Green Last-Mile Delivery: Adapting Beverage Distribution to Low Emission Urban Areas

Abstract

Electrifying urban last-mile logistics is an important step towards reducing carbon emissions which requires replacing conventional vehicles with low-carbon alternatives that offer comparable operational and cost characteristics. This study presents a methodology for evaluating the feasibility of electrifying an urban delivery fleet, using data from a major beverage company in Seville as a case study. Applying a fleet and route optimization algorithm for various vehicle combinations, we demonstrate that emerging electric vehicle options, combined with a redesigned fleet mix and an optimized routing, can already enable cost-efficient electrification of distribution activities in the city centre. Furthermore, our analysis suggests that full electrification of the company’s local distribution network may be possible by 2030, depending on the availability of larger electric trucks. Our results show that currently available electric vehicles can fully substitute conventional options in the case study context, with higher capital costs offset by lower energy costs in most cases. The electrification of urban logistics can yield significant environmental benefits, particularly if powered by a clean energy mix.