Sustainability assessment of last-mile logistics and distribution strategies: The case of local food networks

Abstract Current trends related to increased sustainability requirements, the application of new digital technologies, and changes in consumer behavior have disrupted conventional food supply chains, entailing challenges for the last mile logistics and distribution of food products. The main aim of this study is to develop a toolset for exploring the sustainability potential of last mile logistics and distribution strategies, employing (1) a centralized distribution network with a click & collect option, (2) a decentralized distribution network with a home-delivery option, and (3) a distributed network based on a crowd logistics concept. For this, a system dynamics (SD) simulation and a multi-criteria decision aid (MCDA) were applied to assess the sustainability performance of these distribution channel options for a case study of a local food cooperative and a logistics service provider in Austria. The sustainability potential of developing a new logistics system in collaboration with these players has been estimated for the first time, while considering the dynamic interplay of all relevant sustainability elements within operational, tactical, and strategic planning. The results show that an integration of the two players into a distributed network strategy based on a crowd logistics concept is the most viable and sustainable option. This highlights the significant role of the logistics sector in proactively innovating services to make sustainable choices easier for the customer.

[1]  Nuno Videira,et al.  Participatory systems mapping for sustainable consumption: Discussion of a method promoting systemic insights , 2014 .

[2]  Zachary F. Meisel,et al.  Crowdsourcing—Harnessing the Masses to Advance Health and Medicine, a Systematic Review , 2013, Journal of General Internal Medicine.

[3]  Ana Paula F. D. Barbosa-Póvoa,et al.  Opportunities and challenges in sustainable supply chain: An operations research perspective , 2017, Eur. J. Oper. Res..

[4]  Alexander H. Hübner,et al.  Distribution systems in omni-channel retailing , 2016 .

[5]  Tzu-Li Chen,et al.  A particle swarm approach for optimizing a multi-stage closed loop supply chain for the solar cell industry , 2017 .

[6]  E. Hultink,et al.  The Circular Economy - A New Sustainability Paradigm? , 2017 .

[7]  Jarosław Wątróbski,et al.  Outline of Multicriteria Decision-making in Green Logistics☆ , 2016 .

[8]  Reza Baradaran Kazemzadeh,et al.  PROMETHEE: A comprehensive literature review on methodologies and applications , 2010, Eur. J. Oper. Res..

[9]  A. Borshchev,et al.  From System Dynamics and Discrete Event to Practical Agent Based Modeling: Reasons, Techniques, Tools , 2004 .

[10]  Jutta Geldermann,et al.  Software review: “Decision Lab 2000” , 2001 .

[11]  Wim Verbeke,et al.  Consumers' attitudes and behaviour towards safe food in China: A review , 2013 .

[12]  Frank Teuteberg,et al.  Understanding and assessing crowd logistics business models – using everyday people for last mile delivery , 2017 .

[13]  Stefan Seuring,et al.  Assessing the role of dynamic capabilities in local food distribution: a theory-elaboration study , 2019, Supply Chain Management: An International Journal.

[14]  Tim Gruchmann,et al.  Local and Sustainable Food Businesses: Assessing the Role of Supply Chain Coordination , 2019, Innovative Logistics Services and Sustainable Lifestyles.

[15]  Hui Han,et al.  A fuzzy TOPSIS method for performance evaluation of reverse logistics in social commerce platforms , 2018, Expert Syst. Appl..

[16]  F. Jia,et al.  E-commerce in agri-food sector: a systematic literature review , 2017 .

[17]  M. Roccotelli,et al.  A Review of Last Mile Logistics Innovations in an Externalities Cost Reduction Vision , 2018 .

[18]  José Geraldo Vidal Vieira,et al.  An AHP-based framework for logistics operations in distribution centres , 2017 .

[19]  Tung Le,et al.  A hybrid tabu search based heuristic for the periodic distribution inventory problem with perishable goods , 2016, Ann. Oper. Res..

[20]  Raffaele Zanoli,et al.  Effect of information about organic production on beef liking and consumer willingness to pay , 2010 .

[21]  M. Espinouse,et al.  Systematic literature review on city logistics: overview, classification and analysis , 2018, Int. J. Prod. Res..

[22]  F. Caputo,et al.  A multiple buyer – supplier relationship in the context of SMEs’ digital supply chain management* , 2017 .

[23]  Stefan Seuring,et al.  Explaining logistics social responsibility from a dynamic capabilities perspective , 2018, The International Journal of Logistics Management.

[24]  John D. Sterman,et al.  System Dynamics: Systems Thinking and Modeling for a Complex World , 2002 .

[25]  S. Ali,et al.  Modeling the interrelationships among barriers to sustainable supply chain management in leather industry , 2018 .

[26]  P. Vincke,et al.  Note-A Preference Ranking Organisation Method: The PROMETHEE Method for Multiple Criteria Decision-Making , 1985 .

[27]  Joseph Sarkis,et al.  Green product deletion decisions: An integrated sustainable production and consumption approach , 2018, Ind. Manag. Data Syst..

[28]  Peter J. Byrne,et al.  A case analysis of a sustainable food supply chain distribution system—A multi-objective approach , 2014 .

[29]  Niels A. H. Agatz,et al.  Strategies for Handling Temporal Uncertainty in Pickup and Delivery Problems with Time Windows , 2018, Transp. Sci..

[30]  Vasanth Kamath,et al.  A System Dynamics-Based Simulation Model to Analyze Consumers’ Behavior Based on Participatory Systems Mapping – A “Last Mile” Perspective , 2019, Innovative Logistics Services and Sustainable Lifestyles.

[31]  Stefan Seuring,et al.  Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature , 2014 .

[32]  Ari Paloviita Consumers' sustainability perceptions of the supply chain of locally produced food. , 2010 .

[33]  Tatiana Filatova,et al.  A Review of Urban Residential Choice Models Using Agent-Based Modeling , 2014 .

[34]  Hördur V. Haraldsson,et al.  Developing System Dynamics Models from Causal Loop Diagrams. , 2004 .

[35]  Alexander H. Hübner,et al.  Last mile fulfilment and distribution in omni-channel grocery retailing: a strategic planning framework , 2016 .

[36]  Carlos Carrascosa,et al.  A Crowdsourcing Approach for Sustainable Last Mile Delivery , 2018, Sustainability.

[37]  J. Nurminen,et al.  A peer-to-peer platform for decentralized logistics , 2017 .

[38]  Kenneth K. Boyer,et al.  THE LAST MILE CHALLENGE: EVALUATING THE EFFECTS OF CUSTOMER DENSITY AND DELIVERY WINDOW PATTERNS , 2009 .

[39]  D. Tilman,et al.  Comparative analysis of environmental impacts of agricultural production systems, agricultural input efficiency, and food choice , 2017 .

[40]  Yi-Ming Wei,et al.  Integrated weighting approach to carbon emission quotas: an application case of Beijing-Tianjin-Hebei region , 2016 .

[41]  Mark P. Sharfman,et al.  Regulation, Business, and Sustainable Development , 2000 .

[42]  A. McKinnon,et al.  Comparative carbon auditing of conventional and online retail supply chains: a review of methodological issues , 2011 .

[43]  L. Reisch,et al.  Sustainable food consumption: an overview of contemporary issues and policies , 2013 .

[44]  Cathy Macharis,et al.  Range-based Multi-Actor Multi-Criteria Analysis: A combined method of Multi-Actor Multi-Criteria Analysis and Monte Carlo simulation to support participatory decision making under uncertainty , 2018, Eur. J. Oper. Res..

[45]  C. Mulligan,et al.  Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems , 2016 .

[46]  Milena Janjevic,et al.  Downscaling the consolidation of goods – state of the art and transferability of micro-consolidation initiatives , 2013 .

[47]  Petri Niemi,et al.  Developing a service offering for a logistical service provider—Case of local food supply chain , 2014 .

[48]  Mehmet Soysal,et al.  Modelling food logistics networks with emission considerations: The case of an international beef supply chain , 2014 .

[49]  Xaver Neumeyer,et al.  Sustainable business models, venture typologies, and entrepreneurial ecosystems: A social network perspective , 2018 .

[50]  C. Macharis,et al.  Crowd logistics: an opportunity for more sustainable urban freight transport? , 2017, European Transport Research Review.

[51]  A. Gunarathne,et al.  Sustainable Food Supply Chain Management: An Integrated Framework and Practical Perspectives , 2018 .

[52]  Marco Cinelli,et al.  Analysis of the potentials of multi criteria decision analysis methods to conduct sustainability assessment , 2014 .

[53]  René de Koster,et al.  Distribution structures for food home shopping , 2002 .

[54]  Gyöngyi Kovács,et al.  Reducing transportation emissions : A reaction to stakeholder pressure or a strategy to increase competitive advantage , 2014 .

[55]  Joe Miemczyk,et al.  Supply chain management and the circular economy: towards the circular supply chain , 2018 .

[56]  Chung-Shan Yang,et al.  Revisiting the resource-based view on logistics performance in the shipping industry , 2017 .

[57]  Pierre Louis Kunsch,et al.  Visualising multi-criteria weight elicitation by multiple stakeholders in complex decision systems , 2019, Operational Research.

[58]  Marco Melacini,et al.  E-fulfilment and distribution in omni-channel retailing: a systematic literature review , 2018 .

[59]  Jagjit Singh Srai,et al.  Consumer-driven e-commerce: A literature review, design framework, and research agenda on last-mile logistics models , 2018 .

[60]  Renzo Akkerman,et al.  Quality, safety and sustainability in food distribution: a review of quantitative operations management approaches and challenges , 2010, OR Spectr..

[61]  Harish Patil,et al.  Inventory Management Challenges for B2C E-commerce Retailers , 2014 .

[62]  Simon French,et al.  The varied contexts of environmental decision problems and their implications for decision support , 2005 .

[63]  Ross Cullen,et al.  Consumer attitudes regarding environmentally sustainable wine: an exploratory study of the New Zealand marketplace , 2009 .

[64]  J. Springael,et al.  A multicriteria-based system dynamics modelling of traffic congestion caused by urban commuters , 2016 .

[65]  Matthias Ehrgott,et al.  Multiple Criteria Decision Analysis , 2016 .

[66]  Petter Olsen,et al.  The components of a food traceability system , 2018, Trends in Food Science & Technology.

[67]  Maria Rosaria Guarini,et al.  A Methodology for the Selection of Multi-Criteria Decision Analysis Methods in Real Estate and Land Management Processes , 2018 .

[68]  Valerie Belton,et al.  Structuring problems for Multi-Criteria Decision Analysis in practice: A literature review of method combinations , 2017, Eur. J. Oper. Res..

[69]  Christine Bauer,et al.  "Crowd logistics": the contribution of social crowds in logistics activities , 2016, Int. J. Web Inf. Syst..

[70]  A. Piorr,et al.  Food beyond the city – Analysing foodsheds and self-sufficiency for different food system scenarios in European metropolitan regions , 2017, City, Culture and Society.

[71]  Y. De Smet,et al.  Visual PROMETHEE: Developments of the PROMETHEE & GAIA multicriteria decision aid methods , 2009, 2009 IEEE International Conference on Industrial Engineering and Engineering Management.

[72]  M. Borza The Connection between Efficiency and Sustainability – A Theoretical Approach☆ , 2014 .

[73]  B. Smith,et al.  Developing sustainable food supply chains , 2008, Philosophical Transactions of the Royal Society B: Biological Sciences.

[74]  Jagjit Singh Srai,et al.  Hierarchical modelling of Last Mile logistic distribution system , 2014 .

[75]  J. Guthrie,et al.  Nudging Consumers toward Better Food Choices: Policy Approaches to Changing Food Consumption Behaviors , 2015 .

[76]  N. Wang,et al.  Reliability Modeling in Spatially Distributed Logistics Systems , 2006, IEEE Transactions on Reliability.

[77]  M. R. A. Jokar,et al.  A bi-objective stochastic programming model for a centralized green supply chain with deteriorating products , 2014 .

[78]  Henrik Pålsson,et al.  Exploring past achievements in last mile logistics research : A literature review , 2019 .

[79]  Jesús González-Feliu,et al.  City logistics for perishable products. The case of the Parma's Food Hub , 2015 .

[80]  D. Vlachos,et al.  A system dynamics modeling framework for the strategic supply chain management of food chains , 2005 .

[81]  P. Engelseth,et al.  Adapting Supply Chain Management for Local Foods Logistics , 2016 .

[82]  Morteza Yazdani,et al.  Analysis in Material Selection: Influence of Normalization Tools on COPRAS-G , 2017 .

[83]  Thibaut Démare,et al.  Modeling logistic systems with an agent-based model and dynamic graphs , 2017 .

[84]  Oksana Mont,et al.  Corporate Supply Chain Responsibility: Drivers and Barriers for Sustainable Food Retailing , 2015 .

[85]  R G Coyle,et al.  System Dynamics Modelling: A Practical Approach , 1996 .

[86]  Mukesh Kumar,et al.  Identifying design criteria for urban system ‘last-mile’ solutions – a multi-stakeholder perspective , 2016 .

[87]  Nils Lerche,et al.  Integration of prospect theory into PROMETHEE - a case study concerning sustainable bioenergy concepts , 2016 .

[88]  S. Deshmukh,et al.  Preference Ranking Organization Method Of Enrichment Evaluation (Promethee) , 2013 .

[89]  George T. S. Ho,et al.  A B2C e-commerce intelligent system for re-engineering the e-order fulfilment process , 2018, Expert Syst. Appl..

[90]  Khalid A Aljohani,et al.  A Stakeholder-Based Evaluation of the Most Suitable and Sustainable Delivery Fleet for Freight Consolidation Policies in the Inner-City Area , 2018, Sustainability.

[91]  Faiza Khan,et al.  Evaluating the urban consumer with regard to sourcing local food: a Heart of England study , 2010 .

[92]  Theodor J. Stewart,et al.  Problem Structuring and Multiple Criteria Decision Analysis , 2010, Trends in Multiple Criteria Decision Analysis.