This research is based on the principles of systems thinking, i.e. to take a total end to end supply chain perspective in which transport is an integral part. In particular, it studies the role of:
- Lean thinking in aiding the banishment of waste information. Waste information is most evident by the bullwhip effect which is a system induced disturbance that leads to uncertainty for decision makers;
- eCommerce in enabling the development of novel supply chain pathways that ensure information transparency such as market demand and inventory levels. A good case in point is Vendor Managed Inventory (VMI) with flexibility in inventory management, the use of demand and inventory information in production planning and shipments in full vehicle loads.
- integrated transport management techniques such as Factory Gate Pricing (FGP). This is based on holistic management of the transport network looking to coordinate transport flows through consolidation, matching flows and backhauling.
The main objective was to generate generic benefits that can enhance the effectiveness and efficiency of freight transport. In particular the objectives were to analyse and document logistics, transport and management practices involved in the partners' current supply chains. The assessment of vehicle utilisation enables the benchmarking both intra and inter industrial sectors. A further objective considered the implications of public policies on supply chains. Through modelling and simulation, the impact of efficiency improvements, modal shift, policy changes and supply chain management on sustainable supply chain performance were evaluated.
The project featured a number of mini-projects with the industrial partners, to provide detailed case studies. The research utilised value stream and process activity mapping for documenting and analyzing the integration of transport in supply chains. For re-engineering the supply chains simulation methodology is used.
The project outputs are:
• A version of value stream mapping that considers environmental impacts such as emissions;
• The most appropriate supply chain performance measures for sustainable distribution such as emissions per item;
• Development of Overall Vehicle Effectiveness performance measure (OVE);
• Simulation models to evaluate the impact of demand amplification on transport including the application of ICT developments;
• Tools to improve the interface between manufacturing and distribution to increase the efficiency of both domestic and international transport;
• Different methods for integration of transport in supply chains including VMI and FGP;
• A cost model was produced and developed into the LEFT2 GB strategic freight mode choice and generation model, which was used to estimate 2010 effects of five scenarios identified by ITeLS.
Alternative strategic tools include the establishment of transport networks, the creation of seamless operations and transport process flows; vendor managed inventory and the collaborative planning and management of transport. The research suggests that these strategies often involve collaboration between customers and suppliers – transport should not be seen as a consumable, but instead as part of the overall service package to the end customer.
No results directly relevant to this theme. However, please note that some findings relevant to the project's key theme (Integration) are generically applicable.
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No policy implications directly relevant to this theme. However, please note that some policy implications relevant to the project's key theme (Integration) are generically applicable.