The retailer’s perspective on the potential for using urban consolidation centers (UCCs)

A new paper examines the role of supportive policies and value-added services that may incentivize retailers to use an urban consolidation center (UCC). The methodology is a case study of Edinburgh, Scotland, based on semi-structured interviews with 30 retailers.

Results show that retailers are generally not positive towards using UCCs, and the services that they need are already being provided by their existing logistics service providers (LSPs). Nevertheless, they would be prepared if restrictions and rising costs forced them to use a UCC. In that case, they would want those services currently provided by LSPs to be provided by the UCC and would be prepared to pay for them.

For a successful transfer to a UCC model, the retailer, LSP, and UCC must work together to avoid losing revenue to the LSP.

Source: Akgün, E. Z., Monios, J., Cowie, J., & Fonzone, A. (2024). The retailer perspective on the potential for using urban consolidation centres (UCCs). Research in Transportation Economics, 103, 101413. https://doi.org/10.1016/j.retrec.2024.101413