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SUSTAINABLE BUSINESS MODEL INNOVATION IN LAST MILE LOGISTICS

Recent project report by Kien Do Trung, Janette Kotivirta, Viggo Norrel, and Britta Gammelgaard

Below you find a comprehensive report in a PDF form titled Sustainable Model Innovation in Last Mile Logistics. You can read the abstract below:

”This comprehensive report investigates business model innovations in the logistics service industry. The strong growth in e-commerce causes many complex operational and environmental issues to stakeholders in the last mile system. The increasing volumes of deliveries coupled with a demand for fast delivery, puts especially logistics service providers under pressure to carry out the last mile in a cost-efficient manner while minimizing negative environmental and social externalities. Additionally, the Danish government and the municipality of Copenhagen have formulated ambitious plans. Copenhagen has pledged to become the first carbon neutral capital by 2025. Potential future regulations as well as growing consumer awareness on sustainability issues, necessitate LSPs to take action by innovating their business models to tackle the complex issues at hand and position themselves to be more competitive in a way that does not come at the expense of the environment and society.

Based on an extensive literature review of academic sources, industry reports, and interviews, a list of last mile innovations have been reviewed. These innovations have then been reviewed through the lens of two theoretical concepts, business model innovation by Amit and Zott (2012) and value co-creation by Prahalad and Ramaswamy (2004), to derive a business model innovation catalogue that can help practitioners and representatives of last mile stakeholders to get an overview over different innovations and make informed decisions about choosing the ones around which they can innovate their existing business models. The key takeaway is that a variety of different last mile innovations needs to be implemented into new business models in order to solve the issues regarding economic, environmental, and social sustainability.”