Consolidation centre feasibility analysis
Urban congestion and the resulting emissions have long been the focus of city councils and local authorities, with an array of localised initiatives such as air quality schemes, designed to reduce city centre traffic. It is also increasingly common for borough councils to either mandate an offsite consolidation centre for new large retail or commercial developments to reduce vehicle movements into urban centres, or to insist a consolidation option is reviewed as a part of the planning process.
But while consolidation centres do have the potential to reduce the number of large vehicle movements into city centres, and thus lower emissions and road congestion, it can be difficult for companies to justify a business case for using them. A consolidation centre costs money to set up and maintain; to be financially viable, the fixed costs need to be shared across more end users to ensure long term sustainability. Consolidation of retail deliveries can only be considered and justified in specific cases – it is not a one size fits all solution – and recent planning applications have shown that approximately 50% of deliveries to a retail centre are candidates for consolidation.
If your organisation is facing local council’s request to consider setting up a consolidation centre, Logistics UK Supply Chain Consultancy team can help you with initial feasibility study and further project development to ensure the project is delivered in the most cost-efficient way.
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Eddy de Jong