Institut für Produktionswirtschaft und Logistik22.01.14 1

IntroductionWorking Group: Food LogisticsSpring 2016 – Christian Fikar

University of Natural Resources and Life Sciences, ViennaInstitute of Production and Logistics

Institut für Produktionswirtschaft und Logistik

Introduction

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Institute of Production and Logistics at BOKU, Vienna − Focus on problem and

application orientedresearch

− Six main research fields− Timber Industry− Bioenergy− Food Logistics− Intermodal Transportation− Humanitarian Logistics− Sparkling Science

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Food Logistics - Motivation

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Numerous areas of importance with great research potential− Roughly one third of all food is lost or wasted world-wide (FAO, 2016)

− Lack of coordination between supply chain actors− Poor forecasting and inefficient inventory management− Mishandling and delays in transportation and logistics

Source: UN (2015)

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Food Logistics - Motivation

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− Transportation and logistics relate to 9.4% of energy consumption in the food industry within the EU (Monforti-Ferrario et al., 2015)− Inefficiencies: truck idling, low loading factors, empty backhauls

− Stake of food price related to logistics expenses range from 6.74% (GMA, 2010) to up to 48% (Schwartz, 2011)− High potential of optimisation techniques to lower costs and reduce lead times

Source: UN (2015)

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Food Logistics - Motivation

Current Trends Concentration and globalisation Increased product variety

− Mass customisation, customised food Niche markets

− Lactose-free, Gluten-free, Dairy-free, etc. Stricter environmental regulations

− CO2 emissions− Food waste− Traceability

Bioeconomy strategy of the European Commission− Strong support for related research activities

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Source: Mars, Incorporated (2016)

Source: European Commission (2016)

Institut für Produktionswirtschaft und Logistik

Food Logistics - Motivation

Specifics in Food Logistics Cold chain management

− Product durability, lead times, shelf-life Food safety

− Traceability (RFID)− Quality management and assurance

Waste and hazards − Reverse logistics, milk-run− Hazardous goods transportation

Consolidation and horizontal cooperation− Collection center, distribution networks− Shared equipment and resources

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Source: Collins, E. (2015)

Source: Food Safety Magazine (2014)

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Research Fields of Focus

Supply Chain Optimisation Supply Chain Coordination Inventory Optimisation

Sustainable Supply Chain Management Green Procurement Green Logistics

Operations Research Facility Location Vehicle Routing Supply Chain Simulation

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Source: Groupe Casino (2009)

Source: Own Illustration

Source: Own Illustration

Institut für Produktionswirtschaft und Logistik

Research Topics of Interest The impact of transport disruptions on food supply

− Food industry highly vulnerable to disruptions in transportation− Break in cold chain leads to spoilage− Food safety and traceability issues reduce flexibility − Delays reduce shelf life and value of goods− Increased costs for storage

− Impact of disruptions:− L.A/Long Beach Port lockout: Estimated loss to farmers of approximately

$500 million per week (Pullman and Wu, 2012)− Transport distances of mineral water are predicted to increases up to 90%

as a result of a heat wave in Germany (SEAK, 2015)

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Source: Fikar et al. (2016a)

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Research Topics of Interest Consolidation and distribution strategies for food deliveries

− Stricter environmental regulations and urbanisationcomplicate last mile-distribution of food products

− High potential for horizontal cooperation in the food industry to share resources

− Various solution methods in operations research available to optimise routing and scheduling of resources− Vehicle routing− Facility location planning− Multi-echelon optimisation

− Development of decision-support systemsSpring 2016 9

Source: Fikar et al. (2016b)

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Summary

Conclusions High need for research in food logistics to meet future challenges in

the industry Currently little focused research on logistics-related topics available Wide range of interesting research questions in both a domestic and

global context Large synergies with various BOKU core topics New Working Group ‚Food Logistics‘ established

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Summary

Next steps Introduction and promotion of the working group to various

stakeholders Establishment of industry collaborations and research partnerships Acquisition of research funding (FFG, FWF, Horizon2020)Questions? Contact us at

christian.fikar@boku.ac.at or manfred.gronalt@boku.ac.at Further information: http://www.wiso.boku.ac.at/en/pwl/

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References

Statistics FAO (2016) Food Loss and Food Waste. http://www.fao.org/food-loss-and-food-waste/en/ (15.03.2016). GMA (2010) The GMA 2010 Logistics Benchmark Report - Performance reaches all-time high during

economic depression. The Grocery Manufacturers Association and IBM. Washington, D.C. Pullmann, M., Wu, Z. (2012) Food Supply Chain Management. Taylor & Francis Group, New York, NY. Monforti-Ferrario et al. (2015) Energy use in the EU food sector: State of play and opportunities for

improvement. Joint Research Centre, European Commission, Luxembourg. Schwartz, JZ. (2011) Food Prices: Eating the Cost of Logistics. The World Bank, 20.06.2011.

http://blogs.worldbank.org/latinamerica/food-prices-eating-the-cost-of-logistics (16.03.2016) SEAK (2015) Vermeidung von Engpässen in der Lebensmittelversorgung. Projekt Sicherung der

Lebensmittel und Lebensmittelwarenketten. Dialogveranstaltung, 10. Dezember 2015, Hamburg.

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ReferencesImages Collins, E. (2015) France food waste law comes with fines and prison time. Politico.

http://www.politico.eu/article/france-food-waste-law-comes-with-fines-and-prison-time/ (15.03.2016). European Commission (2016) Bioeconomy - Policy.

https://ec.europa.eu/research/bioeconomy/index.cfm?pg=policy (16.03.2016) Fikar, C., Hirsch, P., Posset, M., Gronalt, M. (2016a) Impact of transalpine rail network disruptions: A

study of the Brenner Pass. Journal of Transport Geography 54, 122-131. Fikar, C., Gronalt, M., Hirsch, P. (2016b) A decision support system for coordinated last-mile distribution.

Expert Systems with Applications 57, 104-116. Food Safety Magazine (2014) IFT’s Global Food Traceability Center: Untangling the Food Supply Chain.

June/July 2014. http://www.foodsafetymagazine.com/magazine-archive1/junejuly-2014/ifte28099s-global-food-traceability-center-untangling-the-food-supply-chain/ (16.03.2016)

Groupe Casino, 2009. 2009 Annual and Sustainable Development Report. Saint-Etienne, France, http://www.groupe-casino.fr/IMG/pdf/CASINO_RA_EN_09.pdf, (15.03.2016).

Mars, Incorporated (2016) My MMs. https://www.mymms.com/configurator.do (16.03.2016) UN (2015) Sustainable Development – Knowledge Platform. United Nations,

https://sustainabledevelopment.un.org/ (16.03.2016)

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Thank you for your Attention!

University of Natural Resources and Life Sciences, ViennaDepartment of Economics and Social SciencesInstitute of Production and LogisticsManfred Gronalt (manfred.gronalt@boku.ac.at)Christian Fikar (christian.fikar@boku.ac.at)Feistmantelstraße 4, A-1180 ViennaTel: +43 1 47654-4426, Fax: +43 1 47654-4413

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