Locational Preference of Last Mile Delivery Centres: A Case Study of Thailand Parcel Delivery Industry

Abstract

Purpose-The purpose of this paper is to improve last mile delivery capability and ensure customers' satisfaction by approaching an analytic hierarchy process(AHP) and identifying criteria framework to determine locations of last mile delivery centre(LMDC). Research design, data, and methodology-Traffic congestion and emission policy in cities are barriers of last mile delivery in dense areas. The urban consolidation centre(UCC) cannot increase last mile delivery efficiency in dense cities because of their space and traffic limitation. In this paper, we develop a case to improve last mile delivery efficiency and to ensure customers' satisfaction by concentrating on LMDC. In addition, AHP has been applied to identify criteria framework and determine LMDC locations. The weighted priorities are derived from parcel delivery industry experts and have been calculated using Expert Choice software. Results-The framework criteria have assisted decision makers to place LMDC in a dense area to enhance customer's satisfaction with last mile delivery service. Conclusions-AHP has provided ranking framework criteria of LMDC potential for parcel delivery industry. The LMDC helps by improving last mile delivery efficiency to final destination amids conditions of CO2 emissions, traffic congestion, and pollution problems. It especially concerns delivery service activities when delivering parcels to customers rather than UCC.