E-commerce in Europe improves convenience but strains logistics networks. EU sustainability targets encourage businesses to adopt sustainable practices like electric vehicles, real-time visibility, and urban consolidation centres.
FREMONT, CA: The surge in e-commerce activity across Europe has undoubtedly enhanced consumer convenience. Yet, it has also significantly strained logistics networks, particularly within the pivotal "last mile" phase—the final segment of a product's journey to the customer's destination. This crucial stage incurs substantial costs but also carries a notable environmental footprint within the supply chain. However, European enterprises adopt emerging trends to foster sustainability and efficiency in last-mile delivery operations.
Addressing the Sustainability Challenge
Research indicates that last-mile deliveries can represent a substantial portion, ranging from 30 to 50 per cent, of total supply chain expenses for business-to-consumer (B2C) parcels while contributing significantly to carbon emissions. This challenge has gained heightened attention as the European Union (EU) advances toward ambitious sustainability targets. The impending Corporate Sustainability Reporting Directive (CSRD) will mandate numerous companies to disclose their greenhouse gas emissions, fostering transparency and necessitating decisive action.
Several studies, such as the 2022 Green Last Mile Europe Report, underscore the disparity between environmentally conscious rhetoric and tangible actions. Instances of "greenwashing", where companies make unsubstantiated claims regarding sustainability, are prevalent. Encouragingly, an increasing number of enterprises are now implementing concrete measures to achieve a more environmentally responsible last mile.
Several pivotal trends are reshaping last-mile delivery across Europe. The transition to Electric Vehicles (EVs) is paramount, as the EU sets ambitious goals for zero-emission truck expansion by 2030, promising a more environmentally friendly fleet traversing European roads. Moreover, technology is a cornerstone, revolutionising efficiency with real-time visibility features like delivery windows and precise estimated arrival times (ETAs). This facilitates enhanced route optimisation, curbing wasted journeys and emissions. Additionally, strategies such as delivery consolidation and using secure locker networks for customer pick-up are gaining momentum, streamlining operations and offering consumers greater flexibility. Integrating micro-mobility solutions such as cargo bikes in densely populated urban areas presents sustainable and efficient alternatives for navigating congested streets and fulfilling deliveries. Furthermore, establishing Urban Consolidation Centers on the outskirts of cities is instrumental in enabling larger deliveries to be disassembled for onward transport via EVs, bikes, or pedestrian couriers within city centres. This approach effectively mitigates congestion and emissions in urban areas, fostering a more sustainable last-mile delivery ecosystem.
The contemporary European last-mile delivery sector is experiencing a profound evolution characterised by a heightened emphasis on sustainability and operational efficiency. In this paradigm shift, sustainability and efficiency have transcended from mere considerations to primary catalysts for innovation. Through the adoption of advanced technologies, collaborative approaches, and environmentally friendly transportation solutions, businesses across Europe are actively shaping a future where the convenience of e-commerce is seamlessly integrated with a steadfast commitment to environmental stewardship.
