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Case Studies 79 The VMC logistics system is a purely private solution. Its motivations are higher service lev- els, lower costs, and the more productive use of private capital and assets. Truck VMT reduc- tions and smaller public health burdens are byproducts the system does not strive for, yet they are real benefits nevertheless and valuable to public planners. VMC is not unique in its logistics model--3PLs have introduced the same core features across the healthcare industry and around the country, and numerous hospital groups have adopted them. On the one hand, medical sup- ply management is a specialty business where the large size of customers has been helpful in tak- ing control of distribution methods from producers. On the other hand, 3PLs make a business out of specialties and one role public agencies potentially can play is to organize small customers into large negotiating bodies. The key lessons from VMC are that private motivations can align with public purposes in very desirable ways, and that private markets at a minimum can further these purposes--and perhaps be allied with, and encouraged, as well. The first step for a private planner seeking such benefits is to understand the methods of supply management employed by the businesses in its district. References and Sources United States Department of Census, population statistics and projections available online at Facts 2010 and Facts 2007, Vanderbilt Medical Center: "Growth of Medical Center's Campus Outlined at Meeting," Vanderbilt Medical Center Reporter, February 29, 2008, available online at Private interviews with Vanderbilt Medical Center staff in 2004 and 2009. London: Reducing Freight Impacts via Out-of-Hours Deliveries Background The city of London is the largest metropolitan area in the United Kingdom and the largest Principal Findings urban zone in the European Union. There are approximately 7.5 million residents in Greater Out-of-hours deliv- London (2007) with a population density of 4,542 inhabitants per square kilometer, more than 10 times that of any other region in the United Kingdom. The population of London is projected eries (OHDs) are to grow by 900,000 people to a total population of 8.3 million by 2025. best suited to large As a commerce center, London generates approximately 20 percent of the United Kingdom's businesses operat- GDP, and is one of the world's major international finance hubs. More than half of the United ing centralized dis- Kingdom's top 100 listed companies (the FTSE 100) and over 100 of Europe's 500 largest com- panies are headquartered in central London. Over 325,000 people are employed in London's tribution systems financial services sector alone. London is also a major tourist attraction that hosts some 15 mil- fed from a regional lion international visitors every year. Road congestion is the biggest cost to the movement of distribution center freight in London with around 82 percent of freight being moved by trucks. Congestion costs the freight industry around 800 million per year. Population growth projections suggest that because they can freight activity could increase by up to 15 percent over present levels by 2025. justify the additional Central London attracts 180,000 light trucks and 60,000 heavy trucks each day. Commercial staff costs in man- trucks travelled 5.6 billion vehicle kilometers on London roads in 2007. Approximately 60 per- ning the facility out cent of all commercial vehicle kilometers were attributed to company-owned light trucks in London between 2003 and 2005, reflecting the importance of the service sector as a freight vehi- of hours, and also cle trip generator. The impact of freight activity in terms of on-street waiting time in the capi- have the potential tal is highlighted by the fact that 33 percent of warden-issued penalty charge notices (PCNs) and 59 percent of camera PCNs (fines for vehicle parking/loading) were issued to commercial for handling vehi- vehicles in 2008. cles off the public

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80 Guidebook for Understanding Urban Goods Movement highway. OHDs Safety and emissions are significant issues associated with truck traffic in London. In 2007, 419 people were killed or seriously injured in collisions involving commercial vehicles in the capital. have been shown The situation has been steadily improving (this was 46 percent lower compared to the annual to (1) improve driver average between 1994 and 1998). It also is estimated that commercial trucks account for approx- and fleet productiv- imately 25 percent of CO2 emissions resulting from transportation in London. ity, (2) reduce the Across London, planning and environmental health restrictions limit when retailers and busi- nesses can take delivery of goods and services. Individual boroughs (32 across London) decide environmental foot- on their own delivery restrictions, primarily to protect residents from noise disturbances. It is print of the logistics typical for commercial truck activity to be restricted between 10 P.M. and 7 A.M. Parking and operation by oper- unloading restrictions are indicated by yellow lines on the roadside, as well as "red routes" designed to keep specific key arterial routes clear of parked vehicles in the capital. Red routes ating vehicles more prohibit vehicles from stopping adjacent to the pavement from 7 A.M. to 7 P.M., Monday through efficiently during Friday. Loading bays are provided at selected locations along the routes where loading/unloading less congested peri- activities can take place from 10 A.M. to 4 P.M. with a maximum dwell time of 20 minutes per operation. ods, and (3) reduce the wider impacts The Story (crashes, noise, London's transportation strategy, Transport 2025: Transport Vision for a Growing World City, parking, etc.) of focuses on measures to address congestion and reduce CO2 emissions while at the same time sup- logistics operations porting London's sustainable economic growth. In particular, freight strategies look at balancing demand between modes, with an eye toward changes driven by technology and new operating on the local area. practices. Out-of-hours deliveries (OHD) offer one suite of measures to enable more sustainable Existing legislation movement of goods in the capital. The London Freight Plan published in December 2007, encour- (related to noise aged communities to examine OHD strategies within the Greater London area. levels and access Within central London, the following four types of delivery restrictions can exist: hours) is often the Planning restrictions are imposed at the time of planning consent for developing the premises. In the United Kingdom, restrictions specifically related to delivery activity may be contained major hurdle to within terms-of-use stipulations in the planning consent, typically drawn from suggested more widespread restrictions contained within planning policy guidance, issued by central government. adoption. Environmental health restrictions are most often in the form of Noise Abatement Notices; they may be imposed at any time and are designed to preserve the quality of life of local residents. Local voluntary agreements are decided at the local level and often are exercised as a volun- tary good code of practice outlining when deliveries should not be made. Voluntary restric- tions can be imposed by law if members of the public complain about noise disturbances. Highway-related traffic management restrictions are national-level decisions that can include local loading/unloading restrictions or larger schemes such as the London Lorry Control Scheme (LLCS). The LLCS restricts the movements of goods vehicles greater than 18 tons dur- ing the night and weekends. The LLCS is a permit-type scheme, requiring the use of specified routes to access premises, the reality of which means that the most direct access route can often not be used leading to inefficient, circuitous routes being taken to avoid key residential areas. OHD is a strategy addressing deliveries made during periods when local nighttime restrictions may apply or during other periods when delivery restrictions apply. OHDs can Improve driver and fleet productivity; Improve the environmental footprint of the logistics operation by operating vehicles more efficiently during times when there is less congestion; and Reduce the wider impacts (e.g., crashes, noise, and parking) of logistics operations on the local area.

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Case Studies 81 To help local authorities facilitate nighttime deliveries, the Department for Transport (DfT) published Delivering the Goods: Guidance on Delivery Restrictions (Department for Transport 2005), which set out to inform local authorities on how to implement and enforce delivery restrictions within their areas. This accompanied guidance on nighttime deliveries by the Freight Transport Association. Delivering the Goods, a toolkit for improving nighttime deliveries, was designed to help logistics providers set up pilot trials for OHD, while highlighting the important role local authorities have to play in protecting the interests of local residents. In London, there also are incentives for commercial vehicle operators to implement OHD strategies. The London Congestion Charge adopted in 2003 levies a 10 daily access charge (as of January 2011) to all vehicles entering the center of London between 7 A.M. and 6 P.M., Mon- day to Friday. Vehicles entering the zone are tracked using close-circuit TV and are given a set time to pay the charge after entering the zone. OHDs made outside the charging period, in addi- tion to greatly improving fleet efficiency, also can save money on access charges. In a study of the potential for OHDs in London undertaken by Transport and Travel Research Ltd. (2008), retailers who operate their own fleets were more likely to be interested in the OHD concept than those relying on contracted transportation services. This was due to pri- vate fleets being more likely to give their own drivers direct access to their stores without secu- rity concerns. The results suggested local authorities were interested in aiding businesses in developing OHD strategies provided that local noise regulations were not compromised and industry-led solutions (e.g., noise curtains, rubber floor mats, and driver training) applied whenever possible. Sainsbury's is the third largest supermarket chain in the United Kingdom with approximately 537 supermarkets and 335 convenience stores in their network. The Sainsbury's store in the bor- ough of Wandsworth was originally served with a Noise Abatement Notice in 2001, meaning that deliveries could not be received between midnight and 6 A.M. In 2007, Sainsbury's undertook a trial delivery program to evaluate impacts associated with moving to nighttime deliveries in the borough of Wandsworth. The Noise Abatement Society (NAS)--a working group of Sainsbury's and the Wandsworth Borough Council--developed a framework to have nighttime restrictions lifted at the Sainsbury's supermarket in Wandsworth for a 3-month period to conduct the trial. The purpose of the trial was to quan- tify whether nighttime deliveries had any detrimental impact on local residents or the wider community. For the OHD trial, the delivery profile that had been imposed on the market in Wandsworth was amended to incorporate specific deliveries during the previously restricted period between 1:30 A.M. and 3:00 A.M. Sainsbury's developed a series of operating rules for these deliveries that stipulated All vehicle engines must be switched off when stationary. No empty roll cages are to be loaded during nighttime deliveries. Rubber matting must be installed at appropriate locations to reduce the noise of the roll cages. Doors must not be slammed and cab radios must be switched off when doors are open. The distribution center must contact the Wandsworth store when the vehicle leaves to give an estimated time of arrival at the store. A designated telephone line was to be established by the NAS and advertised at the store for complaints to be evaluated and acted upon immediately. If approached by a member of the public, staff should immediately direct complainants to the store manager or the NAS com- plaint line. A noise monitoring survey also was undertaken to quantify before-and-after trial noise levels from deliveries made to the store.

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82 Guidebook for Understanding Urban Goods Movement Between October and December 2007, the Sainsbury's-Wandsworth ODH delivery trial Reduced the maximum recorded noise level during roll cage unloading by 8 to 10 decibels. (This was primarily attributed to the use of "dock curtains" on the loading bays to contain the noise from inside the trailer.) Reduced average delivery vehicle journey times by 60 minutes over a round trip from the dis- tribution center. Produced a saving in drivers' time of 2 hours per day, equal to 700 hours or 16,000 per year. Removed 700 vehicle journeys from the road annually (2 per day during the congested period), which is equivalent to a 68-ton reduction in CO2, and a 700-liter per year savings in fuel. Improved mean vehicle turnaround times at the store by 37 minutes. Increased overall staff productivity by 15 percent and improved product availability. Increased average sales by between 5 percent and 6 percent because of product availability at store opening time. Lessons and Conclusion Although ODH strategies appear to be a fairly simple, straightforward solution to urban deliv- ery problems, existing laws and regulations are often major hurdles to widespread adoption. Large retailers are usually very aware of the different restrictions placed on their store operations, and one of the most common grievances among freight operators in London is the inconsistency in regulations and enforcement between authorities, as well as the level of PCNs issued to delivery vehicles. Other challenges potentially limiting the implementation of OHD strategies include Noise generated by loading and unloading operations (e.g., tail lifts, roll cages); Time-specific deliveries requiring arrival within specified time windows; Lack of staff to receive deliveries during out-of-hours periods; Security concerns related to the vehicle, load, and driver; and The LLCS, which restricts the routes that can be used by lorries (trucks) over 18 tons at night and over the weekend. While helping to protect residential nighttime amenities, the scheme can sometimes lead to an increase in fuel use and emissions and deter journeys at less con- gested times of the day. London's experiences to date with OHDs occurring outside the charging period suggest that, in addition to greatly improving fleet efficiency, truck operators also save money on access charges. In addition, research on London's system suggests that OHD strategies are most effec- tive where local authorities assist businesses with developing such strategies to ensure that local noise regulations are not compromised and that industry-led solutions (e.g., noise curtains, rub- ber floor mats, and driver training) apply whenever possible. References and Sources Transport for London (2010) London Freight Data Report, prepared by the University of Westminster for TfL Freight and Fleet, available online at Data_Report_2009_final_10-06-2010_UoW.pdf Freight Transport Association (2007) "Night-Time Deliveries--Wandsworth Trial," available online at http:// pdf Department for Transport (2005) Delivering the Goods: Guidance on Delivery Restrictions, available online at Transport and Travel Research Ltd., (2008) Out-of-Hours Deliveries in Central London, prepared for the Central London Freight Quality Partnership, available online at icket=b%2BPtq06WfK8%3D&tabid=178&mid=538