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Shared logistics opportunities in urban areas:

Assessing route sharing practices for 3PL freight


distributions by employing stable matching logic and
the U-TURN platform

Dr. Εleni Zampou Dr. Vasilis Zeimpekis


INTRASOFT International OPTILOG Advisory Services
U-TURN Project Coordinator Managing Director
Eleni.Zampou@intrasoft-intl.com vzeimp@optilog.gr
The 3PLs logistics context in Greece

 No. of companies: 63.5K


 Turnover: €13bn
 No. of employees: 96K
 Services: storage,
transportation, delivery,
packaging, re-packaging,
returns, micro-picking, etc.
 5 out of the 163 largest 3PLs
share 26% of market revenues
 Warehousing mitigated the
adverse effects of the national
economic recession
Working Group

Manufacturers 3PLs Retailers


Willingness to disrupt their distribution by providing
better customer service with decreased cost
Lack of collaboration culture
Immature, fragmented and introverted market
Lack of agility and innovative mindset
Shared logistics opportunities
Among Suppliers Among Retailers Among 3PL
companies

 Return trip deliveries  Urban consolidation  Urban Consolidation Center


 In returns center  Remaining deliveries
 In particular areas  Deliveries in remote areas
eg. islands
 In urban distribution
Matching distribution requirements

Looking for loads!!!

Spare Capacity

We are here!!!
Stable matching approach
Stable matching algorithm

 Technological innovations
 Basic characteristics for market
adoption
 Optimality
 Fairness
 Strategy-proofness (trust)
U-TURN Platform
Stable matching innovation

 Technological innovations
 A matching NOT a bidding platform
 Solution based on stable-matching algorithms
 3 rounds of development and usability

 Market innovations
 Supports both spare offering and partner finding
 Use of analytics
 Developed from the market to the market!
 Already 2 real-life pilots with big players
Pilot Execution
1st Round: 2nd Round:
2/10-20/10/2017 14/3/2018 to 29/3/2018

Pilots Settings U-TURN platform Data


presentation Requirements
Distribution demand
Thriasseion

West and
Athens Center North-West North Suburbs East Attica
Suburbs
West and North- Athens Center
West Suburbs
Thriasseion
North Suburbs North-East
15% Suburbs
East Attica

North-East
Suburbs Piraeus & East
Suburbs 9% Mesogeia
Mesogeia
22%

South Suburbs 1
South Suburbs
South Suburbs 2 1

Piraeus & East South Suburbs


Suburbs 2
15
Results expressed in matches
Results (1st Phase vs 2nd Phase)

21.4%
46.9%

9.7% 23%
Enthusiastic potential customers

“Excellent idea! Smart implementation! The matching platform is


a very promising tool that can really support collaborative logistics
operations! ” (3PL Transport Manager)

“The matching platform is very user friendly and really provides


and added-value to the routing process ! We are looking forward
to a full scale use of the platform in the near future! ” (3PL
Dispatching Manager)

“The updated location data entry process is excellent!!! You have


reduced the assignment time and this tool is really awesome for
the end-user. I am really excited! Well done to everyone involved”
(3PL Company Routing Director)
Key findings

There are opportunities for wider collaboration that can


bring significant social benefits

Concerns about the applicability of collaborative


solutions on a day to day basis

Need for further platform exploitation and pilot


continuity
Strong collaboration and engagement is the key to
success
Thank you very much for
your attention !

Dr. Εleni Zampou Dr. Vasilis Zeimpekis


INTRASOFT International OPTILOG Advisory Services
U-TURN Project Coordinator Managing Director
Eleni.Zampou@intrasoft-intl.com vzeimp@optilog.gr

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