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Estimating the effect of changing retailing structures on the greenhouse gas performance of FMCG distribution networks

  • Original Paper
  • Published:
Logistics Research

Abstract

The assessment of greenhouse gas (GHG) emissions of supply chain activities is performed to create transparency across the supply chain and to identify emission-cutting opportunities. Literature provides several generic and case study approaches to estimate GHG emissions. But research often focuses on products. This paper sheds light on how the greenhouse performance of a fast-moving consumer goods (FMCG) distribution network depends on several (FMCG specific) variables to set up a “CO2 network footprint”. Within a quantitative computational study, the distribution network footprint of an existing FMCG manufacturer is analyzed. Three options being fundamentally able to reduce total GHG emissions are identified: number of distribution centers, performance of the engaged logistics service provider and shipment structure. First, transportation processes for the investigated FMCG manufacturer are analyzed to derive GHG emissions caused by different distribution shipments. Second, initial data are manipulated to simulate variable changes, that is, different logistics structures. Third, results are reported and analyzed to show up how different changes in logistics structures may reduce GHG, without technological propulsion or use of regenerative energy.

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Notes

  1. The abbreviations used in the analysis are GHG, greenhouse gas; CFP, carbon footprint; FMCG, fast-moving consumer goods; MDC, manufacturer distribution center; RDC, retailer distribution center; TSP, transshipment point; LSP, logistics service provider; DSD, direct store delivery; FTL, full truck loads; LTL, less than truck load; DS, delivery shipment.

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Authors and Affiliations

  1. Department of Business Administration, esp. Controlling and Logistics, University of Regensburg, Universitätsstraße 31, 93053, Regensburg, Germany

    Florian Kellner & Johannes Igl

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  1. Florian Kellner
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  2. Johannes Igl
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Correspondence to Florian Kellner.

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Kellner, F., Igl, J. Estimating the effect of changing retailing structures on the greenhouse gas performance of FMCG distribution networks. Logist. Res. 4, 87–99 (2012). https://doi.org/10.1007/s12159-012-0063-3

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  • DOI: https://doi.org/10.1007/s12159-012-0063-3

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