Freight transportation in urban areas has increased significantly in a shorter period due to the widespread use of e-commerce, fast delivery, and population growth. Recently, a noticeable government initiative aimed at creating an effective, acceptable, and sustainable city logistics policy. This paper examines freight consolidation as a transportation strategy for optimizing last-mile delivery costs. Freight consolidation involves combining smaller shipments from various origins into a single, larger shipment for more efficient transportation to a common destination. This approach is particularly beneficial for last-mile delivery, where frequent deliveries of smaller quantities are frequently visible. Finally, we provide an illustrative example targeting urban freight stakeholders for practicing possible consolidation methodology. The result in the illustrative example shows that freight with 3-day consolidation, despite the delay penalty, is cheaper than daily shipping, and both are cheaper than 2-day consolidated shipping. The study will benefit urban businesses and freight services.
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