7.17 How does it relate to Transportation?

Whether ”First” or “Last Mile”, they both serve as connectors that either initiate or end a trip. In Transportation, there are two types or trips being done: The Movement of Goods The Movement of People The First Mile isn’t as much of an issue when delivering goods compared to people… more on this later.

(#fig:Figure 7.15)How does it relate to Transportation

Movement of Goods

1.Last Mile regarding the movement of goods is the final step in the supply chain that moves goods from the distributor/facility to the customer. 2.Last Mile usually involves parcel or small package carriers to deliver products 3.According to research done by straits, Last Mile Delivery market size is expected to reach $123 Billion USD by 2030 from the $40.5 Billion USD valuation given in 2021. 4.This is due to an increase in e-commerce and then COVID-19 further fueled the trend of ordering online. 5.The introduction of Omnichannel Supply Chains has also contributed to the market increase in Last Mile delivery.

6.In Supply Chain, traditionally the network is a Multichannel Supply Chain. This network would have departments grouped into stand alone silos with no interaction with one another. Example: A retail company would have a brick-and-mortar store and an online store. Each store would have its own supply channel such as warehouse management and transportation system. The infrastructure would only serve that one channel Since there is not overlap in the networks, overhead costs increase with less efficiency to move product. 7.Omnichannel Supply Chains, changes by integrating all networks to minimize cost and increase efficacy. Example: The retail company, whether it’s serving the brick-and-mortar store or the online store, the supply chain is designed to serve both channel simultaneously. If a customer can’t find an item in the brick-and-mortar store, they can order it online for the costumer. OR If the customer orders an Item online, they can choose to pick up the item at the brick-and-mortar store.

##Challenges? {#SupplyChain-challenge} Movement of Goods One more note on Omnichannel Supply Chains, 1.With the implementation of algorithms and predictive analytics, companies hope to be more efficient in delivering goods… But there are consequences.
2.In a lecture presentation given by Charles H.W. Edwards (Professor of the Practice, Department of City and Regional Planning UNC – Chapel Hill) to Florida Atlantic University’s Fright Mobility Research Institute, Dr. Edwards presented on companies urge to anticipate orders for the purpose of faster shipping. 3.E-commerce and online stores would look at trends generated by the number of clicks on their websites and then order products on the assumption that the consumer will eventually click the buy button. 4.The companies would order product before generating a sale and cause further unneeded stress for the First and Middle Mile, often… the consumer would never click the buy button, but the product would already be shipped from the manufacture to the distribution hub.

5.Traffic Congestion and Parking are the main issues that affect Last Mile Deliveries. 6.Distribution hubs are usually located far from the cities in more rural areas. Land is cheaper and available, more ample space for large trucks to move in and out of facilities.

7.But to move goods from the distribution hub to the final-destination (Last Mile), the challenge is traffic encountered in densely packed cities, accidents and other unforeseen events make delivery route optimization very difficult.
8.Finding parking in order to deliver goods can sometimes be difficult.