Off-Peak Deliveries from a Business Model Perspective
Abstract: With an increasing urban population around the world, the need for urban freight distribution is constantly growing. Many cities face problems with traffic congestion, especially during eak hours in the morning and afternoon. At the same time, the roads are often nearly empty during nighttime. In some cities, like Stockholm, heavy haulage is not permitted to enter the city during the night. This means that carriers are forced to perform these deliveries during the day, which leads to inefficient distribution. To investigate the possibilities to use nighttime hours for deliveries, which could lead to a more efficient distribution system and increased sustainability of the city, a pilot project has been initiated by the City of Stockholm to test off-peak deliveries. Other similar trial projects have encountered difficulties with getting businesses to participate, and the incentives to shift to offpeak deliveries have been unclear. Therefore, this thesis aims to investigate what incentives there are for actors within a supply chain to make this shift and the key factors that enable the supply chain to benefit. The thesis is performed as a case study on the pilot project in Stockholm, and uses a business model perspective to analyze how value is created and captured throughout the supply chain. The results show that there is potential for supply chains to increase its total value through offpeak deliveries as a result of increased efficiency, improved delivery reliability and increased utilization of trucks. Pricing models and relative negotiation power between actors have a large effect on how the value is distributed. The main contributors to creating increased value are sufficient delivery volume, compatible processes, and full utilization of trucks. The possibility to use off-peak deliveries for marketing is relatively unexploited and could potentially create more value.
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