innovative logistics in floriculture · 2015-01-27 · 22-10-2014 1 prof. dr.ir. jack g.a.j. van...

22-10-2014

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Prof. dr.ir. Jack G.A.J. van der VorstWageningen Universiteit

Dutch Design Week, ABN AMRO House, Eindhoven, 21 oktober 2014

Innovative Logistics in Floriculture

Prof. dr. ir. Jack van der Vorst

Wageningen Universiteit

Dutch Design Week, ABN AMRO House, Eindhoven

21 oktober 2014

1 Developments and needs

2 The DaVinc3i project

3 DaVinc3i scenarios

4 Project findings

5 Lessons learned and discussion

Today’s bouquet

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(Inter)national sourcing locations

(Inter)national

market segments

Auction & Traders

Hubs

• 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

Characteristics of the supply chain network

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Network/Market

expansion

Internatio-nalis

ationResponsible

Virtualisation

of trade

Major developments

4

Country Growth 2011

Kenia +17%

Ethiopië +14%

Ecuador -21%

Total +1%

Since 2008:• Average grower 10% bigger –

2012: 1,63 ha/grower

• Average transaction

15% smaller

Region Growth 2012

Core region +5%

Scandinavia +10%

South-Europe -5%

M/E Europa -5%

Russia +34%

European Commission: CO2 emission reductions in transport

Tesco Homeplus Virtual Subway Store in South Korea

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Challenge for the future

Eastern European markets, virtualization

Direct flows skipping Dutch network

Virtualization, conditioning technologies

Redesign logistics network

5What collaborative actions are needed in the sector?




4 Project findings


Today’s bouquet

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Dutch Agricultural Virtualized International

Network with Consolidation, Coordination,

Collaboration and Information availability

(2011-2015)

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Objective

2 1 3

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

synchromodaldistribution strategies

transparency and an advanced information

infrastructurecollaborative logistics

DaVinc3i: research questions

Product/origin

Destination

Hub

• What kind of hub-network is needed?

• Where should VAL activities take place?

• What kind of hub-network is needed?

• Where should VAL activities take place?

• What responsive quality-driven logistics concepts are needed?

• What synchromodal distribution strategies can be developed?

• What responsive quality-driven logistics concepts are needed?

• What synchromodal distribution strategies can be developed?

Consolidation – Coordination - Collaboration

How to earn and share in collaborative

logistics?

How to earn and share in collaborative

logistics?

What IT systems are needed to support such logistics networks?

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Betrokkenheid sector

Universiteiten Kwekers HandelsbedrijvenLogistieke

Dienstverleners




4 Project findings


Today’s bouquet

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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

Retail ketensRetail ketens


Detail-winkelsDetail-

winkels


winkels

WebshopWebshop

WebshopWebshop

12 Commerciële scenario’s

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Flora provider

Flora provider

Flora marktFlora marktFlora

providerFlora

provider



winkels

WebshopWebshop


Flora marktFlora marktDetail-

winkelsDetail-

winkels

Fresh provider

Fresh provider

KwekerKweker

KwekerKweker

KwekerKweker

KwekerKweker

KwekerKweker

KwekerKwekerWebshopWebshop

evolutie

revolutie

evolutie

revolutie

evolutie

revolutie

ConsumentConsument

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Logistics activities

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Some occur more

than once

Sales to Consumer

Selling

Value Added Logistics

Verification AssemblyDelivery to buyer/LSP

Selecting Sorting

Transport

Harvesting

Bundling

Quality Control

Buffering

May have multiple

instances

Scenario 1: Dis-intermediatie

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Telers

Detailhandel

Retailketens

ConsumentVirtueel

platform

Telers FloraProvider Retailketens Consument

Scenario 2: Re-intermediatie

Telers ConsumentWebshop

coöperatie

Scenario 3: Voorwaartse integratie

Potential business models

Daghandel – big data!

Termijn handel

Levering via

Bloemisten, LSP ??

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4 Project findings


Today’s bouquet

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Central Logistics Hub Virtual Orchestration

Emergence of Orchestrated Trading Networks

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DaVinc3i: how to link growers with consumers?

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KwekerConsu-

ment

EU hub network for potted plants?

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100

81

72

100

73

62

100

91

80

Costs Time CO2

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-16%

-38%

Logistiek Dienstverlener Exporteur

-6%

-22%

Collaboration of traders in returnable items

Possible savings

CustomerRetailerManufacturer DistributorSupplier

Push/pull view of supply chain processes

Pull processPush process

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Efficiency Responsiveness

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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%.

Location A Location B

Virtuele

Plant

Virtuele

Locatie A

Virtuele

Locatie B

Conditieupdate

Plant locatieupdate

Conditieupdate

Via internet real-time inzicht in productkwaliteit

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• Historic quality

trajectory based on

measurements

• Simulated quality

based on decay models

• Alarms for expected

quality problems

• Advices for

interventions

Mock-up quality simulation screen

• … 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.

Co-operatieve business modellen

Key partners

(belangrijke

partners)

Key activities

(belangrijke

activiteiten)

Value

proposition

(waarde-

propositie)

Customer

relationships

(klant-

relaties)

Customer

segments

(klant-

segmenten)

Key

resources

(belangrijke

middelen)

Channels

(kanalen)

Cost structure

(kostenstructuur)

Revenue streams

(opbrengsten)

Osterwalder en Pigneur, 2010

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Crucial factors

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Essential is gain sharing in ‘unequal’ alliances

Motives for

cooperation

Contributions to

the alliance

Role of third

party if present

‘One size fits all’ is not the best approach to membership of an alliance: allow for different options

Willingness to

accept

Perspective on

‘equality’

Negotiation

power

Principles of

cooperation

Availability of

multiple types

of membership




4 Project findings


Today’s bouquet

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Logistics Intelligence5.0

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normal or PSE

acid

Logistics Connectivity

Intelligente logistieke concepten

Real-time Virtualization


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Lessons learned: infrastructure


• Built common infrastructure (interconnected multi-modal hub

network) for consolidation and economies of scale

• Create closed cold chain to consumer fridge

• Re-allocate VAL activities: use conditioning techniques to

create inventories and buffers

• Standardize (conditioned) containers

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Lessons learned: information systems


• Create integrated business information systems

• Interoperability systems, harmonise product coding

• Use one primary network, e.g. as in telecom – e.g.

• Built an open trading platform

• Know your customers

• Create transparency: exchange POS, product quality info

• Manage data ownership, data reliability and security


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normal or PSE

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Lessons learned: planning and control


• Establishing flexible order fulfilment processes, and predict

changes in supply and demand

• Align your planning process with partners and pool

inventory

• Built a central planning and dynamic pro-active control system

for collaboration, coordination & consolidation

• Virtualisation eliminates added value of intermediaries

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• 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 !!

Succesfactoren DaVinc3i

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More information?

www.davinc3i.com

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Jack van der Vorst

Project Director DaVinc3i

Professor of Logistics and Operations

Research, Wageningen University

E [email protected]

T +31 (0)317 – 485 645

Contact

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Robert Ossevoort

Project Manager DaVinc3i

Wageningen University

E [email protected]

T +31(0)317 - 481 367

W www.davinc3i.com

T @davinc3i

innovative logistics in floriculture · 2015-01-27 · 22-10-2014 1 prof. dr.ir. jack g.a.j. van...

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