Urban Consolidation Centres

Urban Consolidation Centres (UCC) are the initiatives that target the problem of the negative social and environmental impact of freight transports in urban areas (Allen et al., 2014). They are logistic facilities situated at the proximity of the areas they serve. They help in reducing congestion, improving load factors, reducing the miles traveled by the vehicles, and ensure environmental sustainability, for example, UCCs at La Rochelle in France (Johansson, 2019). UCC also offers a chance for the use of alternatively fuelled vehicles instead of diesel for deliveries from the UCC, which results in a reduction of greenhouse gas emissions such as nitrogen oxides and carbon oxides. At UCC, goods and services from the logistics service providers are first consolidated, and then they are distributed by separate operators to the receivers (Johansson, 2019). 

Supply chain Logistics in supply management chain plans, implements, and monitors flows of goods and services, from the origin to consumption to meet customer’s expectations (Allen et al., 2014).  Urban Consolidation Centres contribute to the generation of a wide variety of value-added logistic services activities, which are important in improving supply chain management efficiency, performance, and responsiveness. The logistics include minimal loading time, improvement in customer service, and a decrease in stock losses (Allen et al., 2014).

Since UCC offers stockholding services, product availability, and delivery lead times will be improved. The introduction of UCC will benefit the supply chain members because the space in the receiving establishment can be freed up to create room for other activities that are profitable, for example, retail services. Also, inventory monitoring can be provided to increase the visibility of the supply chain, which leads to improved product availability (Allen et al., 2014).

Useful links to better understand UCC:

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References

Allen, J., Browne, M., Woodburn, A., & Leonardi, J. (2014). A Review of Urban Consolidation Centres in the Supply Chain Based on a Case Study Approach. Supply Chain Forum: An International Journal, 15(4), 100-112. https://doi.org/10.1080/16258312.2014.11517361

Johansson, H. (2019). Urban Consolidation Centres: On Relationships between Customer Needs and Services in City Logistics. Linköping University Electronic Press.