The cellular delivery model by Nektria

55% of the world’s population already lives in cities, a figure that reaches 75% in Europe and 82% in the United States. The trend towards global urbanization is a fact and this population growth in large cities in developed countries is leading to changes in the distribution chain and to an increasing demand for logistics solutions.

 

URBAN MOBILITY, A CHALLENGE FOR LAST-MILE LOGISTICS 

 

Traffic in large cities is noticeably more complicated, especially at peak times. Beyond personal mobility, we must also consider the transport of goods and services, without forgetting vehicle traffic restriction policies applied by the current city councils in urban centres.

The problem of urban mobility represents a challenge for the last-mile transport of goods, both from a perspective of logistical benefits (deliveries are complex and expensive), as well as from an environmental perspective. We must consider all of this without forgetting that goods traffic is growing exponentially with the rise of E-commerce and the increase in purchase and delivery options.

Given this scenario, Nektria is committed to the implementation of a new and disruptive delivery operating model: the Cellular Model. It is a model for areas of high demographic density that offers never-before-seen benefits in cost, as well as benefiting our environment and improving the quality of life in cities.

 

HOW DOES IT WORK?

 

In the cellular delivery model developed by Nektria, each delivery truck is accompanied on its route by other smaller and more agile vehicles that support it, such as, for example two motorcycles. By doing this, the motorcycles arrive at the delivery point before the truck and the same motorcyclists unload the product and deliver it to the consumer. As a result, the truck driver does not have to get down from the cab, and in just a few moments, he or she is ready to continue with the delivery.

And how do they coordinate with each other? Well, they stay on the same page thanks to our Field Delivery App used by both the truck driver and the delivery people that accompany him or her. Its great value lies in the fact that it is the only app in the world that is capable of managing the strategies of this innovative operating model. Let’s take an example: motorcycle 1 goes to point 1 while motorcycle 2 goes to point 2. The truck arrives at point 1 and motorcyclist 1 unloads the product and delivers it to the customer. Meanwhile, once the truck has been unloaded at point 1, it moves to point 2 where motorcycle 2 is waiting for it. At point 2, they repeat the same procedure as in the previous delivery. At the same time, motorcycle 1 is already at point 3 awaiting the arrival of the truck, and so on until deliveries are completed.

All the routes appear in the shared app, and thanks to this app, the whole distribution team collaborates to provide a more efficient service.

Additionally, this application serves to collect on-the-field feedback from the addresses of each distribution point. For example, each delivery person reports whether there is a lift in the building, if it is difficult to find the door, if there are two steps in the entrance hall… relevant information that can make subsequent routes even better.

 

WHAT ARE ITS ADVANTAGES?

 

The delivery time is cut in half. In traditional delivery, more than 50% of the time, a truck is parked or looking for parking, so its delivery capacity is reduced to 18 orders in 6 hours. In contrast, with Nektria’s Cellular Model, we can deliver the same orders in half the time. All of this counts on the fact that the truck is supported by two motorcycles. If it were supported by three motorcycles, for example, the delivery time would be reduced to a third. 

Cost reduction for the operator and for the city. The low productivity of traditional delivery systems means that a good amount of the trucks that enter the city do so without taking advantage of its capacity, since the pace of work does not allow for the delivery of so many orders in one day. The cellular system achieves a productivity that allows for maximum use of load capacity, thereby reducing the total fleet needed to travel around the city and that must be paid by the logistics operator.

Delays in delivery practically disappear, dropping from 5.59% to 1.27% thanks to working in teams, since, unlike in the traditional method, if any unforeseen event arises in the delivery, it does not affect the rest of the orders because the incidents can be resolved by the other team members. The person carrying out the delivery knows what he is going to find because his colleagues have already notified him. For example, if there is a traffic jam or something unexpected on the route, the motorcyclist can warn the rest of the team so that they can take another route to arrive at the meeting point. 

Teamwork. Since it is a model that allows distributors to collaborate with each other, they can share their stress and have the support of the rest of their teammates. The fact that those involved in the delivery process feel accompanied, they feel more at ease when doing their job, which is key. But, it is increasingly difficult to find professionals in the sector, especially in large urban centres.

An Eco-Friendly Model. The trucks spend less time traveling, which corresponds with less pollution and a reduced environmental impact. As such, this delivery model fulfils one of Nektria’s objectives, which is to respect the environment and enhance the sustainability of logistics processes. We must also consider that all the vehicles that accompany the truck can be 100% sustainable: electric motorcycles, electric bicycles, tuk-tuks, etc.

Less fines, more civility. The fact that the truck driver does not leave the cab and stops only to unload helps avoid fines and reduces disturbances to other drivers and pedestrians to a minimum, contributing to improving civility in large cities.

 

A DELIVERY MODEL WHERE EVERYONE’S A WINNER

 

With Nektria’s Cellular Model, transport costs are reduced to a minimum, service levels are optimized, the environmental impact is reduced, and all elements of the distribution chain are benefited: logistics operators, distributors, consumers and cities all win. A win-win that more than sufficiently deals with last-mile logistics.

References:

https://datos.bancomundial.org/indicador/SP.URB.TOTL.IN.ZS