A logical solution to the logistical last mile – passengers and parcels

A study in the World Review of Intermodal Transportation Research offers a solution to the problem of last-mile transportation in rural areas. The last mile, the stretch from distribution centres to end-users, has long been a bottleneck in remote regions due to limited infrastructure at those end points.

Nara Quintela Begnini and Hiroshi Morita of Osaka University, Japan, have focused on a way to integrate traditional bus routes with on-demand passenger transportation and parcel delivery services. Their solution could create a seamless and efficient last-mile network for logistics as well as making better use of buses. The team’s analysis was based on a mixed integer programming formulation, which allowed them to optimize the coordination of various transportation modes for passengers and parcels alike.

The team highlights the striking savings on transport costs and putative pollution reduction possible by integrating passenger and parcel transportation. Their simulations of rural communities shows that the approach should work better than non-integrated or partially integrated approaches. Remarkably, even when prioritizing for the passengers, there are still significant efficiency gains. Rural communities face unique challenges in terms of transportation of people and the delivery of goods. A combined bus and on-demand delivery services could streamline last-mile logistics and reduce costs and pollution significantly.

The researchers add that their approach also introduces a decision-maker support system that allows service operators to visualize trade-offs when prioritizing passenger services within such an integrated passenger-parcel delivery system. This would help service providers make better decisions about timetabling, resource allocation and the optimization of transportation.

The implications could be far-reaching offering an integrated solution to a widespread problem facing otherwise marginalised rural communities that often have limited connectivity. With better access to public transportation options and essential parcel delivery services, residents in rural areas can enjoy improved access to goods, services, and economic opportunities, transforming their daily lives. The improved sustainability of the integrated logistics approach should reduce fuel consumption and emissions, which of course benefits the rural community and the wider world.

Begnini, N.Q. and Morita, H. (2023) ‘Analysis of last-mile operations for mobility and logistics in rural areas’, World Review of Intermodal Transportation Research, Vol. 11, No. 3, pp.235–257