Horticultural supply chain network design of small and medium-sized enterprises

This study investigates supply chain networks of small and medium-sized companies in the ornamental plants, perennials and cut flowers business in non-auction-driven markets such as Germany, and formulates a mathematical model depicting prevalent network design options. The results are based on an e...

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Main Authors: Marius Drechsler, Andreas Holzapfel
Format: Article
Language:English
Published: Elsevier 2023-01-01
Series:Sustainability Analytics and Modeling
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2667259622000121
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author Marius Drechsler
Andreas Holzapfel
author_facet Marius Drechsler
Andreas Holzapfel
author_sort Marius Drechsler
collection DOAJ
description This study investigates supply chain networks of small and medium-sized companies in the ornamental plants, perennials and cut flowers business in non-auction-driven markets such as Germany, and formulates a mathematical model depicting prevalent network design options. The results are based on an embedded multiple case study featuring in-depth expert interviews with people in charge of corresponding companies. The typical logistics network structures and associated product flows are identified and systematized that represent the supply chains of producers, wholesalers and retailers, as well as their vertical integration. These supply chain networks are analyzed in terms of characteristics and context-specifics and finally transferred to a mathematical model formulation. We find that direct deliveries from producers to retailers are preferred despite production-related lead times of several months or more because of shorter transportation times and therefore better product quality. Wholesalers are mostly used to compensate for product surpluses or deficits, and can offer short lead times. Our results show that the whole sector is dependent on reliable information about the market situation that is needed for accurate planning among the uncertainties the sector faces regarding aspects such as quality fluctuations, pests, trends in demand, and weather impacts on plant growth and final customer demand. This study is the first to provide a systematization and model of logistics systems in the horticulture business. It thereby aims at building the basis for a decision-oriented future stream of research, investigating and optimizing logistics in horticulture in a sustainable manner.
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spelling doaj.art-1d3ec5cc17374ed88ba9524a9c8d7aa82023-12-10T06:18:56ZengElsevierSustainability Analytics and Modeling2667-25962023-01-013100014Horticultural supply chain network design of small and medium-sized enterprisesMarius Drechsler0Andreas Holzapfel1Hochschule Geisenheim University, Department of Logistics Management, Von-Lade-Str. 1, Geisenheim D-65366, GermanyCorresponding author.; Hochschule Geisenheim University, Department of Logistics Management, Von-Lade-Str. 1, Geisenheim D-65366, GermanyThis study investigates supply chain networks of small and medium-sized companies in the ornamental plants, perennials and cut flowers business in non-auction-driven markets such as Germany, and formulates a mathematical model depicting prevalent network design options. The results are based on an embedded multiple case study featuring in-depth expert interviews with people in charge of corresponding companies. The typical logistics network structures and associated product flows are identified and systematized that represent the supply chains of producers, wholesalers and retailers, as well as their vertical integration. These supply chain networks are analyzed in terms of characteristics and context-specifics and finally transferred to a mathematical model formulation. We find that direct deliveries from producers to retailers are preferred despite production-related lead times of several months or more because of shorter transportation times and therefore better product quality. Wholesalers are mostly used to compensate for product surpluses or deficits, and can offer short lead times. Our results show that the whole sector is dependent on reliable information about the market situation that is needed for accurate planning among the uncertainties the sector faces regarding aspects such as quality fluctuations, pests, trends in demand, and weather impacts on plant growth and final customer demand. This study is the first to provide a systematization and model of logistics systems in the horticulture business. It thereby aims at building the basis for a decision-oriented future stream of research, investigating and optimizing logistics in horticulture in a sustainable manner.http://www.sciencedirect.com/science/article/pii/S2667259622000121Supply chainHorticultureLogistics planningNetwork structureProduct flowsEmbedded case study
spellingShingle Marius Drechsler
Andreas Holzapfel
Horticultural supply chain network design of small and medium-sized enterprises
Sustainability Analytics and Modeling
Supply chain
Horticulture
Logistics planning
Network structure
Product flows
Embedded case study
title Horticultural supply chain network design of small and medium-sized enterprises
title_full Horticultural supply chain network design of small and medium-sized enterprises
title_fullStr Horticultural supply chain network design of small and medium-sized enterprises
title_full_unstemmed Horticultural supply chain network design of small and medium-sized enterprises
title_short Horticultural supply chain network design of small and medium-sized enterprises
title_sort horticultural supply chain network design of small and medium sized enterprises
topic Supply chain
Horticulture
Logistics planning
Network structure
Product flows
Embedded case study
url http://www.sciencedirect.com/science/article/pii/S2667259622000121
work_keys_str_mv AT mariusdrechsler horticulturalsupplychainnetworkdesignofsmallandmediumsizedenterprises
AT andreasholzapfel horticulturalsupplychainnetworkdesignofsmallandmediumsizedenterprises