The Dutch potted plant sector has a dominant international position, but new marketing channels and emerging markets on distance call for new logistics concepts. This paper explores the potential of an advanced logistics concept, i.e. logistics orchestration, that aims for improved collaboration between supply chain actors. A mixed integer linear programming model is developed to investigate the benefits of logistics orchestration in three scenarios. In these scenarios, the effects of network design and logistics consolidation on logistics costs, working times and CO2 emissions are quantified. Modelling assumptions and data were validated in collaboration with business partners. Results show that logistics costs, working time and emissions can be significantly reduced by use of a hub network and consolidation. The better the European economic centre can be reached through the hub network, the larger the benefits can be. Embodying a substantial part of European goods flows is required to realise these benefits.
|Journal||International Journal of Logistics research and applications|
|Publication status||Published - 2014|