Analysis of the Diffusion Behavior of an Information and Communication Technology Platform for City Logistics
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 33122
Analysis of the Diffusion Behavior of an Information and Communication Technology Platform for City Logistics

Authors: Giulio Mangano, Alberto De Marco, Giovanni Zenezini

Abstract:

The concept of City Logistics (CL) has emerged to improve the impacts of last mile freight distribution in urban areas. In this paper, a System Dynamics (SD) model exploring the dynamics of the diffusion of a ICT platform for CL management across different populations is proposed. For the development of the model two sources have been used. On the one hand, the major diffusion variables and feedback loops are derived from a literature review of existing diffusion models. On the other hand, the parameters are represented by the value propositions delivered by the platform as a response to some of the users’ needs. To extract the most important value propositions the Business Model Canvas approach has been used. Such approach in fact focuses on understanding how a company can create value for her target customers. These variables and parameters are thus translated into a SD diffusion model with three different populations namely municipalities, logistics service providers, and own account carriers. Results show that, the three populations under analysis fully adopt the platform within the simulation time frame, highlighting a strong demand by different stakeholders for CL projects aiming at carrying out more efficient urban logistics operations.

Keywords: City logistics, simulation, system dynamics, business model.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1132335

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1034

References:


[1] A. De Marco, A. C. Cagliano, G. Mangano, and F. Perfetti, “Factor influencing logistics service providers efficiency’ in Urban distribution systems,” in Transportation Research Procedia, 2014, vol. 3, pp. 499–507.
[2] J. W. Forrester, Industrial dynamics. 1961.
[3] E. Taniguchi, “City logistics,” Infrastruct. Plan. Rev., vol. 18, pp. 1–16, 2001.
[4] E. Marcucci and R. Danielis, “The potential demand for a urban freight consolidation centre,” Transportation (Amst)., vol. 35, no. 2, pp. 269–284, 2008.
[5] J. H. R. van Duin, T. van Dam, B. Wiegmans, and L. órán. A. Tavasszy, “Understanding Financial Viability of Urban Consolidation Centres: Regent Street (London), Bristol/Bath & Nijmegen,” Transp. Res. Procedia, vol. 16, pp. 61–80, 2016.
[6] N. Arvidsson and M. Browne, “A review of the success and failure of tram systems to carry urban freight: the implications for a low emission intermodal solution using electric vehicles on trams,” European Transport - Trasporti Europei, no. 54. 2013.
[7] S. Pulawska and W. Starowicz, “Ecological Urban Logistics in the Historical Centers of Cities,” Procedia - Soc. Behav. Sci., vol. 151, pp. 282–294, 2014.
[8] G. Schliwa, R. Armitage, S. Aziz, J. Evans, and J. Rhoades, “Sustainable city logistics — Making cargo cycles viable for urban freight transport,” Res. Transp. Bus. Manag., vol. 15, pp. 50–57, 2015.
[9] S. Verlinde, C. Macharis, and F. Witlox, “How to Consolidate Urban Flows of Goods Without Setting up an Urban Consolidation Centre?,” Procedia - Soc. Behav. Sci., vol. 39, pp. 687–701, 2012.
[10] M. Janjevic, P. Kaminsky, and A. B. Ndiaye, “Downscaling the consolidation of goods-state of the art and transferability of micro-consolidation initiatives,” Eur. Transp. - Trasp. Eur., no. 54, 2013.
[11] L. dell’Olio, J. L. Moura, A. Ibeas, R. Cordera, and J. Holguin-Veras, “Receivers’ willingness-to-adopt novel urban goods distribution practices,” Transp. Res. Part A Policy Pract., 2016.
[12] E. Marcucci and V. Gatta, “Investigating the potential for off-hour deliveries in the city of Rome: Retailers’ perceptions and stated reactions,” Transp. Res. Part A Policy Pract., 2017.
[13] J. Muñuzuri, P. Cortés, L. Onieva, and J. Guadix, “Estimation of Daily Vehicle Flows for Urban Freight Deliveries,” J. Urban Plan. Dev., vol. 138, no. 1, pp. 43–52, 2012.
[14] A. Nuzzolo and A. Comi, “Urban freight demand forecasting: A mixed quantity/delivery/vehicle-based model,” Transp. Res. Part E Logist. Transp. Rev., vol. 65, no. 1, pp. 84–98, 2014.
[15] A. Comi, P. Delle Site, F. Filippi, and A. Nuzzolo, “Ex-post assessment of city logistics measures: the case of Rome,” in Transport management and land-use effects in presence of unusual demand, L. Mussone and U. Crisalli, Eds. Franco Angeli, Milan, Italy, 2011, pp. 235–252.
[16] E. Taniguchi and D. Tamagawa, “Evaluating City Logistics Measures Considering the Behavior of Several Stakeholders,” J. East. Asia Soc. Transp. Stud., vol. 6, pp. 3062–3076, 2005.
[17] T. Bektas, T. G. Crainic, and T. van Woensel, “From managing urban freight to smart City Logistics networks,” Montreal, Canada, CIRRELT-Research Paper no. 17, 2015.
[18] C. Thaller, U. Clausen, and R. Kampmann, “System Dynamics Based, Microscopic Freight Transport Simulation for Urban Areas,” in Commercial Transport, Springer, 2016, pp. 55–72.
[19] N. Anand, M. Yang, J. H. R. van Duin, and L. Tavasszy, “GenCLOn: An ontology for city logistics,” Expert Syst. Appl., vol. 39, no. 15, pp. 11944–11960, 2012.
[20] A. Benjelloun and T. G. Crainic, “Trends, challenges, and perspectives in city logistics,” Transp. L. use Interact. Proc. TRANSLU, vol. 8, pp. 269–284, 2008.
[21] C. Macharis, L. Milan, and S. Verlinde, “A stakeholder-based multicriteria evaluation framework for city distribution,” Res. Transp. Bus. Manag., vol. 11, pp. 75–84, 2014.
[22] N. Anand, R. van Duin, and L. Tavasszy, “Ontology-based multi-agent system for urban freight transportation,” Int. J. Urban Sci., vol. 18, no. 2, pp. 133–153, 2014.
[23] R. Ducret, “Parcel deliveries and urban logistics: Changes and challenges in the courier express and parcel sector in Europe—The French case,” Res. Transp. Bus. Manag., vol. 11, pp. 15–22, 2014.
[24] D. Hopkins and A. McCarthy, “Change trends in urban freight delivery: A qualitative inquiry,” Geoforum, vol. 74, pp. 158–170, 2016.
[25] C. Macharis, L. Milan, and S. Verlinde, “STRAIGHTSOL-Deliverable 3.2: Report on stakeholders, criteria and weights,” 2012.
[26] TRAILBLAZER, “O2.1 Case Study - Bristol, UK. Consolidation of deliveries to Bristol city centre,” 2010.
[27] A. Awasthi and S. S. Chauhan, “A hybrid approach integrating Affinity Diagram, AHP and fuzzy TOPSIS for sustainable city logistics planning,” Appl. Math. Model., vol. 36, no. 2, pp. 573–584, 2012.
[28] A. Musa, A. Gunasekaran, and Y. Yusuf, “Supply chain product visibility: Methods, systems and impacts,” Expert Syst. Appl., vol. 41, no. 1, pp. 176–194, 2014.
[29] R. G. Thompson and E. Taniguchi, “City logistics and freight transport,” in Handbook of logistics and supply-chain management, Emerald Group Publishing Limited, 2008, pp. 393–405.
[30] R. Goodman, “Whatever You Call It, Just Don’t Think of Last-Mile Logistics, Last,” Glob. Logist. Supply Chain Strateg., vol. 9, no. 12, 2005.
[31] A. Roumboutsos, S. Kapros, and T. Vanelslander, “Green city logistics: Systems of Innovation to assess the potential of E-vehicles,” Res. Transp. Bus. Manag., vol. 11, pp. 43–52, 2014.
[32] M. Xu, B. Ferrand, and M. Roberts, “The last mile of e-commerce–unattended delivery from the consumers and eTailers’ perspectives,” Int. J. Electron. Mark. Retail., vol. 2, no. 1, pp. 20–38, 2008.
[33] A. De Marco, R. Giannantonio, and G. Zenezini, “The diffusion mechanisms of dynamic ridesharing services,” Prog. Ind. Ecol., vol. 9, no. 4, 2015.
[34] R. Gutiérrez, A. Nafidi, and R. G. Sánchez, “Forecasting total natural-gas consumption in Spain by using the stochastic Gompertz innovation diffusion model,” Appl. Energy, vol. 80, no. 2, pp. 115–124, 2005.
[35] G. P. Richardson, “Feedback thought in social science and systems theory,” Waltham, MA Pegasus Commun. Inc, 1991.
[36] J. C. Fisher and R. H. Pry, “A simple substitution model of technological change,” Technol. Forecast. Soc. Change, vol. 3, pp. 75–88, 1971.
[37] F. M. Bass, “A new product growth for model consumer durables,” Manage. Sci., vol. 15, no. 5, pp. 215–227, 1969.
[38] R. Peres, E. Muller, and V. Mahajan, “Innovation diffusion and new product growth models: A critical review and research directions,” Int. J. Res. Mark., vol. 27, no. 2, pp. 91–106, 2010.
[39] M. L. Katz and C. Shapiro, “Network externalities, competition, and compatibility,” Am. Econ. Rev., vol. 75, no. 3, pp. 424–440, 1985.
[40] E. Brynjolfsson and C. F. Kemerer, “Network externalities in microcomputer software: An econometric analysis of the spreadsheet market,” Manage. Sci., vol. 42, no. 12, pp. 1627–1647, 1996.
[41] B. Bental and M. Spiegel, “Network competition, product quality, and market coverage in the presence of network externalities,” J. Ind. Econ., pp. 197–208, 1995.
[42] J.-H. Thun, A. Größler, and P. M. Milling, “The diffusion of goods considering network externalities: a system dynamics-based approach,” in 18th International Conference of the System Dynamics Society, 2000, pp. 6–10.
[43] S. Stremersch, G. J. Tellis, P. H. Franses, and J. L. G. Binken, “Indirect network effects in new product growth,” J. Mark., vol. 71, no. 3, pp. 52–74, 2007.
[44] A. C. Cagliano, A. De Marco, and C. Rafele, “Understanding the Diffusion of a Mobile Application for Supply Chain Management: A System Dynamics Approach,” Math. Comput. Sci. Eng. Ser., vol. 34, pp. 360–369, 2014.
[45] N. P. Repenning, “A simulation-based approach to understanding the dynamics of innovation implementation,” Organ. Sci., vol. 13, no. 2, pp. 109–127, 2002.
[46] F. H. Maier, “New product diffusion models in innovation management—A system dynamics perspective,” Syst. Dyn. Rev., vol. 14, no. 4, pp. 285–308, 1998.
[47] P. M. Milling, “Understanding and managing innovation processes,” Syst. Dyn. Rev., vol. 18, no. 1, p. 73, 2002.
[48] L. Timma, U. Bariss, A. Blumberga, and D. Blumberga, “Outlining innovation diffusion processes in households using system dynamics. Case study: energy efficiency lighting,” Energy Procedia, vol. 75, pp. 2859–2864, 2015.
[49] F. Shen and T. Ma, “System dynamics modeling of diffusion of alternative fuel vehicles,” in International Conference on Knowledge Science, Engineering and Management, 2013, pp. 241–251.
[50] S. P. Ryan and C. Tucker, “Heterogeneity and the dynamics of technology adoption,” Quant. Mark. Econ., vol. 10, no. 1, pp. 63–109, 2012.
[51] J.-M. Tsai and S.-W. Hung, “A novel model of technology diffusion: System dynamics perspective for cloud computing,” J. Eng. Technol. Manag., vol. 33, pp. 47–62, 2014.
[52] A. C. Cagliano, A. Carlin, G. Mangano, and G. Zenezini, “System dynamics modelling for electric and hybrid commercial vehicles adoption,” in 6th International Conference on Theoretical and Applied Mechanics (TAM ’15), 2015, pp. 171–180.
[53] URBeLOG, “URBan Electronic LOGistics - Project description,” 2016. (Online). Available: http://www.urbelog.it/urbelog-stt/Home.html. (Accessed: 09-Dec-2016).
[54] A. Osterwalder and Y. Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. 2010.
[55] H. Chesbrough, “Business model innovation: it’s not just about technology anymore,” Strateg. Leadersh., vol. 35, no. 6, pp. 12–17, 2007.
[56] R. Casadesus-Masanell and J. E. Ricart, “From strategy to business models and onto tactics,” Long Range Plann., vol. 43, no. 2–3, pp. 195–215, 2010.
[57] L. Ardila and C. Franco, “Policy analysis to boost the adoption of alternative fuel vehicles in the Colombian market,” in 31st International Conference of System Dynamics Society July, 2013, pp. 1–4.
[58] C. E. Gorbea, U. Lindemann, and O. L. de Weck, “System Dynamics Modeling of New Vehicle Architecture Adoption,” in DS 68-10: Proceedings of the 18th International Conference on Engineering Design (ICED 11), Impacting Society through Engineering Design, Vol. 10: Design Methods and Tools pt. 2, Lyngby/Copenhagen, Denmark, 15.-19.08. 2011, 2011.
[59] C. Seitz and O. Terzidis, “Market Penetration of Alternative Powertrain Concepts in Heavy Commercial Vehicles: A System Dynamics Approach,” in 32nd International Conference of the System Dynamics Society July, 2014, pp. 20–24.
[60] S. Shepherd, P. Bonsall, and G. Harrison, “Factors affecting future demand for electric vehicles: A model based study,” Transp. Policy, vol. 20, pp. 62–74, 2012.
[61] J. D. Sterman, Business Dynamics: Systems Thinking and Modeling for a Complex World. 2000.