Assignment # 1

Title of Assignment
Case-Study: Innovative Approaches to Improve Sustainability of Physical
Distribution in Dutch Agri-food Supply Chains

Submitted To:
Mr. Tahir Masood Khan

Submitted By:
Izhar Karim
Osama Pervaiz
Salman

Course
Green Supply Chain Management

Programme
MBA-36 Evening

Date of Submission
April 2, 2021
How do you define Distribution?

Generally, distribution refers to process of monitoring flow of goods from supply point to the
demand point. In other words, distribution means making your product/service available to meet
the needs and wants of your customers in order to satisfy their needs.

In Supply Chain Management distribution refers to the process of overseeing the management of
flow of goods or products from supplier to manufacturer and then to the end consumer. The
activities in distribution encompasses packaging, inventory management, warehousing, supply
chains and logistics.

What are key strategies in Dutch Agri-food Supply Chains?

According to the given case-study there are three main key strategies that Dutch Agri-food
Supply Chains use which includes Efficiency Strategy, Reduction Strategy and Alteration
Strategy have used for making sustainable physical distribution. The key point of which are as
under

1. Efficiency Strategy
Efficient Strategy focuses on making efficient transport by optimizing load factor and better
utilization of available transport equipment
• First through optimization of the load factor and reducing the amount of fuel
• Optimization of truck load can be attained by combining rides which was termed
as “fright bundling’” or collaboration with others partners/competitors in sharing
the rides but this is nearly impossible to happen due to complexities associated
with the nature of goods being transported for e.g. as it was mentioned that quality
of bananas could affect the other fresh products and cannot be transported in one
transport unit. Similarly combing two un-related products (Agricultural and non-
agricultural could cause problems). There were odor related issues discussed as
well
• As mentioned in the case, although freight-bundling lowers the cost of
transportation provided shippers and receivers are in close proximity but
practically this could not be possible.
• The delivery time of both parties (shippers and receivers) was another factor as
they both have specific picking or delivery time which cause
• Another problem was truck carried some logo of the shipper and considered an
extension of branding the shipper’s name
• Reducing fuel consumption for a provided distance
• Since CO2 emission is directly linked to amount of fuel used by the trucks, the less fuel
used lower the CO2 emission during transportation.
• Training the drivers to be energy- conscientious (Eco-driving style) which can be
monitored by installing a device in the truck which gives all the information
 • This information can be analyzed to find improvements
• Another way to improve fuel consumption of the transportation is to replace the
currents fleet of truck with better mileage and by ensuring proper maintenance of
existing fleet.
2. Alteration Strategy
Alteration strategy seeks to change the transport patterns and behaviors altogether using
various alternatives such a cleaner fuels, renewable fuel

Using Cleaner Fuel Sources

• This strategy means changing the way of doing things (operations)
• This means traditional modes could be replaced by other modern means with the aim of
reducing Carbon footprint.
• Every environmentally conscious shippers or logistics service should used partly rail, seal
not only the truck transportation rather inter-modal transportation to reduce CO2
• Another type of alterations strategy to gain more sustainable distribution is use alternative
fuels which can be cleaner i.e. which emits less CO2 or renewable energy resource.
• Using cleaner fuel means start using mineral oils that produces less CO2 or change
alternative fuels such as electricity or fuel made form agri-food products like bio-fuel
• Less polluting fuel includes liquid gas, natural gas or cleaner gasoline
• Electric engines emit less CO2 during transportation but their limitation is its range and
generation of electricity is another problem which is costly as well
• Electricity produced from nuclear sources results into radio-active waste which is very
hazardous and need to stored for very long
• Developments and breakthrough in fuel-cell technology by which electricity is generated
by a battery.
Using Renewable fuels
• Electricity generate by power, wind, hydro power is more considered to be sustainably
and generates less CO2 as compared to fossil fuels sources
3. Reduction Strategy
Reduction Strategy aims to avoid un-necessary and non-value-added means of transportation
meaning removing all the waste from transportations
• This strategy means reducing the use of material and equipment. This can be the result of
actions that were previously taken in efficiency strategy as well such as that like
optimizing load factors by better planning system and freight bundling or collaborations
• Reducing the distance between Agri-food industries and farmers thereby minimizing the
use of transportation which in-turn will lead to reducing CO2
• It also has an impact on quality and reduces food losses and spoilage while
transportations and storage
• Quality- reduction of agri-food product during transportations and storage can be saved
by two ways. (1) proper conditioning of Agri-product while transportation and storage
 (2) speeding the flows of goods in supply chain by choosing smaller productions and
transportations lots

4. What are relevant strategies for Pakistani Agri-food supply chain?

Since, the provided case-study has been undertaken in the context of Dutch Agri-food Supply chain and it
has it has its own dynamics attached with it, however we try to relate and observe the relevant strategies
which might be beneficial for Agri-food supply chain of Pakistan for the sustainable physical distribution

As there were three main strategies discussed which Dutch Agri-value chain use for sustainable physical
distribution which includes efficient, alternation and reduction strategy. If we analyze these strategies in
context of Pakistan’s Agri-food supply Chain it is as under:

Efficiency Strategy:

This strategy can be relevant strategies to make Pakistan’s Agri-value chain more sustainable because it
aims at making better use of modes of transportation which can be either be: by optimizing the load
factor, for example Pakistan’s agri-food supply chain uses trucks for transporting agriculture produce to
inter or intra-city and we often see either the trucks are quite old or are obsolete which they produce high
CO2 during transportation which is causing serious problems to the environment. In terms of load factor
too, there is need to optimize the amount transported through these trucks. Also, the concept of freight
bundling can be helpful but obviously it has some demerits associated with it as discussed, as it is nearly
impossible for partners to collaborate and come together due to different nature of products involved with
the nature of agriculture-goods being transported.

Reduction Strategy:

I think this strategy can be also be relevant in context of Pakistan Agri-food Supply Chain for making
physical distribution more sustainable because since it aims to reduce the distance between the farmers
(origin) and the processing factory or plant (temp-destiny) thereby minimizing the spoilage and obsolesce
associated with them while transporting or storing them. This will also reduction CO2 emission due to
lesser movement while shipping these products from farms to processing centers.