The evolution of consumer preferences in last-mile delivery methods and the impact on urban logistics—A simulation study in the Rotterdam-The Hague region

Abstract

The growing demand for parcel delivery contributes to traffic congestion, high emissions, and rising costs of freight logistics, particularly in urban areas. To address these issues, new and sustainable last-mile delivery methods must be implemented. However, estimating the impact of different logistics systems is complex, as it depends heavily on consumer adoption of these new delivery methods. This paper presents a simulation model that captures and explores the interconnections between multiple last-mile delivery methods and corresponding consumer preferences. Two key factors affecting consumer preferences are simulated: (1) consumers’ response to the performance and availability of delivery methods, and (2) the sharing of knowledge through word of mouth and familiarisation. System dynamics is applied at the aggregate level to simulate the evolution of consumer preferences for last-mile delivery across multiple methods. At the disaggregate level, an agent-based model simulates the operational performance of these delivery methods, which in turn influences consumer preferences in the system dynamics model. This integrated approach allows for the observation of the evolving interaction between urban logistics supply and demand, providing key performance indicators on consumer preferences and the delivery method operations at consecutive time points. The developed simulation model is applied to a case study in the Rotterdam-The Hague region, a highly urbanised region in The Netherlands. Results show that consumer preferences strongly depend on the carriers’ ability to fulfil the demand. The dynamic interaction between supply and demand creates a reinforcing feedback loop, where the adaptability of carriers is crucial for the long-term success of a delivery method. Additionally, the spatial results reveal that there are zonal differences in the performance of the delivery methods. Further findings indicate that, while total vehicle kilometres and CO₂ emissions will rise due to increasing parcel demand in all scenarios, the average number of van kilometres and CO₂ emissions per parcel will decrease as demand grows.