Edinburgh Napier University

  Much research and EU research funding has been devoted to identifying the key factors that lead to a financially sustainable urban freight consolidation centre. Despite much ‘success’ with this at the academic level, to date no EU funded pilot has survived beyond the project termination date. This paper takes a critical overview of the whole area of urban freight consolidation centres, and in doing so identifies the key areas where the economics of the market and operation are found to be particularly challenging. A case study is then undertaken of a cycle logistic provider in Glasgow, which firstly through licensing and now franchising, is part of the wider UK Zedify distribution network of franchises. Key organisational and operational elements within the business are identified, and how these overcome some of the economic issues discussed. Key to success is found in a business model that enhances existing delivery outlets rather than one that attempts to subjugate them. Other key elements are in the structure of the organisation, which as an owner controlled firm provides strong leadership and is established through incremental progression and employee ‘buy-in’ rather than a big bang approach. These principles are supported through strong employee orientated company policies and adherence to ethically sound business practices with a very strong sense of corporate social responsibility. In many ways, the successful business model could be said to be more an extension of community economic development principles, i.e. 3rd sector organisations, rather than capitalist orientated enterprise. Therein however lies the biggest challenge, which is how such a model can be developed to a larger scale and hence successfully shift from an owner to a manager controlled firm.