Planning Freight-Efficient Land Uses: Methodology, Strategies, and Tools (2022) / Chapter Skim
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From page 263... ...
A-1 Emerging trends and technologies have transformed economies, redefined business operations, and re-interpreted the value of goods and services. As such, the relationship between business partners, supply chain networks, and the demand for freight activities are also evolving with the introduction of trends and technologies exerting profound impacts on supply chains, freight transportation, and the spatial distribution of economic activities.
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A-2 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools Figure A-1. Economic system and emergent trends.
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Emerging Market and Technological Trends A-3 moment in time, it is unlikely for rising environmental awareness to change the trajectory of expedited B2C deliveries, due to the lack of awareness of their environmental impacts. These trends continuously influence each other, transforming business operations, supply chains, and freight transportation systems to varying degrees.
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A-4 Planning Freight-Efficient Land Uses: Methodology, Strategies, and Tools also a decision-maker in the urban freight system and economic system. Thus, individuals are stakeholders to take into account for this analysis.
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Emerging Market and Technological Trends A-5 within the supply chain is a production-consumption link. Hence, despite the role of the stakeholder within the supply chain, all of them face the same conditions regarding the reception and shipping of goods.
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A-6 Planning Freight-Efficient Land Uses: Methodology, Strategies, and Tools economy allows for cost savings in fixed costs of warehouses, as suppliers and carriers share available space, thus enabling them to move closer to their customers. Yet the trends that enable a greater reduction in the distances between agents are urbanization and electrification.
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Emerging Market and Technological Trends A-7 economic impact over the cost function of the decision-maker. Based on the inventory management theory -- mainly the economic order-quantity model (EOQ)
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A-8 Planning Freight-Efficient Land Uses: Methodology, Strategies, and Tools Shipment Frequency. The rise of on-demand services and flexible supply chains, fostered by trends such as expedited B2C deliveries and the sharing economy, are requiring decision- makers to account for a higher frequency of shipments.
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Emerging Market and Technological Trends A-9 A.2.2 Impact of Individual Decisions on the Transportation System Considering the impact of all of the individual stakeholders' decisions within the supply chain provides an understanding of the effect on a systemwide level. For instance, a rise in land costs in the city center would lead a distributor toward locating its warehouse farther from the city center, where the land costs would be more reasonable.
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A-10 Planning Freight-Efficient Land Uses: Methodology, Strategies, and Tools away from customers or suppliers, and by increasing or decreasing the size of their establishment, number of establishments, the overall demand of the goods, shipment frequency, and size of the shipment. Table A-3 summarizes the effects of those individual decisions on the system-level impacts by using positive signs (+)
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Emerging Market and Technological Trends A-11 increase in truck trips and truck VMTs, which results in a greater degree of congestion, longer travel times, more pollution, and more pavement damage. Increase in Shipment Frequency.
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A-12 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools A.4 Remarks is is an era de ned by social, economic, and technological transformation. e various trends are currently producing and will continue to produce counterbalancing e ects.
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Emerging Market and Technological Trends A-13 Direct Impact: Anti-globalization Causes: • Protectionism of local markets • Increase in costs due to restrictions and regulations between countries (e.g., tari ) for international shipping E ects: • Rise and expansion of local markets • Decrease in exports/imports • Increase in the speed of ful llment of goods to customers • Increase in cost of production (e.g., labor costs of factory workers in the United States are much higher than comparable costs in developing countries)
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A-14 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools Direct Impact: Expedited B2C Deliveries Causes: • Advancement in technology in e-commerce transactions • Market leaders' strategies (e.g., Amazon and Walmart) regarding faster delivery options at low costs are challenging other retailers to do the same E ects: • Changes in consumer expectations [fast deliveries (e.g., same-day shipping)
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From page 277... ...
Emerging Market and Technological Trends A-15 Direct Impact: Regular B2C Deliveries Causes: • Advancement of communication and information technology in e-commerce transactions • Security in payment methods • Pro-consumer return policy • Low shipping costs provided by the seller E ects: • Suppliers selling directly to consumer • Increase in number of small businesses, as e-commerce has low barrier to entry • Decrease in shipment size due to small order size by consumer • Increase in delivery frequency for many consumers due to small shipment size • Increase in business' geographical coverage due to cost reductions compared with o ine stores • Increased convenience for consumer (e.g., ability to shop anytime, save time) • Provides consumer with a variety of goods and suppliers E ects on Freight and Land Use: • Increased distance between customers and suppliers, since e-commerce allows customers to buy products from anywhere • Decrease in number of retail establishments, since e-commerce increases the exibility and ease of shopping • Increase in warehousing establishment size to cater to the rising volume of goods ordered online and delivered from warehouses • Increase in total demand for goods due to the variety of products available to customers • Increase in shipment frequency due to increasing internet household deliveries • Increase in shipment frequency due to rise in product returns and low return delivery costs borne by the consumer • Decrease in shipment size due to higher frequency of shipments Examples Related to Freight and Land Use: • People order the majority of their goods online.
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A-16 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools Direct Impact: Sharing Economy Causes: • Development of the internet • Advancement of information technology • Rise in environmental awareness (less owning and more sharing) E ects: • Changes in connections between manufacturers and customers • Increase in efficiency of last-mile deliveries • Increased utilization of existing infrastructure and assets • Reduced barriers to entry for small- and medium-sized businesses E ects on Freight and Land Use: • Closer locations to o er exible points of pickup and distribution • Decrease in establishment size due to the proximity of locations • Increase in demand for goods as transport costs get more competitive from shared digital marketplaces • Increase in delivery frequency from increasing demand and closer proximity of stakeholders • Decrease in shipment size due to higher frequency of shipments • Decrease in truck share due to alternate delivery options (e.g., personal vehicles, bikes)
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Emerging Market and Technological Trends A-17 Direct Impact: Unmanned Delivery Vehicles Causes: • Increase in expectations for higher productivity and operational performance due to the in uence of globalization processes • Increase in demand for more exible supply chains due to in uence of internet economy, and its impact on people's preferences • Transformation of the supply chain • Innovation in technology E ects: • Faster and more exible supply chains • Increase in productivity, e ciency, and reliability of the supply chain • Increase in streamlined processes E ects on Freight and Land Use: • Less distance between agents due to capacity and range constraints of the vehicles, and increase in supply chain links as accessibility increases due to ease of transportation • Decrease in establishment sizes due to better space utilization with more frequent deliveries • Increase in number of establishments as smaller, new points of distribution can be used • Increase in delivery frequency and decrease in shipment size in response to more exible/ demand-oriented operations Examples Related to Freight and Land Use: • Delivery robots • Delivery lockers • Drones Source: (Schwarz 2008)
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A-18 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools Direct Impact: Connected and Autonomous Vehicles Causes: • Increase in demand for more exible supply chains due to in uence of internet economy, and its impact on people's preferences • Innovation in technology E ects: • Faster and more exible supply chains • Increase in alternative modes for deliveries • Increase in e ciency of deliveries (both long-haul and last-mile) • Increase in e ciency of transport • Improvement of assets and space utilization, and supply chain e ciency (e.g., increase in vehicle usage e ciency)
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Emerging Market and Technological Trends A-19 Direct Impact: Urbanization Causes: • Increase in migration of people from rural to urban areas • Enhancement and expansion of public transit systems in urban areas, facilitating commuting within the city • Decrease in accessibility to jobs in rural areas E ects: • Increase in urban sprawl • Increase in housing demand but also a decline in household size • Increase in the density of urban populations and land abandonment in rural areas • Increased demand for goods and services in urban areas • Increased productiveness in concentrated urban centers due to economies of scale • Decrease in household size and increase in number of houses built in cities E ects on Freight and Land Use: • Increase in freight demand in urban areas • Increase in delivery frequency • Increase in real estate prices in urban areas • Increase in land abandonment in rural areas • Decreased distance between warehouses and customers for fast last-mile deliveries • Surge of alternative modes of transport for delivering goods within the city Examples: • In 2017, about 117 million people lived in urban areas of Japan, compared with 11 million people in rural areas. Extremely populated cities and abandoned rural areas in Japan have caused government concern.
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A-20 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools Direct Impact: Electri cation Causes: • Rise in environmental awareness • Change in climate • Innovation in technology E ects: • Increase in renewable energy use • Increase in alternative modes of transport (i.e., environmentally clean vehicles) • Increase in e ciency in energy usage • Increase in sustainable operations • Increase in network connectivity and accessibility (e.g., by providing alternative transport modes)
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Emerging Market and Technological Trends A-21 Direct Impact: Advanced Manufacturing Causes: • Advancement of technology, including Arti cial Intelligence (AI) , automated manufacturing systems, 3D printing technology, etc.
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A-22 Planning Freight-Ef cient Land Uses: Methodology, Strategies, and Tools Indirect Impact: Arti cial Intelligence, Big Data Analytics, and the Internet of ings Causes: • Increase in expectations for higher productivity and operational performance due to the in uence of globalization processes • Increase in demand for more exible supply chains due to the in uence of internet economy, and its impact on people's preferences • Transformation of the supply chain through the in uence of the sharing economy pushing toward better asset utilization • Innovation in technology E ects: • Improvement of demand forecasting • Improvement of asset and space utilizations • Improvement of risk mitigation processes • Improvement of route optimization • Increase of streamlined processes • Increase in safety and security • Increase in productivity, customer experience, and level of service • Decrease of redundancies and costs, and enhancement of cost management capabilities • Surge of new business models (i.e., integrated, shared, and customer-driven markets) • Increase in network connectivity and accessibility • Increase in productivity, exibility, e ciency, and reliability of the supply chain E ects on Freight and Land Use: • Increase in delivery frequency and decrease in shipment size due to demand-oriented operations • Decrease in delivery frequency and increase in shipment size due to longer distance shipments • Decrease in traditional truck share due to higher usage of alternative modes • Increase in traditional truck share for the sake for higher e ciency Examples Related to Freight and Land Use: • Automatic inventory replenish system • Data-driven decision-making processes • Tra c and eet management • Resource and energy monitoring, equipment and employee monitoring, physical security, connected retail Source: (Consultancy 2018)
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Emerging Market and Technological Trends A-23 Indirect Impact: Rising Environmental Awareness Causes: • Increase in exposure to information relating to environmental issues and climate change • Increase in community awareness about how their actions cause environmental degradation • Increase in desire of communities to protect the environment, for themselves and future generations E ects: • Increase in desire to use cleaner transportation modes for freight activities, and reduce carbon footprint • Increase in collaboration among stakeholders to reduce the impact of their activities • Increase in urban ful llment centers in the heart of the city to ful ll the escalating amount of e-commerce-related deliveries E ects on Freight and Land Use: • Surge of environmentally friendly shipping alternatives (e.g., bicycle for short-distance deliveries, electric trucks) • Increase in payload of vehicles due to consolidation practices • Decrease in delivery trips • Closer location of warehouses to customers Examples: • e Sky Tree Tower in Tokyo, Japan, employed the use of two UCCs to manage all the deliveries to more than 320 businesses within the development.
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A-24 Planning Freight-Efficient Land Uses: Methodology, Strategies, and Tools References 1. Abate, M., and G
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