Today, 64% of all travel kilometres made are urban and the amount of travel within urban areas is expected to triple by 2050. -The Future of Urban Mobility report, Wilhelm Lerner

Businesses find it challenging to manage their efficiency with rising urban delivery costs. Logistics sprawl has become the biggest hindrance for delivery companies that are trying to reduce last-mile delivery costs.

Logistics sprawl is the concentration of logistics facilities in the outskirts of metropolitan cities. It occurs due to a price rise in urban land spaces, increase in population density or large space availability in urban outskirts. It results in increased travel time and transportation costs.

Diversified urban logistics space like microhubs help businesses save costs in urban deliveries. It helps businesses to improve their operational efficiency in densely populated urban areas.

What is a Microhub?

Microhub is a micro-consolidation logistics facility set near a final delivery point (within 1 to 5 km from the final destination). They are also called micro-fulfillment centers, delivery microhubs or micro-distribution hubs. It is a type of urban logistics space that links warehouse centers to final delivery points.

Suburban Warehouse center

Suburban Warehouse center

Microhubs

Microhubs
 

Final Delivery Points

Final Delivery Points
 

What is a Microhub?

Microhubs have smaller physical footprints that range from 1000 square feet to 10,000 square feet.

Characteristics of Microhub Operations

Owned and operated by private transportation companies

Owned and operated by private transportation companies

Delivery of smaller and lighter loads

Delivery of smaller and lighter loads

Using eco-friendly transport like cycles, electric vehicles etc.

Using eco-friendly transport like cycles, electric vehicles etc.

Reduce the number of trips in dense urban areas

Reduce the number of trips in dense urban areas

Key Elements for Success of Microhub Operations

  • Multi-sectoral contribution: local authorities, research and development
  • Enforcement of stricter eco-friendly laws
  • A quantified estimate of participating carriers is required for every stage
  • Serve areas where delivery activities are difficult i.e. restricted traffic conditions
  • Function in high-density areas where high volumes of delivery accumulate
  • Strong cooperation and trust among partner carriers

Eco Logistics Principles

Microhub is a micro-consolidation logistics facility set near a final delivery point (within 1 to 5 km from the final destination). They are also called micro-fulfillment centers, delivery microhubs or micro-distribution hubs. It is a type of urban logistics space that links warehouse centers to final delivery points.

Microhub: Facilitator of EcoLogistics Principles

Efficiency

Efficiency

Microhubs help logistics companies to make on-time deliveries without any peak-hour pressures. It enables drivers to deliver smaller loads with greater frequency.

Faster Deliveries

Faster Deliveries

Being closer to final delivery points, microhubs reduce the distance travelled in the last mile. Faster deliveries in crowded areas improve on-time delivery rates of businesses, making last-mile logistics cost-effective.

Deeper delivery insights

Deeper delivery insights

Microhubs give logistics companies a microscopic view of their delivery performance in different urban delivery zones. It helps logistics managers to design customized plans for different delivery zones.

Customer experience

Customer experience

Setting up microhubs reduces the vehicle kilometers traveled per delivery. It improves customer experience by reducing long wait times and minimizing shipping costs.

Challenges in setting and operating microhubs

  • Running microhubs within stores makes it impossible to prepare a large number of orders compared to distribution centers.
  • Crowded urban centers do not have abundant storage surface area available for microhubs
  • A rise in online shopping demand burdens the parcel carrier company handling microhub operations

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Schedule a meeting with Locus

How can Locus help manage your logistics?

  • Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
  • Digitize all your operational variables such as fleets, delivery persons, etc to come up with the best route plan every day.
  • Track your orders in real-time with the Locus Live Dashboard. Locus’ last-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
  • Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle(fleet)—with a birds-eye view of your entire operations.
  • Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

$100 M+
Logistics costs reduced
100+ Years
Planning time saved
6300 + Tonnes
GHG emissions reduced

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