Is It Transdisciplinarily Better to Run a Centralised Last-Mile Logistics Operation? or Multiple Centres? Chapter in Scopus uri icon

abstract

  • This work proposes a system-wide optimisation solution to address the increased complexity of a last-mile logistics company resulting from expansions into new segments through additional distribution capacity by adding five independent depots (companies), each with a vehicle fleet and an organisational and control structure. These multiple structures performing the same functions, redundant headcount, and higher costs resulted in lower profits and a larger carbon footprint. Additionally, since each repeated structure is smaller in size, economies of scale were not achieved at an optimal level. The simultaneous optimisation of vehicle routing and strategic restructuring of company operations has scant literature coverage. Based on a transdisciplinary approach to improve the complete business system, two optimisations were performed, applying advanced optimisation models for single- and multiple-depot routing and conducting a top-level strategic redesign of the company's structure to perform a quantitative and qualitative analysis comparing the pros and cons of merging the six depots and their organisational structures versus keeping them separate. The quantitative model and solution indicate that the single-depot solution decreases the total travelled time by 25.1% but has a 33.2% reduction in total costs and an 28.9% reduction in the overall carbon footprint, improving the profitability, manageability and sustainability of the company, thus promoting a better world. © 2025 The Authors.

publication date

  • October 14, 2025