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This book addresses the main challenges affecting modern logistics and supply chains and is organized according to five main themes: supply chain strategy and management, information and communication technology (ICT) for logistics and related business models, vertical and horizontal collaboration, intelligent hubs (e.g. ports and cities) and policy for sustainable logistics. The key findings presented are based on both extensive research and on business cases. The book examines logistics from a comprehensive viewpoint embracing the entire supply chain. The overarching advanced logistics and supply chain concept at the heart of this book endeavors to contribute to a sustainable intelligent transport system by making it more efficient, cost-effective, safe, reliable and competitive. Specifically, the book focuses on the need for a variety of supply chain, logistics and transport options, on the potential offered by technological developments, infrastructural and organizational aspects, information flows, the financial and legal domain, harmonization and the complexity of implementation. In closing, the book presents new approaches to the coordination of sound business and governance models.



Logistics Trends, Challenges, and Needs for Further Research and Innovation

Logistics and transport are central elements and pre-conditions of worldwide trade and business. Sustainable transport solutions are vital for societal acceptance: economic growth with less resources and even less environmental impact will be crucial for European countries and globally—access to markets at reasonable transport prices is a cornerstone for the benefits of globalisation. Sustainability in logistics includes ecological, economical and social objectives. Challenges arise from a global, competitive environment, restrictions, social or ecological concerns, as well as deficits in information flows, knowledge transfer or well integrated ICT applications. This chapter provides an overview of the trends and challenges in the area of logistics and supply chain management and addresses the needs for research and innovations. In addition, it describes the structure and the main themes of the other chapters of this book.
Uwe Clausen, Joost De Bock, Meng Lu

Business Models for Advanced ICT in Logistics

This scientific work explains how ICT together with an innovative business approach may enhance supply chains. The presented results derive from the application of a novel methodology developed to study the evolution of the business models of different business actors belonging to a business ecosystem focused on co-modal logistics networks. Each type of actors is pursuing its own value system on the basis of the key elements that identify and characterize the nature of its activities and business. The focus of the business models is on the key elements that characterize the value-creation links between the involved actors in the proposed Logistics Reference Value Chain. The presented work focuses on broadening and exploring the traditional concepts of business models showing their evolution when considering the future business environment. Two cases studies are presented to show in practical terms the evolution of the business models of the involved logistics actors in a business ecosystem and to present concrete examples from industries.
Valentina Boschian, Paolo Paganelli

Future-Proofing Supply Chains

Due to the rapidly changing environment and the changing customer behaviour, companies will have to rethink the way they deliver their products and services. Most companies are still operating a supply chain that was designed in times of cheap oil, before any trace of e-commerce. These supply chains now run up against their limits and they will definitely not stand the upcoming challenges of tomorrow, the biggest of which are probably societal and environmental. Twenty challenges are identified and their impact on supply chains is described. In order to be successful in a rapidly changing environment, companies have a strong interest to make their supply chains future-proof at all times. A future-proofing diagnosis is developed to assess the supply chain of a company and to evaluate the gap with the upcoming societal, consumer and logistics challenges. Companies who are future-proofing their supply chain will identify and seize much faster the supply chain opportunities to create a competitive advantage.
Alex Van Breedam

Gain Sharing in Horizontal Logistic Co-operation: A Case Study in the Fresh Fruit and Vegetables Sector

More and more companies start to notice the potential of setting up a logistic co-operation. They realize however that this idea is also a source of new challenges and impediments. We will focus on the challenge of dividing the total coalition gain among all partners. In this chapter, we show that significant differences exist between allocation methods and we examine the impact of defining gain defining gain sharing on a short term (daily) or a long term (monthly) basis. Too often, the selection of an appropriate allocation mechanism is considered as an independent decision with fairness as the single criterion. The companies involved, however, should realize what the impact of a certain allocation method might be, when applied in the broader context of horizontal co-operation. A selection of well known allocation methods and concepts is introduced and applied to a real life case study of fresh produce traders, jointly organising their transportation from the auction to a joint transport platform.
Christof Defryn, Christine Vanovermeire, Kenneth Sörensen

Scheduling Serial Locks: A Green Wave for Waterbound Logistics

The present chapter focuses on locks and their impact on (inland) waterbound logistics. Examples of lock systems are given, and the main characteristics of the serial lock scheduling problem discussed.
Locks are often scheduled manually and, despite constituting a complex combinatorial problem, academia has given little attention to optimizing lock operations. Two measures can be suggested to considerably improve the competitiveness of inland waterway transportation within the supply chain: increasing the scheduling horizon of locks and treating series of locks as a single system, instead of operating them individually. A decision support system for the ship placement problem is introduced. The system is analysed both from the algorithmic and operational side, and some implementation difficulties are highlighted. Transferring ships through a series of locks based on their requested time of arrival at a destination, has potential to generate a green wave for waterbound logistics.
Jannes Verstichel, Greet Vanden Berghe

Supply Chain Network Design: Tackling Regulations, Lead Time and Cost-Efficiency

The main objective of this chapter is to deepen in the entire supply chain of the oil and gas industry by searching the feasibility of a new hub in Africa. The methodology will follow several criteria related to location, stability, lead times, profitability and intelligent hub among others.
Solutions come from comparison between the current situation and the one proposed in the chapter in terms of estimated total cost. A sensitivity analysis has also been performed, focusing on what would happen in the event of 5, 10, 20 and 30 working days being lost due to strikes.
Derived from these results, the chapter provides a set of recommendations regarding to location of the hub, renting equipment, modal transport and benchmark. Results are focused in the industries’ supply chains, especially those oriented to similar kinds of markets and looking for new opportunities in the African continent. The issue of customs and free trade zones is widely contemplated in the chapter and provides insights of feasible locations to establish future hubs.
Susana Val, Adekunle Kehinde, Andrew Machado, Carolina Ciprés

Urban Logistics: Multi-modal Transportation Network Design Accounting for Stochastic Passenger Demand and Freight Logistics

In this chapter, we present a bi-level optimization model by considering multiple transportation modes, stochastic passenger travel demand and freight logistics. Passenger travel demand can follow a general probability distribution where its mean and variance are function of the population in the origin and destination areas. The problem is formulated as a bi-level optimization problem. In the lower level, transportation design problem is formulated to minimize traveler costs and in the upper level we consider minimizing carbon monoxide emission and minimizing probability of traffic congestion. The two-stage model is formulated as a single stage model by considering optimality condition of lower level problem as a set of constraints in the upper level model. The formulated single stage model is a Mixed-Integer Non-linear Programming (MINLP) problem. In this chapter, a stochastic multi-modal, bi-level optimization model is presented for passenger and freight transportation problem in urban regions.
Narges Shahraki, Metin Türkay

Tango Without the Dancefloor? The Forgotten Role of the Public Sector on Logistics

Logistics is conventionally viewed as a commercially driven activity, linking the manufacturing and distribution of raw materials and finished products. While companies undoubtedly account for a lion’s share of the logistics business, a comprehensive perspective on the sector should also include the role of the public sector. The main thesis of the chapter is that many public agencies (on local, regional and global levels) are realising the importance of logistics and are attempting to come to terms with this new need. This will eventually lead to new modes of governance where the public and private sectors will intertwine in new ways.
Rein Jüriado

Towards a Harmonized Framework for Calculating Logistics Carbon Footprint

Internal and external pressures on the various stakeholders in the transportation of goods have resulted in a wide range of operational choices and a proliferation in the way in which their success can be assessed. Environmental impacts form only one part of the decision making process, alongside cost, promptness, reliability, safety etc. However, having recognised the place of the environment, and particularly the carbon footprint, within such decisions it is crucial to have a reliable and consistent method as an input to the process. Such a method must be harmonized to allow comparable calculations to be made for the wide range of modes, vehicle types and operational characteristics that may be used along current global supply chains. It must also be acceptable in terms of input required, accuracy and comprehension to those who use it, including policy makers who set global targets and monitor overall progress. Significant progress has been made to develop and start to implement such a harmonized methodology framework from a highly fragmented starting point, although much remains to be done. This paper reflects the work to date and the approach to the next steps that are already underway.
Alan Lewis


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