Backhauling  #

Backhauling, which involves transporting goods on their return journey rather than returning with empty trucks, can significantly improve vehicle utilisation rates.  

For example, after delivering products to a distributor, an empty truck can be directed to a nearby supplier to pick up raw materials. By reducing the number of empty trips, backhauling increases the overall efficiency of the fleet and reduces transport costs for suppliers and customers, as well as helping to reduce environmental impacts.

Concentration of demand and supply in one place  #

An important problem for the organic food producer is reaching the customer. An interesting solution is to create a cyclical market (e.g. once a week) managed by farmers in large urban centres.  

Advantages: 

• This allows farmers to shorten the distribution channel, preserve margins, minimise customer service time and concentrate customer purchases for a few hours per week, giving valuable time to deal with agricultural production.  
• With access to a wide range of organic products directly from the producer, customers become accustomed to a fixed buying period quite easily.
• Direct contact between the producer and the customer also facilitates the building of mutual trust and the flow of information. 

Consolidation of the orders #

A third-party purchasing platform bringing together different manufacturers allows online orders to be placed with different suppliers, which are fulfilled by couriers the next day. Consolidating the collection of orders from suppliers makes it possible to reduce the length of couriers’ routes and thus reduce carbon footprint by picking orders from different suppliers. 

Consolidation method:  consolidation in a shared space (warehouse). The shared warehouse also allows customer’s self-collection when the order has been completed. The customer receives a one-time access code to the warehouse, from which he can collect the goods at any time.

Type of drive:  the type of vehicle depends on the type of goods – if the product requires a cold draft, delivery is by electric car, if not, delivery is by bicycle or electric bicycles.

Data-driven decision-making leverages  #

Data-driven decision-making leverages real-time information, allowing logistics professionals to react immediately to changes in demand, supply chain disruptions or unexpected events. It uses data from different areas of logistics, such as: 

• Cost per delivery – Measures the cost per delivery, including the base rate, fuel surcharge and ancillary charges, each separately to gain insight into potential rising costs that need to be addressed. 
• Carrier Performance – Measures the time from the time the order is handed over to the carrier to the time of delivery. This assesses the efficiency and reliability of the last mile carrier. 
• Delivery Time – Measures the time from order to delivery and the steps in between, indicating the efficiency of logistics operations. 

Definition of criteria for the right vehicle #

When evaluating the business needs that influence the purchase of commercial vehicles, it is critical to analyse various criteria that directly impact decision-making. This comprehensive evaluation helps in acquiring vehicles that are not only cost-effective but also efficient and suitable for specific operational requirements.

Order volume: vehicles that are too large waste space and fuel, vehicles that are too small require more journeys.

Delivery area: smaller vehicles for urban areas, larger vehicles for rural areas

Drive type: electric delivery vans reduce fuel costs, they are environmentally friendly, reduce the ecological footprint and improve the brand image. Subsidies may be available.

Maintenance requirements: Vehicles with high maintenance costs can quickly become a financial burden. Choosing vehicles known for their reliability and lower maintenance needs can lead to significant savings and less downtime due to repairs.

Further factors: parking and tolls, safety, local regulations, etc…

Diversification of markets  #

Building a customer base and diversifying it for niche products is a major challenge. 

Strategy:  

• One way is to participate in local and regional fairs, which allow customers to become familiar with the company’s products and gain loyal customers.  
• The next step is to launch its own online shop, further introducing the company’s products to selected in the appropriate product group in the regions where it is exhibited at the fairs.  
• Customer recognition translated into acquiring customers from the HoReCa segment.  
• The product range is also gradually being expanded. 

Flexible delivery methods #

Key to the success of many food producers and AFNs is the ability to provide for easy-to-use and flexible delivery methods that respond to the needs of different types of costumers.  Providing the optimal mix of options (from pick-up, to home delivery, to digital lockers, etc.) requires them to acquire specialized knowledge and skills about the available logistics solutions and the know-how to implement them. 

General improved digitalisation in all company processes  #

In addition to attracting new customers who often become regular patrons, digital advertising offers the cooperative enhanced visibility and brand recognition.  Furthermore, improved digitalization expedites order processing, particularly beneficial for B2B transactions, and provides comprehensive insights into order history and value.  

Effects: 

• Increasing efficiency through streamline operations.
•  Contributing to the company’s environmental friendliness through optimization by reducing waste and energy consumption associated with traditional processes.  

Links with local organisations multiply the cooperative’s achievements  #

Possible support can include: 

• Financially: grants, low-interest loans, or subsidies to help cover startup costs, operational expenses, or expansion initiatives. 
• Marketing and promotion: cooperative products at municipal events, including them in tourism campaigns, or providing advertising space in municipal publications or on digital platforms. 
• Access to Resources and Networks:  networking opportunities with other local businesses, access to shared equipment or facilities, or connections to relevant industry associations or support organizations. 
• Infrastructure Development: developing food hubs or distribution centers for agricultural cooperatives or improving transportation and logistics infrastructure. 
• Collaborative Projects: initiatives related to affordable housing, renewable energy, community gardens or social services 

Local focus and collaborative initiatives  #

Significant transformations towards the sustainability of the regional food supply chain is greatly enhanced by a collaborative approach among local producers, association of producers, logistics operators and public authorities.  Collaborative and participatory initiatives provide an opportunity to design and implement more locally oriented food supply chains, including optimized logistics solutions (from storage to delivery of food products).  

This focus on collaborative initiatives has also the advantage of fostering social and community engagement at local level, thus reinforcing the social acceptability of the proposed solutions. 

Online shopping multi-producer platform #

By using one purchasing platform by several sellers, the ordering process can be digitalised for everyone. The customer on the shopping platform can place an order with multiple suppliers and make one aggregated online payment. The order is consolidated and delivered to the customer’s door according to the manufacturer’s delivery terms.A particular advantage of the joint purchasing platform is the variety and detailed description of the products, including their origin. Certificates are available if the product has them. The website is intuitive and allows local producers to reach a wider audience while consolidating orders from several producers at the same time

Package size optimisation with AI #

The use of artificial intelligence is becoming increasingly widespread in many fields, including logistics. Companies can use AI to optimise both transport and packaging. AI determines the optimal size of packaging based on the overall shipment and the vehicle’s capabilities, reducing packaging material consumption by up to 30%. This solution is not only important in terms of cost reduction, but also reduces waste and increases trucking-capacity utilization, reducing carbon emissions.

Food vending machines #

Vending machines have been in use for a long time for various products but are not very widespread for food. They offer the opportunity to sell regional products 24/7 in the same way as a farm shop. These machines with refrigerated compartments can even store frozen food for short periods. The uptake and use of these vending machines could offer many opportunities:

• Reduction of the cost associated with the last mile. 
• Significantly reduce the carbon footprint of individual deliveries, as well as providing a more convenient and flexible takeover for the consumer and therefore increasing customer satisfaction.

Re-use and recycling of packaging #

The reuse and recycling of packaging stand as paramount best practices among producers and AFNs. These practices significantly reduce environmental impact by reducing the demand for new materials and mitigating waste generation, thus fostering sustainability and circular economy in the food industry. 

Moreover, embracing such logistics solutions can streamline regional food supply chains by optimizing resources and reducing costs associated with packaging procurement and disposal. This efficiency not only enhances profitability but also promotes resilience within the supply chain, enabling better adaptation to fluctuating demands and market conditions

Shaping the demand #

The irregular utilization of resources such as personnel, vehicles, or storage facilities can significantly impact the efficiency and predictability of operations. This leads to peaks in capacity utilization, which complicates planning and can result in operational bottlenecks, increased costs, and decreased customer satisfaction. To mitigate these challenges and enhance the planning of deliveries, even during inevitable peak times such as before public holidays, several strategic measures can be implemented.

Examples of this are:

• Offers to manage demand for certain products
• Price incentives for longer delivery times or larger delivery windows
• Delivery outside peak times
• Pricing of premium deliveries

However, it is necessary to know the expected capacity utilisation in order to adjust marketing and pricing measures in good time.

Sustainable ’Last Mile’ delivery #

Last mile delivery is a key element of the supply chain process, especially in Europe. Last-Mile refers to the final stage of the delivery process, when the product is moved from the local distribution centre or hub to the customer’s doorstep. 

Different solutions are though out:

• Some retail stores are setting up additional fulfilment locations in their existing stores to minimise last-mile delivery costs. 
• For both online and in-store products, deliveries to customers can be made from stores where the products are already in stock, either from back stock or from store shelves. Delivering from the shop saves the company from having to deliver parcels or less-than-truckload to customers from distances further away from the final destination

Sustainable cooling in warehouses #

Food often needs to be refrigerated, which leads to increased energy consumption. While one can rely on the energy class when buying refrigerators, storage rooms are often high rooms with openings to the outside. When building new warehouses, they should therefore be constructed from insulating materials that prevent temperature transfer to the outside; in existing warehouses, insulation, seal leaks, install high-speed or automatic doors or air curtains etc. can help. Less obvious measures such as sensitising employees or avoiding heat sources in the warehouse (e.g. light as a heat source) also reduce energy consumption. The waste heat generated during cooling can also be redirected and utilised for other purposes, such as heating.

Sustainable impact of local trade #

Smaller-scale operations characteristic of local trade often undergo fewer processing stages, reducing the likelihood of hidden additives or alterations to products. Overall, the proximity and simplicity of local food logistics facilitate greater transparency empowering consumers to make informed choices about the food they eat.

Shorter distances from farm to table reduce the complexity of transportation and storage. This simplicity enhances traceability, allowing consumers to easily track the origins of their food. 

Moreover, local producers often prioritize direct relationships with consumers and retailers, fostering open communication and trust. These direct connections enable clearer information about farming practices, handling procedures, and product quality.

Use of cargo bicycles #

The sustainability of delivery operations of AFNs is bolstered by the integration of zero-emission alternatives, such as cargo-bikes or cargo-scooters (and electric vehicles). Embracing these eco-friendly options not only aligns with environmental goals but also enhances the long-term viability of the delivery processes, contributing to a greener, more sustainable food supply chain.

In a congested city with narrow streets, the use of cargo bicycles can be an excellent delivery solution. A study has shown that electric bikes can travel 60% faster than vans in city centres, and that bikes reduce carbon emissions by 90% compared to diesel vans and by a third compared to electric vans. There is a simple as well as an electric version. Bikes can reduce the cost and time of home delivery and also reduce congestion and pollution in cities. Bicycles do not need to find a parking space, do not have to pay for parking and are cheaper to buy, maintain and service.

Use of multifunction forklift trucks #

An interesting solution is the use of a multifunctional combined forklift truck. One forklift truck manufacturer has found that its multi-purpose forklifts help its customers reduce their carbon footprint, as they need a smaller fleet as a result. These combined ‘three-in-one’ forklifts can operate as sideloader forklifts (for long loads), counterbalance forklifts and narrow aisle forklifts. Logistics companies using multifunction forklifts have combined forklift trucks with efforts to save space inside warehouses to create up to 50% more warehouse space and reduce their carbon footprint by an average of 80 tons per year.