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Artificial Intelligence in Urban Last Mile Logistics - Status Quo, Potentials and Key Challenges

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Dynamics in Logistics (LDIC 2022)

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Abstract

Artificial Intelligence (AI) has the potential to solve the sustainability and service issues of Urban Last Mile Logistics (ULML). High delivery costs, noisy and polluting traffic, bad working conditions and failed delivery attempts could be addressed by measures like AI-based demand forecasting, intelligent tour and route optimization or digital delivery assistance. However, there is little empirical evidence on the extent to which AI can do this. Thus, the purpose of this report is to elaborate the relevance of AI for solving ULML problems by identifying use cases, potentials and challenges of implementing AI in ULML planning and execution. Therefore, we conducted 15 explorative expert interviews with ULML companies and analyzed them using qualitative content analysis to obtain an initial orientation in this new empirical research field. The findings indicate, among others, that the ULML industry is in the very early stages of AI implementation and that there is relevant potential for efficiency and service improvement. However, one of the key challenges is the perceived high level of uncertainty about achieving economic benefits while having high investment and AI operating costs. The practical contribution of this paper is to provide guidance for ULML companies starting AI activities. The scientific contribution is to show the practical need for AI implementation and to derive concrete research needs for the development of suitable AI methods and algorithms.

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Engelhardt, M., Seeck, S., Geier, B. (2022). Artificial Intelligence in Urban Last Mile Logistics - Status Quo, Potentials and Key Challenges. In: Freitag, M., Kinra, A., Kotzab, H., Megow, N. (eds) Dynamics in Logistics. LDIC 2022. Lecture Notes in Logistics. Springer, Cham. https://doi.org/10.1007/978-3-031-05359-7_22

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