City logistics network as a mechanism for increasing competitiveness of small business

Dykin Daniil Evgenievich

This research paper aims to analyze the relevance of urban logistics network (ULN) creation, assess the level of necessary investments in building this system and the cost of its services. ULN is supposed to support small businesses involved in the Internet trade of wide assortment of goods. The parameters of the urban logistics network for the city of Moscow are considered. The effectiveness of logistics transportations of products to the final consumer used by small Internet-trading enterprises is examined. Factors and reasons for why goods may not be economically feasible when selling in online stores in Moscow are highlighted. The cost of cargo deliveries was estimated using the ULN system proposed by the author. A brief description of possible capital investments during the creation of the urban logistics network is given. The main competitive advantages that a small business of online retail gains when creating ULN are highlighted. It is concluded than ULN project is effective in increasing the competitiveness of small businesses in the field of Internet commerce. Moreover, it is feasible to use it as a mechanism to support small businesses by the Moscow Government.

Keywords:urban logistics network; logistics; E-commerce; small businesses; Moscow city infrastructure; courier companies