Improving Last-Mile Productivity at Paack

  • Reference: OIT-17-E

  • Year: 2022

  • Number of pages: 14

  • Geographic Setting: España

  • Publication Date: Mar 23, 2023

  • Source: IESE (España)

  • Type of Document: Case

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Last-mile delivery is by far the most operationally complex and costly part of logistics. Nevertheless, it has become a critical function of e-commerce in the last 20 years, particularly during the COVID-19 pandemic. A multitude of actors operate in the last-mile delivery space: first-party logistics companies, such as Amazon; third-party logistics companies, such as DHL; and fourth-party logistics (4PL) companies, many of them gig economy-based, which act as supply and demand aggregators in the pursuit of economies of scale. This case follows Paack, a technology-based 4PL start-up based in Barcelona and operating in several European countries, in its dual pursuit of growth and profitability. Against the backdrop of high interest rates and the ensuing liquidity crunch, as well as widespread turbulence in the tech industry in late 2022, profitability in the not-so-distant future has become imperative for Paack. In the eyes of Paack's management, profitability goes hand in hand with improving productivity. Can this be achieved through growth and scale, technology and analytics, people management, or good old operations?


gig economy last-mile delivery PAACK Productivity Profitability