Title Supply chain optimization in a small market: food industry‘s case /
Translation of Title Mažos rinkos tiekimo grandinės optimizavimas: maisto pramonės atvejis.
Authors Olencevičiūtė, Dalia ; Gružauskas, Valentas
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Pages 117
Keywords [eng] food industry ; supply chain ; small market ; partial freight forwarding ; optimization methods
Abstract [eng] Supply chain complexity due to globalisation has changed dramatically. Today implementation of new distribution strategies and concepts are essential in order to maintain an efficient and visible supply chain. Moreover, the concern for the environment has affected the planning stage of the supply chain. Depending on the distribution strategy financial possibilities and CO2 emission level must be analysed and the best strategy should be recommended. This study will be focused on small markets which has a tendency to work with partial freights. One of the key concepts analysed today is logistic cluster development. However, the clustering processes in terms of environmental effect and partial freight distribution practically is not analysed. Therefore, the main aim of the research is to evaluate different distribution strategies based on financial and environment effect by referring to a small market food industry’s case. To achieve this aim several objectives must be accomplished. Firstly, the analysis of literature must be done regarding the food industry, small market concept, supply chain and clustering processes. Later a specialist interview was conducted during which information regarding the west Europe food industry was gathered: warehouse construction costs, warehousing management costs, transportation costs, fuel consumptions rates, demand of manufacturers and other information regarding the order of raw materials. The gathered results were analysed using regression analysis and the data was expressed as fixed costs and variable costs. With this information a case study was modelled using R language. Just in time, consolidation warehouse and partial freight gathering strategies were evaluated in Lithuania, England, Netherlands, Germany and Belgium. The calculations showed that the best distribution strategy is to gather partial freight in the region (short-freight forwarding), then consolidate them in a regional warehouse and distribute them directly to another region (long-freight forwarding). By gathering partial freight in the region it is possible to optimize CO2 emission level and transportation costs. The main problem of this strategy is that individual companies won’t have enough freight to make cost saving routes, therefore only by forming a logistic cluster this strategy is possible to implement. In the scientific literature the possibility for clusters to collaborate together practically is not analysed, therefore this statement – “The collaboration between regional clusters can minimize distribution costs and minimizing the environmental effect for all parties involved in the regional clusters, not only individual players. Without shared knowledge and collaboration between the parties effective partial freight distribution is not possible”, will make a large contribution to further scientific of clustering concepts. These findings can be implemented not only in the food industry, but in other industries which has a tendency to distribute partial freight as well. By implementing automotive vehicles and alternative fuel the CO2 emission level, transportation costs can be minimized even further.
Dissertation Institution Kauno technologijos universitetas.
Type Master thesis
Language English
Publication date 2016