Assessing the feasibility and benefits of a shared-fleet collaboration in urban logistics: a case study of a public-private partnership in the UK

Abstract

1. Purpose: shared-fleet operations, where the collection/delivery (CD) rounds of one fleet (the ‘donor’ fleet) are optimised to include the CD activity of another, are a possible approach to reducing freight vehicle impacts in urban centres. The aims of this study were to: (i) determine the feasibility of a shared-fleet collaboration involving a private company (Carnival UK, (CUK)) and a public municipal authority (Southampton City Council, (SCC)) as the prospective fleet donor; ii) quantify, based on real-world data, the potential benefits of such a shared-fleet collaboration in terms of reducing vkm and emissions of carbon dioxide (CO₂); (iii) assess the potential for a real-world trial to identify operational challenges and practicalities.

2. Research approach: a one-week survey of business-as-usual (BAU) deliveries made by local suppliers to CUK’s warehouse was undertaken to quantify consignment volumes, weights and receipt times. These data, together with SCC’s current courier fleet schedules, were used to quantify the feasibility and benefits of merging operations. Route optimisation tools were employed to model an intervention scenario where SCC vehicles incorporated collections of CUK’s consignments from local suppliers into their existing CD rounds. The intervention was compared to BAU to
quantify the potential reductions in vkm and CO₂ emissions, with suitable suppliers identified for a possible real-world trial.

3. Findings and originality: a shared-fleet collaboration involving 20 local suppliers serviced by five SCC vans performing 19 rounds/week could achieve reductions of: 80% in vehicles used; 56% in warehouse visits; 32% in vkm; and 89% in CO₂ emissions. A real-world trial is being planned to understand practical and real-world scheduling challenges.

4. Research impact: the research challenge lies in optimising for both fixed and more dynamic demands across both the donor and secondary fleets where some activities take priority and where vehicle capacity is fixed. A Travelling Salesman optimisation approach considering time windows and the range constraints of electric vehicles was used along with a time-based cost allocation method to share costs and benefits fairly between the parties.

5. Practical impact: the research identified a practical approach for public authorities to enhance the efficiency of their vehicles by collaboratively sharing them, while also generating additional revenue for the authority through providing a logistics service. It also highlights the issues associated with establishing and managing such a collaboration where the donor fleet has to cope with fixed and dynamic demands. A real-world trial emanating from the findings is planned for later in 2023/24.

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Identifiers

ORCID for Ismail Aydemir: orcid.org/0000-0002-7847-1801

ORCID for Fraser Mcleod: orcid.org/0000-0002-5784-9342

ORCID for Matt Grote: orcid.org/0000-0001-5590-7150

ORCID for Tom Cherrett: orcid.org/0000-0003-0394-5459

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