Online retailing is booming, the environment is paying! While Max and Erika Mustermann are getting more and more goods delivered to their doorstep, packaging waste and _{CO2 emissions} are growing. We show why sustainability on the last mile is currently still a problem, what special role food transport plays in this, and what options there are for making last-mile logistics not only more environmentally friendly but also more cost-efficient in the future.

Why sustainability and the last mile don't match (yet)

In 2021, e-commerce in Germany alone generated 19 percent more revenue than in the previous year. What online retailers are happy about is causing worry lines in environmental protection: Doorstep delivery, also known as the "last mile," is not only a logistical challenge, but also comes with a massive environmental impact:

As more and more delivery trucks pour into cities from distribution centers to deliver packages and other supplies, traffic congestion ensues. For more and more people, the morning rush hour is lengthened because they get stuck honking behind a parcel truck parked in the second row with the engine running. Meanwhile, delivery services are making empty miles because many recipients can't manage to fit their day around the 9 a.m. to 5 p.m. delivery window.

As a result, there are significantly more stressed and frustrated people stuck in slow-moving traffic. But above all, there are also significantly higher_{CO2 emissions}.

Why the Last Mile Eats Up Cash

Before the e-commerce boom, the costs for retail and logistics companies were quite manageable. Companies ordered goods in large quantities, which were transported by truck, airplane or ship to the stationary retail trade and purchased there by the Mustermanns. This type of logistics was easy to plan and scale: the large order quantities resulted in low transport costs per item. In addition, there was a specific contact person and the guarantee that someone would accept the delivery at the destination.

Since more and more people are doing their shopping online and expecting fast, free delivery to their doorstep, the cost-benefit calculation no longer fits for many logistics providers. The small number of parcels that need to be delivered per household is out of proportion to the high time and cost per delivery.

In addition, companies face very different problems in last-mile delivery than in business-to-business transportation:

• Seasonal fluctuations: In e-commerce, peak sales take place around Christmas, while orders are at their lowest point in the summer. For delivery companies, this means additional costs for extra capacity at peak times.
• Unpredictable delays: Incomplete addresses, traffic jams and lack of parking spaces make accurate planning of the delivery process impossible.
• No guaranteed pick-up: Even IF the parcel carrier is there on time, the recipient often is not. Duplicate delivery attempts or detours to the pick-up station complicate planning and scaling.

For many delivery services, last mile logistics accounts for between 30 and 60 percent (!) of total transportation costs. This makes the last mile the most expensive and inefficient route in the entire supply chain.

The last mile problem in food transportation

We already know that food transportation produces more_CO2 than we can afford given the climate crisis. A study, conducted at the University of Sydney in 2022, has now concluded that transport emissions in the food sector are even 3 to 7 times higher than previously estimated. We have published the exact figures in our blog article CO2 emissions in food transport summarized. The short version on sustainability looks like this:

Food transportation accounts for about 30 percent of annual greenhouse gas emissions from the entire food sector (including production and storage). One of the main reasons for this large figure is the temperature-controlled logistics:

According to the so-called HACCP concept(Hazard Analysis and Critical Control Points), temperature-sensitive foods must be transported along the entire supply chain within the respective prescribed temperature range (e.g. -18 degrees Celsius for frozen products). To ensure the cold chain during transport, retailers and To ensure that the cold chain is maintained during transport, retail and logistics companies use vehicles and ships equipped with refrigeration technology. In this context, we also speak of active refrigeration.

Active vs. passive cooling

With active cooling, the cargo area is kept within the required temperature range by means of a permanently installed, electrically powered cooling unit. Because the unit runs on the vehicle battery, the refrigerated vehicle consumes significantly more fuel (and produces significantly more_CO2) per kilometer traveled than an uncooled vehicle. Sustainable delivery using an electric vehicle is possible, but not cost-efficient, because the refrigeration unit significantly limits the range of the traction battery.

In terms of sustainability, the actively cooled last mile cuts a particularly poor figure. Simply because it is not necessary. Since last-mile delivery usually takes place on the same day or at most the next day, passive cooling systems are perfectly adequate here. The passive cooling keeps the food within the required temperature range with the aid of insulating packaging.

Sustainability & last mile - current solutions

The issue of sustainability is also playing an increasingly important role in the minds of consumers. For example, there are numerous initiatives that advocate a greater share of locally produced food in our supermarkets in order to sustainably reduce _{CO2 emissions from} international food transport. However, these measures do not solve our problem around the sustainability of the last mile. As long as Mustermanns prefer to do their weekly shopping on the Internet rather than in bricks-and-mortar stores, locally produced food will still have to go the last mile.

So what is needed are ways to make last-mile transport more sustainable . And by the way, it's not just environmental protection that's calling for this - consumers are too! According to a survey conducted by IPC(International Post Corporation) 2021 in 40 countries on the subject of e-commerce shopping, a good 60 percent of online customers would prefer sustainable delivery.

The problem: We want sustainability, but shy away from additional effort. So online retailers and delivery services face the challenge of making the last mile more sustainable without customers losing the convenience they are used to.

Sustainable delivery to the doorstep

There are currently two different approaches to sustainable doorstep delivery, or rather two levers that delivery services can turn:

1. They try to increase the delivery rate on the first try.
2. They are trying to make the last mile as CO2-neutral as possible .

The first idea is simple but efficient: The more people are encountered on the first delivery attempt, the fewer empty miles the delivery services have to make. To help recipients plan better, many established services now offer live parcel tracking, for example. Online retailers such as Gurkerl.at let their customers choose the delivery date flexibly to ensure that someone will be there when the delivery is made.

The second approach attempts to shift the last mile from individual delivery vehicles to _CO2-neutral(er) alternatives such as public transport. Electric cargobikes have also been tested in this context for some time.

Pick-up stations and Click & Collect

IKEA has shown in the first Corona year that it is also possible without the last mile. After closing its stores in March 2020, the Swedish furniture manufacturer introduced Click & Collect and almost doubled online sales in Germany alone (Source: Statista). However, Click & Collect does not solve the problem of increased_{CO2 emissions}. The goods are merely collected by private car instead of being delivered in a van.

Pick-up stations are another solution: If the recipient is not at home, the package ends up in the flower store around the corner. Parcel stores are convenient for the delivery service because no further delivery attempt has to be made. However, they are not very popular with customers.

So far, automated parcel stations have provided the best intersection between convenience for customers, cost-benefit calculation for delivery services and sustainability on the last mile. However, it is important that the stations are within walking distance and accessible around the clock.

However, one problem that cannot be solved with the help of automated parcel stations is the last mile in food transport: Since the legally required compliance with the cold chain prohibits delivery to pick-up stations. So ways and means must be found to make temperature-controlled logistics more sustainable overall.

The sustainable last mile for food

As an expert for sustainable cooling solutions works temprify has been working for many years to make the last mile environmentally sustainable. We achieve this goal through technical innovation. Working with selected partners allows us to harness the potential of passive cooling for commercial refrigeration and freezer solutions.

We solve the problems of conventional passive cooling solutions (e.g., limited cooling time) and transform cooling logistics challenges into sustainable, scalable products. With temprify products temperature-sensitive foods can be reliably cooled for up to 96 hours and transported in insulated vehicles without refrigeration. temprify also eliminates the need for fossil fuels in last-mile delivery: Same-day or next-day deliveries can be made using electric vehicles (e.g., e-cargobikes) without loss of range . Since even Since dry ice is not ideal from an environmental we rely 100 percent on high-performance cold packs.

We develop sustainable overall systems that guarantee energy-efficient storage, a_CO2-reduced last mile and the lowest possible costs per delivery. Our common goal: a sustainably refrigerated last mile with consistently high product quality.

To the one-stop store for sustainable, cost-effective cooling solutions!