Eco-efficient supply chain networks: Development of a design framework and application to a real case study

© 2015 Taylor & Francis. This paper presents a supply chain network design framework that is based on multi-objective mathematical programming and that can identify 'eco-efficient' configuration alternatives that are both efficient and ecologically sound. This work is original in that it encompasses the environmental impact of both transportation and warehousing activities. We apply the proposed framework to a real-life case study (i.e. Lindt & Sprüngli) for the distribution of chocolate products. The results show that cost-driven network optimisation may lead to beneficial effects for the environment and that a minor increase in distribution costs can be offset by a major improvement in environmental performance. This paper contributes to the body of knowledge on eco-efficient supply chain design and closes the missing link between model-based methods and empirical applied research. It also generates insights into the growing debate on the trade-off between the economic and environmental performance of supply chains, supporting organisations in the eco-efficient configuration of their supply chains

Food Waste Causes in Fruit and Vegetables Supply Chains

Fruit and vegetables are a core component of healthy diets, but horticultural production and distribution activities suffer from a high incidence of surplus food and food waste. The intrinsic perishability of products as well recurring pests, diseases and contamination events are since long recognized to be primary reasons for fruit and vegetables wastage, but a more thorough knowledge of causes, including external events and internal strategies and practices, is necessary to design and implement waste reduction strategies. However, literature on waste causes in fruit and vegetables supply chains is rather fragmented. Most existing studies focus on single products, single deterioration mechanisms or single reuse or recycling choices, and hardly ever investigate more than one stage of the fruit and vegetables supply chain. The main objective of the paper is to offer an instrument for identifying in a comprehensive way the possible origin points and root issues behind food waste generation in the stages of fruit and vegetables supply chains. The research is conducted through the application of two methods. A first phase consists in a deep literature review, whose results are summarized in the so-called Causes Framework. This qualitative instrument shows the possible sources of fruit and vegetables surplus and waste, highlighting for each supply chain stage the high-priority causes and for each cause the fundamental root issue. The second research phase is a case study that shows how the Framework can be applied to pinpoint the most significant causes for specific supply chains. The unit of analysis is the supply chain of an Italian PGI pear. Primary information is gathered from 6 enterprises through 7 semi-structured interviews. The most critical causes of surplus and waste generation in the focal supply chain are found as the intersection between interview answers and Framework predictions. The paper integrates sparse pieces of knowledge on the processes of food waste generation in fruit and vegetables supply chains, and offers an instrument that may support private and public decision-makers in the reduction of horticultural waste

Modeling, Analysis, and Design Insights for Shuttle-based Compact Storage Systems

Shuttle-based compact systems are new automated multi-deep unit-load storage systems with lifts that promise both low operational cost and large volume flexibility. In this paper, we develop novel queuing network models to estimate the performance of both single-tier and multi-tier shuttle-based compact systems. Each tier is modeled as a multi-class semi- open queuing network, whereas the vertical transfer is modeled using an open queue. For a multi-tier system, the models corresponding to tiers and vertical transfer are linked together using the first and second moment information of the queue departure processes. The models can handle both specialized and generic shuttles, and both continuous and discrete lifts. The accuracy of the models is validated through both simulation and a real case. Errors are acceptable for conceptualizing initial designs. Numerical studies provide new design insights. Results show that the best way to minimize expected throughput time in single-tier systems is to have a depth/width ratio around 1.25. Moreover, specialized shuttles are recommended for multi-tier systems because the higher cost of generic shuttles is not balanced by savings in reduced throughput time and equipment need

Assessing efficiency and innovation in the 3PL industry: an empirical analysis

The Third-party Logistics (3PL) industry is facing both important growth rates and increasing competitive pressure. 3PL providers are required to continuously sustain a more and more competitive cost structure (i.e. efficiency) and develop capabilities to improve their services (i.e. innovation); hence, the evaluation of these key success factors is considered a key issue. This paper develops a quantitative analysis of 71 Italian 3PL providers by using Data Envelopment Analysis to jointly assess efficiency and innovation. Furthermore, through a case study research, it corroborates the quantitative results by investigating the strategies of best-in-class companies. Results allowed identifying 13 3PL providers as efficiency leaders and 6 as leaders from both the efficiency and the innovation side. Their input composition indicates a diversification of the business models. A breakdown of the analysis by size and industry focus, along with empirical evidence on the strategies enhancing efficiency and innovation, is also provided

Analytical model to estimate performances of autonomous vehicle storage and retrieval systems for product totes

In today’s competitive scenario of increasingly faster deliveries and smaller order sizes, material-handling providers are progressively developing new solutions. A recent, automated material-handling technology for unit load storage and retrieval consists of an autonomous vehicle storage and retrieval system (AVS/RS). The present paper presents an analytical model to estimate the performances (the transaction cycle time and waiting times) of AVS/RS for product tote movement. The model is based on an open queuing network approach. The model effectiveness in performance estimation is validated through simulation

Shaping the international logistics strategy in the internationalisation process

Internationalisation has increasingly become a strategic issue for companies. Ample evidence confirms the key role of logistics in supporting the company internationalisation process, especially in today’s context characterised by growing demand in speed and flexibility. Setting the logistics strategy in line with corporate objectives for each export area over time is crucial and represents a challenge for logistics directors worldwide. The aim of this paper is to address this gap by providing empirical-based evidence on how the international logistics strategy should be shaped accordingly with company internationalisation choices. The research is based on case studies with a sample of 14 exports areas of six companies. Results offer a new approach with respect to previous contributions that studied specific logistics issues separately. From a practical viewpoint, managers can benefit from a full picture of both the variables to be set up and the potential alternatives to be selected when designing the international logistics strategy

Modeling, Analysis, and Design Insights for Shuttle-based Compact Storage Systems

Shuttle-based compact systems are new automated multi-deep unit-load storage systems with lifts that can potentially achieve both low operational cost and large volume flexibility. In this paper, we develop novel queuing network models to estimate the performance of both single-tier and multi-tier shuttle-based compact systems. Each tier is modeled as a multi-class semi-open queuing network, whereas the vertical transfer is modeled using an open queue. For a multi-tier system, the models corresponding to tiers and vertical transfer are linked together using the first and second moment information of the queue departure processes. The models can handle both specialized and generic shuttles, and both continuous and discrete lifts. The accuracy of the models is validated through both simulation and a real case. Errors are acceptable for conceptualizing initial designs. Numerical studies provide new design insights. Results show that the best way to minimize expected throughput time in single-tier systems is to have a depth/width ratio around 1.25. Moreover, specialized shuttles are recommended for multi-tier systems because the higher cost of generic shuttles is not balanced by savings in reduced throughput time and equipment needs

Incorporating the environmental dimension in the assessment of automated warehouses

In today's competitive context, the paradigm of sustainable development is becoming more and more significant, also in warehousing. Managers are progressively considering not only purely economic aspects but also environmental concerns. Despite such consciousness, the selection of automated warehousing solutions has been mainly based on operational and economic performance in both practice and theory so far, whereas energy consumption and environmental performance have not been adequately taken into account. To fill this lack, a model is proposed to evaluate the energy consumption and environmental impact of automated warehousing solutions. The model has been used to investigate whether and how the selection of automated solutions changes depending on the dimensions involved in the analysis (i.e. only economic, only environmental or both). The analysis has been performed considering autonomous vehicle storage and retrieval systems (AVS/RSs) and its natural alternative, i.e. automated storage and retrieval systems (AS/RSs). Results confirm the importance of considering both dimensions in the assessment of automated warehouses, as depending on the scenario, the technology selection shifts from AS/RS to AVS/RS when considering not only the economic but also the environmental impact. Additionally, this study provides new insights on the suitability areas of AVS/RSs

Heading for tomorrow: resilience strategies for post Covid-19 grocery supply chains

Supply chain resilience is a critical capability needed to compete in the current turbulent and unpredictable business environment, but many companies still tend to underestimate its relevance. In the wake of the COVID-19 pandemic, understanding which supply chain impacts influence the policies and actions undertaken when resilience is concerned is important. This study investigated the relationships between the impacts experienced at the different supply chain tiers during the pandemic, and explored which impacts could drive perceptions towards developing resilience strategies in the future. A survey instrument was developed adopting a mid-range approach, targeting manufacturers active in the Italian grocery supply chain. Data were analysed using partial least square structural equation modelling (PLS-SEM). Results showed that source-related impacts deeply affect make- and delivery-related impacts, and make-related impacts mainly influence the perceptions about future resilience strategies. In fact, manufacturers appear to be primarily interested in those strategies ensuring the continuity of their intrinsic operations. The study could inform theory and practice about companies’ decisions towards the adoption of certain approaches. Also, it highlights promising research avenues related to deepening understanding of how perceptions could predict future intentions to engage in protective actions to adequately cope with potential future disruptions