Innovative Logistics in Floriculture
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- Horatio Perkins
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1 Innovative Logistics in Floriculture Prof. dr. ir. Jack van der Vorst Dutch Design Week, ABN AMRO House, Eindhoven 21 oktober 2014 Today s bouquet 1 Developments and needs 2 The DaVinc3i project 3 DaVinc3i scenarios 4 Project findings 5 Lessons learned and discussion 2 1
2 Characteristics of the supply chain network (Inter)national sourcing locations Auction & Traders Hubs (Inter)national market segments Many independent SMEs (and a large cooperative) with own objectives High dynamics and uncertainty in supply and demand Product quality changes during distribution guaranteed vase life! Demand driven retail chains, supply driven detail chains Last-minute changes and rush-orders Dedicated tailored logistics concepts to differentiated market segments 3 Major developments Country Growth 2011 Kenia +17% Ethiopië +14% Ecuador -21% Total +1% Internatio-nalis ation Network/Market expansion Region Growth 2012 Core region +5% Scandinavia +10% South-Europe -5% M/E Europa -5% Russia +34% Responsible Since 2008: Average grower 10% bigger Virtualisation European Commission: 2012: 1,63 ha/grower Tesco Homeplus Virtual Subway Store in South CO Average transaction of trade 2 emission Korea reductions in transport 15% smaller 4 2
3 Challenge for the future Eastern European markets, virtualization Virtualization, conditioning technologies Direct flows skipping Dutch network Redesign logistics network 5 What collaborative actions are needed in the sector? Today s bouquet 1 Developments and needs 2 The DaVinc3i project 3 DaVinc3i scenarios 4 Project findings 5 Lessons learned and discussion 6 3
4 7 Dutch Agricultural Virtualized International Network with Consolidation, Coordination, Collaboration and Information availability ( ) 4
5 Objective insights into the effects of virtualisation on the leading role of the Dutch horticulture sector in a globalised trade network logistics ICT collaboration differentiated concepts in demand-driven supply chains Hub network design and flexible quality-driven concepts synchromodal distribution strategies transparency and an advanced information infrastructure collaborative logistics 9 DaVinc 3 i: research questions What responsive quality-driven logistics concepts are needed? What synchromodal distribution strategies can be developed? What kind of hub-network is needed? Where should VAL activities take place? How to earn and share in collaborative logistics? Product/origin Destination Hub What IT systems are needed to support such logistics networks? Consolidation Coordination - Collaboration 5
6 Betrokkenheid sector Universiteiten Kwekers Handelsbedrijven Logistieke Dienstverleners Today s bouquet 1 Developments and needs 2 The DaVinc3i project 3 DaVinc3i scenarios 4 Project findings 5 Lessons learned and discussion 12 6
7 Key scenario decisions Channel choice: Retail / Detail / Etail Personalisation: basic product or added value services Last mile solution: home delivery, depot, etc. Consumer/ Market Sourcing : regional, EU or global Replenishment mode: traditional or VMI Position Customer Order Decoupling Point (CODP) Direct transport or via EU hub network Consolidation in transport; modality: road, rail, water, air Logistics Containerisation with modified atmosphere Virtualisation logistic objects: products, quality, containers,.. Digital information exchange: order, transport, demand (POS), supply (planned availability), financial, etc. Technology 12 Commerciële scenario s Retail ketens Retail ketens Flora provider Kweker evolutie Retail ketens Retail ketens Kweker revolutie Detailwinkels Consument Detailwinkels Detailwinkels Detailwinkels Flora provider Flora markt Flora markt Kweker Kweker evolutie revolutie Webshop Webshop Fresh provider Kweker evolutie Webshop Webshop Kweker revolutie 14 7
8 Logistics activities May have multiple instances Selecting Harvesting Sorting Selling Bundling Transport Buffering Quality Control Verification Delivery to buyer/lsp Assembly Value Added Logistics Sales to Consumer Some occur more than once 15 Potential business models Scenario 1: Dis-intermediatie Retailketens Telers Virtueel platform Daghandel big data! Consument Detailhandel Scenario 2: Re-intermediatie Termijn handel Telers FloraProvider Retailketens Consument Scenario 3: Voorwaartse integratie Telers Webshop coöperatie Levering via Bloemisten, LSP?? Consument 16 8
9 Today s bouquet 1 Developments and needs 2 The DaVinc3i project 3 DaVinc3i scenarios 4 Project findings 5 Lessons learned and discussion 17 Emergence of Orchestrated Trading Networks Central Logistics Hub Virtual Orchestration 9
10 DaVinc 3 i: how to link growers with consumers? Kweker Consument 19 EU hub network for potted plants? Costs Time CO2 10
11 Collaboration of traders in returnable items Possible savings -22% -6% -38% -16% Logistiek Dienstverlener Exporteur Push/pull view of supply chain processes Efficiency Responsiveness Push process Pull process Supplier Manufacturer Distributor Retailer Customer 22 11
12 Towards demand driven processes From supply driven... to demand driven order fulfilment Resulting in 27% reduction of order-pick routes and increased processing capacities up to 15%. 23 Via internet real-time inzicht in productkwaliteit Virtuele Locatie A Virtuele Plant Virtuele Locatie B Location Conditie A update Plant locatie update Location B Conditie update 24 12
13 Mock-up quality simulation screen Historic quality trajectory based on measurements Simulated quality based on decay models Alarms for expected quality problems Advices for interventions Co-operatieve business modellen moeten in de sierteelt op ketenniveau worden gezien: het complete systeem van (al dan niet) samenwerkende partijen gaat over de creatie, levering en toe-eigening van waarde. De business modellen van individuele organisaties zijn daarvan afgeleid. Key partners (belangrijke partners) Key activities (belangrijke activiteiten) Value proposition (waardepropositie) Customer relationships (klantrelaties) Customer segments (klantsegmenten) Key resources (belangrijke middelen) Channels (kanalen) Cost structure (kostenstructuur) Revenue streams (opbrengsten) Osterwalder en Pigneur,
14 Essential is gain sharing in unequal alliances Crucial factors Motives for cooperation Principles of cooperation Willingness to accept Negotiation power Contributions to the alliance Perspective on equality Availability of multiple types of membership Role of third party if present One size fits all is not the best approach to membership of an alliance: allow for different options 27 Today s bouquet 1 Developments and needs 2 The DaVinc3i project 3 DaVinc3i scenarios 4 Project findings 5 Lessons learned and discussion 28 14
15 Glycongen concn. (µm ol glucose equiv./g) DFD normal normal or PSE Glycongen concn. (µm ol glucose equiv./g) DFD normal normal or PSE acid acid Intelligente logistieke concepten Logistics Intelligence Ultimate ph Logistics Connectivity Real-time Virtualization Lessons learned: infrastructure Logistics Intelligence Ultimate ph Logistics Connectivity Built common infrastructure (interconnected multi-modal hub network) for consolidation and economies of scale Create closed cold chain to consumer fridge Re-allocate Real-time VAL activities: use Virtualization conditioning techniques to create inventories and buffers Standardize (conditioned) containers 15
16 Glycongen concn. (µm ol glucose equiv./g) DFD normal normal or PSE Glycongen concn. (µm ol glucose equiv./g) acid DFD normal normal or PSE acid Lessons learned: information systems Logistics Intelligence Create integrated business information systems Interoperability systems, harmoniseproduct coding Use one primary network, e.g. as in telecom e.g. Built an Logistics open trading platform Connectivity Know your customers Create transparency: exchange POS, product quality info Manage data Real-time ownership, data Virtualization reliability and security Ultimate ph Lessons learned: planning and control Logistics Intelligence Establishing flexible order fulfilment processes, and predict changes in supply and demand Align your planning process with partners and pool Logistics Connectivity inventory Built a central planning and dynamic pro-active control system for collaboration, coordination & consolidation Real-time Virtualization Virtualisation eliminates added value of intermediaries Ultimate ph 16
17 Succesfactoren DaVinc 3 i Onderwerp dat tijdens project steeds relevanter is geworden Stevige collectieve, private bijdrage; niet alleen subsidieproject Bereidheid om verder te kijken dan eigen keuken en belangen Moeilijke ketenbrede discussie eerst gevoerd: scenario s Neutrale kennispartners die academische kennis praktisch maken via inzet studenten in concrete cases Voltijds neutrale business project manager die MKB rs actief betrekt en ondersteunt. Vele inhoudelijke bijeenkomsten met bedrijven; communicatie!! More information?
18 Contact Jack van der Vorst Project Director DaVinc 3 i Professor of Logistics and Operations Research, Wageningen University E jack.vandervorst@wur.nl T +31 (0) Robert Ossevoort Project Manager DaVinc 3 i Wageningen University E robert.ossevoort@wur.nl T +31(0) W 18
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