A framework for analyzing service disruptions in last-mile and first-mile reverse logistics

Abstract

The growth of e-commerce in recent years has altered the way in which retailers and customers interact with each other. The effect on freight distribution has been particularly noticeable: nowadays, customers may have their orders delivered at or close to the point of consumption and, thus, the volume of freight distributed by logistic operators has increased substantially. This has led to a growing number of carrier companies and an increasing demand for couriers, which can sometimes struggle to fulfill their assigned services. In this article, a study of the current state of last-mile and first-mile reverse logistics in Spain is presented based on the analysis of the operation of 20 carriers located in 15 different Spanish provinces. To this effect, a framework for the classification of service disruptions during last-mile delivery and first-mile collection routes is posited. Eight different potential disruption types are proposed, and methods for managers to identify and categorize service incompletions as such are provided. The results of the analysis highlight the importance of service and courier traceability to improve the handling of service disruptions and, overall, show a considerable improvement margin in the operational performance of carriers, for which several managerial implications are provided.