Abstract
A logistics network is the ‘connective tissue’ in a comprehensive supply chain and often the decisive factor for the chain’s ultimate success. Logistics networks in sparsely populated areas are facing different challenges than those that operating in relatively densely inhabited ones. This paper discusses, firstly, various critical success factors of a logistics network in order for it to sustain in sparsely populated areas. The challenges of establishing and operating a logistics network in sparsely populated areas are then identified and discussed. A case study has been conducted in the context of a region in Northern Norway where the average population rate is 4.3 persons each square kilometer. The paper suggests that, by combining reverse logistics networks with forward ones; social, economic and environmental sustainable logistics networks can be achieved. The challenges of integrating forward and reverse logistics networks in Northern Norway are discussed in the final part.
Highlights
A logistics network is traditionally defined as a set of resources which interactively connected with each other purposing of timely and cost-effective transfer of material and products to specified places
This paper aims to shed light on challenges to economic and environmental sustainability of logistics networks in sparsely populated areas
The paper presents a conceptual study on logistic networks in sparsely populated area
Summary
A logistics network is traditionally defined as a set of resources which interactively connected with each other purposing of timely and cost-effective transfer of material and products to specified places. Nilsson et al [9] present another Swedish study which focuses on challenges of current low heat density areas to competitiveness of district heating in sparsely populated areas They stated that, in order to improve the economic. A logistics network in a densely populated area is less distant between two resources (i.e., between a distribution centre and a retailer) This may enable, for example, the network to achieve more mass-customized logistics service with diverse focuses. Developing logistics networks that connecting sparsely and densely populated areas needs to be viewed in conjunction with offering universal geographical coverage for social and economic development as well as sustainable regional development in whole territory. The critical success factors for logistics networks operating in sparsely populated areas are : Cost-effectiveness: refers to the extent to which customer requirements are met given a limited level of cost. Eco-efficiency: the efficiency with which resources are converted into product
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