Inbound Logistics Research Articles

Inbound logistics optimization for fresh oranges with waste management

Typical fruit supply chains include several echelons such as farms, primary fruits-processing-facilities to produce main products, secondary fruits-processing-facilities to produce by-products, distribution centers, retailers, and consumers. This paper focuses on the inbound logistics operations that cover the logistics planning for transporting the fruits collected at the farms to the primary fruit processing facilities. Fruit supply chains are considered difficult to manage due the perishable nature of fruits and time constraints to avoid contamination and wastage. The objective of this research is to optimize inbound logistics in fruit supply chains by developing an optimization model that minimizes fruit losses during transportation and identifies optimal waste management practices. This approach not only reduces waste but also lowers greenhouse gas (GHG) emissions associated with fruit wastage. A bi-objective optimization model for the inbound logistics of fresh fruits is presented; the first objective is to minimize the total cost considering the environmental sustainability factors and the second objective is to minimize the carbon footprint and GHG emissions. Fresh fruit losses and wastage caused by changes in temperature, shelf life, and total time spent on transportation during inbound logistics is quantified. The model is applied to original data of fresh Valencia oranges harvested from farms in Egypt and computational results indicate that the fruit loss per month is decreased from 29% to less than 2% during the inbound logistics operations. Three methods are used to solve the bi-objective optimization problem, and the results are compared.

Production overrun optimization considering supply chain network reliability

Production overrun is a common practice in manufacturing to meet the demand by increasing the number of qualified products and compensating for manufacturing defects. While production overrun can improve Supply Chain Network Reliability (SCNR), it leads to higher material costs. In this paper, a model is proposed to evaluate SCNR by incorporating the reliabilities of inbound logistics, operations, and outbound logistics. Based on the proposed SCNR model, we study the optimal production overrun of each manufacturing site in a supply chain network and identify the production plan that satisfies the reliability requirement with minimum total production overrun penalty. By analyzing the monotonicity of the objective and constraint functions of the formulated problem, an algorithm based on linearization is developed to solve this optimization problem. Numerical examples across various scales are presented to illustrate the developed model and method. The impact of the penalty coefficient of the production overrun on the result is investigated. The results from the numerical examples provide managerial insights on allocating resources in the entire supply chain network and improving the supply chain reliability and competitiveness.

Impact of Green Logistics Practices on Sustainable Performance: A Comprehensive Analysis

The rapid growth of the global economy has intensified the role of logistics in meeting evolving societal needs but has also exacerbated environmental and sustainability challenges. This study investigates the impact of green logistics practices on sustainable performance, with a focus on both inbound and outbound logistics. The research develops a theoretical framework to explore how green logistics practices affect social, environmental, and economic performance. Using data collected from 221 firms through a structured questionnaire and analyzed via structural equation modeling (SEM), the results reveal that both inbound and outbound green logistics practices positively influence environmental, social, and economic performance. The study contributes to the literature by clarifying the distinct effects of different logistics processes and providing empirical evidence on green logistics' role in enhancing sustainability within a developing country context. This research offers valuable insights for firms and policymakers aiming to improve business performance through effective green logistics practices.

Enhancing Logistics Operations Quality for Improved Business Efficiency: A Structural Equation Modeling Approach in Manufacturing Enterprises in Northern Vietnam

The research aims to examine the relationship between the quality of logistics activities and business efficiency in manufacturing enterprises in the Northern region of Vietnam. The study selects five component factors of logistics activities including Internal Logistics, Inbound Logistics, Outbound Logistics, Support Logistics, and Logistics Costs to assess the impact of these factors on the Logistics Operation Quality and Business Effective. Primary data is collected from survey results, with 173 valid questionnaires. The study employs a Structural Equation Modeling (SEM) approach, processing data using SPSS 24 and AMOS 24 software. The research findings indicate that factors related to well-organized logistics activities all have a positive influence on the quality of logistics activities. Among these factors, the quality of Inbound Logistics has the greatest impact on the quality of logistics activities. Additionally, the quality of logistics activities positively affects the business efficiency of enterprises. Managerial implications and future research directions are also discussed.

E-fulfillment cost management in omnichannel retailing: An exploratory study

The purpose of this study is twofold: investigating how omnichannel (OC) retailers manage e-fulfillment costs and establishing how these costs relate to the evolution of OC retailers' e-fulfillment strategies. Experts in e-fulfillment from 34 European OC retailers across various sectors participated in an exploratory survey. The study's results reveal that although e-fulfillment costs significantly influence the evolution of e-fulfillment strategies, many OC retailers fulfilling online orders from retail stores or traditional warehouses remain unaware of the actual costs of e-fulfillment. Activities other than picking and last-mile delivery, such as inbound logistics and storage, are poorly controlled. Furthermore, complex cost metrics such as cost-to-serve—the total cost associated with delivering a specific order to a specific customer—are predominantly found among OC retailers operating fulfillment centers (FCs) in their e-fulfillment distribution networks. This underscores the need for all OC retailers to accurately assess e-fulfillment costs at multiple levels, which will be crucial for optimizing order preparation, tailoring pricing strategies, and achieving profitability, especially when operating hybrid e-fulfillment strategies where online orders are prepared in multiple facilities. As the largest study on e-fulfillment costs to date, it highlights the importance of advancing e-fulfillment cost management systems among OC retailers and adopting an approach that encompasses all e-fulfillment activities. Future research should delve into the key challenges of developing these systems, considering the operational realities of each OC retailer.

Suppliers Sourcing Strategy and Sustainable Procurement Performance Among Kenya Tea Development Agency Factories in Region 5, Kenya

Companies involved in a supply chain must coordinate their operations through adoption of inbound logistics strategies so as to enhance business performance. KTDA factories have adopted inbound logistics strategies with the aim of turning around their performance as well as reduce operational costs leading to sustainable procurement performance. However, despite this KTDA tea factories still experience wide variations in earnings. The drop in earnings and high variation in tea bonuses among factories has been blamed on operational cost at the factory. This points out that although inbound logistics have been adopted, they have not resulted in sustainable procurement performance. The purpose of this study was to determine the relationship between suppliers sourcing strategy and sustainable procurement performance. The study adopted correlation research design. The target population of the study was 188 staff drawn from the 16 KTDA managed Region 5 factories. A census method was used to collect data from the production managers, ICT managers, procurement Managers, leaf base managers, factory unit managers and directors using a structured questionnaire. The findings revealed that suppliers sourcing strategies had a positive significant correlation with sustainable procurement performance (r = 0.545, p < 0.05). The study recommends that KTDA sourcing strategies need to aligned to organizational sustainability goal, develop procedures and policies on material handling with sustainability goal. The results of this study may advice on policy formulation in relation to sourcing strategies and sustainable procurement performance. Other researchers may benefit from the literature on inbound logistics and sustainable procurement performance since the current study provided a basis for further studies

Artificial intelligence-based food-quality and warehousing management for food banks' inbound logistics

PurposeIn the reduction of food waste and the provision of food to the hungry, food banks play critical roles. However, as they are generally run by charitable organisations that are chronically short of human and other resources, their inbound logistics efforts commonly experience difficulties in two key areas: 1) how to organise stocks of donated food, and 2) how to assess the donated items quality and fitness for purpose. To address both these problems, the authors aimed to develop a novel artificial intelligence (AI)-based approach to food quality and warehousing management in food banks.Design/methodology/approachFor diagnosing the quality of donated food items, the authors designed a convolutional neural network (CNN); and to ascertain how best to arrange such items within food banks' available space, reinforcement learning was used.FindingsTesting of the proposed innovative CNN demonstrated its ability to provide consistent, accurate assessments of the quality of five species of donated fruit. The reinforcement-learning approach, as well as being capable of devising effective storage schemes for donated food, required fewer computational resources that some other approaches that have been proposed.Research limitations/implicationsViewed through the lens of expectation-confirmation theory, which the authors found useful as a framework for research of this kind, the proposed AI-based inbound-logistics techniques exceeded normal expectations and achieved positive disconfirmation.Practical implicationsAs well as enabling machines to learn how inbound logistics are handed by human operators, this pioneering study showed that such machines could achieve excellent performance: i.e., that the consistency provided by AI operations could in future dramatically enhance such logistics' quality, in the specific case of food banks.Originality/valueThis paper’s AI-based inbound-logistics approach differs considerably from others, and was found able to effectively manage both food-quality assessments and food-storage decisions more rapidly than its counterparts.

KEY PERFORMANCE INDICATORS FOR START-UPS IN FURNITURE INDUSTRY

It is not uncommon to see start-ups suddenly fail. Often, startups try to follow the example of other, successful companies, but they don’t always succeed, so this article looks at KPIs for startups in the furniture industry. The furniture industry in the Baltic States is reviewed and their development at different stages of the company’s growth is analyzed. The product factors and interrelationships of a successful furniture company have been identified. The article presents the results of the surveyed companies engaged in the development of products for the furniture industry. The reasons and the main factors influencing the success of the company are given. Based on the results of the study, a model for the development of KPIs for start-ups in the furniture industry is presented and conclusions and suggestions are presented. The model consisted of 10 different spheres (success factors, fail factors, inbound logistics, outbound logistics, marketing & sales, procurement, operation, service, HRM, technology development, sustainability) for 5 different companies size (1–9 employees, 10–49 employees, 50–99 employees, 100–249 employees and 250 and more employees). In the model were overwide main KPIs blocks and suggested considerate of companies size.

Factors Affecting Sugarcane Supply in Panji and Wringin Anom Sugar Factories

Ensuring a harmonious match between the volume of sugarcane and the milling capacity is crucial for achieving an efficient production process. The yearly fluctuations in sugarcane supply depend on the consistency of the raw material and the adaptability of sugar factories to varying supply levels. This study aims to identify the factors that influence sugarcane supply, its uninterrupted flow, and its impact on revenue generation at the "PG Panji" and "PG Wringin Anom" Sugar Factories (PGs). Utilizing both descriptive and analytical methodologies, this study relies on secondary data gathered from Sugar Factories spanning the years 2011 to 2021. The data undergoes analysis using the Multiple Linear Regression Method and Trend Analysis. The results reveal that for PG Panji, sugarcane supply is influenced by factors such as farmers' land area and sugarcane productivity. Conversely, for PG Wringin Anom, supply is influenced by farmers' land area and sucrose yield (rendemen). Over the period from 2011 to 2021, sugarcane supply exhibited fluctuations, with a subsequent downward trend from 2022 to 2026, as indicated by a negative trend. Furthermore, the study discerns that the sugarcane supply does not significantly impact PG Panji's income. However, it does have an influence on the income of PG Wringin Anom. This divergence can be attributed to the distinct approaches adopted by both sugar factories in their sugarcane procurement system (inbound logistics).

Strategic Analysis of Tesco's International Purchasing and Supply Chain Management: Challenges, Opportunities, and Future Directions

This review paper examines Tesco's international purchasing and supply-chain management strategies, focusing on its operations and strategic initiatives. Tesco, a prominent global retailer, faces significant challenges and opportunities in a competitive market environment. Through a SWOT analysis, Tesco's strengths in efficient logistics and expansive market reach are highlighted, alongside weaknesses such as environmental sustainability concerns and operational inefficiencies. The study also explores Tesco's value chain, emphasizing its primary activities like inbound logistics and outbound distribution, as well as supporting activities such as human resource management and technological innovations like RFID. Future challenges, including environmental sustainability and market expansion in Asia and Africa, are discussed, with recommendations provided to enhance Tesco's sustainable development and competitive position in the global retail landscape.

Study of inbound logistics supply chain of an automobile manufacturing company

Study of inbound logistics supply chain of an automobile manufacturing company

Transition to synchronization-driven smart inbound logistics: an action research-oriented study

The context evolution has highlighted the need of rapidity and reactiveness for supply chains to face uncertainties, which are amplified by today’s shortage of labor and transportation capacity and increased complexity of operations. The synchronization of logistics flows, coupled with physical and digital automation technologies, is an answer to such challenges. Using an action research-oriented approach, this paper develops and documents the deployment of a reference architecture for synchronization-driven smart inbound logistics processes that could guide the synchronization of the material flows at the intersection between transportation and logistics nodes. Reflections deriving from the architecture deployment are discussed.

Clusters in industrial ecosystems – new innovative trends in the development of post-war Ukraine

The article discusses the importance of creating and developing clusters in the context of the digital economy and socio-ecological transformation. The main goal is to unite competencies and resources through common strategies and projects to increase the innovative potential of clusters and their participants. The article emphasizes the need to build and support industrial-technological partnerships worldwide as a key task for industrial clusters. The importance of developing the production sector and supporting one's own technological level for the development of the economy and ensuring national well-being, particularly in Ukraine, is also highlighted in the article.Different ways and motives are proposed for strategic partnerships between clusters, including cooperation in management training, identification of international innovations, exploration of new markets, and initiation of international scientific research projects.The need to create a professional management team of clusters was emphasized in times of digitalization, economic and socio-ecological transformation, as only clusters cover various areas of knowledge and will closely cooperate with other market participants. Moreover, increasing the innovation potential of clusters and their participants is becoming more and more important. This facilitates the pooling of competences and resources through joint strategies and joint projects.The importance of identifying structural gaps in industrial ecosystems to maximize the benefits of potential collaborations and promote innovative policies for upgrading business processes and equipment is considered. The geographical boundaries of the industrial ecosystem are determined by the interdependencies that connect organizations within its boundaries and new ties that strengthen beyond its boundaries. Industrial ecosystems are defined as multi-level production systems that include heterogeneous agents involved in value chains, as well as those who contribute to the realization of their potential and the country's productive capacity. The value chain can be divided into five main types of activities: inbound logistics, production, outbound logistics, marketing and sales, and after-sales services, and may also contain secondary or supporting activities that contribute to the effectiveness of the main activities. The article emphasizes that defining the real boundaries of industrial ecosystems is critical for governments interested in supporting them and transforming them into closed-loop innovation systems.

Inbound Logistics Metrics and Performance of Freight Forwarders Association in Kicukiro District, Rwanda

The Rwandan Freight forwarders federation (RWAFFA) was established in 2013 to deal with the fragility that was in the clearing and forwarding industry, which worked without defined and professional procedures that led to poor and inefficient practices within the industry. The objective of this study was to examine inbound logistics metrics on the performance of Freight forwarders federation in Rwanda. A case of RWAFFA in Kicukiro District. This study was guided by three specific objectives which are toto evaluate order fulfilment accuracy level of freight forwarders in Rwanda, to determine the status of on time delivered shipments, in case of freight forwarders in Rwanda and to analyse the degree of safety for goods handled by freight forwarders in Rwanda. The research was of great significant to the researcher, MKU and freight forwarding Industry in Rwanda. The descriptive research design with two mixed approach of qualitative and quantitative was used to collect data by use of interview guide and questionnaire. The 160 respondents of the study were selected from the target population of 246 including employees from RWAFFA management team, clearing agents and importers firms operating in Kicukiro District using the Krejcie and Morgan table with a simple random and census method of selecting the sample size. The collected results were analyzed using descriptive statistical analysis with use of percentage, mean and standard deviation and inferential statistics by the use of Pearson correlation (r) and multiple linear logistic regression analysis. Data were also presented in figure, tables and narratives because the qualitative data were analyzed with the use of thematic analysis which require the researcher to present the qualitative results in narrative. In this study, research findings showed that inbound logistic metrics were adopted to reduce the damaged shipment in freight forwarding within Rwandan Freight Forwarders association (RWAFFA).Therefore,The intercept of the regression was 13.803 and statistically significant p= 0.000).While the coefficient of order accuracy was 0.100 and p = 0.003. On time delivery had an intercept of 0.043 but significant at 0.002 and finally safety of goods had it at 0.065 and also positive. Despite the problem arising within Rwandan freight forwarders association in Kicukiro District such as Inadequate Performance measurement and metrics pertaining to SCM, lack of professionalism, clear regulations and to some extend absence of documented procedures to follow, delays and unreliability, lack of previous empirical research that examined the effects of inbound logistics metrics on performance of freight forwarders. The current success in implantation of inbound logistic metrics was contributed to the performance of freight forwarders federations. Keywords: Supply Chain Efficiency, Freight Forwarding, Kicukiro District Logistics, Inbound Logistics Metrics, Rwanda Transportation Industry

Proactive food waste prevention in grocery retail supply chains – An exploratory study

PurposeRegarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.Design/methodology/approachThe authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.FindingsThe authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.Practical implicationsThe authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.Originality/valueThis research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.

Smart Containerization as a Determinant of Supply Chain Visibility in Sea Freight Cargo: A Case Study of Apparel Industry in Sri Lanka

As a prominent exporter, the apparel sector draws considerable attention in the Sri Lankan economy. As most apparel supply chain occurs through sea freight, there is a significant demand for more visibility for end-to-end movements. Due to technological innovations, smart containerization has become popular with the prevailing problems in apparel supply chains to enhance its visibility, reliability, and efficient demands. The study aims to understand the concept and the related influencing factors in enhancing the supply chain process performance. The study followed the qualitative approach, and the case study strategy was used by conducting in-depth interviews selecting six experienced professionals from the logistics & supply chain sector in the selected leading apparel export organization in Sri Lanka. NVivo software assisted in the transcript coding process of the analysis while deriving the influencing factors. The study explored technological, financial, and social avenues and influences as contributions to the inbound and outbound logistics process of the apparel industry.

Industry 4.0 technologies and managers’ decision-making across value chain. Evidence from the manufacturing industry

Abstract The paper aims to identify how Industry 4.0 technologies affect the quality and speed of the managers’ decision-making process across the different stages of the value chain, based on the example of the manufacturing sector. The paper adopts qualitative research, based on nine in-depth interviews with key informants, to capture senior executives’ experiences with implementing Industry 4.0 technologies in their organisations. The research is focused on three manufacturing industries: the automotive, food and furniture industries. The research shows that depending on the stage of the value chain, different Industry 4.0 technologies are more suitable for the support of managers’ decisions. Various Industry 4.0 technologies support decision-making at different stages of the manufacturing value chain. In the Design stage, 3D printing and scanning technologies play a crucial role. In the case of Inbound Logistics, robotisation, automation, Big Data analysis, and Business Intelligence are most useful. During the Manufacturing stage, robotisation, automation, 3D printing, scanning, Business Intelligence, cloud computing, and machine-to-machine (M2M) integration enable quick decision-making and speed up production. Sensors and the Internet of Things (IoT) optimise distribution in the Outbound Logistics stage. And finally, Business Intelligence supports decisions within the Sales and Marketing stage. It is also the most versatile technology among all particular stages. The paper provides empirical evidence on the Industry 4.0 technology support in decision-making at different stages of the manufacturing value chain, which leads to more effective value chain management, ensuring faster and more accurate decisions at each value-chain stage. When using properly selected Industry 4.0 technologies, managers can optimise their production processes, reduce costs, avoid errors and improve customer satisfaction. Simultaneously, Industry 4.0 technologies facilitate predictive analytics to forecast and anticipate future demand, quality issues, and potential risks. This knowledge allows organisations to make better decisions and take proactive actions to prevent problems.

CHOOSING THE APPROACH TO BUILDING A THIRD-PARTY LOGISTICS (3PL) LOGISTICS CHAIN MANAGEMENT

The paper analyzes the main criteria for choosing a “3PL” in the context of the “JIT” approach. The choice of “3PL” is an approach to analyze many tangible and intangible criteria that must be considered based on the client’s specific needs, goals, and specifics of the production process. The selection criteria of “3PL” depend on the field of activity of the third-party executor. A company looking to outsource inbound logistics focuses on operational factors such as the firm’s available capacity, equipment quality, and the process’s financial benefit. The choice of criteria for choosing firms for outsourcing logistics processes may be related to the location and availability of additional services in the company. The algorithm for building cooperation between companies is analyzed. The choice of “3PL” is problematic because it requires considering many criteria of different vectors – from the technological considering the economic side of production to the social consequences for the company, which is confirmed by various research areas. Several practical algorithms were analyzed to determine the optimal method of implementing the voluntary participation of companies in research. An AHP structure for choosing the best warehouse operator is considered, which visualizes the relationships between elements and displays their hierarchy. The constructed hierarchy logically represents a complex, multifactorial decision-making process and effectively describes the relationships between all elements of the evaluation system. Hierarchy facilitates the understanding of the principles of evaluation and consensus in making the final decision regarding the selection of warehouse space. Moving goods along the logistics chain is accompanied by significant risk. Requirements for logistics providers are constantly increasing and may go beyond the parties’ contractual obligations in times of crisis. That is why logistics service providers constantly decide how to ensure the maximum reliability of logistics operations at any point in the logistics chain. The choice of “3PL” is problematic because it requires considering many criteria of different vectors – from the technological, taking into account the economic side of production, to the social consequences for the company, which is confirmed by a wide variety of research areas.

Upward scalable vehicle routing problem of automobile inbound logistics with pickup flexibility

Motivated by the inbound logistics of a famous automobile manufacturing company, we introduce the upward scalable vehicle routing problem (for order pickup) with time windows (USVRPTW), where the pickup from each supplier can be adjusted upward by a certain degree (pickup flexibility) based on the order volume, thus increasing the vehicle utilization and reducing logistics cost. We solve the USVRPTW exactly by a branch-and-price algorithm, where the flexibility affects the pricing problem, leading to the elementary shortest path problem having to consider resource allocation except the resource constraints. The consideration of resource allocation adds many new properties to the shortest path problem, based on which we design a tree search algorithm. We develop a heuristic algorithm based on the bipartite graph to generate initial columns for the column generation (CG) process. The algorithm can also be adopted as an efficient method for solving large-scale problems due to its ability to find near-optimal solutions quickly. We also propose the penalty stabilization method and the drill-down strategy to accelerate CG. Numerical experiments show that our designed branch-and-price algorithm outperforms the commercial solver Gurobi. The efficiency of the tree search algorithm, the heuristic algorithm, and the CG acceleration methods is also verified. Real-data experiments illustrate that the low increase in driving cost can significantly improve vehicle utilization, proving the significance of flexibility. We then provide management insights to reveal that adopting the proposed flexibility mechanism can reduce logistics cost.

Impacts of inbound logistics capabilities on supply chain resilience: insight from Vietnamese textile industry

PurposeThis study aims to examine the impact of inbound logistics on dynamic supply chain capabilities and, subsequently, on supply chain resilience in the Vietnamese textile industry.Design/methodology/approachA conceptual framework based on a resource-based view was empirically tested using partial least squares structural equation modeling and data collected from 215 Vietnamese textile enterprises from December 2021 to March 2022.FindingsThe research shows that inbound logistics capability positively affects dynamic supply chain capabilities. In particular, the study has ratified reengineering as the chief factor that textile firms should consider when building a resilient supply chain.Originality/valueThis study considers the Vietnamese textile industry to assess the indirect effect of inbound logistics on supply chain resilience through dynamic supply chain capabilities in a theoretical sense while assisting managers in comprehending the functions of supply chain collaboration, agility and reengineering as the foundation for supply chain resilience in a managerial sense.