The Bicycle logistics ROI tool is designed to assess the operational and financial impact of switching logistics operations from traditional combustion engine or electric vans to cargo bicycles. The primary goal of the tool is to demonstrate to decision-makers whether a clear business case exists for this transition by highlighting specific operational and financial implications.
The tool allows performing a comparative analysis between two distinct operational scenarios:
- Option 1 (business as usual): use of traditional delivery vans (ICE or electric) operating from a central warehouse.
- Option 2 (cargo bike logistics): delivery using cargo bicycles, optionally integrated with a local micro-hub and a feeder vehicle for pre-haulage.
The instrument is built upon a validated cost structure and databases of vehicle specifications and micro-hub types. It operates as a "step-by-step" simulation where users define their specific operational reality, and the tool calculates the resulting fleet requirements and resulting cost flows.
Inputs
The tool allows for high flexibility in defining the operational profile. Key inputs include:
- Operations definition: daily freight volume (kg and m3), number of stops per day, average dwell time, and route characteristics (urban, suburban and motorway distances).
- Asset selection: users can select from a database of vehicles (e.g., vans, various cargo bike types) and micro-hubs (e.g., mobile depot, containerised depot, urban depot).
- Economic assumptions: customisable parameters for wages, fuel/energy prices, leasing rates, depreciation periods and insurance costs.
Outputs
The tool generates a detailed comparison of the two options, providing indicators in three main categories:
- Investment: required number of vehicles, initial vehicle costs and micro-hub setup costs.
- Costs of operation: annual vehicle and micro-hub operation costs and total cost per stop.
- Financial indicators: return on Investment (ROI), net present value (NPV), equivalent annual cost (EAC), and the break-even point (in years).
Additionally, the tool auto-generates recommendations to help with interpreting these financial results to assess the viability of the transition.