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    Enhancing Export Competitiveness of Asian Fruits 2006

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    Toine Timmermans

    Wageningen UR

    Quality in [email protected]

    Fresh Logistics:New Opportunities with

    an integral approach

    Enhancing Export Competitiveness of Asian Fruits 2006

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    Agenda

    The agriculture supply chain

    Dominant Trends in agriculture

    Trends in agriculture logistics Fresh logistics: An impulse for Supply

    Chain redesign

    Case descriptions

    Conclusions

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    Extending fresh borders

    Modality shift:

    From airplane to

    reefer container

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    The Agriculture Supply Chain

    Trade /

    Storage

    Primary

    Production

    Processing Retailing /

    distribution

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    Dominant Trends in Agriculture Supply Chains

    Dominant power of big retailing companies

    Supply Chain Consolidation Outsourcing

    Increased focus on traceability

    Wider sourcing of supplies: more and more globally Lower prices (low cost countries)

    Diversification of the product range beyond what can beproduced locally

    Year round product availability

    Advances in IT have increased the visibility of longsupply chain and therefore easier to manage

    Enhancing Export Competitiveness of Asian Fruits 2006

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    Trends in Agriculture Logistics

    Global supply networks Spatial concentration of production: economies of scale.

    Inventory centralization

    Longer distance movements: trunk/line haul and local delivery operation. Client order decoupling point: To get closer to market

    VerkoopInkoop Onderdelen

    fabricage

    Assemblage Distributie

    Assembleren op order

    KOOP

    Maken op order

    KOOP

    Inkoop en maken op order

    Maken voor centrale voorraad

    Maken voor lokalevoorraad

    KOOP

    KOOP

    KOOP

    Opplanni

    nggebas

    eerdeac

    tiviteiten

    Klantgerichte activite

    iten

    VerkoopInkoopInkoop Onderdelen

    fabricage

    Onderdelen

    fabricage

    AssemblageAssemblage DistributieDistributie

    Assembleren op order

    KOOP

    Maken op order

    KOOP

    Inkoop en maken op order

    Maken voor centrale voorraad

    Maken voor lokalevoorraad

    KOOP

    KOOP

    KOOP

    Opplanni

    nggebas

    eerdeac

    tiviteiten

    Klantgerichte activite

    iten

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    Trends in Agriculture Logistics

    Demand push: forecast

    Floating stock

    Modularity

    Value added services

    Variety of transport modes

    Demand pull from POS data

    Quick Response / ECR

    Break bulk / pre-pick and cross dock viaRDCs

    Flexible production schemes

    Predominantly road transport

    Efficiency Responsiveness

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    ServiceCosts

    Product Quality

    Fresh Logistics: Trade-off analysis

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    Trends in Agriculture Logistics

    Technological innovation

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    Trends in Agriculture Logistics

    Intermodality / modal shift Wider sourcing of supplies: sea/air road transport

    Supply chain costs: intense competition commodities

    Increased transaction - volume due to consolidation Limitations road transport: congestion, pricing, regulation, ..

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    Initial Quality Shelf lifeConditions

    + =

    Supply Chain Configuration and Added Value

    concepts (e.g. ready to eat products)

    Fresh Logistics: An impulse for Supply Chain redesign

    Logistics Opportunities

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    Fresh Logistics: An impulse for Supply Chain

    redesign

    Simulation and scenario analysis: Aladin

    Impact of different supply chain configurations / use of different transport modes on:shelf life, service, cost: Potential Solutions

    Agents:

    Food factory or grower: biological variation

    Transportation unit: type of transport + settings?

    Storing / distribution unit: climate control settings?

    Food product: specific product + quality decay model

    Demand controller

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    Fresh Logistics: An impulse for Supply Chain

    redesign

    Testing

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    Pilot scale testing

    Fresh Logistics: An impulse for Supply Chain

    redesign

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    Fresh Logistics: An impulse for Supply Chain

    redesign

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    Replace air by sea

    transport:

    Product: initial quality,cvs

    Climate conditions

    Packaging

    Logistics:

    lead time

    organisation

    Integral solution

    Case: From air cargo to deep sea shipping

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    Case: From air cargo to deep sea shipping

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    Sea harbour Ghana Rotterdam

    Importer

    (storage)

    Local production

    Case: Optimal fresh cut pineapple chain Ghana

    Rotterdam

    Scenario 1 Boat transport chain

    Barendrecht

    (portioning and order picking)

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    Scenario 2 Local processing Air transport chain

    Processing & portioningAirport Ghana Amsterdam

    Barendrecht

    (storage & order picking)

    Local Production

    Case: Optimal fresh cut pineapple chain Ghana

    Rotterdam

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    Scenario 3 Air transport chain

    Processing (bulk)Airport Ghana Amsterdam

    Barendrecht

    (portioning and order picking)

    Local Production

    Case: Optimal fresh cut pineapple chain Ghana

    Rotterdam

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    Case: Regional Consolidation

    movie

    Enhancing Export Competitiveness of Asian Fruits 2006

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    Agro parks: A systems innovation in the concept of urban

    agrofood production and processing

    Spatial clustering of different agro-production chains

    Spatial combination of agro-processing and non-agrofunctions (building, industrial estate or region)

    Scale increase in production further enables industrialprocessing

    Application of principles of industrial ecology, i.e. mutualuse of waste and by-products

    Reduction of transport and veterinary risks

    CRUX: clustering provides context for sustainableinnovations

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    Agropark development: From traditional production

    towards chain production

    Raw

    MaterialsProcessing

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    Basic principle: Systems redesign while focussing on

    issues that matter in sustainable development.

    Planet: From focus on production chain towards

    focus on flows of energy and matter.

    People: From focus on the technical systemtowards focus on organisation and knowledge

    management.

    Profit: Focus on integral production network for

    improved chain relations, cost reduction and

    quality management.

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    Gehu Lake

    Eco-Agrosightseeing

    district(Agropark)

    Central residentsand service districtGreen environment

    industrial district

    Ecologicalrecreation

    district

    Park is part of suburban development plan for Changzhou City:

    Replacement existing agricultural holdings elsewhere in the polder. Recreation and sightseeing function for local residents.

    Theme in the park Holland landscape and agriculture.

    Agro Park: ExamplesWAZ-Holland Park, Changzhou, China

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    WAZ-Holland Park (China)

    Spatial clustering ofChinese and Dutch Holdings.

    Intensive exchange of remainders and byproducts in central processing unit.

    Combination with market place and sightseeing park Planned start: 2007

    BonsaiChicken

    Turtles

    Dairy

    Composting

    facility

    Pot plants

    Deer

    MushroomsVegetables in

    multi-story

    greenhouse

    Central processing

    of remainders and

    by products

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    Thanks for your attention

    Wageningen University & Research centre

    Agrotechnology & Food Sciences Group