Modeling Freight Consolidation in a Make-To-Order Supply Chain: A Simulation Approach

Shipment consolidation is one of main initiatives to reduce CO2 emissions and transportation cost. It reduces the number of shipments per customer and reduces transportation costs by using larger shipments. This paper investigates the temporal consolidation process in a central consolidation center in a make-to-order supply chain. This research was motivated by a case study of a design furniture company that has many suppliers and customers in large parts of Europe. Simulation was used to check the effect of a new and a special time-based temporal consolidation on the response time in outbound logistics. A soft delivery deadline that is less than the average lead time was used because of the long lead time. Arena Software was used to model the supply chain in order to find the best circumstances to use consolidation. Results showed that temporal consolidation could be more effective when order preparation time is with larger variability. The useful waiting is more when there is at least one order every four days. A formula that approximates the percent of reduced shipments was found. Furthermore, many shipments can be reduced without severely affecting the average response time. The value of the study is that it investigates consolidation problems in a high-mix low-volume environment that was overlooked by previous research.

Acyclic Mechanism Design for Freight Consolidation

Freight consolidation is a logistics practice that improves the cost-effectiveness and efficiency of transportation operations, and also reduces energy consumption and carbon footprint. A “fair” shipping cost-sharing scheme is indispensable to help establish and sustain the cooperation of a group of suppliers in freight consolidation. In this paper, we design a truthful acyclic mechanism to solve the cost-sharing problem in a freight consolidation system with one consolidation center and one common destination. Applying the acyclic mechanism, the consolidation center decides which suppliers’ demands ship via the consolidation center and their corresponding cost shares based on their willingness to pay for the service. The proposed acyclic mechanism is designed based on bin packing solutions that are also strong Nash equilibria for a related noncooperative game. We study the budget-balance of the mechanism both theoretically and numerically. We prove a 2-budget-balance guarantee for the mechanism in general and better budget-balance guarantees under specific problem settings. Empirical tests on budget-balance show that our mechanism performs much better than the guaranteed budget-balance ratio. We also study the economic efficiency of our mechanism numerically to investigate its impact on social welfare under different conditions.

The Perspectives of Supply Chain Management Using Natural Knowledge From 3D Blockchain Technologies and Avatar-Based and Geographic Information Systems (GIS)

The blockchain restores control and ownership of information back to its rightful owner, thus eliminating dependencies on central authorities and third parties. These material chains are immensely complex; they can be subject to the laws and regulations of more than 200 countries and territories, and they are heavily influenced by many different factors ranging from freight consolidation to the timing of hundreds of concurrent shipments. This chapter is about algorithmic modeling of supply chain management using natural knowledge from a 3D-hybrid blockchain as a dragon chain.

Assessing Blockchain Technology application for freight booking business: a case study from Technology Acceptance Model perspective

Purpose The purpose of this study is to develop a framework for a freight consolidation company to adopt blockchain for the shipping community. Our research critically examine the challenges faced by a global shipping company that offer freight consolidation businesses and explore the use of Blockchain technology to enhance the competitiveness and sustainability of freight booking operations. Design/methodology/approach This paper is a case study, ECU Worldwide, with focus on transforming their operations using blockchain technology for the freight booking industry. As the case is explorative in nature, the research aim to unearth the complex blockchain adoption phenomenon in the industry as the technology is very nascent at present. The research is primarily grounded on Technology Acceptance Model (TAM) theory. Findings The research finds that blockchain technology supports solving many issues and inefficiencies of global shipping operations but there are some barriers that they need to overcome. The research provides a framework and recommendations for global company to consider when considering Blockchain technology for implementation. Our research finding shows that smart contracts can be set up at critical points along with the shipment route namely the storage, customs, carrier, transporters and consignee stage to ensure greater security and transparency. Research limitations/implications The research provides recommendations to key stakeholders involved in freight forwarding segment of logistics industry while adopting blockchain technology. Apart from the methodological limitation of the research, the research is limited to Singapore in terms of geographical coverage. Practical implications The drivers and barriers identified in the study can give practitioners insight of using blockchain for the industry. The proposed framework can assist companies in the shipping industry to prepare themselves to adopt blockchain for the community. Originality/value This case study is the first of its kind to examine the use of blockchain to explore the adoption in logistics Industry in Singapore and perhaps worldwide.