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Energy consumption in the yogurt supply chain ( French and Greek cases)

Energy consumption in the yogurt supply chain ( French and Greek cases). COST meeting , Arcueil 19/5/05 F.Mikiki (CERTH/HIT), C.Rizet (INRETS). Objectives Analyse energy consumption in yogurt supply chain according to Companies’ logistical choices

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Energy consumption in the yogurt supply chain ( French and Greek cases)

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  1. Energy consumption in the yogurt supply chain(French and Greek cases) COST meeting , Arcueil 19/5/05 F.Mikiki (CERTH/HIT), C.Rizet (INRETS)

  2. Objectives Analyse energy consumption in yogurt supply chain according to Companies’ logistical choices How to reduce this consumption : changes in logisticalbehaviorsand their determining factors At adisagregatedlevel Yogurt : Just in time and cold chain Fundedby ADEME via PREDIT, 2003-2005 Energy consumption in the yogurt supply chain

  3. Supply chain approach & method • Energyconsumedper1 kg of yogurt(goe/kg) accordingto theSupply chain organisation • Geography(clients andplat-formslocalisation) • Type of distribution : Hypermarket/ corner shop • Cooperationbetweenpartners: information sharing • We started from the clients and retailers and went upstream • Energy consumption is estimated at each step, with the operators, then converted into gram of oil equivalent (goe/yogurt kg)

  4. Limitations Differences between the two surveys: different response from the agents involved, commercial schemes, mixof energy sources, no such e-commerce in Greece etc General limitations : environmental performance and energy consumption, a rather neglected question especially within private companies; private sector involvement: not familiar with such research works; rather skeptical with researchers that question their proper strategies, choices and practices adopted; confidentiality of data As regards Greek survey, withdrawal of certain agents, time constraints and budget limitations were also penalizing.

  5. The 9 steps of the yogurt Supply chain(French case) 1tanker 3Reefer truck 2Yogurt factory Milk farm • 4 producer • Platform 5Reefer truck 6retailer Platform Consumer’s home 8 shop 7Reefer truck 9consumer’s car

  6. The 7 steps of the yogurt Supply chain(Greek case) 2Yogurt factory Milk farm • 4 producer • Platform 3Reefer truck 1tanker 5Reefer truck 6shop Consumer’s home 7consumer’s car

  7. The two cases (i) (i) France Carte : V. Guilbault

  8. The two cases (ii) ii) Greece

  9. France Milkiscollectedfrom thefarmsaroundthe factory: 4.6 goe/kg If not enough,bought fromothertownsata longer distance : 11.9 goe/kg Average : 6.2 goe/kg Greece (2 cases) Milkiscollectedfromthe farmsaroundthefactory No further milk purchased Case 1 (Evr) 12.6goe /kg Case 2 (F) 15.7 goe/kg Step1 : Milk sourcing

  10. Step2 : yogurtfactory A lot of energyisneededin thefactory • To cool theproducts(electricity) • To warm themup (gaz) • For collectinginputs andsendingtheserum(Gazole) • Total 39 goe/yogurtkg French factory • Total 32 goe/yogurtkg Greek factory • Total 33 goe/yogurt kg 2nd Greek company For the first two activities

  11. Steps 3, 5 (& 7) : road transport by reefer vehicles Consumptionis linkedto -Distance -Vehicletype -Loadfactor -Durationof reefer(reefer: 15%) Consump. Between0.8 & 13.0 goe/Yogurtkg /journey Road transport by reefer vehicles to distribution platform French case study : 10,4 goe/Yogurtkg Greek case study : 8,3 goe/Yogurtkg

  12. Step 4 (& 6) : Platforms The Greek company did not provide data for the energy consumption in its distribution platform Step8 (or 6) : theshops Greek case: deficit of data for shops (+ not covering the range of French shops) No such e-commerce in Greece so we covered specific steps of the chain..

  13. Further Greek survey and other conclusions (i) • Comparison between 2 greek companies • Energy costs for the supply of the same region. • The structure of their supply chain is comparable and have opposite origine-destination points. • Empty movements of both fleets are common.

  14. Further Greek survey and other conclusions (ii) Contribution of this research Optimisation of the supply services in the region of Thrace, achieving considerable environnemental benefit through the synergy of the two companies via the combinaison of their networks and ressources A mathematical model was developed for the optimisation of trips and the minimisation of the fleet used. A new logistical structure was proposed with one common platform in the middle of their respective origin points with the use of common fleet Of course this work did not aim to tackle the problem exhaustively but it is a good starting point for a change in the companies’ logistical choices.

  15. French survey next steps As regards the French survey and the steps of platforms and shops…

  16. Step 4 (& 6) : Platforms The energy consumption in theplatforms is linked to • Platformarea, Activities(freshproducts, & design … • Operatedtonnage Demandandcapacity(Tonnes /year)

  17. Step8 (or 6) : theshops Energyconsumption in theshop = (general consumption + présentoir) / volume sold • for averageproduct: 23 - 123 gep/kg • for yogurt in the shop: 26-51 gep/kg • E-commerce : 11,2 gep/kg

  18. Step 9 : consumer journey Averageclient’ consumption islinkedto: -% of theclients in a car -Distance (0.5 to 10 km)􀂄 -Averagebasket weight (2 to 15 kg)􀂄 These3 variables are linkedto theshop area (m2) andzone density: 1 – 71 goe/ kg yogurt (France)

  19. factory Logistics shop client 200 gep/ kg 150 100 50 0 Hyper Super Proxi E-com French Survey conclusions (I) Energy consumption/yogurtkg according to distribution type • if the shop’s surface increases: • -factory, consum. identical • -logistics, consum. decreases • -shop, consum. decreases • -client, consum. increases very intensely • In total , consumption increases • Home delivery: efficient for both shop and clients

  20. factory Logistics shop client geqCO2/ kg 600 400 200 0 Hyper Super Proxi E comm Frenchsurvey conclusions (II) GHG emission / yogurtkg according to distribution type • In relation to energy graph: • Electricity counts much less (shop, platform) • The chains scale is comparable

  21. Overall conclusions Attempting international conclusions is helpful although can be difficult to implement However, respective national conclusions can be of mutual benefit Logistical practices are being mondialized and given the common goal for sustainable freight operations, bilateral initiatives can contribute to better logistical choices Thank you for your attention F.Mikiki

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