Last-mile-as-a-service (LMaaS): an innovative concept for the disruption of the supply chain

Abstract

Recent events such as Covid-19 vaccine distribution issues and the blockage of the Ever Given ship in the Suez Canal raised concerns about how fragile the traditional supply chain is. Last-mile personalized fulfillment can have a catalyst role in the proliferation of the Industry 4.0. This growing trend will reduce standard production, bringing manufacturing closer to the client and, ultimately, boiling down the supply chain to the last mile. However, the literature is not clear about the breakdown of the supply chain to enhance cities' sustainability and reducing the number of transports and circulating vehicles. Stemming from an empirical study to simulate the existing gap in the market and the development of a case study through structured interviews with privileged interlocutors complemented by the document analysis, this paper highlights how the integration of local stakeholders can efficiently enhance a personalized service based on dynamic collaborations to set up the supply chain, by introducing the Last-Mile-as-a-Service (LMaaS) concept. This concept relies on a revenue-sharing framework based on an open marketplace composed by last-mile manufacturing, transport, and storage assets and stakeholders to disrupt the supply chain, enabling any company to provide personalized products in almost real-time to any location.