Keywords Supply chain management, Distribution systems, Distribution operations,
Distribution management, Freight forwarding, Transport management
Abstract
A large number of firms have reconfigured their supply chains. The general trends
entail, among others, the reduction, centralization and re-location of plants and distribution
centers, the design of new distribution systems, and the reduction of the supplier base. The analysis of the implications of such reconfiguration for freight transport has received comparatively little attention, and most of the analysis has focused on the development of different theoretical models showing how changes in logistic structures and decisions could affect the transport demand. Using empirical data from Denmark, this paper sheds some light on the implications of reconfiguration supply chains on transport. Industry mail surveys among Danish firms as well as an in-depth case study were performed. The consequences of the reconfiguration process on the present and future demand for transport are measured and analyzed in terms of the quantity of transport units used (trucks/containers), and the transport-work (ton/km).
Introduction
A large number of international companies have reconfigured their supply chains
during the last decade. The most prominent drivers behind this trend have been: global
competition, increased focus on market requirements, advances in information and
communication technology (ICT), and development in international freight transport
systems.
Global competition has forced the companies to relocate their plants and
distribution centers in order to be both competitive and cost-efficient. In some
industries, e.g. the automotive and electronic industries, the focal company requires
that their key suppliers locate components production, sub-assembly plants or
inventory close to the focal company's assembly plants. In other cases, firms are
moving their manufacturing operations to low-cost countries in order to be more
cost-efficient. The German car industry has gradually moved to Poland, Hungary, the
Czech Republic, and South Africa. Similarly, most of the...