11 DPD09 Hermes12 Yodel13 15/01/2013City Sprint09 Parcel Force12 Yodel11 16/01/2013City Sprint09 Hermes11 17/01/2013City Sprint10 DPD11 Parcel Force10 Royal Mail (Special)11 Yodel12 Amazon shipped circa 10% of the deliveries received when obvious business deliveries were discounted. Goods came via 18 different carriers Taking a day in Jan as an example we can see that 5 different carriers deliver to our office. Parcel Force and City Sprint deliver just a few minutes apart! *that companies may deliver non-Amazon as well

16. Heading 16 Freight & Fleet Programmes 16 Specific Concerns Building London centric knowledge Multiple attempted deliveries / returns Duplicate journeys Absence of collaboration (manufacturers, retailers and consumers) Road space All in order to: -Tackle inherent inefficiencies within London’s transport system -Address these inefficiencies and mitigate their impacts

17. Heading 17 Freight & Fleet Programmes 17 Consumer Quotes Essentially convenience - can grocery shop after hours from living room. Also, shopping with small children is stressful so I prefer to order online I live in Middlesex so don't want to have to carry much home when commuting as will probably be standing If I can carry it easily and its not too valuable work is ok, otherwise I prefer near home. Depends on the opening hours of the pick-up point: I need them to be open late in the evening I would prefer something to be part of my daily route. Whether this is near home, near work, or near the principle train stations that I use on my daily commute I'd rather large items be delivered to Home at a given, narrow, time slot. Convenience of linked trips (public transport node on route home / shop where I'd drive to do normal shopping) Location, convenience and supporting local convenience store / newsagent if I have to go to shops and carry the items home, the advantage of the delivery is lost "Tube/train station- generally experience poor customer service at these locations, so doubt they would be able to cope with parcel collections as well.

18. Heading 18 Freight & Fleet Programmes 18 Attendee Overview

19. Heading 19 Freight & Fleet Programmes 19 Discussion Based upon what you’ve heard: What works well for ecommerce and home deliveries? What doesn’t work well? Are there any significant barriers to improve current operations? What is your view of the characteristics of different product supply chains?

20. Heading 20 Freight & Fleet Programmes 20 Break

21. Heading 21 Freight & Fleet Programmes 21 A Recap of the Questions for Discussion Based upon what you’ve heard: What works well for ecommerce and home deliveries? What doesn’t work well? Are there any significant barriers to improve current operations? What is your view of the characteristics of different product supply chains?

22. Heading 22 Freight & Fleet Programmes 22 Potential Solutions for debate Examples solutions could be: Alternative modes: use of electric vehicles, delivery of goods by rail into major rail terminals Click & Collect: In tube/NR stations and other regularly used locations Lockerboxes: all couriers would be able to use them, not single branded Penalty prices: charges put in place for deliveries into central London Consolidation of deliveries: combine deliveries in different areas by postcode People power: community / neighbourhood based solution Out of hours delivery: if consumers prefer deliveries to be made at home, switch activity to times that better suit…

23. Heading 23 Freight & Fleet Programmes 23 Innovative Solutions Demonstrators Obstacles Viability

24. Heading 24 Freight & Fleet Programmes 24 Summary Objectives Progress Outputs from the session Next steps

25. Heading 25 Freight & Fleet Programmes Questions? For further information contact: Thank you Email:freight@tfl.gov.ukfreight@tfl.gov.uk Web:www.tfl.gov.ukwww.tfl.gov.uk Peter Wilkinson: PeterWilkinson@tfl.gov.uk Dan Evanson: Dan.Evanson@arup.com