Short and strong: cooperation for logistics ins hort sypply chains
The strategic plan on short supply chains created by the Government of Flanders was made to remove barriers and supporte and stimulate the actors involved by optimising distribution and logistics (amongst others). ‘Logistics’ means getting the right goods on time, in the required quantities, in the correct condition, at the lowest cost, to the right place. Logistics are thus organised differently in short supply chains than in regular supply chains. Logistics in short supply chains have to cope with restricted volumes, a lack of efficiency and a lack of professionalisation. Although actors in the short supply chain underestimate the impact of logistics (and the impact on time and cost), organising the logistics as efficiently as possible is of great importance in order to achieve profitable short supply chains, happy consumers, better prices, lower costs and better accessibility.
Cooperation: the key to the most efficient logistics
The goal of this research report was to analyse how cooperation can improve logistics, by giving an overview of the (sometimes fragmented) literature, current and completed projects, and the recommendations on logistics resulting from case studies. According to the literature, cooperation helps to avoid unnecessary logistical costs and to achieve a better use of capacity, economies of scale, more frequent deliveries, lower transaction costs, etc.
Practical examples in the report also showed how logistics improve when done in partnership. This cooperation can stretch out horizontally (with fellow farmers), vertically or in a network and around different activities: matching demand and supply, order systems, transport, packaging, processing and storage.
Some examples only pay attention to logistics when they reach a certain growth (e.g. the number of distribution channels) and turn to specialised, external logistical partners (cooperation or outsourcing) for support. Strategic collaborations with companies, organisations, … with complementary knowledge and expertise are well worth the effort. An efficient organisation of logistics requires time, money and knowledge. Furthermore the logistics have to be adapted to all the other elements of the business model (mission, strategy, marketing, etc.).
Custom-made? Farmers and government in action
Because of the specific features of the short supply chain initiatives, the region where they operate, its current logistical flows, the existing means, and so on, (cooperation about) logistics is often custom-made. Although no one recipe for success can be found, a number of general success factors and focus points can be defined: to assess and to divide the costs and benefits, to put the consumer first, to choose partners deliberately, to start small, to be able to rely on trust and commitment, to have an inspiring and responsible leader, fixed agreements, a business plan, and so on.
The report synthesised the literature and case studies in a checklist targeted at new and existing short supply chain initiatives. Just as this initiative is developing and evolving, the logistics and the cooperation (and the checklist) must be re-evaluated and adjusted. The role of the government is limited to the creation of the right framework for initiatives to start, to develop and to exchange knowledge. The collaboration is then set up by the initiating parties themselves.
Van Buggenhout E., Vuylsteke A. & Van Gijseghem D. (2014) Kort maar krachtig: samenwerking bij logistiek in de korte keten, Afdeling Monitoring en Studie, Brussel.
Van Buggenhout E., Vuylsteke A. & Van Gijseghem D. (2014) Kort maar krachtig: samenwerking bij logistiek in de korte keten. Achtergrondrapport, Departement landbouw en Visserij, Afdeling Monitoring en Studie, Brussel.