Using Procurement Power to Accelerate Sustainable City Logistics: Lessons from Change Agents in The Netherlands
Abstract
:1. Introduction
2. Literature
2.1. City Logistics Stakeholders and the Role of Receivers
- Quantify the vehicle movements and related CO2 emissions that are generated by the procurement of products and services (e.g., counting on site, estimations using procurement data).
- Integrate low-emission criteria when selecting suppliers (e.g., in tender procedures).
- Coordinate delivery days and moments (e.g., stimulate off-peak deliveries) within an area and reduce delivery frequencies (e.g., no longer ‘next-day-delivery’ but two fixed delivery days per week).
- Introduce or stimulate the use of physical locations where deliveries are consolidated and zero-emission vehicles are used, such as an UCC, parcel lockers, microhub, or central mail room.
- Initiate or join collaborative procurement schemes and collective waste management to reduce the number of suppliers, and thus vehicle movements, in an area.
2.2. Sustainable Procurement and the Role of Change Agents
3. Method
4. Case Descriptions
4.1. City Logistics The Hague
4.2. University of Amsterdam (UvA) and Amsterdam University of Applied Sciences (AUAS)
- The following large volume and predictable product categories are consolidated at a city hub: printing paper, sanitary products, cleaning products, office supplies, vending products, and materials for installation and maintenance. The city hub is strategically located at the edge of the low emission zone, next to the A10 ring road and approximately five kilometres from the city centre. The suppliers deliver their goods at the hub and pay the hub-operator for the last mile which is carried out with zero-emission vehicles.
- The reception of B2B parcels is centralised at a mailroom of the AUAS in the southeast of Amsterdam. From there, the parcels are distributed daily with zero-emission vehicles to the buildings of the UvA-AUAS, where they are delivered into parcel lockers. The designated employee can open the parcel locker with a unique code at any preferred time. This avoids the (ongoing) arrival of different parcel couriers during the day and saves workhours at the reception desks.
- Employees and students of the UvA-AUAS can use a central location for their B2C deliveries. From there, the parcels are delivered into parcel lockers at the universities. Of these deliveries, 80% are carried out by an electric cargo bike.
- Sustainable logistics has become a criterium in tender procedures. As a result, the window cleaning company uses zero-emission vehicles on their route to and between UvA and AUAS buildings.
- Delivery frequencies have reduced where possible. For example, office supplies are delivered twice a week instead of “within 24 h”.
4.3. Business Improvement Zone (BIZ) Knowledge Mile
- After the realisation of the city hub for the UvA-AUAS (see case UvA-AUAS), actions were taken to scale this concept to BIZ Knowledge Mile. After a workshop, a questionnaire, and several meetings, it appeared in 2020, however, that there was insufficient willingness among the individual BIZ members and their suppliers to join this concept. The individual chain partners did not feel the responsibility and urgency to lead the change and expected the other to make the first move.
- In 2020, a Collective Waste Contract was drafted with one waste collector. BIZ members that joined this (non-mandatory) contract work together on the reduction of waste and related transport movements in the Knowledge Mile area. In 2022, the contract became available to neighbouring associations as well.
- At the end of 2021, a collective procurement platform for office supplies was launched for the members of both the BIZ Knowledge Mile and the neighbouring association De Plantage (which consists of mainly cultural institutions). The aim of the platform is to (a) make the procurement of sustainable and circular products easier, (b) realise financial benefits from procurement volume, and (c) reduce transport movements and emissions in the area by selecting a common supplier that delivers with zero-emission vehicles.
- In mid-2021, research was begun to explore the potential of multifunctional neighbourhood hubs. The BIZ Knowledge Mile envisions a physical location in the area where logistics functions are combined with economic and social functions (e.g., parcel pick-up point, shared e-mobility, repair café, etc.).
4.4. Green Business Club Utrecht (GBCU)
- Delivery days and frequencies are harmonised among participants that use the same supplier for office supplies.
- Freight flows are consolidated at a logistics hub on the edge of the city. The hub is located next to the A2 ring road, four kilometres from the central station. The hub-operator uses zero-emission vehicles for the last mile and also serves organisations outside of the GBCU area. The first two suppliers that use the hub for GBCU participants are suppliers of hygiene products (e.g., toilet paper) and vending machine products (i.e., coffee, tea, snacks, and soft drinks).
- Parcel lockers are placed at the entrance of buildings to consolidate parcel deliveries for employees (B2C).
- Open dialogue is used by the Municipality of Utrecht as a tender method for catering. Ambitions and solutions for zero-emission city logistics are part of the dialogue.
5. Results
- Lesson 1. Use current networks and organisations to collect knowledge, share ambitions, and create commitment.
- Lesson 2. Identify who suffers from the current situation and/or desires improvement and start a dialogue with them to define their drivers and preconditions for change.
- Lesson 3. Carry out a ‘baseline measurement’ through an onsite observation or a supplier survey.
- Lesson 4. Develop a vision for the area and/or logistics chain.
- Lesson 5. Create a ‘seed-group’ of enthusiastic people and facilitate the connection within this group.
- Lesson 6. Appoint one or more high-ranking ambassadors.
- Lesson 7. Sign a deal, covenant, agenda, or letter of intent to formalise the commitment and increase awareness.
- Lesson 8. Determine who monitors the progress, how results are measured, and how stakeholders are informed.
- Lesson 9. Consult the market for solutions; do not prescribe solutions as procurer.
- Lesson 10. Do not limit your focus on one single solution to reduce transport movements and emissions.
- Lesson 11. Be aware that a feasible business case is made-to-measure.
- Lesson 12. Ask chain partners to frequently invite a colleague to meetings or organise specific sessions to share knowledge broadly across organisations.
6. Discussion
6.1. Contribution to the Existing Literature
6.2. Limitations of the Research
6.3. Recommendations for Further Research
- How can zero-emission city logistics become a fascinating topic for employees that procure or order products and services?
- What is the best approach to accelerate efficient and zero-emission logistics for repair and maintenance services, ICT-products, waste collection, and food?
- How can we overcome barriers that result from the fact that costs and benefits are dispersed over different actors and over different departments of individual organisations?
- How do concepts for sustainable logistics become attractive and accessible for smaller organisations with low procurement volume?
- Which chain partner takes the initiative in realising zero-emission city logistics and under which circumstances?
- Could a ‘city-logistics incoterm’ contribute to a better allocation of costs, benefits, and responsibilities?
7. Conclusions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Date | Number of Participants | Cases Presented (See Table 2) | |
---|---|---|---|
Workshop 1 | 23 April 2020 | 15 | c, d, g, h, i |
Workshop 2 | 12 May 2020 | 16 | b, e |
Workshop 3 | 19 January 2021 | 22 | a, b, e, f, h, j |
Total unique participants/cases involved: | 37 | 10 |
Name of Case | Start Year | City | Receivers Involved | Position of the Change Agent Involved | |||
---|---|---|---|---|---|---|---|
Government | Universities | Businesses | Medical centre | ||||
a. City Logistics The Hague | 2012 | The Hague | x | x | Temporary staff | ||
b. Municipality of Amsterdam | 2014 | Amsterdam | x | Internal staff | |||
c. Municipality of Rotterdam | 2014 | Rotterdam | x | Internal staff | |||
d. UvA-AUAS | 2014 | Amsterdam | x | Researcher | |||
e. Green Business Club Zuidas | 2018 | Amsterdam | x | x | Internal staff | ||
f. Green Business Club Utrecht | 2018 | Utrecht | x | Temporary staff | |||
g. Campus Heijendaal | 2018 | Nijmegen | x | x | Researcher | ||
h. BIZ Knowledge Mile | 2018 | Amsterdam | x | x | x | Internal staff | |
i. Cordaan | 2019 | Amsterdam | x | Advisory | |||
j. Utrecht Science Park | 2020 | Utrecht | x | x | x | Temporary staff |
Theme | Codes That Were Grouped in This Theme | Number of Factors in Group |
---|---|---|
1. Networks and knowledge | Networks, guidelines | 2 |
2. Reaching stakeholders | Problem-owners, drivers, interest | 3 |
3. Baseline measurement | Research at the gate | 1 |
4. Vision | Vision | 1 |
5. Seed-group | Leading group, connect people | 2 |
6. Ambassador | Ambassador, decision-maker | 2 |
7. Covenant | Covenant | 1 |
8. Monitoring | Measurement, communication, growth model | 3 |
9. Market | Market consultation, stable collaboration, supplier and procurer needs | 3 |
10. Variety of solutions | Local sourcing, synchronise delivery days, internal logistics | 3 |
11. Business case | Business case, internal cost-structure, savings, incoterm, franco deliveries | 5 |
12. Knowledge management | Information exchange, loss of knowledge | 2 |
Total distinct factors: | 28 |
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Balm, S. Using Procurement Power to Accelerate Sustainable City Logistics: Lessons from Change Agents in The Netherlands. Sustainability 2022, 14, 6225. https://doi.org/10.3390/su14106225
Balm S. Using Procurement Power to Accelerate Sustainable City Logistics: Lessons from Change Agents in The Netherlands. Sustainability. 2022; 14(10):6225. https://doi.org/10.3390/su14106225
Chicago/Turabian StyleBalm, Susanne. 2022. "Using Procurement Power to Accelerate Sustainable City Logistics: Lessons from Change Agents in The Netherlands" Sustainability 14, no. 10: 6225. https://doi.org/10.3390/su14106225
APA StyleBalm, S. (2022). Using Procurement Power to Accelerate Sustainable City Logistics: Lessons from Change Agents in The Netherlands. Sustainability, 14(10), 6225. https://doi.org/10.3390/su14106225