EURO 2024 Copenhagen
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4084. Optimizing Downstream Logistics: Shipment Consolidation Strategies for Sustainable Supply Chains

Invited abstract in session TB-24: Sustainable Logistics, stream Sustainable Supply Chains.

Tuesday, 10:30-12:00
Room: 83 (building: 116)

Authors (first author is the speaker)

1. Mahesh Gudipati
Indian Institute Of Management, Kozhikode
2. Ram Kumar
QM & OM Area, IIM Kozhikode
3. Ramesh Krishnan
QMOM, Indian Institute Of Management, Kozhikode
4. Satyam Sahay
John Deere

Abstract

Global greenhouse gas (GHG) emissions in 2023 have crossed more than 58GT, and transportation is one of the key contributors to these emissions. Supply chain play an important role in efficiently moving goods from manufacturers to end customers. However, the traditional approach to supply chain management often results in excessive carbon dioxide (CO2) emissions due to inefficient logistics processes. The supply chain landscape of automobile manufacturing organizations is characterized by complex networks involving multiple stakeholders, transportation modes, disparate inventory management systems, and complex supplier and dealer network. This complexity often leads to suboptimal transportation routes, underutilized capacity and excessive empty backhauls, all contributing to high CO2 emissions. Addressing Scope 3 CO2 emissions has become critical for organizations to align with sustainability goals.
This paper attempts to address some of these challenges by focusing on shipment consolidation strategies to reduce the cost and GHG emissions in downstream logistics. By consolidating shipments, companies can streamline their distribution processes, reduce the number of vehicles on the road, and optimize delivery routes, leading to tangible reductions in CO2 emissions. The presentation will discuss a case study from the automotive industry, illustrating the significant impact of time-based consolidation on emissions offering practical insights for academic and industry leaders.

Keywords

Status: accepted


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