Consolidation Test - for Improved Urban Environment

Structure of the Consolidation Test

Since March, the HITS project has been testing a new delivery service in collaboration with eight commercial businesses associated with various property owners in central Stockholm. The test involves these businesses placing their orders to a shared c/o address, which directs the goods to a consolidation hub outside the city centre. There, the goods from different businesses are loaded into the same electric vehicle. The vehicle then travels off-peak to a smaller hub within the city, where it drops off the goods. The final step involves transferring the goods into a new vehicle for delivery to the end customers.

Lessons Learned from the First Test Phase

The first test phase has provided several insights related to customer value and potential sustainability impacts. Feedback from participants indicates that they are interested in services beyond just the delivery itself, including the option to store goods at one of the hubs and to handle returns. Participants also expressed a desire for data on their deliveries, which could be used in sustainability reports.

"We've found that the new delivery method has worked well so far. There is a lot of potential in this project, and we look forward to continuing our participation and seeing how it develops. The initiative has made us rethink our orders and deliveries, and how consolidation could positively impact city traffic," says Hanna Keskimaula, Building Operations Engineer at Amazon.

Strong Potential to Reduce the Number of Deliveries

According to a study by IVL (Swedish Environmental Research Institute), there is potential to reduce delivery traffic by up to 50 percent with increased consolidation in the city. Since this pilot involved only a few participants and small volumes, the project has not yet demonstrated significant sustainability effects at this early stage.

"Our measurements show that trucks operating in the city often run with low load factors. If property owners and businesses work together to take control of their deliveries, better opportunities for consolidating goods delivered within the city will emerge. This means the same amount of goods can be delivered using fewer, but fuller, vehicles," explains Sebastian Bäckström, IVL.

Second Test Phase - Focus on Increased Volumes and Additional Services

Building on the lessons learned from the first test phase, the second phase will begin in mid-September. The goal is to increase volumes and test additional services that create value for the customer and enhance their experience. Property owners believe that satisfied customers are a strong incentive for them to work more actively with goods and consolidation.

"The test will include the consolidation of food and refrigerated items, offer delayed delivery options, and allow for the temporary storage of goods before delivery to the city hub. We will also explore solutions for providing customers with access to their sustainability data," says Jack Lu, project manager at CLOSER.

The consolidation test is funded by and conducted in collaboration with the property owners Vasakronan, AMF Fastigheter, Pembroke, and Fabege, and the transport providers Ragn-Sells and Svedin. The test is part of the HITS project.

Please contact Jack Lu, Project Manager, if you want to know more.
Mail to: Jack.lu@lindholmen.se.

Learn more about HITS.