The retailer perspective on the potential for using urban consolidation centres (UCCs)

Abstract

This paper examines the role of supportive policies and value-added services which may incentivise retailers to use an urban consolidation centre (UCC). The methodology is a case study of the city of Edinburgh, Scotland, based on semi-structured interviews with 30 retailers. Results show that retailers are generally not positive towards using UCCs, and the services that they need are already being provided by their existing logistics service providers (LSPs). Nevertheless, if they were forced by restrictions and rising costs to use a UCC, they would be prepared to do so. In that case, they would want those services currently provided by LSPs to be provided by the UCC and would be prepared to pay for them. For a successful transfer to a UCC model, the retailer, LSP and UCC would need to work together to avoid loss of revenue to the LSP.