By Stephen DeAngelis
When I read articles about smart cities, many of them talk about reducing traffic, increasing pedestrian-only areas, and enhancing public transportation. Few of them talk about the importance of urban supply chains and how smart technologies can improve the flow of goods in cities. That oversight could be changing. Staff members at Vintly explain, “As urban populations continue to grow, cities around the world are turning to technology to address the challenges of congestion, pollution, and resource management. Enter the concept of smart cities — urban areas that leverage digital technology and data-driven solutions to enhance the efficiency, sustainability, and quality of life for residents.”[1] They add, “One of the most significant areas where smart cities are making a profound impact is in urban supply chains.” In very large cities, urban supply chains face enormous challenges. For example, freelance writer Elissaveta M. Brandon reports, “Every day, New Yorkers receive a staggering 2.3 million packages at their doorstop. Nearly 90% of those goods snake through the city on trucks that cause traffic congestion and pollute the air on the way.”[2]
Smart Cities and Smart Supply Charts
Journalist Susan Fourtané reports, “The world’s urban population is expected to rise to 70% by 2050. This means an increase from four billion to eight billion people living in urban areas using 75% of the planet's natural resources. … The rapid increase in freight deliveries that result from the continuing growth of e-commerce and online shopping will lead to unsustainable traffic congestion, CO2 emissions, noise, and unhealthy air pollution levels within urban areas.”[3] She adds, “One of the biggest challenges that this increasing urbanization brings is how to provide for last-mile logistics. Smart city logistics proposes that logistics providers must leverage various innovations and technologies currently used in the digital transformation of the supply chain to find solutions for the challenges.”
Although technology is the link that binds smart city planning and urban logistics, there are many more variables that must be taken into consideration. Smart city initiatives often clash with the efficient movement of goods in urban environments (e.g., the closing of streets). It’s at this intersection of competing objectives that smart technologies and new thinking must play a role. Lily Xiang, Head of Brand at JUSDA International Supply Chain Co. Ltd, explains, “Smart cities transform urban landscapes with advanced technology and connectivity. Global logistics, essential for moving goods efficiently, intersects with these innovations. Understanding this intersection enhances supply chain efficiency.”[4] There is a lot of work to do. Rignesh Soni, Executive Vice President at Premium Parking, explains, “Urban logistics is at a crossroads, with the last-mile delivery segment facing increasing pressure from growing e-commerce demands. As cities become denser and more complex, traditional logistics models need help to keep pace, as they face inefficiencies, congestion, and environmental concerns.”[5] Inevitably, smart-city planners and urban supply chain professionals must solve problems together.
According to the staff at Seko Logistics, there are many benefits associated with smart city logistics.[6] When smart-city technologies are intertwined with every stage of the logistics process, they expect the following advantages to emerge:
• Faster delivery speed. “Data-driven urban logistics use real-time analytics to plan optimal delivery routes, anticipate roadblocks, and proactively prevent delays.”
• Lower-cost delivery solutions. “Smart transportation technologies lower operational expenses through route optimization and energy-efficient vehicles.”
• Minimized environmental impact. “Cities can cut emissions and promote cleaner air with sustainable city logistics systems.”
• Higher quality of life in urban areas. “Reduced congestion and efficient freight systems contribute to a better quality of life for city residents.”
Clearly, it would be a stretch to say that smart urban logistics is a reality in most urban areas. Nevertheless, without a vision there is no direction.
The Way Ahead
There are no silver bullet solutions for urban supply chains. Below are a few expert recommendations to improve smart-city logistics.
• Access to Technology. Xiang reports, “Many cities lack the necessary technology to support smart logistics. Inadequate internet connectivity and outdated systems pose significant challenges. Urban planners must invest in modernizing infrastructure to enable efficient logistics.” Once infrastructure is in place, it must be made widely available. The staff at Vintly insists, “Smart cities must ensure that the benefits of technology are accessible to all residents, businesses, and communities. This includes addressing issues such as the digital divide and ensuring that small businesses have access to the tools and resources needed to participate in smart city supply chains.”
• Smart Curbside Management. Soni reports, “Smart curbside management is a crucial innovation in this space. By deploying IoT sensors, cameras and AI-driven algorithms, cities can monitor and manage curbside usage in real time. This allows for better pricing and the allocation of dedicated loading zones, which reduces congestion and improves delivery times.”
• Smart Transportation Systems. The Seko Logistics staff writes, “Sustainable urban logistics requires new and innovative technologies to reach its full potential. Some examples include: Tracking enabled by IoT devices: This provides visibility into goods' locations so providers can make quick adjustments as issues arise. Deliveries are more likely to show up on time, which contributes to a superior customer experience. AI-powered optimization: AI technology can analyze huge swaths of data to build efficient delivery routes, schedule freight at optimal times, and even predict demand patterns and prepare accordingly. Smart traffic management systems: These evaluate traffic flow and adjust signals accordingly. This helps to minimize congestion and, in high-demand periods, gives freight the right of way.”
• Smart Logistics Hubs. Xiang predicts that smart logistics hubs will emerge in most smart cities. She explains, “Smart logistics hubs emerge as a pivotal trend in smart cities. These hubs integrate advanced technologies to streamline operations. Urban areas benefit from enhanced efficiency and reduced congestion. Logistics hubs utilize IoT for real-time data exchange. This connectivity ensures seamless coordination among stakeholders. Companies achieve faster processing times and improved service delivery.” Brandon reports that the firm KPF Urban envisions these kinds of smart hubs “where automated cranes and robots would collect the cargo and distribute it to logistic centers scattered around the city. From there, goods would be delivered using a variety of micromobility options like electric bikes, unmanned aerial vehicles (UAVs), or drones.”
Concluding Thoughts
Soni insists, “As urbanization continues and e-commerce grows, the demand for efficient and sustainable logistics solutions will only intensify.” Efficiency, however, requires connectivity and connectivity often raises privacy issues. Xiang notes, “Public acceptance poses a social challenge for smart city logistics. Residents may resist changes brought by smart city initiatives. Concerns about privacy, surveillance, and data usage affect public perception. Authorities must engage communities in the planning process. Transparent communication and education can build trust and acceptance. Public support is crucial for the successful implementation of smart city projects.” Soni adds, “This means balancing the demands of logistics companies with the needs of local businesses and residents, creating a harmonious urban environment.” As most city planners and supply chain professionals know, smart urban logistics, as envisioned, remains aspirational. The Seko Logistics staff concludes, “The sustainable, connected cities of the future are only possible with smart urban logistics strategies. This demands an investment in green energy, AI, and IoT, as well as collaborative public-private partnerships.”
Footnotes
[1] Staff, “Smart Cities and Their Impact on Urban Supply Chains: Revolutionizing Urban Logistics,” Vintly Blog, 10 February 2025.
[2] Elissaveta M. Brandon, “NYC has a major delivery problem. These architects have a big vision to fix it,” Fast Company, 16 January 2026.
[3] Susan Fourtané, “Smart Cities Logistics & Implications for Supply Chains, EE Times, 8 May 2017.
[4] Lily Xiang, “The Impact of Smart Cities on Global Logistics Trends,” JUSDA Supply Chain Management International Co., 26 September 2024.
[5] Rignesh Soni, “How Smart Cities Are Transforming Last-Mile Delivery And Logistics,” Forbes, 30 September 2024.
[6] Staff, “Optimizing Urban Logistics with Smart City Infrastructure,” Seko Knowledge Hub, 2 December 2024.
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