Cutting Redundancy, Slashing Emissions: The Role of Consolidation for a Sustainable Last-Mile Delivery

This study investigates the efficacy of Consolidated Last-Mile Delivery (CLMD) strategies in improving operational efficiency and reducing environmental impact within last-mile logistics. Through an agent-based simulation model applied to the Hanover Region, Germany, we examine the outcomes of transitioning to a CLMD framework, where a single provider manages all parcel deliveries. Our methodology integrates real-world parcel demand data with a traffic simulation to assess two CLMD scenarios against a baseline of current delivery operations. The first scenario focuses on the consolidation of low-density rural areas in addition to conventional delivery operations, while the second scenario, a fully consolidated delivery concept, extends consolidation across the entire delivery region. Our findings indicate that CLMD strategies, particularly in rural areas, significantly improve efficiency without adversely affecting adjacent urban delivery regions. Our results also show a maximum reduction of up to 58.6 % in total kilometers driven and a corresponding decrease in CO
2
emissions by up to 44 % through CLMD strategies.