Article | REF: AG8047 V1

Urban Distribution Centers: concept and issues

Author: Philippe BOSSIN

Publication date: September 10, 2017

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5. Reasons for failure

The many failures of CDU ultimately reveal an urban system that is unfavorable to innovation in urban logistics. Players who want to innovate are not encouraged to do so in a "low-cost" sector where, in the end, the service is provided (everyone is delivered) and there is no incentive for virtuous systems.

5.1 A difficult financial balance

The most recent experiences of CDU (Annecy, Saint Étienne, Lyon) have shown the weakness of business models based on an insufficient volume of business generated by a small number of customers.

As soon as one of these customers stops delivering freight to the CDU, the entire financial equilibrium is called into question.

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