Distribution and value added logistics in the cold chain product market with application to the role of seaports
Institute of Development Policy and Management
Institute for Transport en Maritime Management (ITMMA)
Asian Logistics Round Table 2012 Conference (ALRT 2012), University of British Columbia (UBC), Vancouver, 14-15 June 2012
University of Antwerp
A crucial question for logistics services providers is to decide where in the supply chain network to operate value added logistics services (VALS). When handling cold chain products, this question becomes even more complex due to the unique logistics characteristics of this kind of products. A cold chain is a supply chain which deals with temperature sensitive and often highly perishable goods. Each step along the whole cold chain needs special care to ensure the quality of the products and to optimize shelf life. The global market of cold chain products is increasing rapidly due to the development of cold chain techniques and transportation efficiency. This market is further characterized by a specific economic geography of cold supply chains and competition between market players such as supermarkets and producers for chain control. This paper discusses distribution and value added logistics in relation to cold chain products. We are particularly interested in understanding how location decisions regarding value added logistics services are made when dealing with cold chain products. This study aims to present (1) the current dynamics in the organization of cold chain logistics; (2) the specific logistics characteristics of cold chain products, and comparison among different cold chain products, and (3) the effect of the specificities of cold supply chains on location decisions regarding VALS. This study also presents case studies on bananas, pineapples and kiwifruits cold chain to illustrate the optimal location selection process regarding VALS for different cold chain products.