Cluster building and logistics network integration of local food supply chain

Abstract

The food supply chain is a current focus for considerations of food safety and environmental impacts. The objective of this study was to investigate local food supply chain characteristics and develop a coordinated distribution system to improve logistics efficiency, reduce environmental impact, increase potential market for local food producers and improve traceability of food origin for consumers. The study was based on data from 90 local food producers and 19 existing large scale food distribution centres (LSFDC) from all over Sweden. Location analysis was done using Geographic Information System (GIS) to map locations of producers and LSFDCs; to build cluster of producers; and to determine optimal product collection centres (CC). The route analysis was carried out using Route LogiX software, firstly for collection of food products from farms to CCs based on two scenarios, either producers transporting their products (no coordination) or CCs managing coordinated collection of products, and secondly for product distribution from CCs to potential markets. When compared to the first scenario, the second had improved the number of routes, driving distance and product delivery time by 68%, 50% and 47% respectively. In total, 14 clusters of producers were formed and 86% of these clusters could be integrated into the LSFDCs. This network integration could make positive improvements towards potential markets, logistics efficiency, environmental issues and traceability of food quality.