Supply Chain Management: An International JournalThe role of a structured stakeholder consultation process within the establishment of a sustainable urbansupply chainInes Österle Paulus T. Aditjandra Carlo Vaghi Gabriele Grea Thomas H. Zunder

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The role of a structured stakeholderconsultation process within the establishment

of a sustainable urban supply chainInes Österle

Institute of Transport and Logistics Studies, The University of Sydney, Sydney, Australia

Paulus T. AditjandraNewRail – Newcastle Centre for Railway Research, School of Mechanical and Systems Engineering, Newcastle University,

Newcastle upon Tyne, UK

Carlo Vaghi and Gabriele GreaCentro di Economia Regionale, dei Trasporti e del Turismo, Universita Commerciale L. Bocconi, Milano, Italy, and

Thomas H. ZunderNewRail – Newcastle Centre for Railway Research, School of Mechanical and Systems Engineering, Newcastle University,

Newcastle upon Tyne, UK

AbstractPurpose – The purpose of this paper is to describe and analyse a case of local freight stakeholder involvement to plan and design eco-efficient citylogistics innovations in Como, a small city in Italy. While the importance of a well-functioning urban goods distribution system is widelyacknowledged, city authorities have become increasingly aware of the need to minimise the negative impacts associated to the system. There arenow countless examples of attempts to increase the eco-efficiency of urban freight deliveries; however, very few have made a notable impact. Thesuccess of such schemes often depends upon the response of a range of private sector freight stakeholders and their involvement during the planningprocess of these solutions is crucial.Design/methodology/approach – To engage local freight stakeholders within the planning process of a city logistics project, the logical frameworkapproach, in the form of the design and monitoring framework (DMF) developed by the Asian Development Bank, has been applied.Findings – The structured consultation process implied within the DMF approach allowed urban freight stakeholders to share their aspirations fromthe beginning of the city freight planning process, despite their differences in priorities in adopting eco-efficient logistics innovations. The processensured that city stakeholders accepted and committed to the city logistics strategies formulated during the consultation process, namely: changesto the Limited Traffic Zone regulation, the use of an urban consolidation centre and hybrid electric truck adoption.Research limitations/implications – The evaluation of the DMF application will be definitive after the demonstration/implementation stage of thecity logistics project. It will then become clear if freight stakeholders have committed to the project and if it is effective in delivering the expectedoutputs and outcomes.Practical implications – Local city authorities may find this method useful in situations where a structured consultation process is needed foraddressing urban freight issues. This is especially the case in the context of introducing innovative, eco-efficiency solutions.Originality/value – The application of DMF in the developed environment can be considered novel; this paper extends this with an application tothe promotion of sustainable urban freight.

Keywords City logistics, Design and monitoring framework, Logical framework approach, Public consultation process, Urban freight

Paper type Research paper

1. IntroductionSupply chain is a term used to describe a system of activities,people, technologies, information and resources targeted atdelivering a product or a service along the entire chain – fromthe provider of raw materials to the end customers. Supply

chain management integrates supply and demandmanagement, within and across companies and encompassesthe planning and management of all activities involved insourcing and procurement, conversion and all logisticsmanagement activities. Importantly, it also includescoordination and collaboration with channel partners, which

The current issue and full text archive of this journal is available onEmerald Insight at: www.emeraldinsight.com/1359-8546.htm

Supply Chain Management: An International Journal20/3 (2015) 284–299© Emerald Group Publishing Limited [ISSN 1359-8546][DOI 10.1108/SCM-05-2014-0149]

The research leading to these results has received funding from theEuropean Community’s Seventh Framework Programme (FP7/2007-2013)/Grant agreement no. 285195 – project Smartfusion “SmartUrban Freight Solutions”. The usual disclaimers apply.

Received 1 May 2014Revised 19 September 2014Accepted 1 December 2014

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can be suppliers, intermediaries, third-party service providersand customers (Gibson et al., 2005). However, the theoreticalbasis of supply chain management is weak, having grown outof multi-disciplinary studies; therefore, it arguably does notqualify as a scientific discipline (Chicksand et al., 2012).Logistics, on the other hand, is an integrated planning, control,realisation and monitoring of all internal and network-widematerials, parts and product flows – including the necessaryinformation flows – for addressing customer needs and gainingprofit. Logistics is an application-oriented scientific disciplinethat models and analyses economic systems as networks andflows of objects, through time and space, which create valuefor people (Delfmann et al., 2010). Recent researchdemonstrates the awareness of both the logistics and supplychain industries of the importance of innovation ineco-efficiency (Rossi et al., 2013) and the role that supplierscan play in improving the sustainability of supply chains,through governance mechanisms among the actors (Gimenezand Tachizawa, 2012). In supply network governance, trustand power have been identified as the key mechanisms ofgovernance instruments in delivering specific outcomes ofcorporate social responsibility policy (Pilbeam et al., 2012).

“Urban supply chains” – on which this paper focuses – is aterm used to identify that part of a supply chain charged withdelivering goods to towns/cities (Danielis et al., 2012). Urbansupply chain decisions are typically taken based oncommercial efficiency, disregarding the wider environmentaland social objectives. As a result, freight activities contributeto a range of negative environmental effects on the safety andquality of life in cities, such as air pollution, greenhouse gasemissions, noise, congestion and road accidents (Browne andGomez, 2011). On the other hand, the importance of awell-functioning urban goods distribution system is widelyacknowledged. For example, urban freight ensures adequatesupply at stores and it is fundamental to the economic vitalityof a city and its region (Crainic et al., 2004). A constantincrease in these negative effects, together with a growingurban population, increasingly force city authorities to try toreconcile the conflict between private and social objectives, inthe form of urban/city logistics schemes (Danielis et al., 2012).Urban/city logistics is a field that studies the best solutions forurban freight distribution, with a broad focus on social,environmental and economic objectives.

This paper presents the collaborative planning process of acity logistics project in Como, a small sized city in Italy. Theprocess involved local freight stakeholders, from both theprivate and public sectors, and was guided by the design andmonitoring framework (DMF), developed by the AsianDevelopment Bank (2007). The DMF is a form of logicalframework approach (LFA), which is widely used for theplanning and evaluation of aid development projects byagencies and non-governmental organisations. Key to theDMF is the involvement of stakeholders, during the wholeproject cycle, from project planning and implementation tomonitoring and evaluation. This collaborative planningapproach was applied to a city logistics project in Como toensure that the different views of freight stakeholders wereincluded within the project design. The importance of this isclear: the decisions of a wide range of local stakeholders affecturban freight and will therefore determine the success of an

associated project. The city logistics project in Como includesurban freight solutions from different areas of innovation,including an urban consolidation centre (UCC), vehicletechnology and policy measures. The area of study, Como,represents a typical Mediterranean historic city – aconcentrated, compact urban space with a high level oftourism. This poses constraints and challenges for citylogistics activities, especially in last mile delivery, requiring areduction in congestion and pollution through better use oftransport assets, knowledge sharing, shared consolidationfacilities and limited traffic zones.

The remainder of this paper is structured as follows: Section2 reviews the literature on urban logistics studies and focuseson the role of local authorities in shaping a sustainable urbanenvironment. Section 3 describes the LFA and its role inproject management, being the methodology adopted for thisstudy. Section 4 introduces the multiple urban freightstakeholders in Como and the context of its local urbanfreight. Section 5 analyses the process of DMF, as applied todefining the city logistics project in Como. Section 6 discussesconclusions and the directions for future research.

2. Literature reviewThe importance of coordination, partnership andcollaboration among urban stakeholders has long beenrecognised for effectively addressing sustainable urban freightdevelopment (Allen et al., 2000; Crainic et al., 2004;Lindholm, 2012a). According to Allen et al. (2000), aprerequisite for defining suitable freight policies is to identifywhich aspects of urban freight activities need to be influencedto desirably alter its environmental and social impacts. Thisshould preferably be done in collaboration with freightstakeholders (Allen et al., 2000). Similarly, Lindholm andBrowne (2013) advocate the need for public authorities toinvolve the private sector in freight planning to betterunderstand the impacts of regulations and plans on freightoperations. Conversely, the findings of Allen et al. (2000)highlight that the private sector lacks knowledge of theinitiatives and regulations put forward by the public sector toimprove the sustainability of freight operations, suggestingthat collaboration may be beneficial in increasing theirawareness. In addition, it has long been recognised thatstakeholder cooperation is a success factor for city logisticsprojects (Hesse, 1995). For example, key to the success of acity logistics project to establish the UCC “CityPorto”, inPadua, Italy, was agreement among the main local publicauthorities and business associations and the acceptance of themajority of transport operators of its use for last mile deliveryof their goods (Danielis et al., 2010). “CityPorto” of Padua, inoperation since 2004, is one of the few fine examples offinancially viable UCCs in Europe.

Despite the findings highlighting the importance of freightstakeholder collaboration to successfully address sustainablefreight development, there are only few cases where publicauthorities have engaged with private actors to consider freightin the overall transport planning process (Lindholm andBrowne, 2013). The most recognised example is that of apublic–private partnership (PPP) in the form of “freightquality partnerships” in the UK, with similar approachesbeing found in Sweden, The Netherlands and France

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(Ballantyne et al., 2013). In the long-term, such partnershipsresult in positive effects on the outcomes for both the privateand public sectors, as shown in a study by Lindholm andBrowne (2013). The role of local authorities in shapingEuropean city logistics has been scrutinised in current urbanfreight research and planning. Some of the main reasons forconcern are due to a lack of awareness and knowledge of citylogistics, thus pointing to an incompetence within cityauthorities for managing urban freight (Dablanc, 2007). In thepast decade, a series of city logistics measures/schemes,promoted by the European Commission, have failed to live ononce funding came to an end (Quak, 2011). Lack ofparticipation from stakeholders prevented the practicalimplementation of some of the measures and schemes (Allenet al., 2012). Furthermore, the absence of national/regionalbodies dealing with city logistics (Muñuzuri et al., 2012) andthe incoherence of working between various aspects of urbanfreight were reportedly deepening the issues in addressing thelocal urban freight agenda, as described in Lindholm (2013).An example of such incoherence is unbalanced flows, wheremore goods are transported into urban areas – by ordinarydistribution vehicles – than are transported out, and newestablishments, such as out-of-town shopping centres or towncentre shop-floor extensions. Notwithstanding the abovearguments, research and planning have long failed to give thesame level of attention to urban freight movement, as to themovement of people (Woudsma, 2001).

Recent observations have emphasised that modern logisticshas been shaping urban development and land-use, due tonew supply chain organisation and logistics network design.For example, re-development of warehousing districts,inner-city rail yards and freight consolidation facilities, amongmany others, have transformed land-use and the value ofhousing, retail or business services (Hesse, 2008).Furthermore, the EU medium- to long-term (2030 and 2050,respectively) agenda to address CO2-free city logistics,requires the introduction of green truck fleets and that othertechnological interventions and economic measures – e.g. thegreen taxation regime suggested in LOGMAN (2012) – beadopted by cities. The importance of retail distribution inemerging megacities is covered by Blanco and Fransoo(2013); and the role of logistics clusters in globalcompetitiveness and regional growth, in Sheffi (2013). Thesetrends, along with increasing transport activity, apply pressureon local authorities to ensure an efficient and effectiveland-use policy, for service businesses and personnel, for asmooth-functioning economy. Recent efforts to examine therole of local authorities in addressing city logistics point to aneed for generic decision-making frameworks, to facilitatemeaningful interaction between the various urban freightstakeholders (Ballantyne and Lindholm, 2014; Ballantyneet al., 2013). In particular, to avoid the sole focus on the citylogistics measures and schemes, and to envisage adoption of amonitoring and evaluation framework – supported by theassessment of performance indicators and knowledge transfer –to help local authorities with urban freight policy decision-makingand coordination (Lindholm, 2013; Lindholm and Blinge,2014). This paper aims to contribute to the development ofsuch a decision-making framework, based on a collaborative

approach to the planning and implementation of a sustainableurban supply chain.

3. Methodology

3.1 OverviewThe DMF methodology is used by the Asian DevelopmentBank (ADB) (2007) and outlines a systematic way ofanalysing, conceptualising, designing, implementing,monitoring and evaluating development assistance projects.This methodology is a form of logical framework or LogFrameapproach (LFA), which was developed in 1969 for the USAgency for International Development to assist in theevaluation of technical assistance projects (Rosenberg andPosner, 1979). Since then, its use by a wide range ofdevelopment organisations – across the world – and hascaused it to be considered almost the aid industry standardtool for project management (Crawford and Bryce, 2003).

The LFA is a set of interlocking concepts used together in adynamic approach to develop a well-designed, objectivelydescribed and evaluable project (Rosenberg and Posner,1979). Over time, the LFA has evolved from a simple frameworkfor structuring project objectives and summarising agreementsabout project design (Sartorius, 1991) into a more sophisticated,process-orientated approach. For example, for a long time, theLFA approach was generally applied by international agencieswithout the participation of stakeholders: “by technocratsworking within the comfort of their offices without regard toreal community needs” (Sartorius, 1991, p. 143). In contrast,the key to many current applications of the LFA is itsparticipatory approach, involving a wide range of stakeholders,for consensus building within the project. Although the LFA isunderstood and applied in a multiple of ways acrossinstitutions (Bakewell and Garbutt, 2005), the fundamentalstructure and purpose of the LFA has remained unchangedsince the original conception of the methodology in 1969(Crawford and Bryce, 2003). The DMF methodology, onwhich this paper focuses, is a form of LFA; the DMFprocesses do not differ significantly, neither do their tools (theLFA matrix and the DMF table).

3.2 The DMF design process and the DMF matrixThe DMF methodology (Asian Development Bank, 2007)can be defined as an analytical, presentational andmanagement tool. The DMF methodology consists of adesign process and a matrix, visualising the results of thisprocess. The aim of the DMF design process is to help tobetter understand the complexity of the issues the project aimsto address, to determine appropriate objectives, and to selectthe most suitable strategy to address the problem. The resultsof the DMF process are displayed within the DMF matrix, a14-frame matrix with four major columns, similar to thelogical framework used by aid agencies.

Key to the DMF design process is its participatoryapproach, involving stakeholders in all four stages of theproject design phase: stakeholder analysis, problem analysis,objectives analysis and alternatives analysis. The stakeholderanalysis aims to shed light on stakeholder interests, theirperception of problems and their available resources toaddress them, as well as their mandates. The problem analysisintends to identify the major problem (commonly referred to

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as the “development problem”) that the project aims toaddress, and the related chains of cause and effect. Thedevelopment and visualisation of these cause–effectrelationships is achieved by means of a problem tree.Subsequently, the problem tree is transformed into anobjectives tree, through an objectives analysis. As a result, the“cause–effect” relationships related to the developmentproblem are transformed into “means–ends” relationships ofthe objectives. Finally, the alternatives analysis aims to developalternative means of achieving the desired objectives to assessthe feasibility of each alternative and to reach an agreementamong stakeholders on the most appropriate strategy. Tosummarise and present the project design in a standardisedmanner, the DMF matrix visualises the results of the DMFdesign process, as illustrated in Table I.

The vertical axis of the matrix presents a hierarchy ofobjectives (first column) and assumptions/risks (last column).It communicates how the project aims to achieve results, byconverting a series of inputs into a set of outputs, which in turnare expected to achieve desired outcomes and contribute to abroader impact (Asian Development Bank, 2007). Theobjectives and assumptions, at each level of the matrix, mustbe necessary and sufficient to bring about achievement at thenext level up. This relationship is known as the “vertical logic”of the matrix. The middle two columns of the matrix form the“horizontal logic”. These list verifiable performance targetsand data sources for each level, to assess progress towards theobjectives and thereby outline the basis for monitoring andassessment of the project.

3.3 LimitationsThe LFA has been subject to notable criticism over the yearsand this has been acknowledged in the literature. For example,while it theoretically provides a framework that encompassesall stages of a project lifecycle, it has proven inadequate forproject monitoring and evaluation. As a result it is, in practice,only used for the project planning process (Bakewell andGarbutt, 2005; Crawford and Bryce, 2003). This limitation isbased on a number of factors, which includes the absence of atime dimension allocated to strategy implementation and thestatic nature of the LFA (Crawford and Bryce, 2003). Relatedto the latter point, however, it has to be noted that themethodology provides the basis for a revision of the LFAthroughout the programme cycle, but in practice, this rarelyhappens (Bakewell and Garbutt, 2005). Despite thesecriticisms, it is considered the best option currently availablefor planning and monitoring development work (Bakewell andGarbutt, 2005) and this explains why a large number ofdevelopment organisations continue to rely upon it.

4. Case studyThe decisions of a variety of actors contribute to therealisation of freight activities within urban and non-urbanareas (Ballantyne et al., 2013). To describe the urban freightpicture in Como, it is hence useful to shed light on some of themain actors involved. This chapter presents three main groupsof actors: receivers (companies that receive goods andservices), carriers/logistics operators (companies that delivergoods and services into the urban area) and local authorities(responsible for implementing freight policies andregulations). It thereby draws on the categorisation used byMuñuzuri et al. (2005), in the context of the actors capable ofimplementing city logistics solutions.

4.1 ReceiversIn Como, there are approximately 1,700 retailers[1], with ahigh concentration in the historical centre. Most of them aresmall (95 per cent), providing goods to the residents of theimmediate neighbourhood[2]. The fragmentation of the retailsystem is a common feature in Italy, in contrast to otherEuropean countries such as Germany, the UK, France andSpain (Danielis et al., 2010). In addition to the retail stores,there are 785 bars, hotels and restaurants[3]. This high overallnumber of commercial premises is also due to the touristicvalue of the city, which is visited by approximately 190,000people each year (2003 data, LIUC Universita Cattaneo,2015). Moreover, there are more than 11,000 local businessesand artisans in Como[4], which may act as receivers, shippersand own-account freight operators. Finally, being the capitalcity of the Province of Como, the city hosts a social servicesinfrastructure, such as a hospital, schools and a university.

4.2 Carriers/logistics operatorsThis category encompasses companies that deliver goods andservices into the urban area. These are generally transportedby private carriers (third-party transport operators), theproducing companies themselves (own-account operators) orby businesses on their own account (Gentile and Vigo,2013)[5]. In Italy, the latter two categories represent animportant segment of urban goods distribution. In fact, theshare of these operators, compared to third-party transportoperators, is 63 per cent in the central area of Milan (Vaghi,2009) and up to 78 per cent, in other Italian cities (Danieliset al., 2010). These services are generally characterised by alower loading factor, suboptimal routing and the use of morepolluting vehicles, compared to third-party operators(Danielis et al., 2010).

It is difficult to clearly depict the actors who deliver goods inComo, due to lack of data. Almost 400 professional freightproviders (own-account or third-party transport operators)

Table I DMF matrix

Design summary Performance targets/indicators Data sources/reporting mechanisms Assumptions/risks

ImpactOutcomeOutputsActivities with milestones Inputs

Source: Asian Development Bank (2007, p. 21)

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can regularly enter the Limited Traffic Zone (LTZ) in thehistorical centre, according to the number of authorisationsissued in 2012 to enter this area[6]. In addition, the CityCouncil released 95 permissions for retailers who haul theirgoods themselves.

4.3 Local authority: regulations and management ofUCCThe third category of main freight actors is local authorities.These are generally interested in assuring an attractive city, forresidents and tourists, as well as in fostering the economicactivity of the city (Harris, 1994). Within this context, localauthorities have the responsibility and possibility to optimiseurban logistics activities through policy and planning, basedon a neutral relationship with all stakeholders (Lindholm,2012b). The initiatives undertaken in this area by the ComoCity Council are interesting, as they reflect well the generalapproach followed by local authorities throughout Italy.

For a long time, transport policies in Italian cities consistedmainly of infrastructure and public transport planning.However, the past two decades have seen an increase in theestablishment of LTZ, pedestrian areas, parking policies andcycling infrastructure (Ministero delle Infrastrutture e deiTrasporti, 2012). In 2010, of the 116 provincial capitals inItaly, 94 cities established an LTZ with similar features[7] andthe total number of LTZs enforced in Italy nears 170.

The LTZ in Como has been operational since the 1970s andcovers the historical centre – in large parts pedestrianised – andrestricts access, parking and the circulation of motorised vehicles.The regulation was issued, and often reviewed, to affirm the“pedestrian priority” concept within the historical centre,which is very important due to the touristic character of thecity. Authorisations for access and parking are available uponrequest, for 19 different vehicle and user categories, amongwhich are three main categories classifying vehicles used forfreight activities. Authorised freight vehicles are allowed toaccess the LTZ area for a maximum of 30 minutes, during oneor two time windows, depending on the category to which theybelong[8]. Hybrid and electric vehicles – introduced in 2014, inthe context of the city logistics project this paper describes – arenot constrained by time windows and are allowed to enter forloading/unloading activities for 30 minutes.

In Italian cities, the same problem of lack of enforcement oftraffic regulations by local authorities can be seen as in Spain,raised by Muñuzuri et al. (2012). In Italy, the legislation doesnot allow the monitoring of vehicles exiting LTZs to protectthe privacy of car and van drivers[9]. A result of this legislationappears to be a concentration of vans entering the LTZ in themorning and staying in the city centre all day, in contraventionof the time window limitations.

Como has tested the establishment of an UCC, following acommon practice in Italian medium-sized cities, since theearly 2000s, to rationalise urban distribution of goods. Forexample, in 2007, public funding supported the establishmentor enlargement of 18 UCC schemes in Italy (Vaghi andPercoco, 2011). Following the concept of the UCC scheme inPadua (“CityPorto”), the municipality of Como established aUCC in 2009 (called “Merci in Centro”) and since then it hasbeen managed by the in-house company “Como ServiziUrbani”. The delivery service runs twice daily and collects

freight from the UCC to distribute to Como, using two hybridvans. The current volumes transported are too low for theservice to be financially viable. Among the reasons for theunsuccessful market uptake of the scheme was the failure toprovide a time window exemption for UCC vehicles, forentrance to the central area. This has now been corrected, in2014.

4.4 Freight activity and major effectsThis section attempts to outline the current picture of freightactivity in Como and its major social and environmentaleffects. Freight activity accounts for 8.5 per cent of the trafficvolume in Como, according to a 2009 traffic count, whichshowed that almost 40,000 motorised vehicles entered andexited the historical centre of Como between 7 a.m. and 10a.m. on an average weekday (Comune di Como, 2012a). Thismeans that during each of these three morning hours, anaverage of 1,100 commercial vehicles entered and left thehistorical centre. Most of the vehicles were vans (85 per cent),followed by lorries (14 per cent).

Transport related activity in Como contributes to severalnegative environmental and social effects – mainly congestion,air pollution and noise. Air pollution in Como is mainly basedon high concentration levels of ozone (O3), PM10 andnitrogen dioxide (NO2). Throughout the past decade, thesepollutants have regularly exceeded the target and limit valuesestablished by the European Directive 2008/50/EC for theprotection of human health (Mondini and De Martini, 2013).The road transport sector contributes significantly to theemission of pollutants in Como and in particular to the criticalvalues of O3, PM10 and NO2. In effect, sector related activitycaused 74 per cent of 2010’s NOx emissions, 40 per cent ofthe precursors for O3 and 29 per cent of PM10[9]. Althoughfreight accounts for less than 10 per cent of total roadtransport volumes in Como, the majority of emissions relatedto transport activity air pollutants are generated bycommercial transport (PM10: 54 per cent, NO2: 69 per cent;precursors of O3: 62 per cent)[9].

Congestion dramatically limits the accessibility to Comoand significantly affects the quality of life of its residents.While there are no available data on congestion levels for thisarea, private transport relies highly on private, motorisedvehicle use (Comune di Como, 2012b) – reflected in the highnumber of registered private vehicles. In 2010, there were 597registered cars per 1,000 residents in Como[10] – slightly lessthan the Italian average, which is one of the highest levels inthe world and second highest among the EU-27 states(European Union, 2013). Congestion problems in Como arealso related to its particular orographic characteristics, whichlimit the physical space to access the city. In fact, the centralpart of the city is situated in a basin, limited by surroundinghills on three sides and by Lake Como.

5. AnalysisThe DMF approach provides the framework for involvingstakeholders in all stages of the design of a project. For theapplication of the DMF to the city logistics project planning inComo, four major events were organised in 2012 and 2013:two half-day workshops, involving a wide range ofstakeholders and two short roundtables, with a few key

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stakeholders. Four facilitators, staff members of a researchinstitute in Milan and the Region of Lombardy, guided theconsultation process. A range of local freight stakeholdersattended the two half-day workshops, held in October 2012and February 2013, in Como. The following Table II providesan overview of the content of the stakeholder consultationevents.

“Freight stakeholders” includes all individuals, groups,organisations, institutions and companies that have an interestin the system of urban freight (Ballantyne et al., 2013). InComo, the following categories of freight stakeholder attendedthe DMF workshops: local and regional public authorities;associations representing local businesses and retailers;associations representing freight operators; scientific bodies;the operator of the UCC scheme in Como; and anenvironmental organisation (refer to Appendix 1 for thecomplete list of participating organisations).

5.1 Stakeholder analysisFollowing the Asian Development Bank (2007) methodology,the project design process starts with a stakeholder analysis.This helps to clarify which people and organisations aredirectly or indirectly involved in, or affected by, a specificproblem and which groups are supportive of the projectstrategy and which oppose it and, subsequently, obstructproject implementation (Asian Development Bank, 2007).

Initially, each stakeholder filled out an input form to statetheir interests and perceived problems regarding freighttransport in Como, the resources they would put forth insupport or in opposition to the project, and their mandates.The DMF facilitators then divided the stakeholders randomlyinto three groups and each stakeholder presented theirtemplate within these groups under the guidance of afacilitator. Subsequently, the facilitators summarised, to theplenary, the main elements which had emerged during thestakeholder analysis. The following main interests emerged:● To promote environmentally, socially and economically

sustainable urban freight transport in Como with a focuson reduced air pollution, congestion and traffic volumes.

● To improve the existing UCC service “Merci in Centro”and to increase its financial viability.

● To promote the development of innovative vehicletechnologies.

● To satisfy the requirements for an effective provision ofurgent maintenance services within the LTZ.

In summary, while the priorities of interests differed amongsome of the stakeholders, a broad consensus emergedregarding the need to increase the efficiency and sustainabilityof the current urban freight system.

5.2 Problem analysis and problem treeThe problem analysis is the second diagnostic tool applied inthe DMF situation analysis, after the stakeholder analysis. It isapplied to analyse the existing situation surrounding a givenproblem context, to identify the major related problems andconstraints associated with the problem and to visualise thecause–effect relationship in a diagram, which is referred to asthe “problem tree” (Asian Development Bank, 2007).

To create an environment that encouraged the discussion ofproblems, the facilitators created groups of stakeholders withsimilar background and knowledge levels: public authorities,transport sector, retailers and artisans and local researchinstitutes. Before starting the group work, the DMFfacilitators explained the working steps necessary fordeveloping the problem analysis. First, they proposed a majorproblem that the project aimed to address (“The freighttransport system in Como is not efficient and sustainable”)and then asked for the consensus of the stakeholders. Once allstakeholders had accepted the proposed issue and the problemwas written on a flipchart, the breakdown of its causes andeffects began. To start with, the facilitators proposed thefollowing five related issues associated with the majorproblem, based on the feedback from the stakeholder analysis:1 obsolescence of the freight vehicle fleet.2 suboptimal rules regarding loading/unloading activities

within the LTZ.3 fragmented demand.4 orography (characterised by its position in a converging

valley and at Lake Como); and5 congestion.

For each of the five problems, the four stakeholder groups hadthe task of analysing the causes and sub-causes. Furthermore,the facilitators invited the groups to think of additionalproblems – directly linked to the major problem – that had notyet been mentioned by the facilitators. The stakeholders wrotedown, on post-it notes, all causes that emerged during thediscussions. Subsequently, the facilitators presented eachpost-it note to the plenary and allocated them to one of five A4sheets on a flip chart, pinned underneath the major problemand representing one of the five problem categories. Theseresults formed the fundamental basis for the facilitators todevelop a problem tree, thereby deciding on the relationshipsand hierarchies of the problems. Few effects had emergedduring the DMF problem analysis because the discussion hadfocused on the causes of the major problem, rather than itseffects. Figure 1 illustrates the final problem tree on freightissues in Como, which emerged from the DMF problemanalysis.

To illustrate the problem tree, consider the cause– effectchains related to a low load factor. In Como, this resultsfrom a highly fragmented demand for freight, on the onehand, and a highly fragmented supply, on the other.Fragmented demand is related to the customers’expectation of just-in-time deliveries, together withinsufficient storage room. Heterogeneity of the openinghours of commercial premises also contributes to a highlyfragmented demand. In addition, even though there exists aUCC service in Como that enables a consolidation ofdeliveries, receivers of goods decline to use this service. TheUCC service is perceived as costly, as they are unaware of

Table II DMF process and matrix in Como

Analytical andplanning process

Stakeholder analysisProblem analysis

First workshop andfollow-up round tables

Objectives analysis Not appliedAlternatives analysis Second workshop

DMF matrix Desk analysis

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the benefits of receiving consolidated deliveries, rather thanmultiple deliveries per day. On the other hand, highlyfragmented supply is due to the existence of a multitude oftransport companies that organise their transportoperations individually. This, in turn, is caused by theirinability to perceive the benefits of collaboration. Noinformation exchange platform exists to facilitatecollaboration among companies, who have insufficientknowledge about the cost structure of the urban supplychain. The existing possibility to bundle last mile deliveries,by using the service offered by “Merci in Centro”, is simplynot attractive to them, mostly for perceived cost reasons.

One work group of three key freight actors could not getinvolved in the problem analysis process; this included therepresentatives of the in-house company operating “Merciin Centro” and two associations representing freightoperators. Instead, they led an open discussion, guided byone facilitator. The outcomes of the discussion were usefulfor the project’s purpose because some consensus wasreached. In particular, the representative of the associationrepresenting freight forwarders acknowledged the need fortraffic regulations, such as the LTZ, as a means ofpreserving the attractiveness of the city for citizens, touristsand businesses. Moreover, he was generally in favour of aUCC service, but highlighted the burden of additional costsand time for the transport operators, in using this service.He argued that it could only become attractive if the pricewere to decrease substantially, in which case he would alsosupport stricter LTZ regulations to foster thecompetitiveness of the UCC service.

In addition to the first stakeholder workshop, two additionalroundtables were organised, with key stakeholders such as thelocal authority, the UCC service provider, freight receiversand transport operators, to clarify, confirm and further explorethe results, especially regarding problems and possiblesolutions for revitalisation of the UCC and regarding theneeds of receivers and private transport operators. Of note isthat these processes included both political parties in power atthe time.

5.3 Objectives and alternatives analysisThe objectives and alternatives analysis specifies the desiredfuture situation and is referred to as the project identificationphase (Asian Development Bank, 2007). Within the objectivesanalysis, the problems captured in the problem tree aretransformed into objectives, visualised in a diagram called the“objectives tree”. For the city logistics project in Como, thisstep was not carried out with the participation of stakeholders,due to time constraints. Instead, the facilitators subsequentlydeveloped the main objective the project aims to address.Following the Asian Development Bank (2007) process, thiswas simply done by reformulating the major problem at thehighest level of the problem tree into a positive desirableobjective. The main objective hence became: “Freighttransport in Como is sustainable and efficient”. This wasintroduced at the second stakeholder workshop, where thefacilitators illustrated the main positive effects whileconsidering the different points of view of the stakeholders.However, the main focus of the second workshop was thedevelopment of an alternatives analysis. This analysis was

constrained to the available alternatives within the citylogistics project in Como, focusing in particular on fine-tuningthe following elements:● The re-launch of the UCC in Como (“Merci in Centro”)● Adapting the LTZ regulations to support the UCC.

It should be noted, however, that the interest and suitability ofthese two elements to address the urban freight issues inComo clearly emerged during the stakeholder and problemanalysis. In particular, the re-launch of the existing UCCcentre, as well as the revision of the current LTZ rules, foundbroad interest, as illustrated in Section 5.2.

In addition to the two city logistics elements discussedduring the alternatives analysis, the project includes theimplementation of a third element, related to the deploymentof environmentally friendly vehicles (full electric vehicles) todeliver goods from the UCC to Como town centre, supportedby the use of innovative routing devices to facilitate efficientdelivery and trip planning. This technology element of theproject was presented to the stakeholders during the secondworkshop.

The alternatives analysis was undertaken with the help of aquestionnaire containing 13 major questions regarding theorganisation of the future UCC service and the access rules tothe city centre. These questions included: the location of theUCC, the kind of goods the UCC service should focus on andwhether UCC vehicles should be exempt from the LTZregulations. As stated above, the alternatives analysis focusedon fine-tuning the strategy, rather than being open todeveloping a range of alternatives, as suggested by the AsianDevelopment Bank (2007). In summary, the following threesteps were carried out during the consultation process:1 Stakeholders individually filled in the questionnaires.2 First round of discussion for consensus finding, within

four groups of stakeholders.3 Second round of discussion for consensus finding, within

the plenary.

Regarding the second point listed above, the group of 16stakeholders was divided into four groups. The groups wereformed with the aim of establishing heterogeneity; however,some key stakeholders were put together in one group.Within the groups, each stakeholder had the opportunity topresent their answers to the questions. The aim was to agreeon a common position for each of the questions, within thegroup. In the case of diverging answers, the facilitatorguided the discussion to find an agreement among thestakeholders. Point 3 was aimed at building a consensusamong all stakeholders. To do this, the facilitators who ledthe group discussions presented the answers of each of thefour groups to the plenary. During the presentation, onefacilitator summarised and documented the answers, in realtime, on a slide. For any diverging positions, the facilitatorstried to find a consensus among the whole group and theslide was accordingly adapted. As a result, the slidepresented the main outcomes of the alternatives analysis,upon which all stakeholders agreed, including thefollowing:● The range of services that should be offered by the UCC service:

Stakeholders desired a delivery and collection/pick-up

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service. It should be checked if a storage area forshopkeepers could be made available at the UCC.

● Last mile delivery price: Some stakeholders estimated€2.50-3.00/100 kg as a suitable and competitive market price.

● Stakeholders agreed in principle to extend the geographicarea of the LTZ, but gradually and only after consultationwith shopkeepers.

● Stakeholders agreed in principle to exempt “Merci inCentro” ecological vehicles from the LTZ ordinance.

The results obtained were the starting point to define furtherthe Como city logistics project, as they reflected thestakeholder consensus regarding the regulatory issues of theLTZ and the design of the UCC delivery service.

5.4 Completing the DMF matrixThe DMF matrix, which illustrates the results of the DMFprocess, was produced by the facilitators after the end of thestakeholder consultation. It is presented in Appendix 2.

First of all, the facilitators identified the expected impact,starting from the results of the problem analysis. The mainproblem had been transformed into an objective thatbecame the main focus for the actions to be implemented.Following this approach, the main impact identified wasdefined as follows: “The urban freight delivery system inComo will become efficient and sustainable”. This willresult in both a decrease in the number of freight vehicles inthe city centre and an increase in the number oflow-emission freight vehicles.

The expected outcomes of the project draw on the resultsof the alternatives analysis. Accordingly, they focus on twomain levels: first, the implementation of regulations andincentive measures at Municipality level (namely, theadaptation of LTZ regulation) and, secondly, fostering thetake up of the “Merci in Centro” UCC initiative. Envisagedactions should bring the approval and enforcement of newregulations, followed by an increase in the number ofdeliveries by the UCC service.

The specific outputs generated within the project consist ofthe use of environmentally friendly vehicles for urban freightdeliveries, the set up of a regulation fostering an efficientdelivery pattern, higher reliability, economic efficiency anduser responsiveness to the “Merci in Centro” service.Therefore, according to the results of the consultation process,the project will generate the following tangible results: a fieldtest of sustainable, technologically innovative solutions(electric vehicle plus ICT solution), a range of approvedmeasures integrating the existing regulation dedicated tofreight transport and a new business model including a higherlevel of commitment by stakeholders to the “Merci in Centro”initiative.

The approach helped to sketch a roadmap of activities andmilestones representing the basis for the definition andimplementation of the required actions, which include apreparation and design phase, testing and review andconsultation activities, to reach the goals set within the DMFprocess. Moreover, the DMF matrix reported the results ofthe analysis on assumptions and related risks to be monitoredduring the development of the actions.

5.5 Results and conclusions of the DMF process inComoThe DMF design process applied to the city logistics project inComo involved a wide range of local stakeholders directly orindirectly responsible for and/or affected by freight traffic.This appears to have brought several advantages: first, thedesign of the project can draw on the knowledge and creativityof the stakeholders that otherwise would not be accessible.Moreover, the implementation of the city logistics projectbuilds on the consensus achieved among the stakeholders,making its success more likely.

To summarise the main results obtained by the DMFdesign process, it can first be stated that, while the prioritiesof interests differed among stakeholder groups, a wideconsensus emerged, during the stakeholder analysis, tofoster a more environmentally friendly and efficient urbanfreight transport system. Secondly, the DMF problemanalysis revealed a series of problems linked to the currenturban freight system, ranging from environmental,inefficiency and safety concerns to an insufficient quality ofservice of freight deliveries from the point of view of thereceivers. Finally, the alternatives analysis led to consensusbuilding regarding a series of elements, which will beimplemented or considered in the context of the citylogistics project in Como.

The facilitators made several modifications from theoriginal DMF process to fit the methodology to the specificcontext. Related to the problem analysis, they proposed amajor problem to the stakeholders, rather than developing ittogether with the stakeholders. This made sense because theproject objective was already predefined and the DMFapproach served primarily to fine-tune and build consensus forthe project elements. In fact, the problem proposed closelyresembled that which emerged anyway, during the stakeholderanalysis. Subsequently, the facilitators proposed severalproblems (related to the major problem) for which thestakeholders were asked to develop the causes and sub-causes.This approach risked that the problem analysis would beaffected and shifted in a specific direction. However, this wasmitigated by including a wide range of stakeholders. Asdifferent disciplines need to work together and define oneproject plan, the risk of moving in one particular direction issignificantly decreased. Finally, the objectives analysis was notcarried out mainly because it was unlikely to be able to provideuseful insights for the planning of a project where the types ofinterventions (set up of a UCC, LTZ regulations, etc.) werealready predefined.

The commitment of local freight stakeholders in attendingthe stakeholder events and in contributing to the projectdesign process was high. This is clearly illustrated by the largerange of stakeholders who attended both workshops andround tables (see Appendix 1 for a list of organisations andindividuals involved), their acceptance of the DMFmethodology and the quantity and quality of the contributionsthey put forward. A few key actors did not accept theinvitation to the workshops. In particular, local authoritiesfrom towns and cities around Como and a few major transportoperators, such as the Italian Post, were not interested inparticipating.

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Three factors favoured the high level of commitment fromlocal freight stakeholders. First, they perceived the project asbeing able to deliver long-lasting outcomes related to theurban freight system. This perception is based on the strongpolitical support for the project, shown by the Como CityCouncil. In particular, several Councillors and senior staffmembers of the local authority attended the stakeholderevents to prepare the DMF framework. In addition, the localauthority guaranteed financial resources for the local UCCservice (“Merci in Centro”) and the modification of thecurrent LTZ ordinance. Secondly, neutral facilitators

guaranteed the involvement of a diversity of stakeholders withdifferent and sometimes opposing interests. This is different tothe traditional urban freight planning process, which is usuallyguided by local authorities, as they have the responsibility andcompetencies to implement urban freight measures. If thelocal authority in Como had assumed the facilitator role, it isbelieved that the commitment of some stakeholder groupswould have been less, in particular those who do not feelrepresented by the current local government, or who feeldisappointed by previous initiatives put forward by the citycouncil. Thirdly, stakeholders agreed that there is an urgent

Table III Strengths, challenges and weaknesses of the DMF applied in Como

Issue Potential strengths Challenges Weaknesses

Vertical Logic Provides logical link between means andends related to a hierarchy of objectives

To achieve consensus on objectivesamong different stakeholders

Assumption of vertical logic is simplisticbecause reality is far more complex

Increases the accountability of projectsby producing visible impacts and bydefining a clear set of expectations ofwhat the work should achieve

Failure to capture unanticipatedobjectives. This is especially a problemwhen the DMF is applied to projectevaluation

Horizontal Logic Ensures consideration of appropriateindicators and takes account of the risksand assumptions

To identify meaningful and measurableindicators, especially for the higher-level objectives

Emphasis on objectives that are easierobservable and measurable, rather thanon more qualitative objectives such asfor example improvement in the qualityof life

To identify indicators for impactassessment that reliably link the workof the project to the progress towardsits goals, since many other factors maycome into play

Format andapplication

Provides the basis for the monitoringand evaluation systemProvides a formal procedure for planningprojects and provides a framework tocarefully think through the project

Requires training session and supportto ensure that facilitators can apply theapproach. For this city logistics project,a training session of half-day preparedthe facilitatorsRequires investment in time andresources to go through the DMFprocess

Provides a thinking tool, which allowsflexible application. For example, it doesnot require that stakeholder participatewithin all steps involved and some stepsmay be applied in a reduced form

To revise the DMF matrix during theproject implementation. This mayresult in difficulty, e.g. because thestakeholder agreement on the projectmay act as a lock-in of solutions

Participatory approach enablesincorporation of different views, creatingstrong commitment among actors anddisseminating the project successfully tothe local community

To put the participatory approach intopractice e.g.:

Need to involve a wide range ofstakeholders who must be willing toinvest significant time to go throughthe DMFDifficult to involve stakeholders whoare opposed to changes to thecurrent system or who do notexpect benefits from the projectsRisk that not all stakeholders arelistened to equally

Difficult to make further revisions asthe project continues if there has beena high initial investment in theconsensus finding process, as anyrevision may be felt as undermining theconsensus

Provides a summary of the key elementsof a project in a consistent and coherentway

Matrix represents a simplification of theDMF process. Risk that some interestingdetails may be left out because they donot fit the matrixEnables comparison of city logistics

projects in terms of their contents andfor evaluation

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need for action to improve the current urban supply chain inComo and, therefore, were motivated to participate in theproject.

As a final remark regarding the use of the DMF process inthe context of urban freight planning, it is highlighted that theresults obtained from the stakeholder consultation should beintegrated with desk based and empirical research, such astraffic counts. This is necessary to verify the problemsperceived by stakeholders and to obtain a morecomprehensive picture of the urban freight system. In thiscontext, it is helpful to invite stakeholders, during theworkshop, to indicate data sources that may back up theirperceived problems.

5.6 Project implementationThe interventions that emerged from the DMF process wereapplied to fine-tuning a city logistics project in Como. Thisresulted in a two-week trial, in May 2014, during which fourelements were tested in parallel: a modified UCC, changes tothe access rules of the LTZ, a new routing system adapted toelectric vehicles and the use of a battery electric van –including a new profiler giving information on the batterycharge level expected on different routes. The aim of the trialwas to obtain a clearer idea on the outcomes of the logisticsproject. In particular, it aimed to assess the magnitude of thecosts and benefits for customers to quantify impacts (forexample, in terms of external costs) and to attribute thebenefits by stakeholder. Following the trial, the main elementsof the city logistics interventions remain in place. Specifically,the modified UCC and the changes to the LTZ access rulesare to be made permanent.

6. Conclusion and directions for further researchThe importance of a decision-making framework to facilitatemeaningful interaction among urban freight stakeholders washighlighted in the literature, to help local authorities inmanaging urban freight (Ballantyne and Lindholm, 2014;Ballantyne et al., 2013; Lindholm and Blinge, 2014;Lindholm, 2013). To address the gap in the literature, thispaper illustrates a LFA methodology, as applied to urbanfreight stakeholder engagement, in promoting a sustainableurban supply chain. The adoption of the DMF approachresulted in a structured consultation process, with urbanfreight stakeholders, to address city logistics challenges inComo, Italy.

This paper offers some new insights with regard tomanaging urban freight, which allows the city authority,receivers, carriers and other local freight stakeholders toinclude their aspirations from the beginning of the cityfreight planning process, despite their differences inpriorities. Referring to the LFA literature, such as Bakewelland Garbutt (2005), lessons learned from the urban freightstakeholder consultation in Como point to both strengthsand weaknesses of the applied DMF approach. These canbe seen in Table III.

The DMF process in Como allowed a structuredconsultation process to introduce a demonstration of aninitiative aimed at increasing the sustainability of the urbansupply chain. Of course, the final evaluation of success orfailure of the project still depends on many aspects that will

emerge over the course of several years from the time when theconsultation process took place. It is certain, however, that theDMF process led to a city logistics project that was based onthe consensus of the freight actors and stakeholders involved.Specifically, they committed to increasing the sustainabilityand efficiency of the urban freight system by introducing threecity logistics elements: a change to the regulations related tothe LTZ, the use of the (revised) UCC and hybrid electrictruck adoption. Their acceptance and commitment regardingthese elements is, in turn, very helpful for the success of a citylogistics project. With regard to the UCC in Como, this aspectis clear, as the stakeholders – in particular, the receivers andtransport operators – are the potential clients of the UCC.

A city logistics project was developed via the DMFapproach, based on the consensus of a range of stakeholders,which can be easily assessed and monitored. It will thussupport the local authorities in promoting eco-efficiencyinnovations, as part of their sustainable city strategy – much inthe same way that the private sector (Rossi et al., 2013) isaddressing the sustainable supply chains agenda. Furtherresearch is needed to compare the DMF approach withcommon or other types of public consultation processes thatdiscuss eco-efficiency innovation. A cross-sector examination(e.g. health, education and military) would improve therichness of the findings of this study. Review of this studythrough the lens of institutional theory that exhibits“coercive”, “mimetic” and “normative” pressures withinorganisations (Kauppi, 2013; Moxham and Kauppi, 2014)would also broaden understanding of the ways that sustainableurban supply chains can be progressed to influence cityinstitutional framework adoption and to contest a new theoryfrom this case study research.

Notes1 2013 data (ASR Lombardia), available at www.asr-

lombardia.it/ASR/i-comuni-della-lombardia/commercio-interno/ (accessed 5 April 2014).

2 2013 data (ASR Lombardia), available at www.asr-lombardia.it/ASR/i-comuni-della-lombardia/commercio-interno/commercio-al-dettaglio-in-sede-fissa/tavole/90006/(accessed 5 April 2014).

3 2013 data (ASR Lombardia), available at www.asr-lombardia.it/ASR/i-comuni-della-lombardia/imprese/imprese-registrate-nelle-cciaa/tavole/13556/ (accessed 5April 2014).

4 2012 data (ASR Lombardia), available at www.asr-lombardia.it/ASR/i-comuni-della-lombardia/artigianato/imprese-artigiane-registrate-nelle-cciaa/tavole/90001/and www.asr-lombardia.it/ASR/i-comuni-della-lombardia/imprese/imprese-registrate-nelle-cciaa/tavole/13556/ (accessed 5 April 2014).

5 In Italy, transport on own account is defined as deliveringgoods with vehicles of the company, which is also theproducer or seller of these goods. Third-party transportoperators provide delivery services on behalf of anothercompany.

6 A specific geographical area within the urban area wherethe access and circulation of vehicles is restricted.

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7 2012 data (Istat), available at www.istat.it/it/archivio/65969(accessed 5 April 2014).

8 The ordinance distinguishes mainly among vehicles forself-provision of businesses, own-account operators andcarriers and postal services and express couriers. Vehiclesfor self-provision of commercial premises are authorisedto enter for loading/unloading for 30 minutes duringone-time window. Own-account operators as well ascarriers are allowed to enter during two-time windows.The third category encounters the most favourableconditions with two extended time windows duringwhich they are authorised to enter for 30 minutes, whichis considered as a situation where de facto no timewindows exists.

9 Presidential Decree n.250, 22/06/1999.

10 2012 data (Istat), available at: www.istat.it/it/archivio/96516(accessed 5 April 2014).

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Appendix 1The DMF design process in Como involved the followinglocal stakeholder associations and public institutions:1 Local and regional public authorities:

● Councillors and senior staff members of the City ofComo, representing the Department of Environment,the Department of Transport and Infrastructures andthe Department of Industry and Commerce.

● Staff members of the Region of Lombardy, representing theDepartment of General Infrastructures.

2 Receivers and shippers:● Chamber of Commerce Como.● Confcommercio Como (National Association representing

shopkeepers and businesses).● Confederazione Nazionale dell’Artigianato e della Piccola e

Media Impresa Como. (National Confederation ofArtisans and small- and medium-sized enterprises).

● Confesercenti Como (Association representing small andmedium-sized enterprises in the sectors of trade, services,crafts and industry).

● Local shopkeepers.

3 Forwarders and providers of maintenance services:● Associazione Piccole e Medie Imprese Como

(Association of small and medium-sized enterprises.During the project workshops the Associationrepresented mainly small enterprises providingmaintenance services).

● Associazione Lombarda Spedizionieri e Autotrasportatori(Road Haulage and Shippers Association of Lombardy).

4 Local public transport provider: ASF Autolinee.5 Local scientific bodies:

● Parco Scientifico Tecnologico Comonext.● Fondazione Politecnico.● Universita di Insubria.

6 Urban consolidation service provider in Como: Como ServiziUrbani (in-house company of the local authorities CSU).

7 Environmental organisation: Legambiente Como.

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Appendix 2

Table AI Completed DMF Matrix

Design summary Performance targets/indicators Data sources/reporting mechanisms Assumptions and risks

ImpactsUrban freight delivery system in Comowill become more efficient andsustainable

Decrease of number of freightvehicles in the city centre (%)

Access restrictions monitoring system(municipality)

A: Regulation will be effectively enforced onthe street

Increase the number of lowemissions freight vehicles in thecity centre (%)

Public register of vehicles R: Adaptation of main operators to new limits(e.g. low emission fleets), negatively affectingcongestion (but positive impact onenvironment)

OutcomesImplementation of updatedmunicipality vehicle access regulationsand incentive measures for sustainabletransport solutions

Approval and enforcement of newregulation

Municipality regulations A: Results from drive tests will bringknowledge on most suitable technology to beadopted

Policy reports on enforcement (ifavailable, otherwise direct data)

A: New regulation fostering the take up ofcity logistics initiatives

CSU – Merci in Centro performancereports (if available, otherwise direct data)

R: Lack of acceptance of regulatory measures

The uptake of Merci in Centro UCCinitiative (will improve sustainability ofurban freight delivery system by using(hybrid-) electric freight vehicles)

Increase in the number ofdeliveries by Merci in Centro

CSU – Merci in Centro performancereports

A: New business model incorporating qualityissues and effective pricing strategiesR: Lack of commitment of forwarders andother stakeholders in delivering via Merci inCentroR: Infrastructural costs for enforcement notsustainable for municipality

OutputsEnvironmentally friendly vehicle fleetsare performing urban freight deliveries

Demonstration of electric vehicleand ICT solutions within theMerci in Centro initiative

Smartfusion project outputs (deliverables) A: Test activities will be successfullyperformed and provide consistent data for theevaluation of benefits and highlights possiblecriticalities

Official publications of the measures R: Policy commitment changes on regulatoryissuesCommercial reports of the UCC

Regulation of access in the city centreis fostering a rational and sustainabledelivery pattern

Number of accepted measuresdedicated to freight transportsupporting Merci in Centro andlow emissions vehicles

Smartfusion project outputs (deliverables) A: The consultation process providesinformation for the development of measuresand incentives which are coherent withmunicipality objectives

Official publications of the measures R: Policy commitment changes on regulatoryissues

The service provided by Merci inCentro becomes more reliable; moreeconomically efficient (and with higherload factor); and more responsive touser needs

Demonstration of efficiency forelectric vehicle and ICT solutionswithin the Merci in Centroinitiative (in terms of loadefficiency–kg/day, on-timedeliveries rate of success, andcost)

Smartfusion project outputs (deliverables) A: Test activities will be successfullyperformed and provide consistent data for theevaluation of benefits and highlights possiblecriticalities

New business model includinghigher level of commitment bystakeholders for the Merci inCentro initiative

Commercial reports of the consolidationcentre

A: The consultation and business planningactivities generate a feasible developmentpath for market conditionsR: Changes in the strategy of supporting theMerci in Centro initiative by the municipality

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About the authors

Ines Österle is currently based at the Institute of Transportand Logistics Studies (ITLS), The University of SydneyBusiness School. She is also part of the infrastructure advisoryteam at Deloitte Touche Tohmatsu in Sydney, Australia.Previously she worked as a researcher at Gruppo CLAS andthe Centre for Research on Regional Economics, Transportand Tourism (CERTeT), University Bocconi in Milan, Italy.It was during her time at Gruppo CLAS that Ines was involvedin the city logistics project Smartfusion that is basis of thisarticle. Ines Österle is the corresponding author and can becontacted at: i.osterle@econ.usyd.edu.au

Paulus T. Aditjandra is a Research Associate in the Freight& Logistics Research Group at NewRail – Newcastle Centrefor Railway Research, School of Mechanical and SystemsEngineering, Newcastle University, UK. He was previously aResearch Fellow at the Centre for Transport Research (CTR),School of Geosciences, University of Aberdeen. He obtainedhis PhD from Transport Operations Research Group(TORG), School of Civil Engineering and Geosciences,Newcastle University, in the area of urban form impact ontravel behaviour. His work has been previously published inTransport Policy, Research in Transportation Business andManagement, Transportation Research Part A, IET IntelligentTransport Systems, Projections: MIT Journal of Planning andTransportation Research Record.

Carlo Vaghi is Scientific Director of FIT Consulting srl. Hegraduated in Economics and Social Sciences (1998) fromBocconi University (Milan-Italy), he did his Master’s inEconomics and Management of Transport Enterprises (LIUCUniversity). From 1999 to 2014, he was Project Manager andResearcher in the field of Applied Economics and ProjectManager in the field of Transport Economics for GruppoCLAS and CERTeT-Bocconi University in Milan (Italy). He

is an Advisor for ERRAC Freight Transport Group. He isresponsible for the participation of Gruppo CLAS in SPIDERPLUS, SMARTFUSION, SPECTRUM, SUSTRAIL,BESTFACT and MARATHON Projects (FP7). He hasparticipated in several R&D projects in the field of transporteconomics funded by the European Commission within 5th,6th and 7th Framework Programmes, Marco Polo andInterreg Programmes. He is also teacher in the Master course“MEMIT” (Economics and Management of Transport,Logistics and Infrastructure) at Bocconi University, Milan.The main specialisation topics within the broader field oftransport economics are intermodal and rail freight transport,urban logistics, methodologies for financial and economicevaluation of infrastructure projects (financial, cost–benefitand multi-criteria analysis).

Gabriele Grea is a Lecturer at the Centre for Research onRegional Economics, Transport and Tourism, UniversityBocconi, Milan, Italy. He was involved in the city logisticsproject in Como as a facilitator of the stakeholder workshops.

Thomas H. Zunder is a Principal Research Associate andManager of the Freight & Logistics Research Group atNewRail – Newcastle Centre for Railway Research, School ofMechanical and Systems Engineering, Newcastle University,UK. Before joining academia, Tom had over two decadesexperience in supply chain management, primarily logistics,procurement and distribution, in heavy engineering industry.His work has been previously published in InternationalJournal of Urban Sciences, European Transport Research Review,Research in Transportation Business and Management, Researchin Transport Economics, Benchmarking: an International Journal,Transport policy, Transport Problems, Transport Research Record,Journal of Transport Literature, International Journal of AppliedLogistics, European Transport\Trasporti Europei.

For instructions on how to order reprints of this article, please visit our website:www.emeraldgrouppublishing.com/licensing/reprints.htmOr contact us for further details: permissions@emeraldinsight.com

Table AI

Activities Inputs

Output 1: Environmentally friendly vehicle fleets are performing urban freight deliveriesActivity 1.1: Definition of tools and system for the experimentation (Jan 2013-Dec 2013)Activity 1.2: Set up of test activities (Sep 2012-Sep 2013)Activity 1.3: Experiment on freight delivery with electric vehicles and enhanced ICT systems (2014)

Output 2: Regulation of access in the city centre is fostering a rational and sustainable delivery patternActivity 2.1: Consultation and workshops for the definition of measures for urban freight delivery (Nov 2012-March2013)Activity 2.2: Review and adapt the access restriction regulation to foster environmentally friendly delivery (March 2013-Dec 2013)

Output 3: The service provided by Merci in Centro becomes more reliable economically efficient (and with higher load factor) andrespondent to user needsActivity 3.1: Consultation and business planning activities to foster the Merci in Centro take up (Nov 2012-June 2013)Activity 3.2: Restructure activities of Merci in Centro initiative in order to improve its effectiveness and maximise its impact on thesystem in terms of sustainability (March 2013-2014)

EC, Green Cars Initiative financingBy project partners (staff, resources,infrastructure)By Comune di Como (political discussion) withinputs from project partners (RegioneLombardia, Gruppo Clas)By Comune di Como and CSU (manager ofMerci in Centro initiative) with inputs fromother Smartfusion project partners (RegioneLombardia, Gruppo Clas) and otherstakeholders (AICAI, forwarders, etc.)

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