Supply Chain Coordination on Urban Goods Transport: Individual Vs Aggregated Benefits and Costs.



Supply Chain Coordination on Urban Goods Transport: Individual Vs Aggregated Benefits and Costs.

Authors

Iván Darío Cárdenas, Universidad Nacional De Colombia, Juan Pablo Castrellón, Universidad Nacional De Colombia, Carlos Eduardo Sánchez, Universidad Nacional De Colombia

Description

The paper analyses the effect of individual logistics policies on the aggregated supply chain transport performance, based in information obtained trough a field study.

Abstract

In recent years awareness about urban logistics has been increased, externalities of goods transport have received attention due several social impacts that had not been taken into account before. The proposed solutions tend to promote better and more creative ways to use transport in a more rational way using successful passengers transport models. In available works, some authors have identified relevant differences between goods and passenger transport and they argue about the viability of applying the same approach for both types of transport.

Another challenge is related to the restrictions imposed by local governments to goods transport, even when is known that logistics and goods transport externalities cause high social costs, it is known that these activities also produce benefits adding value and providing good and supplies necessary for business activities and human welfare and cannot be restricted without considering the effects on the economic activities. Studying specific supply chains behaviors and dynamics and proposing means of coordination based in supply chain management is an alternative that has proven to be successful in many cities.

In this work we analyzed a manufacturing supply chain of the bakery industry located in a small city in Colombia. Because the country can be categorized as an emergent economy, several variables unattended in other studies affect the logistics system (i.e. Nontraditional vehicles, lack of IT, vast majority of SMES among others). Using agent based simulation we analyzed the effects on transport of different ordering policies and different coordination mechanisms and how a more efficient goods transport can be achieved.

Results of the work provide insights on the effects of coordination mechanisms and individual ordering policies in goods transport, and the effect of these variables on levels of the supply chain performance and the individual business profits. Based on the results a coordination mechanism that accomplishes better performance measures is proposed. The use of a bottom-up modelling methodology also proves to be a valuable tool when analyzing those effects and is recommended for supply chain analysis.

This study was developed as part of the 1101-521-28833 research project sponsored by Colciencias and Universidad Nacional de Colombia. The project purpose was to propose logistics management tools for the SMES that are part of the bakery industry in Palmira, Valle del Cauca. The study was carried using personal in-business surveys on eighty different bakeries and three suppliers, the information gathered was related to the logistics flows and processes of ten different types of bakery supplies.

Publisher

Association for European Transport