Abstract

In today’s modern and urbanized world, there is rapid growth in terms of e-commerce,
retailing, rising urbanization, change of consumer behavior etc., which increased the
attention of logistic and last mile delivery area. Understanding the constant changes that
are happening like a consequence of the development of new technological
advancements in almost every sphere of our lives today, this paper will provide
elaboration of the importance of last mile delivery and its efficiency in E-Commerce
industry. Consequently, Greece has the potential to embrace proper solutions for
increasing last mile delivery efficiency through implementation of latest advancements
and technologies. Therefore, this research paper will examine past literature findings
regarding last mile logistics and its implications in e-commerce industry. It will be
analyzed challenges, benefits and solutions regarding raise in last mile delivery
efficiency. It will be furtherly discussed the impact of new technologies and its
implementation. Also, it will be presented the research methods that are going to be
used.
Table of Contents

Abstract................................................................................................................. 1

Introduction........................................................................................................... 3

Literature Review.................................................................................................. 4

Last Mile Delivery............................................................................................... 4

Last Mile Delivery Efficiency...............................................................................5

Last-mile delivery efficiency in B2C E-commerce...............................................7

E-Commerce and Last Mile Delivery in Greece...................................................9

Research Aims and Objectives.........................................................................10

Research Methodology........................................................................................ 10

Research Philosophy......................................................................................... 10

Research Classification and Approach..............................................................11

Research Strategy............................................................................................ 11

Data Sampling.................................................................................................. 12

Data Processing................................................................................................ 12

Data Analysis.................................................................................................... 13

Research Ethics................................................................................................ 13

Gantt Chart.......................................................................................................... 14

References........................................................................................................... 15
Introduction

The fast-developing world has shown rapid growth in Internet of Things and more
specifically online shopping has become fruitful. Since 2013 online shopping sales have
experienced raised by more than 50%. Afterwards in 2018 e-commerce have increased
its sales by 28% which roughly estimates 1.35 billion[ CITATION Cel20 \l 1033 ]. The visible
constant growth in this industry is due to the online shopping convenience of customers.
The service providers facilitate customers daily life by delivering products to its
customers on their desired location with fast speed, as well as offering payment choices.
All of the above-mentioned conveniences are part of the logistics, which support E-
Commerce and it is entitled as – Last Mile Delivery [ CITATION Han19 \l 1033 ].

Last Mile Delivery is the last part of the supply chain process and it represents the final
delivery service in e-commerce (B2C) businesses. This closing step of the process is
fulfilled when the order is delivered to the client’s final destination. As well as last mile
delivery goal is to make the order the fastest way possible. Moreover, last mile delivery
has become the most expensive part in the supply chain costs, which can vary from 13%
to 75%. However, companies have to implement proper management of last mile
logistics in order to achieve improvement in their delivery processes and guarantee
efficient operations[ CITATION Pat18 \l 1033 ].

Nevertheless, in the past decade, e-commerce has experienced significant growth. E-

commerce have become massive trend and its sales consignments are facing triple raise
globally on annual level [ CITATION OGr19 \l 1033 ]. There are multiple factors that
influence the growth in this industry. One of the main factors that play the biggest role in
the success story is the Last Mile Delivery. The emerge of new digital businesses and the
new technological advancements applied in delivery, permits for instant and time
effective delivery. Accordingly, last mile delivery applied solutions are driving to raise the
e-commerce industry[ CITATION Pat18 \l 1033 ].

However, many different technologies and innovations can be implemented as solutions

to increase the efficiency in last mile delivery in the e-commerce sector. This research
topic is relatively incoherent and for the past few years the number of studies has grown
in order to contribute to the last mile logistics area. Last mile logistics is an evolving
research area with continuous rising interest from scholars. However, this research paper
merits a closer look since last mile delivery has become a key consumer expectation for
online shopping. It will be investigated the last mile delivery impact on e-commerce in
Greece and the further prospects in the same domain. Furthermore, it will be reviewed
literature regarding solutions to increase the efficiency of last mile delivery.
Literature Review

In this chapter will be reviewed literature related to the field of logistics, most specifically
last mile delivery. It will be examined literature reviews of past studies, scientific journals
and books related to the dissertation research topic. Therefore, this chapter will cover in
detail summary of past findings related to last mile delivery efficiency and which
afterwards the main focus will obtain in e-commerce (B2C) sector. Moreover, it will be
examined findings about existing literature regarding the supply chain last stage and
innovative solutions to increase the efficiency of last mile in Greece. Also, it will be
investigated the opportunities, benefits and efficiency of last mile delivery in the same
domain.

Last Mile Delivery

Last mile delivery can be defined as the transportation of goods from the distribution
center to the final delivery destination [ CITATION Men01 \l 1033 ]. However, Mentzer, et al.
(2001), define last mile logistics as the last step of the delivery process from the
transportation facility to the end-user.

Dawei, (2011) stated that in today’s freight movement world, “last mile logistics” is the
critical final phase of supply-chain management where goods move from a supplier to a
customer. Even though every step of the supply chain is uniquely important, special
attention is drawn on the last mile delivery where the goods are delivered to the
customers. Accordingly, the focus is placed on the last mile logistics because this is
crucial differentiator aspect for retailers.

Last mile logistics can be defined in many ways; however, it can be concluded that it
represents the last stage of the supply chain. The last mile is usually described as one of
the most expensive, inadequate and polluting fragments of the supply chain [ CITATION

Ols19 \l 1033 ]. Therefore, some research studies suggested that last mile cost counts
about 13-75% of the total expenses of the supply chain, which relies on different
factors[ CITATION Gev09 \l 1033 ].

One research study suggests that last mile logistics is dependent on couple of factors,
such as drivers and barriers, recent advancements, logistics collaboration, service quality
etc[ CITATION Cle19 \l 1033 ]. Nevertheless, Allen, et al., (2017), suggest that last mile
delivery can be viewed as the front-end, where the delivery meets the receiver. Last mile
delivery is dependent on the latest technological advancements, innovations and
technologies which focus on goods reception solutions. The literature suggests some of
the solutions are: self-service technologies (i.e. parcel lockers), location lockers, diffusion
of innovation etc. of the solutions will be detailly elaborated in the next section.
Another study suggest that last mile logistics is consistent of three main components:
last mile fulfillment, last mile transport and last mile delivery. Firstly, the last mile
fulfillment represents the process of making the order ready for delivery. Last mile
fulfillment and last mile transport are highly interconnected. Therefore, last mile
transport signifies the process of the movement/transportation of the orders which is
done through different means. This stage represents the crossing point between last mile
fulfillment and last mile delivery. The last mile transportation can be conducted with
different vehicles, such as: heavy goods vehicles, electronic vehicles, bicycles, tricycles,
drones etc. Lastly, last mile delivery is the process of delivering the goods to the final
destination[ CITATION Leu18 \l 1033 ].

Last Mile Delivery Efficiency

As already mentioned, last mile delivery is the final stage of the supply chain, which
represents the final step between businesses and customers. At the stage of last mile
delivery main objective is to accomplish transportation the fastest way possible. Last
mile delivery has been driven by endlessly evolving market and demand for client
experience through all industries including e-commerce. Last mile delivery has been a
major aspect in all industries worldwide. Consumers simply seek for alternatives if their
logistic partners to turn up short in providing top-notch supply chain services. The main
elements that consumers see in the last mile delivery are the following: speed,
timeliness, accuracy and precision of product delivery. This can be crucial in building
whole loyalty that would help organizations to achieve an enormous part in the market
share[ CITATION Ols19 \l 1033 ].

Nevertheless, Kafle, et al., (2017), suggest that in order to achieve last mile delivery
efficiency there are couple of characteristics that need to be taken into account. The
business needs to choose a suitable delivery mode appropriate to save money and to
achieve fast delivery. Anyways, the selection of the delivery mode depends on many
factors, such as: time horizon, local density, number of orders etc. Investigated literature
suggested multiple solutions for achieving last mile delivery efficiency. Following it will
be numbered and elaborated all the solutions that increase the efficiency of last mode
delivery.

1. Reception boxes
This method solves unattended delivery issues through reception boxes. However, this
method can be done differently[ CITATION Pun01 \l 1033 ].

There are own reception boxes usually installed at customer’s homes, which are
delivered at any time.
Shared reception boxes are parcels located on public places. It allows multiple individuals
to use the same reception box. Shared reception boxes are the most effective, its time
efficient as it can be delivered many orders at the same time [ CITATION Pun01 \l 1033 ].

Parcel Lockers are usually owned by logistics providers and are located on public spaces.
Customers can use one-time passwords or barcodes in order to access their
parcel[ CITATION Pun01 \l 1033 ].

2. Attended Home Delivery

This method of delivery is one of the most common ways of delivery and still remains
one of the most used ones. Attended home delivery provides face to face delivery, which
entails optimization technique. Usually the optimization process is consistent of time
window planning with the customers in order to avoid delivery failure. Also, this method
of delivery has high costs as a reason of its optimization technique [ CITATION Pun01 \l 1033

].

3. Post office
Represents traditional method of delivery, where customers pick up their orders directly
from the post office.

Nevertheless, a side of the conventional methods for last mile delivery, in todays
digitalized and modern world, there are many new concepts that can be adopted.
Logistic providers can apply new technologies in their operations in order to achieve
more efficient delivery with lower costs. With application of latest technologies and
advancements, shopping and delivery became easier. Bellow will be listed technologies
that can be applied in last mile delivery for achieving maximum efficiency.

1. Drones

Knowns as Unmanned Aerial Vehicles which can be used as delivery service of parcels.
Drones are capable of travel autonomously and rely on GPS in order to reach the wanted
destination. This has become a very attractive alternative of transport delivery that can
be used in urban areas[ CITATION HaQ18 \l 1033 ].

2. Mobile Applications

Mobile applications can be very beneficial in terms of tracking shipment and delivery.
This way the parcels can be followed with accuracy through GPS. This technology
provides accurate information regarding the parcel tracking. This enables both parties:
customers and logistic providers to follow the orders with high precision.
3. Smart Reception Box

The smart reception boxes are smart IoT mailbox that securely receive parcels and works
in a way that the customers get notifications on their application when the delivery is
done, without the need the customer to be present at home. The smart reception boxes
can be accessed via wireless connection and through personalized smart tag at any time [

CITATION Han16 \l 1033 ].

4. Crowdsourcing logistics

Contains in subcontracting last mile delivery activities, working with network of common
individuals or groups, that distributes a parcel from point of origin to last point of
delivery. Usually it is considered as social network of customers, because it involves
friends or acquaintances that contribute in saving costs and lowering travel
emissions[ CITATION Pun01 \l 1033 ].

5. Robots

Self-driven road vehicles that operate in a way that move in a controlled path to reach
the customers, afterwards the customer unload the vehicle with their order. With
implementation of robot automated vehicles, workers are not required as well as fuel,
since the robotic vehicles operate on batteries[ CITATION Pra18 \l 1033 ].

Last-mile delivery efficiency in B2C E-commerce

In today’s modern world, people are living in times where lightning speed delivery has
become a new norm. With implementation of the latest technological innovations,
people’s expectations have raised all time high regarding many services. E-Commerce
became one of the fastest growing industries with rising sales channels worldwide. The
global e-commerce industry is having continuous growth of 20% annually and it is
predicted to have the same growth percentage in the following years[ CITATION Cel20 \l

1033 ].

Last mile delivery efficiency in B2C e-commerce has specifically drawn huge attention
within academicians which influenced the raise in new studies in the past few years. Last
mile delivery has become a vital part in the E-Commerce industry due to the massive
online orders. In 2018 the e-commerce industry has experienced 1.35 billion dollars on
sales. This indicates that retailers must establish strong transportation networks
predicting traffic fluctuations as a result in the increased online sales. Businesses have
used traditional methods of transportation such as FedEx, UPS etc., but with new
innovations and technologies, retailers are seeking for faster, more efficient and low-cost
alternatives[ CITATION Cel20 \l 1033 ].

For instance, E-Commerce industry has experienced growth in the past few years with
last mile delivery of 33% in the B2B businesses and 67% in the B2C businesses.
Customers are facing supreme and fast-paced services, meanwhile logistic and supply
chain businesses go through increased demand of last mile deliveries which have to done
practical and profitable. Nowadays businesses main challenge is to manage massive
volumes of last mile deliveries. The growth in online shopping is highly associated with
last mile delivery movement. One study implies that due to increased demand and
massive volumes of last mile delivery, 25% of companies have stated that delivery
efficiency is their greatest challenge in last mile delivery. Online retailers are striving to
offer customers efficient and effective last mile delivery while gaining market share and
offering quality services[ CITATION Lim15 \l 1033 ].

Nevertheless, the investigated literature suggests that there are two mains categories
that suggest how to improve last mile delivery efficiency. The authors e.g. Greetha, et
al., (2013) from the first category provide suggestions on how to optimize the traditional
last mile delivery. Many studies propose diverse types of VRP (Vehicle Routing Problem)
which provides different solutions for delivering parcels. Therefore, Verlinde et al., (2014)
states that these solutions include different distributions networks and transport
alternatives for increasing the last mile delivery efficiency in B2C deliveries.

On the other hand, the second category main emphasis is on innovative solutions for
increasing the efficiency of last mile delivery. Therefore, the authors state that innovative
solutions such as – drone delivery, presents a whole new concept which initiate whole
new movement[ CITATION Iwa16 \l 1033 ].

This new concept will instruct new businesses to take over and carry away traditional
boundaries. The literature investigates and suggest new innovative solutions, such as:
parcel lockers, crowdsourcing logistics, reception boxes, pick up points etc. Since this is
generally new field of study, there is still a huge space for improvement and further
investigation regarding last mile delivery efficiency in B2C e-commerce
businesses[ CITATION HaQ18 \l 1033 ].

E-Commerce and Last Mile Delivery in Greece

As on global level, e-commerce popularity took over the Greek retail market and
attractiveness among consumers. It was noted that in 2019 the Greek e-commerce is
worth approximately 4 billion euros, which is 2% of Greek GDP.
Greek population counts of 11 million citizens, which 68% of them are active users of the
internet. It was noted that out of 68% (7 million internet users), 3 million were online
purchasers. Also, the consumers were spending merely 1.300 euros annually. The Greek
consumers usage of international and domestic e-shops is counted merely equally. From
more than 6.500 online stores, the most used include: Amazon, eBay, followed with
Plasio, Public, Skroutz etc. Due to the e-commerce popularity more local stores are being
opened that offer wider diversity of products. However, it was investigated that 54% of
total buyers prefer to shop online from UK stores, followed by China and the United
States.

Regarding the local online shops, currently Greece have more than 7000 businesses that
expanded their businesses to have online outlets.

The e-commerce and online retail market are facing constant growth no matter the
recent crisis in Greece. Since the most recent events, the crises have made consumers
price sensitive. Until dated today, Greek consumers are still sensitive to prices.
Therefore, online shopping offers better and cheaper prices, which is highly preferable
for consumers. It was noted that 85% of Greek internet users are frequently shopping
online. The most preferred payment method is cash, which in 2017 the usage of credit
cards raised to 51%[ CITATION Soc20 \l 1033 ].

Research Aims and Objectives

According to the above-mentioned observations and presentation of current knowledge

regarding the topic it can be stated that:
The main objective of this research paper is to review current findings regarding
innovative solutions for increasing last mile efficiency in e-commerce industry in Greece.

It will be investigated current challenges and further opportunities for creating innovative
solutions for raising efficiency in last mile delivery. Therefore, the obtained findings from
the current knowledge will contribute to quickly identify improvement points and areas of
intervention in order to improve the efficiency of last mile delivery in e-commerce sector.

However, this research paper aim is to provide further innovative and efficiency-oriented
solutions for last mile delivery and proposing further research directions.

Therefore, it will be applied exploratory and critical research in order to achieve proper
evaluation on Innovative solutions to increase last-mile delivery efficiency in B2C e-
commerce.
Research Methodology
This chapter will generally elaborate the methods that are going to be used for
interpretation of the gathered data. It will be covered the methods that are going to be
used for data collection, statistical techniques, data analysis and other research spheres.

Research Philosophy
Saunders, Lewis and Thornbill (2012) stated that research philosophy is a belief about
the way the data is gathered, used and analyzed. Therefore, the proper philosophy is
accordingly adopted and comprehends significant assumptions regarding the research
study. There are different types of philosophy that can be applied according to the
research type. Positivist believe that reality is stable and can be observed and described
from fact-based viewpoint, without interfering the phenomena when being
studied[CITATION Lan18 \l 1033 ]. On the other hand, interpretivist conduct study through
subjective matter of the phenomena, they interpret their viewpoint of a reality as the
phenomena is in its natural environment[ CITATION Sau12 \l 1033 ].

Therefore, this research study will be based on positivism philosophy, which indicates
that the only phenomena that the research can observe will lead to production of
credible data. Predictions can be made on the basis of previously observed and explained
realities and their inter-relationships. This research paper will generate the hypothesis
based on existing theories. Therefore, these theories will be furtherly tested and
confirmed, with additional theory development.

Research Classification and Approach

When conducting a research project, several steps need to be taken into account. Firstly,
it needs to be identified and stated the research question in correct manner. Secondly,
depending on the research question, it needs to be carefully chosen which methodology
is going to be used.

Part of the data obtained during this research will be through the application of
quantitative research techniques and instruments. Such data will be used to generate
qualitative insights and draw conclusions regarding the determination of the impact of
the concept of last mile logistics in a qualitative dimension to the interpretation of
knowledge. The strengths of this research method are that it provides the ability to test
and validate theories, generalize the research findings from large random sample and
also to make fast predictions[ CITATION Wie05 \l 1033 ].

So, the quantitative paradigm will be the research paradigm that will be used in this
research. Through quantitative method for this research paper collection of
questionnaires will be implemented. This method was chosen, since it allows to
generalize the results and it allows to pre-determine hypothesis.
However, this research paper will be based on deductive approach, since it will be based
on data collection and further data analysis.

Research Strategy
According to Saunders et al. (2012), your choice of research strategy will be guided by
your research question(s) and objectives, the extent of existing knowledge, the amount
of time and other resources you have available, as well as your own philosophical
underpinnings.

Therefore, this research paper will follow survey strategy. Also, the research procedures
used for the purpose of this research are: surveying, quantitative data analysis, and
qualitative data analysis.

Therefore, in this research survey strategy, were selected students and staff from
different educational institutions, such as primary, secondary schools and universities, in
order to get wide audience and generalized results.

Data Sampling
The research aims to make the results that are interesting and applicable to all
participants. This research paper, primary data is going to be applied through distribution
of questionnaires. As already mentioned, questionnaires are used for descriptive or
explanatory research which is suitable for this dissertation paper. Therefore, this
dissertation research paper, through the collected data will enable examination of the
relationship between the variables. Accordingly, this research can be considered as
primary research, since the data collected is done through questionnaires and originated
by the researcher, which directly address the research problem.

Moreover, the questionnaire will be designed while taking into consideration all the
variables and subcategories and will be established in English and Greek language, for
better distribution.

Data Processing
Data Processing or Data Preparation contains of few categories: checking data for
accuracy; transferring and coding the data to computer; transforming the data;
developing and testing the database for further measures. The next step after collecting
the data is to analyze it and afterwards to test the given hypothesis. As mentioned
earlier, coding and entering the data has to be done, the next step in the research
process is the data collection, which is usually in a numeric form and is transferred into a
computer-readable format. The quantitative data is used to establish correlation between
the given variables and outcomes. After this process comes the data editing, which
means assessment for accuracy from the questionnaire data [ CITATION Sek03 \l 1033 ].
Subsequently, when data is checked for accuracy it should be properly transferred to
excel so it can furtherly be analyzed statistically.

For this research paper the quantitative research method was applied because it involves
choosing a sample of the population with the aim to test conclusions based on certain
variables found through review of the literature. The research is based on statistical
analysis that will be done using SPSS (Software Package for the Social Sciences).

Data Analysis
The data will be analyzed using SPSS and Microsoft Office Excel. Microsoft Excel is a
software that assistances users to format, organize and calculate data by utilizing
formulas and creating spreadsheets [ CITATION Bar15 \l 1033 ] . In addition, Microsoft Excel
will be used for creating pie charts for the analysis of the demographic questions. SPSS
(Statistical Package for Social Sciences) is a software intended for statistical data usage,
analysis and further presentations. SPSS is a powerful tool that allow users to manipulate
and demonstrate data with large range of statistical options [ CITATION Mor12 \l 1033 ].

Research Ethics
Research ethics states to the appropriateness of the behavior in relation to the rights of
those who become the subject of your work or the ones who are affected by the work
[ CITATION Sau12 \l 1033 ].

The process of data collection from questionnaires, consent and possible participants and
maintenance of the confidentiality of data provided by individuals and their anonymity.
Accordingly, this research will not contain anything that might cause physical or
emotional harm to the participants. The questionnaire will be simple in terms of the
careful and selective content, that will not contain sensitive or difficult questions.

Accordingly, this research paper will be in accordance with the rules and regulations
made by the University of Sheffield, which will be included in hardcopy form. After the
committee approval of the ethics form, the collection of data will begin.
Gantt Chart

Task Name Start End Duration (Days)

Topic Selection and
Refinement
Project Proposal and Plan
Literature Review
Data Collection
Submission of first Draft
Application of changes
Interpretation of data
Final Report Submission and
Changes
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