DHL
DHL Express Estonia and Clevon Deliver the Future of Last-Mile Delivery Today
Overview
DHL is the leading global brand in the logistics industry. DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows.
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The Challenge
DHL Express Estonia is committed to minimizing its carbon footprint while ensuring efficiency and improving the customer experience in last-mile operations. Acknowledging the challenges of finding sufficient drivers, the company recognizes the strategic importance of embracing innovation in the autonomous delivery industry. Therefore, DHL Express Estonia has been exploring the deployment of autonomous vehicles on a significant scale to substantially reduce the operational costs associated with last-mile delivery.
Furthermore, DHL Express Estonia has been actively seeking to balance cost, energy efficiency, and weight considerations. By adopting lighter transportation solutions, the company can significantly reduce the energy consumption required for self-transportation. Clevon’s robot weighs only 1170 lbs (530 kg), and its energy consumption in ideal situations is 42 W/h. It was also critical for DHL Express to find solutions that would help the company fulfill its mission to achieve zero-emission logistics by 2050.
The Solution
After evaluating the offerings presented by Clevon, DHL Express Estonia decided to appoint Clevon as its chosen partner for the implementation of commercial last-mile deliveries on the public roads in Tallinn, the capital city of Estonia. In the first phase of the initiative in August 2022, Clevon’s robot, with the CargoBox top application, conducted public road tests delivering DHL Express Estonia’s internal packages between the company’s three offices in Tallinn.
In continuation of the program, 18 commercial customers all over Tallinn volunteered to receive their deliveries with the robot. Clevon also cooperated with the City of Tallinn to deliver DHL packages in the historic Old Town, a UNESCO heritage site with strict entry regulations for regular vans and cars. The all-electric zero-emission delivery solution navigated the urban environments and old town narrow streets and pedestrian areas easily, helping to reduce emissions and noise pollution in the area.
Unlocking the Full Potential
DHL and Clevon recognized the need to evaluate different service models to optimize last-mile services with robot carriers. At first, the robot conducted long-distance deliveries. The teams found this inefficient, as the robot drove a large portion of the route without parcels. This is a known problem for today’s van and man operations.
Driven by a commitment to enhancing efficiency, the partners tested a new middle-mile/last-mile service model that keeps the last-mile delivery route distances within suitable ranges for fast and efficient last-mile deliveries.
The regular DHL van did the middle-mile and transported packages from the depot to the designated meeting point. At the meeting point, the courier seamlessly transferred the packages to Clevon’s robots, who then delivered the last-mile. This dynamic collaboration reduced the kilometers traveled with empty cargo, minimizing wasted resources and increasing overall operational efficiency. The testing continues, and the shared lessons help partners achieve the most efficient model for optimizing costs in last-mile delivery carrier utilization and enhancing service quality and user experience.
The Results
as of 30.09.2023
The outcomes of more than 12 months long service have been outstanding, and the autonomous robot has achieved a lot of benefits for DHL Express Estonia.
Customizable
CLEVON 1 carrier was covered with DHL branding. A yellow color brought much attention and was noticed while traveling on public roads.
Insights
Gathered valuable practical insight into the topics related to the implementation of autonomous robot carriers – regulative as well as business process tweaks, customers’ reactions and expectations, etc. Also, many ways for further improvement and optimization were mapped through the pilot.
The Future Cooperation
The cooperation has grown from a Proof of Concept to a partnership with growing ambitions.
Customer Testimonials
*Net Promoter Score (NPS) is calculated on a scale of 0 to 10 by subtracting the percentage of detractors (below 7) from the
percentage of promoters (9 or 10) based on responses to the question of recommending a product or service, resulting in a score
that ranges from -100 to +100.
Gallery
DHL Express Estonia and Clevon case study
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Overview
- DHL aims for zero-emissions logistics by 2050.
- In 2022, Clevon introduced the next-generation Autonomous Robot Carrier as Europe's first ARC to offer driverless delivery services on public roads.
The Challenge
- DHL seeks innovative solutions to reduce costs and carbon footprint.
- Driver shortage highlights the need for autonomous delivery options.
The Solution
- DHL Express Estonia partnered with Clevon for last-mile deliveries on public roads in the capital of Estonia.
- The more than 12-month-long project has evolved from a Proof of Concept to a partnership with growing ambitions.
- Phase 1: Clevon's robot tested delivering internal packages between DHL offices.
- Phase 2: Partners launched a B2B service. Also, Clevon collaborated with the City of Tallinn to deliver packages in a UNESCO heritage Old Town, reducing emissions and noise pollution.
- Phase 3: Clevon became a regular part of DHL's fleet, delivering B2B and B2C. Using MultiBox enabled carrying multiple clients' packages with one delivery route.
- The partners introduced the specialized "middle-mile/last-mile" model to enhance efficiency. DHL vans were used for the middle mile, and Clevon's robots for last-mile delivery, loading packages onto the carrier en route at city stops. This reduced the kilometers traveled with empty cargo, optimized the vehicle size depending on the needs, minimized wasted resources, and increased overall operational efficiency.
The Results
- 200+ days of operation
- 1200+ parcels delivered
- 4400+ miles (7000+ kilometers) driven in all weather conditions (rain, snow, sun, fog, etc.)
- Zero safety incidents.
- Net Promoter Score 81%
- Energy consumption reduction compared to traditional vans.
- Customizable branding for visibility.
- Gained valuable insights for implementing and optimizing autonomous robots– regulative as well as business process tweaks, customers’ reactions and expectations, etc.