1

Managing Deliveries
in London
MSc Logistics and Supply Chain Management
University of Westminster
25 October 2023

TfL RESTRICTED
2

Delivery and servicing activity

TfL RESTRICTED
3

Delivery and servicing activity

TfL RESTRICTED
 4 Hair Gel: Warehouse
in Essex
Delivery and servicing activity
Tube window:
Maintenance
depot in Stratford Graffiti removal
service: Queen’s
Contact Lenses: Park
Pharmaceutical
company in Brentford

Fruit: Wholesale Suit:

market, Manufacturer
Mug: Print
Southwark in Hong Kong
company in
New Malden
Waste: Waste
Coffee: management Newspaper:
Warehouse in company in Essex Distributor in
Milton Keynes Canning Town
Tube Seat:
Moquette
woven in
Lithuania
Bag: Retail
outlet in
Westminster

TfL RESTRICTED
5

London and freight

6

An introduction to London

Population: 8.8 million

Sadiq Khan (2021 mid-year estimate)

Mayor of London

 33 Boroughs (including the City of London)

 Boroughs have wide ranging powers and
responsibilities
 Planning
 Waste
 Traffic and enforcement
 Noise
 25 London Assembly members

TfL RESTRICTED
7

Mayor’s Transport Strategy

Published in 2018, updated in 2022

Sets out the Mayor’s proposals to reshape

transport in London over the next two decades

Centred around three key themes:

Healthy Streets A good public

New homes
and healthy transport
and jobs
people experience

TfL RESTRICTED
8

An introduction to Transport for London (TfL)

Transport for London

• London’s integrated transport authority
• TfL is responsible for meeting Mayor’s strategy and commitments on
transport in London
• TfL runs the day-to-day operation of the Capital's public transport network,
working across a number of modes (but we’re not Network Rail!)
• TfL also manage London's main roads (5% of total) Andy Lord
TfL Commissioner

TfL RESTRICTED
9

An introduction to Travel Demand Management (TDM)

One of a handful of teams in the world dedicated to this

growing specialism​.

Formed London 2012 Olympic Games after TDM techniques

saw 75% of people change their travel behaviours and
allowed our networks cope with additional visitors.

Our work allows customers and road users to make better

travel choices by providing them with targeted, specific
information that helps them avoid disruption and congestion.

We also work to support sustainable deliveries and servicing,

reducing congestion on the road network.

TfL RESTRICTED
10

Why do we care about freight?

LGV movements across strategic cordons, 2000 to 2022

• It’s essential!
• Number of LGVs are increasing and
forecast to continue
• Online deliveries and last-mile
deliveries are increasing –
particularly in light of the pandemic
• Increasingly stringent
decarbonisation targets
• Increasing uncertainty (e.g.
economy)

TfL RESTRICTED
11
Why do we care about congestion?
Delivery and servicing activity
is crucial to the city’s growth
and success.
Unfortunately, it can also cause
significant road congestion and
has negative impacts on
London’s air quality.
£9.5bn
Direct and indirect costs to
London of road congestion in
2017
33%
of NOx emissions from road
transport in London came from
delivery and serving trips
(2013).
TfL RESTRICTED
1/3 90%
rd
of all traffic entering central of goods travelled by road in
London in the morning peak London – 131 million tonnes
was goods vehicles (2018)* (2017)
16%
of vehicle kilometres in London
65%
Increase in emissions by vans
were by light goods vehicles since 1990**
(LGVs or vans) in 2017.
12

Who’s in charge?

Picture the scene...

? Who has control here?

TfL RESTRICTED
13

Who’s in charge?

Receiving Business:

“My supplier is in
control of how,
when and where we
Receiving Business:
receive deliveries”
“Customer is king.
We deliver when
consumers want the
goods or services”

Source: Transport for London and Future Thinking, May

2018

TfL RESTRICTED
14

What are businesses saying and doing?

Calling for political action Implementing their own solutions

https://www.businessldn.co.uk/sites/default/files/do
cuments/2021-08/GoodsOfTheCity.pdf https://fitzroviapartnership.com/4-reducing-costs/waste-a
nd-recycling
/

TfL RESTRICTED
15

Freight and servicing action plan

TfL’s Freight and Servicing Action Plan was published in 2018.

Since then, our actions have worked towards the Mayoral target of
reducing deliveries.

Cleaner Safer Efficient

TDM is an action owner under the

‘Efficient’ part of the plan.

TfL RESTRICTED
16

How do we work?

The TDM principles...

Reduce journeys through conscious consumerism, using consolidation centres,

REDUCE
preferred supplier schemes, ordering in bulk, deliveries arriving on one day etc.

RE-MODE Deliveries and collections from diesel vehicles to cargo bike, foot or electric vehicles

RE-TIME To quieter times of day or night

RE-
Plan delivery routes away from the busiest / disrupted places on the road network
ROUTE

TfL RESTRICTED
17

What we’ve done so far...

18

TDM timeline

Healthy
London Retiming Consolidation
Streets Fund
Olympic Programme Demonstrators
2015-2017 for Business
Games 2017-2019
2017-2020
2012

Business FreightLab
Engagement 2020-2022
2018-2019

TfL RESTRICTED
19
Our three types of project
1 2
Demonstrating
Testing and showing the
congestion-reduction
benefits of initiatives
3
Enabling Raising awareness
Persuading businesses to
Funding proven
put initiatives in place
concepts or providing
and driving voluntary
subject matter expertise
behaviour change
TfL RESTRICTED
20
DEMONSTRATING
Consolidation demonstrators

Our ‘consolidation demonstrator’ projects tested

Projects delivered included:
efficient delivery concepts, in partnership with
Technological
external stakeholders.
solutions to
Waste
Pedestrian capacity sharing
consolidation
Identify problems or porterage as
Find partners
opportunities
a last mile
solution Reducing Delivery
personal consolidation
deliveries centres (urban
Measure Trial Fund
and micro)
Transport impacts of
facilities/servicing
contracts Collaborative procurement –
Conclude Communicate consolidation preferred supplier schemes
e.g. for office supplies

https://content.tfl.gov.uk/steer-assessment-of-demos-report-oct-2019.pdf

TfL RESTRICTED
21
DEMONSTRATING
Consolidation demonstrators: results

Using porters for delivery to the Preferred waste supplier scheme Preferred supplier scheme and
final destination on foot increased loading bay operating
hours

50%
reduction in kerbside
parking time 90% reduction in
vehicle milage 12% reduction in
vehicle trips

29%
reduction in driving
distance 16% reduction in trips
to food outlets

TfL RESTRICTED
22
DEMONSTRATING
Consolidation demonstrators: Bond Street Waste

What did they do?

Bond Street
Bond Street is a luxury shopping destination in
London’s prestigious West End. It suffers from traffic
congestion and environmental pollutants
• Collaboration between 321 businesses and their Business
Improvement District to implement a waste supplier scheme to
consolidate vehicle trips
What were the benefits?

67%
reduction in waste left on the
street during inappropriate hours

94%
reduction in waste vehicle
movements, from 144 to 9 per day

reduction in carbon dioxide equivalent

76% (CO2e) and nitrogen oxides (NOx)

74% reduction in particulate matter (PM10)

TfL RESTRICTED
23
DEMONSTRATING
Consolidation demonstrators: key findings

Three conditions for The trials suggested that the following freight consolidation activities
success were SUCCESS should be prioritised:
identified:
• Reducing personal deliveries • Pedestrian porterage
• Waste consolidation • Preferred supplier schemes

Advocacy and
leadership

Potential quick win,

with demonstrable These need scale to be
Aligning private Leaning on existing success
interests and social structures and commercially viable
benefits organisations

https://content.tfl.gov.uk/steer-assessment-of-demos-report-oct-2019.pdf

TfL RESTRICTED
24
DEMONSTRATING
FreightLab Innovation Challenge

FreightLab is part of the Mayor's Civic

Innovation Challenge, which brings
together London's public and private
sector with tech companies to develop
solutions to the most pressing problems
facing the city

5 projects were delivered between

2020 and 2022 to test innovations in
the areas of safety and efficiency

TfL RESTRICTED
25
DEMONSTRATING
FreightLab Innovation Challenge: Start-ups

Trials most relevant to the congestion challenges are:

Fernhay trialling their electric- AppyWay testing their kerbside

assisted Bikes and Walkers availability prediction software in
with UPS, to understand their partnership with Royal Mail and
applicability to last mile UPS. This technology looks to
deliveries made by a major minimise additional journey
delivery company distance and time searching for
spaces in loading bays by offering
predictions of availability in
advance

TfL RESTRICTED
26
ENABLING
Healthy Streets Fund for Business

Ran from 2017-2020

• A match-funding opportunity for business

groups and Business Improvement
Districts for projects that looked to reduce
deliveries
• Projects aimed to have financial self-
sufficiency beyond the lifecycle of
funding
• Projects supported by the Fund include
waste consolidation, introducing cargo
bike deliveries and creating delivery hubs
for easier grouping of deliveries

TfL RESTRICTED
27
What we delivered
By installing a waste compactor,
Heart of London Business Alliance
has enabled businesses around
Leicester Square to reduce waste
vehicle visits to the area by 47% –
equating to 988 fewer movements
per year
Archway Town Centre Group
set-up a cargo bike delivery
and collection service. By using
the scheme a local charity, The
Toy Project, were able to give up
their diesel van
TfL RESTRICTED
ENABLING
Businesses in Better Bankside area
of Southwark reduced their
nitrogen oxide emissions by 97 per
cent using an electric vehicle to
collect waste and deliver to a
nearby waste compactor
28
RAISING
AWARENESS
Toolkits and business workshops

We used learnings from business

engagement and scheme
implementation to create toolkits
These allow others to replicate
successes in their own areas – for
retiming, waste consolidation,
cargo bike usage and reducing
online shopping deliveries to the
office

https://tfl.gov.uk/info-for/deliveries-in-london/delivering-efficiently/deliveries-
toolkits?intcmp=53241

TfL RESTRICTED
29
RAISING
AWARENESS
Success stories

Lots of different types of firms have been involved...

Law firm Hotel Restaurant

Introduced a shared-supplier scheme Consolidated their deliveries Introduced smart solutions

• Reduced waste collections by • Food and beverage deliveries • Filtered water system replaced
40% reduced by 75% deliveries of 50,000 bottles of
• Consumable deliveries halved • Linen deliveries reduced by water
15%

TfL RESTRICTED
30

Business Engagement
31

Business engagement workshop

We have developed an interactive workshop to help businesses explore and understand

where opportunities exist to reduce deliveries.

TfL RESTRICTED
32

Business engagement workshop

Aim
The aim of the exercise is to reduce the number of deliveries you receive at your business, you can
achieve this however you wish. You also want to consider how you can move your deliveries out of the
peaks. You must be prepared to explain why you think deliveries might be able to be reduced or moved.
Requirements
• 2-4 teams with a maximum of 5 members each
• Access to a single computer for each team
Scenario
You oversee deliveries for one of 4 small businesses near each other. You are considering how you can
reduce the number of deliveries you receive and/or retime them away from the peaks to reduce
congestion, become more environmentally sustainable and improve business operations. It is important to
note the scenario is hypothetical; the scenario is based on a typical day and it is assumed it would
replicate on each day.

TfL RESTRICTED
33

Business engagement workshop – Part 1

The first part of the game takes place in a team 4-5 players. This is an example of a team's board which
represents a business's delivery and servicing activities and some supporting information. The object here
is to reduce deliveries.

TfL RESTRICTED
34

Business engagement workshop – Part 2

The second part of the game brings all teams together onto one big board. This board represents the businesses
local area. All teams place their deliveries on the board and collaborate to reduce deliveries.

TfL RESTRICTED
35

But what next?

36

Recent delivery and servicing trends

Weekly entries (camera captures) to

the Congestion Charge zone by mode,
Jan-Nov 2021 vs Jan-Feb 2020

% of 2020 demand

Source: TfL Surface

Transport.

TfL RESTRICTED
37

Online shopping accelerated during the pandemic

Online shopping
accelerated during the
pandemic
On average 22% of all
European +39% UK year on year growth in 27% of UK shoppers are likely to
With lifestyles changing, e-commerce stood at online shopping purchases from
parcel orders in the UK
shift permanently to shopping more
are returned (higher for
it is timely to look at €757 billion in 20201 2019 to 20212
clothing) 3
online4

resetting e-commerce
behaviours to enable the
road network to cope,
whilst supporting
economic growth. The number of UK customers who
3.5% $30.8 billion predicted shift towards expect same-day delivery has
of all UK deliveries failed in the 12 online shopping in the UK by 2025 increased seven-fold, and those
1
Lone, S., Harboul, N. & Weltevreden, J., 2021
months to August 20205 6
expecting next-day has almost
2
IMRG and BigCommerce, 2022 tripled between 2020 and 20217
3
IMRG, 2020
4
Metapack and Retail Economics, 2022
5
IMRG, 2021
6
Metapack and Retail Economics, 2022
7
IMRG and Trustpilot, 2021

TfL RESTRICTED
38

Consumer consciousness is growing

Deliveries are making the news like

never before.
Ongoing goods and global driver shortages,
the war on packaging and changes in the
cost of fuel mean that shoppers are being
encouraged to think about their habits

Sustainable behaviours and shopping

are linked in people’s minds
44% of e-commerce consumers globally say
they have changed their online shopping
behaviours due to sustainability concerns1

TfL RESTRICTED
39

But it’s not easy...

I have a 3-5 day delivery

I’m not sure what the greenest The greener delivery
window, but won’t be in on all
delivery option is... option costs more...
of the days...

The Click & Collect Sizing differs between

locker is far away... companies, and
returns are free...

TfL RESTRICTED
40

E-commerce – a collaborative future?

Individuals and businesses

• Choosing the sustainable delivery options e.g. opt for slower
deliveries, ordering more items in one go, ordering to click-
and-collect lockers, not missing deliveries.

Retail and delivery industries put in place sustainable delivery options Consumers
• Retailers default to slower deliveries, offer green options, and reduce returns
• Couriers remind of delivery times, offer flexibility, and 24hr microhubs
• Intermediaries roll out collect services and carrier-agnostic lockers Retailers, carriers and
intermediaries
Supporting bodies (e.g. TfL and local authorities) create the
environment for sustainable delivery options
• Offering land for logistics
• Supporting deliveries at quieter times Transport for London and the London
boroughs

TfL RESTRICTED
41

Thank you – any questions?

JacquelineShort@tfl.gov.uk
JordanWaite@tfl.gov.uk
MichaelMcGuill@tfl.gov.uk