Integrated Logistics Network for the Supply Chain of Locally Produced Food, Part II: Assessment of E-Trade, Economic Benefit and Environmental Impact

Abstract

In order to improve the logistics for locally produced food, and its integration with large-scale distribution systems, the conceptual idea of optimised and integrated logistics networks was analysed and demonstrated in a pilot project of local food producers in southern Sweden. The main objective of this paper was to assess the e-trade integrated logistics systems, economic benefits and environmental impact of integrated logistics systems, based on route optimisation analyses and producer data collected using questionnaires. The study revealed that the introduction of IT-systems for electronic trade had positive and negative economic effects. Internet-based cloud services designed for electronic business-to-business trading and coordinated transport with a common collection centre (CC) were important steps in the process of integration. The pilot project also showed the importance of a flexible organisation and a strong driving partner to con- tinue and develop collaboration. Route optimisation could reduce the route distances, decrease the environmental im- pact and provide economic benefits due to reduced working hours. The lowest estimated global warming potential from vehicle emissions was found when coordination was considered for collection to the CC and to and from the distribu- tion centre (DC). The lowest estimated potentials for acidification, eutrophication and human toxicity were found when integrated collections and deliveries took place during each route. To identify how the local food supply chains should be organised, more case studies of local food producers in different settings and under different conditions need to be carried out. With further case studies and surveys, more general patterns of variation and relations between variables may also be identified.