Redesign of the Car Distribution Process: a Dutch case study

Abstract

Purpose - With the short term need to reduce direct CO2 emissions of trucks in distribution processes, this paper aims to provide an easy to implement solution approach for distribution processes of new cars from holistic perspective. Scarce emphasizes is provided on short-term alternatives in truck-based distribution processes and approaches lacks applicable for large scale problems including split delivery function.
Design/methodology/approach - The distribution process and model methods are analyzed using a literature study and interviews with experts, resulting in the development of a solution approach. Combined with an extensive field research, a solution approach enables the performance evaluation of the current state, and the policy implications. Future designs are used to validate the solution approach by calculating performance differences in multiple relevant evaluation domains.
Findings - The analysis of the current state has identified critical bottlenecks, leading to the development of two promising policies. The application of a new and validated prioritization strategy and permitting more stops per truck has successfully yielded a significant reduction in CO2 emissions. The performance of the solution approach demonstrates high precision on a small scale and yields results comparable to actual practices on a larger scale, suggesting the approach's effectiveness and potential for future application.
Research limitations/implications - This research provides a new solution approach for evaluating direct CO2 emissions of model different designs of distribution processes. Despite its narrow scope, the transportation sector has a significant environmental footprint, and offers the potential for substantial reductions in emissions. From modeling perspective, further research is suggested in integrating split delivery function without using dummy variables.
Originality/value - This paper contributes by identifying critical gaps in the understanding and implementation of system-wide efficient car distribution processes from distribution hubs to car dealers. It not only addresses potential improvements, but also proved efficiency gains of the system with a new solution approach, using a new combination of a state-of-the-art meta-heuristic and a proven split delivery method applicable for large-scale problems.