Integrated Logistics Network for the Supply Chain of Locally Produced Food, Part II: Assessment of E-Trade, Economic Benefit and Environmental Impact
Affiliation(s)
Department of Energy and Technology, Swedish University of Agricultural Sciences, Uppsala, Sweden. Department of Energy and Technology, Swedish University of Agricultural Sciences, Uppsala, Sweden..
Department of Energy and Technology, Swedish University of Agricultural Sciences, Uppsala, Sweden. Department of Energy and Technology, Swedish University of Agricultural Sciences, Uppsala, Sweden..
ABSTRACT
In order to improve the logistics for locally produced food, and its integration with large-scale distribution systems, the conceptual idea of optimised and integrated logistics networks was analysed and demonstrated in a pilot project of local food producers in southern Sweden. The main objective of this paper was to assess the e-trade integrated logistics systems, economic benefits and environmental impact of integrated logistics systems, based on route optimisation analyses and producer data collected using questionnaires. The study revealed that the introduction of IT-systems for electronic trade had positive and negative economic effects. Internet-based cloud services designed for electronic business-to-business trading and coordinated transport with a common collection centre (CC) were important steps in the process of integration. The pilot project also showed the importance of a flexible organisation and a strong driving partner to con- tinue and develop collaboration. Route optimisation could reduce the route distances, decrease the environmental im- pact and provide economic benefits due to reduced working hours. The lowest estimated global warming potential from vehicle emissions was found when coordination was considered for collection to the CC and to and from the distribu- tion centre (DC). The lowest estimated potentials for acidification, eutrophication and human toxicity were found when integrated collections and deliveries took place during each route. To identify how the local food supply chains should be organised, more case studies of local food producers in different settings and under different conditions need to be carried out. With further case studies and surveys, more general patterns of variation and relations between variables may also be identified.
In order to improve the logistics for locally produced food, and its integration with large-scale distribution systems, the conceptual idea of optimised and integrated logistics networks was analysed and demonstrated in a pilot project of local food producers in southern Sweden. The main objective of this paper was to assess the e-trade integrated logistics systems, economic benefits and environmental impact of integrated logistics systems, based on route optimisation analyses and producer data collected using questionnaires. The study revealed that the introduction of IT-systems for electronic trade had positive and negative economic effects. Internet-based cloud services designed for electronic business-to-business trading and coordinated transport with a common collection centre (CC) were important steps in the process of integration. The pilot project also showed the importance of a flexible organisation and a strong driving partner to con- tinue and develop collaboration. Route optimisation could reduce the route distances, decrease the environmental im- pact and provide economic benefits due to reduced working hours. The lowest estimated global warming potential from vehicle emissions was found when coordination was considered for collection to the CC and to and from the distribu- tion centre (DC). The lowest estimated potentials for acidification, eutrophication and human toxicity were found when integrated collections and deliveries took place during each route. To identify how the local food supply chains should be organised, more case studies of local food producers in different settings and under different conditions need to be carried out. With further case studies and surveys, more general patterns of variation and relations between variables may also be identified.
Cite this paper
I. Nordmark, D. Ljungberg, G. Gebresenbet, T. Bosona and R. Jüriado, "Integrated Logistics Network for the Supply Chain of Locally Produced Food, Part II: Assessment of E-Trade, Economic Benefit and Environmental Impact," Journal of Service Science and Management, Vol. 5 No. 3, 2012, pp. 249-262. doi: 10.4236/jssm.2012.53030.
I. Nordmark, D. Ljungberg, G. Gebresenbet, T. Bosona and R. Jüriado, "Integrated Logistics Network for the Supply Chain of Locally Produced Food, Part II: Assessment of E-Trade, Economic Benefit and Environmental Impact," Journal of Service Science and Management, Vol. 5 No. 3, 2012, pp. 249-262. doi: 10.4236/jssm.2012.53030.
References
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[1] A. W. Clarin, “H?llbar Konsumtion av Jordbruksvaror— Vad f?r du som Konsument n?r du K?per N?rproducerat? (Sustainable Consumption of Agriculture Products—What Is It the Consumer Get When Buying Locally Produced Food?)” Report 2010:19, Jordbruksverket, 2010. http://www2.jordbruksverket.se/webdav/files/SJV/trycksaker/Pdf_rapporter/ra10_19.pdf [2] B. G. Smith, “Developing Sustainable Food Supply Chains: Philosophical Transactions of the Royal Society B,” Biological Sciences, Vol. 363, No. 1492, 2008, pp. 849-861. doi:10.1098/rstb.2007.2187 [3] B. Ilbery and D. Maye, “Food Supply Chains and Sustainability: Evidence from Specialist Food Producers in the Scottish/English Borders,” Land Use Policy, Vol. 22, No. 4, 2005, pp. 331-344. doi:10.1016/j.landusepol.2004.06.002 [4] P. Jones, D. Comfort and D. Hillier, “A Case Study of Local Food and Its Routes to Market in the UK,” British Food Journal, Vol. 106, No. 4, 2004, pp. 328-335. doi:10.1108/00070700410529582 [5] H. Bj?rklund, M. Cardoso, G. Gebresenbet, C. Gossas, I. Hallberg, D. Ljungberg and F. Str?mblad, ”De lokala Matproducenterna och Dagligvaruhandeln Kartl?ggning Hinder och M?jligheter—F?rslag,” Livsmedelssverige/SLU, 2008. http://www.regionalmat.se/images/pdf/rapporter/rapport_lokalmat.pdf [6] C. Wallgren, “Local or Global Food Markets: A Comparison of Energy Use for Transport,” Local Environment, Vol. 11, No. 2, 2006, pp. 233-251. doi:10.1080/13549830600558598 [7] C. Wallgren and M. H?jer, ”Eating Energy—Identifying Possibilities for Reduced Energy Use in the Future Food Supply System,” Energy Policy, Vol. 37, No. 12, 2009, pp. 5803-5813. doi:10.1016/j.enpol.2009.08.046 [8] J. D. Bloom and C. C. Hinrichs, “Moving Local Food through Conventional Food System Infrastructure: Value Chain Framework Comparisons and Insights,” Renewable Agriculture and Food Systems, Vol. 26, No. 1, 2010, pp. 13-23. doi:10.1017/S1742170510000384 [9] B. Ilbery, D. Watts, S. Simpson, A. Gilg and J. Little, “Mapping Local Foods: Evidence from Two English Regions,” British Food Journal, Vol. 108, No 3, 2006, pp. 213-225. doi:10.1108/00070700610651034 [10] J. T?yli, L. H?kkinen, L. Ojala and T. Naula, “Logistics and Financial Performance: An Analysis of 424 Finnish Small and Medium-Sized Enterprises,” International Journal of Physical Distribution and Logistics Management, Vol. 38, No. 1, 2008, pp. 57-80. doi:10.1108/09600030810857210 [11] J. Blandon, S. Henson and J. Cranfield, “Small-Scale Farmer Participation in New Agri-Food Supply Chains: Case of the Supermarket Supply Chain for Fruit and Vegetables in Honduras,” Journal of International Development, Vol. 21, No. 7, 2009, pp. 971-984. doi:10.1002/jid.1490 [12] Lantbrukarnas Riksf?rbund (LRF), “Enk?t Sm?skaligt Livsmedel.ppt (Questionnarie, Small Scale Food),” LRF, 2007. [13] M. Christopher, “Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service,” Financial Times/Prentice Hall, London, 1998. [14] E. Sandberg, “Logistics Collaboration in Supply Chains: Practice vs. Theory,” The International Journal of Logistics Management, Vol. 18, No. 2, 2007, pp. 274-293. doi:10.1108/09574090710816977 [15] A. Das, R. Narasimhan and S. Talluri, “Supplier Integration—Finding an Optimal Configuration,” Journal of Operations Management, Vol. 24, No. 5, 2006, pp. 563-582. doi:10.1016/j.jom.2005.09.003 [16] M. Holweg, S. Disney, J. Holmstr?m and J. Sm?ros, “Supply Chain Collaboration: Making Sense of the Strategy Continuum,” European Management Journal, Vol. 23, No. 2, 2005, pp. 170-182. doi:10.1016/j.emj.2005.02.008 [17] R. Kaipia, “Coordinating Material and Information Flows with Supply Chain Planning,” The International Journal of Logistics Management, Vol. 20, No. 1, 2009, pp. 144162. doi:10.1108/09574090910954882 [18] J. H. Trienekens, J. M. Hagen, A. J. M. Beulensc and S. W. F. Omta, “Innovation through (International) Food Supply Chain Development: A Research Agenda,” International Food and Agribusiness Management Review, Vol. 6, No. 1, 2003, pp. 84-98. [19] T. G. Bosona and G. Gebresenbet, “Cluster Building and Logistics Network Integration of Local Food Supply Chain,” Biosystems Engineering, Vol. 108, No. 4, 2011, pp. 293302. doi:10.1016/j.biosystemseng.2011.01.001 [20] D. Ljungberg and G. Gebresenbet, ”Mapping out the Potential for Coordinated Goods Distribution in City Centres: The Case of Uppsala,” International Journal of Transport Management, Vol. 2, No. 3-4, 2004, pp. 161172. doi:10.1016/j.ijtm.2005.07.001 [21] D. Ljungberg, G. Gebresenbet and S. Aradom, “Logistics Chain of Animal Transport and Abattoir Operations,” Biosystems Engineering, Vol. 96, No. 2, 2007, pp. 267277. doi:10.1016/j.biosystemseng.2006.11.003 [22] H. Aronsson and M. H. Brodin, “The Environmental Impact of Changing Logistics Structures,” The International Journal of Logistics Management, Vol. 17, No. 3, 2006, pp. 394-415. doi:10.1108/09574090610717545 [23] M. Beckeman and C. Sk?ldebrand, “Clusters/Networks Promote Food Innovations,” Journal of Food Engineering, Vol. 79, No. 4, 2007, pp. 1418-1425. doi:10.1016/j.jfoodeng.2006.04.024 [24] P. Jones, D. Comfort and D. Hillier, “A Case Study of Local Food and Its Routes to Market in the UK,” British Food Journal, Vol. 106, No. 4, 2004, pp. 328-335. doi:10.1108/00070700410529582 [25] M. A. Bourlakis and C. A. Bourlakis, “Deliberate and Emergent logistics Strategies in Food Retailing: A Case Study of the Greek Multiple Food Retail Sector,” Supply Chain Management: An International Journal, Vol. 6, No. 4, 2001, pp. 189-200. doi:10.1108/13598540110402728 [26] S.-M. Aghazadeh, “Improving Logistics Operations across the Food Industry Supply Chain,” International Journal of Contemporary Hospitality Management, Vol. 16, No. 4, 2004, pp. 263-268. doi:10.1108/09596110410537423 [27] B. Groothedde, C. Ruijgrok and L. Tavasszy, “Towards Collaborative, Intermodal Hub Networks: A Case Study in the Fast Moving Consumer Goods Market,” Transportation Research Part E: Logistics and Transportation Review, Vol. 41, No. 6, 2005, pp. 567-583. doi:10.1016/j.tre.2005.06.005 [28] C. Gimenez, “Logistics Integration Processes in the Food Industry,” International Journal of Physical Distribution & Logistics Management, Vol. 36, No. 3, 2006, pp. 231249. doi:10.1108/09600030610661813 [29] J. Murdoch, “Networks—A New Paradigm of Rural Development?” Journal of Rural Studies, Vol. 16, No. 4, 2000, pp. 407-419. doi:10.1016/S0743-0167(00)00022-X [30] S. Forsman and J. Paananen, “Local Food Systems: Explorative Findings from Finland,” MTT Agri-Food Research Finland, Economic Research, 2010. http://www.gis-syal.agropolis.fr/Syal2002/En/Workshop%204/FORSMAN.pdf [31] N. Saltmarsh and T. Wakeman, “Local Links in a Global Chain Mapping Food Supply Chains and Identifying Local Links in the Broads and Rivers Area of Norfolk,” East Anglia Food Link, Project Report, 2004. http://www.eafl.org.uk/downloads/LocalLinksMainWeb.pdf [32] P. Engelseth, “Food Product Traceability and Supply Network Integration,” The Journal of Business and Industrial Marketing, Vol. 24, No. 5-6, 2009, pp. 421-430. doi:10.1108/08858620910966291 [33] T. Bosona, G. Gebresenbet, I. Nordmark and D. Ljungberg, “Integrated Logistics Network for the Supply Chain of Locally Produced Food, Part I: Location and Route Optimization Analyses,” Journal of Service Science and Management, Vol. 4 No. 2, 2011, pp. 174-183. doi:10.4236/jssm.2011.42021 [34] SMHI and IVL Svenska Milj?institutet AB with SubConsultants, “Handbok f?r V?gtrafikens Luftf?roreningar (Handbook for the air emission from road traffic),” 2010. http://www.trafikverket.se/TrvSeFiler/Privat/Miljo/Halsa/Luft/handbok_for_vagtrafikens_luftfororeningar/kapitel_6_bilagor_emissionsfaktorer_2009_2020_2030.pdf [35] Swiss Centre for Life Cycle Inventories, “CML2001/Acidification Potential, Average European/Eutrophication Potential, Average European/Human Toxicity, HTP 100a,” Ecoinvent Database, Dübendorf, 2010. http://www.ecoinvent.org/database [36] Swiss Centre for Life Cycle Inventories, “IPCC 2007/ Climate Change, GWP 100a,” Ecoinvent Database, Dübendorf, 2010. http://www.ecoinvent.org/database [37] Nationalencyklopedin, “Hallands L?n,” 2011. http://www.ne.se/lang/hallands-l%C3%A4n [38] Statistics Sweden (SCB), ”Folkm?ngden per F?rsamling 2010-12-31 Enligt Indelningen 2011-01-01,” 2010. http://www.scb.se/Statistik/BE/BE0101/2010A01/be0101tab5forsaml10.xls [39] Expert systems, “Electronic Business,” 2010. http://www.expertsystems.se [40] C. Rygaard, “Expert Systems,” Unpublished, 2010.