Abstract
Logistics networks need to handle globally growing transportation volumes in cost efficient and sustainable configurations. This research explores the impact of the oil price on the optimal degree of centralization of logistics networks through the fluctuation of transportation costs. The impact of the degree of centralization on greenhouse gas emissions of transportation is evaluated. Investigations are conducted by means of a model consisting of logistics network, logistics costs, carbon dioxide emissions and an empirically determined relationship of oil price, fuel price and transportation costs. First, the dependency of transportation costs in European road transports from oil prices is derived. Then, the optimal configuration of the logistics network is determined for a range of oil prices. Sensitivity analysis on the value of traded goods is performed. Results show an existing dependency of the European logistics network structure limited to oil prices above 150 USD/barrel. Dependency on the oil price increases for high-value goods compared to low-valued goods. Carbon dioxide emissions diminish with lower centralization degree, as an effect of lower total transport distance.
Highlights
Worldwide population and the internationalization of national economies are on the rise and boost energy consumption as well as trade
This paper studies the influence of the oil price on the structure of logistic networks through the impact of transport costs on overall logistic costs
The analyses of the model and the scenario runs provide three findings related to the influence of oil price on the structure of logistic networks
Summary
Worldwide population and the internationalization of national economies are on the rise and boost energy consumption as well as trade. Customer’s time sensitivity and heterogeneous demand lead to the disaggregation of B2B and B2C shipments. Companies apply new business concepts like e-commerce and virtual enterprise, in order to cope with these challenges. Customized goods are offered at any time and can be delivered to virtually any place worldwide within days. Integration and interaction of companies create complexity and dependency on efficient and reliable logistics. Transportation volumes increase and logistics gain in importance [1]
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