SUSTAINABILITY SOLUTIONS
ON THE ROAD
TO ELECTRIFYING LAST-MILE DELIVERIES
S
ustainability commitments have become a key feature of the business strategies of
most companies. Many retailers have ambitious goals to meet their Net Zero commitments and strategies to achieve them. Delivering these strategies calls for action, which is just what the iconic Scandinavian furniture maker and retailer, IKEA, has put into effect. IKEA has committed to become climate positive by 2030, by reducing more greenhouse gas emissions than its entire value chain emits. Turning this into action includes increasing the use of energy from renewable sources, using more recycled wood in its products, prolonging the life of products through repair and refurbishment, and using recycled materials. In addition, IKEA’s goal to becoming climate positive includes a commitment that all ‘product transports and home deliveries will be zero-emission by 2040 at the latest’.
EV INFRASTRUCTURE In 2023, IKEA UK invested in a new, state-of-the art electric charging infrastructure across its entire UK retail estate of 21 stores and its Dartford customer distribution centres. It has installed 200 new EV chargers, including 40 rapid chargers, making it the biggest charging infrastructure investment for last-mile deliveries in the UK to date. It provides EV charging points for all IKEA’s last-mile delivery fleets, including those of its logistics partners making home deliveries across the UK and Ireland. An EV infrastructure of this size involves far more than simply installing a number of chargers. For electric vehicles, access to power is clearly essential, and the most reliable source of energy is the grid. Retailers looking to install an EV charging infrastructure for their last-mile delivery fleets often face a conflict between their electrification goals and the reality of power availability. A petrol and/or diesel fleet draws fuel from a
dedicated network of fuelling stations that already exists and where there are few competing demands for the fuel outside of vehicles. EVs, of course, draw their power from electricity, from a network that is shared by everyone: residents,
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An increasing number of retailers are looking to turn their sustainability
strategies into action by electrifying their last-mile delivery fleets. Natasha Fry, head of sales at Mer UK, describes how IKEA
tackled the challenge and established one of the largest EV charging infrastructure projects for last-mile deliveries in the UK
businesses, services, and heavy industry. The energy demanded by a fleet of last-mile delivery EVs will ramp up pressure on the network, particularly regional distribution. A critical bottleneck is with the DNO (Distribution Network Operator) who has regional responsibility for distribution. A first-come-first-served approach from consumers can mean retailers face engineering work backlogs. On top of this, a retailers’ fleet manager will need to know how much power the fleet will need now and in the future, so they can grow their fleet as the business
roll-out of last mile EV delivery fleets risks being delayed while budgets are revised upwards. Site surveys at every depot are ideal to gain a proper understanding of what power is currently available, what will be required, how to bridge any gaps by upgrading the site infrastructure, and what that involves. By putting the legwork in upfront, IKEA was able to save time and money further down the line to ensure that its fleet electrification objectives were met at each site. Inevitably, upgrading grid connections comes at a price and takes time. Understanding that in the early stages means you go into it with your eyes open. Some last mile logistics operators will be prepared to increase budgets to meet existing targets, while others might prefer to take a more phased approach starting with ‘low hanging fruit’ for a quick win to prove the concept. Taking a pragmatic approach is essential to gain support in the boardroom for what will be a big undertaking for any business.
HELP IS HERE WITH NEW GUIDE With that complexity in mind, Mer has created a free guide that covers the importance of including each depot’s energy capacity as a metric when setting
grows. This involves understanding how the fleet will recharge and when which, in turn, calls on a whole lot of variables to create the plan.
DATA IS KING To run effective last-mile logistics, data is king. Being armed with the right information on all aspects of EV fleet charging will ensure that plans and decisions are evidence-based. Delivery fleet managers are already data-driven when it comes to identifying which vehicles can be electrified and the best way to optimise these assets. Applying the same analytical approach to the charging infrastructure will make the process more straightforward, and head off costly mistakes. Chiefly, this involves understanding how much power is needed and where it comes from. Without a true understanding of the power
availability at each depot, and the cost implications of any necessary grid upgrades, the
ENERGY & SUSTAINABILITY SOLUTIONS - Spring 2024
fleet electrification targets. It explains how to calculate power availability and the solutions to overcoming grid limitations. It also covers: • Identifying whether fast or rapid chargers will best suit your last mile EV needs • Handling procurement • Getting installation right first time • Minimising charger downtime for mission critical EVs. Mer’s approach has worked for IKEA, DX Logistics and others.
Mer UK
https://uk.mer.eco/
Mer’s guide to EV charging for last mile logistics operators can be downloaded here:
uk.mer.eco/ev-charging-last-mile
www.essmag.co.uk
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