Freight logistics plan for retail

Summary

Logistics for the largest department store in Graz were improved, and the deployment of electric vehicles for goods distribution in the city’s narrow streets was successfully tested.

Implementing sustainable mobility

Reducing the high number of partially loaded trucks entering the city centre was identified as one way of tackling the problem of noise, dust, emissions and congestion. This measure was also prompted by the restoration work being undertaken on a large department store, which necessitated an alternative solution for goods delivery.

The specific objectives were to:

• improve the exploitation of freight capacities;
• reduce the number of vehicles entering the city centre;
• reduce noise from delivery vehicles in sensitive urban areas; and
• reduce fuel and energy consumption and emissions of CO2, nitrogen oxides and particulates.

Progress

Preparation work involved the collection of data regarding freight amounts and supply patterns. These data were then used to draw up a business and marketing plan for cost savings and quality improvements. Logistics software, such as tracking and communication devices, were also developed.

Two logistics systems were developed:

• The first involved the reorganisation of the entire distribution system for the largest department store in Graz. Goods were consolidated in a distribution centre outside Graz and efficiently transported in containers to the store. The containers were also used to transport waste material out of Graz.
• The second project comprised the deployment of electric vehicles for distribution purposes in the narrow streets of the city centre, especially during major construction work on the city’s tramline.

Outcomes

The project led to a significant reduction in trips and emissions. Success factors in implementing green city logistics included:

• Appropriate location for the warehouse on the outskirts of the city. Existing suppliers then deliver to this warehouse rather than individually entering the city centre. 
• Good communication among all partners (forwarding company, railway company, logistics consultant).
• Incentives for participants such as special delivery times.
• Use of environmentally friendly transportation vehicles or intermodal transport (including trams) to reduce the negative impacts of city-centre deliveries.