Evaluating Different Last Mile Logistics Solutions : A case study of SF Express

Abstract: Compared to the highly developed logistics industry in USA, the Chinese logistics industry is still underdeveloped because of poor infrastructure and ineffective management capability. In terms of these realities, the most important bottleneck of the Chinese logistics industry is the last mile delivery problem, which holds the highest cost in the whole logistics process. To find ways to solve the problems with last mile delivery has become significant and urgent for Chinese logistics service providers. The purpose of the study is to deepen and enrich the knowledge on last mile logistics in China. This is carried out with the help of the case companies SF Express and Property Management Company together with an investigation of last mile delivery alternatives in China. Related to the research question, a case study was carried out focusing on one business process. The data collection methods used include: interview, telephone or email contact, and survey. Intelligent locker and the pick-up delivery solution could solve last mile logistics problems by different ways, especially with specific limitations in Chinese market. These delivery alternatives are highly possible to be adopted and generalized by different logistics service providers in China if not concerned about the cost or density of orders. The current business mode of supermarket in China cannot fulfill the demand from an overwhelming number of customers. Costs for both pick-up stations are acceptable, and the cost is a positive factor for pick-up station mode. The higher density of orders, the higher possibility of different time-window may require, and high competitive advantage of intelligent locker can be achieved. The high density of orders for intelligent locker is a positive factor. The cost for intelligent locker is a very negative factor, which seriously limits the popularization of this delivery alternative. Keywords: Last mile logistics, Intelligent locker, Pick-up station, Delivery alternatives