18915: Last-Mile Operations in Emerging Markets: Dwell Time Efficiency for Nanostore Deliveries (session 25592)

Last-mile logistics for nanostore deliveries in emerging markets present significant operational challenges. Dwell time efficiency management is crucial for maximizing delivery productivity and reducing operational costs. Dwell time efficiency is calculated as the ratio of dwell time to the number of boxes delivered per customer. However, factors influencing dwell time efficiency in this context remain underexplored, especially given the unique conditions of urban environments in developing countries. This study aims to identify and analyze the key factors influencing dwell time efficiency in last-mile deliveries to nanostores in emerging markets, focusing on understanding how strategic, tactical, and operational decisions affect productivity, providing useful insights for companies that manage urban freight logistics. We conducted a cross-sectional observational study with over 2,700 observations of freight vehicles across 18 Mexican states. The analysis includes factors such as visit purpose (Sales, Delivery, or Sales and Delivery), vehicle type, door type (side or rear), and parking legality, among others. We use a hierarchical regression model to assess the impact of these variables on dwell time efficiency, considering both global and group-specific effects. Our findings show that integrating sales and delivery tasks (van-sales) is more productive, in terms of dwell time efficiency, than pre-sales strategies, making it the preferred model for serving nanostores. Moreover, vehicles with side doors are more efficient in serving nanostores than those with only rear doors. This advantage is especially important considering that 66% of vehicles are typically parked on the street. In such cases, side doors allow for faster and easier access to cargo, reducing the need for complex maneuvers and decreasing time spent at each stop. This feature is particularly valuable when serving nanostores, as our evidence shows that deliveries on secondary streets are less efficient than in primary streets. Additionally, the study finds no significant difference in dwell time efficiency between legal and illegal parking, challenging the assumption that illegal parking speeds up deliveries. This result is critical for encouraging legal parking practices. These insights are particularly relevant for companies serving nanostores in emerging markets, providing strategies to enhance productivity.

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