Warehouse consolidation in logistic clusters – Case of food industry

Globalization is affecting the world’s economic development. Internet provided a dramatic

increase in information and money transaction speed, therefore small markets are also growing

rapidly in the international arena. The focus of this paper is on logistic clusters of companies.

This includes mainly logistics services providers, such as transport, warehouse, 3rd party logistics

companies, distributors, forwarders and retailers, as well. Logistic clusters can be used to provide

competitive advantage for small markets. However, the main singularities of small market are

related to the partial freight distribution problem. Manufacturers tend to buy raw materials in low

quantities that may dramatically increase the price per pallet. In this article, the author’s

methodology offers to combine different types of warehouses and transportation methods. A case

study of small market’s food industry will amplify the possibilities of logistic cluster usage. It is

concluded that warehouses consolidation in the logistic clusters can dramatically reduce the cost

of food supply chain. Moreover, the implementation of a consolidation warehouse in a logistic

cluster can provide environmental and economic benefits, making clusters more attractive.

Additionally, the most important factors in food supply chain, such as distribution network of

flows from suppliers to customers combining transportation quantity and ordering size together

with conditioned temperature using refrigerated compartments in order to optimize logistic costs,

were indicated. As a result, the guidelines to the improvement of warehouses consolidation

process in the logistic clusters for food industry have been developed. In the future partial freight

optimization network will be in place to properly evaluate the economical possibilities of logistic

cluster usage in the food industry.

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positioned in Ireland, UK, Netherlands, Germany and Baltic States. A central warehouse is positioned in the center of Germany. Germany’s warehouse is close to the Baltic States and may be used to transport high quantities of products. Temperature required products might also be transported by this type of transportation. The main problem is that only large quantities of products may be transported by a railway. This is the reason why logistic clusters are offered to implement. The last type of warehouses is consolidation warehouses, which are located in UK, Netherlands and Baltic States. These Hội nghị Khoa học An toàn dinh dưỡng và An ninh lương thực lần 2 năm 2018 409 warehouses are used to gather and distribute partial freight. In Germany, Netherlands and UK, the cargo are gathered around the region, then loaded to full trucks and delivered to consolidation warehouse in Baltic States, where the cargo is distributed around the region. Moreover, because Baltic States are in East-West logistic corridor, the cargo may go through transit and then may be sent to other Eastern regions. To summarize, it is possible to conclude, that different warehouses and transportation type’s combination can provide proper competitive advantage. This type of logistic cluster may be implemented not only in the food industry. The main issue is to determine proper warehouse locations. Therefore, a warehouses localization model is still under investigation. CONCLUSION AND FURTHER RESEARCH The conducted methodology offers a way to efficiency use of different types of warehouses inside the logistic network. The method also considers the transportation possibilities with land, train and sea. Air transportation is not used regularly in the food industry. This conducted methodology can be used in other industries as well. The combination of several types of warehouses and their usage as a consolidation warehouse, where partial freight is distributed across the region may lead to competitive advantage in various industries, especially in the FMCG (Fast Moving Consumer Goods) industry. The research indicated that clusters in food distribution network together with different warehouses and transportation type’s combination with controlled temperature conditions can substantially reduce total logistic costs. The analysis of data received from the companies of food industry showed that due to above mentioned factors the transportation price per pallet can decrease up to 4 times. The development of logistic clusters with effective distribution network is good for industry promotion while logistic clusters create a large number of jobs. The optimal warehouse quantity and location by using computational models and numerical experiments is under investigation. This approach should be supported by implementing partial freight collection possibilities. The open issue is that logistics clusters are complex systems, so advanced heuristic, clustering and artificial intelligence methods needs to be implemented in the model. The model will be promoted to further point out relevant quality perspectives and its contribution for consolidation warehouses to logistic clusters. Further investigations will be concentrated on data collection in order to identify the validity of the model and the directions of logistics clusters evolution. REFERENCES [1] Accorsi R., Manzini R., Maranesi F., 2014, A decision-support system for the design and management of warehousing systems, “Journal of Computers in Industry”, 65(1). [2] Baskutis S., Navickas V., Gružauskas V., Olenceviciute D., 2015, The temperature control impact to the food supply chain, Proceedings of 20th International Conference "Mechanika 2015", 23-24 April 2015, Kaunas, Lithuania. Hội nghị Khoa học An toàn dinh dưỡng và An ninh lương thực lần 2 năm 2018 410 [3] Bosona T., Nordmark I., Gebresenbet G., Ljungberg D., 2013, GIS-based analysis of integrated food distribution network in local food supply chain, “International Journal of Business and Management”, 8(17). [4] Day M., Lichtenstein S., Samouel P., 2015, Supply management capabilities, routine bundles and their impact on firm performance, “International Journal of Production Economics”, 164. [5] Huang S., Wang Q., Batta R., Nagi R., 2015, An integrated model for site selection and space determination of warehouses, “Computers & Operations Research”, 62. [6] Keinanen O., Paajanen M., 2013, Rail Baltic growth strategy, Aalto University, Helsinki. [7] Lumiste R., Prause G., 2011, Baltic states logistics and the East-West transport corridor. [8] Magdalena B-D., 2011, An investigation of a new concept of world-class clusters in Europe – A case study of the Visegrad group of countries, “Journal of Competitiveness”, 2. [9] Navickas V., Baskutis S., Gruzauskas V., 2015, Logistic cost optimization in the food industry of small countries, “Journal of Management”, 26(1). [10] Nie P., Sun P., 2015, Search costs generating industrial clusters, “J. Cities”, 42. [11] Pekarskiene I., Susniene R., 2013, Features of the Lithuanian manufacturing industry development in the context of globalization, “J. Economics and Management”, 18(4). [12] Shqair M., Altarazi S., Al-Shihabi S., 2014, A statistical study employing agent-based modeling to estimate the effects of different warehouse parameters on the distance travelled in warehouses, “Simulation Modeling Practice and Theory”, 49. [13] World Bank Report, Logistics performance index, 2014, Available at: Access on: 23.05.2015. [14] Zhang M., 2013, A freight transport model for integrated network, service, and policy design, “Trail Thesis Series”, 77. TÓM TẮT Toàn cầu hóa đang ảnh hưởng đến sự phát triển kinh tế của thế giới. Mạng Internet làm gia tăng đáng kể tốc độ thông tin và giao dịch tài chính khiến cho các thị trường nhỏ cũng có cơ hội phát triển nhanh chóng. Bài báo này tâm trung vào cụm logistic của các doanh nghiệp. Cụm logistic bao gồm chủ yếu là các nhà cung cấp dịch vụ hậu cần, chẳng hạn như vận chuyển, kho bãi, công ty hậu cần bên thứ 3, nhà phân phối, giao nhận và các nhà bán lẻ. Các cụm logistic có thể cung cấp lợi thế cạnh tranh cho các thị trường nhỏ lẻ. Tuy nhiên, điểm mấu chốt của thị trường nhỏ lẻ liên quan đến vấn đề phân phối vận chuyển hàng hóa từng phần. Các nhà sản xuất có xu hướng mua nguyên liệu với số lượng ít làm tăng đáng kể giá mỗi pallet. Trong bài viết này, phương pháp tác giả đưa ra kết hợp các loại kho và phương thức vận chuyển khác nhau. Một nghiên cứu Hội nghị Khoa học An toàn dinh dưỡng và An ninh lương thực lần 2 năm 2018 411 điển hình về ngành thực phẩm của thị trường nhỏ sẽ phô diễn khả năng sử dụng cụm logistic. Việc hợp nhất kho bãi trong các cụm logistic có thể làm giảm đáng kể chi phí của chuỗi cung ứng thực phẩm. Hơn nữa, việc thực hiện một nhà kho hợp nhất trong một cụm logistic có thể mang lại lợi ích về môi trường và kinh tế, làm cho các cụm trở nên hấp dẫn hơn. Ngoài ra, các yếu tố quan trọng nhất trong chuỗi cung ứng thực phẩm, như mạng lưới phân phối dòng chảy từ nhà cung cấp đến khách hàng kết hợp số lượng vận chuyển và kích thước đặt hàng cùng với điều kiện nhiệt độ đảm bảo sẽ giúp tối ưu hóa chi phí hậu cần. Kết quả là các định hướng để cải thiện quá trình hợp nhất kho bãi trong các cụm logistic cho ngành công nghiệp thực phẩm đã được phát triển. Trong tương lai, mạng lưới vận chuyển từng phần được tối ưu hóa sẽ được dùng để đánh giá đúng khả năng kinh tế của việc sử dụng cụm logistic trong ngành công nghiệp thực phẩm. Từ khóa: Công nghiệp thực phẩm, cụm logistics, hợp nhất kho bãi.

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