Citizens are becoming increasingly aware of the polluting effects of combustion engines vehicles as they are victims themselves. It becomes necessary for city rulers to restore a healthier living environment where supply and consumption can thrive.
If urban logistics roots lay in the last kilometer delivery, it has evolved a lot in recent years. The Fiber City concept is an extreme example. More and more cities are taking necessary steps to make atmosphere breathable, infrastructures usable and noise acceptable. Paris, London, Milan, Lyon, Toulouse … are part of these cities. In most cities, rivers and waterways are well maintained natural infrastructure. As such, it is a public asset where clean logistics vectors can circulate decongesting the streets of the city as long as it is curated.
AMME strives to take into consideration all these elements in a multidisciplinary and comprehensive approach. If false good ideas are possible, only a systemic approach can help reduce the emergence. The
AMME solution is aimed at the city rulers and at citizens of today and tomorrow.
This project has a great economic, social and environmental sense as it is built on a coherent and detailed knowledge of the last kilometer delivery market.
Three phenomena have surfaced over the past few years that explain the strong growth in goods traffic in the city:
- IT has revolutionized warehouse management and relationships with stores. Nowadays, almost all stores can transmit status of their inventory control in real time to a warehouse located at the other end of the country and receive the goods the next morning to put on the shelf before the store opening. We went from a weekly or bi-weekly mass-scale supply to a de-massified daily supply with all the consequences that this represents in terms of circulation for cities (increased delivery frequencies and therefore vehicles).
- Shops have no inventory, inventories are on the roads. Store owners prefer to allocate square meters for retail space.
- NICT have changed the consumption patterns and thus distribution (e-commerce). Deliveries increase sharply and are not massified because of the heterogeneity of orders, products and distribution sites. E-commerce has been growing strongly for many years to the point that it has altered transport organizations. The competition is so fierce that offers distinction bear on the service (leadtime, proximity, free service, returns). These services are in conflict with the general interest for reduced pollution. Does one really need same day delivery or to receive three pairs of shoes when only 1 pair is wanted implying that 2 pairs will be returned?
Coping with these phenomena, carriers remain fragile operators as their organizations, capabilities and profitability have limited flexibility. The rise of the flows is not sustained by a profitability rise. The latter is deteriorating amongst most of the players because they have a real difficulty to adjust their business model to the new constraints (customers and territories). Costs control is at its maximum and does not leave any room to increase margins while changes of flows generate IT and logistics costs combined with a fierce competition prevent from increasing prices significantly.
AMME introduces a new « organization » for the management of the last kilometer flows, which is inspired by industrial optimization methods (« milk run ») as well as by the management of people flow (subway or bus) which is historically much more productive than these of goods.
Compared existing patterns, this new organization is a cultural disruption that will succeed only because it offers a dual economic and environmental response to its customers