Towards electric logistics by optimizing network design and operations

Abstract

This research explores the integration of electric vehicles (EVs) into the logistics of bulk-liquid transportation, specifically within Heineken Netherlands’ operations, using a two-echelon network. This study is pivotal as it aligns with global moves towards zero-emission regulations and sustainability in logistics. The primary question it addresses is optimizing a logistic network and truck operations for bulk liquid delivery by transitioning to EVs within a two-echelon framework, ensuring efficiency while adhering to sustainability and regulatory demands.
The investigation employs a sequential exploratory strategy, beginning with qualitative analysis to identify core challenges and opportunities, followed by quantitative methods to refine network design and decision-making. Advanced clustering techniques such as the center of gravity, p-median, and k-means are utilized to determine optimal depot locations, essential for overcoming the operational range and charging limits of EVs. This approach aids in developing a logistics network that is both operationally efficient and environmentally sustainable.
A significant portion of the study focuses on vehicle routing within the two-echelon location-routing model. It considers critical factors like the limited range of EVs, multi-compartment transport requirements for bulk liquids, and specific customer delivery windows. The model integrates these elements to optimize vehicle routes for efficiency and regulatory compliance, illustrating its practical use through the two-echelon multi-compartment electric vehicle routing problem with time windows (2E-MCEVRPTW).
The practical application of this research is demonstrated in a case study of Heineken Netherlands, highlighting the logistical complexities of transitioning to an EV fleet for beer distribution. The study examines operational challenges such as vehicle range and product diversity management, proving the viability and effectiveness of the proposed models.
Results discussion reveals that strategic network design using the center of gravity method significantly enhances kilometer savings and operational efficiencies. However, the benefits diminish with additional hubs, indicating an optimal hub number exists. While transshipment costs pose a significant challenge, outweighing the kilometer savings, potential cost reductions through increased reefer capacity and reduced transshipment times are identified, pointing to possible areas for improvement.
The study concludes that the two-step optimization process, integrating network design and vehicle routing, effectively addresses the research question. It not only shows the potential of EVs in transforming logistics but also underscores the economic and operational challenges of adopting a two-echelon network. The findings lay a groundwork for future innovations in sustainable logistics, though they caution the need for tailored solutions across different operational contexts and suggest further research into computational strategies and customer clustering for enhanced route optimization.