STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA

Last-mile logistics represents a major cost and environmental challenge in dense urban centers, particularly in emerging economies. In Bolivia, where over 92% of retail transactions occur through informal nanostores, urban freight operations to supply these channels are hindered by narrow streets, c...

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Main Authors: Santiago Lima, Agatha da Silva, Evelyn Ágreda, Adriana Pereira
Format: Article
Language:English
Published: Universidad Privada Boliviana 2025-08-01
Series:Investigación & Desarrollo
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Online Access:https://www1.upb.edu/revista-investigacion-desarrollo/index.php/id/article/view/339
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author Santiago Lima
Agatha da Silva
Evelyn Ágreda
Adriana Pereira
author_facet Santiago Lima
Agatha da Silva
Evelyn Ágreda
Adriana Pereira
author_sort Santiago Lima
collection DOAJ
description Last-mile logistics represents a major cost and environmental challenge in dense urban centers, particularly in emerging economies. In Bolivia, where over 92% of retail transactions occur through informal nanostores, urban freight operations to supply these channels are hindered by narrow streets, congestion, and a lack of logistics infrastructure. In this direction, this study explores an optimization strategy for last-mile delivery of consumer-packaged goods (CPGs) to nanostores in downtown Cochabamba. We used a mixed-methods approach, including surveys of 243 stores, interviews with logistics managers, and route modeling with VRP (Vehicle Routing Problem) Spreadsheet Solver.  We considered a cluster-based logistics bay strategy, leveraging abandoned parking bays in the region for this purpose. Results show that the use of designated bays and the proposed route clustering can reduce delivery times by up to 11% and unit costs by 4,7%. These findings inform urban logistics planning and public policy for cities facing similar informal retail challenges.
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institution Kabale University
issn 1814-6333
2518-4431
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publishDate 2025-08-01
publisher Universidad Privada Boliviana
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series Investigación & Desarrollo
spelling doaj-art-907d6d0fcb344f82b4b6072d9f2251ff2025-08-25T14:02:04ZengUniversidad Privada BolivianaInvestigación & Desarrollo1814-63332518-44312025-08-01251779510.23881/idupbo.025.1-7i364STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBASantiago Lima0Agatha da Silva1Evelyn Ágreda2Adriana Pereira3Universidad Privada BolivianaUniversidad Privada BolivianaUniversidad Privada BolivianaUniversidad Privada BolivianaLast-mile logistics represents a major cost and environmental challenge in dense urban centers, particularly in emerging economies. In Bolivia, where over 92% of retail transactions occur through informal nanostores, urban freight operations to supply these channels are hindered by narrow streets, congestion, and a lack of logistics infrastructure. In this direction, this study explores an optimization strategy for last-mile delivery of consumer-packaged goods (CPGs) to nanostores in downtown Cochabamba. We used a mixed-methods approach, including surveys of 243 stores, interviews with logistics managers, and route modeling with VRP (Vehicle Routing Problem) Spreadsheet Solver.  We considered a cluster-based logistics bay strategy, leveraging abandoned parking bays in the region for this purpose. Results show that the use of designated bays and the proposed route clustering can reduce delivery times by up to 11% and unit costs by 4,7%. These findings inform urban logistics planning and public policy for cities facing similar informal retail challenges.https://www1.upb.edu/revista-investigacion-desarrollo/index.php/id/article/view/339last-mile distributiontraditional channelpublic policiesrouting modelbays
spellingShingle Santiago Lima
Agatha da Silva
Evelyn Ágreda
Adriana Pereira
STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA
Investigación & Desarrollo
last-mile distribution
traditional channel
public policies
routing model
bays
title STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA
title_full STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA
title_fullStr STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA
title_full_unstemmed STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA
title_short STUDY OF OPTIMIZATION STRATEGIES FOR LAST-MILE DELIVERY OF CPG PRODUCTS TO NANOSTORES IN THE CITY CENTER OF COCHABAMBA
title_sort study of optimization strategies for last mile delivery of cpg products to nanostores in the city center of cochabamba
topic last-mile distribution
traditional channel
public policies
routing model
bays
url https://www1.upb.edu/revista-investigacion-desarrollo/index.php/id/article/view/339
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