Harnessing the Physical Internet: URBANE’s Innovative Approach to Urban Logistics

UNDERSTANDING URBANE

URBANE —Upscaling Innovative Green Urban Logistics Solutions Through Multi-Actor Collaboration and PI-inspired Last Mile Deliveries— is a Horizon Europe project coordinated by INLECOM that started in September 2022 and will run until February 2026. The project supports the transition path towards effective, resilient, safe and sustainable last-mile transport, through the implementation of innovative solutions in four Lighthouse Living Labs (LLs) located in Helsinki, Bologna, Valladolid and Thessaloniki.

A key component of such initiative is the replication of its results and lessons learned. This will be facilitated by the URBANE Innovation Transferability Platform comprising Digital Twinning Tools, open models, smart contracts governed by blockchain technology and a data-driven Impact Assessment Radar. Two Twinning LLs will be undertaken by the cities of Barcelona (Spain) and Karlsruhe (German), demonstrating their own innovative approaches to the last mile challenge using the tools developed in the Lighthouse LLs.

URBANE’s commitment to upscaling is further strengthened by the engagement of six early adopters (Follower Cities) in feasibility studies of the innovations demonstrated in URBANE and their adoption, thus stimulating the formulation of new LL communities across Europe.

URBANE advances the Innovative Physical Internet (PI) approach to enhance last-mile deliveries

To decarbonize and improve urban last-mile logistics, we need to implement systematic approaches that have city-wide impacts. URBANE has been setting the foundation for Physical Internet driven operations in urban logistics through extensive research and by deploying an online PI Observatory.

Cities are experimenting with zero emission zones, urban consolidation and micro-consolidation centers, electric vehicles and cargo delivery services, and more. To ensure these have widespread benefits, a system-wide approach is required.  Unfortunately, few models exist in logistics operations that are systemically efficient and self-regulating.  

The Physical Internet model is one such model that does exist! It uses the analogy of parcel shipments as being very similar to the movement of data packets over the Internet.  The PI-inspired model imposes relatively few constraints on how service providers operate their delivery networks.  It does, however, require each service provider to interact together through standardised inter-networking protocols.  It also requires service providers to share resources for network operations to run efficiently and effectively. The PI model provides a set of standard rules that, when adopted, allow service providers and city administrators to easily consolidate system-wide parcel flows and optimise the last-mile delivery process.  

The PI-inspired model is at the core of the URBANE’s methodology. The project published a deliverable on the potentials of PI-inspired models in last mile logistics. URBANE’s objective is to demonstrate how innovative technologies, implemented using evolving PI concepts (collaboration, asset sharing, and standards), can achieve up to 20% reductions in greenhouse gas emissions from last-mile deliveries while maintaining service levels and reducing costs (monetary, environmental, and social). It is hoped that the demonstrations made in the first two phases of the project, along with the feasibility studies, will encourage other European, and international, cities to adopt the approaches developed in the URBANE project for improving the environmental and operational aspects of last mile delivery.

Insights and Innovations: The PI Observatory’s Impact on Last-Mile Delivery

In addition, URBANE has developed a PI observatory to share market-oriented information and news related to Physical Internet initiatives in order to generate a better shared understanding among different types of stakeholders concerning the dynamics, competition, potential customer segments, buying patterns, and additional key aspects in the field of last mile delivery at local and international levels.

The Physical Internet Observatory offers cities and logistics operators examples of best practices at a European level, allowing to share and diffuse information about lessons learnt from pilots. It also showcases models for different types of cities, which helps to identify the right format for each urban context, acknowledging that urban logistics needs are very varied across Europe.Blanca Yáñez Serrano, URBANE’s Communication, Dissemination & Exploitation Officer

The PI Observatory website is composed of three sections:

  • Products: Market-ready innovations and technologies that have proven to make a positive impact in European cities and serve as great examples of how to make future urban logistics greener and more sustainable.
  • Best practices: Use cases showcasing the successful deployment of the PI in cities that can serve as valuable references for new pilots and implementations.
  • Insights: Latest innovation trends, studies, expert opinion pieces, and news about the Physical Internet and the last-mile delivery sector.

Urban logistics has operated in a relatively unregulated and ad hoc manner for much of its history.  The hands-off approach accorded to logistics development in cities was acceptable when last mile delivery operations were a small fraction of overall urban logistics activities.  However, with the growth of ecommerce and its focus on rapid direct to consumer deliveries, the environmental and social impacts of last mile delivery have become problematic.  In addition, the individual business focused approach taken by logistics service providers has resulted in systemic inefficiencies and increasing monetary costs for each delivery.  A new approach is required, and that approach is one driven by collaboration, asset sharing, and innovation.  This is exactly what the URBANE project hopes to develop through its use of the Physical Internet concept and the innovative solutions that it is developing.”  J. Rod Franklin, Professor of Logistics and Academic Director of Executive Education at Kühne Logistics University

More information on URBANE

 

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