The focus of logistics has been to deliver products to customers as quickly and consistently as possible
without a severe loss in profit. The growth of multichannel retailing in connection with the recent surge in
on-line ordering, has forced the logistics industry to evaluate current transportation practices and make
innovative adjustments.
On October 31st and November 1st, 2016, the Center for Regulation and Infrastructure from Fundação Getulio Vargas (FGV CERI) organized a two-day workshop discussion in collaboration with the World Bank and ABRACE. The event gathered regulators, government representatives, academics, operators, financial institutions and investors. The debate focused on the main challenges faced by the current restructuring process of the Brazilian gas industry. This document presents the main points discussed during the debates.
Date: 2017-01
Authors:
Vazquez, Miguel
Amorim, Lívia
Dutra, Joísa Campanher
A concession can be defined as a system through which a public authority grants specific rights to an organization (private or semi-public) to build, rehabilitate, maintain and operate an infrastructure for a given period. The BOT model (Build-Operate-Transfer) is a type of concession and should not be differentiated. Variations on the BOT include the BOOT (Build-Own-Operate-Transfer) and BOO (Build-Own-Operate). This brief addresses issues like the various concession mechanisms, the shadow toll principle and commercial & financial risks ppp’s involved in the transport sector. A section is also provided on emerging PPP telematics in transport sector.
The contending forces generated by friction between the collaborative platform firms in the paid transportation of people’s market, and the regulation present in anti-trust policies in Costa Rica will be discussed in depth as a means of determining the economic impacts that new regulatory bills may cause.The recent entryof developing countries into the collaborative economy has caused social and economic tensions due to the lack of an updated and rejuvenated legal framework which could reconcile the economic and legal differences.The expected results of a new anti-trust policy to regulate collaborative transportation platform firms in Costa Rica are a higher regulated price, a lower quantity supplied of hailing rides, and a loss of efficiency in the sector consequence of the new technical requirements. The case of Uber Company’s entry in Costa Rica is used to depict these economic effects.
On October 31st and November 1st, 2016, the Center for Regulation and Infrastructure from Fundação Getulio Vargas (FGV CERI) organized a two-day workshop discussion in collaboration with the World Bank and ABRACE. The event gathered regulators, government representatives, academics, operators, financial institutions and investors. The debate focused on the main challenges faced by the current restructuring process of the Brazilian gas industry. This document presents the main points discussed during the debates.
Date: 2017-01
Authors:
Vazquez, Miguel
Amorim, Lívia
Dutra, Joísa Campanher
A concession can be defined as a system through which a public authority grants specific rights to an organization (private or semi-public) to build, rehabilitate, maintain and operate an infrastructure for a given period. The BOT model (Build-Operate-Transfer) is a type of concession and should not be differentiated. Variations on the BOT include the BOOT (Build-Own-Operate-Transfer) and BOO (Build-Own-Operate). This brief addresses issues like the various concession mechanisms, the shadow toll principle and commercial & financial risks ppp’s involved in the transport sector. A section is also provided on emerging PPP telematics in transport sector.
The contending forces generated by friction between the collaborative platform firms in the paid transportation of people’s market, and the regulation present in anti-trust policies in Costa Rica will be discussed in depth as a means of determining the economic impacts that new regulatory bills may cause.The recent entryof developing countries into the collaborative economy has caused social and economic tensions due to the lack of an updated and rejuvenated legal framework which could reconcile the economic and legal differences.The expected results of a new anti-trust policy to regulate collaborative transportation platform firms in Costa Rica are a higher regulated price, a lower quantity supplied of hailing rides, and a loss of efficiency in the sector consequence of the new technical requirements. The case of Uber Company’s entry in Costa Rica is used to depict these economic effects.
Because of the complexity of multiple market drivers, companies and industries often don’t ‘see’ or realize potentially significant or disruptive changes are coming until they are already upon them. Many of the critical forcing factors can be out of the line of site of management and strategic planners. Management may also believe a change in direction will be too risky or they may even be in denial of an alternative future even though the signs of looming change are becoming clear. Consequently, rapid and substantial change is often missed or ignored until it is too late.
Mahendra K Shah, Managing Director, V-Trans (India) LimitedV-Trans
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The report touches upon the economic impact the new pricing strategy can have on the transport network of Metro Vancouver.
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(CEP). It is an entire ecosystem that brings a variety of goods to consumers’ doorsteps (or
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from two industry perspectives: commercial vehicles (advanced industries sector) and CEP
(logistics sector). Our analyses revealed three main insights
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For more detailed information on delivering micro-credentials in TVET, visit this https://tvettrainer.com/delivering-micro-credentials-in-tvet/
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Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
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In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Because of the complexity of multiple market drivers, companies and industries often don’t ‘see’ or realize potentially significant or disruptive changes are coming until they are already upon them. Many of the critical forcing factors can be out of the line of site of management and strategic planners. Management may also believe a change in direction will be too risky or they may even be in denial of an alternative future even though the signs of looming change are becoming clear. Consequently, rapid and substantial change is often missed or ignored until it is too late.
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Our Managing Director, Mr. Mahendra Shah in talks with Cargo connect magazine on Government policies & their impact on Logistics sector & services & future plans of V-Trans (India) Ltd.
The Impact of Mobility Pricing in Metro Vancouver Akash Behl
Transportation is a vital part of the ecosystem of any urban or non-urban area. With population escalating in Metro Vancouver, the need for efficient transport systems and effective pricing strategies is significant.
To combat the problem of traffic congestion, the Metro Vancouver Independent Mobility Pricing Commission has proposed congestion pricing.
The report touches upon the economic impact the new pricing strategy can have on the transport network of Metro Vancouver.
Last-mile delivery is the final stage in the network of courier, express, and parcel companies
(CEP). It is an entire ecosystem that brings a variety of goods to consumers’ doorsteps (or
very close). In 2016, we looked at the transport market – and in particular last-mile delivery –
from two industry perspectives: commercial vehicles (advanced industries sector) and CEP
(logistics sector). Our analyses revealed three main insights
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Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
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MOTOR CARRIER REGULATION AND LAST MILE DELIVERY: HAVE WE COME FULL-CIRCLE WITH CARRIER PRACTICES?
1. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
DOI:10.5121/ijmvsc.2022.13402 11
MOTOR CARRIER REGULATION AND LAST MILE
DELIVERY: HAVE WE COME FULL-CIRCLE
WITH CARRIER PRACTICES?
John M. Woosley, Rachelle F. Cope, Robert F. Cope III and David C. Wyld
Southeastern Louisiana University, College of Business, Hammond, Louisiana USA
ABSTRACT
The focus of logistics has been to deliver products to customers as quickly and consistently as possible
without a severe loss in profit. The growth of multichannel retailing in connection with the recent surge in
on-line ordering, has forced the logistics industry to evaluate current transportation practices and make
innovative adjustments.
In our work, we reflect on the changes to motor carrier transportation over time through the lens of
regulation. Concerns about rates, entry to markets, and the safety of carriers were common around the
Great Depression. Policy makers took notice and imposed economic and social regulation. Motor carrier
strategies changed to meet these new policies and the motor carrier industry settled into decades of
stability.
Midway through the 20th century many began to question the efficiency of the industry. Entry was difficult,
rates were considered high, but safety issues were of little concern at the time. Deregulation became widely
popular with policy makers, and the industry changed its strategies again to comply with deregulated
policies.
Today, technology has become a prominent tool for all. Together, e-Commerce, Omni-Channel
Distribution, Last Mile Delivery and Gig Delivery are poised to change motor carrier practices again. So,
where does the industry go from here? Some think that it is headed back to economic and social regulation
policies of the past.
We examine the impact of previous legislation on the transportation industry, specifically motor carriers,
which led to deregulation of motor carriers in the 1990’s. Considering the growth of on-line sales, we
attempt to look forward, using the past, to hypothesize how they may operate in the future.
KEYWORDS
Transportation management, Supply chain management, Logistics, Trucking, Ground delivery, Strategy,
Government regulation
1. INTRODUCTION
The base level of business practice is, always, to minimize costs while attempting to maximize
revenue in a competitive marketplace. The transportation industry is no exception to this practice.
Many in the motor carrier industry have seen their strategies for delivery change through the
years. In the beginning, or pre-stock market crash, it was easy to get into the business. All
someone needed was a vehicle and a purchase order for delivery. Unfortunately, competition was
fierce, and rates fell to a point where safety became an issue and regulation was needed to ease
the fears of the public.
2. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
12
With regulation, entrance into the industry became difficult. Proof to a regulatory body that
“public convenience and necessity” for a route was needed for carriers to make service additions.
The additions were so hard to get that motor carriers strategically deployed vehicles in an attempt
to maximize their benefit. Strategies were developed to provide city-to-city service via large
vehicles, while smaller vehicles were performing commercial and residential deliveries within the
boundaries of their jurisdiction.
Regulation of the motor carrier industry went on for several decades until there was a push by
lawmakers to deregulate it (or semi-regulate it) and let the competitive pressures of the industry
set rates for routes. The inability for motor carriers to take on a “backhaul” led many to believe
that there were many inefficiencies in the industry. Such deregulation allowed those in the
industry to rethink their current fleet practices. Not only were larger vehicles used for city-to-city
routes, but firms began to use them for door-to-door routes too. Conversely, smaller vehicles
were still used for door-to-door deliveries, but now they were available for quick city-to-city
services for smaller (hot shot) loads.
With the increased use of technology in commerce today, choices for consumers have surfaced
that allow for retail consumption. Traditional brick-and-mortar retail facilities are still around, but
the infusion of e-Commerce and Omni-Channel distribution into the mix has had a tremendous
effect on logistics. Now, customers can pick how they would like to take ownership of their
purchases. For instance, they can go to the retail facility and pick up their purchases either on
their own or with the help of in-store pickers with curbside delivery. Or, they can make use of e-
Commerce systems and have their purchases sent directly to their homes or businesses from the
retail facility or fulfilment (distribution) center. To many, delivery directly to one’s home or
business has been given the title “Last Mile” delivery (the final step in the entire delivery process
- and arguably, the most important one!). Once again, Last Mile delivery is reshaping the motor
carrier industry and its practices. In our work, we review the history of the motor carrier industry
and how Last Mile delivery may have brought it back to its roots of regulation with fleet
strategies for economies of scale and distance services.
2. FORMS OF REGULATION
Through the years, the federal government in the United States has historically taken a special
interest in regulating certain industries. Controlling the transportation industry through federal
and state regulation is one of them. It all dates to the passage of the Act to Regulate Interstate
Commerce passed on February 4, 1887, which created the Interstate Commerce Commission.[1]
Slightly before that, in 1870, the Granger Laws regulated railroads. But it was in 1887 that the
federal government became active in protecting the public interest with respect to a firm’s
performance and its ability to provide such services.
Like most forms of regulation, transportation regulation can be grouped into two categories.
These are economic regulation and social regulation:
Economic Regulation: Seeks to achieve its goals of industry growth, service availability,
stability and fair prices, by controlling entry, rates, and service routes in all forms of
transportation infrastructure – roadways, waterways, airports and seaports [2].
Social Regulation: Establishes safety initiatives in equipment design, hazardous material
classification, packaging, and handling to protect the public from increased
environmental and liability issues [2].
While most regulatory forms focus on economic regulation, recent proposals have more and more
been directed toward social regulation for public safety, such as traffic, noise, air quality, etc.
3. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
13
3. THE MOTOR CARRIER ACT OF 1935
The Motor Carrier Act of 1935 (P.L. 74-255, 49 Stat. 543, n.d.) [3] was one of many statutes
enacted during the 1930s that brought key components of U.S. business under government
regulation. Many believed that an unregulated transportation marketplace was partly to blame for
the Great Depression of 1929, otherwise harming the public [1].
To be more specific, the economic problems of the motor carrier industry are closely related to
the overall state of the U.S. economy. It was argued that the motor carrier industry problem was
that entry was much too easy. Entry into the industry only required a driver and ownership (or at
least financial responsibility) of a truck. The high level of unemployment during the Great
Depression made entry into the motor carrier industry quite attractive. Many argued that
overcapacity within the industry drove motor carrier rates to a level where it was difficult to
maintain equipment and consequently, safety took a low priority. Thus, regulation was needed in
the presence of excessive, or destructive competition [4].
Supporters of regulation argued that these statutes could prevent a recurrence of such devastating
market events. Therefore, the Interstate Commerce Commission (ICC) supported the need for
significant control over motor carrier operations and rates to maintain a stable transportation
industry through an application process.
The 1935 Act divided motor carriers into two categories: Common Carriers and Contract
Carriers. Common Carriers were defined as carriers who offered their services to the public,
while Contract Carriers were defined as service agents who had agreements with one or a
limited number of customers. Applications by new truck or bus companies, or applications by
existing companies to expand their operations could only be granted if the proposed service met
the “public convenience and necessity" clause of the statute. This requirement restricted the
ability of new firms to enter the transportation marketplace and existing firms to expand in new
areas. It also inhibited competition between motor carriers and railroads, and between common
and contract carriers. The 1935 Act also required that the rates charged by motor carriers be "just
and reasonable" and could not discriminate among customers of similar circumstances. In
addition, the Act required motor carriers to file rates at least thirty days before they were to
become effective allowing existing companies to protest [4].
The 1935 Act also specifically exempted certain individuals, companies, and products from
regulation. Large carrier company trucks, individuals using their own trucks as part of their own
business, school buses, taxi services, and motor vehicles operated by farmers for agricultural
needs were some of the few. The effects of the Act encouraged motor carrier firms to create
designated fleets. A large truck fleet carried goods for the long haul (city-to-city), while smaller
truck fleets carried goods for the short haul (door-to-door).
4. THE MOTOR CARRIER ACT OF 1980
From the 1940’s until 1980, new or expanded entry into the industry to transport goods was
practically impossible to obtain unless no existing firm opposed an ICC application. Even if the
new or expanded service was not offered by existing carriers, the ICC held that a currently
certificated trucker who expressed a desire to carry the goods should be given the opportunity to
do so above the desire of the new applicant. Therefore, the applicant would be denied. The effect
of the ICC position restricted competition from new carriers. Purchasing the rights of an existing
motor carrier became the only practical approach to entering a particular market [5].
4. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
14
Such regulation reduced competition and made trucking inefficient. Routes, and the goods carried
over them, were narrowly specified. Motor carriers with authority to carry a product from one
city to another often-lacked authority to haul anything on the return trip (known in the industry as
a backhaul).
In the 1960s the winds of motor carrier regulation began to change. President Kennedy was the
first president to ask Congress to recommend a reduction in the regulation of what he referred to
as surface freight transportation. Next, President Ford called for legislation to reduce motor
carrier regulation. He aided the process by appointing several commissioners to the ICC who
favored competition. Finally, President Carter, after deregulation of the airline industry and
facing strong opposition from unions, enacted the Motor Carrier Act of 1980 (P.L. 96-296, 95
Stat. 793, n.d.) [6].
The then-new Motor Carrier Act greatly limited the ICC's authority over trucking. The 1980 Act
made it significantly easier for a motor carrier to obtain a certificate of “public convenience and
necessity.” The 1980 Act also required the ICC to remove most restrictions on what goods could
be transported, on routes that motor carriers could use, and on the regional areas they could serve.
The 1980 Act also authorized motor carriers to price their services more freely within a "zone of
reasonableness," meaning motor carriers could negotiate rates from current levels by ± 15 percent
without question. In addition, it allowed motor carriers to make independent rate filings with
even larger price changes [5].
Benefits have been numerous since motor carrier deregulation. Some of the more obvious
benefits include lower carrier rates, higher employment for both union and nonunion workers,
and less fuel consumption. Other not so obvious benefits include a reduction in rates for less-
than-truckload (LTL) shipments and more timely deliveries in support of just-in-time activities
by firms[5].
Deregulation allowed motor carriers to rethink their original fleet concepts. The 1980 Act
provides for large trucks to perform city-to-city (economies of scale) as well as door-to-door
(Last Mile) deliveries. In addition, small trucks perform door-to-door (Last Mile) deliveries but
can also perform city-to-city (hot shot) deliveries.
5. THE ICC TERMINATION ACT OF 1955
The final step to deregulate motor carriers happened in 1995. It was during a period when
deregulation was still quite popular. President Bill Clinton signed into law the abolishment of the
Interstate Commerce Commission through the ICC Termination Act of 1995 (Public Law 104-88,
109 Stat. 803) [7].
In its place, the U.S. Surface Transportation Board (STB) was created. Through this board, the
Secretary of Transportation would now preside over motor carriers, water carriers and freight
forwarders. Regulated rail carrier jurisdiction was also transferred to the STB. Motor carrier
regulations became split under the new law. It was now loosely regulated on safety, but not on
rates. This occurred through the Department of Transportation’s Federal Motor Carrier Safety
Administration (FMCSA) [8]. Through strong lobbying efforts, collective ratemaking was left
unchanged.
5. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
15
6. E-COMMERCE AND ITS EFFECT ON LOGISTICS
Moving toward the turn of the century, technology created new pressures for businesses.
Consumers, or newly created Digital Shoppers, now have choices for making purchases along
with the logistics practices that deliver them. The term e-Commerce (electronic commerce) is
defined as the buying and selling of goods and services, or the transmitting of funds or data, over
an electronic network, primarily the internet [9]. These business transactions occur either as
business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-
to-business within a supply chain.
The use of e-Commerce began in the 1960s, when businesses started using EDI to share business
documents with other companies. Since its inception, e-Commerce has grown exponentially.
Figure 1 (Retail e-Commerce Sales Worldwide, 2014-2023) below illustrates the trend. In
1979, the American National Standards Institute developed ASC X12 as a universal standard for
businesses to share documents through electronic networks. After the number of individual users
sharing electronic documents with each other grew in the 1980s, the rise of eBay and Amazon in
the 1990s revolutionized the e-commerce industry [10].
Figure 1. Retail e-Commerce Sales Worldwide, 2014-2023 (Source data drawn from Statista’s “Global
Retail e-Commerce Sales”) [11]
The Internet enables consumers to enter the global economy, they can compare prices across
areas, find out how they vary by request, and become aware of substitution. Buyers subsequently
obtain a distinct advantage. Thanks to market openness, consumers can conveniently compare e-
Commerce offerings from different websites.
Many consumers now buy items online from e-Commerce-only vendors (also called e-tailers)
and brick-and-mortar stores that have e-Commerce capabilities. Since the COVID-19 pandemic
of 2020, almost all retail companies are integrating online business practices into their business
models. With shoppers confined to their homes for an extended period, e-Commerce jumped to a
record high of 16.4% in the second quarter of 2020, according to the U.S. Census Bureau, and
has increased the needs of logistics practices creating a new method for distribution known as
Omni-Channel distribution [12].
6. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
16
7. OMNI-CHANNEL DISTRIBUTION AND LOGISTICS GROWTH
Omni-Channel distribution is defined as one-touch integration between operations and physical
product flows across all channels to provide a seamless shopping experience [13]. In other
words, Omni-Channel distribution is a system that enables customers to complete a purchase and
receive orders from any distribution channel they choose. The most frequently used channels in
the e-Commerce market are referral websites, ads, search engines, mobile marketing, social
media, etc. The success of an e-Commerce marketing strategy depends on the ability to manage
all of the various distribution channels at once.
In addition to all of this, the retailers usually face issues on how to track and improve sales, or
what software to choose for e-Commerce campaigns. Consumers want plenty of choices
including when, where and how their orders will be fulfilled. They no longer shop by the two
methods of online or brick-and-mortar locations. They have expanded their expectation to include
shopping online, pick up in physical stores, or purchase in physical stores and require shipment to
another location [13]. The integration between physical stores and online stores has become more
pervasive. This new expectation by customers has increased the number of distribution channels
and increased logistics complexity, especially in transportation.
8. LAST MILE DELIVERY
Datex Corporation defines Last Mile delivery as the movement of goods from a transportation
hub to the final delivery destination [14]. That final delivery destination is typically a personal
residence, and this segment of the delivery route typically incurs the highest cost per item. Figure
2 (Last Mile Delivery in the Supply Chain) below illustrates the delivery “miles” – including the
“Last Mile” that is the focus of the present research - in the supply chain [15].
Figure 2. Last Mile Delivery in the Supply Chain
The objective of logistics has always been to deliver products to customers as quickly as possible
without a severe loss in profit. In densely populated areas, delivering huge volumes of packages
rapidly is easier and faster than in rural areas, simply because of the logistics involved.
7. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 13, No. 4, December 2022
17
Businesses understand this and carefully plan new strategies to optimize efficiency, reduce travel
time, and keep costs under control. Besides retail establishments, having warehouses, distribution
centers and fulfillment centers in optimal locations adjacent to population centers has been
instrumental in the Last Mile delivery logistics process to date. Some of the most important
factors for consumers when considering delivery options include cost, speed, flexibility,
reputation, and service.
Due to the growing need for faster shipping, changing regulations and infrastructure limitations,
transportation providers have begun to research and offer alternative delivery solutions. These
alternative delivery solutions include: click-to-collect, robots, Uber, drones, and other local
delivery services. Transportation firms have recognized the following as areas of interest for
future development: improved tracking, improved alerts, Sunday deliveries, improved re-delivery
options, delivery to safe place options, and delivery to locker banks. Twenty-eight percent of total
transportation costs are attributed to Last Mile delivery, the least efficient leg of the supply chain
[14].
9. THE “GIG ECONOMY” AND NOW, “GIG DELIVERY”
To meet the ever-increasing expectations of e-Commerce customers, logistics providers are
expanding their strategies to find ways to deliver parcels faster and cheaper. By focusing on the
Last Mile, combined with the growing “Gig Economy,” delivery-oriented logistics has spawned a
new model made up of smaller and more agile carriers. The Gig Economy is an environment in
which temporary positions are common and firms contract with independent workers looking for
job flexibility for short-term engagements [16].
In a Gig Economy, large numbers of people work part-time or temporary positions. The
expectation is cheaper, more efficient services for those willing to use them. While the concept of
short-term or same-day delivery is not new, demand for it and more complex delivery services
continues to grow. Thus, the need for new and innovative carrier options and delivery tracking
software is expected to grow with it.
“Gig Delivery,” or crowd sourced delivery, is an emerging strategy of fulfillment by shippers that
leverages networks of local, non-professional couriers to deliver packages to customers' doors. In
its beginnings, Gig Delivery was common in meal and grocery delivery. However, that is
changing as traditional retailers look for ways to cut costs and maximize Omni-Channel
efficiency, especially for Last Mile, same-day deliveries.
As for labor, there are plenty of eligible providers currently working gigs either as their primary
or secondary sources of income. “According to the Bureau of Labor Statistics, in 2018 16.5
million people were working in “contingent” or ‘alternative work arrangements,’ with 2.6 million
classified as on-call workers (1.7 percent of total employment)” (n.p.) [16]. Demand and the
technology are currently in place to support Gig Delivery, and the supply of carriers continues to
grow. “According to Intuit, the gig economy is now estimated to be about 34 percent of the
workforce and expected to be 43 percent by the year 2020” (n.p.) [16]. Figure 3 (Growth in Gig
Economy Gross Volume Transactions, 2018-2023) below illustrates just how fast the growth of
the Gig Economy has been in the Last Mile delivery space [17].
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Figure 3. Growth in Gig Economy Gross Volume Transactions, 2018-2023 (Source data drawn from “The
Global Gig Economy: Capitalizing on a ~$500B Opportunity” [17])
Amazon provides an example of the change in motor carrier strategies by firms. For a
competitive advantage, Last Mile e-Commerce providers like Amazon try to satisfy the instant-
gratification delivery demands required by customers while performing that service at little or no
cost. In doing this, Amazon has created its own Gig Delivery fleet, known as Delivery Service
Partners, which is similar to the exempt owner vehicle classification of long ago.
Delivery Service Partners provide contracted delivery services to Amazon and its customers. As
an Amazon delivery carrier, partners work independently, drive an Amazon-branded van, are
provided with on-route gas and insurance coverage, and are part of a motivated team that safely
delivers Amazon packages to customers in their respective communities. In addition, Amazon
works with Delivery Service Partners when reasonable accommodations are required relating to
Amazon’s tools, systems, or work areas that necessitates Amazon’s input.
10.THE PAST IS OUR FUTURE
Motor carrier transportation delivery services have existed for over a century. In the beginning. it
was simple - someone had a vehicle and offered their services to move goods. Over time,
economic and social regulation became part of the industry for the good of commerce and for the
good of society. However, as we enter a new century the industry is starting to look like its old
self again. With deregulation and the introduction of technology, it looks like it is back to a
model where someone has a vehicle and offers their services to move goods.
In 1905, George Santayana wrote: “Those who cannot remember the past are condemned to
repeat it” (n.p.) [18]. Have we come full circle with motor carrier transportation? Did we learn
anything along the way? Where are we headed moving forward? These are all interesting
questions that the past may help us solve.
As for economic regulation, rates and entry into the industry seems stable without the ICC. Such
regulation hasn’t been on the minds of policy makers lately. However, firms are reviewing the
cost of e-Commerce fulfillment. Providers are investing more in setting up distribution centers as
close as possible to metropolitan areas to improve Last-Mile delivery performance. In addition,
the fleet concept looks restored. Larger vehicles are traveling city-to-city routes for economies of
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scale, while smaller vehicles, some utilizing door-to-door Gig Delivery services, are being used
for economics of distance.
When it comes to social regulation, public safety and security are of utmost interest. As an
example, Amazon, who is a leader in the fulfillment industry, provides its Deliver Service
Partners with operations schedules, insurance, and worker accommodations where necessary.
Environmental and liability issues are important to them, and others are likely to follow their lead
closely.
11.CONCLUSION
Moving forward, is the “invisible hand” of the market finally regulating the industry through
competition, or are we headed for “expanded” Motor Carrier economic and social regulation?
What’s best for the public? We are entering what is, let there be no doubt, a new phase in the
evolution of delivery services, where “proof of delivery” technology, carriers becoming
salesmen, and autonomous vehicles (drones) are showing growth in the industry. In addition,
unions may try to collectively bargain for e-Commerce workers (especially Gig Delivery). In the
end, regulation may be needed to provide boundaries for many of these new services. Only time
will tell, but history of the industry itself may provide us with a very useful road map to get there,
as well as opportunities for future research.
REFERENCES
[1] Hale, R. (2015, November 25). History Of Trucking and Transportation. Truckers Logic.
http://truckerslogic.com/history-of-trucking-and-transportation
[2] Bowersox, D. J., Closs, D., & M.Bowersox. (2010). Supply Chain Logistics Management. McGraw-
Hill.
[3] Motor Carrier Act of 1935 (Public Law 74-255, 49 Stat. 543).
[4] Poisler, M., & Greenberg, E. (2020). “History of Trucking Regulation: 1935 to 1980.” TLA Featured
Articles and Case Notes, GKG Law, pp. 22-26.
[5] Moore, T. (2002). “Trucking Deregulation, by Thomas Gale Moore.” InThe Concise Encyclopedia of
Economics. Library of Economics and
Liberty.https://www.econlib.org/library/Enc1/TruckingDeregulation.html
[6] Motor Carrier Act of 1980 (Public Law 96-296, 95 Stat. 793).
[7] ICC Termination Act of 1995 (Public Law 104-88, 109 Stat. 803).
[8] Popper, A. (1996). “In Defense of Antitrust Immunity for Collective Ratemaking: Life after the ICC
Termination Act of 1995.” Transportation Journal, Vol. 35, No. 4, pp. 26-33.
[9] Jain, V., Malviya, B., & Arya, S. (2021). An Overview of Electronic Commerce (e-Commerce).
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[10] Chai, W. (2020, December). “What is E-Commerce? Definition and Meaning.”SearchCIO.
https://www.techtarget.com/searchcio/definition/e-commerce
[11] Chevalier, S. (2022, September 21). “Global Retail e-Commerce Market Size 2014-2021. Statista.
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[12] Lutkevich, B. (2022, June). “Definition: e-Commerce.”TechTarget.
https://www.techtarget.com/searchcio/definition/e-commerce
[13] Nguyen, K. (2021, April 16). What is omnichannel distribution? World’s #1 POS for Magento.
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[14] Datex Corporation. (2019, March 8). White Paper: What is Going on in Last Mile Delivery:
Omnichannel Retail and Transportation and Logistics. Datex Corporation.
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transportation-and-logistics/
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[15] Jones, M. A., Cope, R., & Budden, M. C. (2009). The Multidisciplinary Nature Of Supply Chain
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[16] Pierbridge. (2018). The Growth of the Gig Delivery Economy. Pierbridge.com.
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[17] Mastercard and Kaiser Associates. (2019). Mastercard Gig Economy Industry Outlook and Needs
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Paper-May-2019.pdf
[18] Santayana, G. (1905). Reason in Common Sense. Dover Publishing.
AUTHORS
Dr. John Woosley is an Associate Professor at Southeastern Louisiana University. He
earned a Ph.D. in Business Administration with a concentration in Information Systems
and Decision Sciences from Louisiana State University in Baton Rouge, Louisiana in
2009. His research interests include pharmaceutical inventory control, sustainability,
medical information quality assurance, and logistics and transportation optimization.
Dr. Robert F. Cope III is a Professor of Operations Management at Southeastern
Louisiana University. He earned a Ph.D. in Business Administration from Louisiana
State University in 1998 and is also a registered Professional Engineer with the states of
Texas and Louisiana. His research interests include resource optimization techniques,
energy modeling, project management, statistical modeling, and the design of
information technology.
Dr. Rachelle F. Cope is a Dorcas and H.N. Capron, Jr. Professor of Supply Chain
Management at Southeastern Louisiana University. She earned her PhD in Business
Administration with a major in Information Systems and Decision Science from
Louisiana State University in 1996. Her research interests include knowledge
management, waiting line modeling, organizational citizenship behavior in supply chain
industries, and current delivery challenges in supply chain management.
Dr. David C. Wyld is the Merritt Professor of Management at Southeastern Louisiana
University. He earned his DBA in management from the University of Memphis in 1993.
His research interests include issues at the intersection of technological advances and
social and demographic change as they impact strategic management and marketing.