Effective Transport Systems in Food and Agricultural Supply Chains for Improved Economy, Environment and Quality

Ljungberg, D. 2006. Effective transport systems in food and agricultural supply chains for improved economy, environment and quality. Doctoral dissertation. ISSN 1652-6880, ISBN 91-576-7149-4 Transport is a key link in the food and agricultural supply chain, providing essential services to the society. However, it is at the same time a major contributor to the negative environmental effects of goods transport as a whole, and this necessitates efforts to improve the economic as well as environmental efficiency. It was assumed that a detailed study of the most important material flows and transport operations, from a regional viewpoint, with the application of appropriate tools of logistics and supply chain management, could promote the sector on national and international levels. The strategic objective of the current thesis was to promote effective transport systems in food and agricultural supply chains, for improved economy, environment and quality. In four case studies, a range of data collection methods (including key informant interviews, surveys, direct observations, measurements) were employed to investigate the possibilities to improve logistics performance using route optimisation, coordinated transport and integrated logistics methods. It was found that constraints associated with environmental effects and effective utilisation of transport resources were significant. Loading rates were high (around 95%) in transport of primary products, whereas small, frequent deliveries and low (less than 50%) load rates characterised distribution of consumer products. Queues before delivery extended delivery operations in retail distribution and animal transport, resulting in stress on animals. Several possibilities for transport coordination were identified, including coordination of grain collection with delivery of agricultural supplies, coordinated meat and dairy distribution, and coordinated delivery to city centre retailers. In the latter case, a demonstration trial illustrated that the number of deliveries to retailers could be reduced by 40%. With route optimisation, time savings of 16-24% were possible when optimising multiple routes. Farm drying and storage of grain could benefit the whole supply chain by reducing transport demand and seasonal concentration and enhancing transport coordination. Although this practice should be rewarded in an integrated supply chain, a modelling study indicated that wet grain delivery during the harvest season was the most beneficial for the supplier.