Focus On #5: Operator View - Logistical Processes & Supply Chain

Why are logistical processes and supply chain aspects relevant for MoLo Hubs from the operator's point of view? 

The MoLo Hub project takes a holistic approach in designing the cities of tomorrow and to think mobility transition and last mile logstics together. Therefore, logically logistics and supply chain aspects need to be an integral element of the project. Spatial and mobility planning highly influence and are closely connected to logistics processes and good flows within the urban area. By bringing all relevant stakeholders to the table, we ensure a development of solutions that respect everyone's demands. 

On the one hand, municipalities pursue sustainability goals that they want to achieve in time and therefore bring up regulatory challenges. On the other hand, we see a rising customer demand both for green logistics services in urban areas but also a constant rise in e-commerce volumes. To realize both, we need operational changes as well as innovations.

What are the key challenges when it comes to logistical processes & supply chain?

There are many challenges to face for logistics service providers, as the urban environment is often difficult to navigate. One dimension involves regulatory challenges from municipalities.

For example, the imposition of 'car-free' areas and sustainability restrictions require service providers to adapt their operating model. However, these regulatory changes can also be seen as opportunities for service providers to rethink and improve their processes. 

Another aspect is the availability of resources required to implement sophisticated urban logistics tailored towards a MoLo Hubs network.

For instance, warehouse capacities in close proximity to densely populated areas are crucial for sustainable operations, but suitable facilities are not easy to find. This may lead to more consolidated distribution approaches, reducing the number of service providers operating in urban areas and instead forcing them to merge their operations.

What are the key challenges when it comes to logistical processes & supply chain?

There are many challenges to face for logistics service providers, as the urban environment is often difficult to navigate. One dimension involves regulatory challenges from municipalities.

For example, the imposition of 'car-free' areas and sustainability restrictions require service providers to adapt their operating model. However, these regulatory changes can also be seen as opportunities for service providers to rethink and improve their processes. 

Another aspect is the availability of resources required to implement sophisticated urban logistics tailored towards a MoLo Hubs network.

For instance, warehouse capacities in close proximity to densely populated areas are crucial for sustainable operations, but suitable facilities are not easy to find. This may lead to more consolidated distribution approaches, reducing the number of service providers operating in urban areas and instead forcing them to merge their operations.

What are the potentials of logistical processes & supply chain aspects when it comes to implementing logistics services at shared mobility hubs?

The MoLo Hubs project offers significant potentials, as MoLo Hubs enables service providers to achieve higher delivery rates and handle return shipments as well as waste flows better than before. Regarding parcel deliveries, they will see changes in good flows and probably leaner processes, which can free up resources for service providers. Additionally, the project aims to reduce CO2 emissions by improving relevant KPIs such as driving distance and frequency.

Overall, the potential of the MoLo Hubs project lies in the integrated approach at various levels, which can lead to manifold synergy effects: Thinking mobility hubs and logistics services together, thinking distribution, maintenance & return flows together and combining them wherever we see benefits in it.

Are there any good examples from the pilot areas?

Generally, all of the participating cities have very valuable experiences, knowledge & ideas in urban logistics & mobility transition and are committed to contributing them to the MoLo Hubs project. 

There isn’t the one best example to highlight in our project, but rather the variety of pilots that makes it very valuable, also for transnational learning.

Our pilot area Mechelen (Belgium), for example works with the Flamish concept of so-called “Hoppinpoints” as mobility hubs and decided to do that in an integrated manner for their citywide parcel locker system.

In Hamburg, the public waste management provider Stadtreinigung Hamburg tests a new concept of neighborhood collection point to collect recyclable waste fractions at mobility hubs, which as of today have to be brought to central recycling yards – usually by car.

Aalborg, the Danish pilot area in our project, even combined distribution (parcel) & return flows (textile & hazardous waste fractions) in their pilot. 

What is your vision for the impact of MoLo Hubs on logistical processes & supply chains at the end of the project?

The MoLo Hubs project will help us better shape the urban logistics and supply chains of tomorrow. It brings together modern urban planning approaches, which aim to reduce pollution, individual traffic, and promote a strong public transport system, with logistics solutions that meet customer demands and the high expectations of future urban designs. Furthermore, urban logistics and supply chain operators will undergo changes in processes and goods flow. Depending on the form of application, it will also change the way of working for engineering service providers and craftsmen.

The years ahead will show us how urban logistics and supply chains will evolve with steadily increasing expectations for sustainability, availability, and quality.

Additionally, the project will provide us with valuable insights into the challenges and potentials of setting up a MoLo Hubs network that connects stakeholders from various backgrounds. Given the limited availability of resources in urban areas, the hosting partners need to find a fair and efficient way to include all relevant players without a significant drop in quality. Thanks to the participation of five cities across the North Sea region and their implementation of different use cases, we will gain broad knowledge that can foster and accelerate the deployment of MoLo Hubs in other regions, too.

Source: LIHH