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Dinalog full proposal Project plan

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Dinalog full proposal Project plan



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Dinalog full proposal


Project plan


Da Vinc3i

Dutch Agricultural Virtualized International Network with Coordination, Consolidation, Collaboration and Information availability.


15 november 2010



Summary

The horticultural sector in the Netherlands is of world-class quality, and serves as main trading hub for Europe. The sector as a whole has a huge impact on the Dutch economy, being the largest exporter of fresh-products in Europe, the top-3 largest exporter in the world with still significant opportunities for further growth. Despite the current leading position, the sector needs to look forward and innovate to stay in the lead. Today, most horticultural products physically pass through the auction houses on their fixed routes from (inter)national growers to (inter)national customers to allow for physical inspection and quality control. However, several market developments stimulate the chain to become an efficient (virtual) horticultural network, in which cut flowers, plants and other products are delivered to customers taking different (direct) routes. The sector wants to (continue to) be the (virtual) horticultural trading hub of Europe, and thus action is required in order not to loose ground. Cross-dock centers and hubs (tradeparcs) are being set-up in Europe (linking local with global flows) and the sector is searching for efficient coordination and control mechanisms for the complete logistics network to consolidate flows and fulfill market demands. However, this is not an easy task as the sector is characterized by a large number of independent SMEs (many growers, traders, and small LSPs) and a large cooperative auction each with their own objectives and views on roles and functions of parties in the supply chain network.
Our project objective is to strengthen the international leading competitive position of the Dutch horticulture sector in a global, virtualized trade network by researching (1) the opportunities for new coordination, consolidation and collaboration concepts in extended international tradeparc networks, and (2) the possibilities for making chain information directly and real-time available and usable to support decision making of all partners in the horticultural network. This proposal links to the Transport Hubs in Control program: it develops new network coordination concepts and building blocks for a voluntary information infrastructure and corresponding IT architecture, resulting in an improved use of the logistics infrastructure.
Developing these concepts in this sector with unique characteristics (e.g. many small actors, rapid product quality changes, global-for-local combined with local-for-local flows, high demand and supply uncertainty, etc.) poses specific research issues providing ample room for innovative scientific contributions. We define five work packages:

(WP1) Scenarios for an international virtualized horticultural trade world

Focus in this package is to decide upon a number of interesting network designs and network management structures for the coming 10 years, given insight in future demand and supply patterns, technological developments as well as logistics and quality management developments.



(WP2) Design of value-added logistics services

Within the defined scenarios, the functional specifications for potential coordination, consolidation and collaboration concepts are researched. Focus in this package is the design of value-added logistics services, comprising flexible and robust prediction, planning and control models and algorithms for inventory, packing and transportation management, considering real-life complexity, uncertainty and dynamics.



(WP3) Virtual information exchange and transparency

This package aims to develop a knowledge base that contains the following capabilities: 1) a repository of the application services, 2) reference information architectures, 3) an internet platform, and 4) methods and tools for the configuration of run-time information systems. The knowledge base supports the design and instantiation of systems for the information exchange and transparency in virtual logistic horticulture networks. It gives access to the basic ICT infrastructure functionality and can support value-added services by linking horticultural partners through web-based information architectures.



(WP4) Business models for network coordination

The network coordination concepts lead to the development, adoption and implementation of a new institutional framework, new sets of decision rights and associated new revenue and risk sharing models. Effective business models need to be identified for different design scenarios, considering their scaling potential including value generation models. Important is to understand how the mental shift towards acceptance of new solutions by all stakeholders can be achieved.



(WP5) Integration, implementation and knowledge dissemination

In this WP we focus on four elements, i.e. (i) the integration of all findings of the other WPs into feasible and supported scenarios, (ii) the assessment of preliminary findings in pilot studies, (iii) valorization of findings, and (iv) knowledge dissemination within and to other sectors as well as to the educational system.


During the project, the findings of all packages are integrated resulting in innovative and validated concepts & tools for handling fresh products in virtual trade networks and challenging demo-projects as well as high-level scientific publications. This project will contribute to innovation from an academic perspective on four aspects:

  • coordination, consolidation & collaboration concepts, models and algorithms for perishable products with high supply and demand uncertainty;

  • dynamic network design concepts incorporating product quality development;

  • building blocks for a voluntary new ICT infrastructure;

  • development of effective business models for this sector with its specific characteristics.

With the dynamic voluntary coordination concept for virtualized trade based on planning and control models and quality management, the physical position of The Netherlands as the global Horticultural Hub will be strengthened, while the Greenports will also become a leading Information Gateway for Europe. Well organized product quality controls are a precondition for the development and implementation of new control mechanisms.

Part A: Orientation and Project Goals
Motivation

The horticultural sector in the Netherlands is of world-class quality, and serves as main trading hub for Europe. The sector as a whole has a huge impact on the Dutch economy, being the largest exporter of fresh-products in Europe, the top-3 largest exporter in the world with still significant opportunities for further growth. The sector generates a yearly € 6.6 billion surplus on the Dutch Balance of Trade, representing 21% of the total surplus. Nowadays, almost one out of three trucks is filled with products of the Agrosector and one out of ten with flowers and plants. These numbers are expected to increase in coming years (see annex 1 for further details).


Despite the current leading position, the sector needs to look forward and innovate to stay in the lead. Today, most horticultural products physically pass through the auction houses on their fixed routes from growers to customers to allow for physical inspection. However, several market developments change the chain to become a (virtual) horticultural network, in which cut flowers, plants and other products are delivered to customers taking different (direct) routes. Some important developments and challenges in the sector are (Verloop et al., 2009; Greenports Holland Strategic Vision 2040):


  • Increasing end-customer demands and a growing political pressure to reduce logistic movements. One of the main logistics challenges for the sector is to deal with high levels of dynamics and uncertainty in both supply and demand, considering product perishability and multiple modes of transportation. This leads to the need for a high speed and effective cold chain management in the complete network using advanced ICT and process technologies;

  • Rise of new markets in Eastern Europe and new production areas in Africa and Southern Europe (including local-for-local production);

  • Increasing market role of supermarkets and other large retailers (>30%) demanding higher delivery frequencies and more value-added services;

  • Lack of information exchange and coordinated planning and control systems resulting in significant improvement opportunities in transport and transaction efficiency. This is largely due to the large number of independent SMEs (many growers, traders, and small LSPs) and a large cooperative auction that each have their own objectives and views on roles and functions of parties in the supply chain network;

  • Various marketing channels requiring dedicated tailor-made business models for product lines, service level and price levels. They require different logistics solutions and have different product quality requirements resulting in fewer opportunities for joint approaches and a need for specialized partners. There is a need for horizontal (as well as vertical) cooperation to realize effective fulfillment in time for the complete assortment;

  • Increased virtualization of trading, reducing the need for products to pass specific control points and enabling direct delivery. As a result more and more goods flows could by-pass the Netherlands, jeopardizing the competitive position of the sector.

The sector wants to (continue to) be the (virtual) horticultural trading hub of Europe, and thus action is required in order not to loose ground (Levelt, 2010; Verdouw, 2010). Cross-dock centers and tradeparcs (distribution hubs with commercial functions) are being set-up in Europe (linking local with global flows) and the sector is searching for efficient coordination and control mechanisms for the complete logistics network to consolidate flows and fulfill market demands.


Developing network coordination, consolidation and collaboration concepts in this sector poses a number of challenging research issues providing ample room for innovative scientific contributions. Next to the points mentioned above, we mention three in particular:

  • One of the main logistics challenges for the sector is to deal with high dynamics and uncertainty in supply and demand, considering multiple modes of transportation. Critical here is fresh product quality as well as the available and needed volume in time on a specific place. The sector is characterised by last-minute changes and rush-orders and products are very perishable (e.g. some flowers lose 15% of their value each day) resulting in a need for high speed and effective cold chain management in the complete network.

  • Product related information standards (especially on a dynamic feature such as product “quality”) as well as data availability and accuracy are still a huge problem in this sector, except for logistics transportation units, thus constituting important sources of uncertainty and ambiguity;

  • Implementation of new coordination, consolidation and collaboration concepts (also via the exchange of more information) as well as scaling up is difficult, due to the lack of effective business models, including value generation models (“verdienmodellen”), specifically designed for this sector.




Relation to Dinalog´s innovation themes

This proposal links to the Transport Hubs in Control program: it develops new network coordination concepts (including network designs) and building blocks for a voluntary information infrastructure and the corresponding IT architecture, resulting in an improved use of the infrastructure in the Greenports. As such, the project also links to the 4C program.


Based on the outcomes of this research project, we expect the physical position of The Netherlands as the global Horticultural Hub to be strengthened, while the Greenports will become a leading Information Gateway for Europe. The project is closely related to and will also build upon results from Dinalog projects 4C4More and Extended Single Window. Interaction and exchange of ideas is guaranteed due to the involvement of some researchers in both projects.
With the dynamic voluntary coordination concept for virtualized trade based on planning and control models and quality management, the physical position of The Netherlands as the global Horticultural Hub will be strengthened, while the Greenports will also become a leading Information Gateway for Europe. Well organized product quality controls are a precondition for the development and implementation of new control mechanisms.



Objectives and goals

Key question for the sector is how to (keep and) strengthen its competitive position as a whole in Europe, whilst dealing with an increase in virtual trading and a request for more direct international deliveries, dynamically combining both local and global flows. Should the sector internationalise and establish tradeparcs outside the Netherlands? What are implications for information visibility and prediction and planning concepts? It is clear that multiple scenarios can be defined in which different actors have different roles and functions, in which information availability differs, and in which different distribution management concepts can be used between grower and final end customer.


The project objective is to strengthen the international leading competitive position of the Dutch horticulture sector in a global, virtualized trade network by researching (1) the opportunities for new coordination, consolidation and collaboration concepts in extended international tradeparc networks, and (2) the possibilities for making chain information directly and real-time available and usable to support decision making of all authorized partners in the horticultural network.
We have defined the following goals:

  1. To contribute substantially to the development of new scientific knowledge in the specific domains of operations management and supply chain management (in particular logistics, information and quality management), operations research, alliances and innovation management – but foremost in the interdisciplinary developments linking these disciplines. We will give 24 presentations on this topic at international conferences and publish over 20 articles in ISI-journals. Most will be published in the years 2012-2015 due to long process throughput times.

  2. To contribute to the further development of the sector by:

    1. definition of innovative and accepted designs of tradeparc networks including innovative distribution management concepts and value-added services as well as insight in the requirements on essential resources;

    2. developing and designing a number of innovative and validated concepts and tools:

      • Models for commercial and logistics planning and control of supply chains;

      • Functional specifications of a multi-stakeholder horticultural service platform;

      • Development of a proof of concept of an Agrologistics IT platform;

      • ’Attractive’ business models.




  1. To initiate 4 start-ups (potentially located at the Dinalog Campus) related to the developed concepts, tools and ICT infrastructures, for example,

    1. Consultants that help companies in translating virtualization scenarios to their own business practices. This holds for as well on strategic level (business plan developments) as on operational level (e.g. cross-dock center layout, etc.);

    2. Companies that set-up ICT services to facilitate virtual trade and logistics control;

    3. Companies that help in sales and promotion of products to international markets;

    4. Companies that set-up long distance cold chains, using sophisticated technologies and infrastructures.

  2. To improve performance of current transport flows in Europe reducing both mileage and CO2 emissions. This might go up to 50% for specific supply chains, especially when road transport is being replaced by train or short-sea transport.

  3. To create and/or upgrade around 3.000 jobs in horticulture supply chain management, which represent around 200 million Euro of added value – see next section for more information.

  4. Active involvement of 24 MSc and BSc students (6 per year) in the development and implementation process, resulting in human capital development as well as direct knowledge dissemination and creation at high schools and involved universities. This will also result in multiple lectures and master classes in existing course programs.

  5. Active involvement of 100-200 SMEs in the total project. Over 20 SMEs will be involved in supervision of students (that will focus on dedicated research questions for the particular SME involved within the scope of the complete project). Later on in the project we will start pilots and set up demonstration projects to implement and further develop the concepts and tools.

  6. Active knowledge dissemination to non-participants within the sector as well as outside the sector via open accessible conferences and Dinalog workshops.

Considering the significance of this sector for the Dutch economy, this project contributes considerably to the ambition of Dinalog to become the European market leader in the logistics control of transnational goods flows, in which coordination activities take place from the Netherlands. It is clear that the many independent companies (i.e. growers, traders, transporters) have to increase supply chain collaboration to maintain their competitive advantage in the future. We are therefore very proud to present the current consortium (which will definitely grow in number of participant in the coming years) that is very much interested in researching the “best way to go fore worth”.





Expected results

Through a virtual (global) agrologistics service platform, goods and information flows can be managed integrally, resulting in more transparent, reliable, trustworthy, secure, and cost-effective horticultural supply chains. The logistic horticultural chains set up in this way provide an answer to tailor-made customer requirements, deliver the best (demanded) quality of the horticultural products, in accordance with (inter)national government rules and regulations, be sustainable and provide excellent logistic services against acceptable costs.


At the moment, the Netherlands is the top horticultural trading hub in the world, and this research project strengthens this position in the future. The horticulture sector in the Netherlands is concentrated in the so-called Greenports. Greenport(s) Holland is a network, representing the Dutch cluster of businesses related to horticulture, including arboriculture and floriculture. Greenport(s) Holland is about local and remote food production, innovation, knowledge, research & development (with a.o. Wageningen University as a key global player), food technology, wholesale, international trade & exports, food logistics and renewable energy supply.
Greenport(s) Holland represents on an average yearly basis (Source: Leaflet “Greenport(s) Holland network exploring EU 2020 challenges”, 2010):

  • 12.000 hectares of glass house production area in the Netherlands and 4000 hectares abroad (growing)

  • 140.000 hectares of production area in the open field

  • 7-8 billions Euro worth of local fresh production (2,1 billion Euro horticulture and 4,9 billion Euro flori and arboriculture in 2009)

  • 13.500 enterprises primary on fresh produce and another 15.300 up and down the chain

  • 290.000 jobs directly related to fresh produce and 455.000 to the total horticulture cluster

  • Export of 14,5 billion Euro worth of fresh products

  • A yearly 6,6 billion Euro surplus on the Dutch Balance of Trade; representing 21% of the total surplus

  • Net added value of 1 billion Euro on Dutch technology supply

  • Net added value of 2,5 billion Euro on Dutch quality seeds and young plants and cuttings

This project strengthens the position of the existing horticultural companies in the Netherlands, and attracts new ones. The estimated impact of this project is that around 3.000 jobs will be created and/or upgraded in horticulture supply chain management, which represent around 200 million Euro of added value. This totals around 1-2% of all business in the horticultural sector in the Netherlands. More information about this project impact is given in the following figure:




Figure 1. Overview of estimated value of extra logistics activities in 2020 due to Da Vinc3i
The Da Vinc3i project will create new and/or upgrade existing jobs in horticulture supply chain management by 2020. These activities lead to more Value Added logistics (VAL) and Value Added Services (VAS) in the supply chains, e.g. making bouquets of cut flowers more centrally against lower cost, add substances to the product in order to keep them longer fresh, developing and using packages, and to corresponding warehousing and transport activities in the European network, e.g. as Trade Parks all over Europe. Especially through chain management and VAL/VAS activities value is created for the Dutch economy, using support activities in e.g. material handling, product certification and guarantee, and specialized education.



Relation to government policy

The (new) Dutch government actively supports and stimulates Greenports in the Netherlands as one of the main economic drivers. Greenports Holland contributes significantly to the EU ambitions “stronger EU-position in global trade”, “Maintain food security for EU-citizens” and “Support public Health”, and adds to EU ambitions “Fight Climate Change” and “Decrease EU-independence on energy”. Finally, being the developer of Intellectual property on production technology and processing, on logistic solutions for transport, handling and storage and just in time delivery and on seed upgrading and plant multiplication, Greenports Holland contribute to the EU ambitions “Knowledge based global player” and “Knowledge and Technology exporting power”.

On national level we are supported by the network organization installed by the Ministry of Agriculture, ‘Platform Agrologistiek’, which aims to improve the sustainability of agrologistics.



Orientation

Companies and knowledge institutes cooperate to develop a conceptual framework regarding new coordination concepts to reach a more sustainable and viable national and international performance in the handling of fresh products in virtual trade networks where actors performing coordination tasks have no or limited physical inspection possibilities on goods traded or handled. As a consequence routes through the network followed by physical products and resources may be decoupled from associated information routes and coordination and control tasks. This project will contribute to innovation from an academic perspective on four aspects, namely:



  • prediction & planning concepts and consolidation & coordination concepts for perishable products with high demand and supply uncertainty;

  • dynamic network designs incorporating high supply and demand uncertainty as well as product quality development (including maturing and decay);

  • development of effective business models with their properties for a sector that is characterized by many independent SMEs and a large differentiation in sourcing and market segments;

  • building blocks for a voluntary new ICT infrastructure containing a knowledgebase (“Greenbase”) that can be used to get adequately functioning information systems for configured processes. A Greenbase includes the following capabilities: 1) a repository of application services, 2) reference information architectures, 3) an internet platform, and 4) methods and tools for the configuration of run-time information systems.

This research proposal appeals to innovations on the level of implementation. These innovations are of different types. First of all, as described above, we have to do with new coordination, prediction and planning concepts associated with supply chain processes which heavily rely on virtualization. That virtualization is then to be brought about by the mentioned new ICT infrastructure encompassing a Greenbase. Thirdly innovations are enabled by implementing a vast range of now affordable technologies, in particular ICT in the routines of logistics in the Greenports. Examples of new technologies encompass RFID, Automatic Identification Technology, Sensors, communication networks, robots, etc. The specific characteristics of this sector (a high number of small enterprises, fresh products, etc.), requires new adjustments to the use these techniques, which can only be developed by implementing them in practical pilots. Another type of innovation is the institutional innovation: new logistic coordination concepts require new types of co-operation and of business models.


Researchers proposed in this project have a long history of participation in public-private partnership projects. Examples are projects within AKK, KLICT, Transforum, Transumo, Senter Novem and Pieken in de Delta projects. All of these projects are agri-food and supply chain oriented thus constituting a solid base for further development. Further we have been involved in both project and program management of some of these programs. In addition we have participated in a number of EU funded projects; part of which are mainly ICT oriented and part are again supply chain oriented. Finally, in the context of mentioned international projects and international organizations the researchers are well embedded in the international scientific communities and well aware of the state of the art.
More details on the state of the proposed scientific research work in the proposal to the international state of the art are given in the description of the individual work packages.



References

  1. C.M. Verloop, C.N. Verdouw, J. Wolfert, A.J.M. Beulens, Y. Dijkxhoorn, J.C.M.A. Snels, G.M. Splinter, Tuinbouw Integraal Digitaal (TID), Inventarisatie, analyse en programmavoorstel, Rapport 2009-098, December 2009, Projectcode 4085400, LEI Wageningen UR, Den Haag

  2. Greenports Holland Strategic Vision 2040.

  3. PhD Dissertation Melika Levelt, 2010, Global Trade and the Dutch Hub, UvA

  4. PhD Dissertation of Cor Verdouw, 2010, Business Process Modelling in Demand driven Agri-Food Supply Chains: A reference framework, Wageningen University


Part B: Activities and Work Packages

Before we define the work packages, we first discuss some specific developments and sector characteristics that result in the research challenges on the level of the design and management of logistics processes in more detail.


High uncertainty in volume, quality and time

One of the main logistics challenges for the sector is to deal with strong dynamics and uncertainty in supply and demand, regarding fresh product quality as well as the available volume in time on a specific place. The sector is characterized by last-minute changes and rush-orders. Very specific to the horticultural sector is the difficulty to predict the exact quality of fresh produce before it has been harvested. The prediction of these quality changes is even more difficult during the trade, transport and storage processes (some flower varieties lose 15% of their value each day resulting in potentially large product losses if logistics is not organized adequately). At the same time there is a trade-off between expensive measures that can prolong the vase life of the flowers and the use of slower and cheaper transport modalities. Typically, next to biological variations, the quality of flowers and plants is determined by time and environmental conditions (such as temperature and humidity during transport). Environmental conditions may be influenced by, for example, the type of packaging, way of loading and the availability of temperature conditioned transportation means and warehouses. Customers demand guarantees regarding quality specs and this places strict demands on the network concepts used in the sector. As a consequence, the required prediction and planning concept and accompanying logistics system need to be very flexible, enabling last minutes changes and reallocations, but also provide a robust multi-modal planning (compared to the many rush orders and transports at the moment).


Collaboration in demand-driven and supply-driven supply chains

The sector makes a difference between two types of marketing channels: “retail” (including supermarkets, garden centers and construction outlets) and “detail” (specialist shops). Retail industry has seen significant consolidation and concentration, which led to domination of the market by large retailers (Dobson et al. 2001). Retail sells flowers and plants as by-product and aims for large volumes of specific products guaranteed via long-term (preferred supplier relationship) contracts and given prices. Specialist shops often gain their competitive advantage due to a deep product assortment (and hence small volumes per individual product) and a focus on high-quality products (Huddleston et al. 2009). They market value-added products via small-scale shops using day-to-day prices and volumes available. In both channels, the vase life is one of the most important product attributes (for flowers nowadays about 7 days). Expectations are that in time retail and detail will find an equilibrium in which both have a market share of about 50%. Retail chains will be demand driven whereas detail chains will remain foremost supply driven (using the virtual auction clock). Order lead times are continuously being reduced and there is a trend to smaller order batch sizes. Still, many transport orders are communicated very late resulting in rush activities and reduced efficiency. Furthermore, there is a lack of transport status information, with the result that growers get telephone calls about the whereabouts of their product – something they have no insight in. Clear definitions of roles in the supply chain as well as more advanced information exchanges and advanced planning concepts are needed to match supply with demand effectively.


New distribution strategies due to virtualization

In a demand-driven virtualized trade and logistics networks, physical product flows are separated from information and commercial transaction flows. Next to this, virtualization makes trading methods and price formation more and more admissible and transparent. E-trade and KOA (“Kopen Op Afstand”, buying from a distance) are used by customers far away to buy directly at either producers or auctions, but have challenging implications for the (value-adding) activities of all stages between production and markets. It implies that flowers and pot plants are sourced internationally, which are, instead of being transported via the market place in the Netherlands, directly distributed via a logistics hub network in Europe to regional customers. These customers require value-added products packed and delivered within a complete assortment with specific logistics service constraints. Each actor in the supply chain is confronted with uncertainty regarding the availability and price of specific products on time fulfilling all requirement, esp. quality. Collaboration between different actors in the chain, vertical as well as horizontal, may improve the efficiency of processes as harvesting and transport, and reduce product waste. Key issue is that opportunities arise for different tradeparc network configurations as well as route and process (e.g. where to assemble and pack?) configurations of supply chains through the network.


Virtualization of information exchange and transparency

Virtual networks and their coordination are a means to stay or even become more competitive. That position is then to be guaranteed by being an important logistic hub for Dutch products and imported products on their way to the hinterland and by being a coordinator of choice and provider of ICT infrastructure and services that allow the coordinator to also coordinate product flows that are not physically routed through the Netherlands. As a result there is a need for transparency that provides information about partners, products, resources and logistics operations in order to trade and operate effectively. It requires, for example, the formal description of a specific flower or plant and its dynamic features such as its “quality”. Important in this context is to acknowledge that part of this information is ‘objectively’ defined and part is ‘interpreted’ by the actors in the horticultural network thus constituting important sources of uncertainty and ambiguity. In order to be able to support decision making and execution of tasks in the logistics network, there is a need for a new ICT infrastructure containing a knowledgebase (“Greenbase”) that can be used to get the proper information system functionality available for configured processes and the right information at the right place at the right moment in the network (part of the features envisaged for Greenbase can also be found in the existing Portbase). A Greenbase includes the following capabilities: 1) a repository of the application services, 2) reference information architectures, 3) an internet platform, and 4) methods and tools for the configuration of run-time information systems.


Use of containers and conditioned co-modalities

Multi-modal transport receives increased attention in this sector. Rail and sea transport using conditioned containers instead of speedy air transport has already proven to be a successful technology (Greenrail and CC, 2010). This holds true especially for import flows as these containers usually contain large volumes of the same flower or plant type. In export flows multiple types of flowers or plants have to be distributed together, but they each respond differently to specific temperatures and humidity. Cymbidium, anthurium and other exotics require a warm environment, others such as roses and chrysanthemum need cold to preserve shelf lives. If these new conditioned technologies can be used to transport products over long distances, it could also provide us with opportunities to hold stock in hubs over Europe. The above shows it is relevant to research the optimal temperature when facing different quality decay profiles for different products; as well as given the demand for multiple products which products could be combined in a common (flexible) container transported via rail, road, water or air.


Research challenges

We conclude that these developments result in the following research challenges:



  1. Increased possibilities for demand driven logistics concepts, linking growers in different international sourcing areas directly to customers thereby enabling new collaborative supply and logistics management concepts – while considering the continuous need for supply driven concepts (using the (virtual) auction clock).

  2. Coordinated logistics control concepts with emphasis on responsiveness and guaranteeing product availability and quality to customers (including supply planning, capacity planning, transportation management and inventory management), i.e. focus on consolidation of product flows and improved matching of uncertain supply with variable demand.

  3. Dynamic configurations of logistics routes from source to sinks (including the use of conditioned containers and multi-modalities), with redefined locations for specific processing activities, such as packing, combining, labelling, quality control, and sorting, incorporated in the logistic hub network.

  4. Dynamic configurations of information systems (and technical solutions such as a Greenbase), advanced information exchanges and transparency to facilitate virtual trade and advanced coordination and collaboration concepts.

Based upon these research challenges, we define five work packages, resulting in new business creation and scientific publications. The research is done by three PhDs, and a Postdoc, in close cooperation with the business partners and researchers from TNO, WUR, VU and TU/e. A number of MSc students complement the researchers on specific research questions. Note that our research focus is aligned and complementary with other Dinalog projects, 4C4More and Extended Single Window, via the involvement of some of the same TU/e and VU-researchers to guarantee complimentarily contributions.

Overview of work packages

Phase 1

Start up phase



Duration: 1 year

Work Package 1:

Scenarios for an international virtualized horticultural trade world



Phase 2:

Research and development



Duration: 4 years

Work Package 2:

Design of value-added logistics services and planning models



Work Package 3:

Virtual information exchange and transparency



Work Package 4:

Business models for horticultural network coordination



Phase 3:

Implementation, valori-sation & dissemination



Duration: 2 years

Work Package 5:

Integration, Implementation and Knowledge dissemination



Deliverables/

Milestones



Papers in ISI-journals, Conference contributions, MSc theses, PhD theses, workshops and presentations for practitioners, spin-of companies, new jobs, human capital

Figure 2 shows the various areas of the new coordination, consolidation and collaboration concept for the international horticultural trade network, and presents an overview of the work packages. All work packages have close interactions and depend on each other to realize the objective and defined goals.




  • WP1 will set the scene and result in insight in the most relevant logistics network designs and management concepts for different virtualisation scenarios defined for the different types of supply chains (e.g. retail vs. detail and flowers vs. plants);

  • WP2 will build upon the network designs defined in WP1 and research the functional specifications for potential coordination, consolidation and collaboration concepts within these scenarios. Focus in this package will be the design of value-added logistics services, comprising flexible and robust prediction, planning and control models and algorithms for inventory, packing and transportation management, considering the increased complexity, uncertainty and dynamics.

  • WP3 will research the opportunities for advanced information exchanges and architectures of knowledge bases to facilitate the advanced planning and control concepts developed in WP2.

  • WP4 will research the implications of scenarios for the businesses involved and come up with business models that work for specific settings in open collaboration networks. Nice to have advanced tools and decision support models for planning and control, but if the actors in the chain are not keen on using them and are unwilling to collaborate no gains are taken. This WP should therefore base its research on the findings and developments of WP1, 2 and 3.

  • WP5 entails valorisation (including integration of findings and pilot studies) and knowledge dissemination, which is an activity that takes place as of day 1 until the end of the project. That is why it is an overarching package that embraces all other WPs, learning from project results as well as giving input to it (esp. via pilot studies and workshops).

In the following pages we will describe the 5 work packages in detail.





Figure 2. Overview of the work packages


  1   2   3   4   5

  • Part A: Orientation and Project Goals Motivation
  • Relation to Dinalog´s innovation themes
  • Relation to government policy
  • Part B: Activities and Work Packages
  • Overview of work packages Phase 1
  • Work Package 2

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