1. Fresh Logistics:
New Opportunities with
an integral approach
Toine Timmermans
Wageningen UR
Quality in Chains
toine.timmermans@wur.nl
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
Enhancing Export Competitiveness of Asian Fruits 2006
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2. Extending fresh borders
Modality shift:
From airplane to
reefer container
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The Agriculture Supply Chain
Primary Trade / Processing Retailing /
Production Storage distribution
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3. 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 be
produced locally
– Year round product availability
– Advances in IT have increased the visibility of long
supply chain and therefore easier to manage
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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”
Inkoop Onderdelen Assemblage Distributie Verkoop
fabricage
KOOP
Maken voor lokale
en
viteit voorraad
e acti KOOP
eerd
g gebas
Maken voor centrale voorraad
lannin
Op p KOOP
Assembleren op order
KOOP
Maken op order
iten
KOOP a ctivite
Inkoop en maken op order erichte
Klantg
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4. Trends in Agriculture Logistics
“Efficiency” “Responsiveness”
• Demand pull from POS data
• Demand push: forecast
• Quick Response / ECR
• Floating stock
• Break bulk / pre-pick and cross – dock via
• Modularity RDC’s
• Value added services • Flexible production schemes
• Variety of transport modes • Predominantly road transport
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Product Quality
Fresh Logistics: Trade-off analysis
Costs Service
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5. 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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6. Fresh Logistics: An impulse for Supply Chain redesign
+ =
Initial Quality Conditions Shelf life
“Logistics Opportunities”
Supply Chain Configuration and Added Value
concepts (e.g. ready to eat products)
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Fresh Logistics: An impulse for Supply Chain
redesign
• Simulation and scenario – analysis: Aladin
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
“Impact of different supply chain configurations / use of different transport modes on:
shelf life, service, cost”: Potential Solutions
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7. Fresh Logistics: An impulse for Supply Chain
redesign
• Testing
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Fresh Logistics: An impulse for Supply Chain
redesign
• Pilot scale testing
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8. Fresh Logistics: An impulse for Supply Chain
redesign
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Case: From air cargo to deep sea shipping
Replace air by sea
transport:
• Product: initial quality,
cv’s
• Climate conditions
• Packaging
• Logistics:
– lead time
– organisation
• Integral solution Enhancing Export Competitiveness of Asian Fruits 2006
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9. Case: From air cargo to deep sea shipping
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Case: Optimal fresh cut pineapple chain Ghana –
Rotterdam
Scenario 1 Boat transport chain
Sea harbour Ghana Rotterdam
Local production
Importer
Barendrecht
(storage)
(portioning and order picking)
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10. Case: Optimal fresh cut pineapple chain Ghana –
Rotterdam
Scenario 2 Local processing – Air transport chain
Airport Ghana Amsterdam
Processing & portioning
Local Production
Barendrecht
(storage & order picking)
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Case: Optimal fresh cut pineapple chain Ghana –
Rotterdam
Scenario 3 Air transport chain
Airport Ghana Amsterdam
Processing (bulk)
Local Production
Barendrecht
(portioning and order picking)
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11. Case: Regional Consolidation
movie
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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-agro
functions (building, industrial estate or region)
• Scale increase in production further enables industrial
processing
• Application of principles of industrial ecology, i.e. mutual
use of waste and by-products
• Reduction of transport and veterinary risks
• CRUX: clustering provides context for sustainable
innovations
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12. Agropark development: From traditional production
towards chain production
Raw Processing
Materials
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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 system
towards 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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13. Agro Park: Examples
WAZ-Holland Park, Changzhou, China
Central residents
Green environment
and service district
industrial district
Eco-Agro
sightseeing
district
(Agropark)
Ecological
recreation
district
鬲湖
Gehu Lake
• 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.
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WAZ-Holland Park (China)
Central processing
of remainders and Composting Pot plants
by products facility
Mushrooms
Vegetables in
multi-story
greenhouse Deer
Chicken
Bonsai
Turtles
Dairy
• Spatial clustering of Chinese and Dutch Holdings.
• Intensive exchange of remainders and byproducts in central processing unit.
• Combination with market place and sightseeing park
• Planned start: 2007
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14. Combination of agropark, market place and
sightseeing park in WAZ-Holland Park
Market place:
•Education
•Showcase
•Hotels & restaurants
•Sales
Sightseeing
Park
•Recreation
•Education
•Demonstration
•Restaurants
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Conclusions
• Agrifood chains & networks are getting more
dynamic, insecure and complex
• Robust logistic redesign needs a multidisciplinary
and integral approach
• Modeling, visualization & simulation tools can
connect different disciplines
• Type of cases: from pragmatic, business driven to
visionary and ambitious
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15. Thanks for your attention
Agrotechnology & Food Sciences Group
Wageningen University & Research centre
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