D4 Service: The Smart Distribution System

Summary

The Sustainable Urban logistics Plan (SULP) of Las Palmas de Gran Canaria (measure LPA 5.2 of the CIVITAS DESTINATIONS project) identified the strengths and weaknesses of urban freight in the city. Amongst the weaknesses, the SULP spotted the following: poor degree of digitisation of the local freight companies and a lack of information about last mile deliveries.

The D4Service is a smart distribution system offers the possibility to make urban delivery processes more efficient. It is a mobile App that organizes delivery routes automatically and allows real time communication with customers.

The introduction of this system in Las Palmas de Gran Canaria is in line with the overall urban freight strategy defined in the SULP that is being developed in a parallel.

Implementing sustainable mobility

Inelcan – a local hi-tech company based in Las Palmas de Gran Canaria – developed and tested the D4Service since the beginning of the CIVITAS DESTINATIONS project.

After a pilot that lasted between 2017 and 2018, the D4Service has been improved and modified according to the stakeholders’ and the Municipality’s requirements. Nowadays (summer 2019) the service is fully operational.

The main characteristics of the D4Service are the following:

1. The drivers enter the app with their login information and see the agenda programed by the company.
2. Once they arrive at the destination, the D4Service will automatically inform the company about the delivery or the end of the service.
3. It shows all the deliveries to be carried out and indicates the start of the work day. In that moment, clients receive an SMS with the estimated delivery time.
4. D4Service also allows the company to inform the receiver about the possible delay or incidents.

Amongst others, the main advantage of the D4Service for local freight companies is that allows them to organize the distribution process beforehand and react in real time to changes that might occur during the day.

Moreover, it does not need new infrastructure and optimizes all the existing resources, making managing and delivering costs cheaper. The business model is to provide pay-per-use service without spending on infrastructure, this way for logistics companies do not have an economic penalty acquiring this option and produce economic returns from first day without repayment periods.

Outcomes

D4 Service offers the possibility to make the delivery process more efficient for the distribution company and “liberates” the receiving party since they will be informed beforehand about the real delivery time.

The expected results from using this app are, in the first place, a higher level of customer’s satisfaction since they will economise their time. In the second place, the App should help logistic companies optimise the routes so the following results are expected:

• Reduction of distance travelled
• Reduction of fuel consumed
• Reduction of polluting emissions
• Reduction of freight movements
• Reduction of operating costs

Nowadays over 50 companies and 1,500 commercial vehicles are using the D4Service.

Implementation Status

The measure is in operation and data for evaluation is being collected.

More Info

•    Inelcan website - here.