Innovative Logistics Services and Sustainable Lifestyles: Interdependencies, Transformation...

Ani Melkonyan middot Klaus Krumme Editors

Innovative Logistics Services and Sustainable LifestylesInterdependencies Transformation Strategies and Decision Making

Innovative Logistics Services and Sustainable Lifestyles

Ani Melkonyan bull Klaus KrummeEditors


ISBN 978-3-319-98466-7 ISBN 978-3-319-98467-4 (eBook)httpsdoiorg101007978-3-319-98467-4

Library of Congress Control Number 2018965418

copy Springer Nature Switzerland AG 2019This work is subject to copyright All rights are reserved by the Publisher whether the whole or part of the material is concerned specifically the rights of translation reprinting reuse of illustrations recitation broadcasting reproduction on microfilms or in any other physical way and transmission or information storage and retrieval electronic adaptation computer software or by similar or dissimilar methodology now known or hereafter developedThe use of general descriptive names registered names trademarks service marks etc in this publication does not imply even in the absence of a specific statement that such names are exempt from the relevant protective laws and regulations and therefore free for general useThe publisher the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty express or implied with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations

This Springer imprint is published by the registered company Springer Nature Switzerland AGThe registered company address is Gewerbestrasse 11 6330 Cham Switzerland

EditorsAni MelkonyanCentre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germany

Klaus KrummeCentre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germany

v

Foreword

Three years after launching the United Nations Sustainable Development Goals (SDGs) and agreeing on far-reaching global ambitions on climate action at the Paris Summit the world looks increasingly fragmented Daily news confirms sweeping nationalism and phobia against lsquoothersrsquo all around The spirit of collabo-ration is vanishing Goodwill of sustainability is confronted with socio-economic fundamentals of many people feeling left behind with widespread anger in each part of societies and with environmental challenges threatening the health and live-lihood of millions

The Indian author Pankaj Mishra traces the current lsquoage of angerrsquo as he calls it in his book partly back to Western philosophy of the eighteenth and nineteenth century and gives numerous evidence of well-known writers such as Voltaire and Rousseau mixing modernization and progress with a pursuit of national self-interest and a justification of oppressing people living in other civilizations Rethinking why terms like homeland are often misinterpreted as lsquous against themrsquo and where the sense of dislocation and the insurrectionary fury of populists come from is one of the great challenges of our time We need a better understanding of underlying cul-tural drivers in order to develop a new economic thinking that could pave the way towards sustainability Coming up with lsquowin-winrsquo options and new low-carbon technology pathways is simply not enoughmdashwhat is needed is a new philosophical framework helping people to come together and act collectively across boundaries

It is of utmost importance to acknowledge the relevance of international supply chains and changing lifestyles in a broader picture International supply chains con-nect companies and people they help with producing and delivering goods and services from one corner of the world economy to another Spanning over the globe they also give rise to knowledge on sustainable sourcing and footprints of daily consumption It is here where individuals and organizations practise steps towards improving working conditions and quality of life exemplified through products of daily use such as food

This book is about challenges for logistics towards sustainable supply chains and aligning it with demands for more sustainable lifestyles The editors and authors come forward with the ambition of a systemic approach analysing sustainability

vi

transitions and resilience value creations through supply chains and lifestyle changes towards sustainable consumption At the core it presents thoughts and find-ings on new business models in the food sector and how the current model of large retailers could be challenged in the future The last chapter elaborates on strategic choices and offers a network analysis model for logistics and does not hesitate to give recommendations on the way forward

The future however is open Future pathways and transitions could go quite different routes and some of them might not be sustainable or even contribute to conflicts mayhem and environmental destruction Societies clearly have to make choices and researchers ought to raise voices for sustainability The particular value of this book is that it offers evidence and tools for transformative thinking in logistics towards the SDGs in a truly global spirit

Chairman and Full Professor Sustainable Global Resources University College London (UCL) London29 August 2018

Raimund Bleischwitz

Raimund Bleischwitz has been Principal Investigator of an international collaborative project on the circular economy in China (SINCERE) and he participates in a number of EU projects on eco-innovation and raw min-erals (GreenEUinno4SD RECREATE POLFREE Minatura Mica) Till July 2018 he was Deputy Director of the UCL Institute for Sustainable Resources (UCL ISR) Raimund had previous positions at the Wuppertal Institute in Germany at the College of Europe in Bruges (Belgium) at the Max Planck Institute for Collective Goods at the Institute for European Environmental Policy and in the German Bundestag and fellowships at the Transatlantic Academy (TA) in Washington DC at Johns Hopkins University (AICGS JHU) and in Japan (JSPS) Raimund wrote his PhD on resource productiv-ity at University of Wuppertal (1998) and his ldquoHabilitationrdquo on collective goods and knowledge-cre-ating institutions at University of Kassel (2005) His research interests cover the sustainable development resource efficiency resource nexus conflict minerals international governance and interface of policy and industry and resulted in more than 250 publications

Foreword

vii

Acknowledgements

The editors and the authors express their deep gratitude to the Federal Ministry of Education and Research in Germany and the German Aerospace Center for funding the project ILoNa (Innovative Logistics for Sustainable Lifestyles period 1 May 2015ndash30 April 2018) The contributions in this book are based on this research proj-ect but also open up further perspectives For the first time the book establishes an integrated view of the dynamics between logistics services and lifestyles in the con-text of sustainable development The editors expressly thank all authors for their willingness and commitment to share a variety of highly interesting aspects of their research and to include them in this publication

ix

Contents

Part I Introduction and Overview

1 Integrating Perspectives of Logistics and Lifestyles for a Sustainable Economy 3Ani Melkonyan and Klaus Krumme

2 Supply Chains and Systems of Sustainability An Attempt to Close the Gap 21Klaus Krumme

Part II Challenges in Logistics and SCM Trends in the Sector Considering Consumer Lifestyles

3 Leverage Points for Sustainable Innovative Logistics Considering Consumer Lifestyles 63Rosa Strube and Thomas Wagner

4 Assessment of Consumer Attitudes Toward Sustainability in Food Logistics and the Role of Shopping Behavior and Personal Characteristics 87Gerrit Stoumlckigt Rosa Strube Sarah Lubjuhn and Matthias Brand

5 Green Bullwhip Effect Revisited How Sustainable Lifestyles Might Influence Supply Chains 105Matthias Klumpp

6 Communicating Sustainable Logistics Innovations to Various Consumer Groups 115Sarah Lubjuhn Martine Bouman Roel Lutkenhaus and Klaus Krumme

x

Part III Transformation Potential Towards Sustainable Supply Chains

7 Local and Sustainable Food Businesses Assessing the Role of Supply Chain Coordination 143Tim Gruchmann Madeleine Boumlhm Klaus Krumme Simon Funcke Simon Hauser and Ani Melkonyan

8 A System Dynamics-Based Simulation Model to Analyze Consumersrsquo Behavior Based on Participatory Systems Mapping ndash A ldquoLast Milerdquo Perspective 165Gustavo De La Torre Tim Gruchmann Vasanth Kamath Ani Melkonyan and Klaus Krumme

9 Diffusion of a Social Innovation Spatial Aspects of ldquoFoodsharingrdquo Distribution in Germany 195Romy Koumllmel Carolin Baedeker and Jonas Boumlhm

Part IV Scenario and Strategy Development for Future Sustainable Supply Chain and Logistics Services

10 Scenario Planning for Sustainable Food Supply Chains 211Ani Melkonyan Tim Gruchmann Adrian Huerta and Klaus Krumme

11 Applications of Digital Technologies in Sustainable Logistics and Supply Chain Management 235Fuyin Wei Cyril Alias and Bernd Noche

12 Sustainable Logistics and Transportation Systems Integrating Optimization and Simulation Analysis to Enhance Strategic Supply Chain Decision-Making 265Tim Gruchmann Jan Eiten Gustavo De La Torre and Ani Melkonyan

Part V Synthesis and Perspectives

13 Recommendations for Politics Companies and Intermediaries to Support the Transformation Toward Sustainable Supply Chains 283Nomo Braun

14 Research and Innovation Perspectives on Integrated Supply Chains in a Sustainable Economy 289Klaus Krumme and Ani Melkonyan

Index 309

Contents

xi

Ani Melkonyan is Associate Professor of Environmental Sciences at the University of Duisburg-Essen (UDE) Executive Board Member of the Universityrsquos Centre for Logistics and Traffic (ZLV) and Senior Lecturer for the international masterrsquos pro-gramme on urban systems (Sustainable Urban DevelopmentUrban Culture Society and Space)

From 2015 to 2018 she was coordinating the research project ILoNa (lsquoInnovative Logistics for Sustainable Lifestylesrsquo) funded by the Federal Ministry of Research and Education Germany Amongst other aspects within the project she devel-oped and assessed sustainability potentials in food sup-ply chains with business partners Further projects she is involved in are the accompanying research of the European Green Capital 2017 and NEMO (lsquoNew Mobility Concepts along Emscherrsquo) funded by the Mercator Foundation

Ani Melkonyan has completed her lsquohabilitationrsquo (Venia Legendi) in Environmental Sciences about the climate change influences on the agricultural sector in developing countries She also holds a PhD in Environmental Sciences from the University of Duisburg-Essen Her masterrsquos thesis was on mathemat-ical modelling in macro- and micro-economy which she completed at the Yerevan State University Faculty of Economics In her research on sustainable develop-ment Ani Melkonyan unites ecological and economic domains as well as quantitative and qualitative meth-ods She is an author of more than 20 scientific publications

About the Editors

xii

Klaus Krumme is Executive Director of the Center for Logistics and Traffic (ZLV) at the University of Duisburg-Essen (UDE) and Board Member of the Universityrsquos Joint Center Urban Systems (JUS) In addition he is Co-Chairman of DIALOGistik a lead-ing science-business platform focusing on sustainable business and innovation management in logistics in the Ruhr area Germany

Responsible for the guiding strategy of lsquologistics design competencersquo in Europersquos largest logistics RampI cluster (lsquoEfficiency Cluster Logistics Ruhrrsquo winner of Germanyrsquos leading-edge cluster competition 2010ndash2015) and the European Union Regions of Knowledge lsquoLog4Greenrsquo project (2011ndash2014) he contributed to a strategic interdisciplinary research agenda for sustainable logistics and initiated blended strategies between sustainable consumption and supply chain management which were fundamental for the project ILoNa and for the presented book

Klaus Krumme is an interdisciplinary scholar graduated in Environmental Sciences as well as in Geography Biology and Educational Science He is Senior Lecturer of Sustainability Science for the international masterrsquos programme on urban systems (Sustainable Urban DevelopmentUrban Culture Society and Space) His work concentrates on transdisciplinary sustainability strategies with a focus on resilient urban and regional systems as well as the transformational potential of logistics and supply chain management in domains of the green economy

About the Editors

xiii

Recommendations

With this book Melkonyan and Krumme provide a valuable contribution to the current sustainability discourse and impressively illustrate how sustain-able concepts in logistics and supply chain manage-ment can help to offer added value not only to the environment but also to companies and consumers Of particular importance for scientific discourse and economic practice is the linking of sustainable logis-tics networks with the challenge of addressing diverse and differentiated customerrsquos needs and life-styles Here good management and life go hand in hand ndash good in terms of value and sustainability This is exactly what is needed to optimally exploit the sustainability potential of logistics in production and consumption

Climate change is currently affecting people in unprec-edented ways This is closely linked to the current eco-nomic and consumption patterns of rich societies The increasing consumption of raw materials and land air and water due to greater financial possibilities and complex production processes make innovative sustainable logis-tics systems and value chains indispensable As a linking element of processes and activities they also help to shape the systems structures and paths of innovation These competences can now be used to develop eco-intelligent and sustainable economic and social forms to manage material flows from the very beginning while integrating services and consumption completely differently into business models For the present there seem to be almost no limits to the reconstruction of the design but for the goal perspective there are with the SDGs of the UN clear points of orientation that have been created which especially apply to the development of new logistics sys-tems as transformation arenas

Melkonyan and Krumme scientifically analyse existing sustainable logistics systems and supply chain management concepts in an impressive way and dis-cuss their potential for success with regard to modern consumption and lifestyle patterns which have changed greatly in recent years due to technological innovation and digitalizationThe multiperspective analysis of logistics and lifestyles is particularly fascinating

About the Editors

xiv

balancing between highly digitalized and globalized consumption patterns and modern logistics systems

Thereby they are not only concentrating on the chal-lenges facing new logistics systems but they also analyse the patterns of life and consumption that need to be changed This mutual perspective opens up a completely new approach which is necessary to meet the current cli-mate policy challenges and to contribute to decoupling economic growth from increased resource consumption with a view to a green economy The book also reflects that research on logistics and consumption is still at the beginning Therefore it is even more important that this book has been published as it makes a first change of perspective and initiates discussion on this research gap

Professor at the Folkwang University of Arts Christa LiedtkeSustainable Research in DesignIndustrial Design Essen Germany

Director of the Research Group ldquoSustainable Production and Consumptionrdquo Wuppertal Institute for Climate Environment Energy Wuppertal Germany

Sustainability and logistics are two topics that can make a crucial contribution to prosperous economies in the future As the borders between actual production and its supply by logistics continue to blur first of all for sustainable value creation in the future it is impor-tant to connect the individual entities in value networks by logistics in a sustainable manner The present book by Ani Melkonyan and Klaus Krumme points out in five steps how sustainable logistics and sustainable supply chain management can succeed and is therefore a must-read for scientists and practitioners in these fields

Full Professor at Technical University of Dortmund Michael HenkeFaculty of Mechanical Engineering Chair of Enterprise Logistics Director of Fraunhofer Institute For Material Flow and Logistics Dortmund Germany

About the Editors

Part IIntroduction and Overview

3copy Springer Nature Switzerland AG 2019 A Melkonyan K Krumme (eds) Innovative Logistics Services and Sustainable Lifestyles httpsdoiorg101007978-3-319-98467-4_1

Chapter 1Integrating Perspectives of Logistics and Lifestyles for a Sustainable Economy

Ani Melkonyan and Klaus Krumme

A Melkonyan () middot K Krumme Centre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germanye-mail animelkonyanuni-duede

Abstract This chapter provides a first overview of the need for an intertwined view of modern logistics services and consumer lifestyles in holistically understood sup-ply chains The research subjects are placed in the overall context of a necessary transformation into a sustainable economic system The authors briefly define research gaps and systematically access the basic constellations of the underlying research approach for this book Goals and methods are named and an overall sys-temic view of the effect of the interplay between consumers services and all actors in the supply chain is established Finally the structure of the book is explained

Keywords Sustainable economy middot Logistics services middot Sustainable lifestyles middot Consumer behavior middot Green bullwhip effect middot Digital technologies middot Logistic networks middot Scenario and strategy development middot Innovative business models

Background and Introduction

The characteristics of our society spatial distribution of population the functional networking and organization age pyramids lifestyles as well as the material and informational equipment of significant groups changed significantly within the last decades In the coming decades the dramatic changes will continue and in some cases intensify It will be crucial how social and economic systems deal with the changes in terms of sustainable development and how we get from the currently predominant critical effects toward new opportunities

The living and economic quality of our society is decisively influenced by a large variety of consumer goods and connected (to a wide extent logistical) services within the productrsquos life cycles Highly specialized services along predominantly industrial value-added and supply chain networks enable production and distribu-

4

tion as well as redistribution and recycling or disposal At the same time products and the interrelated services cause over product life cycles serious global and local environmental impacts An overall optimization of a desired diversity and benefits on the one hand and a reduction of negative environmental impacts on the other hand are only possible in an interdisciplinary and transdisciplinary context For this forward-looking question research approaches are only rudimentary moreover there is no training of specialists in the practice

The following text will firstly discuss the role of logistics services and supply chains within our todayrsquos socioeconomic system and respectively as part of the interplays of consumption products services and lifestyles Next sustainability needs and issues are related to the above nexus Afterward the integration of the up till now rarely explored synergy between lifestylesconsumer behavior and logistics services is pointed out before the role of consumers for logistics and supply chain services is highlighted and blended research and innovation designs are explained Finally an overview of the chapter contributions of this book ends this section

The Role of Logistics in Todayrsquos Socioeconomic Systems

Logistics and supply chain management (SCM) represent decisive factors within todayrsquos globalized economic value system The business models of logistics have been changing due to the strong integration of information and communication technology (ICT)-based services toward a direction of a more integral control and enrichment of value-added services in terms of contract or system logistics (Zelewski and Muumlnchow-Kuumlster 2012) The performance-determining share of logistics in the value-adding interplay between production and consumption has thus steadily increased The typical logistics domains of transport turnover and storage have expanded to a variety of cross-sectional tasks in rendering comprehensive industrial services for the entirety of production and supply systems These extend to the over-all planning of supply networks in terms of configuration and coordination of sup-ply chain partners partial production steps assemblies and shaping of retailing businesses Newer logistics value-added services configure high-quality after-sales services as well as the reintegration of products into life cycles as reuse recycling refurbishment or remanufacturing The result shows logistics and SCM as a cross- oriented determining backbone of economic performances and the compulsory arrangements of complex economic interactions Logistics is therefore both a driver of and driven by the complexity of the respective value-creating networks (Krumme et al 2015)

With digitization logistics now creates a new era of combining its services with design options of cyber-physical systems (CPS) and expanding them into mostly data and information-dominated complex value systems where high diversity of qualities decentralization of services and benefices of those will build up a strong contrast of a new modern economic system to the conventional mainstream system of the ldquoold economyrdquo

A Melkonyan and K Krumme

5

Despite of all this it stays true that the flow of materials and goods as the central competence of logistics has a global impact not only in economic but also in eco-logical and social terms contributing to the climate change Climate changemdashin parts no longer a reversible phenomenon and in parts still a set of avoidable conse-quencesmdashembodies the symptoms of an unsustainable economic system acting as a root cause of global environmental changes and thus of related social and demo-graphic developments

Products Industrial Services Resource Consumption and Sustainability

The value creation patterns of modern products (from material extraction design and production supply chains to consumption and use) are currently causing unsustainable global resource consumption The claimed natural resources are finite and according to the current economic use are limited in time (Rockstroumlm et al 2009 Steffen et al 2015) The regeneration capabilities of the basic ecological sys-tems have already been exceeded (Barnosky et al 2012 Hoekstra and Wiedmann 2014 Rockstroumlm and Klum 2015) Despite all the progress achieved so far in mate-rial efficiency and substitution in various sectors the past decades have seen a steady rise in the material intensity meaning the absolute amount of recovered raw materials as well as the total turnover of used materials (Wiedmann et al 2013 Giljum et al 2014 Dahmus 2014) It can be assumed that the non-sustainable use of natural resources in particular fossil fuels will become significantly more expen-sive andor increasingly politically intolerable in the near future (Payne and Dutzik 2009)

In the course of global demographic developments this trend will intensify even more if not very profound changes in raw material extraction material quality production management of value and supply chains and not least qualitative transformations at the consumer side will take place

Although there are increasingly products that are suitable for example reducing the energy consumption in the everyday life the effectiveness of such product inno-vations depends heavily on the ldquoappropriaterdquo usage by users as part of lifestyles and the avoidance of counterproductive rebound effects in order to achieve a gain in terms of sustainable development

For the future it is important to judge products of our daily life not only according to their usage characteristics but also according to their sustainability characteristics which connects a product with numerous repercussions in its way of the product life cycle Progress in product development means on the one hand to achieve better qualities in many respects for the people using them (eg satisfaction of individual demands high economic and social value advantages of the use through material and technology) but on the other hand to take into account the societal benefits of the product and all its interrelated factors in the value-creating system

1 Integrating Perspectives of Logistics and Lifestyles for a Sustainable Economy

6

Logistics and Sustainability

To clarify central numbers of logistics with respect to climate change greenhouse gas emissions (GHGE) stemming from the ldquotransport and logisticsrdquo sector (includ-ing transport of people) are found to range globally between 24 and 32 (Ashnani et al 2015) Of this about 35ndash40 is accounted for the direct flow of goods and commodities with a strong upward trend by way of global increases in freight trans-portation which more than exceed efficiency gains made thus far

Not only but above all have the growth rates of the logistics industry resulted in an increase in freight transport performance In Germany where logistics is the third important branch it is the growth of freight transport turnover and warehous-ing that is particularly relevant for sustainable development The expansion of logis-tics activities is accompanied by high environmental impact suboptimal use of resources and increasingly congested transport infrastructure and finally responsi-ble for around 18 of the total national CO2 emissions (Lambrecht et al 2009)

In order to achieve progress for sustainability the effective amount of leverage in logistics should be even greater As explained todayrsquos modern logistical services configure a range of areas extending beyond the original boundaries of transport and distribution and integrate differentiated globally extensive value creation networks They are thereforemdashin both a positive and a negative sensemdashkey elements in strate-gies for a sustainable socioeconomic system

We see already all processes involved in logistics will inevitably become subject to necessary transformations to a sustainable ldquogreenrdquo economy Transformations will not cease in the face of raw material procurement production transport trade and consumption patterns as parts or factors of a supply chain But it is the transfor-mationsrsquo systemic context namely the supply chain which will become an integral factor in an industrial revolution where logistics will assume a central role (Rifkin 2014)

For some time ldquogreen logisticsrdquo is a much discussed topic and some answersmdashsuch as how we can modify transport or production environments to make them more socially and environmentally acceptablemdashare already at hand (Murphy and Poist 2000 Dekker et al 2012 Mckinnon et al 2015) Beyond pure reactions to changing conditions of the overall ecological social and economic systems a far less discussed issue is the proactive potential of logistics and SCM to make a valu-able contribution to the needed transition from the old economy to a modern and sustainable economy

Linking Sustainable Logistics with Sustainable ConsumptionLifestyle Research

One core pillar of such a more progressive course is the combination of strategies for sustainable logistics and sustainable supply chain management (SSCM) with those for sustainable consumption seeing the consumer as a terminal and


7

deterministic driving force of a supply system (Krumme et al 2015) What appears as the most natural connection is surprisingly rarely touched in scientific literature on both sides Most supply chain literature in fact underrepresented the demand and consumption side and neglects natural limits of demand understood as system-related limitation of consumption rates Instead the authors unilaterally focused on a theoretically ldquoexpansionisticrdquo supply side The functional integration of the demand side or even a coupling with concepts of consumer research has not taken place significantly neither in praxis-oriented models (eg the SCOR model1) nor has so far found any perception in the basic literature (compare Kouvelis et al 2006 Chopra and Meindl 2007 Simchi-Levi et al 2008) Demand is theoretically consid-ered to be infinite without taking into account secondary effects such as damage to the ecological environment or the negative impacts regarding social conditions along the logistics chain Although publications on SSCM generally consider these socio-ecological effects and make them the starting point for conceptual innova-tions in the management system (Seuring and Muumlller 2008 Carter and Rogers 2008 Carter and Easton 2011) the role of the consumer is not identified as a central driver and the inclusion of the well-developed research field of sustainable con-sumption is missing

Also the ldquodemand-orientedrdquo strategies related to logistics and SCM do only recog-nize demand in terms of more or less individualized consumer need fulfillments Demand chain management (DCM) is linking marketing with SCM but still with a one-directional view to more effectively shape the sales to consumers by identifying consumer demand needs as niches to optimize SCM and marketing measures with the goal to increase business competitiveness and company profits (Juumlttner et al 2007)

In contrast from a sustainability perspective and intensively discussed in research for sustainable consumption a qualitative shift on the demand side is needed for a sustainable economy (Jackson 2005 Alcott 2008 Seyfang 2009 Lorek and Spangenberg 2014) This puts the collective instead of the individual needs as a societal interest in the center but nonetheless without integrating the (logistics) ser-vices enabling a more or less sustainable form of consumption

Contextualizing logistics services with sustainable lifestyles as an integrated concept compared to sustainable consumption (Gilg et al 2005 Thoslashgersen 2005 Barr and Gilg 2006 Marchand and Walker 2008 Mont et al 2014) is a research gap Within this background we define lifestyles as the recurring overall context of a personrsquos behaviors interactions opinions knowledge and judgmental attitudes (Hradil 2005) whereas consumption is the process of buying consuming and dis-posing Lifestyles encompass broader activities and values that do not involve resource consumption alone (Mont 2007)

It seems obvious that sustainable consumption understood as buying consum-ing and disposing has direct functional links to SCM Likewise the more compre-hensive concept of sustainable lifestyles displays multifold interactions with regard to the continuous expansion of logistics services These expansions are being linked

1 ldquoSupply Chain Operations Referencerdquo model of the US Supply Chain Council (SCC) from the 1990s


8

to shifting consumer requirements through among others increased individualiza-tion and pluralistic behaviors as root causes within the modern socioeconomic sys-tem (Krumme et al 2015)

Also the other way around research on sustainable consumption and sustainable lifestyles (Jackson 2005 Schrader and Thoslashgersen 2011 Hicks 2013) was up to now not considering aspects of logistics or SCM Even if the reduction of transports (and its negative environmental impacts) plays a role for sustainable consumption (Hansen and Schrader 2001 van Acker et al 2013 Reimers 2013) the approaches more generally appeal to ldquobuy locally or regionally produced productsrdquo and to do avoid as far as possible ldquoshopping with the private carrdquo The actual complexity of supply chain tasks and processes as well as their dependencies with consumption habits and preferences remains underexposed and alternative system configurations (from the point of view of transition research) and innovations in the service portfo-lios of LSP (from the point of view of corporate development) are not taken up

If connections of the two research areas are made they remain limited to logis-tics as part of the value chain analysis or to the ldquolast milerdquo to the consumer Also GHGE still play the central role More comprehensive multifactorial assessments including other important ecological factors social aspects and the interdependen-cies of both are being significantly underrepresented so far (Faszlige et al 2009) The last mile of the supply chain focuses on the question of how the products are distrib-uted to the consumer (Is there a classical stationary retailing system or a delivery system Which infrastructures and services are used to equip the delivery system) However these considerations often come from a one-sided perspective of mobility as one aspect of sustainable lifestyles (Backhaus et al 2012) and rarely by including more comprehensive system configurations of the entire supply chain Neither deeper aspects on the supply side (such as methods of production lot sizes global-ized production and resulting logistics networks product life cycles) nor on the demand side (such as individualized preferences target group-specific changes in lifestyle the growing importance of social media online shopping) are considered Interconnections between production and consumption are mainly elaborated from a marketing perspective (Crane 2005 Smith 2008 Krumme et al 2015) particu-larly by designing and operating product certificates (Thoslashgersen et al 2010) or product qualities and pricing measures (Devinney et al 2010) Although this pro-vides a coherent view of producers retailers and consumers at the point of sale decisive KPI of upstream and downstream supply chain structures are not addressed In particular logistics services as an integrator of supply chains and value creation networks are not taken into account

The explained two-sided research gap is not just remarkable but represents an unused potential for concrete sustainability transitions In the transition context considering qualitative (also radical) shifts in lifestyles and consumption represent one of the most important strategies to reduce the overall resource consumption and the related ecological footprints (Ekins 1993 Spaargaren 2003) Accepting logistics and SCM as important counterparts facilitators and enablers of those societal trends expresses a high significance of the logistics-lifestyle interplay for a future sustainable economy Enabling sustainable lifestyles thus depends to a significant


9

extent on the perception and processing of the interdependencies to the logistics sector and its emerging services

Why a Consumer Perspective Matters

It can be concluded that necessary system changes on the path to a sustainable economy can not only be one-sided from logistics but have to be socially supported and demanded by consumers Current market observations however show rather contradictory mainstream trends The demand for gradually more flexible individu-alized and more complex logistics services which forcibly generate an amplified consumption of resources is a result of the increasingly required productservice variety as well as decreasing product life spans Logistics in this light does not just serve unsustainable consumption patterns but also triggers new waves of unsustain-able consumption Trends in e-commerce are redefining the demands on logistics and are massively increasing the overall logistics volume In particular the interplay of web-based businesses as well as enclosed delivery services to the private con-sumer has led to the atomization of shipment sizes and to significant increases in (urban) freight traffic within the recent years In Germany the GHGE resulting from direct freight transport to private households totaled to 50 Mta in 2015 This cor-responds to 61 of national GHGE (Destatis 2018)

Besides this it is also true that social tolerance against irresponsible business practices unsustainable ways of production and economic value creation is decreas-ing and consumer awareness for social and ecological sustainability dimensions is rising in most of the western societies and beyond (Vermeir and Verbeke 2006 Liu et al 2012 Shen 2014) In this bookrsquos context it seems important to what extent consumers know about and believe in sustainability key performance indicators (KPI) of logistics service providers (LSP) as one parameter of the relationship between the LSP and the consumer It is relevant to make sustainability KPI trans-parent and clearly understandable to the consumers when enabling sustainable con-sumption systems since the perception and trust into sustainable logistics will enhance the consumers to make a more sustainable choice (Krumme et al 2015)

Another strong argument to incorporate the consumer perspective into strategic planning of supply chains and their logistics services is the growing trend in e- commerce (Turban et al 2017) Within e-commerce LSP have best opportunities to interact with the consumer The consumers in turn can more easily introduce their requirements making supply chains a promoter of a sustainable economy Thus digitization gives us new means to link up companies and consumers within a value chain context to exchange virtually and to enhance supply chain transpar-ency at the same time If both sides service providers and consumers would enforce sustainability performances supply chain transparency can result into ldquosupply chain integrityrdquo as a qualitative term respecting a canon of interlinked sustainability KPI

At least it is a societal obligation a logistics business necessity and even a mac-roeconomic constraint to intensively deal with transformation processes toward a sustainable economy


10

Exploring the Interaction of Logistics and Lifestyles by Blended Research Designs

Putting an emphasis on alterative logistics structures and services within wider sys-tem boundaries (eg consumer dimensions) offers up to now hardly considered leverages for the precaution and compensation of sustainability gaps and to design less consumptive and qualitatively more sustainable value-creating networks as parts of a green economy Nevertheless a more detailed understanding of how logistics and SCM could serve exactly in this respect and about more concrete pre-liminary transformations or accentuations of logistics competencies to fulfill these expectations is missing Also it is a matter of research in which way consumer life-styles can match with more sustainable logistics options and how far consumer preferences have to shift to produce a synergistic effect between both sides of the coin logistics services and peoplesrsquo lifestyles

Thus the main goal of the book at hand is to contribute knowledge for a sustain-ability transition of the socioeconomic system particularly stressing the role of the logistics sector as being closely related to modern lifestyles and the ways of con-sumption within the society

With this background the book provides first research approaches to unify inno-vative logistics services with sustainable lifestyles referring to two research questions

1 How should innovative logistics services be designed in order to promote and enable consumersrsquo sustainable lifestyles while simultaneously meeting socio- ecological requirements

2 What kind of changes should take place from the consumer side in order to sup-port sustainable logistics structures and services

Since changes on the consumer side cannot be achieved solely by the offer of alter-native logistics services these questions have to be dealt in an interdisciplinary manner with the help of social and communication science and psychological expertise as counterparts of logistics and supply chain research It also implies addressing consumer demand patterns and requires the inclusion of current trends such as collaborative consumption andor sharing economy concepts as factors of innovation for the further development of business models of producers product providers and LSP (Krumme et al 2015)

The configuration options are analyzed from the perspective of holistically understood supply chains and alternative sustainable options for action are designed Exploratory methods are used to identify abovementioned external fac-tors that influence the processes in the logistics and supply chain system up to the consumer (Botsman and Rogers 2011 Gansky 2010)

Finally all this raises questions about the relationships between consumptionlifestyle preferences and the temporal spatial and (thereby) financial consolidation of future logistics systems Questions of the steering and governance of value cre-ation processes and the organization of distribution also ultimately arise in the


11

context of the ldquolast milerdquo to the consumer and the after-sales area product returns and redistributions and their sustainability potentials or trade-offs

System dynamics method has been used to portray analyze and modify the interplay of supply chain services and consumer preferences and behavior in an interdependent manner Given multi-categorical constellation of dynamically inter-acting system factors the models should consider rather interdependent dynamics than linear relationships Combining these factors into one integrated system view and modeling their dynamics provide information for logistics companies con-sumer organizations civil organizations governmental decision-makers or busi-ness associations as one benefit in order to align their strategies toward future sustainability requirements (Fig 11)

Practical Implementations and Methodologies

The book contributes to generating practical results which are academically socially and business compatible Most of the addressed factors and resulting dynamics are beyond the control of a single organization and require collaborative and multi-stakeholder as well as multifactor inclusive strategies and frameworks Such strategies and frameworks can be classified an ultimate desirable asset of future sustainable economic systems andmdashpracticallymdashas a quality within the scope of related research Thus more exchange and effective as well as stable

Innovative provisioning and delivery options

Financial incentives for sustainable consumption

Participative and collaborative consumption Product Sharing and Leasing Product Swapping Product Lending

Consideration of sustainable logistics processes and

sustainable product usage in development

Design and Production

Utilization phaseDistribution

RecyclingUpcyclingPackaging

Extraction and processing of raw materials

Sustainable logistics

Sustainable lifestyles

Fig 11 Innovation lead and competitive advantage in logistics through new concepts of con-sumer interaction


12

structures to jointly produce and to diffuse innovation among different groups of stakeholders and sectors are needed

This is reached through integrating partners from research society and industry into the process of analyses utilizing various formats such as interviews and inter-active workshops Together with partners from business and society new concepts of logistics services have been developed and tested In the process of concept development ldquobest caserdquo examples have been collected and systematically ana-lyzed in order to identify potentials and to anticipate associated challenges for prac-tical implementation

For this purpose an innovation platform was founded where besides other stake-holder groups more than 50 logistics companies (with an emphasis on the food and fashion sector) were actively involved by providing impulses at the innovation plat-form workshops The aim of the platform was to involve companies in their potential for transformation regarding extensions to the service portfolio or fundamentally changed and new business models or also pilot applications in new supply chain con-figurations For the participating companies there was the opportunity to get scientific support to implement innovative market solutions dealing with increasing sustainabil-ity requirements as well as to test new approaches for interacting with customers (using consumer queries and analyzing them in a scientific manner) and to take the lead in necessary innovation moves As a result the companies can use the opportu-nity to demonstrate alternative sustainable practices in a precompetitive framework

For the cooperation of the project consortium with external participants within the innovation platform instruments such as business model canvas (Osterwalder and Pigneur 2010) and participatory systems mapping (PSM) (Sedlacko et al 2014) have been used to identify correlations in their interaction and dynamics to work collaboratively and to identify approaches for new service models and their effec-tiveness under certain conditions

In addition to jointly developed extended service and business models of logis-tics service providers and their customers communication strategies for specific target or consumer groups have been designed according to the interacting approach The project partners assume that only in this way an impact in the sense of a sustain-ability transformation can be achieved These interdependent innovations are under-stood in the context of joint knowledge production and network development with the participating partners and stakeholders

In order to include the influence of the key player ldquoconsumersrdquo the project explicitly addressed the interface between entrepreneurial service and individual lifestylesconsumer habits By focusing on the awareness of logistics processes including the consequences of logistical services from a sustainability perspective consumersrsquo buying power and their usage behavior are operationalized in the proj-ect Participation in sustainable logistics services through target group-specific awareness raising in line with responsible consumership but also new trends such as the sharing economy enables interplays between consumers and service provid-ers to be examined Above all the logistical and communicative prerequisites for the implementation and routinization of innovative logistics services that actively include consumers have been addressed


13

In a final step the innovations and transformation potentials at the company sup-ply chain andor consumer level have been condensed into scenarios in a further step in foresight processes The changing of important framework conditions plays an essential role in this so that the significance of forward-looking changes in the economy could be clarified and the necessary level for policy recommendations was included

Within the scope of the book and the respective research activities presented several ldquohot spotsrdquo play an important role to exemplify problem and solutions of the interplay between innovative logistics services and sustainable lifestyle options The fashion sector is the ldquoprime examplerdquo of the growing online trade even though traditional stationary retailing is still present in the city centers of western countries In contrast the food sector (especially in Germany) is still characterized by a last mile logistics organization which is largely organized via stationary retailing though currently online sales models are being developed in the food sector as well and offer multifold options for LSP to engage

Structure of the Book

The main idea of the book is to discuss sustainability transition pathways for supply chains as backbone of a future sustainable economy The editors and authors of the book suggest new quantitative and qualitative models for estimating the interacting influences between changing consumer behaviors and supply chain systems

For the systematic presentation of these transformation potentials toward a sus-tainable economy the editorial team is striving to provide a book volume which includes ldquobest caserdquo practices and development strategies for sustainable transformation

In order to achieve the overarching goal of the book firstly trends and develop-ments in consumption patterns strongly challenging and influencing the logistics branch and respective supply chains are identified analyzing the consumer behavior and attitude toward sustainable supply systems

Development of sustainable business models on such a basis is complex since discrete simple short-term systems regarding one specific problem are rapidly replaced by dynamic complex long-term interdisciplinary problems requiring a system thinking approach Since the food sector is becoming an important trendset-ting pathway toward more sustainable production and consumption systems in many western countries a number of articles of the book put a focus here Methods already mentioned above aid to develop strategies and recommendations for the food sector and are presented in the book

In overall strategic decisions in supply chain (SC) design have a long-term effect on sustainability performance of the entire network Many competing objectives coupled with deep uncertainty in most factors involved in the system make it inherently a challenging decision While optimizing several solutions related to the logistics operations has been extensively studied in the literature the most relevant


14

insight for strategic decision-making is not necessarily determining the optimal choice Strategic decisions are more concerned with exploring the plethora of pos-sible futures arising from plausible choices and exogenous factors The book aims to integrate optimization methods commonly used in operations research with sce-nario planning techniques to enhance strategic SC decision-making

The book is structured in five parts

1 Part I Introduction and Overview (includes two chapters) 2 Part II Challenges in the Logistics and SCM Trends in the sector considering

consumer lifestyles (includes four chapters) 3 Part III Transformation Potential toward Sustainable Logistics Development of

new business models on the example of the food sector (includes three chapters)

4 Part IV Scenario and Strategy Development for future sustainable supply chain and logistics services (includes three chapters)

5 Part V Synthesis and Perspectives (includes two chapters)

As part of the introduction (Part I) and after this rationale of the overall idea to integrate research on sustainable logistics and SSCM with those in sustainable con-sumption and lifestyles in Supply Chains and Systems of Sustainability Klaus Krumme compares the SSCM sustainability understanding with the current state of sustainability knowledgetheories by sustainability science outside the SCM and logistics research community Weaknesses within the current SSCM theory are dis-cussed building blocks for advanced conceptions as well as a first metabolism model of sustainable supply systems (SUSY) are given Further development direc-tions for the conceptual transformation of logisticsSCM are articulated as shared options for a green economy research and practice and finally embedded into con-temporary sustainability science

Part II of Challenges in Logistics and SCM addresses the question of how trends and developments in consumption behavior and lifestyles challenge and influence the development of sustainable logistics Rosa Strube and Thomas Wagner aim here to investigate how changes on the consumer side could look to influence or support sustainable logistics structures The chapter is focused on logistics services along the supply chain for the stationary food trade and online trade of fashion products The key trends that affect current logistics and their impact on sustainable lifestyles are identified Based on this trend analysis the most important key points ie the strategies with which logistics can promote sustainable lifestyles have been elaborated

To identify the most relevant trends a literature review on societal technologi-cal and environmental trends was conducted both for stationary grocery stores and for online shopping further carrying out qualitative expert interviews It was dif-ferentiated between societal trends having a strong influence on consumption behavior and technological trends influencing logistics services The analysis dem-onstrated a number of possible approaches for more sustainable logistics services related to consumption behavior like integrating logistics into the ldquocontainerrdquo of sustainability integrating (more) sharing economy elements into services or tak-


15

ing advantage of consumer awareness for promoting sustainable logistic approaches to end users

In order to take advantage of consumer awareness the authors of Chap 2mdashGerrit Stoumlckigt Rosa Strube Sarah Lubjuhn and Matthias Brandmdashhave carried out an assessment of consumer attitudes toward sustainability particularly in food logistics querying 149 consumers and realizing an exploratory factor analysis The results suggest that personality constructs like neuroticism anti-materialism and the ability to wait longer for rewards are associated with a positive attitude toward sustainability in food logistics An implication of this is that future campaigns should stress the immediate positive effect of a sustainable lifestyle so that not only consumers with low delay discounting parameters ie the ability to wait longer for later rewards are interested in sustainability

Since the last mile configuration depends not only on operational logistics but also on consumer awareness and lifestyle sustainable logistics services must be communicated to the end consumer in an efficient way Thus within the frames of this section the authors of Chap 3mdashSarah Lubjuhn Martine Bouman Roel Lutkenhaus and Klaus Krummemdashdesigned adequate communication strategies that make potential innovations such as a fair logistics label for products or a sustainable logistics button for online shopping attractive for consumers For this firstly target group-specific patterns with respect to sustainable logistics process and afterward communication scenarios facilitating the use of sustainable logistic innovations have been identified

Analysis of upstream effects in SCM from shifting consumer habits with respect to sustainability concludes the section An interesting research question in this field is a possible interdependence between sustainable logistics service concepts and upstream progressive volatility in supply chains discussed in logistics literature eg as ldquogreen bullwhip effectrdquo Matthias Klumpp describes here the existing knowl-edge regarding the green bullwhip effect and sustainable logistics concepts in order to proceed to a volatility simulation analysis of specific and relevant green logistics instruments to the whole supply chain By this concept first glances on the possible quantitative effects in supply chains are possible

Part III is devoted to Transformation Potential Toward Sustainable Logistics Development of new Business Models on the Example of the Food Sector Social and strategic initiatives concerned with the decentralized production of food and its local distribution are analyzed by Tim Gruchmann Madeleine Boumlhm Klaus Krumme Simon Funke Simon Hauser and Ani Melkonyan The authors use busi-ness models in order to identify logisticsSCM potentials to facilitate sustainable food production and consumption systems Addressing the strong focus on sustain-able practices in the last mile the chapter is focused on identification of key success factors (drivers) and barriers which serve for transferability and scaling of regional business models This is done based on a comparison analysis of four sustainable business models Driving factors can be technological ecological and sectorial developments strategic innovations and information and knowledge change of a company whereas the constraining factors or barriers might be a less supportive organizational culture employee resistance and the time span from idea generation


16

toward implementation After a generalization of the drivers and constraints from the four best case practices their integration into the properties of innovative sus-tainable business models follows This serves to the establishment of a sustainable business strategy for companies where sustainable value creation must be in the core along with sustainability governance and finance This process brings the companies toward setting the sustainable finance strategies as well as to the value chain advantages on sustainability initiatives After summarizing the results the final step is then to set the action plan and implement it

Development and successful implementation of business models require a sys-tem thinking approach from all the relevant stakeholders Using the drivers and barriers for sustainable business models Gustavo de la Torre Tim Gruchmann Vasanth Kamath Ani Melkonyan and Klaus Krumme applied participatory system mapping to discuss these elements their causal interrelations and their future pos-sible changes For this the key points (Chap 8) were discussed with the project partners and the experts regarding the sustainability effects of these points It was clarified that the focus must be precisely aligned with the respective company and the business strategy derived from it Therefore it was important to develop the basic understanding model with the parameters that have to be evaluated These parameters serve as the basis for the scenario development and serve for the sustain-ability assessment The model was designed during the innovation platform with the logistics companies using the methodology of ldquocausal loop diagramsrdquo for short This provides an overview of the relevant variables as well as their causal interde-pendencies through systemic thinking and modeling This analysis is presented firstly as a causal loop diagram (CLD) being extended toward a stock and flow diagram which is an equation-based system dynamics (SD) modeling technique

However the establishment of closed loops is elusive due to complex structures in parts of acquisition production distribution and consumption of food supply in private and public sectors The example of an innovative logistics system address-ing food waste as a network to share food in order to preserve it from being thrown away is ldquofoodsharingrdquo Being an alternative to the disposal of food ldquofoodsharingrdquo closes the supply chain by its self-organized innovative logistics of further food processing and can be called a sustainable social practice according to the authors of Chap 9mdashRomy Koumllmel and Carolin Baedeker The authors examined the diffu-sion of ldquofoodsharingrdquo in Germany for the first time Insights of connections between local ldquofoodsharingrdquo distribution and characteristics of locations are reviewed toward trends Being a privately organized logistic innovation the diffusion of ldquofoodshar-ingrdquo shows spatial barriers between rural and urban areas which can be interpreted as varied requirements of local supply chains Comprehension of this phenomenon contains potential to foster sustainable innovations and support their diffusion

If Part III discussed the innovation potential of the business models within logis-tics sector Part IV addresses decision-making process for future sustainable supply chain and logistics services To support strategic decision-making process future scenarios for sustainable and innovative food supply chains have been developed and analyzed in Chap 10 For this Ani Melkonyan Tim Gruchmann Adrian Huerta and Klaus Krumme consider the trends and key factors influencing food systems


17

such as climate change impacts adjustments in operational action fields proactive countermeasures as well as policy improvements While creating possible scenar-ios for food systems the authors focus on the resilience of the food supply chains meanwhile allocating the resources efficiently and meeting population demands as well as considering dynamics in consumer behavior Due to the high dependency of political regulations and strategies to the economic growth and prosperity the implementation of a local sustainable food supply chain can be very difficult to be taken into action To initiate this transformation process first of all awareness for environmental and social responsibility should be raised within the society for con-sumers and farmers as well as companies involved in the sector Specifically the application of future scenarios is a valuable asset to identify challenges according to the present supply chain practices and strategies which are discussed in the next chapter

In Chap 11 Fuyin Wei Cyril Alias and Bernd Noche highlight the fact that besides the hardware-oriented mega-trends like robotics the software-based digital technologies also create fundamental change in processes operations functions and even entire business models The authors address the research gap between theory and practice of digitization within the transportation and logistics sector suggesting new methodology for a structured evaluation of the digital transforma-tion The evaluation approach considers different levels of planning based on sus-tainability dimensions Meanwhile the chapter is focused on the respective requirements and the influences to be gained by digitization processes With such a structured evaluation approach a tool is provided to the researchers and decision- makers from practice in order to consider the extensive effects of digital transformation

Scenario development and its evaluation are crucially important for strategic decision-making in supply chain (SC) design with long-term effects on sustainabil-ity performance of the network and operationsrsquo costs Many competing objectives coupled with deep uncertainty in most factors involved particularly in facility loca-tion problem make it inherently a challenging decision To support the decision- making a network analysis model has been developed Apart from facility location routing problem is also explicitly incorporated into the model because of its impor-tance in sustainability performance and fuel consumption Tim Gruchmann Jan Eiten and Ani Melkonyan apply this proposed method to a real-world case study of a small-scale fresh food distribution company in Austria to assess the implementa-tion of decentralized network of pickup stations

Finally the book is concluded with Part V Synthesis and Perspectives This sec-tion presents a surrogate of policy recommendations suggested by Nomo Braun to shape the manifold aspects and influence spheres of regulatory frameworks against the background of the research findings presented in this book

Under research and innovation perspectives for integrated supply chains in the sustainable economy Klaus Krumme and Ani Melkonyan summarize conclusions of all chapters and correlate them into work hypothesis and a wider scientific and transdisciplinary context The concept of the ldquolead sustainability service providerrdquo (6PL) is outlined for future scientific work transdisciplinary projects and finally as an enabling business model toward a sustainable socioeconomic system


18

References

Alcott B (2008) The sufficiency strategy Would rich-world frugality lower environmental impact Ecological Economics 64(4) 770ndash786

Ashnani M H M Miremadi T Johari A amp Danekar A (2015) Environmental impact of alternative fuels and vehicle technologies A life cycle assessment perspective Procedia Environmental Sciences 30 205ndash210

Backhaus J Breukers S Paukovic M Mourik R amp Mont O (2012) Sustainable lifestyles Todayrsquos facts and tomorrowrsquos trends(D1 1 Sustainable lifestyles baseline report)

Barnosky A D Hadly E A Bascompte J Berlow E L Brown J H Fortelius M et al (2012) Approaching a state shift in earthrsquos biosphere Nature 486(June 2012) 52ndash58 httpwwwnaturecomnaturejournalv486n7401fullnature11018html

Barr S amp Gilg A (2006) Sustainable lifestyles Framing environmental action in and around the home Geoforum 37(6) 906ndash920

Botsman R amp Rogers R (2011) Whatrsquos mine is yours How collaborative consumption is changing the way we live (2 Auflage ed) London Collins

Carter C R amp Liane Easton P (2011) Sustainable supply chain management Evolution and future directions International Journal of Physical Distribution amp Logistics Management 41(1) 46ndash62

Carter C R amp Rogers D S (2008) A framework of sustainable supply chain management Moving toward new theory International Journal of Physical Distribution amp Logistics Management 38(5) 360ndash387

Chopra S amp Meindl P (2007) Supply chain management Strategy planning amp operation In Das summa summarum des Management (pp 265ndash275) Wiesbaden Gabler

Crane A (2005) Meeting the ethical gaze Challenges for orienting to the ethical market In R Harrison T Newholm amp D Shaw (Eds) The ethical consumer (pp 219ndash232) London Sage

Dahmus J B (2014) Can efficiency improvements reduce resource consumption A historical analysis of ten activities Journal of Industrial Ecology 18(6) 883ndash897

Dekker R Bloemhof-Ruwaard J amp Mallidis I (2012) Operations research for green logisticsmdashAn overview of aspects issues contributions and challenges European Journal of Operational Research 219(3) 671ndash679

DESTATIS ndash Statistical service of Germany (2018) Retrieved from httpswwwdestatisdeDEPublikationenThematischTransportVerkehrQuerschnittVerkehrAktuellhtml

Devinney T M Auger P amp Eckhardt G M (2010) The myth of the ethical consumer hardback with DVD Cambridge Cambridge University Press

Ekins P (1993) Making development sustainable In Global ecology A new arena of political conflict (pp 91ndash103) London Fernwood

Faszlige A Grote U amp Winter E (2009) Value chain analysis methodologies in the context of environment and trade research (No 429) Discussion papers School of Economics and Management of the Hanover Leibniz University

Gansky L (2010) The mesh Why the future of business is sharing London PenguinGilg A Barr S amp Ford N (2005) Green consumption or sustainable lifestyles Identifying the

sustainable consumer Futures 37(6) 481ndash504Giljum S Dittrich M Lieber M amp Lutter S (2014) Global patterns of material flows and their

socio-economic and environmental implications A MFA study on all countries world-wide from 1980 to 2009 Resources 3 319ndash339

Hansen U amp Schrader U (2001) Nachhaltiger Konsum ndash Leerformel oder Leitprinzip In Nachhaltiger Konsum Forschung und Praxis im Dialog (pp 17ndash45) Frankfurt Campus Verlag

Hicks C (2013) Sustainable and healthy lifestyles towards 2050 lessons learned from SPREAD 2050 Cheryl Hicks The European Journal of Public Health 23(suppl 1) ckt126-223


19

Hoekstra A Y amp Wiedmann T O (2014) Humanityrsquos unsustainable environmental footprint Science 344 1114

Hradil S (2005) Soziale Ungleichheit in Deutschland (8 Auflage ed) Wiesbaden VS Verlag fuumlr Sozialwissenschaften

Jackson T (2005) Live better by consuming less Is there a ldquodouble dividendrdquo in sustainable consumption Journal of Industrial Ecology 9(1ndash2) 19ndash36

Juumlttner U Christopher M amp Baker S (2007) Demand chain management-integrating market-ing and supply chain management Industrial Marketing Management 36(3) 377ndash392

Kouvelis P Chambers C amp Wang H (2006) Supply chain management research and pro-duction and operations management Review trends and opportunities Production and Operations Management 15(3) 449ndash469

Krumme K Schmidt I Meyer N amp Pratt N (2015) Innovative logistics for sustainable lifestyles Concept paper for the research project ldquoILoNardquo DuEPublico Online Publishing University of Duisburg-Essen Retrieved from duepublicouni-duisburg-essende

Lambrecht M Erdmenger C Boumllke M Brenk V Frey K Jahn H et al (2009) Strategie fuumlr einen nachhaltigen Guumlterverkehr Texte Nr 182009 Berlin Umweltbundesamt

Liu Z Anderson T D amp Cruz J M (2012) Consumer environmental awareness and competi-tion in two-stage supply chains European Journal of Operational Research 218(3) 602ndash613

Lorek S amp Spangenberg J H (2014) Sustainable consumption within a sustainable economyndashbeyond green growth and green economies Journal of Cleaner Production 63 33ndash44

Marchand A amp Walker S (2008) Product development and responsible consumption Designing alternatives for sustainable lifestyles Journal of Cleaner Production 16(11) 1163ndash1169

Mckinnon A Cullinane S Browne M amp Whiteing A (2015) Green logistics Improving the envi-ronmental sustainability of logistics London Kogan Page Limited ISBN 978-0-7494-5678-8

Mont O (2007) Concept paper for the international task force on sustainable lifestyles In Third international expert meeting on sustainable consumption and production (pp 26ndash29) Stockholm

Mont O Neuvonen A amp Laumlhteenoja S (2014) Sustainable lifestyles 2050 Stakeholder visions emerging practices and future research Journal of Cleaner Production 63 24ndash32

Murphy P R amp Poist R F (2000) Third-party logistics Some user versus provider perspectives Journal of Business Logistics 21(1) 121ndash133

Osterwalder A amp Pigneur Y (2010) Business model generation A handbook for visionaries game changers and challengers Hoboken Wiley

Payne S and Dutzik T (2009) The High Cost of Fossil Fuels Why America Cant Afford to Depend on Dirty Energy Frontier Group Emily Figdor Environment America Research amp Policy Center httpcdnpublicinterestnetworkorgassets5AEyj6aT4Fssg0TwPGnr4wThe-High-Cost-of-Fossil-Fuelspdf

Reimers V (2013) Convenience for the car-borne shopper Are malls and shopping strips driving customers away Transportation Research Part A Policy and Practice 49 35ndash47

Rifkin J (2014) The zero marginal cost society The internet of things the collaborative com-mons and the eclipse of capitalism New York St Martinrsquos Press

Rockstroumlm J amp Klum M (2015) Big world ndash Small planet abundance within planetary bound-aries New Haven Yale University Press

Rockstroumlm J Steffen W Noone K Persson Aring Chapin III F S Lambin E F et al (2009) A safe operating space for humanity Nature 461 472ndash475 httpwwwnaturecomnaturejour-nalv461n7263full461472ahtml

Schrader U amp Thoslashgersen J (2011) Putting sustainable consumption into practice Journal of Consumer Policy 34(1) 3ndash8

Sedlacko M Martinuzzi A Roslashpke I Videira N amp Antunes P (2014) Participatory systems mapping for sustainable consumption Discussion of a method promoting systemic insights Ecological Economics 106 33ndash43

Seuring S amp Muumlller M (2008) From a literature review to a conceptual framework for sustain-able supply chain management Journal of Cleaner Production 16(15) 1699ndash1710


20

Seyfang G (2009) The new economics of sustainable consumption Mineriacutea transnacional nar-rativas del desarrollo y resistencias sociales Buenos Aires Biblos

Shen B (2014) Sustainable fashion supply chain Lessons from HampM Sustainability 6(9) 6236ndash6249

Simchi-Levi D Kaminsky P amp Simchi-Levi E (2008) Designing and managing the supply chain Concepts strategies and case studies (3rd ed) Boston McGraw HillIrwin

Smith N C (2008) Consumers as drivers of corporate social responsibility In A Crane A McWilliams D Matten J Moon amp D S Siegel (Eds) The oxford handbook of corporate social responsibility (pp 281ndash302) Oxford Oxford University Press

Spaargaren G (2003) Sustainable consumption A theoretical and environmental policy perspec-tive Society amp Natural Resources 16(8) 687ndash701

Steffen W Richardson K Rockstroumlm J et al (2015) Planetary boundaries Guiding human development on a changing planet Science 347(6223) 1259855

Thoslashgersen J (2005) How may consumer policy empower consumers for sustainable lifestyles Journal of Consumer Policy 28(2) 143ndash177

Thoslashgersen J Haugaard P amp Olesen A (2010) Consumer responses to ecolabels European Journal of Marketing 44(1112) 1787ndash1810

Turban E Outland J King D Lee J K Liang T P amp Turban D C (2017) Electronic com-merce 2018 A managerial and social networks perspective Cham Springer

van Acker V Goodwin P amp Witlox F (2013) Key research themes on travel behaviour lifestyle and sustainable urban mobility International Journal of Sustainable Transportation 10(1) 25ndash32

Vermeir I amp Verbeke W (2006) Sustainable food consumption Exploring the consumer ldquoatti-tudendashbehavioral intentionrdquo gap Journal of Agricultural and Environmental Ethics 19(2) 169ndash194

Wiedmann T O Schandl H Lenzen M Moran D Suh S West J et al (2013) The material footprint of nations Proceedings of the National Academy of Sciences 112(20) 6271ndash6276

Zelewski S amp Muumlnchow-Kuumlster A (2012) Logistiktrends in der Dekade 2010ndash2020 ndash eine Delphi-Studie Berlin Logos Verlag



Chapter 2Supply Chains and Systems of Sustainability An Attempt to Close the Gap

Klaus Krumme

Abstract The chapter presents conceptual theory building based on an extensive literature review of contemporary knowledge stocks both of the previous answers of supply chain management (SCM) and logistics regarding the sustainability chal-lenge as well as of sustainability science on sustainable systems conceptualization Grounded in the identified conceptual and knowledge gaps the work describes building blocks for redesigns of sustainable supply chain management (SSCM)

Finally an expanded definition of SSCM as well as a metabolism model of sus-tainable supply systems (SUSY) is proposed

The valorization of ldquostrong sustainabilityrdquo rooted in nested systems organiza-tion has particular importance by integrating the assets of critical capital shared responsibility and distributive equity into sustainable supply chain understanding A contextualization of sustainable supply chain (management) concepts for a green economy is based on the synopsis of natural critical capital eco-industrial produc-tion sustainable supply as well as consumptionproduct use systems with an emphasis on urban-industrial source-sink relationships

Keywords Sustainable supply chain management middot Sustainable logistics middot Strong sustainability middot Resilience middot Nested systems organization theory middot Sustainable supply systems middot Metabolism model

Background

The relationship between the challenges of sustainable development and the glob-ally fast growing logistics industry is still in need of clarification In fact central aspects of the relationship between the requirements of sustainable development and logistics supply chain management (SCM) correspond to a vice versa

K Krumme () Centre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germanye-mail klauskrummeuni-duede

22

combination From a supply chain perspective it is essential to note that in a drasti-cally changing world the quality of destructive dynamics (eg by the impacts of climate change) is altered toward more substantial threats and accordingly the risks for supply chains increase On the other hand much recognizable potential of sup-ply chain and logistics service innovation for an overall sustainable ldquogreenrdquo socio-economic system and the needed transition pathways is yet not realized

The ecological effect of logistical activities for example in terms of growing transport services and the related increase in energy consumption and pollutant emissions makes a viscous cycle behind this diagnosis obvious Thus all efficiency gains of logistics (in terms of financial energy or personnel resources) optimized with a focus on the individual processes planned managed and controlled do not provide corresponding efficiency gains of the entire system in terms of sustainabil-ity On the contrary logistics as an enabling instance of high-performance produc-tion and consumption systems (and consistently increasing resource consumption) is an impressive example for a meta rebound effect (Krumme et al 2015) This rebound effect means that the primary savings are overcompensated by secondary effects resulting in increased overall consumption (Weizsaumlcker 2009)

Within the last decades logistics has shifted from solely providing the classical triple of transport warehousing and transshipment services to more or less compre-hensive planning executing and controlling of value-added services in complex production distribution and closed-loop operations within and between networked companies and as backbone of the network economy at all Drivers have mainly been a continuous SCM orientation as well as increasingly integrated information and communication technology (ICT) based services into the supply chains (Christopher 2016 Hugos 2018) As far as some economic entitiesmdasheg single companies or entire value chainsmdashare confronted with a growing pressure to trans-form structures and processes as well as their very self-concepts against the back-ground of sustainable development logistics and the supply chains will undergo further severe changes as well as its corresponding businesses

It is noteworthy that with respect to the modes and networks of the globalized economic system and its production and consumption patterns root causes of unsustainability are centrally fixed within the mechanisms and organizations of sup-ply chain structures and their operations in logistics (Krumme 2012) Assuming that the question arises on how far logistics and supply chains will have to trans-form andmdasheven more importantmdashwhat logistics can contribute to a sustainable economy and how supply chains of this economy would be designed Are there conceptual frameworks of a sustainable economy in which qualified logistics ser-vices and supply chains are included Would logistics be still the ldquobackbonerdquo of such future sustainable systems

Specifications for logistics and supply chains in particular are required for the transformation of economic systems in the context of a sustainable development in general The sides of a tension field between consistent corporate responses and the challenge of transforming economic framework conditions and policies are directly linked to the sector of logistics Terms such as ldquogreenhouse gas emissions and cli-mate changerdquo and ldquoenergy prices and transport costsrdquo are just two obvious pairs that influence changed conditions for logistics service providers (LSP) and the resulting

K Krumme

23

decisions in the supply chain Beyond that much more configurations of overall system sustainability must be seen as coordinates within a common frame of refer-ence This until now just anticipated framework describes restrictions on logistics in the short medium and long term yet providing interesting opportunities for new developments

The transformation goals the way to achieve these goals and good understand-ing of the mode of transformation as well as the selection of elements to be trans-formed depend foremost on an entire system perspective (outside in) rather than on focusing on contemporary subsystems of logistics and supply chains (inside out) It is also fundamentally determined by a deep understanding of what sustainability is the demands formulated by the sustainability challenge on transformation of the economy and the way of implementation of sustainability dynamics attached to businesses such as logistics

Very basically sustainability ldquoensures the continuity and prosperity of economic social and environmental spheres of the global systemrdquo (Folke et al 2002) Apart from this macroscopic goal level definitions of sustainability and their applicability differ Moreover in their current form they are not useful to guide logistics on this course without further elucidation

For this a strong scientific basis of the conceptions is essential Though the expansions of the conceptual works in sustainable supply chain management (SSCM) are important milestones they are still not capable to explore the deep transformation from the perspective of a future ldquogreenrdquo economy A more compre-hensive view and contextualization of supply chains with the theoretical achieve-ments and resulting practical relevancies of sustainability science can support further progress

In the following state of the art with respect to sustainable logistics and SSCM as well as sustainability conceptions within sustainability science is evaluated Resulting weaknesses in the logistics business as well as on the SSCM conceptions in scientific literature are formulated To close the gap between transformational concepts in sustainable logistics and SCM related concepts from the sustainability science spectrum are linked to a basic outline of a proposed model Finally neces-sary refinements needed research and overall required innovation activities to enrich this groundwork are anticipated

State of Knowledge Supply Chains and Systems of Sustainability

Logistics Supply Chains and Supply Chain Management

Modern logistics and SCM deal in an integrated way with the planning manage-ment and controlling of goods information and energy personnel and material flows of the globalized economic and social system Definitions especially of sepa-rating SCM and logistics can appear blurred In fact there are corresponding

2 Supply Chains and Systems of Sustainability An Attempt to Close the Gap

24

meanings behind the two concepts Even though a symbiotic relationship exists between them each represents distinctly different tasks and responsibilities For the following discussions logistics is seen as a (service) task within the umbrella of wider and more expanded activities of SCM Since wider connotations are impor-tant from the sustainability perspective the following discourse ideally is referring to supply chains and SCM also including logistics

SCM represents a well-established area of knowledge highly accepted in research and practice (Simchi-Levi et al 1999 Chopra and Meindl 2007 Christopher 2016) The central concept of the ldquosupply chainrdquo describes complex structures and processes of contracting companiescustomers as a network of suppliers manufac-turing plants retailers and supporting companies involved in various design pro-curement storing shipping selling or servicing processes (Sheffi and Rice 2005) SCM is the integration of business processes across the supply chain and has grown in importance since the early 1990s although the approach was already introduced in the early 1980s (see Oliver and Webber 1982) SCM evolved through several stages of increasing intra- and interorganizational integration coordination and cooperation activities of design planning execution control and monitoring along supply chain structures and flows with the objective to effectively synchronize demand and supply (Cooper et al 1997) Contemporary SCM can be defined as the management of upstream and downstream relationships with suppliers and custom-ers in order to create enhanced value in the final market place at less cost to the supply chain as a whole (Christopher 2016) According to Simchi-Levi et al (2008) SCM ultimately aims at the production and distribution of the merchandise in the right quantity to the right locations and at the right time in order to minimize system-wide costs while satisfying modern service-level requirements Integration of aforementioned factors is an important step toward greater efficiency Nevertheless sustainability concerns are not taken into consideration in classical SCM In this way defined supply chains basically consist of a physical part ie infrastructures production facilities distribution facilities etc and integrated man-agement services and information finance and energy flows (Fig 21)

In a more open definition SCM includes the acquisition of all needed services from the point of origin (sourcing and manufacturing) to the point of consumption and as far as possible back loops toward a (secondary) resource base and (re-) pro-duction facility (closed-loop supply chain management CLSCM) All components from the source through all processing steps distribution and trade to the consumer (as a sink) are thus in a system and value creation context This definition can be seen as first attempt toward integrating the sustainability context into SCM since the connection with operations within a circular economy is given and the system view is emphasized

Sustainable Supply Chain Management

Sustainable SCM (SSCM) has emerged in the first decade of the new millennium and puts the supply chain into a wider corresponding strategic frame in association with the three dimensions of sustainability ecology economy and society

K Krumme

25

(see Linton et al 2007 Carter and Rogers 2008 Seuring and Muumlller 2008 Lieb and Lieb 2010 Crum et al 2011 Brandenburg and Rebs 2015)

The SSCM expansion provided various conceptual achievements modeling strategies and most importantly a more comprehensive SCM paradigm against the backdrop of sustainability The aim is to qualify supply chain-based businesses for the sustainability challenge in the twenty-first century and support the needed trans-formation into a green economy Concerning the ongoing scientific debate on the integration of sustainability-oriented impulses into SCM and logistics Crum et al (2011) have published a comprehensive study on the conceptual integration of sus-tainability references in logistics and SCM Moreover they identified trends poten-tial consensus in findings across studies and also gaps in order to guide future research and to improve managing sustainable supply chain initiatives The authors showed two main lines of influence which however are characterized by very dis-parate temporal appearance and different public visibility an area of greening eco-nomic performances eg regarding the reduction of pollutants or the consumption of nonrenewable natural resources since as early as the 1980s and then only in the late 1990s taking up the social dimension of sustainability with corporate social responsibility strategies (CSR)

Carter and Rogers (2008) provided an integrative framework of the convergence of sustainability perspectives based on conceptual theory-building methods considering the triple bottom line (Elkington 1997) They see SSCM as a strategic transparent integration and achievement of equally social environmental and eco-nomic enterprise goals in the systematic coordination of key business processes to improve long-term business performance of single enterprises and the supply chain They also developed research propositions based on resource dependence theory transaction cost economics population ecology and the resource-based view of a firm Some other studies integrate the sustainability triple bottom line of ldquopeoplerdquo

Fig 21 Structural elements operational networks and flows of a supply chain including infor-mation energy and finance


26

(social) ldquoplanetrdquo (ecological) and ldquoprofitrdquo (economic) into central decision-mak-ing models of SSCM such as the aggregate planning model (Tuumlrkay et al 2016)

Linton et al (2007) make clear that SSCM must explicitly include by-products of the supply chain and consider the entire life cycle of products Seuring and Muumlller (2008) describe SSCM as the management of material and information flows as well as the cooperation between companies along the supply chain taking into account goals from all three dimensions of sustainability These are derived from the demands of stakeholder groups and identified three distinctive features of SSCM

bull SSCM takes into account a wider range of issues and therefore refers to extended system boundaries of the supply chain

bull SSCM deals with a more comprehensive set of performance objectives thereby taking into account the environmental and social dimension of sustainability beside the economic performances

bull SSCM necessitates a much increased amount for cooperation among partnering companies

Sustainable Systems

In order to design resilient and sustainable systems Fiksel (2003 2015) points out that although many companies have adopted sustainability goals the actual devel-opment of sustainable systems remains challenging

Generally and concerning ultimate goals sustainable development is about bas-ing progress on a ldquosafe operating spacerdquo for humanity respecting the ldquoplanetary boundariesrdquo (Folke and Rockstroumlm 2009 Rockstroumlm et al 2009 Rockstrom and Klum 2015 Steffen et al 2015) Sustainability science has emerged as a systems science since the 1980s as a pulsating field of research and developed until now a core research agenda as well as an increasing flow of results published in some of the leading journals of the academic world (see Kates et al 2001 Clark and Dickson 2003 Komiyama and Takeuchi 2006 Clark 2007 Kajikawa 2008 Lang et al 2012 Kajikawa et al 2014)

Sustainability science as described by the website of the Proceedings of the National Academy of Science of the United States (PNAS) is ldquohellipan emerging field of research dealing with the interactions between natural and social systems and with how those interactions affect the challenge of sustainabilityhelliprdquo (Kates 2011) Research tasks have been evolved through a constructive interplay between a descriptive-analytical and a transformational mode The first is concerned with ana-lyzing problems in complex and dynamic human-environment systems whereas the second conducts research on solutions to those problems (Wiek et al 2012) State- of- the-art sustainability knowledge as the knowledge to achieve sustainable systems has emerged through active discourse in a growing community of sustainability sci-

K Krumme

27

entists which has led to sustainability science matured as cross-sectoral and trans-disciplinary ldquopost-normalrdquo research (Funtowicz and Ravetz 1995 Funtowicz and Ravetz 2003 Ravetz 2006) in contrast to the rather increasingly fragmented ldquomain-streamrdquo academia (Sterman 2012)

The conceptual theory of sustainability itself and its practice orientation have been widely discussed producing far more sophisticated concepts than the policy- related Brundtland definition or the business-inclined triple bottom line up to scien-tific discourses about constitutional frameworks and theories (Ayres et al 2001 Ekins et al 2003 Neumayer 2003 Dietz and Neumayer 2007) It is important to understand that the two popular definitions of Elkington and Brundtland use social economical and ecological spheres just as reductionist categories and at last super-ficial perceptions of a much more complex reality Today advanced conceptualiza-tions (Kay et al 1999 Ravetz 2006 Kajikawa 2008 Xu et al 2014 Liu et al 2015 Steffen et al 2015 Krumme 2016) are available yet not often applied outside the expert communities Principally the findings of sustainability science bear impor-tant momentum for concrete developments strategies or investments being taken in socioeconomic systems

Based on the achieved results of system sciences (Mesarovic et al 1970 Findeisen et al 1980) Costanza and Patten (1995) argued fairly early that a nested hierarchy organization of systems must be considered over the ranges of space and time to avoid failures costs and further risks Later research findings of system resilience (Folke 2006) and social-ecological systems (SES) (Ostrom 2009) had a big influence on the analysis as well as for the alternative planning and implementa-tion of solutions and finally how to achieve sustainable systems but mostly outside the business sector Accordingly sustainability science bases errors or success of systems related to the understanding of nested system hierarchies and system resil-ience (Hahn et al 2008 Folke et al 2010 Steffen et al 2015) This progress in sustainability science has built comprehensive frames upon social ecological eco-nomic or technological agents of systems and their levels of organization State-of- the-art knowledge also points out several but widespread misunderstandings briefly summarized below

Critique on the Efficiency Paradigm

It is understood that sustainable development cannot solely be based on higher effi-ciency in resource consumption but also on a progress in dematerialization shifts in product and resource life cycles as well as sufficiency-based transitions in societal lifestyles Simply lean resource systems may be inefficient due to increased instabil-ity and vulnerability and lower long-term persistence in their economic performance and thus bring new risks and additional costs (Korhonen and Seager 2008 Fiksel 2015 Korhonen and Snaumlkin 2015)


28

The Myth of Sustainability and Substitution of Natural Capital Through Technological Innovation

Many authors of sustainability science deny the possibility of a simple decoupling of resource consumption and economic productivity as well as a possible substitu-tion of the assets of the natural capital by technological (human-made) capital They argue for a comprehensive but differentiated view on a variety of capitals forming a sustainable nested systems organization and under limitation of ultimate criti-cal qualities of natural capital stocks and flows to be preserved (Daly 2005 Fiksel 2006 Beddoe et al 2009 Jackson and Senker 2011 Costanza et al 2016)

Bottom-Up and System-Based Forces for Sustainable Development

Beddoe et al (2009) argue that sustainability transition occurs through an evolution-ary process that people can direct and control and seed the iterative redesign of the current socio-ecological regime to achieve sustainability Finally it is clear that the socioeconomic agents of a system have to participate as stakeholders in the change of the system itself All efforts for sustainable development must reach a consensus on the desired characteristics which are ideally consistent with the relationships between socio-ecological subsystems in the hierarchy (Costanza and Patten 1995) These efforts should be based on participatory approaches (Kasemir 2003 Lafferty 2006 Ghai and Vivian 2014) adaptive management (Gunderson 2001 Tompkins and Adger 2004 Norton 2005 Walker et al 2006) and modes of collaboration as well as joint knowledge production (Hegger et al 2012 Lang et al 2012) in a non- technocratic but comprehensive transition process (Elzen et al 2004 Kemp et al 2007)

Weaknesses in SSCM Theory and Business Practices

Taking into account briefly summarized achievements of sustainability science above in terms of knowledge about desirably sustainable systems and by comparing them to the status of conceptualizations of SSCM and sustainable logistics the efforts appear centrally restricted They still relay to a modification of the well- known and already existing SCM system boundaries and strategies by mostly relat-ing already given structures and operations to ldquoexternalrdquo social or ecological factors A full system view on the coordinates and organization of alternative fundamental system redesigns are rather not taken into account Such a view would have to expand beyond the supply chain and would have to downscale from the claims of alternative economies to supply chains as a subsystem

In the following paragraphs weaknesses of contemporary SSCM are further dif-ferentiated into conceptual and content-strategic weaknesses The articulated aspects are both relevant to theory building and business practices in SSCM and logistics

K Krumme

29

Conceptual Weaknesses

Insufficient References in the Understanding of Sustainability

Scientific literature as well as business practice related to sustainability in logistics and SCM mainly consider theoretical concepts and definitions which are not cor-responding to the actual state of research and thus reveal a rather inadequate under-standing of the terms of sustainability The prevailing views are mainly shaped by ldquoweak sustainabilityrdquo models such as the internationally most influental con-cept archetype of the ldquotriple bottom linerdquo by Elkington (1997 2004) The progress in SSCM can be taken as a direct response to the popular discourses of sustainable development in the 1990s that still dominate the common understanding of sustain-ability needs until today This discussion is still mainly characterized by the inter-related Brundtland definition (WCED 1987) ldquoSustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needsrdquo1 The popular division of sustain-ability into the pillars of ecology economy and social affairs -as also formulated by Elkington- is originally based on the Brundtland definition as it can be found in the Agenda 21 as one of the major outcomes of the Rio Earth Summit in 1992 (Kates et al 2005) The rather broad approach does provide little concrete guidance to companies and other organizations on how to operationalize sustainability as part of their activities A reason for inconsistencies and shortcomings between logistics practice and the challenge field of sustainability lies actually in this perception of sustainability Brundtland as well as Elkington leave space for arbitrary addressable approaches that in the end exist side by side This often results in a very general quickly consensable but unconscious understanding of sustainability (Atkinson et al 1997)

Models of weak sustainability assume the equivalence of the three classical dimensions (social ecological economic) and try to integrate aspects of these three sectors at action levels without considering functional-hierarchical statements (Atkinson et al 1997)

Thus on this basis in business practise further developments have emerged Strategies and frameworks such as corporate social responsibility (CSR) (Matten and Moon 2008) or corporate citizenship (CC) (Matten and Crane 2005) have gained importance for the implementation of sustainability related strategies in companies Principally they have initially been focussing on the social pillar However afterward more holistic reaction by companies in relation to the main discourses of sustainability have been established over the years which in turn also

1 In simple terms the Brundtland definition contains two key concepts The above intergenerational justice deals with a proactive and foresighted attitude with respect to the ecological and social conditions as a long-term and cross-generational task Beside intragenerational justice puts the fair distribution of resources risks and opportunities among differently privileged groups of the society or regions in the world (ldquoNorth-Southrdquo) in the foreground of decision-making


30

addresses the other aspects of sustainability (ecology economy) but again guided by the triple bottom line rationale (Jonker et al 2011)

The fact that all known sustainability initiatives launched in logistics business and SSCM contexts are based on models of weak sustainability reveals a problem-atic conceptual fundament for further applications in planning and management Central points of criticism arise particularly regarding the implementation in the corporate or value and supply chain contexts and are outlined in the following paragraphs

Poor Illustration of Complex Reality in Business Decision-Making Structures

The demand for sustainability makes entrepreneurial activity more complex The question is whether the chosen conceptual approach meets this complexity claim or whether a nontrivial discrepancy arises between the claim the conceptual disposi-tion and the arising potential for implementation As in every weak sustainability model the triple bottom line model offers only insufficient possibilities for the rep-resentation of interconnectedness between the sustainability pillars In the business reality the effects of entrepreneurial action are not clearly categorizable on the sin-gularity of sustainability pillars but represent de facto networked consequences for all three dimensions of sustainability regardless of whether the action was purely economically emphasized or if the other aspects were also included The reason lays in emerging system dynamics due to complex interconnections and interdependen-cies Koumlyluumloglu and Krumme (2015) could show that during experimental concrete extraction of decision criteria for logistics business practise within the three pillars a mono-dimensional assignment of the criteria is not possible For example a ldquofleet route and capacity optimizationrdquo directed to eco-efficiency in the ecological pillar of sustainability can easily be assigned to economic relations ldquoCooperative trans-port modelsrdquo or ldquocorporate innovation managementrdquo which is classically assigned to the economic sector in the most implementation guides has significant potentials simultaneously within the ecological and the social pillars (eg in the sense of innovations in human resource management) Investments in the field of ldquoemployee trainingrdquo (social pillar) promote dynamic feedbacks and can in principle contribute to employee motivation This also has indirect economic advantages (especially in times of crisis) or it can reduce energy and resource consumption under the focus of environmentally friendly behavioral changes in corporate operations

Generating Multi-Criteria Goal Conflicts

Functional links between the reductionist dimensions of sustainability are often not synergistic but appear rather conflicting in everyday business This may be the case for example when pricing or legal framework conditions do not reflect eco-friendly behavior (eg in the sense of investing in new technologies) to the same extent as business profitability and thus increase the entrepreneurial risks On such a basis

K Krumme

31

sustainability is difficult to implement because actions on one single dimension generate multidimensional effects In general conflicts can arise among the three pillars of sustainability Complementarities between the goals and values added can be another issue Due to the postulated equal treatment and equivalence of the sus-tainability dimensions in the weak sustainability models emerging multi-criteria conflicting goals are unavoidable and often misleading for a sustainable corporate development

Exclusion of Possible Synergies and Long-Term Entrepreneurial Benefits

In a business context it is crucial to identify synergies between factors or drivers within the networked organization of sustainability where they exist and to assess the value of business decisions for stability in a long term In this respect ecological and social motives can certainly support the success of a company Moreover beyond short-term effects they can make economic action more successful consid-ering corporate or supply chain risk management

Lacks in Sustainability Transformation Strategies

Part of sustainability science is the embeddedness of solutions into a transition pro-cess (Wiek et al 2012) Sustainability transition management and the suitable meth-odological spectrum gain importance in the business sector after having found much attention in the public sector (Loorbach and Wijsman 2013) Figure 22 represents a classical guided transformation in the understanding of sustainability science Some conceptual aspects are fundamentally important

1 Transformation is an iterative-adaptive process and arises from the spectrum of adaptive management (Gunderson 2001 Armitage et al 2010) As in a PDCA (ldquoplan-do-check-adjustrdquo) cycle there is circularity between intermediate results and further refined transformations in connection with learning effects of all sys-tem agents

2 Desired changes and the knowledge of enabling target knowledge factors require the exact knowledge of the problem with regard to factors subsets and realistic system boundaries which actually correspond with each other (system knowl-edge) (Wiek et al 2006)

3 Knowledge of how transformation can be achieved results from experience based on system and target knowledge It involves the application of suitable methods which above all can involve a broad spectrum of system agents and bring in different perspectives for the transformation coupled with the ability to harmonize them

Recalling the previous paragraph it must be assumed that contemporary approaches of the SSCM and sustainable logistics have only insufficiently defined system boundaries and subsystem interactions in relation to sustainable economic


32

activity Respectively only inadequately appropriate transformation goals can be derived from this thus short-term transformation strategies in supply chains are ldquopre-programmedrdquo Especially in the interplay of theory building and its application and the transfer into the ultimately decisive practice of sustainability management the illustrated transformation process plays an important role In order to be suc-cessful in achieving substantial sustainability benefits gaps need to be closed This requires application of suitable understandings of sustainability (analytics) as well as a suitable transdisciplinary and cross-sectoral methodology (Binder et al 2015) Both have so far been little or not reflected in the context of SSCM

Misleading Efficiency Guidance

A necessary shift from a dominant efficiency paradigm toward needed resilience guidance is only insufficiently implemented within SCM and SSCM theory and practice2 Supply chains have to meet a needed degree of flexibility and adaptability within their structures and processes as well as of the correlated service operations in an in vivo fluctuating business environment This is essential to achieve the goals

2 Resilience here is understood as the ability of a system to work under stress and external distur-bances or maintain its necessary system services Resilience will be subject to further elaboration within the context of this chapter

TARGET KNOWLEDGE

TRANSFORMATION KNOWLEDGE

SYSTEM KNOWLEDGE

Fig 22 A sustainability transition cycle (Source Wuppertal Institute modified)

K Krumme

33

of ldquothe right output at the right time and the right locationrdquo Pure efficiency guided optimization in a supply chain must be valued problematic against a resil-ience background Even eco-efficient or energetically optimized resource systems of supply chains do not lead to sustainable improvements since they cannot meet the needed flexibility and adaptability (Korhonen and Seager 2008 Fiksel 2015 Korhonen and Snaumlkin 2015) To reach a suitable adaptive capacity the diversifica-tion of the resource base structures and functions within the supply chain is impor-tant The diversity and presence of multiple and also redundant elementary structures as reserves variants or buffers ensure ancillary services even if condi-tions change drastically andor if key elements fail (Folke et al 2002 2010 Brown and Williams 2015)

Efficiency of supply chains must therefore be considered in relation to the emer-gent system properties and find a meaningful place in the targeted categories of management approaches (Fiksel 2003 Korhonen and Seager 2008) In the indus-trial context some authors already exemplify the efficiency vs resilience paradox on the basis of comprehensive value chain and material flow networks of and in between firms considering sourcing production supply and consumption substruc-tures (Zhu and Ruth 2013 Chopra and Khanna 2014) deriving new policy recom-mendations rooted in industrial ecology (Deutz and Ioppolo 2015)

Content-Strategic Weaknesses

Design criteria for sustainable systems beyond ldquomainstreamrdquo contents of triple bot-tom line-guided approaches such as efficiency management or corporate social responsibility must be found Some are content specific for this book with regard to the linkages of logistics to consumption pattern and societal lifestyles These crite-ria necessitate a general expansion of SSCM theory into the spheres of sustainable consumption and sustainable product life cycles (see Chap 1)

Much inspiration can be provided here by resilience design concepts Resilience- driven concepts are impressively elaborated in the sustainability science communi-ties (Berkes et al 2000 Gunderson 2001 Folke et al 2002 2010 Fiksel 2006 2015 Folke 2006 Derissen et al 2011 Evans 2011 Bahadur et al 2013 Olsson et al 2014 Brown and Williams 2015 Krumme 2016) A fundamental prerequisite for resilience design is the full recognition of system boundaries connecting the sustainability-relevant linkages between production supply and consumption as well as a good understanding of the respective interplays and interdependencies

Specific content weighting in the scientific debate on supply chain resilience (SCRES) is crucial here which has become considerably more important in the recent years (see Christopher and Peck 2004 Sheffi and Rice 2005 Pettit et al 2010 Juumlttner and Maklan 2011 Hanke and Krumme 2012 Wieland and Wallenburg 2013 Tukamuhabwa et al 2015) However compared to the main research of sus-tainability science there are still substantive deficits which have consequences for


34

supply chain strategy and planning due to knowledge gaps and unrecognized risk potential in SCM

Most research in SCRES still focuses on intrinsic vulnerability factors of supply chains much less on ldquoexternalrdquo links to sustainability in general or research areas which have a high concentration of attention in sustainability sciences such as cli-mate change impacts (compare Tukamuhabwa et al 2015 Donadoni et al 2016) The direct link of resilience concepts in SCMSSCM to climate change risks stays surprisingly underrepresented in scientific literature up to now Concrete alternative service models do not exist either (Levermann 2014 Beck and Walker 2013) Just general knowledge lacks and respective research challenges have been detected and food systems particularly are recognized as critical bottleneck (Benedikter et al 2013 Miller et al 2013 Levermann 2014 Paloviita 2015)

Water and energy concerns are cross-oriented issues along commodity supply chains and represent dominating factors for their sustainability Furthermore supply chains will become more vulnerable against changing environmental regimes and respective disruptive events and chronic stresses (Hanke and Krumme 2012) sig-nificantly related to the three dimensions of the water energy food security nexus (WEF nexus) an area of high attention in the sustainability research landscape (Bazilian et al 2011 Hoff 2011 Allan et al 2015 Rasul and Sharma 2015 Scott et al 2015 Smajgl et al 2016) For the backdrop of global environmental change and the interlinked urbanization dynamics a needed and long-term resilient avail-ability of water food and energy for the growing (urban) sinks pose new chal-lenges for sustainable product life cycles and interwined modern supply chain businesses (Krumme et al 2011 Hoekstra 2014 Hoekstra and Wiedmann 2014 Krumme 2016) With respect to the WEF nexus and a SSCM perspective only few works have been published According to Ercin et al (2011) development of highly water-efficient management systems does enclose a more comprehensive product LCA as well as a supply chain perspective Gerbens-Leenes et al (2009) published helpful work of assessing water footprints for renewable biomass sourc-ing and supply In the future ldquowater-awarerdquo and ldquowater-sensitiverdquo supply chains of products and services will be standard monitoring the water use from the source to the sink and also determining ldquoend-to-endrdquo lean water management systems (Boulay et al 2013) This is principally analogous to the role of energy inputs along supply chains in terms of goods and services although measurements of energy footprints are less investigated than carbon or water footprinting Valuable examples are given for the energy footprint of bottled water (Gleick and Cooley 2009) as for commod-ity production (Huijbregts et al 2010) As a cross-oriented aspect the exploitation efficient use and addition of new and higher-quality renewable energy sources is essential in its manifold relations to SCM To raise the atmospherersquos GHG-carrying capacity new sources and supply systems will more strongly be based on a decen-tralized pattern and differentiated regional supply chain scenarios particularly with respect to the dominant urban sinks of energy consumption

K Krumme

35

Building Blocks of a Sustainable Supply Systems Approach

Entrepreneurial initiatives have so far failed to draw on concrete applicable models of integrated sustainability in the supply chain Integration work in the form of pri-oritization and decision-making in the company and along the cooperative struc-tures of supply chains is required (Souren 2000) This integration work would have to essentially touch on the underlying sustainability models since they play a con-stitutional role for derived business innovations

Building on sustainability science central points of criticism with regard to the current state of SSCM described above can be contrasted with some conceptual improvement options The below listed four options refer to some needed core ameliorations and to a necessary integration work at the level of companies and beyond (ia consumer and societal levels) Decision-making must correlate to the entire supply chain and its internal and external sustainability issues as sub-sys-tems within a common system boundary for assessment planning management and controlling tasks

bull Application of ldquostrongrdquo sustainability models as a consequence of an increased awareness and knowledge transfer between sustainability science and SSCM and to form a new necessary basis for advanced sustainable supply chain concepts

bull Stronger recognition of nested systems organization and system dynamics as attributes of sustainability at the decision-making and supply chain planning levels

bull Enforcing resilience-driven supply chain design as integral compound of SSCM andmdashvice versamdashemphasizing sustainability issues as strongest drivers of SCRES

bull Visualizing of ultimate source-sink relationships as root causes of global unsus-tainability and development of sustainable ldquourban-industrial metabolismrdquo approaches based on the above other options

An integrated supply chain perspective provides holistic views on the entire way of material energy value and information flows from all sources to sinks in the complex net structures of socioeconomic and especially industrial systems and combines effectively macro- (eg country) meso- (eg urban) and micro- (eg firm) levels The following discussion is intended to provide key impetus without any claim to a complete conceptual model at this time in the absence of further necessary research However these initial impulses can avoid misinterpre-tations of sustainaility from a scientific point of view and possibly serve as orien-tation for further research and testing Specifically the basics of understanding sustainability are deliberately elaborated and incorporate conventional ldquoweakrdquo approaches to more clearly explain the advantages and disadvantages of fundamen-tal sustainability models


36

Integration of ldquoStrongrdquo Sustainability Models into SSCM

As a result of the research of ecological economics (EE) alternatively to weak sus-tainability more consistent methods based on so-called strong sustainability (Costanza and Patten 1995 Costanza et al 1997 Ekins et al 2003 Neumayer 2003 Costanza 2009 Ekins 2014 Pelenc and Ballet 2015) can be proposed for further consideration The application of strong sustainability models is probably the most striking difference to contemporary SSCM suggested by this chapter

Strong and weak sustainability have been subjects to intensive academic discus-sions and have led to a quantity of indicators (Daly 1997 Solow 1997 Stiglitz 1997 Neumayer 2003) In fact weak sustainability and strong sustainability imply different aggregation functions that involve different assumptions of substitutability between relevant factors (Kestemont 2015)

Weak sustainability can be considered as reducing system complexity to a single dimension whereas strong sustainability takes into account differentiated critical capitals that determine the sustainability or unsustainability of a system Basically strong sustainability establishes functional relations between system units in the form of system hierarchical considerations for example by understanding assets of the ecological system organization as stocks of a non-substitutable ldquocriticalrdquo natural capital Key principles for strong sustainability are

1 So-called critical capitals may not fall below certain values of qualitiesquanti-ties Decisive is the application of carrying capacitylimits of use principles of socioeconomically used ecosystems

2 Responsibilities should be measurable transparent and understandable also within complex value chain networks

3 Equity of (also critical) capitals must be well distributed among producers trad-ers and consumers

To precisely underpin central arguments for an alternative theoretical background of SSCM a mathematical description is chosen To explain principles of the neoclas-sical weak sustainability Kestemont (2010) considers a set KS of substitutable capi-tals kj

KS n= hellip k k k1 2

Let k be the sum of substitutable capitals

k k

n

j

j = sum=1

(21)

and let k prime be the growth of total capital

k k kprime = minus t 0

K Krumme

37

The generalized condition of weak sustainability is

k prime ge 0 (22)

The total capital should not decreaseThis ldquoresultrdquo as a general axiom of sustainability is problematic The total capital

approach is doubtful and generates significant errors because

bull It implies that ldquounknownrdquo capitals are not taken into account and are implicitly weighted zero If for example new capital is involved due to scientific findings or normative social or entrepreneurial decisions this inevitably leads to signifi-cant shifts in the statements or the quality of sustainability in a (always neces-sary) sustainability assessment (Kestemont 2015)3

bull The choice of the underlying (measuring) units is highly normative and a source of subjective misinterpretation or also external (political) influence

bull Methodological problems of dimensioning and weighting in the transmission to a ldquosustainability valuerdquo exist as the indicators (such as energy use ecological footprint financial volume or tons of material resources) inhabit inconsistencies for an undifferentiated overall design and some are inconvertible

Furthermore if a set W of wj nonnegative weights of perfectly substitutable capi-tals is considered

W w w wn= hellip 1 2

sum ==

n

j

jw1

1

w j nj ge = hellip0 1for

The weighted arithmetic mean of capitals A(k) is

k A k w kj j= ( ) = sum

(21prime)

Let the growth of mean capital be

prime = ( ) minus ( ) = =( )k A k A k t tt 0 0 at time at initial time

The condition for weak sustainability (2) becomes

prime gek The mean capital should not decrease0 (22prime)

3 Economic history since industrialization in particular with the establishment of neoclassical eco-nomic theories for example has not counted natural capital This mistake is now obvious and illustrates elementary conceptual disadvantages of weak sustainability for portraying the reality encompassing system properties and finding of appropriate decisions for planning in economic environments


38

max primek (23)

We can conclude an approach of weak sustainability would maximize unspecifi-cally the average () capital value and would therefore simplify important parame-ters of complex reality in a detrimental way

In contrast strong sustainability works with natural limits of stressingusing spe-cific capitals such as natural resources for example specifically the functioning of the natural environment in terms of ecosystem goods and services (EGampS) (de Groot et al 2002 2010 Daily et al 2009) In doing so irreversibility and scientific understandings of preserving functionality eg for natural capital as a set of critical resources are applied Other capital concepts can also be principally critical even in the classical social and economic dimensions The (critical) capital concept com-pared to the triple bottom line has a specific systematology to avoid multiple assign-ments of capitals in decision-making4

Consequently sustainability can be expressed as the presence or specific perfor-mances of critical capitals Strong sustainability means that critical capitals (such as assets of natural capital) are not substitutable eg through technology assets

Consider a set KR of critical capital k (not substitutable and non-zero)KR = hellip k k kn1 2 Let kr

prime be the growth of each critical capital

k k kr rt rprime = minus 0

k rr0 = capital at initial time

k r trt = capital at time

The generalized condition of sustainability is (Kestemont 2010)

forall geprimek kr rKR 0 (24)

Any critical capital must behave stably or increase decrease of a single critical capital leads to unsustainability

This result corresponds to a great extent to the behavior of natural ecosystems and is thus well founded by observation in complex natural systems A (normative) weighting or selection methodology is unnecessary

Literature of sustainability science is full of application potential for specific fac-tors and the other way around these factors are essential for the overall sustain-ability assessment procedure particularly with respect to the natural environment (such as fish stocks renewablenonrenewable energy sources minerals ecosystem footprints of cities etc) (see Folke et al 1994 Rees and Wackernagel 1996 Costanza et al 1997 Martinet and Rotillon 2007 Rockstroumlm et al 2009 Kestemont

4 The limits may be directly detectable such as in the case of depletion of a nonrenewable energy source or combined when multiple sources and products are considered

K Krumme

39

2010 2015) A further specification goes beyond the scope and the intention of the book to motivate a principal ldquoturnaroundrdquo in the context of sustainability of socio-economic systems particularly (integrated) production supply and consumption systems through SSCM and cannot be at this point subject to more extensive elaborations

To conclude about the integration of strong sustainability into SSCM we can recognise aspects that bring those theoretical foundations naturally together with the initially mentioned essence of SCM As mentioned above the concept of strong sustainability includes the conditions of responsibility and equity beside critical capitals Here particularly interesting conceptual linkages toward SCM exist In strong sustainability production supply and consumption systems are linked by a shared responsibility along a life cycle of products including its associated ser-vices Concepts of SSCM should in this light include the fiduciary service of the shared responsibility to enable strong sustainability Consequently equity in par-ticular a minimal distribution of (critical) capital at all stages of source-sink rela-tionships and respective supply chain partners is vitally important

With a supply chain perspective (critical) capital as terms of stock is not suffi-cient Supply chains are capable of symbolizing literally a shared responsibility of value chain partners and further stakeholders as well as the translations of strong sustainability into the other component of capital which represents the flows Flows within and due to supply chains make the handling of the concept of strong sustain-ability more complex since causes and effects of environmental impacts are not always situated at the same place and time yet they are more promising for further elaboration Beside ecological effects this would also include social impacts caused by the intransparent complexity of supply chains related to for example conditions of production in a developing country and a functionally linked level of comfort in an industrialized country The supply chain actually connects complex sustainability- related cause-effect relationships through often globalized network structures Factors in production are therefore always correlated to feedbacks in the consump-tion function and the supply chain and the associated services are more than just a transmission of products but an enabler of consumption and production

Modern supply chain services are not just connecting but qualitatively influenc-ing functions of supply and demand as well as their dynamic interplay An impor-tant operationalization for strong sustainability considering the above-named aspects lays in the internalization of ldquosustainability burdenrdquo into price building of products but also supply chain services as a signal for the consumer Vice versa the consumer must be enabled to oversee the mechanisms and conditions that lead to a ldquotruth of costsrdquo concerning the full product life cycle It necessitates activating SSCM for the informational logistics of sustainability values and data along the chain up to the consumer (supply chain transparency) On the other hand active impulses of the consumer in choosing specific mechanisms and conditions along the supply chain should be set in order to support sustainability

Authors in sustainability science have not sufficiently considered this synergy up to now It would remarkably demonstrate principle progress of measuring sustain-ability with strong sustainability approaches to reach a sustainable green economy yet remaining an unexplored area of research


40

Strengthening Systems Thinking for Sustainable Supply Chains

Sustainability is a systems concept and system agents interact all across the known three sustainability dimensions Systemic emergence through dynamics and complexity of a variety of system agents must be reflected in the understanding of sustainability and resulting development strategies (de Vries 2013) Application concepts in the economy inevitably depict systemic and nonlinear relationships in decision-making structures in order to avoid errors with short-term effects secure investments in the long term and ultimately make stability efforts (also in terms of expansion) sustainable System thinking and nested systems organization theory (see Mesarovic et al 1970 Findeisen et al 1980 Forrester 1994 Bossel 2003 2007 Meadows and Wright 2008) and their application in sustainability science (Fiksel 2006 Hjorth and Bagheri 2006 Wiek et al 2011 Abdelkafi and Taumluscher 2016) can provide good progress also for SSCM expansions and refinements

Supply chains are dynamic systems having a complex network structure For a successful sustainability management of supply chains the question of the ldquode factordquo effective network structures and the system boundaries for planning and management is of utmost importance For sustainability purposes it is essential to identify the relationships between external and internal elements for the quality and accuracy of a forthcoming sustainability management or transition process Objectively seen supply chains exchange energy information and material matter with the environment as open systems beside the actual goods handled and supplied but functionally interdependently linked so-called ldquoco-flowsrdquo and will even be con-trolled by this to a considerable extent The surrounding system (the regional national or international economic system but also complex social and ecological interrelationships) can be decisive in the sense of profit and loss for the enclosed business system if the interactions are correspondingly strong

Economic systems in general and supply chains specifically are characterized by a higher proportion of merely qualitatively comprehensive interactions This is mainly due to the subjectivity and heterogeneity of socioeconomic stakeholders as ldquoconsciousrdquo elements and contributes to the fact that the self-transformation poten-tial including a number of relevant dynamic capacities are encouragingly strong

A crucial first step in an advanced SSCM process is the definition of the system boundaries what is part of the actual system to be transformedimproved and what can be excluded Even though the answer can be extremely difficult qualitative system dynamics (SD) represented in causal loop diagrams (CLD) can help and deliver insightful results Even quantifiable results can be achieved with SD although it is generally difficult to find quantifiable indicators for system boundar-ies5 System boundaries in the context of the SSCM are defined in two ways On the

5 As a quantitative system analysis usually involves a complete description of the relevant system elements and their interactions one possible way could therefore be to describe the system bound-aries with the help of a measure (eg number of items the total strength of the interactions) The system boundaries could then be defined by setting a target value for this measure which is reached depending on the choice of system boundaries or not The implementation would require however that we previously know the actual and total environmental impact

K Krumme

41

one hand it is important to make decisions about the horizontal structure in terms of the management scope This concerns the inner core of this book and means the functional connections of the classical supply chain structure with upstream produc-tion and sourcing structures as well as downstream with consumption product use and possible reintegration into product life cycles The determination of the system boundaries in a vertical manner concerns external elements which are not directly related to the value chain and issues of the natural or socialeconomic environment or repercussions of the supply chain with these elements and issues

A second step is to assess the inner composition and organization of the included system elements Each entity is seen as a (sub-)system in its relationship to other systems placed at higher levels of observation The features of this ldquosystem of systemsrdquo can be detected in subsystems and are described as principles of a nested systems organization to be used for sustainability-related purposes (Bossel 2007) The finding of system states of sustainability (ldquosustainable systemsrdquo) appears now as a way to include the ldquoreal-liferdquo factors (that had been conventionally categorized as social ecological or economical) into frameworks that consider the actual nested organization of the factors and the connectedness in multi-categorial func-tions in a way to produce long-term continuity of the system False decisions or exclusion of vital factors would in the long term lead into system regimes of higher instability which can already be observed through the global sustainability crisis Here too methods of system dynamics are helpful for determining interrelation-ships identifying central functional areas identifying functional principles or applying archetypes of known system behavior to functional networks (Sohofi et al 2016)

Since the observed systems themselves are part and parcel of dynamic environ-ments the focus is put on the organizational principles such as coping the systems and their subsystems with changes while remaining within a specific frame allow-ing a continuity of their functions or services (resilience) The description of system resilience has its scientific origin in the early 1970s (Holling 1973) The concept has undergone some refinements but present-day definitions concentrate on conditions for multiple flexible system equilibriums to absorb disturbances before the system changes its structure by changing the variables and processes that control its behav-ior (Gunderson 2000) According to Pettit et al (2010) who described how compa-nies deal with uncertainty in supply chains resilience is an evolving concept that offers advantages against the background of traditional supply chain risk management

Thus a further focus of system analysis should not stop by whether specific sys-tem factors are included into assessment planning and management but rather ask in which way the comprehensiveness of factors is organized to produce a sustain-able (stable and continuous) interplay and performance The way how agents and interrelationships are organized is decisive for emergence of system resilience against internal and external disruptions or chronic stress This leads to issues of long-term system behaviors and options to keep up services under change which are subject to some statements in the next paragraph


42

Linking SSCM with SCRES Design

System resilience can be perceived as a point of reference for solution designs in sustainable development (Krumme 2016) SCRES particularly shows some concep-tual differences compared to supply chain risk management (SCRM) and appears thus suitable for integration into a context of sustainability transition management From a strategic risk management standpoint qualifying supply chains for the sustainabil-ity challenge has another aspect The intensity of the worldrsquos global environmental change (particularly the effects of climate change) and the interconnected rise of social and economic volatility are destabilizing supply chains in a range of ways

Since business decision-making is often based on historical data and already made experiences it could be shown that the greatest weakness of risk management is its inability to adequately characterize low-probability high-consequence events (Kunreuther 2006) Following Korhonen and Seager (2008) a supply chain risk- based management strategy is insufficient to achieve long-term sustainability because particularly environmental risks do exceed our understanding and limited forecasting capacities

Single drastic events can have vast influences and lead to enormous financial and nonfinancial damages for companies and hence the overall society in terms of sup-ply bottlenecks and deadlocks Assuming that the diverse effects of climate change and the interrelated other ecological and socioeconomic instabilities will modify quality intensity frequency and the overall predictability of disruptions of supply networks resilience is significantly relevant for SCM

Additionally with respect to the sustainability of supply systems event-driven precautionary and preventive systems may not be sufficient The observation of ecological or also social change processes (such as climate change or emerging societal trends accordingly) shows however that often not only sudden events lead to a destabilization of systems but also slow and subtly changing conditions It is striking how much resilience design can be transferred to socioeconomic socio- technological and industrial systems and their ultimate dependence on an ecologi-cal meta-system

In addition to the above notions of resilience further interlinked core aspects are given such as the extent to which the system is capable of self-organization and flexible adaptation (Perrings and Walker 2004) through its ability to build and increase capacity for learning and adaptation (Folke et al 2010) In particular this corresponds with the aforementioned paradigm of sustainability sciences to system- based forces for participatory collaborative designs for system change (Beddoe et al 2009)

For the entirety of an observed system and for each subsystem or interface the following four system properties play conditioning roles in resilience design (Krumme 2016)

1 System resource and system agent comprehensiveness and diversity relating to buffers alternatives and stocks

2 System structures and boundaries to encompass driving functions for a long- term viability

K Krumme

43

3 System dynamics defining interactions as balancing enforcing or attenuating feedbacks

4 System capabilities as (re-)configurability of the system dynamics on the basis of stakeholders and institutions and their adaptive capacities

Crucial for adaptive capacity is the broadening and diversification of the resource base of desired sustainable systems The diversity and presence of multiple and also redundant elementary structures as reserves or buffers ensure ancillary services even if conditions change drastically andor if key elements fail (Folke et al 2002 2010 Brown and Williams 2015)

In the context of SSCM and SCRES a focus is on adaptive management and resource use governance as a linking momentum between socioeconomic and eco-logical subsystem relationships demonstrated on the example of the economic use of ecosystem functions as ecosystem services by some authors (Costanza et al 1997 de Groot et al 2002 2010) In case of SSCM (eg extraction and further processing distributing and retailing of goods for example food products) the socioeconomic part stands for the supply chain and resource use by cooperating companies Another important design feature for resilience is decentralization of supply systems Decentralized supply pattern has direct links to regionalization of supply chains eg local food Regionalization would lead to macro-scale decen-tralized supply chain structures and can introduce management and decision- making structures which are closer to specific needs of consumer communities To foster sustainability this is particularly relevant in a worldwide dominant urbanization context if some other implications are considered which are subject to the follow-ing paragraph

Respecting Ultimate Source-Sink Relationships of Urban- Industrial Supply Networks

Cities control the worldwide relations between sources and sinks Supply chain businesses integrate strongly urbanized pattern and contextualize the supply chain as a mediator between the (consumptive) city and its markets and retailing system as patches within the dispersed worldwide pattern of production

In this connection supply chains are in manifold directions yet being directly linked to global unsustainability The overshoot of the planetrsquos ecological capacity can be specified in terms of a drastic resource overconsumption at the sources (to produce or regenerate resources) already causing acute or predictable scarcity or deadlocks at regional or global scale and by overstretching the capacities at the sinks eg by destabilizing the global climate (Rockstroumlm et al 2009 Barnosky et al 2012 Hoekstra and Wiedmann 2014 Rockstrom and Klum 2015 Steffen et al 2015) With the increase of population and global wealth production concen-trated particularly in urban areas and directing most world resource stocks to cities the cities are the utmost cause of the global environmental degradation (Alberti


44

1996 2010 Rees and Wackernagel 1996 Wackernagel et al 2006 Assadourian et al 2013 Vojnovic 2014)

Cities enable corporate developments for transnational activities through infra-structure and expertise and by representing the major communication and transpor-tation hubs They are hotspots of incoming or outgoing investment activities resulting in innovation in business and society that in the end controls developments of a ldquoglobal villagerdquo (Harris 1994 Derudder 2009 Brown et al 2010 Sassen 2010 Taylor and Csomoacutes 2012) They are systematically interlinked within an industrial connex of material and energy flows Several authors highlight the dependency of future urban systems from those functionalities and industrial life support systems capable to preserve water energy and food supply (Sassen 2009 Krumme et al 2011 Beck and Walker 2013 Walker et al 2014 Biggs et al 2015 Krumme 2016 Smajgl et al 2016) As much as at the current status cities are a major force of unsustainability it gets obvious that the cities are key for sustainability (Rees and Wackernagel 1996 Bugliarello 2006) and thus bear up to now less explored momen-tum for SSCM strategies

In a consequence alternatives to the globalized current urban-industrial ldquoworld city networksrdquo could be contradicted by a renaissance of higher levels of a regional self- or semi-sufficiency of taking up alternative organizations of nested hierarchies as indicated but not fully elaborated by some scholars (Baccini 1996 Roseland 1997 Newman 1999 2006 Andersson 2006 Newman and Jennings 2012) Such alternative constellations for urban systems would not principally withdraw the glo-balization of cities in their networks but would postulate new orientations especially for the critical material and energy flows by respecting critical ecological capacities as well as opportunities within newly balanced multi-scale nested hierarchies of urban systems through innovative urban-industrial supply chains One central issue is how the urban metabolism of cities considering the in- and outflows in the context of supply systems can be rearranged for cities (Rees 1997 Newman 1999 Ravetz 2000 Pincetl et al 2012 Chrysoulakis et al 2013 Huang et al 2015 Kalmykova et al 2015) Urban regionalization strategies could lead to more dense but also stronger decentralized production and consumption pattern correlated ideally with increased regional supply capacities and alternative pattern for closed loops in the respective supply chain systems6

Sustainable Supply Systems (SUSY) Advanced Conceptualizations of SSCM

On the basis of the interpretation of the beforehand elaborated building blocks six guiding principles can be identified to elaborate (1) an advanced definition of SSCM as well as (2) a first outline of a conceptual model including illustration Both are

6 Enforced independence in supply if it could be implemented in radical forms which is for cities beyond a critical size in reality hardly realistic

K Krumme

45

centered on the principle understanding of ldquosustainable supply systemsrdquo (SUSY) SUSY represents nested parts of a green economy itself being dependent to non- substitutable functions of natural capital The guiding principles are the following

1 Respect limitations of socioeconomic use of (natural and socioeconomic) system environments by integration of the concepts of critical capital shared responsi-bility and distributive equity as guidelines for strong sustainability-based decision- making in SSCM

2 Base planning and management of supply chains on the in vivo nested systems organization of the chain and its ecological and socioeconomic environ-ment resulting into complex and dynamic system behaviours

3 Define comprehensive system boundaries Assets of critical (natural) capital should be equally considered along the full scope of integrated production sup-ply and consumption systems for SSCM

4 Interpret integrated production supply and consumption systems as urban- industrial source-sink relationships to effectively serve a green economy

5 Integrate SSCM with concepts of supply chain resilience (SCRES) design par-ticularly with respect to supply chain ldquoexternalrdquo sustainability-related factors

6 Consider SSCM as continuous improvement cycle of a stakeholder-driven sus-tainability transition within the green economy context

Proposal for an Advanced Definition of SSCM

Referring to the above conceptual building blocks and on the earlier ldquoclassicalrdquo SCM definitions such as by Simchi-Levi et al (2008) an expansion of SSCM can be proposed at this point

With regard to this definition we consider modern logistics a responsible instance for the design coordination management and control of sustainable operational networked systems The more companies work together in the supply chain the more comprehensive and successful sustainability implementation can be in the

Sustainable supply chain management (SSCM) is the development design and coordination of cross-company and affected external material informa-tion energy and financial flows throughout the entire value chain and its operational environment Services ultimately aim at the production and distri-bution of the merchandise in the right quantity to the right locations and at the right time in order to minimize system-wide costs including externalities in terms of water energy waste and further interlinked natural resources while satisfying certain service-level requirements addressed to and by the customer but balanced with overall societal needs


46

interests of all stakeholders The inclusion of externalities and balances with overall societal needs is centrally addressed by the conceptual assets of critical capital shared responsibility and distributive equity This results in business and service opportunities for LSP in the planning and operationalization as well as the quality management of the entire sustainable supply chain A sustainable operational sys-tem integrates the economic dimensions with the environmental and social needs in a functional order of a nested organization to increase resilience Systems integra-tion of production supply and consumptionuse within boundaries of urban and industrial source-sink relations plays a significant role for sustainable ldquogreen econ-omyrdquo strategies

Proposal of a Model for Integrated Sustainable Supply Systems (SUSY)

Unifying the above conceptual blocks can successfully be done as in the form of a metabolism model Metabolism models show a high suitability to illustrate flows in source-sink relationships and thus indicate ldquocommon languagesrdquo with SCM Krumme (2016) presented already an ecological economic-based model on urban-industrial supply and demand systems orientated on the functional view of source-sink rela-tions but a further specification as with supply chain elements has not been consid-ered (Fig 23)

As integrated by Krumme (2016) the metabolism model is rooted in the under-standing of the ldquofull-worldrdquo economy models of ecological economics (Costanza et al 2014) In the opposite to the neoclassical economic theory natural capital is not considered a resource of value-creating economic systems but as a limited sys-tem environment in which the structures processes and functionalities of the econ-omy are embedded determined to a large extent by ldquolawsrdquo of natural sciences particularly physics and ecology (Daly 2005 Costanza et al 2014) The economic subsystem puts pressure on the functioning of the surrounding system through eco-nomic activity and economic growth Thus industrial production supply and con-sumption systems can be interpreted as expenditure of natural capital Krumme (2016) specifies this general model with subsystems of source-sink relationships and points out a resulting principle metabolism (Fig 23) Beside more precise views on the typology of the sinks as ldquourbanrdquo a source view then incorporates not only typical industrial capacities but also those capacities which are ldquosources of the sourcesrdquo in the form of ecological resources andor ecosystem goods and services (EGampS) against the background of ecological economic theory (Costanza et al 1992 Rees 2003 Wiedmann et al 2006) Thus sources could more adequately be described as eco-industrial sources The expansion of the (urban-industrial) economic subsystem is driven by both demand and supply between source and sink The environmental impact is inclusively driven by supply and demand combined with turnover of resources the effects on the eco-industrial source (in terms of con-version of natural capital into human or industrial capital) all kind of emissions of

K Krumme

47

the urban sink and nonrecyclable deposits of degraded resources (if only a part of resource turnover can be redirected in the form of a closed loop back toward the eco-industrial source)

The urban-industrial metabolism model represents a shift from a structural or spatial toward a more functional reception of system boundaries to stress the con-ceptual inseparability of the two drivers of urban and industrial dynamics for sus-tainability or more precisely the transition toward a sustainable socioeconomic system Helpful aspects of such an integrated functional viewpoint are the definition of concrete functional domains of supply to link up eco-industrial sources with urban consumption sinks within the urban-industrial nexus

On such a basis those functional domains of supply could also be characterized by concepts of supply chain management (SCM) Once the relationship between eco-industrial source and urban sink is qualified by the description of SCM the relationship can be embedded into a more comprehensive functional metabolism model which is here named SUSY sustainable supply systems metabolism model Needed is specification of the concretely tangible occurrence of interrelated (sub-)structures of a supply chain A SSCM perspective would further refine the already described principal stocks flows and functions and conceptually link up SSCM with ecological economics as well as with the main drivers of (un)sustainability (Fig 24)

Urban Sink

Resources

Resources Recycle

Urban-Industrial System

Natural Capital

Eco-Industrial Source

Demand

Supply

Depositsof degradedResources

Emissions

Resources

Environmental Impact Low Grade

Thermal Energy

Solar Energy

Fig 23 Advanced urban-industrial metabolism model (Krumme 2016)


48

The SSCM scope of Fig 24 can be characterized as the operation levels of sup-ply between the eco-industrial source and the urban sink Therefore resource flows (material and nonmaterial) and value creation are characterized for the supply chain and correlated with service and operation levels Terms are then (a) operations and service levels (eg plan source make deliver use recycle) to perform the supply function and (b) material and nonmaterial resource flows along the stages of the supply chain (resourcesmaterial (including products resources and material co- flows) energy information and value)

Operations and service levels of SSCM decide on the way how managing of flows in the chosen environment is implemented in a sustainable way Principles of strong sustainability particularly with respect to critical capitals would then be implemented at all stages of the supply chain S (sourcing of materials) P (produc-tion and manufacturing) D (distribution storage transshipments) R (retailing) and B (buying) Direct further effects on system sustainability are addressed by nonclassical elements of SCM in the after-sales area These are in direct relation with forms of consumption and lifestyles and have a decisive effect on higher or lower rates of resource consumption and environmental impact through a redesign-ing of product life cycles


Natural Capital

Low Grade Thermal Energy

Solar Energy

PS D R BU3

CU1

U2

Urban Sink

Degraded Materials

Degraded Energy

Resource Water and Energy Recycling

Supply Chain Scope



ESGS

Fig 24 SUSY (sustainable supply systems) based on the urban-industrial metabolism

K Krumme

49

Within the urban system at least three different forms of consumption are taken into account in the SUSY model U1 (primary consumption) U2 (further circula-tion of used products in the sense of a sharing economy) and U3 (product modifica-tion or modularization including upcycling into other forms of use in the sense of extended circular economy) C describes the conventional recycling of materials (basic circular economy) after all these stages have already been completed Closed loops in correspondence to the eco-industrial source (eg via remanufacturing or refurbishment) have to be established at all segments in the after-sales area This also applies to deposits that are initially no longer usable whose integration into the closed loop has to be intensified or their emission must be avoided by upstream structures of the supply chain

The full supply chain is contextualized with the ultimate importance of ecosys-tem goods and services (EGampS) as a direct form of how critical natural capital becomes ldquovaluablerdquo in the economic system

Planning and management of an urban-industrial system in a resilient and sus-tainable manner would consider all system compartments and interrelationships against the background of resilience design It primarily addresses the multifold factors of the expansion function and of the environmental impact function in an integrated way to reduce both functions under the thresholds of the carrying capac-ity of the finite natural system In parallel to an increase of the closed-loop function between the three subsystems of the eco-industrial source the urban sink and depos-its of degraded material and energy would be enforced

Conclusions

It has been shown that against the background of sustainable development new paradigms and patterns of planning design and action in SCM and logistics are needed In this area new concepts may have a potentially decisive positive impact on the establishment of a sustainable socioeconomic future

So far conceptual advances in SSCM as an extension of SCMrsquos conventional achievements already demonstrate some integration of mainstream sustainability concepts However due to the deficient nature of the underlying sustainability mod-els used and the lack of knowledge transfer this basis can be substantially criticized from the state of established sustainability science Sustainability science can pro-vide valuable knowledge about the sustainability of systems to be planned devel-oped and operated Much progress is based on a systems science approach with various specializations concepts based on nested systems organizations and resil-ience in and of social-ecological systems (SES) Nested systems organization not only provides structuring of drivers effects feedback and complex issues It also provides principles for how systems can cope with existential perturbations and exposures by specific (and flexible) system compositions and resulting behaviors This available theoretical knowledge about the ability of systems to be sustainable has already been transferred to decision support sustainability models strongly


50

influenced by the agenda of ecological economics and can be used as ldquostrong sus-tainabilityrdquo for the transition to a green sustainable economy

Core sub-concepts such as ldquocritical capitalrdquo ldquoshared responsibilityrdquo and ldquodis-tributive equityrdquo in value creation systems and product life cycle settings are suit-able for being transformed into a targeted enrichment of SSCM Based on the identified building blocks an advanced definition of SSCM is given

It is vital to understand that the translation of new concepts of SSCM into prac-tice and the testing of conceptual advancements within the normative context of a green economy or wider a more sustainable socioeconomic system are a stakeholder- driven iterative process The success of a necessary transformation depends on the adequate understanding of the (sub-)systems involved and a com-plete vision of what can be achieved on this basis of system knowledge and how

The proposed conceptual model of sustainable supply systems (SUSY) builds on horizontal integration of natural capital production supply chains and consump-tion patterns under identification of ultimate source-sink relationships of dominant sustainabilityunsustainability potentials (urban-industrial system) A metabolism approach was chosen to illustrate the conceptual blocks in a consistent scheme In the tradition of ecological economics the scheme fundamentally situates the socio-economic system and all its subsystems (including supply chain structures) as ldquopressurerdquo within the limiting framework of the ecological resource and ecosystem base Crucial to the success of the practical implementation of SUSY in the respec-tive socioeconomic settings is an integrated view of (critical) natural capital eco- industrial production and sustainable product life cycles The latter depends on the further development of SSCM service portfolios based on the strong sustainability assets of critical capitals shared responsibility and distributive equity This would include the continued innovation of closed-loop control as well as lifestyles that fundamentally change product service systems to allow at least some alternative ways of permuting supply chains within new life cycles

Outlook

Based on the findings of the presented work and the proposed extensions of SSCM there is a considerable need for research that would make comprehensive applica-tion possible in practice The most important point here is the actual transferability of strong sustainability-guided supply chain concepts for example to come to the pilot-proof application of long-term viable innovative solutions within individual (logistics) companies but also with respect to exemplary supply chains or including selected interrelationships with the economic system as a whole

Specific but interrelated research perspectives concern individual fragments of a holistic strategy

1 Supply chain transparency is a fundamental condition of information logistics to facilitate the targeted transformation processes of supply chain Decentralized data and information systems such as block chain can provide interesting

K Krumme

51

approaches here especially in terms of the ldquodemocratizationrdquo of economic data and the broader diffusion of innovation processes

2 Supply chain integrity will be a key performance indicator area of modern supply chain management It will reflect on the preferences of a growing number of responsible consumers This is based on transparency but also on a further inter-mediate step the truth of the costs meant as the internalization of critical capital into the price formation mechanisms of the products including the associated services in and of the supply chain

3 Ultimately a comprehensive supply chain governance needs to expand scopes and tools of SSCM This would include shared responsibility with a focus on the internalization of critical capital or distributive equity

Subsequent to the questions of conceptual extensions of SSCM as the facilitator of central transformations of the green economy and the aforementioned transition areas between strategic management and operational management open questions concern the finding of complex algorithms as a basis for the programming of suit-able information and software technology On this basis digitization can be essen-tial for transformation into the green economy However specific links of digital SCM and SSCM must be identified and articulated in integrated concepts

Actually the logistics industry already shows fundamental levers at this point due to the strong orientation of the SCM and much progress in IT implementation which make systemically oriented approaches seem applicable SCM orientation could also help in the establishment and application of appropriate criteria indica-tion and accounting procedures of strong sustainability in the practice This results in comprehensive fields of action for cross-sectoral research collaborations between scientific economic and social actors using common suitable methodological transdisciplinary toolkits

At this point the first promising trials of strong sustainability are helpful in strengthening transfers to other areas of innovation For example Roseland and Fontaine (2017) and Bird (2015) have developed a methodology for applying and measuring strong sustainability in community development (Community Capital Tool CCT) Interesting features emphasize a taxonomy of system states the tool breaks down all capital into smaller stocks defines requirements that are measured by indicators and considers thresholds Here a complementary aspect may be the application of target modeling languages Building on definitions of strong sustain-ability models catalogues of criteria of strong sustainability could be converted into an integrated target model specifying objectives This target model which would include target criteria and prioritizations could be extended to other aspects such as key figures responsible organizational units and exemplary reference processes Target criteria provide measurability and comparability of supply chain services A continuous improvement process could thus be effectively supported

Overall clear dependencies on successful transformation processes of supply chains exist with regard to superordinate societal and legal framework conditions Here too the necessary complementary regulations have not yet been found in the sense of a holistic strong understanding of sustainability A ldquotruth of costsrdquo can only be achieved at this point since new price formation initiatives need legislation-


52

compliant frameworks Once set however they should be able to boost sustainabil-ity transformations extremely

Building on these necessary framework conditions new business models can emerge in a future green economy Many of them will involve recourses to logistics skills If the network structures of the extended supply chain ldquolearnrdquo to operational-ize sustainability very innovative business models for logistics emerge based on the elements of strong sustainability strategies The service model of the Sixth Party Logistics Service ProvidersLead Sustainability Service Providers (6PL see Chap 14) could be a crucial milestone to the success of structures and services in the future economy

References

Abdelkafi N amp Taumluscher K (2016) Business models for sustainability from a system dynamics perspective Organization amp Environment 29(1) 74ndash96

Alberti M (1996) Measuring urban sustainability Environmental Impact Assessment Review 16(4-6) 381ndash424

Alberti M (2010) Maintaining ecological integrity and sustaining ecosystem function in urban areas Current Opinion in Environmental Sustainability 2(3) 178ndash184

Allan T Keulertz M amp Woertz E (2015) The waterndashfoodndashenergy nexus An introduction to nexus concepts and some conceptual and operational problems International Journal of Water Resources Development 31(3) 301ndash311

Andersson E (2006) Urban landscapes and sustainable cities Ecology and Society 11(1) httpsdoiorg105751es-01639-110134

Armitage D Berkes F amp Doubleday N (2010) Adaptive co-management Collaboration learning and multi-level governance Vancouver BC UBC Press

Assadourian E Prugh T amp Starke L (2013) State of the world 2013 Is sustainability still possible Beyond fossil fuels Assessing energy alternatives (15th edpp 172ndash183) Heidelberg Germany Springer

Atkinson G Dubourg R Hamilton K Munasinghe M Pearce D amp Young C (1997) Measuring sustainable development Macroeconomics and the environment (p 3ff) Cheltenham UK Edward Elgar

Ayres R Van den Berrgh J amp Gowdy J (2001) Strong versus weak sustainability Environmental Ethics 23(2) 155ndash168

Baccini P (1996) Understanding regional metabolism for a sustainable development of urban systems Environmental Science and Pollution Research 3(2) 108ndash111

Bahadur A V Ibrahim M amp Tanner T (2013) Characterising resilience Unpacking the con-cept for tackling climate change and development Climate and Development 5(1) 55ndash65

Barnosky A D Hadly E A Bascompte J Berlow E L Brown J H Fortelius M et al (2012) Approaching a state shift in Earthrsquos biosphere Nature 486(7401) 52

Bazilian M Rogner H Howells M Hermann S Arent D Gielen D et al (2011) Considering the energy water and food nexus Towards an integrated modelling approach Energy Policy 39(12) 7896ndash7906

Beck M B amp Walker R V (2013) Nexus security Governance innovation and the resilient city Frontiers of Environmental Science amp Engineering 7(5) 640ndash657

Beddoe R Costanza R Farley J Garza E Kent J Kubiszewski I et al (2009) Overcoming systemic roadblocks to sustainability The evolutionary redesign of worldviews institutions and technologies Proceedings of the National Academy of Sciences 106(8) 2483ndash2489

K Krumme

53

Benedikter A Laumlderach P Eitzinger A Cook S amp Bruni S (2013) Addressing adaptation to support disaster risk reduction A framework for supply chain inclusive adaptation to climate change In Climate change and disaster risk management (pp 513ndash533) Berlin Germany Springer

Berkes F Folke C amp Colding J (2000) Linking social and ecological systems Management practices and social mechanisms for building resilience Cambridge UK Cambridge University Press

Biggs E M Bruce E Boruff B Duncan J M Horsley J Pauli N et al (2015) Sustainable development and the waterndashenergyndashfood nexus A perspective on livelihoods Environmental Science amp Policy 54 389ndash397

Binder C R Absenger-Helmli I amp Schilling T (2015) The reality of transdisciplinarity A framework-based self-reflection from science and practice leaders Sustainability Science 10(4) 545ndash562

Bird K (2015) Neighbourhood sustainability assessment Connecting impact with policy intent Vancouver BC Simon Fraser University

Bossel H (2003) Assessing viability and sustainability A systems-based approach for deriving comprehensive indicator sets In Integrated natural resource management Linking productiv-ity the environment and development (pp 247ndash266) Wallingford UK CABI

Bossel H (2007) Systems and models Complexity dynamics evolution sustainability Norderstedt Germany BoDndashBooks on Demand

Boulay A-M Hoekstra A Y amp Vionnet S (2013) Complementarities of water-focused life cycle assessment and water footprint assessment Environmental Science amp Technology 47 11926

Brandenburg M amp Rebs T (2015) Sustainable supply chain management A modeling perspec-tive Annals of Operations Research 229(1) 213ndash252

Brown E D amp Williams B L (2015) Resilience and resource management Environmental Management 56(6) 1416ndash1427

Brown E Derudder B Parnreiter C Pelupessy W Taylor P J amp Witlox F (2010) World city networks and global commodity chains Towards a world-systems integration Global Networks 10(1) 12ndash34

Bugliarello G (2006) Urban sustainability Dilemmas challenges and paradigms Technology in Society 28(1-2) 19ndash26

Crum M Carter C R amp Easton P L (2011) Sustainable supply chain management Evolution and future directions International Journal of Physical Distribution amp Logistics Management 41(1) 46ndash62


Chopra S S amp Khanna V (2014) Understanding resilience in industrial symbiosis networks Insights from network analysis Journal of Environmental Management 141 86ndash94

Chopra S amp Meindl P (2007) Supply chain management Strategy planning amp operation In Das summa summarum des management (pp 265ndash275) Wiesbaden Germany Gabler

Christopher M (2016) Logistics amp supply chain management (Pearson Higher ed) Harlow UK Pearson

Christopher M amp Peck H (2004) Building the resilient supply chain The International Journal of Logistics Management 15(2) 1ndash14

Chrysoulakis N Lopes M San Joseacute R Grimmond C S B Jones M B Magliulo V et al (2013) Sustainable urban metabolism as a link between bio-physical sciences and urban plan-ning The BRIDGE project Landscape and Urban Planning 112 100ndash117

Clark W C (2007) Sustainability science A room of its own Proceedings of the National Academy of Sciences 104 1737

Clark W C amp Dickson N M (2003) Sustainability science The emerging research program Proceedings of the National Academy of Sciences 100(14) 8059ndash8061


54

Cooper M C Lambert D M amp Pagh J D (1997) Supply chain management More than a new name for logistics The International Journal of Logistics Management 8(1) 1ndash14

Costanza R (2009) Sustainable complexity Trends in Ecology amp Evolution 24(2) 69ndash70Costanza R amp Patten B C (1995) Defining and predicting sustainability Ecological Economics

15(3) 193ndash196Costanza R Daly H E amp Bartholomew J A (1992) Goals agenda and policy recommenda-

tions for ecological economics Ecological Economics 3 1ndash12Costanza R DrsquoArge R De Groot R Farberk S Grasso M Hannon B et al (1997) The

value of the worldrsquos ecosystem services and natural capital Nature 387 253ndash260Costanza R Daly H Cumberland J H Goodland R Norgaard R B Kubiszewski I et al

(2014) An introduction to ecological economics Boca Raton FL CRC PressCostanza R Howarth R B Kubiszewski I Liu S Ma C Plumecocq G et al (2016)

Influential publications in ecological economics revisited Ecological Economics 123 68ndash76Costanza R dArge R De Groot R Farber S Grasso M Hannon B amp Raskin R G (1997)

The value of the worlds ecosystem services and natural capital nature 387(6630) 253Daily G C Polasky S Goldstein J Kareiva P M Mooney H A Pejchar L et al (2009)

Ecosystem services in decision making Time to deliver Frontiers in Ecology and the Environment 7(1) 21ndash28

Daly H E (1997) Georgescu-Roegen versus SolowStiglitz Ecological Economics 22(3) 261ndash266

Daly H E (2005) Economics in a full world Scientific American 293(3) 100ndash107De Groot R S Wilson M A amp Boumansm R M (2002) A typology for the classification

description and valuation of ecosystem functions goods and services Ecological Economics 41(3) 393ndash408

De Groot R S Alkemade R Braat L Hein L amp Willemen L (2010) Challenges in inte-grating the concept of ecosystem services and values in landscape planning management and decision making Ecological Complexity 7(3) 260ndash272

De Vries B J M (2013) Sustainability science Cambridge UK Cambridge University PressDerissen S Quaas M F amp Baumgaumlrtner S (2011) The relationship between resilience and

sustainability of ecological-economic systems Ecological Economics 70(6) 1121ndash1128Derudder B (2009) Worldglobal cities A2mdashThrift Rob Kitchin Nigel International encyclope-

dia of human geography (pp 262ndash268) Oxford UK ElsevierDeutz P amp Ioppolo G (2015) From theory to practice Enhancing the potential policy impact of

industrial ecology Sustainability 7(2) 2259ndash2273Dietz S amp Neumayer E (2007) Weak and strong sustainability in the SEEA Concepts and

measurement Ecological Economics 61(4) 617ndash626Donadoni M Roden S Scholten K Stevenson M Blome C Caniato F Juttner U

Krumme K van Donk D P amp Wieland A (2016) The future of resilient supply chains A Delphi study Paper presented at 23rd EurOMA conference Trondheim Norway 17ndash22 June 2016

Ekins P (2014) Strong sustainability and critical natural capital In Handbook of sustainable development (2nd ed pp 55ndash71) Cheltenham UK Edward Elgar

Ekins P Simon S Deutsch L Folke C amp De Groot R (2003) A framework for the practi-cal application of the concepts of critical natural capital and strong sustainability Ecological Economics 44(2-3) 165ndash185

Elkington J (1997) Cannibals with forks The triple bottom line of the 21st century Stoney Creek CT New Society

Elkington J (2004) Enter the triple bottom line In A Henriques amp J Richardson (Eds) The triple bottom line Does it all add up (pp 1ndash16) London UK Earthscan

Elzen B Geels F W amp Green K (2004) System innovation and the transition to sustainability Theory evidence and policy Cheltenham UK Edward Elgar Publishing

Ercin A E Aldaya M M amp Hoekstra A Y (2011) Corporate water footprint accounting and impact assessment The case of the water footprint of a sugar-containing carbonated beverage Water Resources Management 25(2) 721ndash741

K Krumme

55

Evans J P (2011) Resilience ecology and adaptation in the experimental city Transactions of the Institute of British Geographers 36(2) 223ndash237

Fiksel J (2003) Designing resilient sustainable systems Environmental Science amp Technology 37(23) 5330ndash5339

Fiksel J (2006) Sustainability and resilience Toward a systems approach Sustainability Science Practice amp Policy 2 14

Fiksel J (2015) Design for resilience Resilient by design Creating businesses that adapt and flourish in a changing world (pp 173ndash189) Washington DC Island PressCenter for Resource Economics

Findeisen W Bailey F N Brdys M Malinowski K Tatjewski P amp Wozniak A (1980) Control and coordination in hierarchical systems Chichester UK Wiley

Folke C Hammer M Costanza R amp Jansson A (1994) Investing in natural capitalmdashwhy what and how Investing in Natural Capital The Ecological Economics Approach to Sustainability Island Press Washington DC 1ndash20

Folke C (2006) Resilience The emergence of a perspective for socialndashecological systems analy-ses Global Environmental Change 16(3) 253ndash267

Folke C amp Rockstroumlm J (2009) Turbulent times Global Environmental Change 19(1) 1ndash3Folke C Carpenter S R Elmqvist T Gunderson L Holling C S amp Walker B (2002)

Resilience and sustainable development Building adaptive capacity in a world of transforma-tions Ambio 31(5) 437ndash440

Folke C Carpenter S R Walker B Scheffer M Chapin T amp Rockstrom J (2010) Resilience thinking Integrating resilience adaptability and transformability Ecology and Society 15 20

Forrester J W (1994) System dynamics systems thinking and soft OR System Dynamics Review 10(2-3) 245ndash256

Funtowicz S O amp Ravetz J R (1995) Science for the post normal age Dordrecht Netherlands Springer

Funtowicz S amp Ravetz J R (2003) Post-normal science International Society for Ecological Economics (ed) Online encyclopedia of ecological economics Retrieved from httpwwwecoecoorgpublicaencychtm

Gerbens-Leenes P Hoekstra A amp Van der Meer T (2009) The water footprint of energy from biomass A quantitative assessment and consequences of an increasing share of bio-energy in energy supply Ecological Economics 68(4) 1052ndash1060

Ghai D amp Vivian J M (2014) Grassroots environmental action Peoplersquos participation in sus-tainable development London UK Routledge

Gleick P H amp Cooley H S (2009) Energy implications of bottled water Environmental Research Letters 4(1) 014009

Gunderson L H (2000) Ecological resiliencemdashIn theory and application Annual Review of Ecology and Systematics 31 425ndash439

Gunderson L H (2001) Panarchy Understanding transformations in human and natural sys-tems Washington DC Island Press

Hahn T Schultz L Folke C amp Olsson P (2008) Social networks as sources of resilience in social-ecological systems In Complexity theory for a sustainable future (pp 119ndash148) New York NY Columbia University Press

Hanke T amp Krumme K (2012) Risk and resilience in sustainable supply chain manage-ment conceptual outlines In Proceedings of the Xth International Logistics amp Supply Chain CongressmdashSustainability of International Logistics Systems and Supply Chains in the Era of Global Crisis Istanbul 2012 (pp 379ndash388)

Harris N (1994) The emerging global city Transport Cities 11(5) 332ndash336Hegger D Lamers M Van Zeijl-Rozema A amp Dieperink C (2012) Conceptualising joint

knowledge production in regional climate change adaptation projects Success conditions and levers for action Environmental Science amp Policy 18 52ndash65

Hjorth P amp Bagheri A (2006) Navigating towards sustainable development A system dynamics approach Futures 38(1) 74ndash92


56

Hoekstra A Y (2014) Water scarcity challenges to business Nature Climate Change 4(5) 318ndash320

Hoekstra A Y amp Wiedmann T O (2014) Humanityrsquos unsustainable environmental footprint Science 344(6188) 1114ndash1117

Hoff H (2011) Understanding the nexus background paper for the Bonn2011 Conference The water energy and food security nexus Stockholm Sweden Stockholm Environment Institute

Holling C S (1973) Resilience and stability of ecological systems Annual Review of Ecology and Systematics 4 1ndash23

Huang W Cui S Yarime M Hashimoto S amp Managi S (2015) Improving urban metabolism study for sustainable urban transformation Environmental Technology amp Innovation 4 62ndash72

Hugos M H (2018) Essentials of supply chain management Hoboken NJ WileyHuijbregts M A Hellweg S Frischknecht R Hendriks H W Hungerbuumlhler K amp Hendriks

A J (2010) Cumulative energy demand as predictor for the environmental burden of com-modity production Environmental Science amp Technology 44(6) 2189ndash2196

Jackson T amp Senker P (2011) Prosperity without growth Economics for a finite planet Energy amp Environment 22(7) 1013ndash1016

Jonker J Stark W amp Tewes S (2011) Corporate Social Responsibility und nachhaltige Entwicklung Einfuumlhrung Strategie und Glossar Berlin Germany Springer Verlag

Juumlttner U amp Maklan S (2011) Supply chain resilience in the global financial crisis An empiri-cal study Supply Chain Management An International Journal 16(4) 246ndash259

Kajikawa Y (2008) Research core and framework of sustainability science Sustainability Science 3(2) 215ndash239

Kajikawa Y Tacoa F amp Yamaguchi K (2014) Sustainability science The changing landscape of sustainability research Sustainability Science 9(4) 431ndash438

Kalmykova Y Rosado L amp Patricio J (2015) Urban economies resource productivity and decoupling Metabolism trends of 1996-2011 in Sweden Stockholm and Gothenburg Environmental Science amp Technology 49(14) 8815ndash8823

Kasemir B (2003) Public participation in sustainability science A handbook Cambridge UK Cambridge University Press

Kates R W (2011) What kind of a science is sustainability science Proceedings of the National Academy of Sciences 108(49) 19449ndash19450

Kates R W Clark W C Corell R Hall J M Jaeger C C Lowe I et al (2001) Sustainability science Science 292(5517) 641ndash642

Kates R W Parris T M amp Leiserowitz A A (2005) What is sustainable development Goals indicators values and practice Environment 47(3) 8ndash21

Kay J J Regier H A Boyle M amp Francis G (1999) An ecosystem approach for sustainabil-ity Addressing the challenge of complexity Futures 31(7) 721ndash742

Kemp R Loorbach D amp Rotmans J (2007) Transition management as a model for man-aging processes of co-evolution towards sustainable development International Journal of Sustainable Development amp World Ecology 14(1) 78ndash91

Kestemont B (2010) Les indicateurs de deacuteveloppement durable Fondements et applications Indicators of sustainable development Fundamentals and applications (p 256) Brussels Belgium IGEAT Universiteacute libre de Bruxelles

Kestemont B (2015) The conditions for strong sustainability CosmopolismdashA Review of Cosmopolitics 1 35ndash43

Komiyama H amp Takeuchi K (2006) Sustainability science Building a new discipline Sustainability Science 1(1) 1ndash6

Korhonen J amp Seager T P (2008) Beyond eco-efficiency A resilience perspective Business Strategy and the Environment 17(7) 411ndash419

Korhonen J amp Snaumlkin J-P (2015) Quantifying the relationship of resilience and eco-efficiency in complex adaptive energy systems Ecological Economics 120 83ndash92

Krumme K (2012) Logistics and sustainability Unseparably linked In Xth International Logistics amp Supply Chain Congress Sustainability of International Logistics Systems and Supply Chains in the Era of Global Crisis Istanbul 08ndash09 November 2012

K Krumme

57

Krumme K (2016) Sustainable development and social-ecological-technological systems (SETS) Resilience as a guiding principle in the urban-industrial nexus Journal of Renewable Energy and Sustainable Development 2(1) 70

Krumme K Noche B Hoene A amp Wang N (2011) Global-demographischer Wandel - Perspektivierungen vom Standpunkt der Logistik In Deutscher Logistik Kongress Berlin Germany Bundesvereinigung Logistik (BVL)

Krumme K Schmidt I Meyer N amp Pratt N (2015) ILoNamdashInnovative Logistik fuumlr Nachhaltige Lebensstile Konzeptpapier zum Forschungsprojekt Universitaumlt Duisburg-Essen httpsdoiorg1017185duepublico46330

Kunreuther H (2006) Risk and reaction Harvard International Review 28(3) 37ndash42Koumlyluumloglu G Krumme K (2015) Kriterienfindung fuumlr nachhaltige Geschaumlftsprozesse

in der LogistikmdashEine Aufarbeitung bestehender Probleme und moumlglicher Chancen In Corporate Social Responsibility in der Logistikbranche Anforderungen an eine Nachhaltige Unternehmensfuumlhrung Erich Schmidt Verlag Berlin Germany

Lafferty W M (2006) Governance for sustainable development The challenge of adapting form to function Cheltenham UK Edward Elgar Publishing

Lang D J Wiek A Bergmann M Stauffacher M Martens P Moll P et al (2012) Transdisciplinary research in sustainability science Practice principles and challenges Sustainability Science 7(1) 25ndash43

Levermann A (2014) Climate economics Make supply chains climate-smart Nature 506(7486) 27ndash29

Lieb K J amp Lieb R C (2010) Environmental sustainability in the third-party logistics (3PL) industry International Journal of Physical Distribution amp Logistics Management 40(7) 524ndash533

Liu J Mooney H Hull V Davis S J Gaskell J Hertel T et al (2015) Systems integration for global sustainability Science 347(6225) 1258832

Loorbach D amp Wijsman K (2013) Business transition management Exploring a new role for business in sustainability transitions Journal of Cleaner Production 45 20ndash28

Linton J D Klassen R amp Jayaraman V (2007) Sustainable supply chains An introduction Journal of operations management 25(6) 1075ndash1082

Martinet V amp Rotillon G (2007) Invariance in growth theory and sustainable development Journal of Economic Dynamics and Control 31(8) 2827ndash2846

Matten D amp Crane A (2005) Corporate citizenship Toward an extended theoretical conceptu-alization Academy of Management Review 30(1) 166ndash179

Matten D amp Moon J (2008) ldquoImplicitrdquo and ldquoexplicitrdquo CSR A conceptual framework for a com-parative understanding of corporate social responsibility Academy of Management Review 33(2) 404ndash424

Meadows D H amp Wright D (2008) Thinking in systems A primer White River Junction Chelsea Green Publishing

Mesarovic M D Takahara Y amp Macko D (1970) Theory of hierarchical multilevel systems New York NY Academic Press

Miller M Anderson M Francis C A Kruger C Barford C Park J et al (2013) Critical research needs for successful food systems adaptation to climate change Journal of Agriculture Food Systems and Community Development 3(4) 161ndash175

Neumayer E (2003) Weak versus strong sustainability Exploring the limits of two opposing paradigms Cheltenham UK Edward Elgar

Newman P W G (1999) Sustainability and cities Extending the metabolism model Landscape and Urban Planning 44(4) 219ndash226

Newman P (2006) The environmental impact of cities Environment and Urbanization 18(2) 275ndash295

Newman P amp Jennings I (2012) Cities as sustainable ecosystems Principles and practices Washington DC Island Press

Norton B G (2005) Sustainability A philosophy of adaptive ecosystem management Chicago IL University of Chicago Press


58

Oliver R K amp Webber M D (1982) Supply-chain management Logistics catches up with strategy In M L Christopher (Ed) Logistics The strategic issues (pp 63ndash75) London UK Chapman amp Hall

Olsson P Galaz V amp Boonstra W J (2014) Sustainability transformations A resilience per-spective Ecology and Society 19(4) httpsdoiorg105751es-06799-190401

Ostrom E (2009) A general framework for analyzing sustainability of social-ecological systems Science 325(5939) 419ndash422

Paloviita A (2015) 16 food processing companies retailers and climate-resilient supply chain management In Climate Change Adaptation and Food Supply Chain Management (Vol 194) London UK Routledge

Pelenc J amp Ballet J (2015) Strong sustainability critical natural capital and the capability approach Ecological Economics 112 36ndash44

Perrings C amp Walker B (2004) Conservation in the optimal use of rangelands Ecological Economics 49(2) 119ndash128

Pettit T J Fiksel J amp Croxton K L (2010) Ensuring supply chain resilience Development of a conceptual framework Journal of Business Logistics 31(1) 1ndash21

Pincetl S Bunje P amp Holmes T (2012) An expanded urban metabolism method Toward a systems approach for assessing urban energy processes and causes Landscape and Urban Planning 107(3) 193ndash202

Rasul G amp Sharma B (2015) The nexus approach to waterndashenergyndashfood security An option for adaptation to climate change Climate Policy 16 682ndash702

Ravetz J (2000) Integrated assessment for sustainability appraisal in cities and regions Environmental Impact Assessment Review 20(1) 31ndash64

Ravetz J R (2006) Post-Normal Science and the complexity of transitions towards sustainability Ecological Complexity 3(4) 275ndash284

Rees W E (1997) Urban ecosystems The human dimension Urban Ecosystems 1(1) 63ndash75Rees W E (2003) Understanding urban ecosystems An ecological economics perspective In

Understanding urban ecosystems (pp 115ndash136) New York NY SpringerRees W amp Wackernagel M (1996) Urban ecological footprints Why cities cannot be sustain-

ablemdashand why they are a key to sustainability Environmental Impact Assessment Review 16(4-6) 223ndash248

Rockstrom J amp Klum M (2015) Big world small planet Abundance within planetary boundar-ies New Haven CT Yale University Press

Rockstroumlm J Steffen W Noone K Persson Aring Chapin F S Lambin E F et al (2009) A safe operating space for humanity Nature 461(7263) 472ndash475

Roseland M (1997) Dimensions of the eco-city Cities 14(4) 197ndash202Roseland M amp Fontaine D (2017) Ensuring a strong sustainability approach In The Routledge

handbook of community development Perspectives from around the globe New York NY Routledge

Sassen S (2009) Human settlement development The central role of cities in our environmentrsquos future-constraints and possibilities In Human settlement development (Vol 4) Oxford UK Eolss Publishers

Sassen S (2010) Global inter-city networks and commodity chains Any intersections Global Networks 10(1) 150ndash163

Scott C A Kurian M amp Wescoat Jr J L (2015) The water-energy-food nexus Enhancing adaptive capacity to complex global challenges Governing the nexus (pp 15ndash38) Cham Switzerland Springer

Seuring S amp Muumlller M (2008) From literature review to a conceptual framework for sustainable supply chain management Journal of Cleaner Production 16(15) 1699ndash1710

Sheffi Y amp Rice Jr J B (2005) A supply chain view of the resilient enterprise MIT Sloan Management Review 47(1) 41

Sheffi Y Vakil B amp Griffin T (2012) Risk and disruptions New software tools Retrieved from httpwebmitedusheffiwwwdocumentsRisk_and_Disruptions_V9pdf

K Krumme

59

Simchi-Levi D Simchi-Levi E amp Kaminsky P (1999) Designing and managing the supply chain Concepts strategies and cases New York NY McGraw-Hill

Simchi-Levi D Kaminsky P amp Simchi-Levi E (2008) Designing and managing the supply chain New York NY McGraw-Hill

Smajgl A Ward J amp Pluschke L (2016) The waterndashfoodndashenergy nexusmdashRealising a new paradigm Journal of Hydrology 533 533ndash540

Sohofi S A Melkonyan A Karl C K amp Krumme K (2016) System archetypes in the con-ceptualization phase of water-energy-food nexus modeling In Double Peer-reviewed confer-ence proceedings of the 34th International Conference of the System Dynamics Society Delft Netherlands July 17ndash21

Solow R M (1997) Reply Georgescu-Roegen versus SolowStiglitz Ecological Economics 22(3) 267ndash268

Souren R (2000) Umweltorientierte Logistik In H Dyckhoff (Ed) Umweltmanagement Zehn Lektionen in umweltorientierter Unternehmensfuumlhrung Berlin Springer-Verlag

Steffen W Richardson K Rockstroumlm J Cornell S E Fetzer I Bennett E M et al (2015) Planetary boundaries Guiding human development on a changing planet Science 347(6223) 1259855

Sterman J D (2012) Sustaining sustainability Creating a systems science in a fragmented acad-emy and polarized world In Sustainability science (pp 21ndash58) New York NY Springer

Stiglitz J E (1997) Georgescu-Roegen versus SolowStiglitz - Reply Ecological Economics 22 269ndash270

Taylor P J amp Csomoacutes G (2012) Cities as control and command centres Analysis and interpre-tation Cities 29(6) 408ndash411

Tompkins E amp Adger W N (2004) Does adaptive management of natural resources enhance resilience to climate change Ecology and Society 9(2) 10

Tukamuhabwa B R Stevenson M Busby J amp Zorzini M (2015) Supply chain resilience Definition review and theoretical foundations for further study International Journal of Production Research 53(18) 5592ndash5623

Tuumlrkay M Saraccediloğlu Ouml amp Arslan M C (2016) Sustainability in supply chain management Aggregate planning from sustainability perspective PLoS One 11(1) e0147502

Vojnovic I (2014) Urban sustainability Research politics policy and practice Cities 41(Supplement 1) 30ndash44

Wackernagel M Kitzes J Moran D Goldfinger S amp Thomas M (2006) The ecological foot-print of cities and regions Comparing resource availability with resource demand Environment and Urbanization 18(1) 103ndash112

Walker B Holling C S Carpenter S R amp Kinzig A (2004) Resilience adaptability and transformability in social-ecological systems Ecology and Society 9(2) 5

Walker B Gunderson L Kinzig A Folke C Carpenter S amp Schultz L (2006) A handful of heuristics and some propositions for understanding resilience in social-ecological systems Ecology and Society 11 13

Walker R V Beck M B Hall J W Dawson R J amp Heidrich O (2014) The energy-water- food nexus Strategic analysis of technologies for transforming the urban metabolism Journal of Environmental Management 141 104ndash115

Weizsaumlcker E U (2009) Neuausrichtung des technischen Fortschritts In Zukunftsforschung und Zukunftsgestaltung (pp 501ndash506) Berlin Germany Springer

Wiedmann T Minx J Barrett J amp Wackernagel M (2006) Allocating ecological footprints to final consumption categories with inputndashoutput analysis Ecological Economics 56(1) 28ndash48

Wiek A Binder C amp Scholz R W (2006) Functions of scenarios in transition processes Futures 38(7) 740ndash766

Wiek A Withycombe L amp Redman C L (2011) Key competencies in sustainability A refer-ence framework for academic program development Sustainability Science 6(2) 203ndash218

Wiek A Ness B Schweizer-Ries P Brand F S amp Farioli F (2012) From complex systems analysis to transformational change A comparative appraisal of sustainability science projects Sustainability Science 7(1) 5ndash24


60

Wieland A amp Wallenburg C M (2013) The influence of relational competencies on supply chain resilience A relational view International Journal of Physical Distribution amp Logistics Management 43(4) 300ndash320

World Commission on Environment and Development (1987) Our common future New York NY Oxford University Press

Xu L Marinova D amp Guo X (2014) Resilience thinking A renewed system approach for sustainability science Sustainability Science 10(1) 123ndash138

Zhu J amp Ruth M (2013) Exploring the resilience of industrial ecosystems Journal of Environmental Management 122 65ndash75

K Krumme

Part IIChallenges in Logistics and SCM Trends

in the Sector Considering Consumer Lifestyles


Chapter 3Leverage Points for Sustainable Innovative Logistics Considering Consumer Lifestyles

Rosa Strube and Thomas Wagner

Abstract This article addresses the interrelations between the perpetual growth of the logistics industry and logistics services on the one hand and changing consump-tion behaviors and lifestyles on the other More specifically we look at how con-sumption patterns can influence the development and expansion of sustainable logistics structures and services along the supply chain of products found in conven-tional grocery stores and fashion products distributed through online retailingThrough horizon scanning and qualitative expert interviews we developed potential approaches for increasing sustainability in the logistics industry with respect to con-sumption behaviors Integrating logistics into the ldquocontainerrdquo of sustainability inte-grating (more) sharing economy elements into logistics services and taking advantage of existing areas of consumer awareness such as regional products for promoting sustainable logistics to end users are only some examples for potential approaches

Keywords Logistics trends middot Sustainable production and consumption middot Societal changes middot Stationary and online retail middot Prosumerism middot Sharing economy middot Consumer awareness

Introduction

Over the past years Europe and Germany have experienced a perpetual growth of the logistics sector a trend which is expected to continue in the upcoming years (Doll et al 2014) The continuous efforts of industry actors to offer innovative ser-vices to consumers such as same-day delivery or last-mile delivery through new digital or connected approaches are influenced by and at the same time shape citi-zensrsquo lifestyles (Joerss et al 2016) Taking this into account it becomes

R Strube () middot T Wagner Collaborating Centre on Sustainable Consumption and Production (CSCP) Wuppertal Germanye-mail rosastrubescp-centreorg

64

increasingly clear that a number of these developments are counteracting the paral-lel efforts of making the logistics industry and logistics services socially and envi-ronmentally more sustainable

In this article we will identify leverage points within the context of (sustainable consumer) lifestyles that hold the potential to contribute to more sustainable logis-tics and logistics services Furthermore we will elaborate on their challenges and opportunities for implementation

The backbone of this study is the observation of the (inter)relationship and recip-rocal influence of consumers and their lifestyles including consumption patterns and trends and the logistics industry More specifically the study reveals how developments on the consumer level can enable or inhibit the implementation and promotion of sustainable logistics models (Krumme et al 2015)

The article is structured as follows First the article presents the current state of research and the research question This is followed by a section on methodology and findings where the horizon scanning and trend analysis with relevance to life-styles and consumption as well as logistics and the results of qualitative expert interviews are presented The fourth section derives conclusions from the findings and section ldquoRecommendations and Outlookrdquo provides recommendations and an outlook

Theoretical Background and Research Question

Nowadays lifestyles are closely related to and dependent on modern logistics ser-vices (Krumme et al 2015) This applies in general to all daily life activities and in particular to developments in the consumption system In this paper lifestyles are defined as patterns of consumption and action that people use to be similar or differ-ent from others Sustainable lifestyles aim to meet basic needs provide a better quality of life minimize the use of natural resources and emissions of waste and pollutants over life cycles and do not endanger the needs of future generations Sustainable lifestyles reflect the specific cultural natural economic and social heri-tage of each society (Mont 2007) Enabling sustainable lifestyles also depends to a significant extent on the perception and management of the interdependencies between consumer behavior and the logistics sector

Logistics services are continuously expanded and coordinated according to demand and supply quantities and timing of goods services andor persons in the areas of production (in the company) transport handling and storage (by logistics service providers) consumption (by individuals) and disposalrecycling In the pro-cess the logistics service provider is taking on an increasingly comprehensive range of servicesmdashright up to the overall planning of supply systems in terms of the con-figuration and coordination of supply chain partners partial production steps assembly returns and warranties (Gleissner and Femerling 2013 Skender et al 2016 Sheffi and Klaus 1997)

R Strube and T Wagner

65

Consequently today the role of logistics is seen as a decisive determinant of value creation networks In the last 15 years the integration of logistics services into various business operations has proven to be the ldquoenablerrdquo of many unsustainable side effects arising from these operations (Krumme and Nagel 2012) Customer demands are seen as a driver of complexity since changing consumer habits are reflected in an increasing demand for electronic and mobile commerce and the desire for new products at ever shorter intervals (BVL 2014) At the same time new logistics developments are also triggering new waves of consumption not only serving them The relationship between Internet trade and delivery services right up to the doorstep which have led to the atomization of shipment sizes and consider-able increases in (urban) freight traffic in recent years should be mentioned here above all Globally modern logistics also enables the operationalization of cost- efficient global supply networks spanning from the procurement of resources and their processing to the mostly Western end users of products Considerable spatial distances result in high emissions and resource consumption which is just as unsus-tainable as the working conditions and social structures enabling this cost efficiency in global value creation networks (Zink et al 2012)

At the same time the logistics industry will suffer from the effects of ecological crises when resources become scarcer and fuel costs rise This will be accompanied by a significant rise in emissions above all due to the global distribution of work Due to the divergence between the forecasted increase in resource consumption and the pressing need to reduce consumption there is an increasing pressure to act (SRU 2012) in order to be able to prevent considerable economic disadvantages in addi-tion to various ecological consequences

Social issues with regard to logistics services are also becoming increasingly important These include for example issues such as working (safety) and earning conditions which are being questioned following recent scandals and public debates about manufacturersrsquo and retailersrsquo business relations with the logistics industry It is therefore not only a social but also an economic and macroeconomic necessity for the logistics sector to deal with the transformation to a sustainable society and econ-omy in an innovative way (Clausen et al 2016) The mitigation of effects and the prevention andor reduction of logistical bottlenecks and economic losses can be achieved through timely adaptation to changing conditions

Beyond this adjustment perspective logistics can be understood (proactively) as a system configurator of comprehensive economic systems which significantly (co-)shapes and (co-)influences the value creation processes (Krumme et al 2015) Other areas of action that go beyond reaction and address logistics as a shaping force for sustainable socioeconomic contexts are also relevant eg information management for supply chain transparency right up to and for the end consumer This also includes waste disposalrecycling as well as quality and value manage-ment for supply chain integrity (social and ecological integrity along the entire sup-ply chain (Carter and Easton 2011 Carter and Rogers 2008)

3 Leverage Points for Sustainable Innovative Logistics Considering Consumer Lifestyles

66

Research Question

Necessary systemic changes cannot originate solely from the logistics sector but must also be supported and demanded by society The demand for ever more flexi-ble individualized and complex logistics solutions which usually inevitably gener-ate an increased consumption of resources is a consequence of increasingly demanded product variety and complexity as well as decreasing tolerance for deliv-ery time and decreasing product life spans Moreover the developments toward individualization and e-commerce which are resizing the demands on logistics and are massively increasing logistics volumes overall are being clearly observed

Consequently this article is devoted to the question

What are the leverage points for sustainable and innovative logistics services that take changing consumer lifestyles into account

Research Focus

The food and fashion sectors were selected for this analysis because of their differ-ent characteristics mostly business-to-business (B2B) operations in the food sector and business-to-consumer (B2C) operations for online fashion retail These sectors were chosen in order to identify as many approaches as possible for sustainable logistics and because consumers engage within these sectors frequently in their day- to- day activities While the food sector especially in Germany is still characterized by last-mile logistics organized largely via stationary retail the fashion sector was one of the pioneering sectors for e-commerce (Ronald et al 2004)

Stationary Food Retail

This article analyzes challenges and opportunities for more sustainable logistics services along the supply chain of food products that consumers buy in supermar-kets The last mile between the supermarket and the place where the consumer lives is left out of the study as the sustainability implications are so strongly dependent on the settlement structures as well as on the choice of transport means and routes of the consumer that the logistics services themselves would be pushed into the background (Mottschall 2014)

Fashion E-commerce

The second focus area of this article is the last mile between online retailers and consumers for textile products The discussion as to whether online shopping or stationary shopping is more sustainable has been addressed excessively elsewhere


67

(cf DCTI 2015 Mottschall 2014 Edwards et al 2009) It is not included here as the focus is merely on potential for improvement within online retailing

Methodology and Findings

Methodology

In this study we have deployed a dual methodological approach Initially a horizon scanning exercise on trends and the interaction of lifestyles and logistics were con-ducted Horizon scanning is a literature research process which happens at the mar-gins of the known environment and in some cases extends beyond it aiming to identify emerging issues and future events including their respective opportunities and threats (Loveridge 2009 Koumlnnoumllauml et al 2012)

The results of the horizon scanning formed the basis for the design of the second research methodology namely semi-structured qualitative interviews Besides a short introduction to the research field and questions the interview guideline included questions on the likelihood of future trends to influence consumer choices and activities of the logistics sector the perceived sustainability hot spots resulting from logistics services consumer awareness on these challenges as well as ques-tions related to possible approaches to address these challenges The interviews were semi-structured giving the interviewer enough freedom to adopt the guideline to the expertise of the interviewee The interviews were conducted via phone and lasted about 1 h each Thirteen interviewees from Germany (the main focus of the study) and Europe were selected against the criteria of their expertise on sustainable consumer lifestyles and logistics Such a qualitative approach was chosen as being best suited to generate an explorative basis of further work in the little-researched interaction between sustainable logistics services and sustainable consumer behav-ior (Diekmann 2007 Mayring 2003) The expert interviews are marked with the abbreviations E1ndashE13 in the following text The interview guide for the semi- structured interviews can be found in the appendix

Findings of the Trend Review

The trend analysis outcome gathers the most important global and national trends that describe potential developments in lifestyles and consumption patterns mostly for the case of Germany and logistics services It also illustrates the potential to change and influence the narrative and interaction between consumers and logistics industry actors According to the review general societal and technological trends consumer trends trends in online trade and the sharing economy influence both current and future consumer behavior and logistics services


68

Societal Trends

Demographic change and fluctuations in population figures are expected to occur in the upcoming years their extent depending on the region In Germany the popula-tion is expected to decline sharply While there were 82 million citizens living in the country in 2012 this number will probably be reduced to 77 million by 2030 This trend is particularly evident in the rapidly shrinking group of under-20-year-olds while the group of over-65-year-olds will continue to expand as will life expec-tancy (Zweck et al 2015b) Recent immigration developments have reversed this trend but it cannot be said at present whether this heralds a turnaround (Zeit Online 2015) Logistics service providers must develop offers to meet the needs of different age groups

Urbanization is a global megatrend that is also evident in Germany While 73 of Europersquos population lived in cities in 2011 the proportion is expected to rise to 77 in 2030 (Grosm and Alcidi 2013) In the future cities will be the stage on which many of the most important decisions on future affairs such as the environ-ment sustainability or social cohesion will take place In cities social economic and technical solution strategies are tested and radiate back to the more rural areas For sustainable logistics this presents opportunities and challenges for adaptively efficient logistics systems both in growing cities and in rural areas with shrinking populations

An increasing awareness of sustainability among the German population is reflected in changing patterns of mobility These will be characterized by a more frequent abandonment of motorized forms of transport the increased use of cars and bicycles with electric drive for shared use as well as the use of the railway for inner-German routes In the future air travel will generally be linked to climate compensation payments (Zweck et al 2015b) This shift in mobility patterns affects among other things the last-mile consumersrsquo travel between the point-of-sale of products and their homes

Technological Trends

Smartphones have spread rapidly among German consumers within a very short time With different apps different services can be used combining spatial localiza-tion with other smart mechanisms such as user ratings or purchase recommenda-tions (Innoz 2012)

Digitization can also provide different new impulses with regard to future supply chains For example a logistics service provider could place greater emphasis on the service component by taking over some of the manufacturerrsquos value-added stages In the logistics center individual adjustments to the physical product could still be made shortly before the actual delivery to the end customer (Zweck et al 2015b)

In road traffic information technology can contribute to increased efficiency through networking and smart traffic management The most relevant future trends


69

in relation to this research topic are autonomous driving and traffic flow optimiza-tion IT services in and for vehicles new vehicle concepts and drive technologies multimodal transport and logistics and the Internet of Things (Zweck et al 2015b) The Internet of Things enables digital networking of various objects relevant to logistics such as the delivery vehicle or delivery drone with the mailbox or even the trunk of the recipient of a delivery

One of the most debatable technological inventions of recent years the UAVs (unmanned uninhabited or unpiloted aerial vehicles) colloquially called ldquodronesrdquo is unmanned aircraft that can be controlled remotely They are becoming ever easier to build and operate and are increasingly used both in the commercial sector and by amateurs (Fuhrmann and Horowitz 2017) With regard to logistics services new business models for UAV-based services such as delivery services are possible and are already being tested (Zweck et al 2015b)

Consumer Trends

Environmental issues are less topical in society according to the UBArsquos (2014) envi-ronmental awareness study Only 19 of respondents participating in this study cited environmental degradations as one of the most important problems at present In the ranking of the individual policy areas environmental protection thus remains in midfield (UBA 2015) Nevertheless for many people questions concerning the environment are a natural part of their everyday consciousness and they are aware of the long-term relevance of environmental issues For more than nine out of ten respondents it is important to live in a way that makes them feel at peace with the environment even if environmental protection is accompanied by certain restric-tions on their material living standards (UBA 2015) This fundamental environmen-tal awareness can form a good basis for an awareness of the sustainability relevance of logistics

In the food sector there is an increase in demand for finished and convenience products in Germany The increase in consumption of frozen products is primarily due to lifestyle and health aspects (MacDougall 2016) The general food purchasing patterns also show that prices are losing relevance while factors such as freshness origin and quality of the products are given greater weight (UBA 2014)

The digitalization has enabled consumers to have more access to information about the sustainability performance of offers and providers The increasing usage and demand for this kind of information come not only from consumers but also from a range of other parties and it has led to improved transparency and traceabil-ity of products for example those found in the food market This has brought about an array of labels awards or other certification schemes which are often difficult to understand and judge in terms of their credibility (UBA 2014)

Social innovations in different areas of life complement technical innovations and increase the potential of finding solutions for society as a whole In addition there are new business models and value creation structures such as prosumerism that lead to new actors and spatial structures (eg through 3D printing) (Zweck


70

et al 2015a) The term prosumerism describes the phenomenon that consumers are more involved in the development of products than before whether through increased communication or the use of Web 20 technologies This trend will inten-sify in the coming years in various areas of consumption (UBA 2014) Prosumerism is particularly pronounced in the emergence and use of 3D printers through which consumers can become producers of a wide variety of goods

Sharing Economy

In recent years joint forms of consumption under terms such as ldquosharing economyrdquo or ldquoaccess rather than possessrdquo have gained an importance Against the background of changing technological conditions and a reassessment of (im)material values joint consumption will become more accessible to a broader section of the popula-tion (Heinrichs and Grunenberg 2012)

Sharing can be practiced between different actors between an enterprise and another enterprise (ldquobusiness-to-businessrdquo ldquoB2Brdquo) between enterprises and private individuals (ldquobusiness-to-consumerrdquo ldquoB2Crdquo) or between private individuals (ldquopeer-to-peerrdquo ldquoP2Prdquo) (Demary 2015)

While the topic receives a lot of media attention its implementation varies While almost 34 of the German population have privately lent or borrowed items and more than 13 have lent items for a fee so far only 14 have had experience with the rental of bicycles and 4 with car-sharing offers while expressing an inter-est to use these offers in the future (UBA 2015) Seventy-nine percent of 14- to 25-year-olds state that sharing concepts as an alternative to individual consumption can contribute to a good life (UBA 2015)

The challenge of this trend for a later evaluation lies in the fact that only few reli-able findings are available on the actual economic social and ecological effects and possible perspectives of this new economy of sharing (Scholl et al 2015) This problem is also reflected at the level of existing indicators for the evaluation of tra-ditional companies which is not suitable for assessing the sustainability effects of sharing economy approaches (Friedrich and Helmig 2016)

Sharing economy approaches also include alternative logistics concepts such as peer-to-peer delivery or transport of goods New business models that no longer aim at selling but rather aim at renting goods can also change the logistics required for textiles ordered on the Internet (Plos van Amstel 2014)

Online Retailing

Online shopping is widespread among all age groups With a 9 market share of total retail trading online retail was already prominent in 2014 Parallelly the mar-ket share of pure offline business models is declining When choosing online prod-ucts almost three-quarters of consumers read the reviews of other customers on the Internet (KPMG 2012 BITKOM 2013) Consumers in Germany are increasingly


71

shifting their purchasing habits to the Internet especially for products in the infor-mation and communication technology sector but also more and more for fashion A decline of this trend is unthinkable for the majority of users (DCTI 2015) While in Great Britain for example 5 of food is already purchased online this figure is significantly lower for Germany (Wagner and Wiehenbrauk 2014) Yet it is assumed that the trend toward online food shopping will also spread in Germany

The increase in online retail is accompanied by a number of developments The range of products that can be ordered online is increasing rapidly In most cases the product life cycles are shortened Finally delivery times in online retail are getting shorter (BVL 2014) These developments are also due to mobile commerce ie shopping via tablets and smartphones

Another trend in online retail is the development of multichannel concepts that combine the advantages of stationary retail with the advantages of the online world In concrete terms this enables consumers to order goods on the Internet and collect them from shops to return goods delivered to their homes or to check on the Internet whether certain products are in stock (KPMG 2012)

Findings of the Expert Interviews on Lifestyles and Sustainable Logistics

The expert interviews provide research results in a field that is little researched namely the interaction between sustainable logistics services and sustainable con-sumer behavior In addition the interview results serve as the basis for the identifi-cation of and elaboration on the key leverage points of change described in the discussion section of this article The results of the expert interviews are summa-rized below

Stationary Retailing

According to the experts the challenge for sustainable logistics services in consid-eration of lifestyles for stationary retail starts with the spatial conditions of the storersquos location and extends to the packaging of the products As shown by the trends the German population is increasingly moving to the cities while rural regions are struggling with a decline in population (Zweck et al 2015b) The inter-views showed that population shifts reduce consumption opportunities in rural areas which then require additional transport and further journeys to more distant cities (E1) Furthermore the former decentralized structure of the stationary retail is increasingly replaced by central structures of large chains (E1) The transport of goods to retailers is seen as another hot spot (E2 E3 E4) especially if the transport is shifted more to the road (E2) although the logistics along the supply chain is seen as already quite optimized (E5) The transport of food over long distances (E6) and by air is particularly critical (E3)


72

The outsourcing of production steps to countries with a less stringent implemen-tation of workersrsquo rights also entails a higher risk of socially unfair production methods and a disregard for human rights (E7) Stationary retail stores are also a hot spot as they consumed large amounts of energy (E8 E4 E3) primarily through cooling and lighting According to the experts the so-called last mile ie the dis-tance consumers travel from the place of purchase to their homes exceeds other logistics processes in terms of ecological impact If this distance is covered by car the climate effects are high depending on the length of the journey (E8 E4 E6 E9) At the product level itself packaging is seen as a critical area for environmental sustainability especially as consumers have no possibility of reducing it in most cases (E2)

Online Retailing

The challenges for sustainable logistics services for online retail cover some similar issues but also go beyond the ones relevant for stationary retailing

In rural areas experts believe that e-commerce makes up for the shortcomings in stationary retail structure However this would be accompanied by an increase in ecological pollution (E1) Since online retail is always in competition with local retailers it could also contribute to damage what is left of the stationary retail struc-ture (E7)

According to the experts the volume of goods transported due to online retail is constantly increasing This results in additional transport and traffic in the cities The higher delivery volume also leads to increased noise pollution of local residents and the blocking of entrances and cycle paths (E2 E8 E4 E3) Since online mer-chants usually prominently offer the option of receiving delivery within 24 h while the bundling of orders is communicated in a less prominent manner additional trips and deliveries are often necessary (E5)

Like stationary retail the experts regard the last mile as one of the most impor-tant hot spots for online shopping In this case the last mile can be covered by the logistics provider or the customer depending on the type of delivery or as in the case of packing stations by both The negative effects are primarily emissions from traffic (E3) Delivery to the front door or the collection by the customer at a pick-up location should also be assessed differently depending on the means of transport chosen the distance and the combination of different routes (E10 E1)

The experts point out that the inhibition threshold for online shopping is proba-bly lower which leads to an increase in consumption (E3 E2) Another issue men-tioned is the possibility and the likelihood of returning ill-fitting goods bought online (E4) This leads to another major challenge namely the quantity of returns and the resulting additional transport routes as well as the loss in product value (E1 E2 E6) With regard to textiles the situation is even more critical as the product group is not well suited for online trade because size and fit for example cannot be determined well (E3)


73

Like stationary retail packaging and additional packaging materials are rated as another hot spot in online retailing too (E2 E4)

Consumer Awareness About Environmental and Social Impacts of Logistics Services

According to the experts consumersrsquo overall awareness toward the sustainability of logistics services is rather low (E10 E4 E7) While some consumers consider sus-tainability as a criterion when choosing a product aspects such as ldquoorganicrdquo ldquosea-sonalrdquo or ldquoregionalrdquo are more important (E8) Logistics is rather hidden as a topic (E2) One interviewee highlighted that studies had also shown that consumers did not consider the different elements of sustainability individually but rather under-stood the sustainability of products as an overall concept This could lead them to assume that all aspects of a product including logistics are sustainable if the prod-uct is sustainable in one aspect (E10) However the experts also indicated that awareness about the sustainability of logistics services has increased over the years

In comparison to previous years the experts observe that consumers are becom-ing increasingly aware of the sustainability of logistics services This is due to awareness about the distances products travel from their place of production to the retailer shelves on the one hand and to increased knowledge about the different logistics services offered by numerous retailers on the other (E8 E3 E9 E4)

The topic of logistics is considered most strongly when it comes to the aspect of regionality The focus here is on the short transport routes products travel from their origin to the store Awareness of regionality is more pronounced for the food prod-ucts than for other products (E2 E7 E11)

Conclusions

The following leverage points were identified following the findings from the hori-zon scanning exercise on relevant future trends and the semi-structured qualitative expert interviews

Six leverage points can be identified that describe possible solutions with regard to lifestyles for more sustainable logistics services The first three leverage points are (1) sustainability as an overall concept (2) use of the sharing economy for new logistics models and (3) changes in local structures that generally relate to the inter-action of lifestyles and sustainable logistics Three further points are (4) regionality as an opportunity for the food sector (5) working conditions as an opportunity and (6) returns as a reason for additional logistics for the fashion sector

Each leverage point discussion is structured in such a way that first findings from both horizon scanning and expert interviews are described before challenges and opportunities are discussed


74

Leverage Point 1 Sustainability as an Overall Concept

Description of the Leverage Point

The trend analysis shows that sustainability is a natural part of many peoplersquos gen-eral consciousness (UBA 2015) This applies more to the food sector than to the fashion sector However consumersrsquo understanding of sustainability does not nor-mally extend to the topic of logistics The logistics service behind a purchased prod-uct is not easily visible to consumers with the exception of packaging Moreover compared to the other sustainability issues such as working conditions in the pro-duction of a product or the organic cultivation of food the reference to the product itself is not directly obvious in its logistics There is also no established labelling specifically for social or ecological standards of logistics services that are used in Germany Consumersrsquo interest in sustainable logistics is correspondingly low with some experts observing a slow growth that is driven by individual phenomena (such as labor scandals)

In addition there are an increasing number of different sustainability labels which refer to different partial aspects (fair trade organic) of a product and strain consumersrsquo limited processing capacities for complex partial assessments for each product

Interviewee E3 suggested that consumers consider sustainability as an overall concept and donrsquot differentiate between different aspects of sustainability When consumers consider one aspect of the product to be sustainable they believe the whole product may be sustainable rather than weighting different aspects Against this background one solution would be to integrate sustainable logistics into an overall sustainability concept (E10) This can be done at the product level as well as at the company level At the product level it would involve fair and ecological logis-tics which could be integrated into an existing label system or covered by an addi-tional system in the medium term At the corporate level logistics can be included in the evaluation of corporate sustainability efforts In the longer term logistics can thus become part of the corporate brand An individual assessment of logistics aspects would no longer be necessary

Discussion

Challenges lie in the practical feasibility of the proposal There are a number of practical challenges in integrating logistics aspects into a label like the availability of data on different logistics services and established standards In addition pro-cesses such as integrating the additional elements into an existing label or creating a new label require time and support from the relevant stakeholders The situation is similar for a comprehensive integration of the topic into sustainability reporting at company level


75

Opportunities lie in a general revaluation of the logistics topic and in a compre-hensive evaluation of different sustainability aspects of a product as well as com-panyrsquos activities This is in line with the desire of many consumers to be able to rely on purchasing a sustainable product without having to carry out detailed research

Leverage Point 2 Using the Sharing Economy for New Logistics Models


Established logistics models are not automatically the most suitable or efficient solution for current needs The sharing economy has resulted in numerous new models and solutions that can supplement or replace parts of the established logis-tics services in the future ldquoCrowd logisticsrdquo offers opportunities to make the sys-tems more sustainable in the different areas of logistics The trend analysis confirms that the willingness to use new models of the sharing economy in the future is high among the population (UBA 2015) The sharing economy has produced different concepts of crowd logistics The most relevant approaches are the common use of storage space the cotransport of goods on private journeys or local delivery ser-vices According to expert E8 the greatest potential lies in the joint use of storage space and delivery services especially in large cities while the transport of goods is only suitable for a smaller target group For local delivery services the focus should also be on non-motorized mobility or alternative forms of drive

Discussion

Like other approaches of the sharing economy challenges for a wider use of crowd logistics are the trust among its users and in its practical feasibility To achieve this factors such as the willingness of actors to use the new solution suitable infrastruc-ture and clearly recognizable benefits for all parties involved must be established together Regulatory frameworks must also support or at least not restrict the new approaches To fully exploit the ecological potential of this type of delivery ser-vices they would primarily have to use non-motorized forms of mobility

Opportunities for the wider use of crowd logistics are those that generally con-tribute to the spread of sharing concepts The digitization and penetration of society through smartphones which massively simplify coordination mobile interaction and location determination are to be mentioned here above all In addition the public debate on the sharing economy in recent years helped to raise awareness among potential users The opportunities for personal economic benefits and pos-sible positive ecological (more efficient) and economical (additional income gen-eration) side effects also contribute to the attractiveness of the new concepts


76

Leverage Point 3 Changes in Local Structures


The development of local structures is one of the most important determinants for the sustainability of logistics services in the food and fashion sector as they have a direct impact on distances covered available means of transport the possibility of bundling offers the connection of paths and the appearance of city centers Historically grown structures and urban planning concepts determine how far citi-zens have to travel in order to buy products and in how far they can combine such journeys with other activities and routes (Beckmann et al 2011) The megatrend of urbanization will lead to a shift of the population to cities creating sustainable solu-tions for both concentrated urban and shrinking rural areas (Zweck et al 2015b) In addition the availability of a dense reliable and affordable public transport system as well as bicycle and pedestrian routes on the one hand and the pricecomfort of the use of private motorized transport on the other hand has a strong influence on the mode of transport that is chosen The trends indicate that consumers will tend more toward sustainable options with regard to their mobility behavior in the future (Zweck et al 2015b) Accordingly future concepts for sustainable logistics services can never be considered independently from the local structures as their adaptation is one of the most decisive factors for the sustainability effects of logistics

Local structures which favor sustainable lifestyles and logistics services go hand in hand with an overall concept for urban development with a focus on short and combinable routes and local production that enables direct contact between consumer and producer A ldquoreactivation of village culture and economyrdquo could reduce logistics efforts and at the same time create awareness of the origin of the products Over time this could lead to a change in social concept and more regional-ism and sustainability also because ecological impacts would gradually have spill- over effects on other areas In concrete terms shops would sell products from the region but also homemade goods In addition the village or city centers would concentrate not only on shops but also on services and all-round village or city care such as doctors or cultural offerings Digitalization and smart city solutions could contribute to local value creation and innovation through digital interaction and networking

Discussion

The challenges in creating local structures that enable sustainable lifestyles and logistics lie in the long-term nature the extent of the necessary changes and the large number of different interest groups The planning of cities must be based on growing structures The scope for action can be correspondingly limited especially as conflicting interests of the residents the economy and the various representatives of the administration can complicate the process


77

At the same time it is relatively easy to establish the beginnings of a city of short distances with shops offering regional products Numerous examples exist in which citizen initiatives or individual entrepreneurs open shops to revive former village centers and create local shopping opportunities New technologies and social media enable people to network organize and actively shape their city at a local level A smart city offers new possibilities for interaction and efficiency The discussion about short distances and sustainable forms of transport also fits into the political debates on decarbonization and health promotion within towns and villages

Leverage Point 4 Regionality as an Opportunity in the Food Sector


The experts (E2 E7 E11) agree that regionalism is an important criterion for con-sumers when deciding to buy food Together with seasonality regionalism is seen as the topic that consumers are most concerned about when shopping at the supermar-ket This assessment is in line with the trend in food purchasing which shows that factors such as freshness origin and quality of the products are given a greater weight (UBA 2014) The preference of consumers for regional products when buy-ing food can be used to market not only local production but also sustainable logis-tics with short transport routes Such a motivational alliance can help to make the subject of transport and logistics more understandable and tangible for consumers on the basis of concrete examples In order to communicate the different added values of regionality it would also make sense to identify or set up regional prod-ucts separately in the shop for example according to the distance covered by the product Moreover regional buying preferences open up opportunities to develop completely new sales channels Examples of this are the direct marketing of food through for example fruit and vegetable crates the collection of products ordered from farmers in the city such as at the Food Assembly1 or participation in food production within the framework of solidarity-based agriculture

Discussion

Challenges for the development of new distribution channels lie in the attractiveness of supermarkets especially due to their long opening hours comprehensive range of products and good location Against this background alternative sales channels have so far only been attractive for a small target group

In most cases the solutions mentioned only offer products that come from farms in the region so they must be seen primarily as an addition to the supermarket not

1 httpsthefoodassemblycomen


78

as a substitute This can create an additional need for mobility for consumers In many cases the decentralized distribution of regional products can also lead to addi-tional routes for consumers The development of new distribution channels for food from the region offers opportunities for the local economy Consumers learn to value food more when they are in more direct contact with producers The sustain-ability effects of logistics for alternative distribution channels can be positive if non-motorized means of transport are used primarily or at least very efficient vehi-cles are used and packaging materials are reduced to a minimum

Leverage Point 5 Working Conditions as an Opportunity in the Fashion Sector


Many consumers are aware of poor working conditions in the logistics sector This knowledge is based on media reports staff strikes in recent years and experience from personal contact with parcel delivery companies Challenging working condi-tions are manifold such as work intensity and physical strain low incomes security issues as well as a lack of career opportunities (Verdi Bundesverwaltung 2013) Consumers understand this problem in particular for the case of online logistics in contrast to the ecological aspects There is also public awareness here which poses a threat to the reputation of companies through future activities of civil society especially of nongovernmental organizations

Concrete efforts to improve the social aspects of logistics in transport and storage can be used to raise the profile of logistics providers Since consumers are already sensitized to the topic efforts to improve the status quo promise to contribute to the reputation of the logistics company As an alternative to individual efforts toward that end there could be an industry solution to overcome and create transparency about existing grievances in cooperation with all relevant stakeholders

Discussion

From the perspective of logistics service providers the challenges in improving social aspects of logistics lie primarily in the associated costs In a competitive industry these can have a negative effect on competition

Improving the social aspects of online delivery logistics offers suppliers the opportunity to differentiate themselves from their competitors However the risks of becoming the target of a campaign by nongovernmental organizations are decreas-ing To communicate improvements specific awards comparable to DHLrsquos ldquogo greenrdquo option2 are also conceivable which further contribute to the brand image

2 httpswwwdeutschepostdedeggogreenhtml


79

Leverage Point 6 Returns as Reason for Additional Logistics


There are various reasons for the high number of returns with their associated envi-ronmental impact and the economic loss caused by online retailers through inspec-tion cleaning re-labelling and repackaging (E1 E2 E6) According to EU legislation customers have the right to return goods within 14 days without giving reasons (DCTI 2015) In addition the service of returning goods is often free of charge and is therefore used generously by customers Another relevant factor for the volume of returns is that textiles are not particularly suitable for online retail as their size and fit are not precisely determined and consumers cannot feel the mate-rial of the goods (E3) Experts assume that online retailing encourages people to shop a lot which increases shipping and returns and that the inhibition threshold for returning goods is lower in online retailing than in stationary retailing (E4)

There are different approaches to reduce the number of returns in online fashion shopping and their sustainability impact These approaches are aimed at a more appropriate marketing of fashion products at the online shop customer involve-ment and the design of logistics processes To prevent consumers from ordering clothes that they will likely return later it is a good idea to set up an online fitting where the product size and fit can be better evaluated High-quality packaging can also counteract the tendency of consumers to return goods In addition online mer-chants can introduce a price for returns or if they consider this too inhibitive for business set up a reward system for returning as few items as possible Finally online retailers can cooperate more closely in the area of returns in order to increase efficiency on the last mile Customers are probably less time-sensitive when it comes to returns than they are on the delivery of fashion goods

Discussion

The existing conditions that contribute to the large number of returns are difficult to change Even with further efforts textiles remain a difficult product for online retailers as they cannot be tried on Online retailers who are offering returns free of charge to their customers will be reluctant to change this policy especially if it is still the standard in the industry

Since returns are a major cost factor for online retailers they are more motivated to test and implement new approaches here A cooperation between different logis-tics service providers for the handling of returns would be an important first step for further cooperation that could massively improve the efficiency of last-mile operations


80

Recommendations and Outlook

Six leverage points show the way to more sustainable innovative logistics services against the background of lifestyles at various levels On this basis general state-ments can be derived that represent proposed actions for the future

Integrating Logistics into the Overall Sustainability Concept

The leverage points 1 3 and 5 clearly show that consumers do currently not per-ceive logistics services as part of sustainability Against the background of consum-ersrsquo limited ability and willingness to deal with the complex elements of sustainability there is a great opportunity to integrate logistics issues more strongly into the overall concept of sustainability This can be done with existing labels and awards at a product or company level as well as at via sustainability reports and alliances at company level

Exploit Motivational Alliances and Existing Awareness

It is clear that the use of motivational alliances and the building on existing con-sumer awareness for sustainable logistics have great potential to promote greater demand for sustainable logistics services Topics that are already important to cer-tain target groups such as regionality (leverage point 4) and existing problem awareness can be used to create changes in behavior on other issues such as work-ing conditions (leverage point 5) or a high volume of returns (leverage point 6)

Technology and Innovation as Opportunity and Challenge

Technology and innovation play an important role in new logistics services The sharing economy (leverage point 2) the Internet of Things (which could be used to address leverage point 6) smart cities (leverage point 3 among others) and numer-ous individual developments offer opportunities for more efficient processes strengthening of local structures and innovative solutions At the same time such innovations should be critically examined to see whether they are actually more sustainable than existing solutions after taking all effects into account


81

Logistics Integrated in Overall Social Developments

Leverage points 1 2 3 and 4 clearly show that sustainable consumption and sus-tainable logistics must be seen in a complex system of social and technical develop-ments Both social (characteristics of the consumption system relevance of the price as an overriding purchasing criterion etc) and technical developments (tech-nology as an end in itself or as a tool for solving social challenges) should be shaped with the aim of sustainable development in mind in order to create a breeding ground for sustainable logistics

Cooperation of Different Actors

The complexity of the topic and the diversity of possible solutions require strong cooperation among many actors starting with logistics service providers and retail-ers consumer organizations consumers politicians and scientists to jointly develop solutions and implement them This recommendation is obvious especially for leverage points 2 3 and 6

Appendix

Interview Guideline Semi-Structured Qualitative Interviews

Block 1 Introduction

1 Presentation of the interviewer

bull Reason for the interviewbull Data handlingbull Request for permission to record the conversation

2 Information about the interviewee

bull Request to introduce themselves (organization area role connection to the topic)

3 Explanation of the research framework (Fig 31)

Logistics include all areas of transport storage and packaging It is included in all steps of the supply chain including the ones from production to the store or mail- order firm as well as those of the last mile ie how the product reaches the cus-tomer from the retailer Also included are all steps beyond that namely those of the ldquoreverse logisticsrdquo referring to product returns


82

Within the scope of this research we consider the logistics along the supply chain of food purchased in supermarkets and that of last mile of textile logistics purchased online

Block 2 Sustainable ConsumptionConsumers

Sustainability Hot Spots 4 Which are to most important sustainability hot spots (problem areas) related to

logistics in

bull Stationary retailbull Online shopping

Consumer Awareness 5 Does the consumer have an understanding of the problem regarding the ecologi-

cal and social dimensions in the logistics of products which they purchase in retail stores

bull If yes how has this understanding emerged and how does it manifest itselfbull Is the situation different for food purchases in the supermarket

6 Does the consumer have an understanding of the problem regarding the ecologi-cal and social dimensions in the logistics of mail-order products which they pur-chase online

bull If yes how has this understanding emerged and how does it manifest itselfbull Is the situation different for online retailing of textiles

Stationary Retail

Logistics along the supply chain

Distribution Centre Online

Shopping


Reverse Logistics

Last Mile to Consumer


Fig 31 Research framework


83

7 Do concerns about sustainability aspects (related to logistics) influence the buy-ing decision in


Block 3 Possible solutions

8 Which possible solutions are available for products with sustainable logistics in stationary retail

bull General (ecological and social)bull Approaches on the product levelbull Approaches on the company levelbull Approaches initiated by consumers

9 Which possible solutions are available for sustainable distribution in online retail

Block 4 Trends

10 Open conversation about different trends and their assessment 11 Which information would the consumer like to receive about their purchases in

the future 12 How will the consumer interact with businesses regarding their sustainability

activities in the future 13 How many and what kind of products will the consumer order online in the

future 14 What will the consumer pay attention to when ordering online in the future 15 How will the relation between stationary retail and online retail develop

Block 5 Trends and Possible Solutions Sharing Economy

16 Which approaches of the sharing economy regarding online retail are you aware of

bull How would you assess the potential of these trends to spreadbull How would you assess the sustainability potential of these trends

17 Which approaches of the sharing economy with regard to stationary retail are you aware of



84

References

Beckmann K Gies J Thiemann-Linden J amp Preuszlig T (2011) Leitkonzept ndash Stadt und Region der kurzen Wege ndash Gutachten im Kontext der Biodiversitaumltsstrategie Dessau-Roszliglau Umweltbundesamt Retrieved April 23 2016 from httpswwwumweltbundesamtdesitesdefaultfilesmedien461publikationen4151pdf

BITKOM (2013) Trends im E-Commerce ndash Konsumverhalten beim Online-Shopping Studie von BITKOM Retrieved April 23 2016 from httpswwwbitkomorgPublikationen2013StudienTrends-im-ECommerceBITKOM-E-Commerce-Studienberichtpdf

BVL (2014) Nachhaltige Logistik in urbanen Raumlumen Wien Bundesvereinigung Logistik Oumlsterreich Retrieved March 11 2016 from httpwwwsmartcitiesatassets01-Foerderungenweb-gruenbuch-auszugpdf

Carter C R amp Easton P L (2011) Sustainable supply chain management Evolution and future directions International Journal of Physical Distribution amp Logistics Management 41(1) 46ndash62 httpsdoiorg10110809600031111101420

Carter C R amp Rogers D S (2008) A framework of sustainable supply chain management Moving toward new theory International Journal of Physical Distribution amp Logistics Management 38(5) 360ndash387 httpsdoiorg10110809600030810882816

Clausen U de Bock J amp Lu M (2016) Logistics trends challenges and needs for further research and innovation Retrieved April 25 2018 from httpslinkspringercomchapter1010072F978-3-319-17419-8_1

DCTI (2015) Klimafreundlich einkaufen ndash Eine vergleichende Betrachtung von Onlinehandel und stationaumlrem Einzelhandel Retrieved March 5 2016 fromhttpwwwottogroupcommediadocsdestudienStudie_Klimafreundlich_Einkaufenpdf

Demary V (2015) Competition in the sharing economy IW policy paper No 192015 Institut der deutschen Wirtschaft Koumlln Koumlln

Diekmann A (2007) Empirische Sozialforschung ndash Grundlagen Methoden Anwendungen (14th ed) Reinbek Rowohlt Editions

Doll A Schwarzmueller C (Barclays) Firebel D amp Rueckriegel M (2014) Global logistics market (Roland Berger) Retrieved April 25 2018 from httpswwwrolandbergercomenPublicationspub_global_logistics_marketshtml

Edwards J Alan C amp McKinnon F (2009) Shopping trip or home delivery which has the smaller carbon footprint Fokus 0709 20-24 Retrieved March 1 2016 from httpwwwgreenlogisticsorgSiteResources343c5312-af8f-4cc0-a271-4191cb2ccdff_Edwards-McKinnon-ShoppingTripOrHomeDelivery-FocusLogisticsJuly2009pdf

Friedrich M amp Helmig B (2016) Assessing the sustainability impact of sharing economy initia-tives ndash A systematic review on sustainability indicators In 2nd International Workshop on the Sharing Economy Paris

Fuhrmann M amp Horowitz M C (2017) Droning on explaining the proliferation of unmanned aerial vehicles International organization 71(2) 397ndash418

Gleissner H amp Femerling J C (2013) Logistics Basics ndash Exercises ndash Case studies Berlin Springer

Grosm D amp Alcidi C (2013) The global economy in 2030 Trends and strate-gies for Europe Retrieved April 25 2018 from httpswwwcepseupublicationsglobal-economy-2030-trends-and-strategies-europe-0

Heinrichs H amp Grunenberg H (2012) Sharing economy ndash Auf dem Weg in eine neue Konsumkultur Luumlneburg Retrieved February 20 2016 from httpwwwssoarinfossoarbitstreamhandledocument42748ssoar-2012-heinrichs_et_al-Sharing_Economy__Auf_dempdfsequence=1

InnoZ (2012) Trends 2030 ndash Mobilitaumlt und Logistik Berlin Begleitheft zum Innovationsworkshop 2012 der DB AG Retrieved March 29 2016 from httpswwwinnozdesitesdefaultfiles2012_06_trends_2030_-_mobilitaet_und_logistikpdf


85

Joerss M Schroeder J Neuhaus F Klink C amp Mann F (2016) Parcel delivery The future of last mile Retrieved April 25 2018 from httpswwwmckinseycom~mediamckinseyindustriestravel20transport20and20logisticsour20insightshow20customer20demands20are20reshaping20last20mile20deliveryparcel_delivery_the_future_of_last_mileashx

Koumlnnoumllauml T Salo A Cagnin C Carabias V amp Vilkkumaa E (2012) Facing the future Scanning synthesizing and sense-making in horizon scanning Science and Public Policy 39(2) 222ndash231

KPMG (2012) Consumer markets Trends im Handel 2020 Studie von KPMG Retrieved March 17 2016 from httpswwwkpmgdedocs20120418-Trends-im-Handel-2020pdf

Krumme K amp Nagel L (2012) Standpunkt ndash Vom Saulus zum Paulus In EFFIZIENT eDossier of the EffizienzCluster Logistik Ruhr Issue 1 Corporate social responsibility in logistics Retrieved April 25 2018 from httpwwweffizienzclusterdedenewsletternewslet-ter_01_2012newsletter_1_csr_downloadpdf

Krumme K Schmidt I Meyer N amp Pratt N (2015) Innovative logistics for sustainable lifestyles Concept paper for the research project ldquoILoNardquo DuEPublico Online Publishing University of Duisburg-Essen Available online duepublicouni-duisburg-essende

Loveridge D (2009) Foresight The art and science of anticipating the future New York Routledge

MacDougall W (2016) The food and beverage industry in Germany Germany trade and invest Retrieved April 25 2018 from httpswwwgtaideGTAIContentENInvest_SharedDocsDownloadsGTAIIndustry-overviewsindustry-overview-food-beverage-industry-enpdfv=7

Mayring P (2003) Qualitative Inhaltsanalyse Grundlagen und Techniken 9 Auflage Weinheim Beltz

Mont O (2007) Concept paper for the international task force on sustainable lifestyles In Third International Expert Meeting on Sustainable consumption and Production Stockholm

Mottschall M (2014) Vorfahrt Klimaschutz ndash Strategien fuumlr den Verkehr der Zukunft Berlin Oumlko- Institut Retrieved March 29 2016 from httpwwwoekodeoekodoc21472014-698-depdf

Plos van Amstel W (2014) The sharing economy brings anarchy to the supply chain Eft-eyefortransport Retrieved March 26 2016 from httpwwweftcomsharing-economy-brings-anarchy-supply-chain

Ronald E Goldsmith R amp Flynn L (2004) Psychological and behavioral drivers of online clothing purchase Journal of Fashion Marketing and Management An International Journal 8(1) 84ndash95 Retrieved March 29 2016 from httpsdoiorg10110813612020410518718

Scholl G Behrendt S Flick C Gossen M Henseling C amp Richter L (2015) Peer-to- peer sharing ndash Definition und Bestandsaufnahme 1 Arbeitsbericht Retrieved April 12 2016 from httpswwwioewdefileadminuser_uploadBILDER_und_DownloaddateienPublikationen2015PeerSharing_Ergebnispapierpdf

Sheffi Y amp Klaus P (1997) Logistics at large Jumping the barriers of the logistics function Council of logistics management educationsrsquo conference Chicago Retrieved April 25 2018 from httpsheffi-testmitedusitesdefaultfilesCLM-Logistics20at20Largepdf

Skender P H Host A amp Nuhanovic M (2016) The role of logistics service providers in inter-national trade In 15th international scientific conference business logistics in modern manage-ment Croatia Retrieved April 25 2018 from httpshrcaksrcehrojsindexphpplusmarticleview4667

SRU (2012) Umweltgutachten 2012 Verantwortung in einer begrenzten Welt 1 Auflage Erich Schmidt Verlag Berlin Retrieved March 26 2016 from httpwwwumweltratdeSharedDocsDownloadsDE01_Umweltgutachten2012_06_04_Umweltgutachten_HDpdf__blob=publicationFile

UBA (2014) Die Zukunft im Blick Trendbericht fuumlr eine vorausschauende Ressourcenpolitik 1 Auflage Dessau- Roszliglau Umweltbundesamt Retrieved April 13 2016 from httpswwwumweltbundesamtdesitesdefaultfilesmedien378publikationendie_zukunft_im_blick_trendberichtpdf


86

UBA (2015) Umweltbewusstsein in Deutschland 2014 1 Auflage Dessau-Roszliglau Umweltbundesamt Retrieved February 27 2016 from httpswwwumweltbundesamtdesitesdefaultfilesmedien378publikationenumweltbewusstsein_in_deutschland_2014pdf

Verdi Bundesverwaltung (2013) Die Arbeitsbedingungen im Post- und Logistiksektor Ergebnisse einer DGB-Index-Gute-Arbeit-Befragung von verdi-Mitgliedern des Fachbereiches Postdienste Speditionen und Logistik

Wagner W amp Wiehenbrauk D (2014) Cross Channel ndash Revolution im Lebensmittelhandel Studie der Unternehmensberatung Ernst amp Young GmbH Retrieved February 11 2016 from httpwwweycomPublicationvwLUAssetsEY_Studie_Cross_Channel_-_Die_Revolution_im_Lebensmittelhandel$FILEEY-Cross-Channel-Die-Revolution-im-Lebensmittelhandelpdf

Zeit Online (2015) Deutschland bleibt auf Zuwanderung angewiesen Zeit Online Retrieved March 29 2016 from httpwwwzeitdewirtschaft2015-10fachkraeftemangel-fluechtlinge-studie

Zink K Fischer K amp Hobelsberger C (2012) Nachhaltige Gestaltung internationaler Wertschoumlpfungsketten ndash Akteure und Governance-Systeme Baden-Baden Monos Retrieved April 17 2016 from httpwwwnomos-shopde_assetsdownloads9783832957339_lese01pdf

Zweck A Holtmannspoumltter D Braun M Hirt M Kimpeler S amp Warnke P (2015a) Forschungs- und Technologieperspektiven 2030 Ergebnisse 2 zur Suchphase von BMBF- Foresight Zyklus II 1 Auflage Duumlsseldorf VDI Technologiezentrum GmbH Retrieved January 28 2016 from httpwwwvditzdefileadminmediaVDI_Band_101_C1pdf

Zweck A Holtmannspoumltter D Braun M Hirt M Kimpeler S amp Warnke P (2015b) Gesellschaftliche Veraumlnderungen 2030 Ergebnisband 1 zur Suchphase von BMBF-Foresight Zyklus II 1 Auflage Duumlsseldorf VDI Technologiezentrum GmbH Retrieved January 28 2016 from httpwwwvditzdefileadminmediaVDI_Band_100_C1pdf



Chapter 4Assessment of Consumer Attitudes Toward Sustainability in Food Logistics and the Role of Shopping Behavior and Personal Characteristics

Gerrit Stoumlckigt Rosa Strube Sarah Lubjuhn and Matthias Brand

Abstract In order to help meet the United Nations Sustainable Development Goals governments businesses as well as consumers are required to do their share By means of buying decisions consumers can contribute to sustainable consump-tion and also influence businesses to produce more sustainably Buying groceries is an everyday activity where consumers can easily take action This chapter focuses sustainable food logistics and describes an empirical study to address the questions of (1) how a consumerrsquos attitude toward sustainability in a food-logistics context can be assessed (2) whether people with a positive attitude toward sustainability show a sustainable grocery shopping behavior and (3) what individual characteris-tics are beneficial and which ones are cumbersome in this regard We report the development of an attitude questionnaire and relate this to consumer behavior and personality Results are discussed and practical implications for businesses and gov-ernments are provided to enhance sustainable consumption and production

Keywords Sustainable production middot Sustainable consumption middot Consumer attitudes toward sustainable logistics middot Food logistics middot Sustainable Development Goals middot United Nations

G Stoumlckigt () General Psychology Cognition and Center for Behavioral Addiction Research (CeBAR) University of Duisburg-Essen Duisburg Germanye-mail gerritstoeckigtuni-duede

R Strube Collaborating Center on Sustainable Consumption and Production (CSCP) Wuppertal Germany

S Lubjuhn Center for Media amp Health (CMH) Gouda Netherlands

M Brand General Psychology Cognition and Center for Behavioral Addiction Research (CeBAR) University of Duisburg-Essen Duisburg Germany

Erwin L Hahn Institute for Magnetic Resonance Imaging Essen Germany

88

Introduction

In their 2030 Agenda for Sustainable Development the United Nations (UN) mem-ber states have adopted 17 Sustainable Development Goals (SDG) as part of a new sustainable development agenda (United Nations 2015) SDG number 12 states ldquoEnsure sustainable consumption and production patternsrdquo In this chapter we address SDG number 12 from a psychological perspective The chapter is structured as follows In the next section we provide a brief overview of the relevant theoreti-cal background Subsequently we formulate three research questions to be addressed by means of a controlled quantitative laboratory study In the Methods section we describe the employed instruments and the characteristics of the investigated sam-ple The Results section summarizes the respective results which are then discussed against the Theoretical Background in the Discussion section A brief conclusion points out possible implications and closes the chapter

Theoretical Background

Sustainability has been called ldquoone of the greatest issues of our timesrdquo (Heiskanen and Pantzar 1997 p 409) and together with sustainable consumption they are ldquokey elements in the academic and policy debates that consider the environmental impacts of consumptionrdquo (Schaefer and Crane 2005 p 76) For this reason numer-ous authors investigate all sorts of topics concerning sustainable consumption and production (eg Buerke et al 2017 Heiskanen and Pantzar 1997 Schaefer and Crane 2005 Severo et al 2015 and many more) As most authors in this field focus on either consumption or production we were interested in combining consumption and production patterns in an investigation of sustainability For this we sought to understand consumersrsquo attitudes toward sustainability regarding the pre-purchase supply chain of grocery products

Grocery shopping is a requirement of everyday life and thus of weighty rele-vance in society It is also a field with significant sustainability impacts and chal-lenges Production and transport of products does not only have a considerable effect on carbon dioxide emissions but also working conditions in the food industry have lately been criticized (Maloni and Brown 2006) Besides the question of what governments and businesses can do to tackle sustainability issues conscious con-sumers can exert considerable power by means of their buying decisions (Collins et al 2007) However a precondition for this is that consumers are aware of the implications of their purchasing decisions and that they want to use their decisions as a means to support the consumption and production of more sustainable products (eg by choosing products with a Fairtrade or organic certification)

According to Ajzenrsquos (1991) theory of planned behavior a personrsquos attitude toward a certain behaviormdashalong with perceived behavioral control and social normsmdashdetermines his or her intention which in turn predicts behavior Applying this to the field of sustainable purchasing the attitude toward sustainability should

G Stoumlckigt et al

89

have an effect on the purchasing behavior More precisely a positive attitude toward sustainability regarding products themselves (ie ingredients production condi-tions etc) should contribute to the intention to consider sustainability aspects when buying products which in turn should predict sustainable behavior and consump-tion Associations between attitude and behavior in the context of sustainable con-sumption have been shown in previous studies For instance Panzone et al (2016) found that environmental concern predicts sustainable food shopping Kumar et al (2017) could show that the attitude toward sustainable products mediates the effect of sustainability knowledge on purchase intention so the attitude toward sustain-ability is related to the behavior However not only the products themselves are relevant in the context of sustainability Pre-purchase supply chains and logistics patterns also have sustainability implications such as the environmental impact of transport and storage as well as working conditions in this branch These are aspects of sustainability which consumers might be less aware of While the consumption patterns have been widely investigated especially in behavioral economics less attention has been payed to the investigation of attitudes toward sustainable logistics and their relation to sustainable purchase decisions Hence in our study we aimed to find out how attitudes toward sustainable logistics ie the environmental impact and working conditions during transport and storage of products relate to sustain-able purchasing behavior As these attitudes intentions and behaviors may vary across product categories we focused on a category of products that everybody purchases groceries Accordingly we assumed that positive attitudes toward envi-ronmental friendliness and fair working conditions during transport and storage of food before sale are related to more sustainable grocery shopping behavior in terms of choosing more sustainable products (organic or Fairtrade) or shops (eg organic supermarkets) Because attitudes toward certain shopping behaviors can determine the respective buying intentions and consequently predict sustainable buying behav-ior (see Ajzen 1991) the main goal of this investigation was to find out how a per-sonrsquos attitudes can be assessed Therefore as a first starting point it was necessary to develop an effective measure for assessing a consumerrsquos attitudes toward sustain-ability in the context of food logistics

According to Vermeir and Verbeke (2006) consumers already have mainly posi-tive attitudes toward sustainability and the public interest in this topic increases constantly Consumersrsquo concern for environmental implications of their buying behavior fosters green consumption which is an increasing trend since the mid- 1990s (Seyfang 2004) Even if sustainable buying might be challenging many peo-ple engage in such decision-making processes and some resolutely adapt their behavior accordingly For instance Black and Cherrier (2010) describe what they call an anti-consumption lifestyle ie trying to consume as little as possible The rationale behind this strategy is that every type of consumption harms the environ-ment in some way even green consumption (in a reduced manner) Others are will-ing to support some aspects of sustainability without making a complete lifestyle change eg by buying more Fairtrade products (McDonald et al 2006) However many people still show a purchasing behavior that does not consider sustainability issues even if they have a positive attitude toward sustainability in general On the

4 Assessment of Consumer Attitudes Toward Sustainability in Food Logisticshellip

90

one hand this might be due to external restrictions such as rare time budget or availability as sustainable shops and products are generally less numerous and more expensive On the other hand this might also be due to individual characteris-tics such as knowledge about what supports sustainability or personality traits According to the findings of Luchs et al (2010) the effect of sustainability on pref-erence is neither uniformly negative nor positive Thus the extent to which sustain-ability aspects are considered in buying decisions may be influenced by individual characteristics which should be further investigated

Previous studies have shown that a personrsquos individual characteristics can influ-ence the extent to which sustainability is considered in buying decisions For instance Luchs and Mooradian (2012) argue that personality traits like agreeable-ness can explain the relationship between gender and sustainable consumer behav-ior Hirsh (2010) states that greater environmental concern is related to higher levels of agreeableness as well as openness while smaller positive relations for neuroti-cism and conscientiousness were found

In addition delay discounting has been mentioned as a potential measure of sustainable behavior (Hirsh et al 2015) Delay discounting refers to the extent to which the subjective value of an outcome is discounted over time This individual characteristic is related to impulsivity (Ainslie 1975 Dittmar and Bond 2010) Impulsive people tend to steeper delay discounting in a way that even short delays are sufficient to prefer a smaller immediate reward to a larger delayed one Contrarily lower delay discounting represents a higher willingness to wait for a better outcome in the future To explain the concept of delay discounting in a theoretical manner an immediate reward (eg 100 euros now) will always be preferred to a delayed reward (eg 100 euros in 7 days) Why would you choose to wait 7 days if you could have the same amount of money immediately This question becomes more difficult when the delayed reward is higher than the immediate one Would you choose 100 euros immediately or 500 euros in 7 days And how about 100 euros immediately versus 101 euros in 7 days These examples are very easy However making them more complicated by varying the numbers reveals that everybody has his or her own individual preference By means of a test including several of the above-mentioned questions with differing numbers concerning reward and delay time the partici-pantrsquos individual discounting parameter can be deduced (Kirby et al 1999) In the context of food choices a consumer may for instance be confronted with a choice between organic and nonorganic vegetables When buying nonorganic vegetables instead of organic ones the consumer saves money which represents a higher immediate reward On the other hand buying organic vegetables means a monetary loss compared to the cheaper option but for the consumer the merits of an organic product may be of greater value even if they only arise in the long run (like a health-ier lifestyle due to pesticide-free vegetables support of sustainable agriculture and thus a contribution to slowing global warming down etc) Whether or not these positive effects of organic products are worth more than the cheaper price of con-ventional products depends on the price difference on the individual preference of organic products but potentially also on the individual delay discounting rate The relevance of delay discounting in the context of sustainable food logistics has not yet been investigated

G Stoumlckigt et al

91

Overall this leads to the questions of how attitudes toward sustainable logistics relate to sustainable purchasing behavior (and how this could be assessed) which individual characteristics could be beneficial and which ones could be obstructive to positive attitudes toward sustainability in a food-logistics context

Research Questions

Based on the ideas conveyed in the Theoretical Background section we have for-mulated the following research questions (RQ)

RQ 1 How can a consumerrsquos attitudes toward sustainability in a food-logistics con-text be assessed

RQ 2 Do people with positive attitudes toward sustainability in a food-logistics context show a sustainable grocery shopping behavior

RQ 3 What individual characteristics are beneficial and which ones are cumber-some in this regard

Methods

To address the research questions we designed a laboratory study and we devel-oped respective questionnaires It was ensured that all questions and items were as easily understandable as possible and that ambiguities were avoided After the development and test phases data collection started For this we invited volunteers to participate at an hourly rate of 10 euros We chose the laboratory context to pro-tect data collection from confounding factors During the study an investigator was present at all times to provide help in the case of comprehension questions Overall participation was voluntary and anonymous and participant data input was shielded from the investigator All participants gave written informed consent

Participants

A total of 149 participants (92 females 55 males 2 not specified) took part in the study Their age ranged from 18 to 67 years M = 2794 years (SD = 1000) Among the respondents 20 participants had no higher education entrance qualification 64 had higher education entrance qualification and 65 had a university degree addition-ally Participantsrsquo living situation was mostly urban Three participants lived in a city of one million or more inhabitants 104 lived in a city of between 100000 and 999999 inhabitants 18 lived in a city of 20000ndash99999 and 19 lived in a town of less than 20000 (5 participants stated to have no knowledge of the size of their town)


92

Instruments

To address the research questions we developed and employed a new questionnaire to assess participantsrsquo attitudes toward sustainability in a food-logistics context The development took place in cooperation between the team of General Psychology Cognition at the University of Duisburg-Essen (Duisburg Germany) the Collaborating Centre on Sustainable Consumption and Production (Wuppertal Germany) and the Center for Media amp Health (Gouda the Netherlands) We formu-lated ten items in the form of concise hypothetical statements in a first-person per-spective Half of the items addressed environmental issues the other half referred to social issues in the food-logistics branch The items were formulated in German language as data collection took place at a German university For quantitative data collection all items were to be rated on a six-point Likert scale ranging from 1 (ldquototally disagreerdquo) to 6 (ldquototally agreerdquo) The items were

1 It is important to me that the logistics of the products I buy is environmentally friendly

2 It is important to me that the logistics of the products I buy is socially fair 3 I would prefer a product with environmentally friendly logistics to a compara-

ble product 4 I would prefer a product that was stored and moved under socially fair condi-

tions to a comparable product 5 I would be willing to pay more for a product with environmentally friendly

logistics 6 I would be willing to pay more for a product that was stored and moved under

socially fair conditions 7 I try to find out whether a productrsquos logistics are environmentally friendly

before I buy it 8 I try to find out whether a product was stored and moved under socially fair

conditions before I buy it 9 If a product I intend to buy was not stored and moved in an environmentally

friendly manner I decline to buy it 10 If a product I intend to buy was not stored and moved under socially fair condi-

tions I decline to buy it

Furthermore we employed questions about shopping preferences On a scale from 1 (ldquoneverrdquo) to 5 (ldquoalwaysrdquo) we asked participants the following questions

ndash When buying agricultural produce (eg fruits vegetables dairy products meat juices etc) how often do you choose products with an organic label

ndash When buying products from developing countries (eg coffee tea ice tea spices juices fruits chocolate honey sugar vegetable oils etc) how often do you choose products with a Fairtrade seal

G Stoumlckigt et al

93

Moreover we asked how often they bought groceries on a scale from 1 (ldquoneverrdquo) to 5 (ldquoalwaysrdquo)

ndash In supermarkets with full product range ndash In discounters ndash In organic supermarkets ndash In independent shops ndash On the market ndash Elsewhere

For the assessment of individual characteristics we employed standardized questionnaires on personality materialism and delay discounting For personality we used the 10-item version of the Big Five Inventory (BFI Rammstedt and John 2007) It assesses the Big Five personality traits extraversion agreeableness con-scientiousness neuroticism and openness For materialism we used the Material Values Scale (MVS Muumlller et al 2013) containing the two scales centralitysuc-cess and happiness Delay discounting was assessed by means of Kirby et alrsquos (1999) Monetary Choice Questionnaire This consists of 27 binary choice questions assessing an individual indifference value In each choice question participants are asked to decide between one immediate monetary reward (eg 34 euros today) and a higher delayed reward (eg 50 euros in 30 days) Higher indifference values indi-cate a higher discounting rate of the immediate reward

Results

To address RQ 1 we examined the response pattern of the new questionnairersquos first deployment An exploratory factor analysis (principal axis analysis with promax rotation) revealed two factors with four items each The two remaining items (nos 1 and 2) did not load on any of the factors in a concise manner and had thus to be excluded from further analysis The first factor Cronbachrsquos ɑ = 0862 can be seen as a factor that describes a sustainable attitude with aspects of a consistent behav-ioral tendency Hence we will refer to this factor in the following as ldquobehavioral consistencyrdquo The second factor Cronbachrsquos ɑ = 0856 describes a sustainable atti-tude with a willingness to contribute toward a sustainable supply chain rather than a consistent behavior Hence we will refer to this factor as ldquowillingnessrdquo Both fac-tors are moderately correlated This is a good precondition for future employment A very strong correlation would have indicated that the two factors might possibly have assessed the same construct which would have made one factor obsolete If we had found no correlation between the factors this would have suggested that the factors might have assessed constructs that are entirely unrelated which would have made it impossible to see them as two facets of one construct ie the attitude toward food-logistics sustainability Consequently a moderate correlationmdashas we could determine between the two factorsmdashmeans that the factors assess two differ-ent facets of a common content-related background Table 41 shows the item assignment to the factors with factor loadings and mean response patterns


94

The factor analyses reveal a very distinct factor assignment This can be seen by the clear factor loadings of above 06 for main loadings and below 03 for parallel loadings in Table 41 The mean responses (M values) indicate a considerable response difference between the two factors The difference is significant t (148) = minus2522 p lt 0001 Figure 41 shows the mean scores of the two factors It illustrates that participants agreed much more to statements expressing a certain willingness to contribute to sustainability than to statements expressing a behavioral consistency regarding sustainability

A more detailed view of the questionnaire data can explain this striking differ-ence between the two factors Fig 42 shows that statements regarding behavioral consistency were much more often disagreed to than statements regarding a willing-ness to contribute to sustainability Statements about a general willingness were much more agreed to (right side of Fig 42) Especially those about generally pre-ferring sustainable products without any concrete concessions seem to have been easy 953 at least ldquorather agreedrdquo to those statements Statements addressing the willingness to pay more for sustainable products were at least ldquorather agreedrdquo to by 704 for environmentally friendly logistics and 752 for socially fair logistics

Table 41 Items of the new questionnaire with factor loadings and mean responses sorted by factor loading

Factor loading 1

Factor loading 2 M SD Range

Items ldquobehavioral consistencyrdquo (Factor 1)9 If a product I intend to buy was not stored and

moved in an environmentally friendly manner I decline to buy it

0858 minus0063 245 109 1ndash5

10 If a product I intend to buy was not stored and moved under socially fair conditions I decline to buy it

0823 minus0097 264 117 1ndash6

8 I try to find out whether a product was stored and moved under socially fair conditions before I buy it

0760 0048 258 123 1ndash6

7 I try to find out whether a productrsquos logistics are environmentally friendly before I buy it

0685 0062 247 114 1ndash6

Items ldquowillingnessrdquo (Factor 2)3 I would prefer a product with environmentally

friendly logistics to a comparable productminus0166 0940 497 089 3ndash6

4 I would prefer a product that was stored and moved under socially fair conditions to a comparable product

minus0107 0827 497 092 2ndash6

5 I would be willing to pay more for a product with environmentally friendly logistics

0267 0626 407 119 1ndash6

6 I would be willing to pay more for a product that was stored and moved under socially fair conditions

0255 0626 418 112 1ndash6

Main factor loadings are printed in bold parallel factor loadings in italicsM = mean SD = standard deviation

G Stoumlckigt et al

95

Contrary statements about consistent behaviors were mostly disagreed to (left side of Fig 42) Only 201 of the sample indicated to at least ldquorather agreerdquo to trying to find out about fair logistics before buying (and 181 about ecological logistics) Similarly 227 at least ldquorather agreedrdquo to declining to buy products with unfair logistics (175 for non-ecological logistics)

For RQ 2 we asked participants about their buying behavior On a 5-point scale from ldquoneverrdquo to ldquoalwaysrdquo participants indicated how often they chose organic prod-ucts when buying agricultural produce and how often they chose Fairtrade products when buying products from developing countries Participants additionally indi-cated how often they frequented which store type for grocery shopping in general Figure 43 shows the mean responses to these questions It can be seen that organic

Fig 41 Descriptive results of the two factors ldquobehavioral consistencyrdquo and ldquowillingnessrdquo Error bars indicate standard deviations

Fig 42 Participantsrsquo response behavior to the statements in the new questionnaire


96

and Fairtrade products are chosen at a medium frequency (ldquosometimesrdquo) and that discounters and full-range supermarkets are most popular for grocery shopping (between ldquosometimesrdquo and ldquooftenrdquo) In our sample organic shops and markets are seldom chosen when buying groceries while independent shops (such as butchers bakeries etc) range between ldquoseldomrdquo and ldquosometimesrdquo

Before addressing the other research questions we checked the descriptive results of the employed questionnaires Table 42 gives a short overview of the sam-plersquos response patterns in the standardized questionnaires The descriptive results of the employed questionnaires were within a normal range

To address the research questions we investigated the relation between the extracted factors of the newly developed questionnaire and questions about shop-ping behavior as well as individual personality traits Regarding RQ 2 we found positive correlations between both attitude factors and the frequency of buying organic products Fairtrade products and buying in organic supermarkets in inde-pendent shops and in other places than those listed (option ldquoelsewhererdquo) This shows that individuals with positive attitudes toward sustainability also show higher frequencies of buying sustainable products frequenting organic supermarkets and

Table 42 Descriptive values of the BFI MVS and the Monetary Choice Questionnaire

Variable M SD Range

BFI extraversion 351 096 100ndash500BFI agreeableness 306 079 100ndash500BFI conscientiousness 345 081 150ndash500BFI neuroticism 300 098 100ndash500BFI openness 382 087 100ndash500MVS centralitysuccess 230 067 100ndash456MVS happiness 262 083 100ndash500Monetary Choice Questionnaire 0017 0026 0000ndash0215

Fig 43 Descriptive results of the questions concerning shopping behavior Error bars indicate standard deviations

G Stoumlckigt et al

97

independent shops Interestingly we found negative correlations between both fac-tors and the frequency of buying in discounters This means that people with posi-tive attitudes toward sustainability tend to avoid discounters The frequency of buying on a market correlates with the behavioral consistency factor Hence only those individuals who score high on behavioral consistency do their shopping on a market in a frequent manner a general willingness to contribute to sustainability without a consistent sustainable behavior is not enough The frequency of buying in a full-range supermarket is uncorrelated with any of the two attitude factors This means that full-range supermarkets are frequented by customers regardless of sus-tainability attitudes The correlation coefficients are displayed in Table 43

Table 44 reveals results concerning RQ 3 Neuroticism correlates with the will-ingness to contribute However we found no correlations between any of the other Big Five personality traits (extraversion conscientiousness agreeableness open-ness to experience) and the new questionnaire Concerning materialism we identi-fied a negative relationship between both materialism factors and willingness We found a similar pattern for delay discounting in the Monetary Choice Questionnaire This implies that neurotic tendencies are beneficial to a moderately sustainable attitude (being willing to contribute) Contrary materialism and tendencies toward

Table 43 Correlations between relevant variables for RQ 2

Behavioral consistency Willingness

Frequency of buying organic products 0411 0451Frequency of buying Fairtrade products 0404 0378Frequency of buying in a full-range supermarket minus0034 0100Frequency of buying in a discounter minus0184 minus0218Frequency of buying in an organic supermarket 0406 0278Frequency of buying in an independent shop 0202 0252Frequency of buying on a market 0379 0157Frequency of buying elsewhere 0197 0186

p le 005 p le 001



Extraversion minus0087 0011Agreeableness minus0028 minus0028Conscientiousness 0159 0127Neuroticism 0103 0208Openness 0100 0125MVS centralitysuccess minus0008 minus0187MVS happiness minus0095 minus0209Monetary Choice Questionnaire

minus0027 minus0204

p le 005


98

discounting future rewards (ie not being willing to wait for future rewards) have the opposite effect

Discussion

The central aim of our study was to investigate sustainable consumption and pro-duction patterns (SDG number 12) in terms of consumer attitudes and individual characteristics potentially influencing sustainable purchasing behavior In contrast to most previous research the current study focused on attitudes toward the sustain-ability of logistics patterns such as the environmental impact and working condi-tions of productsrsquo transport and storage rather than of the products themselves Focusing on a category of products that are regularly purchased by almost all types of consumersmdashgroceriesmdashfirst a tailored assessment tool had to be developed Accordingly the first RQ focused on a suitable assessment method of a consumerrsquos attitudes toward sustainability in a food-logistics context The second RQ addressed relations between these attitudes and the reported sustainable purchasing behavior For the third RQ we investigated individual characteristics (namely personality traits materialism and delay discounting tendencies) in relation to the consumersrsquo attitudes toward sustainable logistics Our sample consisted of a broad mix concern-ing education and living situations

Regarding RQ 1 we developed specific items and tested response behavior in our study sample An exploratory factor analysis identified a distinct two-factorial structure in the new questionnaire The factor loadings displayed in the results sec-tion are extremely clear (all main loadings gt06 and all parallel loadings lt03) and the internal consistencies are equally good Hence we conclude that our newly developed tool assesses two facets of attitudes toward sustainability in food logis-tics The first factor (behavioral consistency) assesses an attitude toward sustain-ability indicating intentions to behave consistently in a sustainable food-logistics context The second factor (willingness) assesses an attitude toward sustainability that does not go beyond a general willingness to contribute to sustainable food logistics With this structure the questionnaire can cover a wide range of sustain-able attitudes in the considered field This can be seen from the differing mean val-ues of the two factors We recommend an increased deployment in order to enable validation in future studies

For RQ 2 we used the two extracted attitude factors to analyze correlations with sustainable purchasing behavior Despite the difference between the two factors in the response pattern we found significant correlations between both factors and

bull The frequency of buying certified organic productsbull The frequency of buying certified Fairtrade productsbull The frequency of buying in organic supermarketsbull The frequency of buying in discounters

G Stoumlckigt et al

99

The correlations between both attitude factors and choosing organic products Fairtrade products and buying in organic supermarkets are positive The negative correlation between both factors and the frequency of buying in discounters com-plete the picture Individuals who care more about sustainability in the food- logistics context tend to avoid discounters and tend to buy in organic supermarkets They also prefer organic and Fairtrade products independent of store type These correlations are valid for both the behavioral consistency attitude and the willingness attitude Although we have not investigated all aspects of Ajzenrsquos (1991) theory of planned behavior our results confirm the basic mechanism of an interplay between attitude and behavior The correlations support the attitude questionnairersquos idea and confirm the research question insofar as people with a positive attitude toward sustainability in a food-logistics context do show a sustainable grocery shopping behavior This result refers to the environmental and social dimensions of sustainability which was our focus in this study Thus the finding complements studies reporting associa-tions between sustainability-related attitudes and the (intentions to perform) sus-tainable purchasing behavior (Kumar et al 2017 Panzone et al 2016) Though we did not engage in investigating economic sustainability the positive correlations between both factors and the preference for independent shopsmdashand partly mar-ketsmdashhint toward a consumer awareness of economic sustainability The correla-tion between sustainable attitudes and a preference for independent shops can have various reasons One possible reason is that people who are aware of the ecological and social sustainability problems might also be aware of the economic challenge of keeping independent shops alive This would prevent big all-in-one stores from becoming too powerful (and from being able to dictate prices etc) and would con-tribute to a stable market equilibrium in the sense of economic sustainability However economic sustainability is a much wider field that could not be covered with the current study We recommend future experiments to investigate economic sustainability and its interplay with consumer attitudes using our questionnaire as a basis for further development The positive correlation between both attitude factors and the frequency of buying groceries elsewhere cannot be interpreted unambigu-ously as we do not know where consumers with high-frequency values in this ques-tion obtain their groceries However as Fig 43 in the Results section illustrates the option of buying groceries elsewhere holds the lowest-frequency values by far and detailed data analyses show that the majority of the sample indicated to ldquoneverrdquo buy groceries elsewhere than in those places listed Thus it would be inappropriate to speculate about how sustainable buying groceries from these unknown places might be Taken together the investigation of RQ 2 suggests that consumers with positive attitudes toward sustainability in food logistics have certain demands regarding the effectiveness of their purchasing behavior This is in line with results from a study by Gilg et al (2005) who conclude ldquoConsumers are likely to purchase in a more sustainable way if they perceive that what they are buying be that organic food or fairly traded coffee is actually going to impact on the environment and influence future policyrdquo (p 502)

RQ 3 addressed the role of individual characteristics for the attitudes toward sustainability in a food-logistics context The positive correlation between neuroti-


100

cism and the willingness factor suggests that people with higher neurotic tendencies (these include feelings like worry guilt and self-consciousness) show on average a higher willingness to support sustainable food logistics This can be because those people may worry more about environmental deterioration or may feel guilty about own non-sustainable behaviorsmdashor may be in a phase of personal development accompanied by higher degrees of self-consciousness However this degree of neu-roticism is only related to a general willingness and does not extend to a persistent behavior ie the behavioral consistency The results further reveal that the correla-tion between neuroticism and the willingness attitude is the only relationship between the Big Five personality traits and the assessed sustainable attitudes Similar results can be found in past research Hirsh (2010) and Kvasova (2015) report correlations between neuroticism and environmental concern or eco-friendly tourist behavior respectively However a major difference is that none of them found those correlations in an isolated way Along with neuroticism Hirsh (2010) found effects of agreeableness openness and conscientiousness on environmental concern Similarly Kvasova (2015) found effects of agreeableness conscientious-ness and extraversion together with neuroticism Findings like these are not entirely comparable to our study as we have focused on food logistics However beyond the research questions further analyses of our data also reveal correlations between conscientiousness and sustainable behavior (ie the frequency of buying in organic supermarkets) Regarding neuroticism it is possible that there is no direct effect but instead neuroticism could influence an unknown third variable which eventually would have an effect on willingness In other words we recommend future studies to focus on personality traits with a broader set of possibly mediating or moderating variables

Regarding the individual delay-discounting tendencies the negative correlation between the Monetary Choice Questionnaire and the willingness to contribute to sustainable food logistics indicates that people with a tendency toward low delay discounting tend to be more willing to contribute to sustainability Low delay dis-counting means that future rewards are discounted to a lesser extent ie a person has the tendency to wait for a larger reward that is due at a later point of time These are generally the more patient and less impulsive individuals The revealed mecha-nisms in combination with a sustainable attitude are in line with previous findings (Gattig and Hendrickx 2007 Hirsh et al 2015)

The negative correlations between both factors of materialism and willingness are also in line with previous research As Hurst et al (2013) state materialists independent of age and sex are less likely to see environmentally damaging behavior as a problem Kilbourne and Pickett (2008) come to a similar conclusion and see a negative effect of materialism on environmental beliefs This supports the concept of our new questionnaire The current study did not focus on the relation between materialism and behaviors However as Kasser (2005) reports negative correlations between environmental behavior and materialism in children and ado-lescents we conducted further analyses on this topic Our data show similar results for adults in terms of negative correlations between materialism and the frequencies of buying Fairtrade products organic products and of buying in organic supermar-

G Stoumlckigt et al

101

kets while the frequency of buying in discounters correlated positively with mate-rialism We could also demonstrate the negative relationship between materialism and sustainable attitudes by means of an implicit measure of sustainable attitude namely a choice-based conjoint (CBC) task that we conducted as another method of the same investigation (see Stoumlckigt et al 2018) In this CBC task participants were confronted with a set of decision scenarios in a shopping context multiple times After data collection we extracted relative importance values of specific choice-relevant attributes such as the environmental impact of groceriesrsquo produc-tion and transport The importance of sustainability-related attributes was nega-tively correlated with materialism Further by means of multiple regression analyses we identified anti- materialistic tendencies as a predictor to sustainable attitudes The findings are in line with Kilbourne and Pickett (2008) who argue that the awareness of environmental problems decreases with increasing materialistic tendencies As Kilbourne and Pickett (2008) also discuss materialism is often rein-forced in society There is a long tradition of owning goods and advertisement often suggests that buying results in happiness Regardless of product type people should reflect thoroughly whether it is really necessary to buy yet another smartphone or to put yet another car onto Europersquos overcrowded streets when there are alternatives So in order to encourage sustainable awareness consumers businesses and gov-ernments are required to change this way of thinking For instance they could encourage non- materialistic lifestyles (like reusing sharing or using goods if they last) and make these lifestyles more popular Therefore information about the sus-tainability of a productrsquos logistics is highly relevant for consumer decision-making in contexts of both supermarkets and online shops (Stoumlckigt et al 2018) This high degree of consumer willingness must be made use of by enabling consumers to act accordingly A key to this is concise and unambiguous pre-purchase sustainability information on every product eg by means of policy regulations (Stoumlckigt et al 2018)

Conclusion

The results of the current study hint toward the conclusion that the new question-naire is suitable for assessing a consumerrsquos attitudes toward sustainability in a food- logistics context We recommend further validation in future studies As an implication of the studyrsquos results future sustainability campaigns could stress the immediate positive effect of a sustainable lifestyle more so that not only consumers with low discounting parametersmdashie those who have no problem with waiting for a later rewardmdashshow a willingness to contribute to sustainability Moreover people with positive attitudes toward sustainability tend to prefer organic products Fairtrade products and organic supermarkets and they tend to avoid discounters As a possible implication of this one could discuss what kind of products should be offered in supermarkets of all kinds but especially in discounters For instance by means of choice editing suppliers have the possibility to gradually replace products


102

with sustainability impacts by more organic and fairly traded products in supermar-kets and discounters (see Gunn and Mont 2014) This way not only those consum-ers with positive attitudes toward sustainability would buy organic products instead at some point everybody would be forced to do so Alternatively policy regulations could set certain sustainability standards for all products so that eventually even low-budget products would meet enough sustainability criteria to be certified with an organic or Fairtrade label This would help people to contribute toward the achievement of the SDG especially those who do not know very much about this topic Another solution would be to lower the barriers for consumers to buy organic and Fairtrade products eg by subsidizing those products to make them competi-tive in price and thus increase their attractiveness to people with a low sustainable attitude While replacing non-sustainable products in supermarkets and discounters would be effective but risky for suppliers the other suggested solutionsmdashmaking low-budget products sustainable or subsidizing sustainable productsmdashresult in sus-tainable products being cheaper This is a relevant factor because from a consumerrsquos point of view the productrsquos price is still the most important purchasing argument both in grocery shopping and in online shopping (Stoumlckigt et al 2018) Overall the visibility of organic supermarkets and products with a respective certification should be enhanced along with easily accessible information not only about the meaning of organic labels but especially about the carbon footprint and about working condi-tions of the production and transport of all products If consumers had the direct comparison their understanding of organic and Fairtrade products and their willing-ness to buy those would probably be increased Surely willingness alone is not sufficient for a noticeable change but it can certainly facilitate developing a consis-tent behavior This consistent behavior is required to follow the willingness and showing this behavior must be made easier (eg by means of the abovementioned steps) Finally yet importantly materialistic reinforcements in society must be attenuated Politics and companies are required to shoulder responsibility in this regard For example instead of wanting consumers to frequently buy new products that have short life spans companies could focus on the robustness and durability of their products in their advertising messages Further consumers could be made more aware of using objects as long as possible and repairing instead of replacing should be encouraged and facilitated This would be a first step toward a society with sustainable consumption and production patterns as agreed upon by the UN in SDG number 12

References

Ainslie G (1975) Specious reward A behavioral theory of impulsiveness and impulse control Psychological Bulletin 82 463ndash496 httpsdoiorg101037h0076860

Ajzen I (1991) The theory of planned behavior Organizational Behavior and Human Decision Processes 50 179ndash211 httpsdoiorg1010160749-5978(91)90020-T

Black I R amp Cherrier H (2010) Anti-consumption as part of living a sustainable lifestyle Daily practices contextual motivations and subjective values Journal of Consumer Behaviour 9 437ndash453 httpsdoiorg101002cb337

G Stoumlckigt et al

103

Buerke A Straatmann T Lin-Hi N amp Muumlller K (2017) Consumer awareness and sustainability- focused value orientation as motivating factors of responsible consumer behavior Review of Managerial Science 11(4) 959ndash991 httpsdoiorg101007s11846- 016-0211-2

Collins C M Steg L amp Koning M A (2007) Customersrsquo values beliefs on sustainable cor-porate performance and buying behavior Psychology and Marketing 24 555ndash577 httpsdoiorg101002mar20173

Dittmar H amp Bond R (2010) lsquoI want it and I want it nowrsquo Using a temporal discounting paradigm to examine predictors of consumer impulsivity British Journal of Psychology 101 751ndash776 httpsdoiorg101348000712609X484658

Gattig A amp Hendrickx L (2007) Judgmental discounting and environmental risk perception Dimensional similarities domain differences and implications for sustainability Journal of Social Issues 63 21ndash39 httpsdoiorg101111j1540-4560200700494x

Gilg A Barr S amp Ford N (2005) Green consumption or sustainable lifestyles Identifying the sustainable consumer Futures 37 481ndash504 httpsdoiorg101016jfutures200410016

Gunn M amp Mont O (2014) Choice editing as a retailersrsquo tool for sustainable consump-tion International Journal of Retail amp Distribution Management 42 464ndash481 httpsdoiorg101108IJRDM-12-2012-0110

Heiskanen E amp Pantzar M (1997) Toward sustainable consumption Two new perspectives Journal of Consumer Policy 20 409ndash442 httpsdoiorg101023a1006862631698

Hirsh J B (2010) Personality and environmental concern Journal of Environmental Psychology 30 245ndash248 httpsdoiorg101016jjenvp201001004

Hirsh J L Costello M S amp Fuqua W R (2015) Analysis of delay discounting as a psycho-logical measure of sustainable behavior Behavior and Social Issues 24 187ndash202 httpsdoiorg105210bsiv24i05906

Hurst M Dittmar H Bond R amp Kasser T (2013) The relationship between materialistic values and environmental attitudes and behaviors A meta-analysis Journal of Experimental Psychology 36 257ndash269 httpsdoiorg101016jjenvp201309003

Kasser T (2005) Frugality generosity and materialism in children and adolescents In What do children need to flourish (pp 357ndash373) New York Springer httpsdoiorg1010070-387-23823-9_22

Kilbourne W amp Pickett G (2008) How materialism affects environmental beliefs concern and environmentally responsible behavior Journal of Business Research 61 885ndash893 httpsdoiorg101016jjbusres200709016

Kirby K N Petry N M amp Bickel W K (1999) Heroin addicts have higher discount rates for delayed rewards than non-drug-using controls Journal of Experimental Psychology General 128 78ndash87 httpsdoiorg1010370096-3445128178

Kumar B Manrai A K amp Manrai L A (2017) Purchasing behaviour for environmentally sustainable products A conceptual framework and empirical study Journal of Retailing and Consumer Services 34 1ndash9 httpsdoiorg101016jjretconser201609004

Kvasova O (2015) The Big Five personality traits as antecedents of eco-friendly tourist behavior Personality and Individual Differences 83 111ndash116 httpsdoiorg101016jpaid201504011

Luchs M G amp Mooradian T A (2012) Sex personality and sustainable consumer behav-iour Elucidating the gender effect Journal of Consumer Policy 35 127ndash144 httpsdoiorg101007s10603-011-9179-0

Luchs M G Naylor R W Irwin J R amp Raghunathan R (2010) The sustainability liability Potential negative effects of ethicality on product preference Journal of Marketing 74 18ndash31 httpsdoiorg101509jmkg74518

Maloni M J amp Brown M E (2006) Corporate social responsibility in the supply chain An application in the food industry Journal of Business Ethics 68 35ndash52 httpsdoiorg101007s10551-006-9038-0

McDonald S Oates C J Young C W amp Hwang K (2006) Toward sustainable consump-tion Researching voluntary simplifiers Psychology amp Marketing 23 515ndash534 httpsdoiorg101002mar20132


104

Muumlller A Smits D J M Claes L Gefeller O Hinz A amp de Zwaan M (2013) The German version of the material values scale GMS Psycho-Social-Medicine 10 1ndash9 httpsdoiorg103205psm000095

Panzone L Hilton D Sale L amp Cohen D (2016) Socio-demographics implicit attitudes explicit attitudes and sustainable consumption in supermarket shopping Journal of Economic Psychology 55 77ndash95 httpsdoiorg101016jjoep201602004

Rammstedt B amp John O P (2007) Measuring personality in one minute or less A 10-item short version of the Big Five Inventory in English and German Journal of Research in Personality 41 203ndash212 httpsdoiorg101016jjrp200602001

Schaefer A amp Crane A (2005) Addressing sustainability and consumption Journal of Macromarketing 25 79ndash92 httpsdoiorg1011770276146705274987

Severo E A de Guimaratildees J C F Dorion E C H amp Nodari C H (2015) Cleaner produc-tion environmental sustainability and organizational performance An empirical study in the Brazilian metal-mechanic industry Journal of Cleaner Production 96 118ndash125 httpsdoiorg101016jjclepro201406027

Seyfang G (2004) Shopping to save the planet A critical analysis of sustainable consumption policy and practice In ECPR joint sessions of workshops (citizenship and the environment) Uppsala Sweden pp 13ndash18

Stoumlckigt G Schiebener J amp Brand M (2018) Providing sustainability information in shop-ping situations contributes to sustainable decision making An empirical study with choice- based conjoint analyses Journal of Retailing and Consumer Services 43 188ndash199 httpsdoiorg101016jjretconser201803018

United Nations (2015) Transforming our world The 2030 agenda for sustainable development General assembly 701 25 Sept 2015 Retrieved from httpwwwundocsorgARES701

Vermeir I amp Verbeke W (2006) Sustainable food consumption Exploring the consumer ldquoatti-tude - behavioral intentionrdquo gap Journal of Agricultural and Environmental Ethics 19 169ndash194 httpsdoiorg101007s10806-005-5485-3

G Stoumlckigt et al


Chapter 5Green Bullwhip Effect Revisited How Sustainable Lifestyles Might Influence Supply Chains

Matthias Klumpp

Abstract In connection to the general bullwhip effect with increased order vol-umes upstream in the supply chain caused by the information gaps and human behavior a green bullwhip effect was proposed to have a special impact of green logistics measures in the same direction as the original bullwhip effect This is caused by a restriction in flexibility due to most green transportation measures and the human reactions to this change This contribution is discussing similar effects of further sustainability concepts as eg sustainable lifestyles and proposing a com-prehensive approach to mitigate such a further potential bullwhip effect in supply chain management

Keywords Sustainable supply chains middot Green bullwhip effect middot Sustainable logistics measures middot Sustainable lifestyle impact on order size

Introduction

Supply chains and supply chain management are key areas for the global sustain-ability challenge as this sector in 2015 accounted for 23 of greenhouse gas emis-sions within the European Union compared to only 15 in 1990 (Agrawal et al 2009) As several publications discuss all actors within supply chain management therefore are facing a special responsibility to improve in this situation in the light of overall commitments and challenges of humanity (Vachon and Klassen 2006 Halldoacutersson and Kovaacutecs 2010 Mejiacuteas et al 2016 Sudarto et al 2016 Klumpp 2018) This is highlighted by the longitudinal development of GHG as depicted in Fig 51 with the transportation sector being the only one to increase absolute as well as relative (percentage) GHG emissions from 1995 to 2014

M Klumpp () University of Goumlttingen Goumlttingen Germany

FOM University of Applied Sciences Essen Germanye-mail matthiasklumppfomde

106

Besides a sharp decline in cargo transport emissions on tonne-kilometer basis during the economic crisis in 20082009 which was due to severe output reductions across all sectors and industries the long-term trend is continuing upward despite technology and other efficiency improvements In this position the transportation and supply chain sectors are standing ldquoalonerdquo as all other emission sectors have reduced their pro rata emissions significantly due to technology advances

Therefore the ldquocall of responsibilityrdquo is really at the doorstep for logistics man-agement and research to develop viable answers in this field Three items are inter-esting for analysis in order to cope with this challenge

1 Technology innovations as for example emission-free electric trucks or ships are important innovation fields see eg Osorio-Tejada et al (2017) Davarzani et al (2016) or Brix-Asala et al (2016)

2 Organizational innovations as suggested by Dijkema et al (2006) and Heiskala et al (2016) are also necessary for sustainability improvement dealing among others with the Jevons paradox problem in this area (Klumpp 2016)

Fig 51 Greenhouse gas emissions by IPCC source sector EU28 change from 1990 to 2014 (mil-lion tonnes of CO2 equivalent and change) Source Eurostat (2018)

M Klumpp

107

3 Management innovations as intended by eg supply chain management in increasing efficiency throughout supply chains and combatting eg bullwhip effect negative impacts are contributing significantly too This is outlined further below

In a historical perspective the word sustainability (ldquoNachhaltigkeitrdquo) was coined by the German von Carlowitz as a forest management objective It entailed not to cut more trees than can grow back in a ldquosteady-staterdquo timeline view (von Carlowitz 1713) This initial proposition was developed further by milestone sustainability publications such as Limits to Growth by the Club of Rome (Meadows et al 1972) However a state-of-the-art definition of sustainability has been provided by the UN-embedded Brundtland Report (Brundtlandt 1988 p 16)

Humanity has the ability to make development sustainable to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs

This has been an important step in order to define and operationalize sustainability unifying economic environmental and social objectives (Holden et al 2014) Political agreements are increasingly applied to prevent negative consequences from human economic impact by global warming and other adverse weather effects like storms flooding and droughts The following contracts have been imple-mented The United Nations Framework Convention on Climate Change (1992) the Kyoto Protocol (1998) the Copenhagen Accord (2009) the Doha Amendment (2012) and the Paris Agreement (2015) cp UNFCCC (1992 1998 2009 2012 2015)

Regarding corporate impact sustainability is seen today as a basic management philosophy embedded in the whole corporation in all strategies processes and decisions (Vermeulen and Witjes 2016 Centobelli et al 2017) This has a specific impact on transportation logistics and the comprehensive supply chain sector Increasing interest in adopting environmental strategies along the entire supply chain can be recognized in research and business practice (Schrettle et al 2014 Seuring and Muumlller 2008) An important result is the positive influence of collabora-tion toward improvements in economic as well as ecologic and social sustainability aligned with similar research results for supply chain bullwhip mitigation efforts In addition similarly supply chain and general sustainability management approaches start with the claim to measure eg emission volumes in order to steer manage and reduce them (Colicchia et al 2013 Fahimnia and Jabbarzadeh 2016 Evangelista et al 2017 Sim and Sim 2017)

Green Bullwhip Effect Concept

In supply chain and logistics management and research one important objective is to understand and reduce increasing order lot sizes along the supply chain (upstream)mdashthe bullwhip effect (Forrester 1961 Metters 1997 Lee et al 1997

5 Green Bullwhip Effect Revisited How Sustainable Lifestyles Might Influencehellip

108

Taylor 1999 Chen et al 2000 Agrawal et al 2009 Chatfield et al 2004 Paik and Bagchi 2007 Jaksic and Rusjan 2008 Wright and Yuan 2008 Coppini et al 2010)

A standard bullwhip effect is shown in Fig 52 with a small increase in customer orders with the retail end of a supply chain (right-hand side) and increasing order lot sizes at the manufacturing and supplier stages (left-hand side) in the lower part of the figure

At the same time greening and sustainability concerns in supply chain manage-ment have increased (eg Beamon 1999 Murphy and Poist 2000 Sundarakani et al 2010) This has a special impact on the supply chain in general and bullwhip effect in particular Combining these two trends the green bullwhip effect hypoth-esis has been developed According to this excess increases in order lot sizes for each step of the supply chain can be expected once green transport means such as electric trucks are implemented in urban areas This is due to their characteristics of restricting transport flexibility The same is true for many other sustainable logis-tics measures such as alternative propulsion systems higher utilization of transport or warehouse capacities or combination of joint transport resources They all restrict the ad hoc flexibility of logistics managers and lead them to consciously or unconsciously increase their order levels in order to build up safety stocks in the supply chain This concept was first described by Klumpp (2011) and later simu-lated by Toklu et al (2013) and Klumpp et al (2016) (upper part of Fig 52) From the market point of view this was discussed mainly on the supply side of the econ-omy Now the demand side of the economy is considered below

Supply chain direction Downstream Time t

Order volumes V

Standard bullwhip effect

Green bullwhip effect

RetailerManufacturerSupplier

Fig 52 Standard bullwhip effect (lower part) and green bullwhip effect (upper part)

M Klumpp

109

Sustainable Lifestyle Impact

Deepening the outlined concept of the green bullwhip effect (GBE) the question to be addressed here is if (more) sustainable lifestyles may have a similar increasing impact on the general bullwhip effect This is connected to behavioral research on the bullwhip effect for example by Udenio et al (2017) Many causes for bullwhip effect frameworks are rooted in human behavior therefore also the question of new sustainable lifestyles as special form of human behavior is contributing to such a development

In order to analyze this four typical scenarios from end customers (B2C) and their connected order behavior are outlined and simulation of the effect on supply chain order volumes is carried out This is depicted in the Table 51 The first sce-nario A assumes that a household may not use a private car at all but from time to time divert to car-sharing or delivery services as a much-advertised form of a green lifestyle (ldquogreen urban mobilityrdquo) This has specific consequences eg for food shopping behavior and affects the order volumes of specific goods as outlined in the table In the end there might be increase order volumes (ldquopeaksrdquo) at least for spe-cific items due to such a change in B2C customer behavior

Table 51 Sustainable lifestyle scenarios

Scenario CharacteristicsTransmission Impact

(A) Food shopping without car

Smaller and day-to-day stuff is bought by walking-by routes larger stuff (beverages bulky storage goods) are bought once a week or once a month with friendsrsquo cars or delivery services

For the smaller day-to-day shopping items (milk bread etc) no changes are obvious for the larger accumulated stuff recognizable order peaks are generated once a week or month

(B) Ordering special eg energy-saving equipment (lighting etc)

Sustainable customers are ldquoopening uprdquo or accelerating new markets in this example as they flock toward innovative products like energy-saving appliances eg for household lighting

For specific sectors and products like energy-saving products significant order increases are caused Standard equipment supply chains (like normal lighting equipment) are not affected

(C) Collecting waste and recycling specific items

Households may collect individual waste items (paper metal etc) in order to contribute to recycling efforts at specific collection points throughout urban areasmdashgoing there by car or other means

Besides increased transportation this may also cause order level peaks in the closed-loop supply chains for the recycled materials

(D) Ordering special food (eg ecological farming)

Shopping sustainable food is one of the major discussion points and propositions for sustainable lifestylesmdashbuying from organic farming and ordering special local food for example instead of industrial food transported over long distances

For specific sectors significant order increases are caused eg rising order levels for organic food local food with demand peaks The standard agricultural supply chain is not affected


110

Figure 53 is outlining the analyzed effects from scenarios A to D in a compre-hensive way in the upper part of the figure (lower part presents standard bullwhip effect for comparison) Due to specific order behavior and volumes associated with sustainable lifestyles there is at least the risk identified herein that an additional order increase from the customer side is further increasing order volume throughout the supply chain (blue areas)

This can be termed as a ldquocombinedrdquo or ldquodiversifiedrdquo green bullwhip effect as besides the traditional green bullwhip effect from the supply chain actors due to green transport measures further increases in order volumes are enacted by custom-ers in their strive for sustainability

This in turn might be an important impact and subject to discussion in the profes-sional supply chain management field as outlined in the following section

Discussion

The outlined effects from the scenario analysis can be discussed and brought to other decision areas of the supply chain as follows (even though limited to four presented cases)

bull For specific areas and supply chains like special eco-friendly products (organic food energy-saving appliances) significant order peaks from the customer and market side can be expected due to the shift toward sustainable lifestyles and green consumer behavior

Supply chain direction DownstreamTime t

Order volumes V


Diversified green bullwhip effect


Sustainable lifestyle impact

Fig 53 Standard bullwhip effect (lower part) and diversified green bullwhip effect including changed customer behavior (upper part)

M Klumpp

111

bull This does not necessarily imply to the increased order levels throughout the sup-ply chains like depicted in Fig 53 but surely has the potential to make this kind of scenarios a reality Supply chain managers would have to be extra careful in avoiding such developments

bull On the other hand supply chains for standard products are facing only minimal downturns or changes in order levels due to the restricted number of customers reverting to sustainable lifestyle scenarios In this scenario political action is coming into play like the lightbulb ban within the European Union In such cases surely also traditional supply chains face severe changes although in the downward direction

bull There is also an interesting hint toward ldquocross-supply chain interactionrdquo regard-ing passenger and cargo traffic If sustainable lifestyles are the case with changes in the mobility behavior (eg not using cars collecting recycling materials) shifts from cargo to private transportation will be expected Less people with cars in urban areas for example might significantly increase the demand for taxi delivery and car-sharing servicesmdashwith an unknown total balance effect on energy consumption and emissions Further research would be interesting along such cross-sectoral lines

bull Finally another interesting question is related to the ldquosteady staterdquo Order-level changes may happen several times or they may happen once and then stay the same for a long time Both options have specific strings attached several order changes may disrupt supply chains for a long time until learning sets in In con-trast a ldquosteady-staterdquo order level may cause suspicion and the ldquoold-worldrdquo logistics managers may be inclined to increase safety stock levels ldquojust to be surerdquo Both effects may harm the overall environmental and economic sustain-ability of respective supply chain operations

Altogether diversified green bullwhip effects throughout the supply chain might hint at a possible trade-off between sustainable lifestyles and increased inefficien-cies In other words though aligned with not so green mass products standard sup-ply chains might be even more sustainable due to their mass efficiency in delivering products to the people while considering a source-to-customer comprehensive sus-tainability evaluation

This hypothesis has to be analyzed and evaluated further with pilot cases quanti-fying resource and energy use as well as GHG and other emissions

Outlook

For a final evaluation and future research endeavors a differential analysis is needed taking into account the reduced transport and order volumes in some supply chains (where sustainable customers are ldquoleavingrdquo) as well as increased transport and order volumes in the other supply chains (where sustainable customers are ldquoenter-ingrdquo or causing order peaks by their specific behavior) The balance of these effects


112

has to be summed up in order to make a final judgment if sustainable lifestyles might endanger the environmental and economic objectives of supply chains in general

Altogether it can be stated that there is a potential of higher sustainable (nega-tive) impact and inefficiency across all supply chains as we may arrive at more diversified and therefore smaller individual supply chains Product diversity and variety due to an increased product range from sustainable products and services may hamper environmental and economic efficiency at the same time

Finally the outlined research field of a comprehensive supply chain analysis regarding the impact of sustainable lifestyles seems to be interesting and warrants further research projects in this specific field at the seam of logistics and sustain-ability research

References

Agrawal S Sengupta R N amp Shanker K (2009) Impact of information sharing and lead time on bullwhip effect and on-hand inventory European Journal of Operational Research 192 576ndash593

Beamon B M (1999) Designing the green supply chain Logistics Information Management 12 332ndash342

Brix-Asala C Hahn R amp Seuring S (2016) Reverse logistics and informal valorisation at the base of the pyramid A case study on sustainability synergies and trade-offs European Management Journal 34 414ndash423

Brundtlandt G M (1988) Our common future New York World commission on Environment and Development

Centobelli P Cerchione R amp Esposito E (2017) Environmental sustainability in the service industry of transportation and logistics service providers Systematic literature review and research directions Transportation Research Part D Transport and Environment 53 454ndash470

Chatfield D C Kim J G Harrison T P amp Hayya J C (2004) The bullwhip effect-impact of stochastic lead time information quality and information sharing A simulation study Production and Operations Management 13 340ndash353

Chen F Ryan J K amp Simchi-Levi D (2000) The impact of exponential smoothing forecasts on the bullwhip effect Naval Research Logistics 47 269ndash286

Colicchia C Marchet G Melacini M amp Perotti S (2013) Building environmental sustain-ability Empirical evidence from logistics service providers Journal of Cleaner Production 59 197ndash209

Coppini M Rossignoli C Rossi T amp Strozzi F (2010) Bullwhip effect and inventory oscil-lations analysis using the beer game model International Journal of Production Research 48 3943ndash3956

Davarzani H Fahimnia B Bell M amp Sarkis J (2016) Greening ports and maritime logistics A review Transportation Research Part D Transport and Environment 48 473ndash487

Dijkema G P J Ferra P Herder P M amp Heitor M (2006) Trends and opportunities fram-ing innovation for sustainability in the learning society Technological Forecasting and Social Change 73 215ndash227

Eurostat (2018) Transport performance EU-28 1995-2014 Retrieved May 3 2018 from httpeceuropaeueurostatstatistics-explainedimages55cGreenhouse_gas_emissions_by_IPCC_source_sector2C_EU282C_change_from_1990_to_2014_28million_tonnes_of_CO2_equivalent_and_25_change29_newpng

M Klumpp

113

Evangelista P Colicchia C amp Creazza A (2017) Is environmental sustainability a strategic priority for logistics service providers Journal of Environmental Management 198 353ndash362

Fahimnia B amp Jabbarzadeh A (2016) Marrying supply chain sustainability and resilience A match made in heaven Transportation Research Part E Logistics and Transportation Review 91 306ndash324

Forrester J W (1961) Industrial dynamics Portland httpswwwamazondeIndustrial-Dynamics-Jay-Wright-Forresterdp1614275335

Halldoacutersson A amp Kovaacutecs G (2010) The sustainable agenda and energy efficiency Logistics solutions and supply chains in times of climate change International Journal of Physical Distribution and Logistics Management 40 5ndash13

Heiskala M Jokinen J-P amp Tinnilauml M (2016) Crowdsensing-based transportation services ndash An analysis from business model and sustainability viewpoints Research in Transportation Business amp Management 18 38ndash48

Holden E Linnerud K amp Banister D (2014) Sustainable development Our common future revisited Global Environmental Change 26 130ndash139

Jaksic K amp Rusjan B (2008) The effect of replenishment policies on the bullwhip effect - A transfer function approach European Journal of Operational Research 184 946ndash961

Klumpp M (2011) Green bullwhip effect simulation concept In P Navais J Machado C Analide amp A Abelha (Eds) The 2011 European simulation and modelling conference Conference proceedings October 24-26 (pp 263ndash265) Portugal Guimaraes

Klumpp M (2016) To green or not to green A political economic and social analysis for the past failure of green logistics Sustainability 8(5) 441

Klumpp M (2018) How to achieve supply chain sustainability efficiently Taming the triple bot-tom line split business cycle Sustainability 10(2) 397

Klumpp M Toklu N E Papapanagiotou V Montemanni R amp Gambardella L M (2016) Green bullwhip effect cost simulation in distribution networks In H Kotzab J Pannek amp K D Thoben (Eds) Dynamics in logistics Lecture notes in logistics Cham Springer

Lee H L Padmanabhan V amp Whang S (1997) Information distortion in a supply chain The bullwhip effect Management Science 43 546ndash558

Meadows D H Meadows D L Randers J amp Behrens W W (1972) The limits to growth New York Universe Books

Mejiacuteas A M Paz E amp Pardo J E (2016) Efficiency and sustainability through the best practices in the logistics social responsibility framework International Journal of Physical Distribution and Logistics Management 36 164ndash199

Metters R (1997) Quantifying the bullwhip effect in supply chains Journal of Operations Management 15 89ndash100

Murphy P R amp Poist R F (2000) Green logistics strategies an analysis of usage patterns Transportation Journal 40 5ndash16

Osorio-Tejada J L Llera-Sastresa E amp Scarpellini S (2017) A multi-criteria sustainability assessment for biodiesel and liquefied natural gas as alternative fuels in transport systems Journal of Natural Gas Science and Engineering 42 169ndash186

Paik S amp Bagchi P K (2007) Understanding the causes of the bullwhip effect in a supply chain International Journal of Retail amp Distribution Management 35 308ndash324

Schrettle S Hinz A Scherrer-Rathje M amp Friedli T (2014) Turning sustainability into action Explaining firmsrsquo sustainability efforts and their impact on firm performance International Journal of Production Economics 147 73ndash84

Seuring S amp Muumlller M (2008) From a literature review to a conceptual framework for sustain-able supply chain management Journal of Cleaner Production 16 1699ndash1710

Sim J amp Sim J (2017) Air emission and environmental impact assessment of Korean automo-tive logistics Journal of Cleaner Production 159 130ndash140

Sudarto S Takahashi K amp Morikawa K (2016) Efficient flexible long-term capacity planning for optimal sustainability dimensions performance of reverse logistics social responsibility A system dynamics approach International Journal of Production Economics 184 179ndash192


114

Sundarakani B de Souza R amp Goh M (2010) A sustainable green supply chain for globally integrated network In L Wang amp S C Koh (Eds) Enterprise networks and logistics for agile manufacturing (pp 191ndash206) London Springer

Taylor D H (1999) Measurement and analysis of demand amplification across the supply chain International Journal of Logistics Management 10 55ndash70

Toklu N E Papapanagiotou V Klumpp M amp Montemanni R (2013) An ant colony approach for a 2-stage vehicle routing problem with probabilistic demand increases In Proceedings of FORS40 - Finnish Operations Research Society 40th Anniversary Workshop (pp 5ndash8)

Udenio M Vatamidou E Fransoo J C amp Dellaert N (2017) Behavioral causes of the bull-whip effect An analysis using linear control theory IISE Transaction 49(10) 980ndash1000

United nations framework convention on climate change UNFCCC (1992) United nations framework convention on climate change Bonn Germany Climate Change Secretariat

United nations framework convention on climate change UNFCCC (1998) Kyoto Protocol Bonn Germany Climate Change Secretariat

United nations framework convention on climate change UNFCCC (2009) Copenhagen accord 2009 Bonn Germany Climate change secretariat

United nations framework convention on climate change UNFCCC (2012) Doha amendment to the Kyoto protocol 2012 Bonn Germany Climate change secretariat

United nations framework convention on climate change UNFCCC (2015) Paris agreement 2015 Bonn Germany Climate change secretariat

Vachon S amp Klassen R D (2006) Extending green practices across the supply chain The impact of upstream and downstream integration International Journal of Operations amp Production Management 26 795ndash821

Vermeulen W J V amp Witjes S (2016) On addressing the dual and embedded nature of business and the route towards corporate sustainability Journal of Cleaner Production 112 2822ndash2832

Von Carlowitz H-C (1713) Sylvicultura Oeconomica Leipzig Germany JF BraunWright D amp Yuan X (2008) Mitigating the bullwhip effect by ordering policies and forecasting

methods International Journal of Production Economics 113 587ndash597

M Klumpp


Chapter 6Communicating Sustainable Logistics Innovations to Various Consumer Groups

Sarah Lubjuhn Martine Bouman Roel Lutkenhaus and Klaus Krumme

Abstract Advancing sustainable logistic processes requires transitions on consumer side too ie changes in knowledge attitudes and lifestyle behaviors With this perspective the scientific field of sustainability communication has demonstrated the importance of tailor-made (sub-)target group communication that goes beyond the frequently used ldquoone-size-fits-allrdquo communicative approach

Up to now little is known about how to effectively communicate sustainable logistics innovations to relevant consumer groups This research study aims at designing adequate communication strategies that make potential innovations such as a fair logistics label for products or a sustainable logistic button for online shopping attractive for consumers The following research questions are answered

(RQ 1) What are target group-specific patterns with respect to sustainable logistics processes

(RQ 2) Based on RQ1 which communication scenarios facilitate the use of sustainable logistics innovations of various consumer groups

This article presents six consumer communication scenarios in the field of online fashion and sustainable products in grocery stores The development of these communication scenarios is based on a qualitative pre-study (N = 10) and a quantitative study (N = 355) with consumers aged between 20 and 40 who order fashion online and who buy sustainable products in grocery stores

Based on (a) the analysis of knowledge attitudes and practice (b) media and communication preferences of the target group members as well as (c) their preferences for various sustainable logistics innovations and how they should be shaped in practice the communication scenarios were developed to effectively reach these groups

S Lubjuhn () middot M Bouman middot R LutkenhausCenter for Media amp Health Gouda The Netherlandse-mail lubjuhnmedia-healthnl

K KrummeCentre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germanye-mail lubjuhnmedia-healthnl

116

Keywords Communication strategies on sustainable logistics innovations middot Target group specific patterns middot Consumer groups middot Consumer lifestyles and behavior middot Sustainable logistics button middot Communication scenarios

Aim and Research Question

Advancing sustainable logistics processes requires transitions on consumer side too ie changes in knowledge attitudes and lifestyle behaviors (Krumme et al 2015) With this perspective the scientific field of sustainability communication has demonstrated the importance of tailor-made (sub-)target group communication that goes beyond the frequently used ldquoone-size-fits-allrdquo communicative approach (Reinermann et al 2014 BMUBUBA 2015 Lubjuhn and Bouman 2015)

Up to now little is known about how to effectively communicate sustainable logistics innovations to relevant consumer groups (Mont 2007) This research study aims at designing adequate communication strategies that make potential sustainable logistic innovations (such as a fair logistics label for products or a sustainable logistics button for online shopping) attractive for consumers The focus of our research is on shopping online fashion andor buying sustainable products in the supermarket The following research questions are answered

(RQ 1) What are target group-specific patterns (including media preferences knowledge and educational level and values) with respect to sustainable logistics processes among different consumer groups

(RQ 2) Based on the findings of RQ1 which communication scenarios can facilitate the use of sustainable logistics innovations of various consumer groups

The answers to these questions result in the design of communication scenarios presented in this article

Theoretical Framework

There are two theoretical notions integrated into the framework of the research process the stages of behavior change theory (Prochaska et al 1992 2002) and the sources of influence model (Grenny et al 2013)

The stages of behavior change theory assume that target group members follow different stages of behavior change with respect to a problem (stage 1) no knowledgeawareness of the problem (stage 2) knowledgeawareness (stage 3) intention to act and (stage 4) action and maintenance

The idea behind the model is that first the stage of behavior change of a target group member must be identified before measures can be developed to address and reach them Four different stages of change have been formulated for the field of ldquosustainable logistics and online fashionrdquo as well as ldquobuying sustainable products in

S Lubjuhn and M Bouman

117

the supermarketrdquo These stages were used in the process of developing various com-munication scenarios based on the results of the qualitative and quantitative studies

The communication scenarios which are described below include recommendations on how to address target group members to reach the next stage respectively to maintain their behavior change on long term

The source of influence model (Grenny et al 2013) differentiates between six main influential factors that allow change to happen (1) personal motivation (2) personal ability (3) social motivation (are there eg people in the environment who facilitate or who hold someone off) (4) social ability (is someone dependent on others to act a specific way) (5) structural motivation (are there eg legislations who facilitate a specific behavior or not) and (6) structural ability (are there eg special means to perform a behavior which are not accessible to someone)

The source of influence model shows how complex behavior change can be In practice complex problems (and their solutions) are often treated as simple ones and it is assumed that solutions are easy and linear (Papa et al 2006 Westley et al 2007) Grenny et al (2013) assume that the tipping point to complex problems is reached when four out of the six influential factors are tackled Then the probability is high that complex problems can be solved and behavior can be changed

For this research the sources of influence model structure were applied through tackling the six relevant factors that are crucial to behavior change for each communication scenario

Method

Participants

The following target group members (or study participants) for this study have been selected people aged 20ndash40 years who buy online fashion andor who are interested in buying sustainable products in the supermarket Beside these two main categories the criteria ldquodegree of urbanizationrdquo and the ldquoeducational levelrdquo of the target group members have been taken into account (SINUS 2017) Also it was important to know whether the study participants live in a relationship or not and whether they have children or not because this can be of influence on their shopping behavior

Research Methodology

In order to be able to design communication scenarios for sustainable logistic innovations we conducted two research studies First an explorative qualitative study (N = 10) has been implemented followed up by a larger quantitative study (N = 355) The results from the explorative qualitative study were used to design and pretest the survey questionnaire Study participants of the quantitative study were enrolled via an online panel

6 Communicating Sustainable Logistics Innovations to Various Consumer Groups

118

Both studies had three different research topics (1) knowledge attitudes and practices of the study participants with respect to shopping online fashion andor buying sustainable products in the supermarket (including stages of change) (2) knowledge and attitude toward sustainable (future) logistics innovations and (3) communication and media channels that are used by the study participants

In this larger quantitative survey we incorporated questions about the various stages of change Respondents could score on various items such as ldquoI am aware that I have to consider sustainable transport and delivery conditions when buying fashion online but at the moment I donrsquot do itrdquo (stage 2 knowledgeawareness) or ldquoWhen I order fashion online the next time I would like to place a sustainable orderrdquo (stage 3 intention to act) This information can help to design communication interventions that can guide target group members from eg stage 2 (knowledgeawareness) to stage 3 (intention to act) or even to stage 4 (action and maintenance)

Table 61 gives an overview on the sustainable logistics innovations that were selected for this study on the consumer criteria relevance convenience costs for the consumer and applicability in everyday life

Results

The communication scenarios being focused on sustainable logistic innovations (described in Table 61) are presented in this section They are developed for various stakeholders such as business companies nongovernmental organizations and

Table 61 Overview of sustainable logistic innovations

Aima Sustainable logistics innovation

Online fashion (OF) sustainable products in the supermarket (SPS)

Does it already exist

Creating transparency

ndash Sustainable logistics quality label

SPS No

ndash Information terminalsbquo ldquosustainable logisticsrdquo in the supermarket

SPS No

ndash Information on the shopping receiptb

SPS No

Optimize logistic chains

ndash Sustainable logistics button (SLB)

OF Sometimes

Reduce return orders

ndash High-quality visualization fitting tool in online shops

OF Sometimes

ndash Bonus system for consumers who do not cause return orders

OF Sometimes

aAlso compare DCTI (2015)bThis innovation was originally integrated in the explorative qualitative study However this was later skipped in the quantitative study because study participants did not find it useful to introduce this option in practice


119

policymakers They aim to give an overview on the potential actions which might be taken by these stakeholders in practice The choice for the target group for each scenario the recommendations for the implementation and the communication and media preferences are based on the qualitative and quantitative study results (see also Lubjuhn and Bouman 2017a 2017b Lubjuhn et al 2017)

Communication Scenario 1a Sustainable Logistics Button (SLB) for the Target Group Members Who Buy Clothes in Online Shops of Lower Price Segments

Target Group

bull Womenbull Especially women with a lower educational level (German ldquoReal- or

Hauptschulerdquo degree)bull Especially women with less money availablebull This target group buys clothes eg at kik bonprix oder CampA

The primary aim of this communication scenario is to optimize the logistics chain through the application of a sustainable logistics button (SLB) With a SLB we mean a sustainable alternative to the conventional order which takes eg into account environmental impact of the product delivery or if the deliverer has acceptable working conditions

Stage of Change

This female target group is in the stages 1 and 2 ldquo(no) knowledgeawarenessrdquo The majority of this group is not aware of the fact that either sustainability issues in general or sustainable logistics can be taken into consideration when shopping fashion online Target group is willing to use a SLB under specific circumstances if they have no disadvantages from it

I would use such a button (SLB) I am always willing to do something good however there should be less or no disadvantages for me

Ordering Process

During the online ordering procedure this group wants to situate the SLB at the location where the ordering details are checked and the order is placed In addition this group wants to be informed at the beginning of the ordering process that there


120

is a sustainable alternative eg when they get interested in a fashion item They want to be reminded several times that there is the SLB available

I would place the SLB on the website where you check everything On this site I am always very concentrated and calm (she laughs) I check if the size is correct I check my address the price my bank details and everything At this point I would like to have the option for the SLB

Willingness to Pay Additional Costs and Have a Longer Waiting Time

Women who buy low-price online fashion are not willing to spend additional money for a sustainable logistics delivery However they are willing to wait longer for the sustainably delivered fashion item

Approximately 40 of the female participants indicate that they are willing to wait 1ndash3 days longer for a sustainable delivery Approximately another 40 would wait 4ndash6 days longer and the rest would wait even 7 days or more Hence if it is not a rush order eg if the clothes are urgently needed for an upcoming wedding or party longer waiting times are accepted for a sustainable logistics delivery

It would be an option to combine the application of a SLB with a bonus system (see ldquoCommunication Scenario 3rdquo) so that the incentive to use this sustainable logistics innovation is even higher for this target group

Background Information

This group likes to receive background information on the SLB if this information is short and understandable for them Also they want to receive background information on the same website where one can activate the SLB External links with more information about the SLB are not welcome

Communication and Media Preferences

It is important to address this target group through specific items in the web shop A short information box including a checklist can catch the attention of these females Moreover storytelling elements combined in a short awareness-raising clip are useful to make the SLB attractive to the target group members Elements of the entertainment-education strategy (Bouman 1999) in which entertaining and educational elements are combined are recommended to be used The qualitative research showed that this female target group is keen to have a short clip that portrays everyday life They can eg very much relate to the topic of the delivererrsquos working conditions Thus a possible story could address which things would change for the deliverer if the client orders her clothes with the SLB

I would love to have a short video clip which entertains and also informs me Maybe a pop up which I have to watch before proceeding my order (she laughs)

The clip should be emotional moving and short


121

This target group enjoys watching TV especially private broadcasting channels They like to watch entertainment shows especially soaps and telenovelas they read TV guides and women magazines (offline and online) and they frequently use Facebook Facebook Messenger as well as WhatsApp

Starting Points for Change

Which matters should be taken into consideration to sensitize this target group for the SLB The following overview shows measures which enhance the probability that the female target group members who buy low-price online fashion can be effectively addressed through a SLB

Motivation Ability

Personal To motivate the target group personallyhellip ndash Framing ldquodo something

goodrdquo and ldquoorder sustainably and only wait a little longerrdquo The use of nudging elements could also be effective here

To enable the target group personallyhellip ndash Short and easy to understand information

about the SLB ndash Take preferences on background

information and ordering options into account ndash Make sustainable logistics orders possible

through ldquoone clickrdquoSocial To motivate the target group

socially (use group dynamics)hellip ndash Take ldquoTell-a-friendrdquo option

into consideration incl Facebook (site share) Facebook Messenger and WhatsApp

ndash Use the option ldquoClients who ordered this item also used the SLBrdquo

To enable the target group sociallyhellip ndash Services of the fashion web shop eg a

service hotlineA service team could assist if a target group member is thinking of using the SLB but has questions about it eg about the ordering process or how to order it technically This group of women often feels embarrassed when having questions It is thus recommendable to create a service for them that addresses this challenge (indirectly)

Structural To motivate the target group structurallyhellipIt is helpful to consider the following questions before introducing the SLB in the web shop ndash (1) Is a SLB accepted by

different stakeholders in the company (2) Which consequences does the answer to this question have for the design and implementation of the SLB

ndash To what extent does the SLB fit to the holistic sustainabilityCSR strategy of the company

This level plays a less significant role


122

Communication Scenario 1b Sustainable Logistics Button (SLB) for the Target Group Members Who Buy Clothes in Online Fair and Eco-Fashion Shops

Target Group

bull Women and men having a higher educational level (in Germany above ldquoMittlere Reiferdquo)

bull Women and men with more money availablebull This target group eg buys clothes online eg at Hessnatur andor Armedangles

The primary aim of this communication scenario is to optimize the logistics chain through the application of a sustainable logistics button (SLB)

Stage of Change

This target group is (well) informed about sustainability topics and fashion and these women and men buy clothes (more or less often) in fair and eco-fashion web shops This group already acts sustainably (stage 4 actionmaintenance) and it is important to give them incentives to maintain their behavior This group of people welcomes innovations like the SLB and is willing to use them Fair and eco-fashion shops can be recommended not only to introduce the SLB as an alternative to the conventional delivery but to consider the SLB as the only delivery option as several fair and eco-fashion shops already do in Germany

Ordering Process

Women and men who can be targeted through this communication scenario already have made some experiences with sustainable logistics options such as ldquoDHL GoGreenrdquo or ldquoCO2 neutral deliveryrdquo During the ordering process they want to situate the SLB at the point where they check their ordering data and place their order Moreover it is recommendable to already address the SLB option when they put items in the shopping basket

Willingness to Pay Additional Costs and Have a longer Waiting Time

This target group is willing to pay more for a sustainable logistic delivery The costs should not extend 4 euro per each delivery Also this group is willing to wait up to 6 days longer for their sustainable logistics delivery (some group members would even be willing to wait longer)

I would definitively wait longer for my products if it would not take a month or so

In general men of the target group are less willing to wait longer for their sustainable logistics delivery in comparison to women


123

It would be an option to combine the application of a SLB with a bonus system (see ldquoCommunication Scenario 3rdquo) This option would especially be attractive for those target group members who are not yet regular customers at fair and eco- fashion web shops


This group is interested in receiving background information about the SLB They find it attractive to receive this information on an external website The link to this external website should be situated where the target group members check their order details and place the order This group also explicitly asks for additional infor-mation about the SLB with various links available

I would trust such an initiative without asking However background information on the SLB should be available This would be important for me so I can check the information when I have some time


This target group needs to be addressed through the web shop itself In comparison to the other groups the women and men probably use the SLB without initiating additional communication activities They are already aware of sustainability (logis-tics) topics in the field of fashion and act on it

When introducing the SLB it is important to give information on this sustainable delivery alternative clearly and transparently For this target group it would be attractive to receive background information about the SLB by using an animated short clip The clip should give various facts about the measures the company imple-ments in the field of sustainable logistics

This target group prefers television (public and private broadcasting stations) social media (especially Facebook and Pinterest) and messenger services (such as WhatsApp Facebook Messenger Threema) These are good channels to use for follow-up communication


Which starting points can be used so that the target group (increasingly) uses the SLB As mentioned earlier this group of women and men is easy to reach They only need little if no additional incentives to use the SLB The following overview shows examples of measures which fair and eco-fashion companies can implement in their web shops to address this target group with a higher educational level and who (by tendency) have more money available


124

Motivation Ability

Personal To motivate the target group personallyhellip ndash Address the awareness of sustainabilityThe use of nudging elements could also be effective here

To enable the target group personallyhellip ndash Detailed information on SLB ndash Consider background

information and ordering process preferences

Social To motivate the target group socially (use group dynamics)hellip ndash Take ldquoTell-a-friendrdquo option into

consideration incl Facebook (site share) Facebook Messenger and WhatsApp

To enable the target group sociallyhellip ndash Offer services on SLB in the

fashion web shop (eg hotline chat function etc)

Structural To motivate the target group structurallyhellip ndash Give a more detailed overview on the

sustainability (logistic) activities of the web shop

ndash Inform about the SLB via newsletters social media and other channels


Communication Scenario 2 High-Quality Visualization Fitting Tool in Online Shops for the Target Group Members

Target Group

bull Women who do not (yet) buy items in online fair and eco-fashion shopsbull Especially women with one or more childrenbull Especially women who live in a relationship

The primary aim of the communication scenario is to reduce the reverse logistics through the use of a high-quality visualization tool for virtual fitting rooms in online shops

Stages of Change

Target group members of this communication scenario are mainly in stage 1 or stage 2 having ldquo(no) knowledgeawarenessrdquo of the issue They are less or not aware that sustainability aspects in general and especially sustainable logistics aspects can be taken into consideration when doing online fashion shopping If this group can save time andor money through a high-quality visualization tool in a virtual fitting room they are willing to use this tool on a regular basis under specific circumstances

Content Virtual Fitting Room

This group of women has some ideas about how such a virtual tool can look like however only a few of them have used such a fitting tool in practice eg for sun-glasses Most of the target group members think that such a tool works in a


125

following way the client uploads a picture of the whole body and with this picture it is possible to fit various fashion items Women from this target group would be willing to use such a high-quality fitting tool for t-shirts shoes and boots skirts and dresses sweaterswaistcoats jackets accessories (eg hat) trousers or glasses

Use of the Tool and Return Orders

Especially those women with children and those who live in a relationship indicate that such a virtual fitting tool would help them to reduce their rate of return orders as well as to make better choices when ordering clothes online At the same time they are not sure if such a tool is able to realistically depict their body measurements Thus when implementing such a tool in reality it is very important for the target group members to have a high-quality fitting tool which deals with the wishes and needs of the target group In the future it eg would be possible to involve virtual or augmented reality elements for this tool to guarantee a more authentic visualization

I think I would put less into the shopping basket when I have such a high-quality fitting tool I could then see lsquookay this woman is also not really thin like me and the t-shirt eg does not suit that well in this sizersquo However it really must be a high-quality tool otherwise it makes no sense for me

If I could see how the fabrics are how the skirt letrsquos say lsquomovesrsquo that would be great I would definitively be willing to try and use the tool and I can imagine that it would help me to reduce my rate of return orders

This group of women has less time and they want to use a tool that gives them a quick overview and makes it possible to facilitate their decision to (not) order a fashion item

A virtual fitting tool where the clients need to measure their own size is not an option for the target group It must be a tool where time can be saved eg through a webcam that automatically measures the body size and gives recommendations for specific fashion items

Data Privacy

A small minority of the target group thinks critically about the high-quality virtual fitting room because they do not want their body measurements to be shared with the online shop When introducing such a tool it would be very important to address such an issue eg through letting the target group members decide on their own if they want their personal data to be saved in the web shop or not These kinds of measures enhance the probability that the target group members can effectively be addressed through a high-quality virtual fitting room


126


In the case of the virtual fitting tool the target group should be addressed through the web shop itself The client can eg be advised to use the tool when she virtually enters the fashion web shop or when she is interested in a fashion item For the target group it is appealing to create a short clip which describes how the visualization tool works and which advantages the client has from using this tool

Target group members can be effectively addressed through social media (especially Facebook) In addition women from this group frequently watch private broadcasting channels and especially entertainment media shows such as soaps or telenovelas Many of them like to read TV guides and women maga-zines (offline and online) and they frequently use messenger services such as WhatsApp


Which starting points for change can be applied so that the target group members frequently use a high-quality virtual fitting tool with the aim to reduce the rate of return orders The following overview shows examples of measures that can strengthen the motivation and the ability of the targeted women with children andor living in a relationship

Motivation Ability

Personal To motivate the target group personallyhellip ndash Address the saving in time The tool

enhances the probability that the ldquorightrdquo fashion item can be found quickly

ndash Rate of return orders can be minimized To send the fashion items back sometimes also can be hectic for the targeted woman

ndash Address that the target group members can do something for the environment (eg to help the company to act more sustainably in the field of logistics)

ndash For target group members who like to fit clothes Make it fun Addressing the ldquofun-factorrdquo and the authenticity of the tool

ndash The use of nudging elements could also be effective here

To enable the target group personallyhellip ndash Detailed information on the

virtual fitting tool ndash A short clip andor pop-ups that

describe(s) how the tool works


127

Motivation Ability



ndash Show experiences of other clients who have used the tool

ndash When successful spread the word about the innovative visualization tool via media (magazines TV newspapers) wherever possible

To enable the target group sociallyhellip ndash Offer services for the innovative

tool (a hotline chat function etc)

Structural To motivate the target group structurallyhellip ndash Show why it is important in general

to reduce the reverse logistics and why the company is working on this

ndash Use newsletter social media and other channels to inform about the virtual visualization tool

To enable the target group structurallyhellip ndash Implement different versions of

the innovative tool eg there could be a version for clients having ldquofast internet accessrdquo with virtual or augmented reality elements and a slower version eg for mobile internet

Communication Scenario 3 Bonus System for the Target Group Members Who Do Not Cause Return Orders

Target Group

bull Women and men who buy or do not (yet) buy items in online fair and eco-fashion shops

bull Especially women and men who live in rural areas (lt20000 inhabitants)

The primary aim of this communication scenario is to reduce the reverse logistics through increasingly establishing bonus systems in fashion shops

Bonus System as a Reward for All Target Group Members

A bonus system for clients who do not cause return orders is very popular among the members of the target group Not only those women and men who order a lot but also those who only sometimes order fashion online are interested to use such a system The main success factor is the reward that everyone gets when using such a bonus system

I do not order so many clothes online Only now and then and I almost never send them back However if I have to pay as much money as someone who often returns herhis orders I would be angry Such a reward system is different I like the idea very much


128

Stages of Change

The Target Group Is on Different Stages of Change

bull Women and men who do not (yet) buy items in online fair and eco-fashion shops stages 1 and 2mdashldquo(no) knowledgeawarenessrdquo

bull Women and men who buy items in online fair and eco-fashion shops stage 4mdashldquoactionmaintenancerdquo

What all target group members have in common is that they think very positively about the introduction of a bonus system for clients who do not cause return orders

Reducing Return Orders

Women and men from the target group highly agree on the statement that such a bonus system would be an incentive for them not to order (in different sizes) and return less fashion items This is also true for the target group members living in rural areas of Germany

Whether such a bonus system really can be an incentive (especially for clients who order and return a lot) depends on the implementation of the system in the web shop and how the bonus system fits the needs of the respective clients

Implementation

Target group members find different bonus systems attractive This could be a system that gives a price reduction on the next item to buy when an order is not returned Another idea is that the client can collect smaller amounts of money or points and shehe decides when to use the bonus points For the target group members it is very important that they have an additional benefit using the bonus system To become more aware of how an additional benefit can look like for the client it is recommendable that the web shop implements a client survey before launching the bonus system The results may show how a bonus system should look like in order to decrease return orders for this specific client group

Variables with an impact on the behavior of ordering fashion and returning it include the value of the reward one receives the validity time frame of the bonus and the reminding options of the web shop to use the bonus

For every fashion item you buy you get three euro on your bonus account This money you can use when you buy the next item This bonus you can use for three months otherwise the three euro are gone This time frame is too short and three euro is not enough This is not an incentive for me I continue to order a fashion item in different sizes and return the stuff that does not fit

The target group members would be willing to use such a bonus system either when a web shop introduces such a system on its own or when a web shop collaborates


129

with the other web shops so that the client can collect bonus points at various shops The advantage from a collaboration is seen in the fact that more bonus points can be collected The advantage of collecting the point in each shop is seen in the fact that the personal data of the clients is not shared with the others


There are a lot of possibilities to address the target group members with such a bonus system

When ordering in the web shop the client can be pointed to the bonus system if shehe gets interested in a fashion item andor when the client puts the item into the shopping basket

A big advantage of this innovation is that it is easy to explain and understand Also the probability is high that target group members like the bonus system very much

Given this the bonus system has a high potential to show the clients the importance to stimulate sustainable logistics processes in the fashion industry and the necessity to reduce the reverse logistics

To explain this an animated short clip would suit to target group members who already buy in fair and eco-fashion shops For those clients who do not yet buy in fair and eco-fashion web shops a clip with storytelling elements would be more appealing

For targeting group members outside the web shop it is crucial to consider the media preferences of the group The following bullet points give some examples

bull Video channels via YouTube target group members having a higher educational background can also be addressed via Vimeo Periscope Ooyala and Brightcove

bull Social media especially Facebook and Instagram Men more often use Twitter women of this target group use more often Pinterest Twitter Pinterest and LinkedIn are mainly used by target group members who have a higher educational background

bull Storytelling and entertainment-education elements especially for such subgroups who are not yet interested in sustainability information and who do not buy in fair and eco-fashion shops (subgroup who are on the stage of change 1 and 2 (no) knowledgeawareness)

bull Using videosoaps vlogs blogsbull Using entertainment media on private broadcasting channels such as soaps

mainly watched by womenbull Magazines male target group members are especially interested in news

magazines or magazines for a specific interest Women like to read TV guides and women magazines (offline and online)


130


Here the question on how such a bonus system should be implemented in a web shop in order to actually reduce return orders is as important as the question how to get target group members to use the bonus system The following overview documents the measures on the level of motivation and abilities of the target group members

Motivation Ability

Personal To motivate target group membershellip ndash Address the award when not returning orders ndash Exemplify through calculations how fast

using such a bonus system can pay off ndash The use of nudging elements could also be

effective here

To enable the target group membershellip ndash Clear and

understandable information about the bonus system in the web shop

Social To motivate the target group socially (use group dynamics)hellipFor those who do not buy in fair and eco-fashion shops ndash Take ldquoTell-a-friendrdquo option into consideration

incl Facebook (site share) Facebook Messenger and WhatsApp to show which savingsawards the client has gotten and how much shehe increased the ecological footprint

ndash Document through calculation examples (eg a clip) which fashion item the clients bought from herhis bonus

To enable the target group sociallyhellip ndash Establish services for

the bonus system (hotline chat function etc)

Structural In the web shophellipTo motivate the target group structurally is helpfulhellip ndash To show why it is important to reduce return

orders and why the company is working on this ndash To offer a reminder to use the bonus ndash To use an animated clip or a video with

storytelling and entertainment-education elements to exemplify sustainable logistics and awareness raising for reverse logistics at the web shop

ndash To inform via newsletter social media and other channels about the bonus system


Communication Scenario 4 Sustainable Logistics Supermarket Quality Label for the Target Group Members

Target Group

bull Women and men who buy sustainable products in the supermarketbull Especially Men and women who are aware of sustainability topics and who

often buy sustainable products (consumers who are aware or convinced)


131

The primary aim of this communication scenario is to create transparency in the field of sustainable logistics

Acceptance

Target group members like the idea to introduce a sustainable logistics quality label They can easily be addressed through such a label

Stages of Change

Target group members are in different stages of change There is a subgroup the so-called nonconsumers or the coincidentally consumers (Oumlkobarometer 2016) who consume less or no sustainable products in the supermarket They are on the stage of change ldquo(no) knowledgeawarenessrdquo (level 1ndash2) However especially those people who consume sustainable products and who are on the stage of change ldquoactionmaintenancerdquo (level 4) are interested in this quality label Those people can be called the aware consumers or the convinced consumers (Oumlkobarometer 2016)

Initiator of the Quality Label and Implementation

The majority of the target group wishes to have the government or a related institution as the initiator of the quality label

For me it would be important that the quality label is established in collaboration with a renowned organization and is supported by the federal government

When implementing such a label it is recommendable to give short information about the sustainable logistics on the back of the product The target group members wish to receive additional information on a specific website (eg compare the website of the quality label Blauer Engel) This information will be mainly used by consumers who are aware of the problem (stage 4) Especially men of the target group with a high educational background would use such a website with additional information

With respect to such a label it would be very important for me that the initiator communicates lsquohey this quality label stands for transparency and when you buy it you buy a product with sustainable logistics behindrsquo And the quality label should also clarify how unsustainable other products are which do not have this label

Building Confidence

Transparency credibility and high-quality standards are central pillars for the success of the sustainable logistics quality label They are very important for the target group members The majority of the target group does not like the development


132

that various companies invent their own quality label Thus for a sustainable logistics quality label the regulation of a renowned organization andor government is crucial

This quality label should be regulated by the government or a comparable organization (hellip) So that everyone knows okay I can really count on this

A fair logistics quality label would be important for me It is true there are many labels But if sustainability and fair logistics are important to me then I have to get into this topic in detail


How to communicate about a sustainable logistic label is dependent on different factors The following media preferences give examples of what is interesting for the target group members A campaign for a sustainable logistics label should take these and other factors into account to holistically address the target group

The target group members (stage of change 4 ldquoactionmaintenancerdquo) can effectively be reached by TV and newspapers The following aspects can be especially taken into consideration

TV

bull The target group members with a higher educational level and those who live in a city gt100001 inhabitants often watch public broadcasting programs

bull Men more often watch magazines (eg Frontal 21 Titel Thesen Temperamente) and knowledge programs (eg Quarks amp Co TerraX) on public broadcasting channels in comparison with women

bull Men more often watch sport programs (eg Sportschau) whereas women prefer soaps and telenovelas (eg Sturm der Liebe Rote Rose Gute Zeiten schlechte Zeiten Unter uns) This is true for TV programs on public as well as private broadcasting channels

Newspapers

bull Newspapers such as Suumlddeutsche FAZ and Welt are more often read by the target group members with a higher educational background

bull Newspapers are more often read by men than by women This is especially true for the following newspapers Suumlddeutsche FAZ Welt and Handelsblatt

Target group members who are on level 1ndash2 ldquo(no) knowledgeawarenessrdquo and who are not yet interested in sustainability topics can effectively be addressed via TV and social media For instance target group members with a lower educational level (Real- or Hauptschule degree) mainly watch private broadcasting stations This is true for those who live in more rural areas in Germany This target group can be effectively addressed via Facebook and YouTube This group of target group members buy products with a sustainable logistic quality label eg because they


133

like the design or the colors of the label but not because they want to support sus-tainable logistics patterns in the first line


The following overview shows motivating and enabling measures for target group members that need to be taken into account when introducing a sustainable logistics quality label

Motivation Ability

Personal To motivate the target grouphellip ndash Co-creation of the quality

label including an awareness campaign together with target group members

ndash Address the added value when buying a product with the sustainable logistics label

ndash Integrate storytelling and animated video clip elements where necessary (stages 1 and 2)

ndash Use celebrity endorsement ndash Use social media and

YouTube as well as TV newspapers and other media channels for the campaign


To enable the target grouphellip ndash Give clear information on the product

and on a website with additional information

Social To motivate the target group socially (use group dynamics)hellip ndash Consider a ldquoTell-a-friendrdquo

option incl Facebook (site share) Facebook Messenger and WhatsApp

To enable the target group sociallyhellip ndash Consider a QampA option on the website

of the sustainable logistics label ndash Consider an exchange option for

clients with the initiator of the quality label to pose questions or give comments

Structural ndash Holistic integration in societal discourse Why is sustainable logistics of products important and what needs to be done

ndash If necessary adaptation of legislation with respect to topics of sustainable logistics to facilitate more (behavioral) options for consumers

ndash Availability products with a sustainable logistics quality label should be available in a variety of supermarkets and stores on the long run so that different sub-target groups can buy them

ndash Price ensure on the long run that not only (more) expensive products have the sustainability logistics quality label with the aim to reach various target groups


134

Communication Scenario 5 Information App and Sustainable Logistics in the Supermarket for the Target Group Members

Target Group

bull Consumers who are aware of sustainability topics and who often buy sustainable products

bull Especially men who are aware of sustainability topics and who often buy sustainable products (consumers who are aware or convinced)

The primary aim of this communication scenario is to create transparency in the field of sustainable logistics through an information app

Acceptance and Doubts

454 of the target group members have doubts if they would use an informational terminal or an informational app in practice 369 of the target group indicate that they want to use this innovation to increase sustainable logistics processes Because the acceptance rate is higher for an information app in comparison to an informational terminal at the supermarket this communication scenario is based on the information app

Stages of Change

Target group members who can effectively be addressed through the information app are those who are aware of sustainability themes They can be considered as ldquoaware consumers or the convinced consumersrdquo (see Oumlkobarometer 2016) and are on the stage of change ldquoactionmaintenancerdquo (level 4 also see ldquoCommunication Scenario 4rdquo)

Implementation

Target group members are not sure if they want to use this sustainable logistic innovation They like the idea to have an information app where they can scan the product code Through the app it is thus possible to receive information about sustainable logistics when and wherever the target group wants

Men can better be addressed with the information app than women In addition it would be crucial to explore how far synergies of an information app and a sustainable logistics quality label (ldquoCommunication Scenario 4rdquo) can be used

I do not like the idea of a terminal in the supermarket where you get information about sustainable logistics but I like the idea of an information app I want to have a look at that information at home or somewhere else


135

I do not like doing grocery shopping When using the terminal I have to stay in the supermarket No this is not for me

Aspects of a Sustainable Logistics

Target group members who indicate a willingness to use an information app say that it is very important for them to know where the product comes from Also the target group members want to have more information on the transport distances (how many kilometers did the product travel) and about working conditions along the logistics chain The aspect of how the product has travelled (via train airplane etc) and the CO2 footprint of the product are less important to the target group members


The target group members who are aware of sustainability themes and who are in stage 4 ldquoactionmaintenancerdquo can effectively be reached via TV and newspapers (see ldquoCommunication Scenario 4rdquo) The following overview shows media preferences of especially male target group members that are interested in sustainability themes

bull The target group members with a higher education level watch more public broadcasting programs in comparison to those with a lower level

bull On public broadcasting programs men more often watch political and consumer magazines (eg Frontal 21 Titel Thesen Temperamente) and knowledge series (Quarks amp Co TerraX) than women

bull Men more often watch sport programs (eg Sportschau) than women This is true for public and private broadcasting programs

bull Target group members like to watch PayTV especially Amazon Instant Video and Netflix Men watch more PayTV than women

Newspapers



Magazines

bull Also men can more effectively be addressed through news magazines (eg Spiegel Stern) and magazines for a specific interest (eg cars technic travelling photos) offline as well as online Men more often read these magazines than women


136


Motivation Ability

Personal To motivate the target grouphellip ndash Co-creation of the

logistics label including an awareness campaign together with target group members

ndash Design of an attractive and easy to use app

ndash Addressing the added value when buying a product

ndash Use TV newspapers and other media channels

ndash Answering the question in how far it is effective to combine a sustainable logistic quality label with the information app

To enable the target grouphellip ndash Clear information at first sight It also would

be possible to classify products through the use of simple categories (such as gold silver and bronze) Through such categories it would be very easy to access for the target group members to what extent sustainable logistics processes have been taken into consideration

Social To motivate the target group socially (use group dynamics)hellip ndash Consider a ldquoTell-a-

friendrdquo option incl Facebook (site share) Facebook Messenger and WhatsApp

ndash Integrate examples how easy the target group members have used the information app

To enable the target group sociallyhellip ndash Consider QampA option for the app ndash Consider to pose questions or give comments

about the app


ndash Availability Ensure that the app runs on different operation systems

ndash Price Ensure that the app does not cost much or nothing

Conclusion and Outlook

This article depicted different sustainable logistics communication scenarios for various consumer groups

bull Communication Scenario 1a Sustainable logistics button (SLB) for the target group members who buy clothes in online shops of lower price segments

bull Communication Scenario 1b Sustainable logistics button (SLB) for the target group members who buy clothes in online fair and eco-fashion shops


137

bull Communication Scenario 2 High-quality visualization fitting tool in online shops for the target group members

bull Communication Scenario 3 Bonus system for the target group members who do not cause return orders

bull Communication Scenario 4 Sustainable logistics quality label in the supermarket for the target group members

bull Communication Scenario 5 Information app ldquosustainable logisticsrdquo in the supermarket for the target group members

These communication scenarios give recommendations for target group-oriented sustainable logistics innovations in the field of online fashion and sustainable products in the supermarket They show the importance of taking a variety of factors into account for contributing to a change in knowledge attitude and behavior of consumer groups when it comes to sustainable logistics processes

The majority of consumers want to add a sense of meaning to their behavior They are willing to make a (small) contribution without restricting themselves A central prerequisite for this is to consider their point of views and their stories Their living environment and the ones of their partner family members friends and colleagues play a decisive role in discovering what is (not) important for them

Changes in knowledge attitudes and behaviors are complex processes At the same time these transition processes can be influenced to some extent For doing so it is crucial to address consumers in (sub-)target groups

The communication scenarios described in this article aim to maximize the chances to change knowledge attitudes and behaviors of various consumer groups in the field of sustainable logistics processes They show that beside the communication with the target group there are several enabling and disabling as well as (de)motivating factors for fostering sustainable logistics behavior which come into play on a personal social and infrastructural level (also compare Grenny et al 2013) This can be summarized as the principle of ldquoknowing being able wanting and being allowed to do itrdquo target group members must be aware of the sustainable logistics innovation they must be able to use it they must want to do it and their new behavior should be socially acknowledged and allowed by their family and peers These factors enhance the chances that the desired behavior will be performed

It is noteworthy that the survey found considerably longer delivery time toler-ances in the field of e-commerce (e-fashion) for specific consumer groups investi-gated The contrast between these reported consumer attitudes and the actual performance parameters of the logistics service providers or the offered delivery speeds of web shops (for example ldquosame dayrdquo ldquonext dayrdquo) is remarkable In recent years the delivery speed in the logistics and e-commerce sector has not only been highlighted but delivery times have been steadily shortened While delivery reli-ability (such as agreed delivery time windows) is known to be even more important in consumer satisfaction delivery time is a conditional and fundamental function upon which other logistics performance parameters are based As there are signifi-cant sustainability potentials in a deceleration of the supply chain (for example


138

through better consolidation and capacity utilization) a central anchor point for higher sustainability gains in logistics might be found without evidently disap-pointing customer expectations or generally creating competitive disadvantages However this only applies on the condition that both logistics services and their sustainabilityunsustainability potentials are appropriately communicated to (or better ldquowithrdquo) consumer groups with respect to their personal needs attitudes knowledge backgrounds and wider social affinities The study has identified a number of ways that can be integrated into the service portfolios of various cooperating supply chain partners to enhance sustainable logistics innovations An open research challenge however exists in evaluating whether in the face of heterogeneous performance characteristics of service providers in this area specific consumer groups would still ultimately behave ldquosustainablyrdquo through de-speeded delivery The study shows willingness of the investigated specific consumer groups and illustrates the need for intensified business-consumer communication Whether this building on the gained knowledge with appropriate communication measures maybe even can produce competitive advantages would have to be investigated more deeply However this result also shows that eg changed framework conditions over all service providers (for example by legal regulations or industry agreements) need not necessarily be negative for e-commerce firms

References

Bouman M P A (1999) The turtle and the peacock Collaboration for prosocial change The entertainment-education strategy on television Thesis University of Wageningen Gelderland The Netherlands

Bundesministerium fuumlr Umwelt Naturschutz Bau und Reaktorsicherheit (BMUB)Umweltbundesamt (UBA) (2015) Ergebnisse einer repraumlsentativen Bevoumllkerungsumfrage In Umweltbewusstsein in Deutschland 2014 Berlin Germany

Bundesprogramm Oumlkologischer Landbau und andere Formen nachhaltiger Landwirtschaft (BOumlLN) amp Institut fuumlr angewandte Sozialwissenschaft (infas) (2016) Oumlkobarometer 2016 Bonn Germany BOumlLN

Deutsches CleanTech Institut (DCTI) (2015) Klimafreundlich einkaufen Eine vergleichende Betrachtung von Onlinehandel und stationaumlrem Einzelhandel Bonn Germany

Grenny J Patterson K Maxfield D McMillan R amp Switzler A (2013) Influencer The new science of leading change (2nd ed) New York NY McGraw-Hill Education


Lubjuhn S amp Bouman M P A (2015) Das spricht uns an Factory Magazin fuumlr nachhaltiges Wirtschaften 2015(01) 37ndash42

Lubjuhn S amp Bouman M (2017a) Resultate Kommunikationsszenarien zur Foumlrderung nachhaltiger Logistikprozesse bei der ILoNa-Zielgruppe Ergebnisse aus dem Arbeitspaket 32 Zielgruppenspezifische Kommunikationsstrategien ILoNa fuumlr Behavioural Change Abschlussreport Gouda The Netherlands Center for Media amp Health

Lubjuhn S amp Bouman M (2017b) Forschungsreport I Zielgruppenanalyse ndash Explorative qualitative Vorstudie In Zielgruppenspezifische Orientierungsmuster im Hinblick auf nachhaltige Logistikprozesse Ergebnisse aus dem Arbeitspaket 32 Zielgruppenspezifische


139

Kommunikationsstrategien ILoNa fuumlr Behavioural Change Gouda The Netherlands Center for Media amp Health

Lubjuhn S Bouman M amp Lutkenhaus R (2017) Forschungsreport II Zielgruppenanalyse ndash Quantitative Studie In Zielgruppenspezifische Orientierungsmuster im Hinblick auf nachhaltige Logistikprozesse Ergebnisse aus dem Arbeitspaket 32 Zielgruppenspezifische Kommunikationsstrategien ILoNa fuumlr Behavioural Change Gouda The Netherlands Center for Media amp Health

Mont O (2007) Concept paper for the international task force on sustainable lifestyles Third international expert meeting on sustainable consumption and production Stockholm

Papa M J Singhal A amp Papa W H (2006) Organizing for social change A dialectic journey of theory and praxis Thousand Oaks CA Sage

Prochaska J O DiClemente C C amp Norcross J C (1992) In search of how people change Applications to the addictive behaviors American Psychologist 47 1102ndash1114

Prochaska J O Redding C A amp Evers K (2002) The transtheoretical model and stages of change In K Glanz B K Rimer amp F M Lewis (Eds) Health behavior and health education Theory research and practice (3rd ed) San Francisco CA Jossey-Bass

Reinermann J-L Lubjuhn S Bouman M P A amp Singhal A (2014) Entertainment-education for sustainable lifestyles Storytelling for the greater greener good International Journal of Sustainable Development 17(2) 176ndash191

SINUS Markt und Sozialforschung (2017) Informationen zu den Sinus-Milieus 2017 Berlin Germany SINUS Markt und Sozialforschung GmbH

Westley F Patton MQ amp Zimmerman B (2007) Getting to Maybe How the World Is Changed Vintage Canada


Part IIITransformation Potential Towards

Sustainable Supply Chains


Chapter 7Local and Sustainable Food Businesses Assessing the Role of Supply Chain Coordination

Tim Gruchmann Madeleine Boumlhm Klaus Krumme Simon Funcke Simon Hauser and Ani Melkonyan

Abstract In food supply chains products and services are continuously expanded and adapted according to changing customer demands As concerns for environ-mental and social issues within societies grow sustainable business practices in supply chains are coming to the fore Altogether customersrsquo growing demand for local food has led to an increased importance of local food production and distribu-tion networks In this context the present study analyzes sustainability-related prac-tices in two local food production and distribution networks in Germany and Austria applying a multiple-case study approach to understand how business models can facilitate sustainable practices within the food industry By comparing the selected cases insights were derived with regard to sustainable business model elements in local food networks in particular promoting logistics and financial coordination in the supply chain Thus the article builds on academic literature by identifying and describing key elements of sustainable business models in local food networks At the same time it can be argued that sustainable business models have to be accepted by consumers such that sustainability advantage aspects need to be stressed through external communication Managerial implications with regard to transfer-ability and scaling of regional food businesses are provided accordingly

Keywords Sustainable business model middot Local food middot Supply chain management

T Gruchmann () middot S Hauser Centre for Sustainable Corporate Leadership WittenHerdecke University Witten Germanye-mail timgruchmannfomde

M Boumlhm middot S Funcke Centre for Renewable Energy Freiburg University Freiburg im Breisgau Germany

K Krumme middot A Melkonyan Centre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germany

144

Introduction

Local1 food understood as food production geographically close to the consumer is a growing trend taking place mostly in Western societies (Feldmann and Hamm 2015 Wenzig and Gruchmann 2018) Specific methods of food production (eg fair farm labor animal welfare practices and the absence of chemical fertilizers or pesticides) as well as specific supply chain attributes (eg simplified and direct distribution closer personal communication along the supply chain and clear infor-mation about the productsrsquo origin via labeling) often characterize local food busi-nesses The reasons for this trend are manifold According to Vermeir and Verbeke (2006) factors such as food scandals in the globalization of food supply chains as well as a commitment to support the local economy can be identified as reasons for the increasing number of concerned consumers who prefer to obtain their food from local sources In addition consumers associate local food products with freshness higher quality and healthiness (Khan and Prior 2010) Consequently more sustain-able local alternatives that often involve organic food production as well as community- supported agriculture and farmersrsquo markets have become increas-ingly popular (Feldmann and Hamm 2015) However it also can be seen that an insufficient integration and coordination of decentralized local food production net-works still limits growth such that local food businesses often remain in a niche (Willer and Lernoud 2013) Accordingly the following research questions guided our study How can supply chain coordination contribute to transferability and scal-ing of local food businesses and their sustainability efforts How is this reflected in their business model

Therefore we aim to shed light on tapping further increases in sustainability- oriented business practices in local food business models and inquire how network coordination approaches can contribute to the success of regional companies and their sustainability efforts Specifically we are interested which business model ele-ments in local food networks are promising to promote sustainability in the food industry For the analysis we focus on two regional food networks in Austria and Germany their connections between the network members and the networksrsquo cen-tral intermediary company Both investigated networks aim at the promotion of sus-tainable food production regional distribution and to the furthest extent possible a closing of regional value chains The analysis of both cases follows the conceptu-alization of business models proposed by Osterwalder and Pigneur (2009) which we extend with regard to sustainability aspects according to Boons and Luumldeke- Freund (2013) and Upward and Jones (2016) Based on this analysis we develop an extended business model conceptualization for local and sustainable food networks

The structure of the study is as follows Section ldquoLiterature Backgroundrdquo gives an overview of relevant literature with regard to (sustainable) business models The research design of this contribution is presented in section ldquoResearch Designrdquo

1 ldquoLocalrdquo means the lowest political level of municipalities and districts

T Gruchmann et al

145

Next section ldquoCase Analysisrdquo lays out the main results for the cases and provides a combined analysis of both cases that leads to a new sustainable business model conceptualization for local food networks The last sections ldquoDiscussionrdquo and ldquoConclusion and Outlookrdquo discuss the findings against the literature on supply chain coordination and conclude them accordingly

Literature Background

Business models have been extensively discussed and defined in the literature (Zott et al 2011) Linked to strategy and innovation literature the business model approach describes the ways in which a business creates and delivers value to their customers through designing value creation delivery and value capture mecha-nisms (Osterwalder and Pigneur 2002 2009) These elements of business model design generally include features embedded in the productservice determination of the benefit to the customer when consumingusing the productservice identifica-tion of targeted market segments confirmation of the revenue streams and the mechanisms to capture value (Teece 2010) Focusing on conventional business models four main business areas were identified while discussing business models in particular the value proposition for which customers are willing to pay the rela-tionships with the customers the infrastructure and network of the partners and financial aspects (cost and revenue structures) (Ballon 2007 Boons and Luumldeke- Freund 2013)

The business model perspective can be linked to the context of sustainability and has been of growing interest to scholars (Stubbs and Cocklin 2008) in recent years since it highlights the logic of value creation and allows for newrediscovered gov-ernance forms such as cooperatives public-private partnerships and social busi-nesses (Schaltegger et al 2016) Accordingly Schaltegger et al (2016 p 6) define the role of a business model for sustainability as ldquoit helps describing analyzing managing and communicating (1) a companyrsquos sustainable value proposition to its customers and all other stakeholders (2) how it creates and delivers this value (3) and how it captures economic value while maintaining or regenerating natural social and economic capital beyond its organizational boundariesrdquo Hence the exist-ing business model definitions have been aligned with the triple bottom line (TBL) approach (Carter and Rogers 2008 Seuring and Muumlller 2008) to not only foster economic but also social and environmental value creation Extending the conven-tional business frameworks in accordance with the TBL Boons and Luumldeke-Freund (2013) define the key parameters in sustainable business models as follows (1) value proposition of products and services which should focus on ecological social and economic value (2) overall infrastructure and logistics of the business guided by the principles of sustainable supply chain management (3) interface with cus-tomers enabling close relationships between customers and other stakeholders to improve co-responsibility in production and consumption and (4) equal distribu-tion of economic costs and benefits among all actors involved Broadening the

7 Local and Sustainable Food Businesses Assessing the Role of Supply Chainhellip

146

systemsrsquo scope further Neumeyer and Santos (2018) see business models as part of the whole entrepreneurial ecosystem particularly dependent on the stakeholderrsquos social network Over the last few years authors have started to consolidate the lit-erature on sustainable business models by introducing sustainable business model ontologies and archetypes (eg Bocken et al 2014 Upward and Jones 2016) Here Bocken et al (2014) distinguish between eight different sustainable business model archetypes particularly promoting maximization of material and energy efficiency creation of value from waste substitution with renewable and natural processes delivery of functionality rather than ownership adoption of a stewardship role encouraging sufficiency repurposing products and services for society and environ-ment as well as the development of scale-up solutions However Luumldeke-Freund et al (2016) see research in the field of sustainable business models as still rather limited in particular with regard to empirical analyses Moreover industry- and branch-specific sustainable businesses need to be analyzed to access business model elements and archetypes that support the management of voluntary social and envi-ronmental activities in certain environments Taking into account the different para-digms to include sustainability in a companyrsquos business model the main contribution of this study is a comparison of two successful local food business networks and analysis of how sustainability aspects are reflected within single business model elements Within the few frameworks given in the literature the extended sustain-able business conceptualization developed by Boons and Luumldeke-Freund (2013) is adapted and used as deductive coding scheme for the analysis In this line Table 71 describes the related sustainable business model elements while Fig 71 depicts the adapted framework

Research Design

Considering the aim of the study particularly the identification of promising busi-ness model elements to further promote sustainability in food business models a case study approach was used because the boundaries of the phenomenon and its full scope and context were not entirely described beforehand (Yin 2009) Case studies are also well suited for complex structures as they allow intense interaction with the informant and draw on multiple sources of information leading to robust data (Eisenhardt and Graebner 2007) Although the sustainability potential of local food supply networks is evident in the literature (Bosona and Gebresenbet 2011) how to implement and develop sustainable practices in such networks are not clear Hence a combined case study and business model approach is used to analyze local food production and distribution networks in Germany and Austria

Case Selection In accordance with the scope of the study two companies from the food sector which act as a hub in their respective network were selected Both networks focus their operational activities on decentralized and organic food

T Gruchmann et al

147

Table 71 Key elements in sustainable business models

Codes Description

Value proposition

The value proposition of a company is decisive for a customerrsquos buying decision Here products and services form a bundle covering the needs of a specific customer segment (Osterwalder and Pigneur 2009) According to Schaltegger et al (2016) the value proposition has to create deliver and capture environmental social and economic value by offering products and services Therefore a sustainable value proposition must identify trade-offs between product and service performance as well as social and environmental effects (Boons and Luumldeke-Freund 2013) So far a reduced resource consumption and potentially increased ecosystem services are the core of sustainable business models to reduce the environmental footprint (Stubbs and Cocklin 2008) Further key activities focus on the access to markets the perpetuation of customer relationships and achieving positive revenue streams (Osterwalder and Pigneur 2009)

Supply chain

The company or its supply chain partners need to have access to key resources as a prerequisite for value creation These key resources can be generally categorized as physical resources financial resources human resources and intangible assets (Osterwalder and Pigneur 2009) This perspective is relevant as sustainable innovations may require changed terms of competition and collaboration among the actors engaged in the supply chain (Boons and Luumldeke-Freund 2013) In this line the importance of incorporating a stakeholder approach is increasingly understood in sustainable supply chains and sustainable business models (Seuring and Muumlller 2008 Luumldeke-Freund et al 2016) For instance the stakeholder approach requires that a company engages suppliers in its sustainable supply chain management to tackle environmental and social issues (Boons and Luumldeke-Freund 2013 Seuring and Muumlller 2008) In this line the last mile distribution can be considered to be one of the most complex units of a supply chain (Schliwa et al 2015) This complexity is generated by tight delivery time windows and a growing number of small orders which have to be delivered to rural areas (Punakivi et al 2001)

Customer interface

Company relationships can motivate customers and other company stakeholders to take responsibility for their consumption behavior (Boons and Luumldeke-Freund 2013) Accordingly the customer interface enables close relationships with customers and other stakeholders allowing them to take responsibility for the production and consumption systems (Schaltegger et al 2016) In order to approach the customer interface individually customer groups are segmented by differentiating between customer characteristics Business models can either target a specific customer segment or produce for mass markets (Boons and Luumldeke- Freund 2013) Moreover a company operating on multi-sided platforms (multi- sided markets) serves different customer segments independently if applicable (Osterwalder and Pigneur 2009) Thus the customer interface might help to develop approaches to advance business models into platforms for multistakeholder integration and value creation (Luumldeke-Freund et al 2016)

(continued)


148

Table 71 (continued)

Codes Description

Financial model

Value creation is linked to the use of resources and consequently linked to costs In this context sustainable business models foster the shift away from purely monetary-oriented paradigms of value creation (Luumldeke-Freund et al 2016) Therefore the comparisons of cost structures between similar business cases are essential to gain insights into how a business creates and delivers value to their customers (Osterwalder and Pigneur 2009) Accordingly the cost and revenue structure reflects the distribution of economic costs and benefits among actors in the business model (Maas and Boons 2010) According to Stubbs and Cocklin (2008) shareholders often have to accept lower returns on investment in the short term so that the company can directly invest profits into structural changes to support social and environmental improvements which in turn can result in reduced costs Thus sustainable business models treat nature as a stakeholder too and promote environmental stewardship (Stubbs and Cocklin 2008) In this line renewable resources should be used instead of nonrenewable resources (natural capital) Here technological innovations should minimize and eventually eliminate non-recyclable waste and pollution Related terms such as clean technologies are also used for innovations that have a superior environmental performance (Boons and Luumldeke-Freund 2013)

bull Cost structure

bull Revenue streams

bull Natural capital

bull Customer

segments

bull Customer

relationshipsbull Governance

bull Key partnerships

bull Key resources

bull Stakeholder

bull Distribution channel

bull Products and

servicesbull Key activities

bull Ecosytem

services

Value

PropositionSupply Chain

Financial

Model

Customer

Interface

Fig 71 Key parameters in sustainable business models (Source adapted from Boons and Luumldeke-Freund (2013))

T Gruchmann et al

149

production and its local distribution The cases NETswerk2 Houmlrsching and Regionalwert AG (RWAG)3 Freiburg were chosen as they implement sustainability aspects at the core of their business models Moreover these business cases were selected to cover different parts of the supply chain (upstream and downstream) in order to gain insights into as many aspects of sustainability as possible during the value-creating process The data collection from each case was stopped when no further significant new insights could be gained (Yin 2009) Table 72 gives an over-view of the observed business networks

Data Collection In qualitative research interviews are generally used as a method-ology for knowledge production (Alvesson 2003) Based on an interview topic guide developed with the help of a literature analysis eight qualitative interviews were conducted The interviews lasted up to 60 min and were tape-recorded and transcribed in their entirety Quotations from the interviews are translated into English and used to exemplify the results in section ldquoCase Analysisrdquo the interview-ees were anonymized and labeled by using capital letters and numbers (Table 72) In addition secondary data was collected from publicly available reports internal company documents web sites and newspaper articles

Coding and Data Analysis Due to the complexity of qualitative interviews care-ful interpretation of the interview results is necessary to analyze the extend to which the findings serve the research purpose (Alvesson 2003) Therefore the transcripts were analyzed using a qualitative content analysis approach (Mayring and Fenzl 2014 Schreier 2014) To ensure methodological accuracy the content analysis of

2 ldquoNETswerkrdquo can be translated as ldquonetworkrdquo3 ldquoRegionalwert AGrdquo can be translated as ldquoregional value public limited companyrdquo

Table 72 Case characteristics

Attributes NETswerk Houmlrsching RWAG Freiburg

Location Linz Region Upper Austria Austria

Freiburg Germany

Start of operation 2014 2007Scope Production and online

distribution of organic food products and groceries to support local farmers

Investment in and facilitation of companies producing processing and distributing organic food products

Number of independent companies in the network

36 25

Respondents Farmer (F1) CEO (C1) logistics service provider (L1 L2)

CEO (O1) three network companies (U1 U2 U3)


150

the interviews was carried out in a structured manner by deductively using the busi-ness model canvas system adapted from Osterwalder and Pigneur (2009) Boons and Luumldeke-Freund (2013) and Upward and Jones (2016) (Mayring and Fenzl 2014) (see Fig 72) Thus the structural dimensions of the cost structure customer relationships customer segments distribution channels ecosystem services gover-nance key activities key partnerships key resources natural capital stakeholder revenue streams and value proposition were chosen as themes in the coding of the interview transcripts In terms of internal validity the transcript coding was per-formed by two researchers also ensuring inter-coder reliability The results of the deductive analysis can be found in sections ldquoNETswerk Houmlrschingrdquoand ldquoRegionalwert AG Freiburgrdquo

Comparative Analysis and Triangulation In a second step the results of the cod-ing were analyzed inductively using a comparative process Following Mayring and Fenzl (2014) the steps of clustering themes determining the level of abstraction and iteratively building new analytic categories were executed To ensure the exter-nal validity of the comparisons triangulation with the literature was conducted as suggested by Riege (2003) To further strengthen the external validity multiple expert workshops were carried out to discuss the results with other researchers The results of the inductive comparative analysis can be found in section ldquoAnalyzing Driving Factors and Barriers for Sustainabilityrdquo

Ecosystem

Services

Key

Partnerships

Key Activities Value Proposition Customer Relationships Customer Segments

Natural

Capital

Governance Key Resources Distribution Channels Stakeholder

Cost Structure Revenue Streams

Fig 72 Deductive coding scheme (Source adapted from httpwwwflourishingbusinessorg)

T Gruchmann et al

151

Case Analysis

For this contribution we carried out an in-depth analysis of two cases of food pro-duction and distribution networks in Austria and Germany All network companies intend to extend the production processing and distribution of local food in a coor-dinated manner In addition the cases focus exclusively on organic food products In the following the networks and the intermediary enterprises that govern the net-works are described and analyzed The analysis follows the deductive coding struc-ture as presented in Fig 72 The cross-case analysis of the interview data is presented in section ldquoDiscussionrdquo

NETswerk Houmlrsching

NETswerk is a farmerrsquos cooperation with the mission to facilitate sustainable con-sumption patterns (httphoerschingnetswerkat) To do so NETswerk runs an e-food online platform to distribute locally produced organic food from participat-ing farmers in the Linz region in Upper Austria So far customers order once a week via an online shop and pick up their order by themselves at one of the NETswerk branch offices4 To drive the environmental performance with regard to the last mile distribution NETswerk started a collaboration with a local logistics service pro-vider to offer a direct delivery service operated by electric vehicles The intention is to acquire new customers increase the service quality and decrease CO2 emissions by avoiding single consumersrsquo car rides and bundling the goods flow Accordingly NETswerk governs the supply network through logistics and technological coordi-nation and achieves positive environmental effects by integrating cleaner technolo-gies This partnership can be considered as a logistics coordination of the network

Right now [hellip] the products are transported [hellip] by the farmers themselves Then the products are commissioned and put into boxes Afterwards every Thursday Friday and Saturday 80ndash100 customers drive to the NETswerk branch offices with their own car to pick up their boxesmdashworst case Hence the sustainability of the product [hellip] is gone (F1)

Besides the organic products themselves the value proposition accordingly includes the local and sustainable delivery service allowing an expansion in new areas Key activities to run the NETswerk distribution network are the processing of the cus-tomer orders including payments the temperature-controlled transportation of goods as well as the management of the returned packaging

The focus of the logistics service provider is clearly sustainability Therefore they encour-age the electrification of their vehicles also because consumers who particularly buy organic and sustainable food will require this Hence the mode of the delivery is very rel-evant (C1)

4 In this line NETswerk follows a click and collect approach


152

Customer segments are people who work full-time and have limited time for gro-cery shopping (eg young and employed parents) as this segment needs to plan their shopping activities carefully and is often sensitive toward health and sustainability- related issues Future customer segments are expected in business-to- business supply of restaurants kindergartens and nursing homes Although the cus-tomer interaction while ordering is automated NETswerk builds personalized customer relationships via the drivers of the electric vans to offer additional cus-tomer services such as claim and retour management To avoid anonymity and increase the transparency of the local farmersrsquo production network farm festivals are regularly organized and a rating system will be installed on the online platform soon

This is also a possibility to win new customers Therefore we deliver on demand [hellip] a low-carbon organic product (F1)

You need to communicate the benefits of fewer CO2 emissions which result from the bun-dled delivery to the customer (C1)

Key partnerships of NETswerk are the local farmers and Schachinger Logistik the local logistics service provider who is able to combine the afternoon business- to- customer food deliveries with a business-to-business parcel delivery service in the morning Hence the logistics service provider reduces operational costs per delivery by increasing the usage of the electric vans In general important key resources in the distribution network are the human resources existing logistics infrastructure (such as trucks and warehouses) as well as NETswerkrsquos information and communication technology (ICT)

NETswerk wants to cooperate for transportation with Schachinger [hellip] while commission-ing and warehousing stays with the farmers (L2)

Schachinger Logistik is part of the DPD network in Austria [hellip] Therefore more or less every B2B [business-to-business] parcel delivered in Upper and Lower Austria is done by Schachinger [hellip] In the end it is about conducting B2B deliveries in the morning and [hellip] B2C [business-to-customer] deliveries in the afternoon because the probability that the cus-tomer is at home is higher (L1)

To operate this infrastructure the main variable cost related to the energy consump-tion of the electric vehicle driving and picking personnel and running the online platform while fixed costs are mainly related to investments into logistics and ICT infrastructure According to the financial model revenue streams are generated by charging the customers for a part of the delivery costs and co-financing the delivery service from the product margin

Delivery costs of 190euro are easily acceptable for the consumer to pay 3euro is much harder When you look at yourself you donrsquot want to pay 3euro for dispatch and delivery [hellip] but 190euro particularly when you order products for 40 or 50euro thatrsquos okay (L2)

To summarize the NETswerk case Fig 73 depicts the single business model elements

T Gruchmann et al

153

Regionalwert AG Freiburg

RWAG was founded in 2006 and began its operation in 2007 By following the concept of a public limited companymdashwithout being listed at the stock exchange and mainly relying on local and regional citizens to buy shares of the networkmdashRWAG strives to show the societal and ecological importance of locally produced and distributed certified organic food products (httpswwwregionalwert-agde) It governs 25 companies along the supply chain financially or with organizational advice and strategically connects these companies in a regional network Therefore RWAGrsquos main scope is ldquothe participation (and share of capital) the support and foundation of companies in the field of ecological farming forestry and wine agri-culture Also the retail and wholesale trade sector in these fields and the food sector in the region of Freiburg should be enhanced with ecological goodsrdquo (Hiszlig 2014 p 41)

RWAG can be considered an intermediary between the network companies which are either partly owned by RWAG or licensed partners without financial involvement For the co-owned companies RWAG is becoming more than an inter-mediary but rather a strategic parent organization This partnership can be consid-ered as financial coordination of the network In sum RWAGrsquos value proposition

bull Promotes certified organic food production and consumption and offers social and ecological returns to its mainly local stockholders and the region

bull Offers potential financial return to its stockholders with the premise that all social and ecological goals are achieved

Ecosystem

Services

organic food production

Key

Partnerships

Logistics service provider

integration with other services of

the provider

Key Activities

low-carbon delivery service certified organic

production

Value Proposition

low-carbon delivery service certified

organic production

Customer Relationships

automated while ordering personalized

while delivering

Customer Segments

people who work full-time and have limited

time for grocery shopping intention to

extend further

Natural

Capital

delivery service

operated by electric vehicles

Governance

logistical and technological

integration

Key Resources

logistics infrastructure

and ICT

Distribution Channels

online distribution (parcel delivery Click

amp Collect)

Stakeholder

integrated stakeholder approach intended to

extend further

Cost Structure

energy consumption electric vehicles driving and picking personnel online platform investments into logistics and ICT

infrastructure

Revenue Streams

delivery costs are partially charged partially financed by the product margin

Fig 73 Sustainable business model canvas NETswerk


154

bull Promotes the exchange between different companies along the value chain of certified organic food and their ability to work together

bull Supports entrepreneurs in planning and financing their businesses in the certified organic food sector (production processing wholesale and retail) as land and equipment are capital-intensive

bull Creates awareness for the different benefits of certified organic food production besides monetary gains such as ecological and social criteria

ldquoI hope to be able to have a lsquoperfectrsquo balance sheet in five years A balance sheet with all the information one needsmdashwhether social ecological regional-economical or financial [hellip] We hope to have new tools in accounting as well in order to be able to track those improve-mentsrdquo (O1)

While the network companies and licensed partners are also recipients of RWAGrsquos value proposition RWAGrsquos customer segments are very heterogeneous mostly due to the network organization We understand the RWAG head-company as a hub for innovation being the central actor in the network Thus its customers are primarily the particular network member companies that use the RWAGrsquos ser-vices Accordingly the RWAG itself only holds shares of the network partners but does not engage with final customers on its own End-customer relationships are only indirectly addressed through the network companies The networkrsquos products are distributed to consumers in the region either via supermarkets stocking RWAG products via restaurants run by the RWAG via delivery services or via farmerrsquos markets Interestingly none of the network members relies completely on the RWAG network members but especially the businesses on the first steps of the value chainmdashthe ones in the agricultural sectormdashargue that RWAG is good to reach out to business customers

ldquoThese customers are our most important customers The ldquoFrischekisterdquo5 is our most important customer Since last year even Naturkost Rinklin [a wholesaler] is part of RWAG This was the last really important customer that didnrsquot use to be a part of RWAGrdquo (U1)

RWAG has developed a unique financial model adapted to their business model RWAG holds the majority of every network member that is co-owned by RWAG Accordingly these companies do not bear the entire economical risk them-selves and can seek practical and additional financial help from RWAG RWAGrsquos financial capital stems from registered shares with restricted transferability that are mainly sold to private people in the region6 This makes RWAG an organization car-ried by mostly private actors and requires a high degree of transparency that is reflected in how figures are made public

ldquoWe have grown a lot in the region in the last couple of years The retailers for example a supermarket [hellip] they have tripled their economic turnover in five years compared to their

5 The ldquoFrischekisterdquo is a delivery service of locally and organically grown goods Their products are distributed to the door of each customer6 The price for one share has differed between the last rounds of increase in capital In 2016 one share was sold for 500 euro

T Gruchmann et al

155

foundation This is just one example [hellip] Even if you look at all network partners in one the income is increasing I think it is 17 some single ones are increasing their turnovers by 30ndash40 And these are important effectsrdquo (O1)

Concerning the supply chain the RWAG is the central strategic actor in the network while othersmdashlike the Regionalwerk UGmdashare the key to network cooperation by organizing workshops and spaces for network members to meet and get in touch Its key partners in the sense of human and physical resources are mainly the businesses within the network All companies along the supply chain are important even though some might be more central to the network than others (eg the producing partners U1) A key activity for the network is in addition the administration of RWAG itself They assist the network companies not only with capital but support the businesses especially in strategic questions and help to create future visions for them In terms of financial resources the RWAGrsquos shareholders are crucial They are essential for the business model to work because their investments are securing the RWAGrsquos financial opportunities

To summarize the RWAG case it is important to keep in mind that every partner member or customer might have changing roles for the value proposition through the different key activities mentioned as well as for other categories mentioned in the business model This role depends on the perspective of the actor and on the activity in question and enforces the understanding of a network of companies working together with the RWAG itself being the networkrsquos hub

To summarize the RWAG case Fig 74 depicts the single business model elements

Ecosystem

Services

ecological farming

forestry and wine

agriculture

Key

Partnerships

network members

Key Activities

organizing network and stakeholder dialogue

assisting in development of

businesses strategies

Value Proposition

financial and organizational

support for certified organic food production processing and

distribution


private and network meetings with member

companies

Customer Segments

network companies (customers because

they use services and funds only indirect

engagement with end consumer)

Natural Capital

measurable societal and ecological

benefits

Governance

financial integration to govern most parts of the

supply chain

Key Resources

relational resources financial

resources through the shareholders


online and stationary retail restaurants

(network members)

Stakeholder

integrated stakeholder approach for

stockholders key partners and end

customers

Financial Model

shift from a company-specific perspective to a more regional and holistic value chain and network-perspective RWAG holds majority of every network member sharing the economic risk across the network

Fig 74 Sustainable business model canvas RWAG


156

Analyzing Driving Factors and Barriers for Sustainability

As the main aim of this study is to compare successful business models while using the sustainable business model framework adapted from Boons and Luumldeke-Freund (2013) (see Fig 71) driving factors and specific characteristics were identified which promote sustainability transferability and scaling of these regional business models To summarize the findings an archetypical business model is constructed depicting the single business model elements derived from comparing the NETswerk and RWAG case (see Fig 75) In this line the sustainable business model conceptualization by Boons and Luumldecke-Freund (2013) can be informed in the context of local food businesses Analyzing both cases the use of local resources has the potential to extend a conventional to a more sustainable value proposition particularly in the food sector (Kneafsey 2010 Collits and Rowe 2015) In the case context the investigated businesses include additional logistics and financial ser-vices in their value proposition Accordingly intermediary organizations within the networks can coordinate sustainable production and consumption patterns through these services

With regard to the empirical findings sustainability benefits can be leveraged through more professional operations resulting from logistics technological and financial integration for instance through standardizing procedures while keeping personalized relationships as well as extending the value proposition toward offer-ing more sustainable last mile alternatives in the NETswerk case Here more effi-cient operations in line with a lower ecological footprint due to regionalization

Value proposition Supply chain

Customer interface Financial model

Sustainability in the coreGreening operations

along the whole chain with the

support of network intermediaries to avoid negative environmental

impacts

Developing a stakeholder-tailored business strategy to address important stakeholder groups

Promoting scalability through franchise

approach to preserve the advantage of short value

chains

Use of relational resources within the network

Use of advanced logistics and ICT resources

Stakeholder approach especially

including stockholders key partners and end

customers

Sharing economic risks in a fair manner among

network members

Improving social and ecological situation in a

region through production processing

and distribution of organic food products

Responding to customers demand for sustainable and

healthy food production

Closing of regional value chains and integration in the

network

Fostering customers needs (eg time and

mobility constraints) and affinities (eg internet

usage)

Keeping standard order processes while building personalized customer

relationships

Fig 75 Framework for local networks

T Gruchmann et al

157

result from shorter distanced and generally less complex supply networks poten-tially leading to a lower energy consumption fewer CO2 emissions or a reduced water footprint among other positive benefits for sustainability (Hudson 2007)

Another argument often used for regionalization is the support of local or regional value chains leading to positive impulses for regional economic development (Wiskerke 2009) and strengthening the regional economy through stronger intra- regional communication within the networks (Paloviita 2010) In terms of financial coordination within local food supply chains the cases provide evidence that prod-ucts and services can become more competitive compared to conventional and glo-balized food supply chains in particular through sharing economic risks and coevolving of the supply chain partners For example the RWAG case fosters coop-eration and exchange among the network members to build and keep (social) capital within the region

Within the observed cases potentials for sustainability deriving from financial and technological coordination of local food production and distribution networks still show room for further (green) expansion for instance by increasing the num-ber of member companies and citizens in the RWAG case However the business cases indicate that logistics and financial supply chain services generally represent a driving factor for leveraging sustainability potentials in the investigated business cases Here supply chain services and the related infrastructure of network integra-tors demonstrated their relevance for the acquisition of new customer segments as well as to scale up (sustainable) businesses while contributing to necessary critical market shifts Measurable effects in quantitative terms of sustainability benefits such as CO2 emission reduction and generally higher resource efficiency are enabled by the stronger network integration and coordination of small-scale farms and production sites Further effects on social sustainability are enabled through integrative coevolution between production and (partly new) retailing structures as well as stakeholder-tailored business strategies to decrease (sustainability-related) risks and to build new (knowledge-based) capabilities Accordingly the investigated driving factors extend current empirical knowledge about local food networks

The cases also have shown that there seem to be limits to the scalability of the mentioned effects since the number of producers and retailers in a certain region is limited and thus represents a hurdle for expansion Thus barriers could be seen in the cases which hinder transferability and scaling of regional food business models In the literature on mass market companies such barriers might be a less supportive organizational culture employee resistance and the time span from idea generation toward implementation (Melkonyan et al 2017) However the observed barriers in the cases are even more fundamentally embedded in the business model structure Considering the value proposition none of the observed cases can provide a full- range product offer (one-stop shop) so far To avoid additional consumer shopping trips full-range product greater than 2000 articles is required Considering invest-ments in supply chain infrastructure higher volumes are necessary to build an inde-pendent (logistics) infrastructure Accordingly growth rates are relatively small which might be a competitive disadvantage Considering the consumer interface consumers are used to paying cheaper sale prices in online markets although addi-


158

tional delivery services are offered Due to this price transparency parts of the trade margin are still used to cover additional logistics costs (Table 73)

Discussion

In this study we were able to construct a framework for sustainable local food busi-ness models by analyzing two networks with a business case closely connected to particular ideas of sustainability Thus we could show that a sustainable business

Table 73 Driving factors for local food networks

Analytic category NETswerk Houmlrsching RWAG Freiburg

Extending the value proposition toward additional services

Logistics service providing additional infrastructure to implement a new distribution channel

Financial services supporting entrepreneurs in financing their businesses and cooperating in a local network one of the foci is on succession of farms

Personalization of operational processes

Providing additional customer services such as claim and retour management

Network members meet four times a year for personal exchange (also for initiation of business cooperation)

Efficient and green operations with the help of network integrators

Service provider Schachinger as network integrator consolidating and bundling of goods flow with the help of e-vans increased resource usage through extending an existing service NETswerk as network integrator access to advanced ICT

RWAG as network integrator access to financial resources through RWAG (production or use of organic products as precondition)

Co-evolution with local partners

Cooperation with local logistics experts

Cooperation and exchange mainly with partner companies

Sharing supply chain costs and risks among network members

Charging customers for a part of delivery costs and co-financing the delivery service from the product margin

Diversified investments into the network companies help to reduce risks a scheme for profit redistribution among members is planned

Scalability on local level

Limited number of local farmers limits growth on the supply side therefore there is only the possibility of multiplying the business model in other regions

Through regional growth diversification and financial investments RWAG is able to increase the number of network member companies

Investments in infrastructure

Using Schachingerrsquos existing infrastructure higher volumes are necessary to build independent logistics infrastructure

High investments are financed through profit sharing or new rounds of capital increase

Acquiring new customer segments

Business-to-business customers such as restaurants kindergartens and nursing homes

Through new rounds of capital increase citizens in the region can become shareholders

T Gruchmann et al

159

case needs to be approached in a systematic manner In this sense the present study is generally embedded in the research stream of supply chain coordination (SCC) as coordination and planning between several entities of a supply chain take center stage in this research Skjoslashtt-Larsen (2000) defines SCC as coordinated collabora-tion between several companies in a network to share opportunities and risks using an integrated planning based on a common information system Similarly Simatupang and Sridharan (2002) see SCC as a collaboration of independent com-panies to operate more efficiently as if operations are planned and carried out sepa-rately In this context Kanda and Deshmukh (2008) provide an SCC classification model where specific coordination mechanisms are described Regarding these SCC mechanisms they distinguish between contractual coordination coordination through information technology coordination by information sharing and joint decision-making So far the related literature highlights how effectively coordi-nated relationships can help manage potential economic supply chain risks (eg Scholten and Schilder 2015) Therefore logistics and financial coordination prac-tices used to have a supportive role to primary functions such as purchasing manu-facturing and sales in conventional business models (Halldorsson and Skjoslashtt-Larsen 2004) Although the definition of logistics services has been expanded in the last years to also cover warehousing and transportation activities purchasing distribu-tion activities inventory management packaging manufacturing and even cus-tomer service (Bowersox and Closs 1996) they are still often analyzed from a purely economic point of view aiming to achieve competitive advantage (eg McGinnis et al 2010) However the necessity for logistics technological and financial coordination capabilities to facilitate sustainable practices and businesses is coming to the fore as concerns for environmental and social issues within the society and at consumer side rise Consequently these capabilities can be inter-preted as a key determinant for sustainability in supply chains

Including the extended sustainable business conception developed by Boons and Luumldeke-Freund (2013) drivers to further promote economical ecological and social sustainability in local food networks were identified on three main levels of the business model in particular on the very core of the business model its down-stream SCC as well as its upstream customer orientation With regard to down-stream SCC through technological logistics and financial integration (cf Vachon and Klassen 2008) the present study could show that such forms of collaboration do not just lead to a higher environmental performance but also contribute to the social dimension of sustainability With regard to upstream customer orientation service innovations play a major role in extending the value proposition of local food networks In accordance to Kandampully (2002) three characteristics for ser-vice innovation promoted by SCC could be observed (1) technology (2) knowl-edge and (3) relationship networks The knowledge sharing and coevolution of the supply chain partners were enabled through deploying ICT technology in the Netswerk case and through setting up a separate company in the RWAG case that is responsible for the personal exchange within the network Hence the central inter-mediary companies in the investigated cases do not just place considerable impor-


160

tance on relationships and networking downstream but also upstream the supply chain to enhance customer satisfaction and firm performance Tackling the core of the observed sustainable business models green process improvement could be achieved through redesigning structures and relationships in the Netswerk case particularly in the last mile Moreover social benefits could be achieved through incorporating stake- and shareholders in operational business activities and vice versa motivating farmers as well as retailers to become shareholders of the network in particular in the RWAG case Accordingly the creation of logistically techno-logically and financially integrated networks improves the current business para-digms of local food networks by numerous green and social benefits such as the achievement of greater process efficiency increased customer satisfaction better strategic planning as well as more flexibility and adaptation to market changes

Highlighting these possibilities and the three core characteristics for service innovation discussed above this work also shows the importance to shed light on communicating sustainability benefits Sustainable supply chains need to be managed well internallymdashand thus well-communicatedmdashand they need to be rec-ognized externally as well Luumldeke-Freund (2014 p 311) was able to show that reputational effects were ldquothe most important driver but also the most complex and hard to manage onerdquo This refers mainly to external communication forming the basis for reputation There are numerous approaches to external communication of social and ecological engagement Ruppert-Winkel et al (2017) published a bro-chure presenting the possible ways to communicate social and ecological measures externally Among them are brands sustainability reports and the usage of social media Their usage is vital to get recognition for the actions taken and this might also be of importance for companies moving toward sustainable business models because also their benefits need to be recognized The academic debate in this regard is still only beginning and offers gaps for future research

The same is true for internal communication Companies operating with sustain-able business modelsmdashjust like the two network examples discussed in this papermdashneed to reinforce the values and norms incorporated in the business model At the same time the employees need to recognize the business model themselves and reinforce its authenticity Therefore also the communication internally is central for sustainable business models Also this aspect is highly under-researched One pos-sibility to approach this gap would be again to turn to literature on CSR communi-cation such as Stehr and Struve (2017)

Moreover the empirical findings also indicate that the conceptualization of sus-tainable business model archetypes (cf Bocken et al 2014) becomes less important when talking about business model innovations in specific industry contexts Considering the investigated businesses types the combination of various business model elements from different business model archetypes becomes apparent The cases combine certain technological social and organizational elements to at least partially attract different target customer groups

T Gruchmann et al

161


So far only a minority of local business cases reaches international benchmarks of the food branch since most local food production networks still operate in a niche and often lack integrated logistics and ICT designs and related skills to a large extent (Bosona and Gebresenbet 2011) Hence necessary logistics and financial capabilities can help local food networks to achieve a higher sustainability perfor-mance by leveraging the companiesrsquo embedded sustainability potentials in their core business Moreover enough coordination facilitates necessary investments in infrastructure and more innovative distribution channels increasing the competi-tiveness against conventional food supply chains

In addition trends in various other industries parallel to the food sector show a tendency toward decentralization and a strong need for integrated and consolidated services on the operational levels of the supply chain particularly with respect to future sustainable economic systems and transition pathways However how far the role of decentralization accompanied with logistics and financial coordination can be transferred into other branches (material and chemical industry mobility ser-vices fashion electronic sector etc) is a matter for further research The food sec-tor shows a high potential for especially regional patterns of production and consumption unlike other sectors where such potentials might be much harder to implement

Concluding the present study it can be argued that SCC have a high relevance for small-scale local and organic food business networks to achieve upscaling effects in regional markets It was demonstrated that specific sustainable business model ele-ments can effectively contribute to a sustainable value-added chain for the main interacting supply chain partners local food producers processing and distributors network integrators and (responsible) consumers in a regional market Accordingly the study at hand shows that in particular logistics and finance can play a fundamen-tal role in pointing out alternative operational modes in business models of a future green economy system with respect to the content instigated in the food industry

References

Alvesson M (2003) Beyond NE positivists romantics and localists A reflexive approach to interviews in organizational research Academy of Management Review 28 13ndash33

Ballon P (2007) Business modeling revisited The configuration of control and value Digital Policy Regulation and Governance 9 6ndash19

Bocken N Short S Rana P amp Evans S (2014) A literature and practice review to develop sustainable business model archetypes Journal of Cleaner Production 65 42ndash56

Boons F amp Luumldeke-Freund F (2013) Business models for sustainable innovation State-of-the- art and steps towards a research agenda Journal of Cleaner Production 45 9ndash19

Bosona T amp Gebresenbet G (2011) Cluster building and logistics network integration of local food supply chain Biosystems Engineering 108 293ndash302


162

Bowersox D J amp Closs D J (1996) Logistical management The integrate supply chain man-agement (pp 63ndash70) London UK McGraw-Hill

Carter C amp Rogers D (2008) A framework of sustainable supply chain management Moving toward new theory International Journal of Physical Distribution amp Logistics Management 38 360ndash387

Collits P amp Rowe J E (2015) Re-imagining the region Local Economy 30(1) 78ndash97Eisenhardt K amp Graebner M (2007) Theory building from cases Opportunities and challenges

Academy of Management Journal 50 25ndash32Feldmann C amp Hamm U (2015) Consumersrsquo perceptions and preferences for local food A

review Food Quality and Preference 40 152ndash164Halldorsson A amp Skjoslashtt-Larsen T (2004) Developing logistics competencies through third

party logistics relationships International Journal of Operations amp Production Management 24 192ndash206

Hudson R (2007) Region and place Rethinking regional development in the context of global environmental change Progress in Human Geography 31(6) 827ndash836

Hiszlig C (2014) Mit Buumlrgeraktien die regionale Oumlkonomie staumlrken Ein Handbuch mit praktischen Hinweisen zu Gruumlndung Beteiligung und Umsetzung Freiburg Herder Verlag

Kanda A amp Deshmukh S G (2008) Supply chain coordination Perspectives empirical stud-ies and research directions International Journal of Production Economics 115(2) 316ndash335

Kandampully J (2002) Innovation as the core competency of a service organisation The role of technology knowledge and networks European Journal of Innovation Management 5(1) 18ndash26

Kneafsey M (2010) The region in food - important or irrelevant Cambridge Journal of Regions Economy and Society 3(2) 177ndash190

Khan F amp Prior C (2010) Evaluating the urban consumer with regard to sourcing local food A heart of England study International Journal of Consumer Studies 34(2) 161ndash168

Luumldeke-Freund F (2014) BPrsquos solar business model A case study on BPrsquos solar business case and its drivers International Journal of Business Environment 6(3) 300ndash328

Luumldeke-Freund F Gold S amp Bocken N (2016) Sustainable business model and supply chain conceptions - towards an integrated perspective In Implementing triple bottom line sustain-ability into global supply chains (pp 345ndash375) Sheffield UK Greenleaf Publishing

Maas K amp Boons F (2010) CSR as a strategic activity Value creation redistribution and inte-gration In C Louche S Idowu amp W Leal Filho (Eds) Innovative CSR From risk manage-ment to value creation (pp 154ndash172) London Greenleaf Publishing

Mayring P amp Fenzl T (2014) Qualitative Inhaltsanalyse In N Baur amp J Blasius (Eds) Handbuch Methoden der empirischen Sozialforschung (pp 543ndash556) Wiesbaden Germany Springer

McGinnis M Kohn J amp Spillan J (2010) A longitudinal study of logistics strategy 1990- 2008 Journal of Business Logistics 31 217ndash235

Melkonyan A Krumme K Gruchmann T amp De La Torre G (2017) Sustainability assessment and climate change resilience in food production and supply Energy Procedia 123 131ndash138

Neumeyer X amp Santos S C (2018) Sustainable business models venture typologies and entre-preneurial ecosystems A social network perspective Journal of Cleaner Production 172 4565ndash4579

Osterwalder A amp Pigneur Y (2002) An E-Business Model Ontology for Modeling E-Business Proceedings of the Bled Electronic Commerce Conference June 17ndash19 2002

Osterwalder A amp Pigneur Y (2009) Business model generation A handbook for visionaries game changers and challengers Amsterdam The Netherlands Modderman Drukwerk

Paloviita A (2010) Consumersrsquo sustainability perceptions of the supply chain of locally produced food Sustainability 2(6) 1492ndash1509

Punakivi M Yrjoumllauml H amp Holmstroumlm J (2001) Solving the last mile issue Reception box or delivery box International Journal of Physical Distribution amp Logistics Management 31(6) 427ndash439

T Gruchmann et al

163

Riege A M (2003) Validity and reliability tests in case study research A literature review with ldquohands-onrdquo applications for each research phase Qualitative Market Research An International Journal 6(2) 75ndash86

Ruppert-Winkel C Boumlhm M Brunn C Funcke S Kress-Ludwig M Papke K et al (2017) Nachhaltiges Handeln in Unternehmen und Regionen Ein Wegweiser fuumlr den Ausbau und die Kommunikation von sozialen und oumlkologischen Aktivitaumlten insbesondere von kleinen und mittleren Unternehmen (KMU) in laumlndlichen Regionen Freiburg im Breisgau (ZEE Working Paper 10)

Schaltegger S Hansen E G amp Luumldeke-Freund F (2016) Business models for sustainability Origins present research and future avenues Organization amp Environment 29 3ndash10

Schliwa G Armitage R Aziz S Evans J amp Rhoades J (2015) Sustainable city logistics ndash Making cargo cycles viable for urban freight transport Research in Transportation Business amp Management 15 50ndash57

Scholten K amp Schilder S (2015) The role of collaboration in supply chain resilience Supply Chain Management An International Journal 20(4) 471ndash484

Schreier M (2014) Qualitative content analysis In U Flick (Ed) The sage handbook of qualita-tive data analysis (pp 170ndash183) London Sage


Simatupang T M amp Sridharan R (2002) The collaborative supply chain The International Journal of Logistics Management 13(1) 15ndash30

Skjoslashtt-Larsen T (2000) European logistics beyond 2000 International Journal of Physical Distribution amp Logistics Management 30(5) 377ndash387

Stehr C amp Struve F (Eds) (2017) CSR und Marketing Nachhaltigkeit und Verantwortung richtig kommunizieren Berlin Germany Springer

Stubbs W amp Cocklin C (2008) Conceptualizing a sustainability business model Organization amp Environment 21 103ndash127

Teece D (2010) Business models business strategy and innovation Long Range Planning 43 172ndash194

Upward A amp Jones P (2016) An ontology for strongly sustainable business models Defining an enterprise framework compatible with natural and social science Organization amp Environment 29 97ndash123

Vachon S amp Klassen R D (2008) Environmental management and manufacturing performance The role of collaboration in the supply chain International Journal of Production Economics 111(2) 299ndash315


Wenzig J amp Gruchmann T (2018) Consumer preferences for local food Testing an extended norm taxonomy Sustainability 10(5) 1ndash23

Willer H amp Lernoud J (2013) The world of organic agriculture Statistics and Emerging Trends 2016 FiBL-IFOAM Report

Wiskerke J S (2009) On places lost and places regained Reflections on the alternative food geog-raphy and sustainable regional development International Planning Studies 14(4) 369ndash387

Yin R (2009) Case study research Design and methods Thousand Oaks CA SageZott C Amit R amp Massa L (2011) The business model Recent developments and future

research Journal of Management 37 1019ndash1104



Chapter 8A System Dynamics-Based Simulation Model to Analyze Consumersrsquo Behavior Based on Participatory Systems Mapping ndash A ldquoLast Milerdquo Perspective

Gustavo De La Torre Tim Gruchmann Vasanth Kamath Ani Melkonyan and Klaus Krumme

Abstract The complexity of the term sustainability is encouraging both policy makers and industry to expand their methodology of solving environmental social and economic issues In the field of applied science sustainability-related research is thematic and policy driven therefore involving the widest possible range of stake-holders is of importance High uncertainty problems and high-risk decisions such as sustainability-related topics are difficult to analyze and solve with conventional sci-entific approaches and tools Accordingly discrete simple and short-term systems regarding one specific problem are increasingly being replaced by dynamic com-plex long-term real-time interdisciplinary models This peculiarity requires decision- makers to have a system thinking approach Participatory systems map-ping (PSM) is in this context a methodology in which a structured process is used to design cause-and-effect relationships between different factors and elements in a defined system It provides a multi-perspectival understanding of problems and can help to formulate effective policies for complex sustainability issues This will be represented in a first instance as a causal loop diagram (CLD) and subsequently as a stock and flow diagram (SFD) which is an equation-based system dynamics (SD) modeling technique This will be of assistance in developing strategies and recommendations for the food industry where consumers are creating a dynamic environment through quickly adapting their consumption habits which are currently characterized by a growing demand for sustainable food production As a result this

G De La Torre () middot A Melkonyan middot K KrummeCentre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germanye-mail gustavdelatorreuni-duede

T Gruchmann WittenHerdecke University Centre for Sustainable Corporate Leadership Witten Germany

V Kamath TA Pai Management Institute in Manipal Operations Management Manipal Karnataka India

166

increasing importance of local and organic food logistics networks has a direct impact on the last mile and its sustainability performance Therefore the present study intends to contribute to the understanding of the system dynamics in local food logistics networks

Keywords Causal loop diagrams middot System dynamics middot Sustainability middot Participatory systems mapping middot Last mile distribution middot Word of mouth middot Innovation diffusion

Purpose of the Study

The purpose of this chapter is to discuss the relevant system elements their interac-tions and their future possible changes combining and evaluating systems for future sustainable development under consideration of logistics services along the food supply chain This is a system thinking-oriented holistic approach optimizing the processes from environmental consumer and political perspectives (Jackson 2003 Wolstenholme 1990) With the help of participatory systems mapping (PSM) as a system thinking approach which has emerged in the last few years participants jointly devise diagrams on a topical issue and develop policy recommendations In this line the paper discusses an experiment which applies this method concerning the issue of sustainable consumption in conjunction with the analysis of the supply chain of a case study To analyze these practices systematically the scope of the study was narrowed to the last mile since the last mile serves as the ldquomeeting pointrdquo of farmersretailers and consumersrsquo behavior (Gruchmann et al 2016) For this pur-pose a case study has been analyzed It is important to mention that systems map-ping has many significant features that can enrich participatory methodologies However the participatory potential of systems mapping might be limited because it can be demanding for groups with lower levels of knowledge

The structure of the chapter is as follows In the next section the relevant litera-ture streams of supply chain and marketing research in the last mile as well as SD modeling and simulation are introduced Section ldquoResearch Designrdquo describes the research design while section ldquoResults and Discussionrdquo presents and discusses the results Section ldquoConclusionsrdquo concludes the chapter accordingly

Literature Review

This subchapter looks at the current industrial and academic development in the supply chain specifically the last mile distribution regarding e-commerce and the application of system dynamics modeling as a decision-making tool based on word of mouth (WoM) communication theories

G De La Torre et al

167

General Supply Chain Research

Gudehus and Kotzab (2012) believe more complex interconnected substructures of sourcing production distribution and consumption as well as closed loops in the supply chain are necessary (Kumar and Nigmatullin 2011 Dowlatshahi 2010) Michael Porter introduced the concept of the industry or business value chain in 1980 and it has been cited in recent years to establish the foundation of new busi-ness sustainable strategies (Daneshpour and Takala 2016 Nicolograve and Jean-Vasile 2016 Rahdari 2017)

Instead of describing the business as a set of sequential operations the value chain perspective proposes a set of processes jointly carried out by numerous actors who work together to produce value for a common end The sustainable supply chain is a system based not only on economic drivers with a focus on productivity but also including socio-ecological aspects along with economic ones This com-plex system consists of interaction between and within human environments includ-ing the social outcomes of their activities These interactions follow a general structure of the product flow through a particular path which depends on the prod-uct characteristics size and market power of the supply chain members (Maloni and Brown 2006) Therefore the single supply chain components are not constants but are affected by several trends over time in particular affecting

bull Consumer consumption patterns In the past decades demand shifts have been observed leading to more health-conscious as well as environmentally aware consumption behaviors

bull Policy regulations Internal (company made) and external (government made) standards seem to be on the rise to prove a high degree of supply safety with less environmental degradation

bull Decision-making processes Focusing on improving efficiency along the supply chain while keeping the cost to a minimum generally has a negative impact on the environment causing negative feedback mechanisms (Armendaacuteriz et al 2016)

bull Technology use Advances in information technology (IT) and electronics have made it possible to provide uninterrupted tracking within the supply chain to improve delivery service (Bowersox and Daugherty 1995)

Last Mile Distribution

The existing efforts and research endeavors related to the interaction of last mile supply structures last mile logistics and e-commerce solutions have been mainly of contingent character (Esper et al 2003 Punakivi et al 2001) Even though such explorations prove and develop a better understanding of the cause and effect of those structures these are not able to capture the system dynamics and the correla-tion between the different elements in a given system (Flynn et al 2010) Therefore

8 A System Dynamics-Based Simulation Model to Analyze Consumersrsquo Behaviorhellip

168

a holistic approach can support a traditional approach by enhancing the existing knowledge and at the same time offer new insights on the subject

There are several publications and studies which address the structure of the last mile The periodical analysis of global trends and strategies focus specifically on the courier express and parcel market (CEP) (Straube and Pfohl 2008) Klaus et al (2011) Kille and Schwemmer (2012) and Salehi et al (2011) concentrate their research on the analysis of the demand of CEP providers whereas Esser and Kurte (2014) as well as Bogdanski (2015) carry out a more in-depth analysis with the consideration of future deliveries in city centers

Other efforts explicitly consider the logistics to supply the end consumer (business- to-consumers B2C) and the commercial logistics transactions of compa-nies (business-to-business B2B) dealing with innovative conditions of e-commerce service solutions from the perspective of production and logistics (Petermann 2001) Helmke (2005) addresses two aspects of the general supply chain supply and demand examining in particular service level customersrsquo satisfaction and loyalty to these business models

During the last 10 years the economic environmental and social aspects of transport and distribution as well as the time-based demand structures for B2C B2B and recently customer-to-customer (C2C) business models have increasingly been focused on the dynamic development of e-commerce and its impact on society and supply chain In this respect Henschel (2001) and Popp and Rauh (2003) inves-tigate the location factors of e-commerce and study the interactions and dependen-cies between consumers producers retailers and logistics providers from a perspective of SD to identify the main key elements of the system In a similar way Farag (2006) explores which factors influence purchasing behavior in e-commerce and in retail stores In addition he examines the geographical distribution of inter-net users and online shoppers (relative distance between customer and shopspick-ing stations)

In summary the abovementioned analysis and studies offer a holistic overview of the last mile and the stakeholders involved With the help of these approaches structures and interdependencies between the main elements of the system can be analyzed in detail These existing databases with regard to supply and demand as well as e-commerce patterns are to be used to parameterize the SD model

Word of Mouth

The concept of ldquoword of mouthrdquo (WoM) plays a key role in SD models addressing the reduction of risks and uncertainty in customer acquisition and retention (Murray and Schlater 1990) WoM can be defined as a communicational informal C2C strategy taking into consideration the characteristics and parameters of a business or a product It helps consumers to use informational and regulative influences on the service or product evaluation and purchase behavior of fellow consumers (Bone 1995 Ward and Reingen 1990) As a rule consumers acquire information about

G De La Torre et al

169

specific business models products and services from online platforms (online com-munities blogs and online product reviews) Studies have shown that consumers increasingly rely on WoM

Previous studies on WoM have primarily focused on studying the factors that initiate participation of consumers (sending or receiving information) in WoM activities and the impact of information on consumersrsquo buying decisions (Chatterjee 2001 Chen and Xie 2005 Chevalier and Mayzlin 2006 Dellarocas 2003 Godes and Mayzlin 2004) Consumers tend to rely significantly on other peoplersquos experi-ences and opinions during the decision process of adopting a new business model or service This is especially the case when the transparency of the business model is high the business model is new the criteria for an objective evaluation of the prod-uct are difficult and the perceived risk is high Past studies have also explored WoM activities in relation to factors such as satisfaction loyalty quality commitment service level trust and perceived value of a specific product or business model Harrison-Walker (2001) comes to the conclusion that the significance and value of WoM whether it is positive or negative is an important dimension that may exer-cise a huge impact on buying decisions

WoM is particularly convenient when the population used for the simulation is heterogeneous or when the structure of the interactions between individuals in the system is complex and heterogeneous (Garcia 2005) Likewise it allows the incor-poration of insights from another stream of literature that focuses on the role of individual differences and social network structures as critical variables for explain-ing the process of WoM (Bohlmann et al 2010) as well as trying to identify which stakeholders play key roles in the WoM process at different stages of the innovation diffusion process (Chatterjee and Eliashberg 1990)

Innovation Diffusion

Innovation diffusion is a well-established theory which has been in existence for several years Diffusion models have traditionally been used in marketing for the analysis and evaluation of life cycle dynamics of a new product business model or service It is also used for forecasting the demand for a new product and as a deci-sion tool in making prelaunch launch and post-launch product strategic decisions (Radas 2005) The basic models of innovation diffusion had been established by the 1970s The most famous models are the logistics model (Mansfield 1961) and the Bass model (Bass 1969) Subsequently model development focused on modifying these basic models by including a higher level of detail and therefore extensive interpretation and practicality The main modifications and developments include the introduction of marketing variables in the parameterization of the models and generalization of the models in the context of diffusions in application areas and through the use of up-to-date technologies In practice the main application areas are centered on the introduction of consumer durables and telecommunications innovations The task at hand is to include sustainable and logistic parameters into


170

these models in order to create a sustainable decision tool in respect to consumersrsquo behavior and logistics aspects

The Bass diffusion model has become one of the most popular models for new product growth and the introduction of new business models (Chandrasekaran and Tellis 2015) It is extensively used in marketing strategy management of technol-ogy and in this case specifically sustainable process development Bass (1969) solved the start-up problem by assuming that potential adopters become aware of the innovation through external sources whose extent and influence are constant over time

System Dynamics Modeling

The traditional approach to system dynamics focuses primarily on supply chain man-agement which concentrates on inventory planning reordering policy development lead time optimizing demand analysis supply chain design capacity planning of the remanufacturing networks integration of recycling into the supply chain design vendor-managed inventory on transport operations bullwhip effect and inventory oscillations and international supply chain management (Coppini et al 2010 Disney et al 2003 Minegishi and Thiel 2000 Oumlzbayrak et al 2007) Similarly Saad et al (2003) present a discrete event simulation approach for the contextual load modeling of a packaging industry supply chain system Their main focus is to examine how tactical decision policies would provide stability in the presence of disturbances as well as evaluating the effect of disturbances on the system (Saad et al 2003)

In order to gain input information for the design and development of system dynamics models it is necessary to operationalize techniques of system thinking methods such as PSM into SD modeling which has been proven to have a rich tradi-tion not only in a sustainability context but also for decades in traditional SCM (Tako and Robinson 2012) In this context SD modeling is seen as a tested instru-ment to analyze problems of dynamic complexity in a wide range of settings (Sterman 2000) Forrester (1968 1977) was the first author who scientifically described SD modeling namely as ldquothe investigation of the information-feedback character of industrial systems and the use of models for the design of improved organizational form and guiding policiesrdquo (Forrester 1977 p 13) Moreover Wolstenholme (1990) who incorporates the quantitative simulation concept pro-vides an extended definition He defines SD as a ldquorigorous method for qualitative description exploration and analysis of complex systems in terms of their pro-cesses information organizational boundaries and strategies which facilitates quantitative simulation modelling and analysis for the design of system structure and controlrdquo (Wolstenholme 1990 p 3) Interpreting these definitions SD model-ing leads to a profound understanding of complex issues and systems as well as their circumstances Sterman (2006) calls these issues ldquoneedle-in-a-haystack prob-lemsrdquo when complexity arises from finding the right path among a high number of possibilities Accordingly SD modeling deals with nonlinear behavior of complex

G De La Torre et al

171

systems over time (Morecroft 1992) aiming to describe systems with the help of qualitative and quantitative models but also to understand how feedback structures determine a systemrsquos behavior (Coyle 1996) So far SD modeling has established itself as a computer- aided simulation method Here feedback structures are actively created and decision- making rules are derived from the knowledge learned through simulation According to Davis et al (2007) SD simulation is also increasingly used as a methodology for theory development Particularly for longitudinal and nonlinear processes simulation can help to build a more comprehensive and precise theory from the so-called simple theory (Davis et al 2007)

Although CLDs are not part of the original process described by Forrester (1977) it is one of the most important qualitative modeling methods (Coyle 1996 Sterman 2000) Generally CLDs comprise a set of nodes and edges which consist of a set of variables connected by arrows denoting the causal influences among them Here a feedback loop contains two or more related variables that relate back to themselves These relationships can be either positive or negative In this context CLDs fill the knowledge gaps in SD models to gain a sense of nonlinear systemsrsquo behavior based on feedback structures and to identify assumptions and underlying mechanisms in mental models (Sedlacko et al 2014) Therefore CLDs can be considered as the basis for simulation modeling They additionally fulfill the central task of bringing people closer to understanding systems in the sense of ldquosystemic thinkingrdquo (Coyle 1996)

These are currently used prior to simulations to illustrate the basic causal behav-ior over time in order to articulate a dynamic hypothesis of a system as an endoge-nous consequence of feedback structures CLDs constitute a good foundation for system modeling (Haraldsson and Sverdrup 2003) However the transition to a simulation model is not simple The information for the SFD is hidden in the CLDs implicitly encrypted in links and elements Extracting stocks flows and auxiliaries from a CLD involves additional analysis of the links and what they represent This procedure could increase the number of factors in the system

Research Design

Developing a reliable model to explore a new sustainable alternative model and examine the behavior of the market development from the consumer point of view is becoming increasingly important This study provides a methodological frame-work which is practical in building confidence namely through SD modeling of a local food supply network The operations of this network are in the hands of the food cooperation NETswerk which runs an e-food online platform to distribute locally produced organic food from small farmers in the Linz region in Austria This framework is designed to enhance the modelrsquos reliability by combining group pro-cess techniques like workshops group discussions brainstorming through the application of PSM and fieldwork with SD modeling (Melkonyan et al 2017) The framework covers three stages of the model-building process PSM modeling and simulation (see Fig 81)


172

Participatory Systems Mapping

The complexity of sustainability issues is encouraging both policy makers and industry to expand their methods on solving environmental social and economic sustainability problems In applied science sustainability-related research is the-matic and policy driven so involving a broad spectrum of stakeholders is vital High uncertainty issues and high-risk decisions such as sustainability research can hardly be conducted with conventional scientific approaches and tools PSM in this context is a new participatory process in which a structured process is used to design CLDs on a current topic and through their results develops strategies and recommendations (Sedlacko et al 2014) Thus PSM generally aims to develop and analyze CLDs to provide insights into a particular issue while using a facilitated group process to connect the mental models of participants through structured discussions (Sedlacko et al 2014) Accordingly participants work in groups and follow a predefined script

Setup working group

Analysis of problems

Preliminary mental representation

revised mental representation

Initial CLDampSFD

revised CLDampSFD

Adjustment of the model

Calibration of the model

Test and validation

Design of experiments

Analysis of the results

OK

No

Yes

OK

Yes

OKYes

No

Participatory System Mapping (PSM)

Workshop

Group analysis

Field Survey

SD - Modelling process

Fig 81 Modeling processmdashparticipatory mapping and system dynamics (Source Own illustra-tion based on Wang and Cheong (2005 p 1789))

G De La Torre et al

173

over a certain period of time guided by a moderator developing a mental representa-tion identifying the related CLD and SFD with which a simulation model can be developed Mental representations were drawn in workshops attended by a group of industry stakeholders and researchers who draw knowledge from experts by solicit-ing their judgment Subsequently the following concrete steps were conducted

In a first step participants are given the opportunity to discuss the scope and boundaries of the subject for investigation and are also introduced to the basics of SD The main task is to identify relevant variables in the system and to classify them into categories (actors success factors barriers and communication measures) in order to create a mind map In the next step participants are instructed to determine causal connections to establish cause-effect relationships between the variables fol-lowed by an attempt to lead back these effects directly to the causes (creating feed-back loops) Consequently the mappings in the third step are based on suggestions from the participants to incrementally add and connect new variables to the CLD This often leads to group discussions about causal connections and the cor-responding supporting evidence During the process the participants experience effects of combined feedback loops identify cascade effects (if present) and take new standpoints on emergent systems behavior Through the inclusion of partici-pants from different disciplines the group has the opportunity to obtain new input and is able to test the impact of the model and identify knowledge gaps Consequently knowledge sharing and breakthroughs usually take place in the fourth step During this step remaining knowledge gaps are identified in order to find out where further research is necessary to complete and specify the CLD The last step of the process is the conversion of the CLD into a SFD To summarize the integrated approach Fig 82 graphically illustrates the described steps

2 Formulation of the joint rough

model

3 Formulation of the detailed

model

1Boundaries of the system (framework conditions)

Classification ofthe actors

success factorsand barriers

Formulation ofldquoMind Mapsrdquo

Construction ofCausal-Mapsrdquo

Analysis of theDiagram

Creation of aSystem Dynamic

Model

4 Identification of measures and

recommendations

5 Conversion of CLD to SFD

Fig 82 Formulation of mind mapping and creation of causal maps (Source Own illustration based on Kiraacutely et al (2016 p 505))


174

Modeling Process

Setup Working Group of Participants

In order to address a certain topic or issue a group process needs to be established Due to the diverse and different connotations of the analyzed topic involving differ-ent participants with different backgrounds is recommended depending on the complexity of the topic to be solved The main questions to be answered at this stage are who the participants of this exercise are how the participation process should be structured and to what extent the results affect the final decisions The partici-pants of this exercise should be able to communicate freely with each other within the discussion workshops For instance the working group dealing with questions on sustainable logistics can be composed as follows a project management expert a logistics expert a sustainability expert an experienced SD modeler one market analyst from a consultant company a government representative and at least one industrial representative Additionally one of the members of the group acts as the moderator organizing discussions disseminating information and analyzing data As soon as the group has been established a detailed list of tasks is planned to guide the participants and to achieve the proposed objectives

Problem Analysis

The problem analysis is a set of systematic tasks meant to increase the working groupsrsquo understanding of a certain situation Considering the proposed objectives the working group will define the research questions in order to determine the boundaries of the system to be analyzed A qualitative question will be used to describe the objective of the study This question will then be subdivided into sev-eral exploratory sub-questions The scope of the questions will help choose the boundaries of the target system or subsystems The main technique employed in this step is based on a number of workshops with different groups in which the dis-cussed topics are approached from different strategic levels In this particular study the purpose is to develop a model that can be used to explore the behavior of poten-tial customers when adopting a new sustainable business model based on a local food supply network Factors like affordability average distance to stores or pickup stations frequency of delivery marketing measures and the effect of word of mouth will influence the relative attractiveness of the new model taking into consideration logistics aspects as exogenous components of the system

This study will focus on examining the processes within the last mile delivery that might contribute to the development of new business models dependent on the behavior of consumers changing the dynamics of a traditional distribution process Specifically the influential endogenous factors that will be identified might provide policy makers and planners with insights on how to understand local food networks and their expansion in the future

G De La Torre et al

175

Initial Mental Representation

The initial mental representation was based on the input of the participants during the first workshop The brainstorming results were compiled in mind maps and structured according to the following elements actors success factors barriers and communication measures This information represents the foundation and is an important step in conceptualizing SD modeling (Forrester 1992 Randers 1980) The purpose of this step is to develop an initial general overview of the elements interacting in the system and their dynamic interrelationship An analysis of the boundaries and identification of the state factors involved in the last mile delivery logistic process was included

Several workshops should be conducted afterward If possible the participants should be diverse in terms of age work experience work field education origin etc The number of participants and the number of workshops should be adapted according to the requirements and budgeting of the study and are determined by the working group System boundaries and the state of involved variables and compo-nents are listed for further analysis with the help of mind maps The working group should combine the mental representations from all the workshops and draw a dia-gram describing the boundaries and the state factors In this study the boundaries of the food supply network are of a geographical nature the Upper Austrian region near Linz The main influential factors include potential consumers logistic service providers logistic infrastructures performance indicators marketing measures behavioral analysis etc

Revised Mental Representation

The mental representation of the study is presented in the form of mind maps which are further enhanced through the application of PSM during several workshops with different participants The transition of mind maps to CLDs takes place gradually after feedback from the participants These mind maps illustrating the mental repre-sentations are then provided to the selected experts for further discussion

In order to model this specific case study it is preferable to have experts selected from academia industry government and if possible communication experts These participants will act as the basic research team After several rounds of dis-cussions an agreement can be reached and the new findings can be stored as an optimal option of the mental representation of the system Nevertheless this men-tal representation is not the definitive structure representing the system It will be used as a preliminary milestone and basis for the next steps due to the iterative nature of the modeling process The structure and dynamics of the mental repre-sentation in the modeling process will be continuously analyzed and adjusted in the next steps


176

Initial Causal Loop Diagram and Stock and Flow Diagram

The variables or factors included in the mental representation can be classified in four general categories level variables rate variables auxiliary variables and exog-enous variables (Sterman 2000) A level variable also known as ldquostockrdquo determines the state of the system at a point in time A rate variable also known as ldquoflowrdquo changes a stock over time An auxiliary variable provides information on level and rate variables and defines intermediate concepts involving stocks and flows at a given time period An exogenous variable is an outside variable that is not part of the internal dynamic of the system and therefore not affected by the behavior of the system

Whether the exogenous variables are applicable or not should be determined after some iterations and simulations As was previously done in the step of the initial mental representation each member of the working group will classify the variables and together with a system dynamics modeler attempt a first draft of a CLD and later through the inclusion of the list of variables and their definitions the CLD will be converted into an SFD A discussion takes place among the group members to reach agreement on the initial CLD and SFD

Revised Causal Loop Diagram and Stock and Flow Diagram

In this step the working group will attempt to interpret the initial CLD and SFD together with the insights of the application of PSM and the workshop results which are of genuine practical relevance Critical analyses of the initial CLD and SFD based on the case study and its applicability are designed and provided to the group of experts This process can be performed alongside other surveys concentrating on customer behavior After discussion the group will implement the changes into the new CLD and consequently to the new SFD

General Structuring of Knowledge Formalization

This step aims to establish the relationships between variables appearing in the CLD and SFD from a mathematical and logical point of view The main objectives in this step are the implementation of valid practical theories the modification of existing models and through these the development of new concepts and recommendations

Based on Wang and Cheong (2005) the examination of the relationships between variables and any existing models and theories that are applicable is recommended If there are no models or theories that address the analyzed topic the participants of this study have to develop their own theories after interviewing experts in the relevant discipline and update the mental representation and consequently the CLD and SFD

G De La Torre et al

177

Calibration

A middle-sized system dynamics model could consist of many variables and even more parameters These should be adjusted before the model simulations run The parameters used in the model could be classified as non-sensitive and sensitive parameters (Wang and Cheong 2005) The non-sensitive parameters are of indepen-dent character affecting a model without being affected by it and whose qualitative characteristics and method of generation are not specified by the modeler Their values or range of values can be determined by common sense or judgment because of their non-sensitivity Due to their properties most of the non-sensitive parame-ters are also classified as exogenous (affecting the model from the outside) Sensitive parameters are further divided into available parameters and unavailable parame-ters The values of available parameters are extracted from external sources such as previously conducted studies input information regarding case studies or generally available databases Unavailable parameters could be obtained through data collec-tion during the application of the PSM methodology or surveys with possible con-sumers with different backgrounds and also representatives of the industry logistic service providers supply chain stakeholders etc

Testing and Validation

Testing and validation is the process of determining if a model implementation and its related data accurately represent the original conceptual description and specifi-cations This phase focuses on understanding the behavior between the elements of the real system and the corresponding elements of the simulation model and on determining whether the differences are acceptable compared to the intended pur-pose of the model If a satisfactory agreement is not reached the cause of the prob-lem must be identified the model adjusted and rectified and the conceptual model validation performed again This is an iterative process and is conducted until no more problems are identified

Finally the CLD presented in Fig 83 depicts the relationships between the essential elements of the SD model analyzing consumer behavior As outlined the CLD was transformed into a SFD (see Fig 84 and Table 81) based on the extended research on the subject (Binder et al 2004) The results of the system dynamics simulation are presented in the next section

Results and Discussion

The simulation was conducted for a pilot case study with an Austrian company that aims to adapt new sustainability practices into the regional distribution of local sustainable products The influence of the strategic changes on the simulated model was studied in the form of various scenarios and the results and behavior of the


178

Fig

83

C

ausa

l loo

p di

agra

m o

f co

nsum

er b

ehav

ior

base

d on

PSM

met

hodo

logy

Ow

n ill

ustr

atio

n ba

sed

on th

e co

nduc

ted

wor

ksho

ps

G De La Torre et al

179

Pote

nti

al

Cust

om

ers

Cust

om

ers

new

cust

om

ers

leav

ing c

ust

om

ers

obso

lesc

ence

tim

e

seed

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om

ers

Mar

ket

Siz

esa

les

size

frac

tion w

ould

be

wit

h r

eal

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spec

ts

would

be

adver

tisi

ng

sale

s

sale

s

adver

tisi

ng

spen

din

g

adver

tisi

ng

effe

ctiv

enes

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om

er s

ales

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ctiv

enes

s

would

be

word

of

mouth

sal

es

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es p

er c

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om

er

Tota

l sa

les

Gro

ss p

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e le

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ross

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al

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ess

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l dis

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180

Table 81 List of variables used in the system dynamics modelmdashbasic scenario

Name Definition Units

Market size 598000 (households Upper Austrian region) CustomersFraction would be with real prospects

Potential customersmarket size ndash

Seed customers 375 (households) CustomersTime normal- obsolescence

52 (1 year) Weeks

Potential customers

INTEG (leaving customers-new customers market size-seed customers)

Customers

Customers INTEG (+new customers-leaving customers seed customers)

Customers

Leaving customers DELAY1I (customersobsolescence time 100 0) CustomersFuel price 120 euroliterFixed cost running DC

18000 euroDCyear

Packaging cost 05 euro purchaseSales per customer 44 eurocustomerNumber of distribution centers (DC)

With lookup (ABS(customersavg customer per DC) DC

Number of trucks per DC

2 Truck

Fixed cost trucks 12000 eurotruckAverage purchase per customer week

10 Unitsweekcustomer

Customer purchase Customersaverage purchase per customer per week UnitsweekLiter of fuel per purchase

085 Literpurchase

Fuel cost Fuel priceliter of fuel per purchasecustomer purchase euroTotal sales Sales per customercustomers euroGross profits Total sales-operational expenses euroEmployees per distribution center

3 Employees

Performance employee

210 Unitsday

Hours per shift 75 HoursweekEmployee strength Employee per distribution centernumber of distribution

centers DCEmployees

Average salary 225 euroweekEmployee salaries Average salaryemployee strength euroOperational expenses

Employee salaries+(fixed costs of running DCsnumber of distribution centers DC) + fuel costs+(packaging costsaverage purchase per annum) + (fixed cost trucksnumber of trucks distribution)

euro

(continued)

G De La Torre et al

181



Service level INTEG (service improvement rate 05) ndashService improvement rate

SI rate52 ndash

SI (service improvement) rate

005 ndash

Service expectation

095

Customer sales effectiveness

If then else(service levelservice expectation le1 01 0) sales effectiveness normal

ndash

Word of mouth sales

Customerscustomer sales effectiveness Widgetyear

Sales (Would be word of mouth sales + would be advertising sales) fraction would be with real prospects(1 + relative attractiveness of new model)effect of collaboration

Widgetyear

New customers Salessales size Customersyear

Sales size 1 Widgetcustomer

Relative attractiveness of new model

(Effect of average distance to DCeffect of frequency of delivery) + effect of relative affordability

ndash

Effect of frequency of delivery

If then else(actual frequency lt ideal frequency 1 01) ndash

Ideal frequency 1 Deliveryweek

Actual frequency (1actual distance)3 Deliveryweek

Effect of average distance to DC

With lookup(actual distanceideal distance) ndash

Ideal distance 2 kmActual distance 1number of distribution centers15 kmEffect on collaborative delivery

Willingness to collaboratecollaboration normal ndash

Collaboration normal

1 ndash

Willingness to collaborate

Collaboration lookup(customers) ndash

Advertising spending

Gross profitsfraction spending on advertising euroweek

Fraction spending on advertising

005 (5) ndash

Would be advertising sales

Advertising spendingadvertising effectiveness Widgetweek


182

system analyzed and interpreted The model makes use of real input data and input information gathered during several workshops as well as assumptions and theoreti-cal values

The simulation was made for an assumed market size based on the number of households in the Upper Austrian region which is around 598000 (Statistik Austria 2018) The current number of customers is only 375 which means that the possible theoretical number of potential customers would be (598000ndash375 = 597625 cus-tomers) The logic behind the model is that potential customers are transformed into effective customers as soon as a sale of a product is made (see Fig 85)

In the model the sale of products is directly linked to the profit of the company Part of this profit will be invested in sustainability advertising and image These investments represent a fundamental key factor to develop new strategic measures and policies which will prove to be indispensable in improving the overall perfor-mance of the company Thus the change and adjustment of the new business model and its smooth transition are time dependent

The main structure of the simulation focuses on the relative attractiveness of the proposed model This attractiveness is dependent on the following adopted proper-ties the sales arising from word of mouth the sales through formal classical adver-tising the effect of collaboration the effect of relative affordability compared to competitors the effect of average distance to the pickup points and the effect of frequency of delivery The basic concept behind the relative attractiveness is that an offered service or product cannot fulfill the expectations of every customer In the-ory it means that if a company offers the best service in terms of every possible applicable attribute the market will increase its demand beyond all capacities and eventually turn into a less attractive option on the market This concept is a variation of the ldquolimits to growthrdquo archetype (Meadows et al 1992) while ldquolimits to growthrdquo

Customers

60000

per

son

45000

30000

15000

0

0 52 104 156 208 260 312 364 416 468 520

Time (Week)

Customers Basic model

Fig 85 Evolution of number of customers over time

G De La Torre et al

183

concentrates on limits regarding capacity from a more general perspective the relative attractiveness concentrates on capacity levels of specific aspects and their dynamics over time

Demand-generating activities (word of mouth marketing) create reinforcement loops which increase customer demand Customer demand as mentioned earlier is also affected by overall relative attractiveness (effect of collaboration the effect of relative affordability effect of average distance to the pickup points and frequency of delivery) The hypothesis is that as demand increases it will reach the limits of the analyzed properties thus decreasing the overall attractiveness and consequently the demand for products

The objective of the system dynamics model is to respond to the deteriorating overall effectiveness and attractiveness of the model This will be accomplished by means of different measures aiming to restore the overall effectiveness over time In order to achieve this a set of attributes should be systematically chosen aiming for a more sustainable strategy

The implementation of sustainable strategies not only into more logistic-related issues (eg delivery process of products to customers) but also toward the corporate identity is expected to have a direct impact on the total sales and customer acquisi-tion In the same manner the relative attractiveness of the model and its attributes are expected to have an indirect impact as well

Based on the model presented in Fig 84 four simulation scenarios were performed

(a) Constant service level with no improvement of any kind (b) Constant service level with a variation of the time-related business model

acceptance (c) Variable service level and variable customer acceptance (volatile scenario) (d) Sensitivity analysis and optimized scenario with a constant customer retention

policy over time under consideration of logistics aspects

Constant Service Level with No Improvement of Any Kind

In this first simulation run the evaluated company was assumed to be maintaining a constant service level regarding the implementation of sustainable measures into a new business model with no improvement over time Three different scenario runs were simulated (Fig 86) The first trial was conducted with a service level of 05 (50) It can be observed that the customersrsquo curve is a flat almost horizontal curve tending to 0 after 2 years (around 110 weeks) It is obvious that customers prefer-ring more sustainable solutions would leave since the sustainable implementation improvement and expectations are not fulfilled and consequently there is a loss of profits as well Due to the number of customers to be served it is also clear that a single distribution center would be enough to serve customers


184

The second trial was conducted with a service level of 07 (70) In this trial it is observed that there is a significant increase of customers in comparison to trial 1 and the customersrsquo curve already shows the typical s-shaped curve of innovation of diffusion The curve rises during the very first 52 weeks (first year) in a more con-servative and reserved manner Between the first and second year the graph shows a rapid growth in demand due to a significantly better service level overall After the second year the curve reaches the saturation point of around 60000 customers and stabilizes over the coming weeks The profit curve correlates to that of the custom-ers Due to this increase in demand and customers it is advisable to expand the logistic infrastructure around the end of the second year and open a third distribu-tion center shortly afterward in order to be able to fulfill the demand

Finally in the third case a service level of 09 (90) was assumed It gives the simulation a similar s-shaped curve for customers in which the number of custom-ers increases even earlier within the second year and with a peak value at the begin-ning of the third year smoothly stabilizing after the second year In this run it is advisable to establish even a fourth distribution center for the last mile network

In summary it can be seen that the curves of customers and profit over time with a constant service level with no improvement actions will tend to reach a saturation point and afterward due to the lack of strategic countermeasures inevitably reach the value of zero This can be mainly attributed to inadequacies and the lack of sus-tainable strategies not only for the products but also for the provided services since the business model tries to acquire sustainability conscious customers Without a proper strategic sustainable planning the regular customers will start leaving and the acquisition of new customers will prove to be challenging

Fig 86 Constant sustainability effortsservice level (trial 1 50 trial 2 70 trial 3 90)

G De La Torre et al

185

Constant Service Level with a Variation of the Time-Related Business Model Acceptance

In this scenario the company was assumed to be maintaining the relative optimized sustainable service level at 80 (Fig 87) The second simulation run was con-ducted for variable time-related acceptance (time normal) and obsolescence time before the customer leaves the business model for the competitors on the market (delay) Similarly three runs were simulated The runs were conducted with the fol-lowing setups trial 1 time normal = 12 weeks delay = 8 weeks trial 2 time nor-mal = 8 weeks delay = 4 weeks and trial 3 time normal = 4 weeks delay = 2 weeks It can be observed that the effect of service level expectations and also the time- related acceptance and delay of adopting and leaving a certain business model sig-nificantly affects the strategic customer acquisition through a possible implementation of sustainable best practices The form and slopes of the three curves are different

The first trial shows a customersrsquo curve with a maximum value of around 500 customers within the very first 1 to 2 months showing a steady reduction of custom-ers and a complete loss of customers within the first 52 months (1 year) Due to a nonnegative restriction in the model the systemrsquos behavior shows a theoretical nega-tive number of customers over the second and third year Shortly after the curve starts to stabilize at around 200 weeks of the simulation (balancing effect)

Fig 87 Constant sustainability efforts (service level) with a variation of the time-related business model acceptance (Trial 1 time normal = 12 weeks delay = 8 weeks Trial 2 time nor-mal = 8 weeks delay = 4 weeks Trial 3 Time normal = 4 weeks delay = 2 weeks)


186

Consequently there is also a direct proportional loss of profit as a result of leaving customers The second and third trial with more aggressive and impatient customers both depict a faster decay in the customersrsquo and profit curves in an even faster period of time (within the first 12 and 6 weeks of simulation respectively) Due to the quan-tity of possible customers in the model and their demands it is advisable to only use one distribution center and its corresponding assets in order to fulfill the demand

Summarizing the second scenario one can observe that the shorter the accep-tance time toward a new innovative business model on the market and its delay the easier it is for the company to lose customers Although the model runs with a ser-vice level of 80 (above average) this is not enough to retain customers on a long- term basis This is perhaps due to skepticism on the part of the potential customer or decision factors such as price service level availability environmental image and word of mouth or even a poor marketing campaign could be possible

Variable Service Level and Variable Customer Acceptance (Volatile Scenario)

In this run the company was assumed to have an improvement policy over time regarding the service level The company was assumed to be maintaining its service improvement rate per year (SI rate) at 005 01 and 02 The simulation was con-ducted for variation of the acceptance time with a constant delay of 12 weeks (3 months) trial 1 time normal = 24 weeks trial 2 time normal = 12 weeks and trial 3 time normal = 4 weeks These variations represent considerable volatile sce-narios in order to observe the quick response of the model (Fig 88)

As previously three runs were simulated The first trial was conducted with a yearly service improvement rate of 5 and a normal acceptance time of 24 weeks with a delay of 12 weeks In this run it can be observed that there is no significant fluctuation of customers over time but rather a smooth transition within the first 3 years of simulation (Fig 88) Despite the companyrsquos moderate improvement policy it can be observed that a longer acceptance time will increase the quantity of customers in the first year (week 34) and fluctuate over the next 2 years without reaching a value of zero Because of the quantity of customers acquired over this time period just one distribution center would be needed In fact half of the calcu-lated area per distribution center will be needed in order to fulfill orders of custom-ers under this scenario

The second case was conducted with a service improvement level of 10 a normal acceptance time of 12 weeks and a delay of also 12 weeks In this run it was observed that there is an increase in the fluctuation of customers in comparison to the first trial the costumersrsquo curve is rather unstable reaching a value of zero for customers within the first 28 weeks of simulation and oscillating over the following 30 weeks The system itself never stabilizes and the customersrsquo curve finally decays beyond zero after 25 years

Finally in the third trial the company maintains an improvement service level of 20 the normal acceptance time of 4 weeks and a delay of 12 weeks The simulation

G De La Torre et al

187

shows a hasty and volatile behavior compared to the first two runs The system takes more than 200 weeks (35 years) to stabilize at a rather unfavorable value since the oscillation is taking place closer to the value of zero Although the improvement policy of the company was assumed to be exceptionally higher than in the other runs (service level improvement of 20 per year) just like in the previous scenario the skepticism of potential customers and the expectation of a high service level in new business models are responsible for the customersrsquo decision to leave and perhaps go back to more traditional competitors on the market which have either a better service level or are able to provide similar products at lower prices Naturally this will reduce the profit and thus the possible investment toward sustainability which would be nec-essary to improve not only the service level but also to contribute to a more sustain-able image of the company

Sensitivity Analysis and Optimized Scenario with a Constant Customer Retention Policy Over Time Under Consideration of Logistic aspects

Finally a fourth scenario was developed based on the basic scenario The main contents are the results of sensitivity analysis and optimization of the system with the help of the software Vensim

Fig 88 Variable sustainability effortsservice level and variable customer acceptance (volatile scenario)


188

The main model as previously shown contains many parameters It is interest-ing to examine the effect of the variation simulation outputs For this purpose some parameters were selected and different value ranges were given with a random distribution over which to vary them to see their impact on model behavior

Vensim has a tool which can execute such sensitivity simulations The main idea of this task is to calculate the correlation between model input and total model out-put This is done by calculating the total model uncertainty with Monte Carlo simu-lation The so-called Monte Carlo multivariate sensitivity works by sampling a set of different values from within given boundaries To perform univariate and multi-variate tests the distribution for each specified parameter is sampled and the result-ing values used in a simulation When the number of simulations is set in this case at 200 this process will be repeated 200 times

In this particular case the sensitivity analysis was performed under the following conditions and to answer the following question how sensitively does the model react depending on the service improvement rate over time The SI rate was given a random uniform distribution with a maximum value of 100 and a minimum of 1 and two main outputs were analyzed the number of customers and the opera-tional expenses of the new business model (Fig 89)

The chosen confidence bounds for this analysis were 50 75 95 and 100 The graphs in Fig 89 show the generated confidence bounds for both of the selected output values that were generated when the analyzed parameter was randomly var-ied in terms of its distribution The outer bounds of uncertainty (100) show maxi-mum values of approximately 200000 customers and a minimum value of approximately 60000 customers at the end of the simulation which also will increase the operational costs in the same time span

For the optimized scenario under Vensim the following elements based on the sensitivity analysis were considered for the definition of the ldquopayoff policyrdquo of the system dynamics model

ndash Maximizing the number of customers ndash Minimizing the total operational expenses

optimized scenario_sensitivity

Basic Scenario_opt

500 750 950 1000

Customers

200000

150000

100000

50000

00 104 208 312 416

Time (Week)


Basic Scenario_opt

500 750 950 1000

Operational expenses

2 M

15 M

1 M

500000

00 104 208 312 416

Time (Week)

Fig 89 Sensitivity analysis of the system dynamics model of consumersrsquo behavior considering logistics aspects and the diffusion of innovation

G De La Torre et al

189

ndash Maximizing the relative attractiveness of the model

With the following resultsInitial point of searchSI rate = 005Time normal = 52Delay = 12Simulations = 1Pass = 0Payoff = minus282925 times 1011

---------------------------------Maximum payoff found atSI rate = 005Time normal = 26Delay = 4Simulations = 50Pass = 3Payoff = minus140212 times 1011

A first optimized solution was calculated with the following results with a mod-erate service improvement rate per year of 5 the optimal acceptance time should be from around 26 weeks (6 months) that means that the company should be aim-ing to improve its service within the first 6 months in order to retain the customers thus avoiding losing them to the competition The delay time until the decision has been taken was set to 4 weeks (1 month) This can be for example a termination period of a subscription for a weekly delivery of products

Figure 810 shows what the new customersrsquo curve looks like in the first 408 months of the simulation run During the first 4 years the curve behaves like a

Fig 810 Customers optimized scenario


190

typical s-shaped curve on innovation where the model depicts a rather modest increase of customers in the first year followed by a rapid increase of customers to a point of saturation decreasing afterward where the system itself tries to stabilize over the next 2 years due to a prompt intervention by the company and possible strategic countermeasures

Conclusions

Overall the proposed system dynamics model can serve as a ldquowhat-if decision- making toolrdquo to observe and study processes and relationships between customer acquisition and retention from the perspective of the company and the logistics service provider At the same time the tool can be used as a template to exemplify different scenarios with different concepts and also to discern the potential of a system dynamics approach in designing and studying the interaction between the consumers their behavior regarding preference and lifestyle and the industry rep-resented in the last mile as the final stage of the distribution process by service providers producers and forwarders along the supply chain

Innovation can be defined as a product service idea process behavior or any other object which is considered new by customers The term innovation requires acceptance from customers in order to be successful but it also requires considering customersrsquo behavioral patterns and habits in this specific case sustainable aspects Innovation is sometimes resisted by customers because of barriers such as the price of the product or the service sustainable image etc In such a case some modifica-tion can facilitate its acceptance

Another interesting way to analyze the scenarios is the use of the calculation of customer retention rate which is a metric that represents the number of customers that are ldquoloyalrdquo to a business in one way or another The word loyal in this case means that customers are satisfied and decide to adopt the business model for a while

The lesson of the methodology is to recognize that being ldquoall things to all peo-plerdquo is not a sustainable strategy and that the main strategic process is to develop a structure with a chosen set of attributes in which the current business model achieves an overall higher performance and profits from retention of consumers and custom-ers which are driven by the most attractive alternative

From the abovementioned discussion of the SD model two distinct tracks of exploration can be observed in which improvements in diffusion modeling can be made (a) further research and work on time-varying parameters and (b) improve-ment in model forecasting and calculation of cumulative adopters over time

Aside from parameter variation and forecasting issues there is another way in which the SD model can be improvedmdashspecifically the consideration of other mod-els besides the Bass model since this does not consider seasonal variations in sales One way to apply seasonality is to use real yearly data as has often been done in the past and to simulate those scenarios with real life conditions Nevertheless the

G De La Torre et al

191

current circumstances in the competitive market result in the shortening of product life cycles and dynamically changing business models which do not allow manag-ers and decision-makers to wait for several years before attempting to forecast the life cycle Critical decisions have to be made soon after the productrsquos launch In this way simulation models that require less time-based data would be much more use-ful to decision-makers than long-term yearly data Such models should be able to describe and represent seasonal variations in sales predictions

All these proposed improvements for further research have the common goal of creating suitable diffusion models that would be more flexible easier to use and easier to estimate and could consequently provide users with the necessary tools for better decision-making

References

Armendaacuteriz V Armenia S amp Atzori A S (2016) A systemic analysis of food supply and dis-tribution systems in city-region systems - An examination of FAOrsquos policy guidelines towards sustainable agri-food systems Agriculture 6(4) 65

Bass F M (1969) A new product growth for model consumer durables Management Science 15(5) 215ndash227

Binder T Vox A Belyazid S Haraldsson H amp Svensson M (2004) Developing system dynamics models from causal loop diagrams In Presented at the 22nd International Conference of the System Dynamics Society Oxford UK

Bogdanski R (2015) Nachhaltige Stadtlogistik durch Kurier- Express- und Paketdienste Berlin Germany Bundesverband Paket und Expresslogistik eV

Bohlmann J Calantone R amp Zhao M (2010) The effects of market network heterogeneity on innovation diffusion An agent-based modeling approach Journal of Product Innovation Management 27(5) 741ndash760

Bone P F (1995) Word-of-mouth effects on short-term and long-term product judgments Journal of Business Research 32(3) 213ndash223

Bowersox D amp Daugherty P (1995) Logistics paradigms The impact of information technol-ogy Journal of Business Logistics 16(1) 65ndash80

Chandrasekaran D amp Tellis G J (2015) A critical review of marketing research on diffusion of new products In K Malhotra (Ed) Review of marketing research (pp 39ndash80) Bingley UK Emerald Group Publishing Limited

Chatterjee P (2001) Online reviews Do consumers use them In M C Gilly amp J Meyers-Levy (Eds) Advances in consumer research (Vol 28 pp 129ndash133) Valdosta GA Association for Consumer Research

Chatterjee R amp Eliashberg J (1990) The innovation diffusion process in the heterogeneous population A micromodelling approach Management Science 36(9) 1057ndash1079

Chen Y amp Xie J (2005) Third-party product review and firm marketing strategy Marketing Science 24(2) 218ndash240

Chevalier J amp Mayzlin D (2006) The effect of word of mouth on sales Online book reviews Journal of Marketing Research 43(3) 345ndash354


Coyle R G (1996) System dynamics modelling A practical approach London UK CRC Press


192

Daneshpour H amp Takala J (2016) The key drivers of sustainability In IEEE International Conference on Industrial Engineering and Engineering Management 2016-December 7798069 (pp 1205ndash1209)

Davis J P Eisenhardt K M amp Bingham C B (2007) Developing theory through simulation methods Academy of Management Review 32(2) 480ndash499

Dellarocas C (2003) The digitalization of word of mouth Promise and challenges of online feedback mechanisms Management Science 49(10) 1407ndash1424

Disney S M Potter A T amp Gardner B M (2003) The impact of vendor management inventory on transport operations Transportation Research Part E Logistics and Transportation Review 39 363ndash380

Dowlatshahi S (2010) A cost-benefit analysis for the design and implementation of reverse logistics systems Case studies approach International Journal of Production Research 48(5) 1361ndash1380

Esper T L Jensen T D Turnipseed F L amp Burton S (2003) The last mile An examination of effects of online retail delivery strategies on consumers Journal of Business Logistics 24(2) 177ndash203

Esser K amp Kurte J (2014) Wirtschaftliche Bedeutung der KEP-Branche - Die Kurier- Express- und Paketbranche in Deutschland Berlin Studie im Bundesverband Paket und Expresslogistik eV

Farag S (2006) E-shopping and its interactions with in-store shopping PhD Thesis Urban and Regional research center Utrecht Faculty of Geosciences Utrecht University

Flynn B B Huo B amp Zhao X (2010) The impact of supply chain integration on performance A contingency and configuration approach Journal of Operations Management 28(1) 58ndash71

Forrester J W (1968) Principles of systems Cambridge UK MIT PressForrester J W (1977) Industrial dynamics Cambridge UK MIT PressForrester J W (1992) Policies decision and information sources for modeling European Journal

of Operational Research 59 42ndash63Garcia R (2005) Uses of agent-based modeling in innovationnew product development research

Journal of Product Innovation and Management 22(5) 380ndash398Godes D amp Mayzlin D (2004) Using online conversations to study word-of-mouth communi-

cation Marketing Science 23(4) 545ndash560Gruchmann T Schmidt I amp Pyankova V (2016) How logistics services can facilitate sustain-

able lifestyles ndash An explorative study In EurOMA conference ProceedingsGudehus T amp Kotzab H (2012) Task and aspects of modern logistics In Comprehensive logis-

tics Berlin Germany SpringerHaraldsson H V amp Sverdrup H (2003) Finding simplicity in complexity in biogeochemical

modelling In J Wainwright amp M Mulligan (Eds) Environmental modelling Finding simplic-ity in complexity (pp 211ndash213) New York NY Wiley

Harrison-Walker L J (2001) The measurement of word-of-mouth communication and an investi-gation of service quality and customer commitment as potential antecedents Journal of Service Research 4(1) 60ndash75

Helmke C (2005) Der Markt fuumlr Paket- und Expressdienste ndash Eine Studie zu Kundenzufriedenheit und Kundenbindung im Markt fuumlr Paket- und Expressdienste PhD Thesis Fachbereich Wirtschaftswissenschaften Universitaumlt Kassel

Henschel S (2001) Standortfaktoren im elektronischen Einzelhandel In Berichte des Arbeitskreises Geographische Handelsforschung (Vol 10 pp 23ndash25)

Jackson M C (2003) Systems thinking Creative holism for managers Chichester UK John Wiley amp Sons Ltd

Kille C amp Schwemmer M (2012) Die Top 100 der Logistik Hamburg Germany DVV Media Group

Kiraacutely G Koumlves A Pataki G amp Kiss G (2016) Assessing the participatory potential of system mapping Systems Research and Behavioral Science 33(4) 496ndash514

G De La Torre et al

193

Klaus P Kille C amp Schwemmer M (2011) TOP 100 in European transport and logistics ser-vices (4th ed) Hamburg Germany DVV Media Group

Kumar S amp Nigmatullin A (2011) A system dynamics analysis of food supply chains ndash Case study with non-perishable products Simulation Modelling Practice and Theory 19 2151ndash2168

Maloni M J amp Brown M E (2006) Corporate social responsibility in the supply chain An application in the food industry Journal of Business Ethics 68(1) 35ndash52

Mansfield E (1961) Technical change and the rate of imitation Econometrica 29(4) 741ndash766Meadows D Meadows D L amp Randers J (1992) Beyond the limits Global collapse or a

sustainable future London UK EarthscanMelkonyan A Krumme K Gruchmann T amp De La Torre G (2017) Sustainability assessment

and climate change resilience in food production and supply Energy Procedia 123 131ndash138Minegishi S amp Thiel D (2000) System dynamics modeling and simulation of a particular food

supply chain Simulation Practice and Theory 8 321ndash339Morecroft J D (1992) Executive knowledge models and learning European Journal of

Operational Research 59(1) 9ndash27Murray K B amp Schlater J L (1990) The impact of services versus goods on consumersrsquo assess-

ment of perceived risk Journal of the Academy of Marketing Science 18(1) 51ndash65Nicolograve D amp Jean-Vasile A (2016) Sustainable entrepreneurship and investments in the green

economy (First ed) Hershey PA IGI GlobalOumlzbayrak M Papadopoulou T C amp Akgun M (2007) Systems dynamics modeling of a manu-

facturing supply chain system Simulation Modelling Practice and Theory 15 1338ndash1355Petermann T (2001) Innovationsbedingungen des E-Commerce ndash das Beispiel Produktion und

Logistik Buumlro fuumlr Technikfolgen - Abschaumltzung beim Deutschen Bundestag Hintergrundpapier Nr 6

Popp M amp Rauh J (2003) Standortfragen im Zeitalter des E-Commerce In D Ducar amp J Rauh (Eds) E-Commerce Perspektiven fuumlr Forschung und Praxis (pp 47ndash61) Passau Germany Geographische Handelsforschung

Punakivi M Yrjola H amp Holmstrom J (2001) Solving the last mile issue - Reception box or delivery box International Journal of Physical Distribution amp Logistics Management 31(6) 427ndash439

Radas S (2005) Diffusion models in marketing How to incorporate the effect of external influ-ence Economic Trends and Economic Policy 15 30ndash51

Rahdari A H (2017) Fostering responsible business Evidence from leading corporate social responsibility and sustainability networks In M Camilleri (Ed) CSR 20 and the New Era of Corporate Citizenship (pp 309ndash330) Hershey PA IGI Global

Randers J (1980) In J Randers (Ed) Guidelines for model conceptualization elements of the system dynamics method (pp 117ndash139) Cambridge UK Productivity Press

Saad N Kadirkamanathan V amp Bennett S (2003) A discrete-event simulation model for analysis of supply chain dynamics Computers in Industry Amsterdam Netherlands Elsevier Science

Salehi F Ryssel L Doll D (2011) Internationales Segment waumlchst staumlrker als Inlandsmarkt AT Kearney-Studie untersucht europaumlischen Markt fuumlr Kurier- Express- und Paketdienste httpwwwatkearneydecontentveroeffentlichungenwhitepaper_detailphpid51719practicetransportation


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Sterman J (2000) Business dynamics Systems thinking and modeling for a complex world Boston MA McGraw-Hill


194

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Tako A A amp Robinson S (2012) The application of discrete event simulation and system dynamics in the logistics and supply chain context Decision Support Systems 52(4) 802ndash815

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Wolstenholme E F (1990) System enquiry A system dynamics approach Chichester UK John Wiley amp Sons

G De La Torre et al


Chapter 9Diffusion of a Social Innovation Spatial Aspects of ldquoFoodsharingrdquo Distribution in Germany

Romy Koumllmel Carolin Baedeker and Jonas Boumlhm

Abstract The global scarcity of resources reaching the limits of growth and plan-etary boundaries cannot be overcome by technical efficiency alone As implemen-tation of countermeasures an increase in technical efficiency is important but a profound societal change comprising a transition in lifestyle and consumption hab-its must happen as well With annually 13 billion tons of registered food waste 39 of avoidable waste fall to the share of private households and 14 to wholesale and retail markets giving the field of nutrition an outstanding potential for resource- efficient behavior These large amounts of food waste imply the need for closed loops (supply chains) and innovative solutions for complex structures in parts of acquisition production distribution and consumption of food supply in private and public sectors The example of an innovative logistic system addressing food waste as a self-organized network to share food in order to preserve it from being thrown away via an Internet platform is ldquoFoodsharingrdquo Like many sustainable innovations ldquoFoodsharingrdquo is located in a niche and its diffusion is critical for its establishment which is a typical starting point for societal transformation processes According to innovations in sustainability in Germany are present but do not spread through economy and society fast enough The understanding of the diffusion dynamics of bottom-up innovations like ldquoFoodsharingrdquo is necessary for its promotion and will be the focus of the article For the first time the diffusion of ldquoFoodsharingrdquo in Germany is visualized and examined toward spatial attributes to foster sustainable innova-tions and support their diffusion There has been evidence of an increasing concen-tration of ldquoFoodsharingrdquo applications in urban areas in contrast to its rural distribution Although the dissemination of ldquoFoodsharingrdquo via distance-independent mass media is possible the ldquotransmissionrdquo of social innovation seems to take place increasingly through local ie personal contacts This seems to lead to consolida-tion in the niche rather than moving out of it One reason might be rural-urban milieu differences as a correlation between registrations and socioeconomic data can be demonstrated However since urban and rural areas also differ greatly in terms of infrastructure it needs to be investigated to what extent existing

R Koumllmel () middot C Baedeker middot J Boumlhm Wuppertal Institute for Climate Environment Energy Wuppertal Germanye-mail romykoelmelposteode

196

infrastructures such as supermarket density or logistics of food collection and dis-tribution by bicycles due to the ecological motivation of members influence the spatial distribution of ldquoFoodsharingrdquo in rural areas Nevertheless there is research potential to define what is really causing the spread of ldquoFoodsharingrdquo in rural areas to fail

Keywords Food waste middot Sustainable food consumption middot Closed loop food supply middot Spatial distribution middot Social innovation

Introduction

Despite the fact that global resource scarcity and limits of growth were already rec-ognized over 40 years ago (eg Meadows et al 1972) the implementation of coun-termeasures is far behind Some planetary boundaries are even exceeded (Giljum and Lutter 2015 p 14) Transition toward a ldquoresource lightrdquo society is necessary but cannot be achieved through a technical efficiency enhancement alone (BMUB 2012) An increase in technical efficiency is important but a profound societal change comprising a transition in lifestyle and consumption habits must happen as well (WBGU 2011 p 5 Schneidewind 2012) Behavior-oriented transitions on the usersrsquo side are necessary (BMUB 2016 Clausen et al 2011) as well as adaptations of the supply systems toward sustainability Within the transition toward a more sustainable economic system ldquosharing economyrdquo is an attempt for a solution to increase product efficiency through intensified product usage (Botsman and Rogers 2011 Leismann et al 2012 Bienge 2017 Schmitt et al 2017) The concepts of the sharing economy are social innovations which imply a change in utilization and organization rather than an invention of new products Changes in the usage of products can implicate the reorganization of current supply systems Addressing societal challenges social innovations as alternatives for action and organization appear where established institutions fail (Howaldt and Schwarz 2010 p 67) Prevalently these innovations are initiated by end users then described as ldquobottom- uprdquo innovations (Zapf 1989 p 177) Examples like these imply the position of power that consumers have over supply chains as soon as they recognize themselves as an active part of it exercising accountability and act accordingly

Outstanding potential for resource-efficient behavior caused by its embedded-ness in every day practice has the field of nutrition Annually 13 billion tons of food waste are registered by the FAO (2013) According to WWF (2015) 39 of avoidable waste fall to the share of private households and 14 to wholesale and retail markets Causes are general competitive pressures in food retail sectors and high demands in product availability together with inappropriate storage and inad-equate scheduling on the consumers part (ibid) Large amounts of food waste imply the need for closed loops (supply chains) However the establishment of closed loops is elusive due to complex structures in parts of acquisition production distri-bution and consumption of food supply in private and public sectors The example of an innovative logistic system addressing food waste as a network to share food in order to preserve it from being thrown away is ldquoFoodsharingrdquo

R Koumllmel et al

197

Although sharing food is not a new cause it is new to an individualized and digital connected postmodern society The organizational structure of ldquoFoodsharingrdquo relies on ldquonewrdquo ways of communication (via an Internet platform) and thus can be catego-rized as a social innovation by systematization after (Brooks 1982 Zapf 1989 p 177) which according to Howaldt and Schwarz (2010 p 63) is demarcated from other innovation types by its intangible feature Being an alternative to the disposal of food ldquoFoodsharingrdquo closes the supply chain by its self-organized innovative logistics of further food processing and can be called a sustainable social practice consequently

Like many sustainable innovations ldquoFoodsharingrdquo is located in a niche (Clausen et al 2011) which is a typical starting point for societal transformation process (Geels et al 2008 p 27) To establish diffusion is critical for innovations in a niche

From transformational processes supporting perspective diffusion forms a chal-lenge since ldquoFrom the point of sustainability we do not primarily have a problem of innovation in Germany but rather one of diffusionrdquo (Clausen et al 2011 p 32) Consequently innovations in sustainability are present but do not spread through economy and society fast enough (ibid) It is not clear if the causing factors at this point are userrsquos capability of adaptation or a lack of supportive infrastructures The understanding of the diffusion dynamics of bottom-up innovations like ldquoFoodsharingrdquo is necessary for its promotion This will be the focus of the article

For the first time the diffusion of ldquoFoodsharingrdquo in Germany is visualized and examined toward spatial attributes (Koumllmel 2017) First insights of connections between local ldquoFoodsharingrdquo distribution and characteristics of locations are revealed and reviewed toward trends Identified spatial aspects in ldquoFoodsharingrdquo distribution help to better understand mechanisms of the diffusion process Mainly being a privately organized logistic innovation the diffusion of ldquoFoodsharingrdquo shows spatial barriers between rural and urban areas which can be interpreted as varied requirements of local supply chains Comprehension of this phenomenon contains potential to foster sustainable innovations and support their diffusion

Case Study Foodsharing

The ldquoFoodsharing eVrdquo was founded in summer of 2012 as independent impartial and charitable registered association in Cologne Germany (Foodsharing eV 2015a b) An initiative for food rescue launched by consumer critic and activist Rafael Fellmer in Berlin joined the association shortly afterward (Foodsharing eV 2015a) The declared goals of ldquoFoodsharingrdquo are to prevent food from being thrown away in private households supermarkets and restaurants and to draw attention to food waste to strengthen the appreciation for food after all (Foodsharing eV 2015b) These goals are followed through sharing of private food surpluses and by ldquosavingrdquo of surpluses of wholesale and retail markets (Foodsharing eV 2014)

In the beginning ldquoFoodsharingrdquo was organized through a Facebook group which got replaced by its own Internet platform ldquofoodsharingderdquo in December of 2012 Every member that has food to give away can connect with potential takers The offered ldquoEssenskorbrdquo (Ger = food basket) may then be picked up personally

9 Diffusion of a Social Innovation Spatial Aspects of ldquoFoodsharingrdquo Distributionhellip

198

(Foodsharing eV 2014) Cooperations with different food processing facilities (res-taurants bakeries or supermarkets) expand the framework of action Teams of reg-istered users (ldquoFoodsaversrdquo) are formed to organize the collection of sorted out foods Food is picked up at retailers by bike by foot or by car consumed given away shared via the Internet platform or brought to so-called Fair-Teiler (Eng = ldquofairrdquo distributor and ldquofairrdquo sharer) ldquoFair-Teilerrdquo are publicly accessible localities (eg shelves refrigerators) which can be filled with food to be picked up (ibid) Public localities (eg civic centers) offer space or ldquomobilerdquo collecting points are established in public places for example food containers on bicycles (see Fig 91) A substantial advantage of this mobile distribution infrastructure is that if volun-teers who take care of cleanliness and maintenance changes or demand varies the location can be switched with low effort

The Diffusion of ldquoFoodsharingrdquo in Germany

The diffusion of ldquoFoodsharingrdquo is evaluated by its userrsquos registrations on the ldquoFoodsharingrdquo website from October 2012 to December 2016 Insights into spatial aspects of the diffusion process help to understand mechanisms of action and devel-opment tendencies Barriers and drivers for the diffusion process can be derived from the results

In the following ldquodiffusionrdquo refers to the spatiotemporal process of ldquoFoodsharingrdquo distribution whereas ldquodistributionrdquo refers to the spatial distribution of ldquoFoodsharingrdquo at a point in time According to the agent-centered approach by Rogers (2003) the diffusion of innovations is depending on the fact if people adapt or implement them People who adopt an innovation are called ldquoadaptorsrdquo (Leser 2005 p 19) From their perspective the process of diffusion is shaped as information process and thus as communication process a potential adaptor learns about an innovation and

Fig 91 A bicycle as mobile ldquoFair-Teilerrdquo (Source picture from the author)

R Koumllmel et al

199

decides for or against its adaption Different factors act upon the probability of adoption innovation properties and properties of the adaptor sociocultural environ-ment and chosen communication channel (Rogers 2003) Potential communica-tion channels where information about an innovation reaches potential adaptors are personal contacts mass media and social media The communication channels dif-fer in the extent to which personal information can be transmitted Knowledge transfer frequently occurs personal in between people with spatial and social prox-imity and is more effective the more their sociodemographic properties and attitude are related In contrast to personal contacts mass media can reach many people at the same time They address a relatively impersonal level because they can only be personalized to a limited extent Social media are gaining increasing importance with regard to the diffusion of innovations They both enable very personal contact and at the same time offer mass communication and make communication indepen-dent of location and distance (Rogers 2003)

The dataset used in the spatial analysis of the diffusion of ldquoFoodsharingrdquo will begin in October 2012 a few months after the establishment of Foodsharing eV By 2016 64127 registrations are recorded The largest increase was recorded between 2012 and 2013 (see Table 91)

At the end of the founding year 2012 (from mid-October) ldquoFoodsharingrdquo already had 1319 registrations These are concentrated not only in the founding cities of Berlin (166) and Cologne (133) but also in Frankfurt am Main (67) Munich (60) and Hamburg (55) It is remarkable that already some months after the establish-ment of ldquoFoodsharing eVrdquo and the activation of the Internet platform registrations are recorded all over Germany This is an indication of a distance-independent com-munication channel a first distribution of ldquoFoodsharingrdquo information via mass media eg via the crowdfunding campaign which was initiated before the associa-tion was founded for its financing Also in the further diffusion of ldquoFoodsharingrdquo the spatial distance to the founding cities Berlin or Cologne does not seem to play a role In the first years of ldquoFoodsharingrdquo the number of inhabitants of a city decides whether ldquoFoodsharingrdquo is locally adapted or not With a few exceptions a hierarchy of size can be demonstrated in the diffusion process A hierarchy of central locations can also be verified using a grid of spatial centrality classification (Source BKG 2017 BBSR 2017) In locations classified as ldquovery centralrdquo or ldquocentralrdquo by the end of the investigation period registrations appear to be more likely to occur than in peripheral locations There are no signs that ldquoFoodsharingrdquo communities will also develop in peripheral locations by the end of 2016 ldquoFoodsharingrdquo is disseminated in the surrounding area of the emerging ldquoFoodsharingrdquo centers (Figs 92 and 93)

Table 91 Development of ldquoFoodsharingrdquo registrations 2012ndash2016

Year 2012 2013 2014 2015 2016

Total registrations 1319 11910 26716 46080 64127Registrations per 100000 inhabitants 1 10 21 37 51Change factor to the previous year 10 21 176 138


200

Fig 92 ldquoFoodsharingrdquo density and zip codes (2014)

R Koumllmel et al

201



202

The fact that ldquoFoodsharingrdquo spreads rather in urban areas (Fig 92) can first be explained by density dependence (Hannan and Caroll 1992) according to which the foundation probability is related to population density According to traditional dif-fusion theories of geographical diffusion research which were developed on the basis of technical innovations in the 1970s and 1980s (eg Haumlgerstrand 1967 Brown 1968 Berry 1972 Bahrenberg and Loboda 1973) the relationship between adoption rate and population density at one location would have to decrease over time as the diffusion of an innovation from an innovation center to the outside takes place (ldquoexpansion diffusionrdquo) according to Brown (1968) In the case of ldquoFoodsharingrdquo the dissemination of innovation seems to be limited to innovation centers The correlation between population density and ldquoFoodsharingrdquo occurrence grows even stronger over time The increasing dispersion of the point cloud (2015) shows that this is not a deterministic relationship (Fig 94)

This result is underlined by the analysis of spatial autocorrelation of ldquoFoodsharingrdquoregistrations ldquoFoodsharingrdquo registrations in Germany cluster more and more over time and reach a stronger clustering than the population density The fact that spatial units with similarly high registration rates are increasingly cluster-ing in space can be interpreted as a stronger correlation between the likelihood of adoption of potential adopters and ldquoFoodsharingrdquo activities in their spatial proxim-ity The relevance of spatial proximity to other adopters for the probability of

Fig 94 Correlation between ldquoFoodsharingrdquo rate and population density (2012ndash2016)

R Koumllmel et al

203

adoption of potential adopters is increasing The reasons for this could be the visi-bility in public space the presence of stickers posters and information stands or reports in the local media Mobile stations such as the ldquoFair-Teilerrdquo bicycles men-tioned above increase the visibility of ldquoFoodsharingrdquo in public spaces enormously ldquoFoodsharingrdquo could be perceived as locally provensocially accepted thus reduc-ing the risk of adoption An already established ldquoFoodsharingrdquo infrastructure also reduces the hurdle to participate Onersquos own participation is enough it is not neces-sary to convince other people to adopt before an exchange system can be created Newcomers are able to integrate into existing structures

Further relationships between the arising of ldquoFoodsharingrdquo and site-specific properties have been investigated using the Cologne case study Cologne has 1060582 inhabitants (ITNRW 2016) and is thus the fourth largest city in Germany ldquoFoodsharing eVrdquo was founded in Cologne in 2012 which is the second most active ldquoFoodsharingrdquo city in Germany after Berlin and far ahead of Hamburg or Munich (Foodsharing eV 2017) A visualization of the ldquoFoodsharingrdquo quota in the Cologne area shows that this is characterized by strong spatial disparities (Fig 95) The highest registration rates are by far Ehrenfeld Neustadt Suumld and Neustadt Nord followed by Altstadt Suumld Lindenthal Suumllz Nippes and Neuehrenfeld Although all of the abovementioned parts of the stat are located in the cityrsquos center there is no clear correlation between the proximity of the center and the ldquoFoodsharingrdquo quota

Based on a study on the membership composition of ldquoFoodsharingrdquo by Ganglbauer et al (2014) the distribution of ldquoFoodsharingrdquo in Cologne area was examined for the correlation with selected sociodemographic characteristics of the city districts

Correlation analyses of typical student housing revealed a positive correlation (r = 0743) for m2 rent (City of Cologne 2016) and a negative correlation (r = minus0792) for the proportion of single-family to two-family houses in total housing space (City of Cologne 2014a) A relationship of r = 0868 for a combined ldquohousing indexrdquo

A further correlation can be proven between ldquoFoodsharingrdquo rate and the propor-tion of 21ndash34-year-olds (City of Cologne 2014b) (r = 0837) This is not determin-istic but can be explained by the overlapping with party-political preferences

For the analysis with party-political preferences an ecological ideology of the ldquoFoodsharingrdquo members based on Ganglbauer et al (2014) was assumed and exam-ined for a connection with the voting quota of the party ldquothe Greensrdquo at the 2014 council election (City of Cologne 2014c) A statistically significant relationship of r = 0788 could be demonstrated

If the characteristics of m2 rent the proportion of detached to semidetached houses in living space the proportion of 21ndash34-year-olds in the population and the voting rate of the ldquoGreen Partyrdquo are combined in a ldquolsquoFoodsharingrsquo Indexrdquo the potential for explaining the factors student character age structure and party- political preferences in the ldquoFoodsharingrdquo rate of the districts of Cologne increases (r = 0913)

The connection between ldquoFoodsharingrdquo and the student character of a place can also be found on a national scale The occurrence of ldquoFoodsharingrdquo communities in


204

Fig 95 Distribution of ldquoFoodsharingrdquo in the urban area of Cologne

R Koumllmel et al

205

peripheral rural locations can be easily modified by university locations Examples are Witzenhausen Deggendorf Holzminden Stendal and Eberswalde The same applies to central urban locations with an above-average proportion of students in the total population such as Goumlttingen Darmstadt and Heidelberg

Another observation is that in a ranking of zip code areas according to their ldquoFoodsharingrdquo quota popular student districts and in some cases trendy districts are the top performers at a national level Berlin (Neukoumllln Wedding and Friedrichshain-Kreuzberg) Cologne (Ehrenfeld Lindenthal and Belgisches Viertel) Leipzig (Neustadt-Neuschoumlnefeld) Hamburg (Hammerbrook with the Muumlnzviertel) and the inner cities of Bonn and Freiburg

Summary and Conclusion

The diffusion of ldquoFoodsharingrdquo in Germany is a good example of the diffusion of a social innovation in a digitally connected society Despite digital networking per-sonal contacts and local activity seem to be crucial when adopting new social practices

The diffusion of ldquoFoodsharingrdquo is spatially and socially selective and contrary to an even distribution There has been evidence of an increasing concentration of applications in urban areas A tendency to harmonize the ldquoFoodsharingrdquo rate of rural areas in the surrounding areas of cities is just as little to be seen as a ldquoleakagerdquo of innovation to medium-sized and small towns Although the dissemination of ldquoFoodsharingrdquo via distance-independent mass media is possible the ldquotransmissionrdquo of social innovation seems to take place increasingly through local ie personal contacts This alone provides no explanation for the urban-rural gradient of the spread of ldquoFoodsharingrdquo The different social dynamics between social networks and Internet platforms of cities and a more neighborhood-oriented social structure of ldquosharingrdquo in rural areas in relation to the diffusion of ldquoFoodsharingrdquo require further research

In the Cologne area the connection between ldquoFoodsharingrdquo quota and milieu- specific sociodemographic characteristics could be proven and they seem to have a high explanation potential with regard to ldquoFoodsharingrdquo occurrence The results confirm the classification of ldquoFoodsharingrdquo as a niche innovation It appears that certain social milieus represent a niche for ldquoFoodsharingrdquo in which ldquoFoodsharingrdquo has so far predominantly spread Although the number of applications continues to increase and there is no sign of saturation (as at the end of 2016) the identified trend of increasing concentration of ldquoFoodsharingrdquo activity with a reduction to a few spa-tial units indicates that ldquoFoodsharingrdquo is consolidating in its niche rather than mov-ing out of it What until now has made the further development and diffusion of ldquoFoodsharingrdquo possible as a protective niche now seems to represent a barrier If ldquoFoodsharingrdquo is supported by certain milieus and their social networks it is limit-ing its spatial distribution Assuming that there is a different social milieu in the countryside than in the city this may be the reason for the concentration of ldquoFoodsharingrdquo in certain predominantly urban areas


206

The adoption potential of different groups may be due to their value systems and everyday structures However the willingness to adopt an innovation like ldquoFoodsharingrdquo that is linked to traveling (to the company to the ldquoFair-Teilerrdquo to a home) may also be influenced by the existing infrastructural conditions Since urban and rural areas differ greatly in terms of infrastructure it needs to be investigated to what extent existing infrastructures such as supermarket density influence the spread of ldquoFoodsharingrdquo While in the city the collection of surplus food from a supermarket or a private person with little distance to travel can be easily integrated into everyday life in rural areas longer travel times to the nearest exchange partner or food company are conceivable which makes participation in ldquoFoodsharingrdquo less attractive The dependence on a car at collection is for example not compatible with ecological motivation or even economically unviable It would be interesting to investigate here to what extent the targeted development of ldquoFoodsharingrdquo-related infrastructures eg in the everyday life of easily accessible distribution centers by supermarkets or municipalities could promote the spread of ldquoFoodsharingrdquo in rural areas It remains questionable whether professionalization or commercialization of the organizational structure of ldquoFoodsharingrdquo can lead to an intensification and expansion of food rescue operations This may conflict with the philosophy of non-commercial self-organization of ldquoFoodsharingrdquo ldquoFoodsharingrdquo as an initiative of end consumers aims to raise awareness about food waste in order to reduce it so that the current activity of the initiative the initiative itself is no longer necessary Nevertheless there is research potential to define what is really causing the spread of ldquoFoodsharingrdquo in rural areas to fail Whether the social milieus prevent the inno-vation from being implemented or whether it is an infrastructural or logistical prob-lem accordingly an adaptation of the ldquolsquoFoodsharingrsquo logistics systemrdquo as it has so far occurred primarily in cities would be conceivable in order to establish itself in rural areas Both the adaptation of internal communication previously via the online platform and the adaptation of ldquorealrdquo ldquoFoodsharingrdquo logistics via private individu-als and distribution centers could help to exploit potential

References

Bahrenberg G amp Loboda J (1973) Einige raum-zeitliche Aspekte der Diffusion von Innovationen am Beispiel der Ausbreitung des Fernsehens in Polen Geographische Zeitschrift 61(3) 165ndash194

BBSR - Bundesinstitut fuumlr Bau- Stadt- und Raumforschung (2017) Laufende Raumbeobachtungen Raumtypen Besiedelung und Lage Retrieved April 21 2017 from httpwwwbbsrbunddecln_032nn_1086478BBSRDERaumbe obachtungDownloadsdownloadsReferenz2html

Berry B J L (1972) Hierarchical diffusion The basis of developmental filtering and spread in a system of growth centers In N M Hansen (Ed) Growth centers in regional economic devel-opment (pp 103ndash138) New York The Free Press

Bienge K (2017) Zusammenfassung ndash Ressourceneffizienzpotenzialanalysen von Nutzen statt Besitzen Angeboten Wuppertal

R Koumllmel et al

207

BKG ndash Bundesamt fuumlr Kartographie und Geodaumlsie (2017) Verwaltungsgebiete mit Einwohnerzahlen 1250 000 -Stand 31122015 httpwwwgeodatenzentrumdegeo-datengdz_rahmengdz_divgdz_spr=deuampgdz_akt_zeile=5ampgdz_anz_zeile=1ampgdz_unt_zeile=15ampgdz_user_id=0

BMUB ndash Bundeministerium fuumlr Umwelt Naturschutz und Reaktorsicherheit (2016) Nationales Programm fuumlr nachhaltigen Konsum Bonn BMUB

BMUB ndash Bundeministerium fuumlr Umwelt Naturschutz und Reaktorsicherheit (2012) Programm zur nachhaltigen Nutzung und zum Schutz der natuumlrlichen Ressourcen

Botsman R amp Rogers R (2011) Whatrsquos mine is yours How collaborative consumption is changing the way we live London UK HarperCollins

Brooks H (1982) Social and technological innovation In S B Lundstedt amp E W Colglazier Jr (Eds) Managing innovation (pp 9ndash10) New York Pergamon Press

Brown L A (1968) Diffusion dynamics A review and revision of the quantitative theory of the spatial diffusion of innovation Lund Royal University of Lund

City of Cologne (2014a) Wohnverhaumlltnisse bezogen auf die Stadtteile der Stadt Koumlln zum 31122014 httpswwwoffenedaten-koelndedataset6ed873b4-93fc-4106-b0c0- aa5a710f5335resource344f1019-3f98-497c-b496-5cb22c30097b

City of Cologne (2014b) Einwohner nach ausgewaumlhlten Altersstrukturen bezogen auf die Stadtteile der Stadt Koumlln zum 31122014 httpswwwoffenedaten-koelndedatasetfdeb99c8-8640-4539-b342-2eeaf06eefc9resource3c2bee9a-fc8b-437f-aa18-727e9b8aa5ef

City of Cologne (2014c) Ratswahl am 25052014 Wahlergebnisse nach Stadtteilen httpwwwstadt-koelndewahlenverbundwahl_2014Ratswahl_Uebersicht_stadtteilhtml

City of Cologne (2016) Retrieved April 21 2017 from Mietspiegel in Koumlln httpwwwkoelndeimmobilienmietspiegelhtml

Clausen J Fichter K amp Winter W (2011) Theoretische Grundlagen fuumlr die Erklaumlrung von Diffusionsverlaumlufen von Nachhaltigkeitsinnovationen Berlin Borderstep Inst fuumlr Innovation und Nachhaltigkeit GmbH

FAO ndash Food and agriculture organization (2013) Food wastage footprint Impact on natural resources Retrieved April 21 2017 from httpwwwfaoorgdocrep018i3347ei3347epdf

Foodsharing eV (2014) Pressetext Retrieved April 21 2017 from httpswikifoodsharingdePressetext

Foodsharing eV (2015a) Geschichte von Foodsharing Retrieved April 21 2017 from httpswikifoodsharingdeGeschichte_von_foodsharing

Foodsharing eV (2015b) Kontext und Selbstverstaumlndnis Retrieved April 21 2017 from httpswikifoodsharingdeKontext_und_SelbstverstC3A4ndnis

Foodsharing eV (2017) Statistik Retrieved April 21 2017 from httpsfoodsharingdestatistikGanglbauer E Fitzpatrick G Subasi Ouml amp Guumlldenpfennig F (2014) Think globally act

locally A case study of a free food sharing community and social networking In Proceedings of the 17th ACM conference on Computer Supported Cooperative Work amp Social Computing (CSCW rsquo14) ACM February 15ndash19 New York USA

Geels F Hekkert M amp Jacobsson S (2008) The dynamics of sustainable innovation journeys Technology Analysis and Strategic Management 20(5) 521ndash536

Giljum S amp Lutter S (2015) Globaler Ressourcenkonsum Die Welt auf dem Weg in eine Green Economy Geographische Rundschau 5 10ndash15

Haumlgerstrand T (1967) Innovation diffusion as a spatial process London University of Chicago Press

Howaldt J amp Schwarz M (2010) Soziale Innovation im Fokus Bielefeld TranscriptHannan M amp Carroll G (1992) Dynamics of organizational populations Density legitimation

and competition New York Oxford University PressITNRW (Landesbetrieb Information und Technik Nordrhein-Westfalen) (2016) Bevoumllkerung im

Regierungsbezirk Koumlln Stand Dez 2015 Retrieved April 21 2017 from httpswwwitnrwdestatistikadatenbevoelkerungszahlen_zensuszensus_rp3_dez15html


208

Koumllmel R (2017) Diffusion sozialer Innovationen Raumlumliche Aspekte der Verbreitung von Foodsharing in Deutschland Unpublished BSc thesis Universitaumlt zu Koumlln Deutschland

Leismann K Schmitt M Rohn H Baedeker C (2012) Nutzen statt Besitzen Auf dem Weg zu einer ressourcenschonenden Konsumkultur (Band Cologne 27) Berlin Heinrich Boumlll Stiftung Schriften zur Oumlkologie

Leser H (2005) DIERCKE Woumlrterbuch Allgemeine Geographie Muumlnchen dtv Verlagsgesellschaft mbH amp Co KG

Meadows D H Meadows D L Randers J amp Behrens III W W (1972) The limits to growth A report for the club of Romersquos project on the predicament of mankind Bloomington Universe Books ISBN 0-87663-165-0

Rogers E-M (2003) Diffusion of innovations (5th ed) New York Free PressSchmitt M Bienge K Clausen J Bowry J Howell E amp Rohn H (2017) Nutzen statt

Besitzen ndash Eine ressourcenleichte Konsumalternative Mythos oder Realitaumlt Wuppertal Wuppertal Institut

Schneidewind U (2012) Technik allein bringtrsquos nicht Ohne soziale Innovationen wird der Klimawandel nicht zu beherrschen sein Die Zeit 5 Januar httpwwwzeitde201202Klimadebatte-Technik

WBGU ndash Wissenschaftlicher Beirat der Bundesregierung (2011) Gesellschaftsvertrag fuumlr eine groszlige Transformation httpwwwwbgudefileadminuser_uploadwbgudetemplatesdateienveroeffentlichungenhauptgutachtenjg2011wbgu_jg2011_ZfEpdf

WWF Deutschland (2015) DAS GROSSE WEGSCHMEISSEN Vom Acker bis zum Verbraucher Ausmaszlig und Umwelteffekte der Lebensmittelverschwendung in Deutschland Frankfurt WWF

Zapf W (1989) Uumlber soziale Innovationen Soziale Welt 40(1-2) 170ndash183

R Koumllmel et al

Part IVScenario and Strategy Development for

Future Sustainable Supply Chain and Logistics Services


Chapter 10Scenario Planning for Sustainable Food Supply Chains

Ani Melkonyan Tim Gruchmann Adrian Huerta and Klaus Krumme

Abstract Regional impact scenarios of climate change show a high risk of supply deadlocks in respect to food security Moreover the impact of climate system on food security is induced by consumption systems due to shifting demand patterns within fast urbanization processes Therefore the transformational management of food supply chains shows an urgent demand for ldquointegratedrdquo and system-related solutions considering related effects of resource scarcity (eg mineral fertilizers water con-straints on energy use and land use) as well as demographic change and interlinked resource consumption Thus the development of strategies for human wellbeing national income generation ecological stability and social integrity have to be also considered while developing various scenarios for future food systems Sustainable supply chain management (SSCM) could fertilize the trendsetting concept of the sustainable and innovative food supply chains by analyzing climate change impacts adjustments in operational action fields proactive countermeasures as well as policy improvements being focused on the resilience of the food supply chains meanwhile allocating the resources efficiently and meeting population demands

With respect to food security an integration beyond the primaryagricultural sec-tors should be carried out especially for water andor energy intensive parts of the supply chain The concept of the resource nexus combined with eco-innovations for supply chains within various scenarios is discussed in the given chapter Based on scenario development and evaluation new integrated methodological strategies for supply and value chain alternatives with higher climate change resilience are devel-oped and suggested for efficient policy recommendations Thus the main aim of the

A Melkonyan () middot A Huerta middot K KrummeCentre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germanye-mail animelkonyanuni-duede

T GruchmannCentre for Sustainable Corporate Leadership WittenHerdecke University Witten Germany

212

given chapter is to discuss transition pathways for resilience-oriented natural resource use in food supply chains Moreover innovative strategies for making the food supply chains sustainable toward future climate change impacts as well as the influences of changing consumer behaviors are discussed For this all the relevant factors influenc-ing food supply chains are combined into future possible scenarios Such integrated scenarios determine transformational socioeconomic frameworks while favoring the establishment of innovative business and value chains in terms of infrastructure development business models operations cooperation and service management

Keywords Sustainable food supply chain middot Global food systems middot Scenario development and mapping middot STEEP method middot Prospective urbanization middot Pathways towards sustainable future

Introduction

The functional interconnectedness of food and energy (Speed et al 2012 Bleischwitz et al 2014 Leese and Meisch 2015 Muller 2015) is an issue which is currently highly ranked on the international research and development agenda (SEI 2011) It is predicted that by 2030 the world will need to produce around 50 more food and energy together with 30 more fresh water while mitigating and adapting to cli-mate change (UNDESA 2015) To ensure an enduring resilience of the food supply chains interdisciplinary research becomes vitally important considering the fact that the optimization parameters of water and energy use act as increasingly power-ful cost drivers Meanwhile demand integration into an entire system is required as well In addition customers create a dynamic environment through adapting their consumption habits (Beske et al 2014) In the literature several authors have already paid attention to sustainable food supply chains and networks (Bosona and Gebresenbet 2011 Caputo et al 2014) Even though some private and community-based initiatives are already established in Germany aiming to reduce environmen-tal damage on a localcity level (urbaneoasende foodsharingde) there is still a so-called green gap for citizen participation in political decisions made in sustain-able food supply chains Closing this gap is one of the major research aims of this chapter integrating all relevant factors into scenarios that reflect ecological and eco-nomic consequences of climate change and shift resource bases in the instrumenta-tion policies Thereby the chapter aims to develop reliable scenarios for designing sustainable food supply chains paving the way for effective political interventions For this the most relevant ecological socioeconomic technological and political factors affecting the sustainability of food supply chains are identified and analyzed Hereby a literature review using qualitative content analysis is the methodical basis and starting point (Seuring and Gold 2012) From the literature review derived fac-tors do not only provide relevance for assessing the sustainability of food supply chains but also pave potential solutions for integrating these factors in a practical way The STEEP (Socio-cultural Technological Environmental Economic and Political) method is used to combine these factors into scenarios For this process 10-day workshops with relevant stakeholders have been conducted The results have

A Melkonyan et al

213

been intensively discussed with industrial partners as well as logistics experts in the food supply chains Moreover the results are of high relevance for local communi-ties to make political decisions on resilient food systems

Assessment methodologies developed within this paper will contribute to the Sustainable Development Goals (SDGs) coming up with a number of trade-offs for food and sustainable management of resources This will favor the development of collaboration on climate change after the Paris COP 21 Successful strategies to achieve the goals set during the United Nations Climate Conference (COP 21 Paris limit global warming to 15 degC compared to 1990 no net CO2 emissions by 2050) are based on the assessment of low-carbon growth potential which includes systems of carbon pricing policy of green technologies and removal of barriers to behavioral change (Stern 2007) While carbon pricing can be achieved by governmental instruments like taxation and carbon trading mechanisms behavioral change within societies can be reached only through transformation processes Currently most top-down public policy-induced initiatives lack the participatory power of the stakeholders (Prothero et al 2011) Furthermore only limited knowledge is available on the actual impact of such citizen-driven actions on mitigating climate change Accordingly holistic approaches incorporating stakeholders at all levels such as citizens business politics and science are necessary (European Commission 2011 Kalkbrenner and Roosen 2016 Sarrica et al 2016) Therefore the objectives of this study are

1 To foster stakeholder participation in combating climate change in order to find sustainable solutions for food supply chains which are viable at the meso-level and acceptable at the micro-level

2 To suggest new assessment methodologies for scenario development in food sys-tems integrating consumer behavior

3 To pave transition potentials of future food systems

The novelty of the study is to combine the theory of supply chains to the food sys-tems in order to develop sustainable food supply chains based on future scenarios


Global Food Systems

Global human society nowadays is facing complex problems regarding sustainable food systems which threatens the steadily growing human population living in poverty There are 14 billion poor people living on less than one Euro a day one billion of them living in rural areas where agriculture is the main source of livelihood (IFAD 2013) The ldquoGreen Revolutionrdquo in agriculture especially in developing world during the 1960s and 1970s increased agricultural productivity and reduced poverty dramatically However those achievements were received without considering environmental externalities leaving soils degraded and groundwater depleted

10 Scenario Planning for Sustainable Food Supply Chains

214

undermining the very resource base Moreover two decades of underinvestment in agriculture coupled with growing competition for land and water rising input prices and climate change have left smallholders more vulnerable and less able to escape poverty (IFAD 2013) Therefore the sustainability of food systems is currently challenged by both interrelated internal and external factors such as the scarcity of natural resources especially water resources environmental degradation and climate change Particularly the small farms providing over 80 of the food consumed by a large part of the developing world and contributing significantly to poverty reduction and food security face these global sustainability problems Along with environmental problems such as climate change impacts on agriculture there are series of economic challenges as well including reduced investment support marginalization of small farms in economic and development policy lack of assets knowledge and infrastructures as well as low bargaining power These negative influences on small farms lead to difficulties in gaining a fair share of the value- added agriculture access to food markets as well as the inputs and food markets contributing to a vicious circle of underdevelopment

Small farms are facing challenges not only in developing countries but also in developed countries So in 2013 a total of 108 million farms operated in the EU-28 down from 12 million farms in 2010 (minus115) These losses clearly highlight the consolidation process toward larger more competitive farms across the EU with an increase in the average farm size from 144 to 161 ha of agricultural land (+122) between 2010 and 2013 (European Union 2015) The European agri- food sector has an important relative weight in the EU-28 since the share of agriculture forestry and fisheries represents 153 in the EU-28rsquos total economic activity in 20151 The total output of the agricultural industry was estimated to be EUR 4112 billion at basic prices (2015) of which 518 was generated for crops 396 for animals and the remaining 86 for agricultural services and secondary activities Total amount of the farms in EU-28 was counted to be 108 million (1744 million hectares) employing 222 million people regularly2 (42 of all employment in 20153)

Agriculture activities produce adverse impacts on natural resources and the envi-ronment through food waste generation GHG emissions and water depletion Agricultural activities in the EU-28 generated 4349 million tonnes of CO2eq in 2014 (about 985 of total GHG emissions)4 being linked to the management of agricul-tural soils livestock rice production biomass usage and fossil fuel combustion4 Agriculture is a significant user of water in Europe with overall accounting by

1 Eurostat Gross value added and income by A10 industry breakdowns Web httpappssoeuro-stateceuropaeunuisubmitViewTableActiondo2 Eurostat Statistical books Agriculture forestry and fishery statistics 2015 edition Web

httpeceuropaeueurostatdocuments32174947158355KS-FK-15-101-EN-Npdf79470e8c-abf3-43d3-8cd4-84880962cdd43 Eurostat Employment by sex age and economic activity (from 2008 onward NACE Rev 2)mdash1000 Web httpappssoeurostateceuropaeunuisubmitViewTableActiondo4 Eurostat Greenhouse gas emission statistics Web httpeceuropaeueurostatstatistics-explainedindexphpGreenhouse_gas_emission_statistics

A Melkonyan et al

215

240 of total freshwater abstracted in 20085 used predominantly for irrigation Water abstraction produces problems of water scarcity with regard to climate change like reduced river flows lowered lake and groundwater levels and the drying up of wetlands Furthermore saline intrusion of over-pumped coastal aquifers occurs throughout Europe diminishing their quality and preventing subsequent use of the groundwater

Another problem associated to agri-food value chains is the generation of food waste Around 876 million tonnes of food are wasted each year in EU-28 with an estimated cost of EUR 143 billion in 20126 Households contribute to 528 of food waste generation food processors 191 food service 124 production 101 and wholesale and retail 56

Thus the improvement of agri-food chains is a key factor for guaranteeing sus-tainable agriculture activities decreasing adverse environmental impacts along the value chain Despite this consolidation process the majority of farms in the EU are still very small More than two-thirds of all holdings work on less than 5 ha of agri-cultural land and more than half have a standard output (ie a standardized sales value over the course of 1 year) below 4000 euros a year or roughly 333 euros per month before deduction of any production costs It can be stated that the small- scale farms undergo structural changes in EU while the farms are getting bigger and more productive with a declining dependence on labor But there are still a huge number of very small farms primarily run in a part-time fashion and often by elderly farmers who are actually not well educated making the communication on external environmental vulnerabilities as well as the ways to increase the productivity and save costs relatively hard

The productivity of agriculture and its contribution to the economy food secu-rity and poverty reduction depend on the services provided by well-functioning ecosystems including soil fertility freshwater delivery irrigation practices pollination and pesticide control Farming practices in turn affect the condition of ecosystems These impacts are not always negative but poverty and immediate needs can drive smallholders to put pressure on ecosystems for example through habitat modification over-extraction of water and nutrients and use of pesticides

Besides strong environment challenges the food sector needs to respond also to societal dynamics such as demographics (aging migration) and lifestyles The change of diet habits (more calories saturated fatty acids less fibers etc) is responsible for increased diet-related diseases eg diabetes cardiovascular diseases obesity etc These large-scale health problems are associated with high costs in the health sector Moreover the extension of food supply chains with

5 European Environment Agency 2009 Water resources across Europemdashconfronting water scar-city and drought water scarcity and drought Web httpswwwgoogleesurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=2ampved=0ahUKEwi_8PK6pojRAhVDxRQKHY_WA1oQFggiMAEampurl=http3A2F2Fwwweeaeuropaeu2Fpublications2Fwater-resources-across-europe2Fdownloadampusg=AFQjCNG8B2fmgcmjB-04IC-QFreE7SvX2Qampbvm=bv142059868dd246 FUSIONS 2016 Estimates of European food waste levels Web httpwwweu-fusionsorgpho-cadownloadPublicationsEstimates20of20European20food20waste20levelspdf


216

increased logistic services energy consumption for transportation increases the risks for the society in general

So far the integration of environmental risks planning under uncertainty in terms of ldquoresilientrdquo sustainable food chains focusing on agricultural production has only been considered in the last few years (Awudu and Zhang 2012 Fiksel et al 2012 Beske et al 2014) Nevertheless a useful contextualization of economic modeling remained unexplored although debated on international level (Vermeulen et al 2012 Thorpe and Fennell 2012) Moreover interconnected aspects such as consumer preferences and political limitations have never been combined into a complex food system creating reliable future scenarios This gap will be fulfilled by the given study

In order to build scenarios of food systems in a holistic way it is necessary to consider not only the agricultural production systems but the entire supply chain as discussed in the next section

Food Supply Chains

Sustaining the agricultural systems is not only limited to shaping sustainable pro-duction ways or controlling the environmental externalities to minimize the climate change effects The entire food supply chain has to be analyzed systematically con-sidering further stages of the supply chain as well such as distribution and aggrega-tion of the products their transport to the retailer and at the end their consumption and waste disposal

As many regions worldwide are undergoing a structural change with different modes of lifestyles influencing household structures consumption patterns occupa-tional differentiation and values of the inhabitants there is a high potential to develop sustainable solutions for food supply chains The food supply chain is a system based on economic drivers with a main focus on productivity However according to Ericksen (2008) the food supply chain is a subsystem of a wider food system which represents socio-ecological system The main feature of this system is the interaction between and within the bio-geophysical and human environments including the social outcomes of their activities Thus the given study determines sustainability gaps through the entire food supply chain from an advanced scientific background of ecological economics (Prugh et al 2000) with respect to climate change

A typical food supply chain is usually defined in a broad way consisting of six stages in which the first stage is represented by the producer or the farmer (Dani and Deep 2010) (Fig 101)

In contrast to a simple supply of food materials from farms to supermarkets pre-sented in Fig 101 in fact the food and beverage supply chain is actually a more complex system being influenced by several trends (Steger et al 2008) The value chain proposed by Steger et al (2008) makes an emphasis on external factors influ-encing the food chains These trends are steadily changing consumer behavior new food and trade standards technological improvements energy efficiency use of pes-ticides human rights corruption health and globalization Despite globalization

A Melkonyan et al

217

processes worldwide there is a trending belief that local food supply chains provide several advantages over the mainstream supply chains (King et al 2015) In a more sustainable perspective like the one from the farm-to-fork movement the preferred scenario would be if the producers are local farmers urban farmers community gardens or any other kinds of sustainable food production Some advantages of local food supply chains could be preserving local landscapes strengthening of local and regional economies and providing fresher higher-quality food products

Even though some trends influencing several elements of the food supply chain are evident in European countries over many years (eg input to production agriculture food processing retailing consumption and post-consumption) consumer sensitivity and awareness toward the environment have been only slightly changed over the same time The awareness of climate change risks among other actors in the food supply chain is poorly understood and examined (Paloviita and Jaumlrvelauml 2016)

This paper proposes a holistic approach to tackle the sustainable food supply as a complex system in which top-down and bottom-up perspectives have to be taken into account while building scenarios on future food supply chains This system considers collaboration between all involved members from different parties paving a more productive efficient and sustainable world

STEEP Method for Scenario Development in the Food Supply Chain (Research Design)

According to Van der Heijden (2002) a scenario is not a prediction but it is based on the common idea being inherent with hypothetical casually coherent internally consistent andor descriptive characteristics This coherence makes uncertainty of decision very low

Scenarios are consistent and coherent descriptions of alternative hypothetical futures that reflect different perspectives on past present and future developments which can serve as a basis for action (Van Notten 2006)

WholesalerDistributor

Imports

Marketer FoodProcessor

Exports

Farm

Retailer

Carterer

Consumer

Fig 101 Food supply chainmdashstatus quo schematic (Dani and Deep 2010)


218

Generally scenario analyses have the objectives of exploration and pre-policy research In the exploratory scenario development the process may be as important as the final product This process covers learning raising of awareness stimulation of creative thinking and the investigation of social processes In the pre-policy research the scenarios are used to analyze different future possibilities that may be affected according to the desired end (Van Notten 2006)

Within the given study scenario development for the sustainable food supply chains is carried out covering both exploratory and pre-policy research perspectives though applying the STEEP method

The STEEP Analysis

The STEEP method is usually applied in marketing or business-related fields with the aim to identify external factors that could have impact on the operation of a certain organization or system Most of the factors tend to lay out of the control of the organization itself and therefore the identification of those factors is a key issue to achieve a lean process STEEP combines several statistical tools like CIB (cross- impact balance analysis) and multidimensional scaling (Lorenz and Veenhoff 2013)

Cross-impact analysis or cross-impact balance analysis (CIB) is a qualitative method to analyze the qualitative impact networks (Weimer-Jehl et al 2016) These impact networks are commonly used in many disciplines like economics energy technology foresight social science etc The method uses qualitative insight into the relations between the factors of an impact network in order to construct consistent images of the network behavior

Multidimensional scaling (MDS) is a technique to analyze the similarities of data on a set of objects used in several fields (Borg and Groenen 2005) Such data may be intercorrelations ratings or indices of any kind The main reason to use the MDS is to obtain a graphical visualization of the data structure displaying the essential information and smoothing the noise of the data statistics

The application for this study will be on displaying the correlations of the differ-ent factors that influence the food supply chain The graphical representation helps to deal with the high complexity of a system with numerous elements

Research Design and Application of the STEEP Analysis

The STEEP analysis was applied to develop scenarios for the sustainable food sup-ply chain utilizing the schematic proposal of Fig 102 developed by Lorenz and Veenhoff (2013)

During the analysis a dedicated list of influencing factors was created along the food supply chains from the perspective of the supply chain members (including the consumer) after carrying out a literature review as well as comprehensive workshops

A Melkonyan et al

219

with an overall duration of 10 days Moreover survey results (presented in Chap 4) were used to complete the list of the influencing factors including the consumer perspective

The collected factors were specified by the spheres of the STEEP model Defining the factors and evaluating their importance represent the first stage of scenario anal-ysis which is referred to as system analysis (Fig 102)

The other stages of the scenario creating process will be explained in the follow-ing section simultaneously explaining the results and the central findings of the analysis

Results

Influencing Factors and Scenario Building Process

In order to obtain the complete list of influencing factors within the food supply chain it is necessary to study a particular region of the world Here Germany was selected Lorenz and Veenhoff (2013) also conducted a study on sustainable food production and consumption in Germany Their study served as basis to set guidelines in the selection of the influencing factors for this investigation To complement the selection of influencing factors for this study the work of Paloviita and Jaumlrvelauml (2016) was applied which focuses on climate change management of the food supply chain

System analysisDevelopmentof alternative

projections intothe future

Combination of plausible sets of projections

Analysis and evaluation of

scenarios

Social

Technological

Environmental

Economical

Political

S T E E P

Step 1 Step 2 Step 3 Step 4

Scenario 1

Scenario 2

Scenario 3

S 1

S 2

S 3

Fig 102 Schematic model of building STEEP analysis (Source Lorenz and Veenhoff 2013)


220

After creating an extensive list of the possible factors key factors with the high-est impact were selected to build a cross-impact matrix (CIM) The aim of CIM is to check the influencing factors pair-wise against each other based on causal rela-tions The scale to estimate causal relations among the factors was defined between 0 and 3 (0 means no causality 3 means high dependency on each other) Active (row-wise sum) and passive (column-wise sum) were classified the outcome of which was to eliminate the factors with no significant impact on the other ones

Development of the future options is then the second stage of the scenario cre-ation At this stage two most relevant aspects for describing the key factors are identified (Table 101)

At the next stage the possible developments of the two aspects of each key factor were combined in a matrix creating a portfolio with four possible options for each factor (Ogilvy and Schwartz 2004) (Fig 103) Each option was discussed with the stakeholders during the workshops The results are shown in Fig 103 for the first two factors as two examples (portfolios for the remaining six factors are presented in Appendix Fig 108andashf) Each option for the factor ldquoGlobalizationrdquo is also shortly described in the following

Factor 1 Globalization (Fig 103 left-hand side)

Option A The level of international trade is quite low but the price pressure to deliver the food along the food supply chain is quite high This option represents local market with increased competition and low sales prices

Table 101 List of influencing factors and their main descriptors

Factor 1 Globalization

bull Globalization and international trade (amount of international goods in retail)

bull Price pressure

Factor 2 Digitization

bull Analytics and optimization (Big Data transport optimization)

bull Crosslinkingtransparency along the value chain

Factor 3 Policy regulation

bull Regulations bull Internalization of the externalitiesFactor 4 Resource availability

bull Raw material prices bull Availability of renewable energyFactor 5 Climate change and air pollution

bull CO2eq release bull Land use changesFactor 6 Open innovation (new business models)

bull Sharing economy models bull Associations and partnerships (new coalitions among logistics providers)

Factor 7 Social development

bull Urbanization bull Demographic changeFactor 8 Consumption patterns

bull Environmental awareness of consumers bull Population income (per capita)

A Melkonyan et al

221

Option B Both the international trade level and the price pressure are high This situation is typical for an international market with increased competition and low sales prices

Option C Both the international trade level and the price pressure are quite low This option is common for a locally regulated market with high subsidies

Option D The combination of high level of international trade and low price pres-sure characterizes monopolistic economy within a deregulated market

After creating all the portfolios for eight factors and describing them in details the next stage is devoted to scenario development itself Optional future states of each key parameter defined in the last stage were checked pair-wise with the future states of all the other elements This has been done through applying a scale of minus2 to +2 Thereby minus2 means that it is absolutely impossible for the given two states to coexist and +2 indicates absolutely mutual occurrence between two portfolios of randomly chosen factors This analysis causes a development of a 32 times 32 matrix (8 factors with 4 options each) The matrix is included in Appendix (Fig 109) The options with estimation of minus2 have been eliminated to create consistent scenarios eliminating mutually exclusive combinations In order to combine the remaining options into clusters which represent then the final scenarios the multidimensional scaling analysis was carried out utilizing IBM SPSS Statistics software This was done in order to develop the graphical representation (common space) of the options classified after STEEP method

Figure 104 displays the common space chart of the future options The labels follow the format displayed [Xn] on the matrix that indicates the number of the key factors (X) and one of the four future options (n) (eg 14a indicates the key factor

Option A LocalMarket with

increased competition and low sales prices

Option B International Market with


Option C Locally regulated market

with high subsidies

Option DMonopoly with

Deregulated Market

Option A Short (local) value

chains (where transparency is

possible without digitization)

Option BDigitized

economy with high

transparency

Option C Analog economy with

less transparency

Option D Digitization leads to more complex

(and less transparent) value chains)

FACTOR 1 GLOBALIZATION FACTOR 2 DIGITIZATION

International TradeHigh

Hig

h

Low

Pric

e P

ress

ure

Analytics und Optimization

Tran

spar

ency

alo

ng

the

Valu

e Ch

ain

Low

Low

Hig

h

High

Low

Fig 103 Four portfolio options as examples for the factors globalization (left-hand side) and digitization (right-hand side)


222

-1 -05 0 +05 +1

-1-0

50

+05

+1

7a4b1a

8b

1b

6b

1c

5a

6a

8c

2b

3a

7b

SCENARIO 1

SCENARIO 2

SCENARIO 3

SCENARIO 4

Dimension 1

Dim

ensi

on 2

Fig 104 Multidimensional scaling representation

14 with the future options a) As a result four clusters of the future options have been identified These clusters describe the scenarios for the future food supply systems in a rough way Even though the resulting common space obtained from the SPSS software displays the interrelationships between the future options it leaves out the type of dimension in which they are displayed Thus a further analysis to define the dimensions of the scenarios is required

Having the future options organized by type and arranged in a cardinal represen-tation (Fig 105) the dimensions or axis of the graphic were determined based on the similarities and differences from all the options After finding a common pattern among them the dimensions were defined and discussed with the experts during the workshops X-axis describes the innovation rate within the economies whereas Y-axis describes environmental awareness and lifestyles of the consumers

Four main scenarios shown in Fig 105 were intensively discussed during the workshops based on the following questions

bull What are the main characteristics of the scenariobull How does the scenario differ from the othersbull Who are the winners and losers of this scenario

The results are discussed in the following chapter (Chap 11)

A Melkonyan et al

223

New mobility conceptsHigh resource scarcity as a

chance Locally regulated market

Market increased competition and low sales

prices

LOHA

Overpopulation No cooperation among the

companies Environmental ignorance

International Market High level of sharing society

New sharing economy models

Locally regulated market with high subsidies

Digitalized Economy with high transparency

No market failure Overurbanization

Strategic alliances

Scenario 1 New Supply concepts for consumers based on

digital innovations

Scenario 3Business as Usual

Scenario 2Sharing Society

Scenario 4Prospective Urbanization

Traditional Economies

Innovative Economies

Environmentally oriented Lifestyles

Environmentally passive consumers

Fig 105 Four scenarios based on clustering of the factor descriptors

Description of the Scenarios

Scenario 1 New Supply Concepts for Consumers Based on Digital Innovations

Scenario 1 considers decentralized supply concepts as an enabler of entire supply chain It is described by the following four main factors resource scarcity and consumersrsquo right protection where globalized supply chains have insufficient productive resources to fulfill all human and industrial needs thus are forced to find innovative solutions to meet the requirements of the society (Fig 106)

The growth of population and new economies increases the demand for food energy and minerals According to the UN the demand for food will increase from the current level by 30 until 2030 and by a staggering 50 until 2050 So a local solution might be applying aquaponic technology in decentralized food production and evaluating how it could work as a dual potential in producing bioenergy This must be done by making use of the fish production to generate energy and farming as well as to produce high-revenue plants by making use of the artificial water features (Somerville 2014)

The second factor is development of new mobility concepts in order to reduce emissions (greenhouse gases and air pollution) to use the natural resources and time in an efficient way It is an emerging trend and heavily relies on a good


224

High resource scarcity as a chance

Farmed Aquaculture

Bio-Energy FarmingO2Feed mill

As a result development ofinnovative solutions for renewablenatural resources

Aquaponics dry topography

High revenue and resistant plants

New Mobility Concepts

Regulating competitive marketthe policy yet allows innovativenew entrants Policy activelyfavors innovation processpromoting sustainable growth

Competition Assessment Frameworksuggests how competitive policy canbe applied meanwhile providingdecision-making tools for policy makers

Locally regulated competitive market

Healthy Lifestyle

The components of the healthylifestyles are physical socialenvironmental mental andemotional The society follows allthe aspects of healthy lifestyles

ldquoNew Supply concepts for consumers based on digitalinnovationsrdquo scenario is regulated by a competitive economicprocess within a healthy and environmentally aware society

Fig 106 Schematic view and description of Scenario 1 New supply concepts for consumers based on digital innovations

understanding of the social and environmental impact of transportation Such mobility-as-a-service (MaaS) platforms are being developed around the world Good examples are startups such as Tuup in Finland or establishment of a consortium of over 20 public and private partners (including Uber) to develop innovative MaaS solutions This parameter would be sustainable delivery of the products to consumers

The third factor is locally regulated market with increased competition It is char-acterized by competitive policy actions and plans that support innovation process and promote sustainable economic growth One of the examples is EUrsquos common agricultural policy (CAP) which is a competition assessment framework It sup-ports farmers to improve agricultural productivity so that consumers have a stable supply of affordable food Moreover CAP shows policy applications for develop-ment of innovation strategies and serves as a diagnostic tool for policy makers

For adapting this scenario in any community the following six principles must be taken into account

1 Understanding and meeting customers and consumer needs countryrsquos health profile analysis and underlining main problems

2 Getting the product right 3 Creating and sharing values 4 Developing innovative logistics and distribution infrastructure 5 Developing information and communication strategies favoring transparency 6 Enabling effective relationships among supply chain members

A Melkonyan et al

225

This new paradigm of supply transformation emphasizes the importance of good coordination of all the phases within the supply chain to transform raw materials into finished products or services and distribute them to the end consumers More recently manufactured foods have become an important part of many peoplersquos diets and staple foods are now traded internationally as commodities (Smith 2007) thus highlighting the role of consumer lifestyles in developing new logistical concepts

Scenario 2 Sharing Society

Sharing economy solutions enable quick and easy responses to consumer needs by matching supply and demand in an efficient way While keeping the conventional way of running food businesses certain environmental issues such as food waste can be reducedsolved Food waste is currently a big problem in Germany about one-third of all food is wasted Not only the food itself is being wasted but also the resources which are invested in cultivation harvest packaging trade transport and storage Thus representing a food waste initiative foodsharing7 platform was launched in 2012 This initiative helps in ldquosavingrdquo food which would otherwise be thrown away The online platform ldquofoodsharingderdquo enables private individuals to share still edible food which would otherwise be thrown away because either too much food was bought or the households are not at home It is obvious that the pri-vate households are the biggest winners On the other hand foodsharing cooperates with more than 3000 companies which are the also the winners given the fact that they have already saved 78 million kg of food from waste Having more than 200000 registered users in GermanyAustriaSwitzerland and more than 25000 volunteers (so-called food savers) this initiative acts as an international movement

The main characteristics of this scenario are

bull Use of information technology (IT) systems typically available via web-based platforms such as mobile ldquoappsrdquo on Internet-enabled devices to facilitate peer- to- peer transactions

bull Reliance on user-based rating systems for quality control ensuring a level of trust between consumers and service providers who have not met previously

bull Flexibility of the workers who provide services via digital matching platforms in deciding their typical working hours

bull Digital matching firms rely on their own tools and assets to provide a service

However there are also some challenges within this scenario

bull Increasing consumer confidencebull Building a database of customers and suppliers maintaining and expanding itbull Distinguishing P2P (peer-to-peer) businesses

7 httpsfoodsharingdeueber-uns


226

bull Reducing transaction costs

Nevertheless in the era of digitization these challenges should be quickly met (except the first one)

Scenario 3 Business as Usual

The scenario ldquoBusiness as Usualrdquo is characterized by the following factors over-population low environmental consciousness of consumers unhealthy lifestyle of people and no cooperation among companies Some detailed characteristics of the scenario are presented below

bull Inability to grow rapidly leading to high commodity pricesbull Bad physical infrastructure and communal conflictsbull Pollution and shortages of natural resourcesbull Corruption and vulnerability to the ldquonatural resource curserdquo of ample public

funds

In the ldquoBusiness as Usualrdquo scenario the society is focused solely on economic growth Still in 2003 economists believed that countries being focused on economic growth would become the worldrsquos principal ldquoengine of new demand growth and spending power which could offset the impact of graying populations and slower growth in the advanced economiesrdquo (Wilson and Purushothaman 2003) However it is important to highlight that numerous factors and trends block the exponential growth of these economies High level of urbanization will lead to more polluted environment and natural resource scarcity In order to alleviate the issue of resource scarcity entrance (expansion) in international markets has to be enhanced leading to more globalized supply chains Globalization in its turn highly contributes to unhealthy lifestyles of local people due to increasing imports of fast-food products and the spread of an ldquoindustrialized foodrdquo culture Moreover people with unhealthy lifestyles indirectly harm the environment by fostering the production of environmentally non-friendly products

The ldquoBusiness as Usualrdquo scenario can be developed into two main directions either it can continue to be fostered without significant change in economic structure or policies leading to stagnation (1) or resource scarcity will create a chance to switch toward sustainable future and sharing economies that will emerge to balance the market (2) In the first case the winners will be big companies (mergers and alliances) which are currently the major players in the market and dictate conditions Losers will be small- and medium-sized enterprises (SMEs) since they operate separately thus decreasing their power of making decisions This in its turn will lead to unequal competition and market failure resulting in higher prices and environmental ignorance by the big players In the second case there is a chance to switch to sharing economy model as it is the best solution for SMEs to cooperate and increase their power (Scenario 2 will become possible again) Also resource scarcity will lead to implementation of environmentally sustainable practices such

A Melkonyan et al

227

as shared cars like Uber use of solar panels as a renewable source of energy etc In this case the winners will be both small producers and the customers while the los-ers would be the big producers

Scenario 4 Prospective Urbanization

This scenario can be described by

bull Digitalized economy with high transparency along the supply chainsbull Effectively used data analytics and optimizationbull High rate of urbanization with demographic changebull No market failure where internalization of externalities creates new pricing

systemsbull Emergence of strategic alliances (high rate of associations and strategic partner-

ships) but with lack of sharing economy models (eg no shared logistics infrastructures)

bull No strict political regulations

In digitalized economy with tracking and tracing systems where transparency is very high the influence of big companies can be decreased eg by developing new and agile business models competing with conventional businesses The winners are supposed to be knowledge societies focusing on education which are better prepared for technology integration (interoperability) in their socioeconomic environment such as Germany As technological developments lower the costs of storing sharing and analyzing data such business elements will become also apparent in private and political applications This process has already changed consumption patterns (increased online retailing) and the way the governments operate The losers could be companies not being able to incorporate digital business elements quickly enough

Pathways Toward Sustainable Future and Further Recommendation

Scenario evaluation was carried out at the last stage by mapping the four main sce-narios For this estimation of the probability desirability and similarity to todayrsquos situation has been realized (Fig 107)

In order to have a better understanding of todayrsquos food supply chain situation a visualization of context scenarios was made based on workshops with the same stakeholders who co-created the scenarios For this the following questions have been discussed

bull Which of the scenarios are the ldquomost similar to todayrdquobull Which of the scenarios are the ones we would like to see


228

bull Which scenario do we expect to actually happen

With this visualization it is possible to highlight todayrsquos situation of the food supply chain with the corresponding possible divergences as expected scenarios It is based on the majority of the circumstances apparent today which can be described mainly by production-oriented systems Considering no substantial changes the scenario ldquoBusiness as Usualrdquo might continue to be the possible future pathway The cluster labeled as ldquoDesired Futurerdquo represents the goal of achieving sustainability in the food supply chain and at the same time another alternative which would be plausible to happen Hence slight changes in the consumption behavior will lead to a stronger sharing and digital economy at least for B2C and C2C business which might be accompanied by certain regulations on a local level as well as additional knowledge skills In that case Scenario 3 might develop into the same direction as Scenarios 2 and 4 Considering even more substantial changes where Scenarios 2 and 4 could act as intermediate steps Scenario 1 can be seen as final outcome of such a potential pathway for sustainable food supply systems (Fig 107)

Today

Desired FutureConsumption-

oriented systems

Production-oriented systems

Undesired future

Scenario 1 New logistics concepts for consumers

based on digital Innovations


Scenario 2 Sharing Soceity


New regulations

Health

Knowledge informationskills

Access to ICTSustainability Parallel paths

Future

Fig 107 Mapping of the scenarios highlighting the pathways from todayrsquos situation toward pro-spective future of sustainable food supply chains

A Melkonyan et al

229

Conclusion

Despite the fact that a scenario is a hypothetical and coherent description of a poten-tial future reflecting different characteristics and perspectives of the past the use of scenarios represents an advantage for shaping the systems of the future The use of scenarios opens the possibility to be more critical about a system by analyzing its complexity

The food supply chain became more complex in the last decades thus the main aim of this study is scenario development while critically thinking and reevaluating the actions that are being taken today and estimating their impact on the future food systems The process of implementation or creation of such sustainable systems is at the same time very complex due to the financial and political interdependency that exists while setting limitations or slowing down the change process

Concluding this chapter it can be highlighted that due to the high dependency of economic growth and prosperity on political regulations and strategies the implementation of a local and sustainable food supply chain can be very difficult to be taken into action In order to initiate this transformation process first of all awareness for environmental and social responsibility should be raised within the society as well as for companies involved in the sector In this case new innovative food supply concepts will be developed These kinds of innovative business models in the food systems are nowadays gaining popularity HelloFresh Plated or Blue Apron represent good examples of a food delivery service of including the necessary products and recipes to make food consumption an easy process There are some other companies that follow the e-food approach but with a more flexible selection Good examples are Farmigo and Good Eggs that have an online local market where customers can place an order of certain products and pick them up from a close delivery point on a prearranged date

Specifically the application of future scenarios will be a valuable asset to iden-tify challenges according to the present agricultural practices With the analysis of the most probable future scenarios different types of farmers will be supported to start the preparation process according to their present and future needs in their specific contexts andor farming systems In addition scenario co-creation process develops trust credibility and empowerment among all stakeholders This was achieved through elaboration of roadmaps and the presentation of identified poten-tial efficiencies of sustainable food supply chains which provide overall benefits and opportunities to the European agricultural sector

Appendix (Figs 108 and 109)


230

Option ANo market failure

Option B Strict environmental

policy

Option C Deregulated

markets with no environmental

policy

Option D Regulated market not

concerned with environmental

issues

Option A Economic boom with low prices of raw materials and sustainable

energy

Option B High resource scarcity

as a chance to switch towards

sustainable economy

Option C Low resource scarcity

economy and new technologies

are not developing

Option DEconomic Crisis

less available resources due to their high price

Factor 3 Policy Regulations (a) Factor 4 Resource Availability (b)

Strict RegulationsHigh

Hig

h

Low

Inte

rnal

izat

ion

of E

xter

nalit

ies

Raw material prices

Avai

labi

lity

of

Rene

wab

le E

nerg

yLo

w

Low

Hig

h

High

Low

Option AStrategic alliances

Option B High level of sharing

society potentially regulated

Option C Ownership

focused society

Option D Redistribution

market(Platform based

C2C )

Factor 6 Innovation in Agriculture (business models) (d)

Sharing Economy Models

Asso

ciat

ions

and

par

tner

ship

s

Low

Low

Hig

h

High

Option A New mobility

concepts but expansion of

logistics infrastructures

Option B Strong Environmental Degradation

Option C High Environmental

Protection

Option D No new structural changes same urban planning

concepts

Factor 5 Climate Change and Air Pollution (c)

CO2eq-Release

Land

Use

Cha

nges

Low

Low

Hig

h

High

Option A Overpopulation

(Shanghai Mumbai)

Option B Overurbanization

(elderly population refugees)

Option C Rural Societies

(Mongolia Syberia)

Option D Industrialized

Countries (Germany Japan)

Option A Environmental

ignorance despite high

income

Option B LOHA (Life Style of Health and

sustainability)

Option C Ignorance towards

environment because of low

income

Option D High environmental awareness but

less income

Factor 7 Social Trends (e) Factor 8 Consumption Trends (f)

High

Hig

h

Low

Dem

ogra

phic

Cha

nge

Environmental Awareness of Consumers

Inco

me

of P

opul

atio

n

Low

Low

Hig

h

High

Low

Urbanisation

Fig 108 Four portfolio options for the factors policy regulations (a) resource availability (b) climate change and air pollution (c) innovation in agriculture (d) social trends (e) and consumption trends (f)

A Melkonyan et al

231

CIM

1a1b

1c1d

2a2b

2c3a

3b3c

3d4a

4b4c

4d5a

5b5c

5d6a

6b6c

6d7a

7b7c

7d8a

8b8c

8d1a

0-1

-1-2

00

-10

11

12

00

-1-1

-10

-2-1

00

-11

00

10

10

01b

0-1

-2-2

21

10

-1-1

1-1

-1-1

10

-10

0-1

-1-1

00

-12

01

00

1c0

-22

-12

-1-1

-21

-2-1

01

00

00

-1-1

1-2

-1-1

1-2

00

00

1d0

-1-1

2-2

01

-20

00

0-1

0-1

0-2

-22

-21

-10

00

00

02a

0-2

-1-1

20

2-2

-12

0-1

00

1-1

00

-2-1

-12

0-1

00

02b

0-2

-10

-1-1

12

-21

2-1

00

12

-12

10

01

01

-10

2c0

-20

00

-1-1

20

-10

00

-1-1

1-1

00

1-1

-1-1

0-1

3a0

-2-2

-22

1-2

-2-1

-10

-2-1

0-1

0-1

-1-1

0-1

1-2

-13b

0-2

-21

0-1

00

-22

-1-1

0-1

-11

10

1-1

2-1

03c

0-2

-2-2

11

-10

-21

-1-2

-1-1

00

0-1

0-1

1-2

3d0

-1-1

11

-20

-20

0-1

00

00

0-1

0-1

1-1

4a0

-2-2

-2-1

-10

01

10

20

0-1

1-1

1- 2

04b

0-2

-20

-10

-11

0-1

02

20

1-2

2-1

04c

0-2

00

-20

-1-1

0-1

-1-1

0-2

0-2

0-2

4d0

-10

-2-1

0-1

-1-1

00

-10

-1-1

0-1

5a0

-2-2

-2-1

0-1

10

1-1

00

0-1

05b

0-2

-20

-10

-10

1-1

0-1

-22

-25c

0-2

01

-10

-10

00

-11

-20

5d0

-1-1

0-1

00

0-1

0-1

00

6a0

-2-2

-2-1

0-2

1-1

-1-1

-16b

0-2

-20

0-2

1-1

2-1

06c

0-2

-1-1

20

1-1

0-1

6d0

10

01

10

00

7a0

-2-2

-20

-10

-17b

0-2

-20

00

07c

0-1

10

-1-1

7d0

00

- 10

8a0

-2-2

-28b

0- 2

-28c

0-2

8d0

Fig

10

9 C

ross

-im

pact

mat

rix

(CIM

) of

pai

r-w

ise

com

pari

son

of t

he f

utur

e op

tions

for

all

the

rele

vant

fac

tors

Ass

essm

ent

rang

e minus

2 b

oth

deve

lopm

ents

ca

nnot

occ

ur a

t the

sam

e tim

e minus

1 th

ey c

an o

ccur

but

don

rsquot m

ake

sens

e 0

mut

ual c

oexi

sten

ce +

1 th

ey m

ake

sens

e +

2 m

utua

l sup

port

syn

ergy

(N

ote

for

in

stan

ce o

ptio

n 3a

is in

volv

ed in

the

Fig

10

8a a

nd r

epre

sent

s ldquon

o m

arke

t fai

lure

rdquo)


232

References

Awudu I amp Zhang J (2012) Uncertainties and sustainability concepts in biofuel supply chain management A review Renewable and Sustainable Energy Reviews 16 1359ndash1368

Beske P Land A amp Seuring S (2014) Sustainable supply chain management practices and dynamic capabilities in the food industry A critical analysis of the literature International Journal of Production Economics 152 131ndash143 httpsdoiorg101016jijpe201312026

Bleischwitz R Johnson C M amp Dozler M G (2014) Re-assessing resource dependency and criticality Linking future food and water stress with global resource supply vulnerabilities for foresight analysis European Journal of Futures Research 2(1) 1ndash12

Borg I amp Groenen P J F (2005) Modern multidimensional scalingmdashTheory and applications Mannheim Springer

Bosona T G amp Gebresenbet G (2011) Cluster building and logistics network integration of local food supply chain Biosystems Engineering 108(4) 293ndash302

Caputo P Ducoli C amp Clementi M (2014) Strategies and tools for eco-efficient local food supply scenarios Sustainability 6(2) 631ndash651

Dani S amp Deep A (2010) Fragile food supply chains Reacting to risks International Journal of Logistics Research and Applications A Leading Journal of Supply Chain Management 13 395ndash410

Ericksen P (2008) Conceptualizing food systems for global environmental change research Global Environmental Change 18 234ndash245

European Commission (2011) European Commssion Energy Roadmap 2050European Union (2015) European union Sustainable transport Retrieved May 2017 from

httpseceuropaeutransportthemessustainable_enFiksel J Eason T amp Frederickson H (2012) A Framework for Sustainability Indicators at EPA

Washington DC USEPAInvesting in Rural People (IFAD) (2016) Retrieved June 2016 from httpswwwifadorgKalkbrenner B J amp Roosen J (2016) Citizensrsquo willingness to participate in local renewable

energy projects The role of community and trust in Germany Energy Research amp Social Science 13 60ndash70

King R P Hand M S amp Goacutemez M I (2015) Growing localmdashCase studies on local food sup-ply chains Lincoln NE University of Nebraska-Lincoln

Leese M amp Meisch S (2015) Securitising sustainability Questioning the lsquowater energy and food-security nexusrsquo Water Alternatives 8(1) 695ndash709

Lorenz U amp Veenhoff S (2013) Integrated scenarios of sustainable food production and con-sumption in Germany Dessau Federal Environment Agency

Muller M (2015) The lsquonexusrsquo as one step on the road to a more coherent water resource manage-ment paradigm Water Alternatives 8(1) 675ndash694

Ogilvy J amp Schwartz P (2004) Plotting your scenarios Emeryville CA Global Business Network

Paloviita A amp Jaumlrvelauml M (2016) Climate change adaptation and food supply chain manage-ment New York NY Routledge

Prothero A Dobscha S Freund J Kilbourne W E Luchs M G Ozanne L K et al (2011) Sustainable consumption Opportunities for consumer research and public policy Journal of Public Policy amp Marketing 30(1) 31ndash38

Prugh T Costanza R amp Daly H E (2000) The local politics of global sustainability Washington DC Island Press

Sarrica M Brondi S Cottone P amp Mazzara B M (2016) One no one one hundred thousand energy transitions in Europe The quest for a cultural approach Energy Research amp Social Science 13 1ndash14

Seuring S amp Gold S (2012) Conducting content-analysis based literature reviews in supply chain management Supply Chain Management 17(5) 544ndash555

A Melkonyan et al

233

Smith A (2007) Translating sustainabilities between green niches and socio-technical regimes Technology Analysis amp Strategic Management 19(4) 427ndash450

Somerville M (2014) Developing relational understandings of water through collaboration with indigenous knowledges Wiley Researcher Academy 1(4) 410ndash411

Speed P Bleischwitz R Boersma T Johnson C Kemp G amp VanDeveer S D (2012) The global resource nexus The struggles for land energy food water and minerals Washington DC Transatlantic Academy

Steger M F Kashdan T B Sullivan B A amp Lorentz D (2008) Understanding the search for meaning in life personality cognitive style and the dynamic between seeking and experienc-ing meaning Journal of Personality 76(2) 199ndash228

Stern N H (2007) The economics of climate change The Stern review Cambridge Cambridge University Press

Stockholm Environment Institute (SEI) (2011 November) Understanding the nexus In Background paper for the Bonn 2011 Nexus Conference

Thorpe J amp Fennell S (2012) Climate change risks and supply chain responsibility How should companies respond when extreme weather affects small-scale producers in their supply chain OXFAM Discussion Papers 2012

UNDESA (2015) Water and food security Retrieved from httpwwwunorgwaterforlifedecadefood_securityshtml

Van der Heijden (2002) Prerequisites to guarantee life-long employability Personnel Review 31(1) 44ndash61 httpsdoiorg10110800483480210412418

Van Notten P (2006) Scenario development A typology of approaches ICIS NLVermeulen S Bruce M Campbell B M amp Ingram J (2012) Climate change and food sys-

tems Annual Review of Environment and Resources 37 195ndash222Weimer-Jehle W Buchgeister J Hauser W Kosow H Naegler T Poganietz W-R et al

(2016) Context scenarios and their usage for the construction of socio-technical energy sce-narios Energy 111 956ndash970

Wilson D amp Purushothaman R (2003) Dreaming with BRICs The path to 2050 Global Economics Paper 99



Chapter 11Applications of Digital Technologies in Sustainable Logistics and Supply Chain Management

Fuyin Wei Cyril Alias and Bernd Noche

Abstract Digitalization revolutionizes business with the growing influx of techno-logical innovation possibly fueling the transition toward a more sustainable way of value creation Apart from hardware-oriented mega-trends like robotics it is mainly the software-based digital technologies that create fundamental change in processes operations functions and even entire business models Apart from the sheer intro-duction of the individual technologies to different application areas of the transpor-tation and logistics sector a clear picture of the prerequisites and expectable impacts of a holistic digital transformation is still not available though In this chapter the authors address the research gap with a profound insight into theory and practice of digitalization in the transportation and logistics sector Moreover they develop a methodology for a structured evaluation of the digital transformation The evalua-tion approach considers economic ecological and social dimensions at different levels of planning focusing on the respective requirements and the influences to be gained With such a structured evaluation approach researchers and decision- makers from practice are given a tool at hand to consider the extensive effects of digital transformation

Keywords Digitization middot Transformation pathways middot Production-consumption systems middot Sustainable logistics middot Strategic tactical and operational planning

Introduction

A recent study by the German Logistics Association (BVL) identified 15 trends in the field of logistics and supply chain management (SCM) Along with the top trends of individualization cost pressure and complexity digitization of business processes is an essential trend nowadays 73 of the participating companies see this trend as highly relevant Digital transformation opens up far-reaching

F Wei () middot C Alias middot B NocheDepartment of Transport Systems and Logistics University of Duisburg-Essen Duisburg Germanye-mail fuyinweiuni-duede

236

advantages for companies in logistics and SCM such as increased transparency improved delivery capability and reliability as well as higher flexibility The impor-tance of sustainability in logistics is also increasing significantly compared to the studies from 2012 (Kersten et al 2017)

However little is known about the impact of digitization on sustainability What significant impacts does digitization have on logistics and SCM Will digitization have any positive effect on the ecological impact of logistics How will digitization change working life in logistics and what might be suitable applications for digital technologies in logistics and SCM To answer these questions effects of digitiza-tion on the three pillars of sustainabilitymdashsocial ecological and economicmdashare analyzed in details Moreover also the sustainability challenges that companies face in implementing hardware and software technologies are discussed especially as these can lead to a rejection of new technologies Progress in digitization also makes it possible to support each planning level of a company with modern technologies Influences and requirements for the strategic tactical and operational planning level are considered separately For example digitization may well encounter greater resilience at the operational level than at the strategical level

Therefore this work aims to indicate the importance of digitization in the areas of logistics and SCM as well as to catalog its influence on three dimensions of sus-tainability at each planning level The theoretical framework and possible chances and gaps will be determined in the work It is followed by the description of tech-nologies and methodologies of digitalization and their implementation in logistics and supply chain For the detailed sustainability analysis strategical tactical and operational planning levels are considered separately using the triple bottom line of sustainability (environmental economic and social dimensions) For each planning level the influences and requirements of digitization based on the triple bottom line will be indicated Moreover the degree of software and hardware representation at the individual planning levels will be described The conclusion critically examines the impact of digitization but also outlines its opportunities Accordingly the importance of digitalization in logistics and SCM is illustrated by this overall picture

Background Study

Logistics and Supply Chain Management

The term logistics generally refers to activities that are demand-oriented The requirements of objects persons and material goods but also services information and energy are established In the sense of the six ldquoRrdquo logistics ldquoright objectsrdquo must be provided at the ldquoright timerdquo in the ldquoright qualityrdquo for the ldquoright costrdquo in the ldquoright quantityrdquo and at the ldquoright placerdquo (Wannenwetsch 2014)

F Wei et al

237

Logistics activities are carried out along the entire value-added process In pro-curement logistics for example they begin at goodsrsquo receipt and move on to pro-duction logistics which regulates internal transport Finally all finished goods are sent to the customer by distribution logistics Because of the increasing role of logistics in the companies different areas of logistics are constantly being opti-mized as great potential has been recognized here For example companies have set the goals of reducing costs becoming more flexible in production or working faster in the supply of information and services Logistics extends along the entire value chain as well as supply chain management

Many authors vary on the exact definition of the term supply chain management Supply chain management for Towill for example is a linked system for processing material and information flow (Towill 1996) Fisher on the other hand sees supply chain as a sales channel that connects the production sites with the customer (Fisher 1997) However it can also mean the handling of combined material and informa-tion flows or the linking of value-added processes Supply chain management there-fore covers the entire network of partners along the value chain from delivery and production to disposal or recycling Material information and cash flows are taken into consideration under the premise of improving social relations between the par-ticipants and keeping transaction costs as low as possible In particular transaction costs could be significantly reduced due to the progressive development in the field of information technology (IT) (Wannenwetsch 2014 p 9 Werner 2017 p 5) This development also leads to increasing digitization levels in SCM which will be described in the following chapter

Digitalization

In order to understand the application opportunities of digitization in logistics firstly the terms of digitization digitalization and digital transformation need to be differentiated before elaborating on the applicability of various individual digital technologies in transportation and logistics sector Digitization is about creating a digital image of analogous physical things like paper documents and microfilm images or photos and extracting data from digitized files in order to automate pro-cesses This doesnrsquot imply replacement of the original document being decayed or disappeared over time Digitalization deals with enabling and transforming business operations functions and models by exploiting digital technologies and digitized data In addition ongoing adaptation of digital technologies and working in a digital workplace using digital tools are parts of digitalization Thus digitalization goes far beyond digitization of information favoring new forms of processes or even devel-opment of entirely new business models (Heistermann et al 2017) In this way it can be considered as a prerequisite and first step toward digital transformation and newly created digital revenue streams Digital transformation means more than the sheer move to digital business it is a fundamental and accelerating transformation of business activities to make full use of the promising digital technologies and their

11 Applications of Digital Technologies in Sustainable Logistics and Supply Chainhellip

238

impact across the industry and society in a strategic manner It is to be noted though that these terms are partly used interchangeably and synonymously Therefore we will mainly refer to actual digitization but allow the option of expanding our under-standing of this phenomenon to digitalization as well

Digitization enables all participants and objects in the logistics chain to be con-nected yet it is still in progress In 2016 around 27 of commercial companies in Germany were among the highly digitized companies Particularly small- and middle- sized companies (SME) can benefit from digitization as digital skills are considered as an important competitive factor The Federal Government of Germany sees digitization as an opportunity for a greater economic prosperity and for the future viability of the state (BMWi 2017)

A recent study by Bitkom (2017) with around 508 companies (50 of them having more than 50 employees) showed that 84 of companies have already used digital solutions for logistics while 6 more are planning to use them (see Fig 111) Another study of BVL illustrated in Fig 112 provides an overview of technology concepts that contribute to digital transformation in logistics and SCM It does not only indicate the relevance of the technologies mentioned but also the state of the implementation The radius of the circle indicates the number of companies which plan to implement the relevant technology over the next 5 years The Bitkom study clearly shows that some digital systems are already implemented in most compa-nies However several technologies with high significance such as localization technology or predictive analysis are still not widely used Other technologies such as Blockchain are still quite irrelevant to companies In general there is a synergy between the results of Bitkomrsquos study and BVL study In both studies the warehouse

15

10

18

15

25

26

13

10

6

6

3

Planned

72

69

46

48

35

19

16

2

6

5

2

Electronic invoice

Warehouse ManagementSystems

Electronic Data Interchange(EDI)

Tracking

Cloud Computing

Big Data Analytics

Pick by Light

Pick by Voice

Prognostic maintenance

Learning software

Block chain

In Use

Fig 111 Relevance and status of the investigated technology concepts (Kersten et al 2017)

F Wei et al

239

management system (WMS) has an elevated level of implementation as well as the automated guided vehicles (AGVs) Drones have a rather subordinate role for com-panies according to BVL and Bitkom

State of the Art

With respect to individual technologies within digitization a series of technological solutions appear to play a central role within the ongoing digitization trend in the transportation and logistics sector Among others miscellaneous sensors video cameras cyber-physical systems augmented reality virtual reality as well as the Internet of things and the Internet of services must be mentioned In the following several examples of these technologies being applied on transportation and logistics processes are presented

Sensors have invaded the logistics industry for years A famous example is the evolvement of radio frequency identification (RFID) in logistics from the late 1990s onward (Fleisch and Mattern 2005 Kern 2007) RFID transponders have been applied across a huge range of logistics processes but have turned to be particularly

Predicve analysis

Robots

Localizaontechnologies

Automated guidedvehicle systems

RFID for objecttracking

Rele

vanc

e of

the

tech

nolo

gy co

ncep

ts

Predicvemaintenance

Cross-company machine-to-machine

communicaonAugmented Reality or

Pick by Vision

Self-drivingland cras

Drones

Block chain

Use of wearables

Analysis of datafrom Social Media

plaorms

Pick by Voice

Pick by Light

Soware as a Service (SaaS)

Infrastructure as a Service (IaaS)

Plaorm as a Service (PaaS)

Customer loyaltyprograms

Sensor systemfor monitoring

Webbasedcommunicaon

plaorms

2D codes

Warehouse Management

Systems (WMS)

Enterprise ResourcePlanning Systems (ERP)

Mobile data accessfor employees

Mobile data accessfor customers

Future growth

Very low Very high

Very

hig

hVe

ry lo

w

Status of implementaon

Assistance systems

Data analysis

Autonomous systems

IT services

Informaon exchange

Data collecon

Fig 112 Utilization of digital applications in logistics (Bitkom 2017)


240

useful and economically viable in closed loop systems or in environments with special needs (Precht 2012 Spengler et al 2017 2019)

In recent years a large-scale adoption of a multitude of sensors and actuators to measure one or several aspects was expected to prevail in many companies With the growing number and heterogeneity of sensors and actuators on the market a lot of different aspects of a process can be measured and monitored One example is the use of a sensor fusion concept for activity monitoring of forklifts and warehouse vehicles (Alias et al 2016c Oumlzguumlr et al 2016) In that concept the temperature speed vehicle vibration and fork occupancy can be monitored In other research initiatives pallets can be traced and monitored throughout the warehouse (Borstell et al 2014) Such sensors can be leveraged even for the recognition of human activ-ity in manual picking processes (Moya Rueda et al 2018)

An innovative reliable cost-efficient and cost-effective alternative to collect real-time data about the process information are video cameras and industrial image processing Cameras allow both retrospective analyses of situations and continuous monitoring of processes either manually or semiautomatically As to video cameras and industrial image processing in transportation and logistics several research groups around the globe deal with such endeavors Balaji and Karthikeyan (2017) have presented a survey on moving object tracking from the field of industrial image processing to be applied in traffic monitoring and vehicle detection Borstell et al (2013) described a vehicle detection system in which the forklifts and industrial trucks carry passive planar image markers being detected by a video camera mounted on the ceiling In a similar approach Alias et al (2014b) have elaborated on the various functions supported by industrial image processing and presented several use cases in which these functions have been applied Detecting counting and identifying objects measuring times and speed examining qualities and condi-tions locating tracking and tracing and navigating objects and vehicles alerting in case of any deviation from a predetermined target value as well as controlling entire project sequences belong to these functions In a subsequent paper Alias et al (2016b) have presented the applicability of industrial image processing in industrial environments both in the transportation and logistics sector and in production and assembly environments with various examples Similar approaches have been pre-sented in the work of Lewin et al (2017) Borstell (2018) has categorized logistics applications of industrial image processing These set-up categories encompass traceability and trackability volumetric properties of goods inspection and quality control of goods equipment condition monitoring occupancy of storage and traffic areas security and protection of infrastructure process modeling and simulation manual picking and packing manually guided handling systems automated han-dling systems and visual documentation and monitoring Other research teams have equipped forklifts with a camera so that the movement is recorded and ana-lyzed from the vehicle itself (Hohenstein et al 2012 2014 Jung et al 2014) Timm et al (2011) and Weichert et al (2010) have presented comparable approaches for applications in material handling and intra-logistics environment in which the trans-port boxes moving on the conveyor belt have been equipped with matrix codes for swift detection and identification purposes

F Wei et al

241

Augmented and virtual reality is further examples of digital technologies enter-ing the transportation and logistics sector Applicabilities of augmented reality include manual picking processes dispatch handling returns processing and pack-aging logistics as well as layout planning and optimization and transportation opti-mization (Azuma 1997 Fruumlnd et al 2004 Reif 2009 Timm et al 2011 Doumlrner et al 2013 Glockner et al 2014) Regarding virtual reality the picture is similar applications are on the rise but they are limited to particular areas such as layout planning and optimization organizational presentations for public relations pur-poses and staff training (Warnecke and Bullinger 1993 Gutieacuterrez et al 2008 Brill 2009 Abel et al 2011 Doumlrner et al 2013)

Cyber-physical systems (CPS) are an emerging type of system which are not the conjunction of the physical and the cyber but the intersection of physical processes and information processing ie integrating computational aspects with physical procedures (Lee and Seshia 2012) They are connected systems observing and influ-encing real-world objects and processes and capable of adapting to respective envi-ronments and conditions Moreover a CPS can be extended with no predetermined elements and nodes such as new sensors or video cameras so that the organization as a network in which computational and physical units cooperate remains untouched by the entry or exit of individual nodes (Leitatildeo et al 2016) The visibly increased spread of CPS in industry in general and in transportation and logistics in particular proves an observation true automated identification systems for synchronizing flows with RFID and barcodes has already begun decades ago (Kohnhauser et al 2017) Today CPS in production and logistics processes (sometimes referred to as cyber-physical logistics systems (CPLS)) seems to be highly prevalent As the exploitation of automated identification systems for synchronizing flows is already known and increasingly common in logistics the thought of combining the cyber and the physical is not new either (Hribernik et al 2010 Prasse et al 2014 Seitz and Nyhuis 2015 Kohnhauser et al 2017 Ollesch et al 2018)

Apart from the pure digitization approach in which physical objects are mea-sured and monitored by various sensors and devices digitalization encompasses a new kind of software-based information collection and processing as well The Internet of things and the Internet of services are examples of this which conquer the transportation and logistics sector slowly With the Internet of services informa-tion from the Internet can be retrieved analyzed and processed in various surround-ings This fuels the smooth business collaboration between business entities So do the rapid discovery and exploitation of a series of offered services in the moment of need (Manuel Vaz et al 2012) The Internet of things pursues the goal of uniquely identifiable intelligent objects with embedded computers and little processors thus being strongly linked to the abovementioned technologies and concepts like CPS and RFID (Atzori et al 2010 Tan and Wang 2010) Various research works with reference to transportation and logistics processes have been published by now (Hagaseth et al 2014 Alias et al 2014a c d Boumls et al 2016 Brunner et al 2016)

Complex event processing is a relatively new technology based on conventional IT areas like event-based simulation rule-based systems business intelligence or simple databases It evolved to a pivotal information technology around a decade


242

ago (Luckham 2008 2012 Etzion and Niblett 2011) and appears to develop nowa-days toward ubiquity in an increasingly event-driven environment

A series of technologies including both statistical methods and data mining approaches refer to the real-time data analytics In a further evolution step big data analytics belongs to the same technology category like descriptive predictive and prescriptive analytics (Provost and Fawcett 2013 Erl et al 2016) In the field of logistics it is currently one of the most dynamic and growing research areas with many research teams working on different facets of the industryrsquos problems and challenges (Alias et al 2016a)

The ongoing wave of blockchain activities also belongs to the digitalization pro-cess as it offers obvious benefits to logistics and supply chain applications Blockchain applications allow a safe and secure communication among authorized parties as well as fast and reliable interaction within a larger network Thus it is suitable for sensitive business areas and processes in which documentation plays a vital role and may not be forged (Tian 2016 Hackius and Petersen 2017)

The preceding section has only presented a brief excerpt of the technologies that have entered the transportation and logistics sector recently However apart from knowing about the multitude of technological options the structured and efficient implementation of these plays a crucial role when aiming at economic benefits

A glance at the literature reveals the lack of a coherent methodological approach to utilize digital technologies in an efficient and economically viable manner Patri et al (2014) and Ollesch et al (2017) have introduced methodological approaches of stepwise implementing digital technologies in business processes Originating from the so-called process-oriented event model (PoEM) Ollesch et al (2017) have proposed the so-called extended process-oriented event model (ePoEM) (advance-ment of the original PoEM model) in order to include business processes and cover multiple systems (Patri et al 2014 Ollesch et al 2017)

In order to record the relevant requirements of such event-based systems the fol-lowing nine steps have turned out to be effective when it comes to general project management testing and maintenance tasks

1 Identify and order business processes and activities in system scope 2 Note physical objects affected by activities 3 Identify and annotate relevant physical observables 4 Attach measurable items to observations 5 Connect measurements to activities 6 Identify sensors to capture relevant measurements 7 Deduct data objects to store measurements 8 Identify and write deductive rules for events 9 Identify and write reactive rules for events

Ollesch et al (2018) and Alias et al (2019) then used an extended methodology footing on the two abovementioned ones to test it in both laboratory and real-world environments before then reaching out to practitioners and applying it on real-world processes as part of authentic development projects (Alias et al 2019 Ollesch et al 2018) In essence it is ldquoa multi-phased approach which is mainly based on three

F Wei et al

243

particular phases designed to safeguard the character feasibility and meaningful-ness of planned smart logistics processesrdquo (Alias et al 2019) After creating the general idea the first phase consists of checking and safeguarding the framework conditions for smart logistics and deriving goals The second phase focuses on including cyber-physical systems as data sources and complex event processing as data processing technique on the basis of the PoEM and ePoEM techniques respec-tively (Patri et al 2014 Ollesch et al 2017) The third phase refers to the control step to verify accomplishment and efficiency of the predefined goals By operating with certain lead questions the relevant areas and the information of interest can be retrieved more efficiently and the entire requirements engineering process is then shortened considerably

Real-World Applications

Digitalization is a paradigm which has to be structured in order to understand the difference of its application Having this in mind Futschik (2018) has elaborated a general concept in respect to electronic batch recording solutions in the pharmaceu-tical industry (see Fig 113)

Figure 113 shows several generic solution types starting with a paper batch recording which represents a traditional way of operating the documentation pro-cess based on a manual collection and review of data A second generic solution type is addressing a low level of digitalization where data is collected and reviewed on PC terminals It reflects the manual operation on a computer using spreadsheets and forms as a simple copy of the traditional paper base Surely some improve-ments can be implemented here such as range checks of data fields or automatic integration of date stamps and identification of operators Thus some relevant data are recorded automatically reducing the processing time and errors A further

1 Solution typePaper Batch Records

2 Solution type Paper-on-glass Batch Records

3 Solution type Automated Batch Records

4 Solution type Automated Batch Documentation

AS-IS TO-BE TO-BE TO-BE

Fig 113 Solution types of integration levels of digitalization (Futschik 2018)


244

improvement is mapped into a third solution type where process and machine data are collected automatically and eventually equipped with an automated data man-agement system The fourth solution type is a fully automated batch recording sys-tem where machines process and equipment data are collected completely in an automatic way and where interfaces to other IT systems are provided The final result is a fully automated documentation without any manual interaction

This classification scheme which describes the degree of automated data captur-ing can be adjusted and applied in a general way to all digitalization tasks or proj-ects While applying digitization to concrete fields its economic impact has to be assessed Futschik (2018) presents a well-elaborated assessment scheme which con-siders objectives for improvements such as quality of data information exchange time efficiency flexibility costs and resource use It is considering additional investments such as capital yield and change management efforts This assessment scheme allows determination of an appropriate level of digitalization which can be seen as an accurate design of IT use

Sensors can be widely used to collect all types of data in logistics and supply chain management considering also relevant information from sustainability per-spective In the case of activity monitoring of forklifts and industrial trucks in an indoor warehouse environment the researchers were able to equip the vehicles with informative sensors in a retrofitting way (Alias et al 2016c) Thereby temperature speed vehicle vibration and fork occupancy could be monitored On the basis of the newly collected information insight into actual processes and their current shortcomings could be gained and pinpointed improvement programs applied Such improvement may relate to economic goals but also pursue ecological and social excellence

The following figures represent such information from a different project in which certain information has been collected over a certain period of time and then used for ex-post analysis in the wake of an optimization and continuous improve-ment program

Figure 114 shows the increase of temperature in a working environment It can be seen that during wintertime the temperature in the factory is lower than later when outside temperature rises This is surprising as the indoor temperature is reg-ulated and should be kept constant

The humidity in wintertime on the workplaces in a factory is very low and increases as the outdoor temperature rises as shown in Fig 115 This is due to the fact that cold air holds less humidity in comparison to the warm air It is supposed that low humidity rates especially below 30 (dashed line) cause more absent days of employees

The impact of the sun during the same period in the factory brings more light to the workplaces as the sun rays can enter through the roof during the day (Fig 116) Negative values are caused by a transmission interruption of the sensor tag to the computers These three examples illustrate how precise working environmental parameters can be recorded Based on this very basic information several action fields can be detected The corresponding actions can improve the health situation of the employees and save energy for heating the factory It can also help to explain

F Wei et al

245

Fig

11

4 Te

mpe

ratu

re in

a w

orki

ng e

nvir

onm

ent (

begi

nnin

g fr

om F

ebru

ary

to m

id-A

pril)


246

Fig

11

5 R

ecor

ded

hum

idity

in a

wor

kpla

ce (

begi

nnin

g Fe

brua

ry to

mid

-Apr

il)

F Wei et al

247

Fig

11

6 L

umin

ous

flux

in a

fac

tory

bui

ldin

g (b

egin

ning

Feb

ruar

y to

mid

-Apr

il)


248

and understand complaints of employees on windy conditions when doors are kept open

All in all sensor systems can be used in a very versatile way recording various datasets eg environmental conditions process information infrastructural data and equipment data

As it has been explained earlier cameras have also found their way in the logis-tics sector for data capturing and analysis purposes Figure 117 depicts a forklifted equipped with a matrix code A camera system identifies the vehicle and records its trajectory tracing at the same time the object on the fork This information serves for an automatic operation of the warehouse management system

The detection of space utilization during operation in a warehouse can be real-ized in a very cost-effective manner Alias et al (2014b) presented various cases of static and deterministic storage space management In the latter case a camera sys-tem detects the occupation of spaces by means of matrix fiducial markers on the floor and sends signals when the storage spaces are occupied (Fig 118) In static storage space management the matrix fiducial markers are on top of the consign-ment pallets so that the precise location of each pallet can be detected by the camera

The raw sensor data has to be transformed into useful information by different means eg using thresholds determining different levels of KPIs In such a way KPIs are types of advanced sensor information where eventually several sensor information sources are combined

As shown in Fig 119 the information can be used in digital control towers which can be combined and act in a federated manner (Alias et al 2014a) The goals for operating the federated networks range from optimization of lead times and costs up to the monitoring of sustainable supply chains by providing achievement levels and KPIs

Fig 117 Detection of forklift movements location and status identified by a camera-based sen-sor system (Oumlzguumlr et al 2016)

F Wei et al

249

Fig 118 Surveillance of logistics handling areas (Alias et al 2014c)

Future Internet Digital

Control Tower

Company A


Control Tower

Company B

Future Internet Control Tower

4PL-service provider

LogisticServices Register

Real Flow of Goods

Sensor network 1 Sensor network 2

Enterprise Service Bus for Logistics

Future Internet Technologies

Software Platform for Federated Digital Control Towers


Control Tower

Company A


Control Tower

Company B

Future InterControl Tow

4PL-service pr

sticicesster

Software Platform for Fe

Fig 119 Federated electronic stations based on sensor network information (Alias et al 2014b)


250

In the so-called CargoSwApp a process is set up which uses sensor data to moni-tor the flow of goods (Boumls et al 2016) The web application is able to trigger new transportation chains whenever a disturbance occurs Its goal can be defined accord-ing to the customer needs ranging from avoidance of penalties due to delays to sustainability goals such as energy consumption or keeping CO2 footprint within a predefined bandwidth

Three Evaluations Aspects Influences and Requirements of Digitization at Three Planning Levels

The aim of the work is to emphasize the influences and requirements of digitization in logistics and SCM at every planning level Both positive and negative influences will be considered The requirements on the other hand focus primarily on hard-ware and software Which hardware or software should be provided by the company in order to improve digitization in SCM and logistics And what is their influence on sustainably dimensions (social economic and ecological aspects)

Sustainability Dimensions Social Economic and Ecological

The influence and requirements analysis of digitization in logistics and SCM deals not only with the planning levels but also with social economic and ecological aspects These were addressed in ldquotriple bottom line (TBL)rdquo concept of sustainabil-ity by Elkington (1997) According to this concept social economic and ecological issues are equally weighted at macroeconomic political global and entrepreneurial levels However this approach is largely criticized as ecology should be given more weight if considering strong sustainability model (Ekins et al 2003)

With the advanced technological implementations individual processes have been changed which impact on social economic and ecological aspects The social aspect is generally referred to the work safety work security and work organiza-tion The improvement of a workplace can relieve the physical stress on people The aim is to make sure that employees do not experience either an over- or underload from the new digital system but they should be rather integrated into the system Also by simplifying the processes people who were previously underqualified for the work can now be recruited and trained further (Guumlnthner et al 2014 p 309) If costs are reduced by the improvement of process it will be considered as an eco-nomic advantage The aim is to achieve the greatest benefit with the least use of resources With the improvement of processes through digitization the ecological issues (eg air soil and water pollution greenhouse gas emissions) are also becom-ing more and more important Over the past few years entrepreneurs have been paying increasing attention to making their entire value chain more environmentally friendly in order to meet the new requirements of society (Umweltbundesamt 2017)

F Wei et al

251

Three Planning Levels Strategical Tactical and Operational

Besides sustainability assessment described above the impact and requirements analysis will also be considered at different planning levels During the value-added process different goals and decisions have to be formulated in the different planning processes Therefore the planning levels are considered separately in strategic tacti-cal and operational terms (Nebl 2004) The Executive Board in top management ensures the survival of the company and seeks a long-term monetary success It determines the strategy type which provides the next planning level ldquotacticallyrdquo with certain guidelines for further implementation Hence the plans of the strategic level contain more general information (Bloech et al 2008) However as the level of hier-archy decreases the plans become more concrete For example the operational level contains the most detailed information in its target settings The operative is the low-est at the hierarchy levels and has a relatively short time and planning horizon (Reese 2013) This is where the day-to-day business takes place having an actual influence on the companyrsquos targets (Ten Hompel 2015 p 102) For example if the plan of developing new technologies or markets at the strategic level is pursued more detailed formulations will be created at the tactical level These might include deter-mination of new machines in order to achieve the planned sales volume in the new markets or for new technologies At the last hierarchical level the actual implementa-tion of the preparatory measures should consider the economic aspects (Reese 2013)

Influences and Requirements of Digitization Along the Three Planning Levels

Within the scope of this work influences of digitalization are analyzed regarding sustainability dimensions (social economic and ecological) at three planning lev-els (strategical tactical and operational) The influence and requirements analysis which combines those two perspectives is exemplarily illustrated in the following matrix (see Table 111)

Table 111 Influences and requirements of digitization at three planning levels considering sustainability dimensions

Sustainability dimensions Social Economic Ecological

Planning levelsStrategic Influence Organizational

attractivenessAdaptiveness Zero emission

frameworkRequirement Life-long learning culture IT integration Legal compliance

Tactical Influence Decision support Supply chain risk management

Resource reduction

Requirement Knowledge management Risk mapping Smart gridsOperational Influence Stress reduction Cost reduction Waste reduction

Requirement Ergonomic design Transparency Scheduling


252

In order to accomplish planning tasks companies always have various software solutions at their disposal Especially for the strategic planning of the supply chain and supply chain design special solutions are available on the market (Ten Hompel 2015) In addition to these solutions there are other digitization projects which are differentiated according to technological and competence projects

Influences of Digitization at Strategic Level

In the strategic planning level digitization only precedes itself in the form of soft-ware or cloud-based solutions with the direct influence on humans A software for strategic network optimization can help logistics planners and support their work The software evaluations help the planner to better align the supply chain according to factors such as costs time quality and environmental friendliness For example it is possible to quickly and easily determine energy emissions CO2 balance or transport costs for the planning of a new location or supplier (Ten Hompel 2014 p 112) heralding indirectly economic and ecological benefits When choosing locations however it also depends on ldquosoftrdquo factors such as the business climate or educational level of the location Therefore software cannot completely replace management decisions (Gleiszligner and Femerling 2012)

Digitization also has an advantageous effect on the risk management of logistics chains In the study ldquoThe Ripple Effectrdquo by Deloitte Consulting LLP supply chain risks turned out to be significant for strategic corporate decisions The most cost- intensive effects are probably caused by ldquothe inability to respond to sudden changes in demandrdquo (Ten Hompel 2014 p 40) Today simulation models can illustrate and analyze the dynamic behavior of supply chains thus enormously reducing the costs of a sudden fluctuation in demand However this requires further technological progress to create and calculate such simulation models (Ten Hompel 2014 p 41) The ldquoResilience360rdquo risk management platform developed by DHL can inform companies about global dangers and incidents along their own supply chain almost in real time This enables companies to access alternative resources at the right time avoiding incidents (DHL 2015)

Simulations are also used in strategic planning of new logistics centers or logisti-cal processes within a factory With the help of simulation-supported material flow planning the logistical performance of material flow systems can be improved In addition inventories can be reduced and production or storage space can be opti-mized (IPH 2017) Thus digitization at this level also enables sustainable use of resources Currently available material flow simulation models are also capable to integrate energy aspects into the planning and to make reliable energy forecasts for the future factory (Wenzel and Peter 2017)

F Wei et al

253

Requirements of Digitization at Strategic Level

Some requirements need to be fulfilled in order to progress the digitization process in the strategic planning level Many software solutions in the field of supply chain design represent the so-called island solutions There is rarely standard software that can be used in any company This makes a joint database necessary which must be provided by the company (Ten Hompel 2015 p 92) It is often based on an ERP system In large companies such a system is a standard tool for supporting business processes but for small and medium-sized enterprises it is not accepted No cor-relation has been found so far between company size and the use of ERP solutions Instead the geographical radius of action which is enhanced by globalization plays a role The percentage of global companies with ERP systems is 81 whereas only 21 of regional companies use the system (Leyh 2015)

The biggest challenges for companies are primarily the lack of IT competence of employees the data security and the resulting high costs during and after the imple-mentation of systems (Fig 1110 Saam et al 2016)

As shown in Fig 1110 62 of the companies in the survey consider data secu-rity and data protection as major obstacles to the development of digitization in SMEs Everyone wants to protect their know-how from industrial espionage in order to maintain their knowledge edge but developers are usually responsible for getting information out there This loss of know-how affects the companyrsquos planned profit Therefore they are facing a huge challenge to secure their data

Larger companies already use Electronic Data Interchange (EDI) while SMEs continue to exchange information via telephone and fax missing out considerable benefits With the cloud-based supply chain solution the data are compared with the critical indicators so it will be reported if value falls below However a network- wide early warning system can only be generated with the full knowledge of all data

21

21

21

31

10

14

12

8

46

41

38

27

44

38

35

24

0 10 20 30 40 50 60

Lack of IT skills of employees

Data security respectively data protection

High investment cost respectively operating costs

Speed of internet connection

Missing information about possible applications benefit

Uncertainty about future digital standards

Uncertainty about the future technological development

Lack of suitable funding options

Shares in percentStrong Slight

Fig 1110 Statistics from companies interviewed on the barriers to the uptake of digitiza-tion (Saam et al 2016)


254

from the cloud Therefore risks in the event of deviations can be identified before they occur (Ten Hompel 2015 p 96) The significant advantage of supply chains is quick and flexible response to any market conditions and customer requirements in order to remain consistently competitive and maximize the profits

Influences of Digitization at Tactical Level

Sustainability dimensions should be taken into consideration at every planning task in the logistics and supply chain even though ecological dimension is a big issue in the logistics sector Logistics has a negative impact on the environment through its land requirements waste generation noise pollutant emissions and high energy consumption (Furmans et al 2008 p 9) Many of these effects can already be reduced by using digitization at the strategic level But also at the tactical level digi-tization has a positive influence on the ecological dimension Logistics networks nowadays have developed into highly complex systems that can hardly be managed only with human sense IT-supported systems help people working in logistics to make decisions that influence all aspects of sustainability (Hausladen 2016)

The tactical level may include tasks such as tour and route planning supply chain planning returns management layout planning dimensioning of production capacities or the design of the material flow system

1 So that route planning or tour optimization software can reduce the number of driven kilometers

2 A reduction in mileage has a further effect on CO2 emissions which can be achieved by bundling freight and optimizing routes

Not only the software for tour and route planning supports the ecological aspect but the freight portals can be used to make optimum utilization of loading space therefore reducing the number of empty trips They are similar to digital auction portals such as ldquoeBay Kleinanzeigenrdquo in which the carriersrsquo over- and under- capacities can be traded Digitization even goes so far that planning software can optimize the so-called modal split which combines different modes of transport while reducing the carbon footprint (Hausladen 2016)

Requirements of Digitization at Tactical Level

Although IT helps to operate ldquogreen logisticsrdquo the question remains whether IT is sustainable itself Even though the advantages of digitization such as better utiliza-tion of loading capacities are obvious there are also some disadvantages Freight portals for example are not liable for damages that occur during the transport From time to time criminals may gain access to such portals which can cause high financial damage One possible way to avoid this disadvantage would be the use of digital freight forwarders which take over the entire planning of the transport Digital freight forwarders also offer functions such as tracking and tracing

F Wei et al

255

providing real-time tracing of the transport of goods or digital management and processing of digital documentation With this fax and letter traffic can be elimi-nated saving more resources In addition a high level of transparency is created which ultimately improves the operating business

Thanks to digitalization logistics has reached a high importance With the devel-opment of e-commerce the Internet offers us the opportunity to order a large num-ber of products conveniently ldquoonlinerdquo Especially for companies this means a faster information flow and a reduction of paper as well as physical transports such as the delivery of letters (Hausladen 2016) However an equally important advantage is lost in particular from the consumerrsquos point of view The products cannot be viewed in real life or even tried out Especially in the textile sector there is a high return rate which not only results in an additional cost but also has a negative impact on the environment (Ten Hompel 2014 p 158) Thus returns management is indis-pensable for the retail trade The advantage which is created by digitization can then just easily be diminished by it One solution is that online orders can be sent to a nearby store where the customer can try them on If the customer is not satisfied it remains in the store This avoids the return shipment of a single piece (Ten Hompel 2015 p 28) The use of big data also helps to reduce returns Based on large amounts of data collected analyses can be carried out to understand why the items are being returned This is followed by the identification of methods to reduce the number of returns

Influences of Digitization at Operational Level

The most significant influence of digitization lies at the operational level due to the steadily changing processes and workplaces as well as the integration of machines and robots Here the advantages and disadvantages of digitization are experienced most directly

When considering the pure logistic process in a company automated guided vehicle (AGV) systems are applied for intra-logistic transport The advantages of the AGV are its wide range of applications for both light and heavy transports In environments without passenger traffic driverless transport systems can even reach higher speeds The further development of the conventional industrial truck is electrically driven as it is also used in poorly ventilated halls Large compa-nies such as Amazon already use such systems for more efficient order process-ing The economic aspect is strongly influenced as productivity increases and fewer errors occur In addition the vehicle replaces an employee which surely has a negative effect on people but the AGV does not require a break (Schenk and Horn 2016)

Another way in which digitization can occur at the operational level is the scheduling which becomes more and more important especially in SMEs It is also possible to implement scheduling without the use of software but the software offers greater transparency for all departments in production The order planning on the corresponding machines is carried out using a graphical planning board


256

This displays information about the start of order processing and also the progress of production like manual or automatic scanning of an order Therefore delivery deadlines can be maintained as orders are no longer wasted during production process

Further influences on the economic aspect are reflected in the reduction of throughput times as the paperless processes give the employees a faster overview of the next order eliminate the processing time and provide more transparency Also the strategic and tactical levels will benefit from this For example the tactical level receives more detailed information on the actual material consumption for a certain period of time and can adjust its orders accordingly avoiding high storage costs (Schroumlder and Tomanek 2015) Additionally the graphical planning board makes it possible to record the utilization of all machines simultaneously and to counteract fluctuations The better presentation of information also improves employee productivity In general the ERPPPS offers the opportunities to guide companies more in the direction of digitization and to bring more transparency into the companies

Requirements of Digitization at Operational Level

Employees at the operational level are in particular under the changes in digitiza-tion Not only the workplaces but also the working methods are changing because of new technologies and the dynamics of the process itself In order to guarantee higher productivity all employees are facing great challenge of getting adapted to these changes This is the task of the management which is not only responsible for the corresponding training courses and workshops at operating level but also for preparing their employees to the shift toward digital technologies in advance Many employees at this level see digitization not as an opportunity but as a risk for the workplace since they are afraid of being incapable to fulfill their new role and tasks (Kaczmarek et al 2015) In addition to the often required IT competence the will-ingness to lifelong learning is also expected as well as an increased interdisciplin-ary way of thinking and acting The staff must have a higher level of system knowledge and must be able to interact permanently with machines and systems instead of pure operational activities such as picking Here problem solving and the process of optimization are the focus (Bauer 2015)

The economic aspect is also influenced at this level Making a company more productive requires first and foremost some investment in both software and hard-ware products For example electronic data recording must ensure sufficient trans-parency for the corresponding information which is stored (via barcodes or RFID chips) Hardware products such as the barcode scanner or other terminals read the information and transfer it to the software Every company must therefore first examine its own processes and decide how many hardware products or licenses it requires for the use of software products

F Wei et al

257


Digitalization offers many positive influences in the logistics sector in some plan-ning levels more in the others may less The spectrum of usable technologies is large but not every technology or software can be applied in companies Small- and medium-sized enterprises in particular are still cautious about digitization The main reasons for this are the usually high investment costs but also the follow-up costs for data maintenance the data security and the development of the IT compe-tence of the employees This is especially important against the background of demographic changes

The decisive factor for a digital transformation is often the economic benefit rarely considering the social and ecological aspects Companies expect digitization to increase efficiency delivery reliability supply chain transparency predictability and flexibility (Kersten et al 2017)

Digitization also has a positive impact on people and the environment If used properly the implementation of assistance systems in logistics can reduce the pos-sibility of errors and increase ergonomics At strategic and tactical levels software supports logistics planners in making decisions and reducing risks along the supply chain Customers also benefit from digitization The digital progress in logistics makes the ldquothe same-day-deliveryrdquo and the traceability of goods possible

Besides the social aspects digitization also has a positive influence on the eco-logical aspects At the tactical planning level software helps to optimally plan routes in order to reduce empty runs and CO2 emissions At the operational level simulation software can be used for material flow planning for more efficient and low CO2 emissions in intra-logistics

Digitization in logistics also has its downsides Particularly at the operational level it may threaten jobs in some areas such as land transport or order picking In the future the focus will be no longer put on simple activities but on solving prob-lems and optimizing entire logistics systems However this requires a large number of skilled workers Another point which is often ignored in digitization projects is the negative ecological influences of using the hardware due to its environmentally harmful components or materials and high energy consumption

Future research is to center around deeper and dedicated knowledge of the pre-requisites and impacts of digitization on the individual planning levels with respect to the different evaluation aspects In addition a coherent research on realizing effi-cient digitization and digital transformation of business processes and models as well as exploiting pertinent benefits still remains to be carried out

References

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258

Alias C Jawale M Goudz A amp Noche B (2014a) Applying novel future-internet-based sup-ply chain control towers to the transport and logistics domain In Proceedings of the ASME 12th Biennial Conference on Engineering Systems Design and Analysis 2014 Volume 3 Engineering Systems Heat Transfer and Thermal Engineering Materials and Tribology Mechatronics Robotics (V003T10A012) (9 pages) New York NY ASME httpsdoiorg101115ESDA2014-20422

Alias C Kalkan Y Koc E amp Noche B (2014b) Enabling improved process control oppor-tunities by means of logistics control towers and vision-based monitoring In Proceedings of the ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference 2014 Volume 1B 34th Computers and Information in Engineering Conference (V01BT02A001) (11 pages) New York NY ASME httpsdoiorg101115DETC2014-34249

Alias C Oumlzguumlr Ccedil Jawale M amp Noche B (2014c) Analyzing the potential of future-internet- based logistics control tower solutions in warehouses In 2014 IEEE International Conference on Service Operations and Logistics and Informatics (SOLI) (pp 452ndash457) Piscataway NJ IEEE httpsdoiorg101109SOLI20146960767

Alias C Oumlzguumlr Ccedil Jawale M amp Noche B (2014d) Evaluating the potential of future-internet- based transportation control tower solutions using the example of a logistics service provider In Proceedings of the 2014 Biennial CSME International Congress (CT182) (6 pages)

Alias C Rawet V L Neto H X R amp Reymatildeo J E N (2016a) Investigating into the preva-lence of complex event processing and predictive analytics in the transportation and logistics sector Initial Findings from Scientific Literature In Proceedings of the 10th Mediterranean Conference on Information Systems 2016 (MCIS 2016) (17 pages) AIS Electronic Library (AISeL)

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Alias C Oumlzguumlr Ccedil Yang Q amp Noche B (2016c) A system of multi-sensor fusion for activ-ity monitoring of industrial trucks in logistics warehouses In Proceedings of the ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference 2015 Volume 1B 35th Computers and Information in Engineering Conference (V01BT02A047) (10 pages) New York NY ASME httpsdoiorg101115DETC2015-46169

Alias C Zahlmann M Olalla F E A Iwersen H amp Noche B (2019) Designing smart logistics processes using cyber-physical systems and complex event processing In H Proff amp J Jovic (Eds) Mobility in times of change Past present future (to appear) Wiesbaden Springer Fachmedien Wiesbaden

Atzori L Iera A amp Morabito G (2010) The internet of things A survey Computer Networks 54(15) 2787ndash2805 httpsdoiorg101016jcomnet201005010

Azuma R T (1997) A survey of augmented reality Presence Teleoperators and Virtual Environments 6(4) 355ndash385 httpsdoiorg101162pres199764355

Balaji S R amp Karthikeyan S (2017) A survey on moving object tracking using image pro-cessing In 2017 11th International Conference on Intelligent Systems and Control (ISCO) (pp 469ndash474) IEEE httpsdoiorg101109ISCO20177856037

Bauer W (2015) Arbeitswelt im Kontext von Digitalisierung und Demografie Retrieved from httpswwwbghwdearbeitsschuetzerpraevention-von-a-zf-lfachvortraege-auf-bghw-veranstaltungenfachtagung-sicherheit-und-gesundheit-in-der-warenlogistik-2015vortraegearbeitswelt-im-kontext-von-digitalisierung-und-demografie

Bitkom (2017) Digitalisierung wird die Logistik grundlegend veraumlndern Retrieved from httpswwwbitkomorgPressePresseinformationDigitalisierung-wird-die-Logistik-grundlegend-veraendernhtml

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Bloech J Bogaschewsky R Buscher U Daub A Goumltze U amp Roland F (2008) Einfuumlhrung in die Produktion (6 uumlberarb Aufl) Springer-Lehrbuch Berlin Springer Retrieved from httpdepositd-nbdecgi-bindokservid=2997061ampprov=Mampdok_var=1ampdok_ext=htm

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Borstell H (2018) A short survey of image processing in logistics httpsdoiorg1013140RG222466439688

Borstell H Pathan S Cao L Richter K amp Nykolaychuk M (2013) Vehicle positioning sys-tem based on passive planar image markers In International Conference on Indoor Positioning and Indoor Navigation (pp 1ndash9) IEEE httpsdoiorg101109IPIN20136817875

Borstell H Kluth J Jaeschke M Plate C Gebert B amp Richter K (2014) Pallet monitor-ing system based on a heterogeneous sensor network for transparent warehouse processes In 2014 Sensor Data Fusion Trends Solutions Applications (SDF) (pp 1ndash6) IEEE httpsdoiorg101109SDF20146954718

Boumls M Crucq P amp Tauhid B (2016) CargoSwAppmdashShort-term replacement of can-celled cargo transports In U Clausen amp H Friedrich C Thaller amp C Geiger (Eds) Commercial transport Proceedings of the 2nd Interdisciplinary Conference on Production Logistics and Traffic Lecture notes in logistics (pp 231ndash239) Cham Springer httpsdoiorg101007978-3-319-21266-1_15

Brill M (2009) Virtuelle Realitaumlt Erstes Lehrbuch zur Virtuellen Realitaumlt Berlin Springer Retrieved from httpswwwspringercomdebook9783540851172

Brunner M Schoumlnharting V Wolter S amp Schoumlnharting J (2016) Buumlndelung von Lieferdiensten In H Proff amp T M Fojcik (Eds) Nationale und internationale Trends in der Mobilitaumlt (pp 347ndash359) Wiesbaden Springer Fachmedien Wiesbaden httpsdoiorg101007978-3-658-14563-7_22

DHL (2015) DHL Resilience 360 Retrieved from httpwwwdhlcomcontentdamdownloadsg0logisticsresilience360dhl_resilience_360_flyer_enpdf

Doumlrner R Broll W Grimm P amp Jung B (2013) Virtual und Augmented Reality (VRAR) Berlin Springer Retrieved from httpswwwspringercomdebook9783642289026

Ekins P Simon S Deutsch L Folke C amp De Groot R (2003) A framework for practi-cal application of the concepts of critical natural capital and strong sustainability Ecological Economics 44(2ndash3) 165ndash185

Elkington J (1997) Cannibals with forks The triple bottom line of twenty-first century business Oxford Capstone

Erl T Khattak W amp Buhler P (2016) Big data fundamentals Concepts drivers amp techniques The Prentice Hall Service Technology Series from Thomas Erl (1st ed) Boston MA Prentice Hall ServiceTech Press

Etzion O amp Niblett P (2011) Event processing in action Greenwich CT Manning Retrieved from httpproquesttechsafaribooksonlinede9781935182214

Fisher M L (1997) What is the right supply chain for your product Harvard Business Review 97205 105ndash116

Fleisch E amp Mattern F (Eds) (2005) Das Internet der Dinge Ubiquitous Computing und RFID in der Praxis Visionen Technologien Anwendungen Handlungsanleitungen mit 21 Tabellen Berlin Springer Retrieved from httplibmyilibrarycomdetailaspid=62329

Fruumlnd J Gausemeier J Grafe M amp Matysczok C (2004) Augmented reality as a new user interface for the layout planning of manufacturing systems In S K Ong amp A Y C Nee (Eds) Virtual and augmented reality applications in manufacturing (pp 169ndash182) London Springer httpsdoiorg101007978-1-4471-3873-0_10

Furmans K Arnold D Isermann H Kuhn A amp Tempelmeier H (2008) Handbuch Logistik Berlin Springer-Verlag

Futschik M (2018) Electronic batch recording solutions Introduction of an evaluation model for the pharmaceutical industry Wiesbaden Springer Fachmedien Wiesbaden Retrieved from httpsdoiorg101007978-3-658-19819-0


260

Gleiszligner H amp Femerling C (2012) Logistik Grundlagen ndash Uumlbungen ndash Fallbeispiele (2nd ed) Lehrbuch Wiesbaden Springer-Gabler

Glockner H Jannek K Mahn J amp Theis B (2014) Augmented reality in logistics Changing the way we see logistics A DHL perspective Troisdorf Retrieved from DHL Customer Solutions amp Innovation website httpwwwdhlcomcontentdamdownloadsg0about_uslogistics_insightscsi_augmented_reality_report_290414pdf

Guumlnthner W Klenk E amp Tenerowicz-Wirth P (2014) Adaptive Logistiksysteme als Wegbereiter der Industrie 40 In T Bauernhansl M ten Hompel amp B Vogel-Heuser (Eds) Industrie 40 in Produktion Automatisierung und Logistik Anwendung middot Technologien middot Migration (pp 297ndash323) Wiesbaden Germany Springer Fachmedien Wiesbaden httpsdoiorg101007978-3-658-04682-8_15 (Original work published Springer Vieweg)

Gutieacuterrez M A A Thalmann D amp Vexo F (2008) Stepping into virtual reality London Springer Retrieved from httpswwwspringercomdebook9781848001169

Hackius N amp Petersen M (2017) Blockchain in logistics and supply chain Trick or treat In W Kersten T Blecker amp C M Ringle (Eds) Proceedings of the Hamburg International Conference of Logistics (HICL) 2017 Volume Digitalization in supply chain management and logistics Hamburg httpsdoiorg10154808821444

Hagaseth M Tjora Aring amp Fjoslashrtoft K E (2014) Future internet perspectives on an operational transport planning ICT tool Journal of Traffic and Logistics Engineering 2(1) 59ndash65 httpsdoiorg1012720jtle2159-65

Hausladen I (2016) IT-gestuumltzte Logistik (3rd ed) Wiesbaden Springer FachmedienHeistermann F ten Hompel M amp Mallee T (2017) BVL Positionspapier Digitalisierung in

der Logistik Bremen GermanyHohenstein F Jung M amp Guumlnthner W A (2012) Das Staplerauge zur Integration von

Sensorfunktionen Hebezeuge Foumlrdermittel 52(5) 256ndash258Hohenstein F Jung M amp Guumlnthner W A (2014) ldquoDas Stapleraugerdquo ndash Vision und Wirklichkeit

Hebezeuge Foumlrdermittel 54(4) 188ndash191 Retrieved from httpswwwhebezeuge-foerdermit-teldesitesdefaultfilesFachartikelHF0414_Das_Staplerauge_0pdf

Hribernik K Warden T Thoben K-D amp Herzog O (2010) An internet of things for trans-port logistics An approach to connecting the information and material flows in autonomous cooperating logistics processes In H-H Hvolby C H Gundelund P Nielsen I E Nielsen I Dukovska-Popovska amp K Steger-Jensen (Eds) Proceedings of the 12th International Conference on Modern Information Technology amp Innovation Processes of the Enterprises (pp 54ndash67) Aalborg Aalborg University Retrieved from httpswwwresearchgatenetpublication257416509_An_Internet_of_Things_for_Transport_Logistics_-_An_Approach_to_Connecting_the_Information_and_Material_Flows_in_Autonomous_Cooperating_Logistics_Processes

IPH (2017) Institut fuumlr integrierte Produktion Hannover Materialflussplanung als Bestandteil der Fabrikplanung Retrieved from httpswwwiph-hannoverdedeinformationfabrikplanungmaterialflussplanung

Jung M Hohenstein F amp Guumlnthner W (2014) ldquoStapleraugerdquo A framework for camera-based sensor functions on forklift trucks In U Clausen M ten Hompel amp J F Meier (Eds) Efficiency and Innovation in Logistics Lecture notes in logistics (pp 77ndash88) Cham Springer International Publishing httpsdoiorg101007978-3-319-01378-7_6

Kaczmarek S Straub N amp Hegmanns T (2015) Fuumlr die Arbeitswelt 40 Logistik Heute 37(06)Kern C (2007) Anwendung von RFID-Systemen (2nd ed) VDI-Buch Berlin SpringerKersten W Seiter M See B V Hackius N amp Maurer T (2017) Chancen der digitalen

Transformation Trends und Strategien in Logistik und Supply Chain Management Hamburg DVV Media Group GmbH

Kohnhauser V Schobesberger M amp Siller M amp Peterwagner C (2017) Wege zu Smart Logistics Integration von Informations- und Kommunikationstechnologien in KMU (Salzburger Managementstudien No 3) Salzburg Retrieved from Fachhochschule Salzburg Austria website httpwwwfh-salzburgacatfileadminfhforschungbwidocumentsPublikationenSalzburger_Managementstudien_Nr_3pdf

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Lee E A amp Seshia S A (2012) Introduction to embedded systems A cyber physical systems approach (1st ed) Lulu Retrieved from LeeSeshiaorg

Leitatildeo P Colombo A W amp Karnouskos S (2016) Industrial automation based on cyber- physical systems technologies Prototype implementations and challenges Computers in Industry 81 11ndash25 httpsdoiorg101016jcompind201508004

Lewin M Weber H amp Fay A (2017) Optimization of production-oriented logistics pro-cesses through camera-based identification and localization for cyber-physical systems In H Loumldding R Riedel K-D Thoben G V Cieminski amp D Kiritsis (Eds) IFIP advances in information and communication technology Vol 513 Advances in production management systems The path to intelligent collaborative and sustainable manufacturing IFIP WG 57 International Conference APMS 2017 Hamburg Germany September 3-7 2017 proceed-ings (Vol 513 pp 168ndash176) Cham Springer httpsdoiorg101007978-3-319-66923-6_20

Leyh C (2015) ERP-Einfuumlhrung ndash Ein Uumlberblick Dresden eBusiness Lotse Dresden Retrieved from httpswwwmittelstand-digitaldeMDRedaktionDEPDFerp-einfuehrungproperty=pdfbereich=mdsprache=derwb=truepdf

Luckham D (2008) The power of events An introduction to complex event processing in distrib-uted enterprise systems In N Bassiliades G Governatori amp A Paschke (Eds) Rule represen-tation interchange and reasoning on the web Lecture notes in computer science (Vol 5321 p 3) Berlin Springer httpsdoiorg101007978-3-540-88808-6_2

Luckham D (2012) Event processing for business Hoboken NJ WileyNebl T (2004) Produktionswirtschaft (5th ed) Lehr- und Handbuumlcher der

Betriebswirtschaftslehre Muumlnchen R Oldenbourg VerlagOllesch J Hesenius M Gruhn V amp Alias C (2017) The requirements engineering perspective

on events in cyber-physical systems In Proceedings of the 11th ACM International Conference on Distributed Event-Based Systems (DEBSrsquo17) (pp 349ndash350) New York NY ACM httpsdoiorg10114530937423095097

Ollesch J Hesenius M Gruhn V amp Alias C (2018) Real-time event processing for smart logistics networks In H Proff amp T M Fojcik (Eds) Mobilitaumlt und digitale Transformation Technische und wirtschaftliche Aspekte (pp 517ndash532) Wiesbaden Springer Fachmedien Wiesbaden httpsdoiorg101007978-3-658-20779-3_32

Oumlzguumlr Ccedil Alias C amp Noche B (2016) Comparing sensor-based and camera-based approaches to recognizing the occupancy status of the load handling device of forklift trucks Logistics Journal 9 pages httpsdoiorg102195lj_Proc_oezguer_en_201605_01

Patri O P Sorathia V S amp Panangadan A V amp Prasanna V K (2014) The process- oriented event model (PoEM) In U Bellur amp R Kothari (Eds) Proceedings of the 8th ACM International Conference on Distributed and Event-Based Systems (pp 154ndash165) New York NY ACM Press httpsdoiorg10114526112862611291

Prasse C Nettstraeter A amp ten Hompel M (2014) How IoT will change the design and opera-tion of logistics systems In 2014 International Conference on the Internet of Things (IOT) (pp 55ndash60) IEEE httpsdoiorg101109IOT20147030115

Precht P (2012) Nutzenprognose der RFID-Technologie Ein Beitrag zur vorausschauenden Strukturierung Beschreibung und Bewertung der Nutzenpotenziale von RFID-Anwendungen in der Logistik Dissertation Universitaumlt Erlangen-Nuumlrnberg Germany Schriftenreihe Logistik und Informationstechnologien Vol 1 Stuttgart Germany Fraunhofer

Provost F amp Fawcett T (2013) Data science for business What you need to know about data mining and data-analytic thinking (1st ed) Sebastopol CA OrsquoReilly Media Retrieved from httpsearchebscohostcomloginaspxdirect=trueampscope=siteampdb=nlebkampdb=nlabkampAN=619895

Reese J (2013) Operations Management Optimale Gestaltung von Wertschoumlpfungsprozessen in Unternehmen Munich Vahlen Retrieved from httpfoxleuphanadeportaldepublicationsoperations-management(91f4ee9b-c821-482c-9acc-c1b315459f7a)html

Reif R (2009) Entwicklung und Evaluierung eines Augmented Reality unterstuumltzten Kommissioniersystems Dissertation Garching (near Munich) Technische Universitaumlt Muumlnchen


262

Rueda F M Grzeszick R Fink G Feldhorst S amp ten Hompel M (2018) Convolutional neural networks for human activity recognition using body-worn sensors Informatics 5(2) 26 httpsdoiorg103390informatics5020026

Saam M Viete S amp Schiel S (2016) Digitalisierung im Mittelstand Status Quo aktuelle Entwicklungen und Herausforderungen Forschungsprojekt im Auftrag der KfW Bankengruppe Mannheim ZEW Zentrum fuumlr Europaumlische Wirtschaftsforschung GmbH Retrieved from httpftpzewdepubzew-docsgutachtenDigitalisierung-im-Mittelstandpdf

Schenk A amp Horn R (2016) Schritt fuumlr Schritt in Richtung Digitalisierung Retrieved from httpswwwmaschinenmarktvogeldeschritt-fuer-schritt-in-richtung-digitalisierung-a-519717

Schroumlder J amp Tomanek D P (2015) Wertschoumlpfungsorientiertes Benchmarking Logistische Prozesse in Gesundheitswesen und Industrie Xpertpress Berlin Springer Vieweg

Seitz K-F amp Nyhuis P (2015) Cyber-physical production systems combined with logistic mod-elsmdashA learning factory concept for an improved production planning and control A learning factory concept for an improved production planning and control Procedia CIRP 32 92ndash97 httpsdoiorg101016jprocir201502220

Spengler A J Malkwitz A Ehlers J amp Thesing A (2017) Supply Chain Tracking im BIM Modell In H Proff amp T M Fojcik (Eds) Innovative Produkte und Dienstleistungen in der Mobilitaumlt (pp 571ndash582) Wiesbaden Springer Fachmedien Wiesbaden httpsdoiorg101007978-3-658-18613-5_36

Spengler A J Alias C Garduntildeo Correa Magallanes E amp Malkwitz A (2019) Benefits of real-time monitoring and process mining in a digitized construction supply chain In H Proff amp J Jovic (Eds) Mobility in times of change Past present future (to appear) Wiesbaden Springer Fachmedien Wiesbaden

Tan L amp Wang N (2010) Future internet The internet of things In D Wen (Ed) 3rd International Conference on Advanced Computer Theory and Engineering (ICACTE) 2010 20ndash22 Aug 2010 Chengdu China proceedings (V5-376-V5-380) Piscataway NJ IEEE httpsdoiorg101109ICACTE20105579543

Ten Hompel M (2014) Software in der Logistik 2014 Big Data gezielt nutzen (1st ed) Logistik- Praxis Munich Huss

Ten Hompel M (Ed) (2015) Logistik Praxis Software in der Logistik 2015 Fit fuumlr Multichannel (1st ed) Muumlnchen Huss

Tian F (2016) An agri-food supply chain traceability system for China based on RFID amp block-chain technology In 2016 13th International Conference on Service Systems and Service Management (ICSSSM) (pp 1ndash6) IEEE httpsdoiorg101109ICSSSM20167538424

Timm C Weichert F Fiedler D Prasse C Muller H ten Hompel M et al (2011) Decentralized control of a material flow system enabled by an embedded computer vision sys-tem In 2011 IEEE International Conference on Communications Workshops (ICC) (pp 1ndash5) IEEE httpsdoiorg101109iccw20115963564

Towill D R (1996) Time compression and supply chain managementmdasha guided tour Supply Chain Management An International Journal 15ndash27

Umweltbundesamt (2017) Umweltwirtschaft und gruumlne Zukunftsmaumlrkte Retrieved from httpswwwumweltbundesamtdedatenumwelt-wirtschaftumweltwirtschaft-gruene-zukunftsmaerktetextpart-1

Vaz A M Martins B M Brandao R C amp Alberti A M (2012) Internet of information and services A conceptual architecture for integrating services and contents on the future internet IEEE Latin America Transactions 10(6) 2292ndash2300 httpsdoiorg101109TLA20126418135

Wannenwetsch H (Ed) (2014) Integrierte Materialwirtschaft Logistik und Beschaffung (5th ed) Berlin Springer

Warnecke H J amp Bullinger H-J (1993) Virtual Reality Anwendungen und Trends IPA-IAO - Forschung und Praxis (Vol 35) Berlin Springer Retrieved from httpswwwspringercomdebook9783540565161

F Wei et al

263

Weichert F Fiedler D Hegenberg J Muumlller H Prasse C Roidl M et al (2010) Marker- based tracking in support of RFID controlled material flow systems Logistics Research 2(1) 13ndash21 httpsdoiorg101007s12159-010-0025-6

Wenzel S amp Peter T (Eds) (2017) ASIM-Mitteilung Nr AM 164 Simulation in Produktion und Logistik 2017 Kassel 20-22 September 2017 Kassel Kassel University Press

Werner H (2017) Supply Chain Management Grundlagen Strategien Instrumente und Controlling (6th ed) Wiesbaden Springer Fachmedien Wiesbaden



Chapter 12Sustainable Logistics and Transportation Systems Integrating Optimization and Simulation Analysis to Enhance Strategic Supply Chain Decision-Making

Tim Gruchmann Jan Eiten Gustavo De La Torre and Ani Melkonyan

Abstract The design of logistics and transportation systems has long-term effects on the sustainability performance of the supply chain and its operational costs Competing objectives coupled with deep uncertainty involved in the decision- making problem make it inherently challenging While optimizing facility locations under certain conditions has been extensively studied in the literature however deterministic insights for strategic decision-making are not necessarily determining the best choice Strategic decision-making is also concerned with exploring the plethora of possible future options arising from plausible choices and exogenous factors Therefore this study aims to integrate optimization methods commonly used in operations research with simulation techniques to enhance strategic supply chain decision-making Optimization approaches are accordingly used as the evalu-ation of simulated scenarios While various objectives are explored and embedded in an optimization model the ultimate purpose of this study is ldquoexploringrdquo the land-scape of plausible outcomes and their relationships with decisions The proposed method is applied to a concrete setting in particular an adapted case study of a small-scale local food cooperation in Austria to evaluate the number of distribution centers in this decentralized food production and distribution network

Keywords Logistics network design middot Strategic decision making middot Optimization methods middot Simulation techniques and scenarios middot Exploratory modelling and analysis

T Gruchmann () WittenHerdecke University Centre for Sustainable Corporate Leadership Witten Germanye-mail timgruchmannfomde

J Eiten middot G De La Torre middot A Melkonyan Centre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germany

266

Introduction

The use of specialized techniques for a sustainable optimization of logistics struc-tures enables decision-makers to conduct evaluations for different logistics strate-gies There are currently a multitude of approaches that focus on different sub-areas of this problem such as vehicle routing facility planning network design and lay-out planning For instance there are vehicle routing approaches that enable the planning of the duration and distance number of stops to be made as well as the related transport loads considering specific parameters Here planning approaches use a variety of static and dynamic models as well as mathematical approximation methods and heuristics to solve this task So far the main goal of most models is to minimize the distance traveled This can be achieved either directly through intel-ligent routing (route planning) or indirectly through denser transport capacity utili-zation (loading space optimization) For this study routing problems are explicitly incorporated into the model because of its importance for the sustainability perfor-mance and fuel consumption

The route planning optimization problem often refers to the traveling salesman problem (TSP) and is frequently found in the academic transport logistics literature In the simplest case the TSP covers one warehouse (sourcesink) and several cus-tomers (sourcesink) The goal is to design the shortest path which covers all deliv-ery points starting and ending in the same warehouse (Kruskal 1956) However route planning programs also have other target functions such as minimizing time and transport costs From the viewpoint of green logistics a further objective should be considered namely the inclusion of energy consumption and environmental pol-lution from transports as these objectives are directly linked to the minimization of the route and thus also the travel costs

In addition the facility location planning and network design are concerned with long-term decision-making on the physical logistics infrastructure This involves the number and size of warehouses and distribution centers (DCs) as well as related transportation links In this line decisions on network configurations can be seen among the most critical activities confronting a firm as they influence costs time and profits in the long run (Jayaraman 1998)

However it should be noted that the approaches described above only carry out static calculations These incorporate normal case processes and mainly include average values Therefore additional evaluations of certain solutions should be car-ried out by varying the individual material energy and cost flows according to vari-ous factors In order to consider the dynamic effects occurring in practice accordingly decision-making techniques have to be supplemented by simulation techniques

Hence the present study aims to combine optimization and simulation tech-niques to support the decision-making for sustainable logistics and transportation network of small-scale farmers The present study analyzes a local food distribution network as field of application These networks of small farmers typically include sustainable aspects in their core business particularly in terms of resource usage environmental friendliness and social standard assurance (Wenzig and Gruchmann

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267

2018) However an insufficient integration and consolidation of decentralized pro-duction entities limit growth such that these business models for sustainability often remain in a niche Therefore an analysis of necessary infrastructure and more inno-vative distribution channels is promising to support strategic decisions with regard to investments in logistics and transportation infrastructure

Case Background

The field of application is inspired by a concrete case study of the food cooperation NETswerk which runs an e-food online platform to distribute locally produced organic food from small farmers in the Linz region in Austria (see Sect ldquoMethodological Backgroundrdquo) So far NETswerk supplies approx 300 house-holds in the Linz region and intends to acquire new customer segments in order to achieve economies of scale From a sustainability perspective however there are limits to the scalability since the number of local producers and retailers in a certain region is limited In addition the distance to a NETswerk branch office should not exceed a certain threshold such that customers are able to pick up their products in an ecological manner eg by bike or walk (see details in Chap 7) Accordingly the following research question arise Which logistics and transportation infrastructure is necessary to acquire new customer segments and at the same time assure short distances in the last mile

Methodological Background

Logistics Network Design

A logistics network consists of facilities (plants warehouses distribution centers customers) as well as materials and finished products that flow between the facili-ties Assuming that plants and consumers are fixed locations strategic decisions often concentrate on warehouses in terms of the optimal number location and size of warehouses in order to minimize system-wide costs (including inventory carry-ing costs facility costs and transportation costs) Increasing the number of ware-housesDCs generally yields an improvement in service level due to the reduction in average travel time to the customers However it also increases the inventory costs due to increased safety stocks required to protect against uncertainties in the cus-tomer demand On the contrary the outbound transportation costs can be reduced as the warehousesDCs are closer to the customer Considering such a complex prob-lem with underlying uncertainty Exploratory Modeling and Analysis (EMA) seems a promising methodical approach to tackle such a logistics network design problem

12 Sustainable Logistics and Transportation Systems Integrating Optimizationhellip

268

Exploratory Modeling and Analysis

EMA dates back to Bankes in 1993 (cf RAND Corporation) It aims to utilize the advantages of computer-aided simulations and experiments when it comes to an environment where a significant amount of uncertainty about various factors (so- called deep uncertainty) is present Hence EMA supports decision-makers to cope with such uncertainties by giving appropriate reasoning by conducting an explor-atory procedure (Bankes 1993) This also includes decisions related to scenario planning (Bankes 1993 Malekpour et al 2013) In addition to EMA there is a vast pool of methods developed for the purpose of providing decision-making support Nevertheless the benefits of these methods (if not robust against uncertain influ-ences) can be heavily doubted as it is difficult to capture all the factors and opportu-nities that may exist in reality Even with multiple models non-fixed assumptions and the most comprehensive exploration it is impossible to capture all existing fac-tors (Kwakkel and Pruyt 2013 Walker et al 2013a)

Within EMA the exploration procedure is conducted via computer-aided experi-ments One single run of the computer-aided experiment (calculation run) is per-formed with a model which has a given structure and parameterization If there are data for model refinement available one or several different models can be designed that represent a plausible starting point to create scenarios by computer-aided exper-iments A result which originates from one calculation run represents a single esti-mate of reality Based on a large number of calculation runs (performed with one model or several models) certain structure for likely actions and sequences of events can be derived These possible outcomes arise by making alternative deci-sions assuming certain unknown future events Hence different possible scenarios can be explored Accordingly the possible ldquowhat-ifrdquo questions are supposed to be clarified (Kwakkel and Pruyt 2013 Walker et al 2013a)

The most important goal of EMA is to find robust decision paths to cover a vari-ety of future scenarios (Lempert et al 2003 Walker et al 2013b) Thus it is not about designing the best predictive model which will find an optimal solution under certain fixed assumptions (which are fragile in the presence of deep uncertainty anyway) Deep uncertainty exists if among other things it is unclear which models are to be selected to describe the conditionsinteractions and which probability dis-tributions are to be set to describe the uncertainty in the system (Lempert et al 2003 Walker et al 2013b) With deep uncertainty in place it is better to look for decisions that are robust A decision is robust in the face of uncertainty when its actions perform satisfactorily over a range of future situations and are still consis-tent with the given assumptions A decision-maker should ask which of the deci-sionsactions available today are more likely to be the appropriate ones for the future and will still keep the options open enough (Haasnoot et al 2011 Walker et al 2013a Tegeltija et al 2018)

In addition EMA is capable of finding robust decisionspolicies Based on this it is possible to design absorptive and adaptive policies Here absorptive policies as a set of organizational routines allow the assimilation and acquisition of knowledge

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269

to better evaluate future scenarios and therefore to predict more accurately what can happen If you look for the circumstances under which the previous policies fail it is possible to work out adaptive policies that can be iteratively improved in the future (Bankes et al 2013) However such policies are not part of this study

Scenario Planning

Scenario planning generally makes companies more flexible and allows them to adopt more innovative approachespolicies (Hiltunen 2009) In this context sce-narios can be defined as alternative futures that result from a combination of trends and decisionspolicies made Scenarios are meant to show which impactconsequences result if for example the policies are simply maintained in the case of existing trends (see details in Chap 10) They may also show what happens when policies are changed in different ways assuming everything else being equal (Fontela and Hingel 1993)

Scenario planning techniques are often used by decision-makers to evaluate their assumptions about the future quantitatively and qualitatively as well as to evaluate them analytically in order to support decision-making (Schoemaker 1995 Bradfield et al 2005 Varum and Melo 2010) According to Malekpour et al (2013) scenarios can be divided into different generations The first generation of scenarios predic-tive scenarios was developed to answer the question of what will happen eg by means of a trend extrapolation The next generation of scenarios is exploratory sce-narios that represent a multitude of possibilities that are plausible in the future The existence of the exploratory scenarios is reasonable since some statessystems can-not be extrapolated flippantly from past values This is where computer-aided mod-eling like EMA is used (Boumlrjeson et al 2006 Miller and Page 2009 Sondeijker 2009 Malekpour et al 2013)

Scenario discovery is a step sequence that is directly connected to the EMA pro-cess or that can be understood as a specific application of EMA It is scrutinized which behavioral patternslandscapes have arisen in the scenarios created by EMA Finally it can also be determined which particular behavioral patterns consti-tute the greatest benefit for the userrsquos interests with the result that eg worst-case analyses are possible or that critical and controversial decisions can be targeted in advance Scenario discovery goes beyond the purely qualitative assessment approaches and more toward methods of machine learning and related algorithms (Bryant and Lempert 2010 Kwakkel et al 2013) A common algorithm to support scenario discovery is the Patient Rule Induction Method (PRIM) which is a rule- based data mining algorithm (Friedman and Fisher 1999 Kwakkel et al 2013 Dalal et al 2013 Hamarat et al 2014) Robust decision-making (RDM) is closest to our approach RDM uses different views of the future mostly generated and evaluated by scenario discovery to develop a robust plan RDM is also used to check that this plan achieves the desired goals as far as possible and that the weak points in the plan are identified (Walker et al 2013a)


270

Recent Studies

So far there is little literature that combines exploratory modeling (and scenario discovery) with supply chain or logistics applications The latest logistics-related studies are presented in the following

bull Halim et al (2016) deal with EMA and scenario discovery regarding the impact of deep uncertainty on global container transport in European ports (Bremen- LeHavre area) The authors combine the concept of scenario discovery with an additional worst-case discovery technique 10000 scenarios on how the con-tainer flows could proceed were examined Nine uncertain factors were consid-ered A similar procedure as well as further detailed explanations on this topic can be also found in the dissertation of Halim (2017)

bull Moallemi et al (2018) use a scenario discovery approach based on a hypothetical air fleet It deals with the trade-off between maintenance services and aircraft investments with the aim of maximizing flight hours They took ten uncertain factors into account All 500 simulations were performed with a Monte Carlo simulation In addition the authors complemented these simulations with EMA- based procedures (robust decision-making and dynamic adaptive policy pathways)

bull Sallaba et al (2017) employ exploratory modeling to analyze the different time and geography variants of net primary production in terms of demand and supply to develop adaptive policies They make different assumptions about supply and demand The investigations cover the Sahel zone of the twenty-first century The factors that are uncertain include population and technology change

bull Corvers (2016) conducts a scenario discovery on supply chain risk management It deals with identifying the weaknesses of the supply chain Factors that were tested were eg the warehouse decisions and various common risks of a busi-ness and customer demand A total of 49 deep uncertainty factors are examined PRIM and the EMA workbench (the EMA workbench is mentioned below) are used For each of the parameters 250 to 500 experiments are carried out all other things being equal

bull Agusdinata et al (2009) deal with an EMA-based multi-criteria analysis for a case study on intelligent speed limitersadaptationers The impact of these speed limiters is evaluated Fifteen uncertain factors are examined and applied to a total of 16 traffic volume baseline scenarios (scenarios not in the sense of scenarios mentioned above rather as a constraint or condition in an EMA model) The authors finally speak of 13440 combinations that have been tested

bull Kwakkel et al (2012) develop an adaptive airport strategic planning (AASP) approach based on the more common airport master planning (AMP) for the development and expansion of airports They use exploratory modeling (also has slight features of the abovementioned assumption-based planning approach) to test the efficacy of their AASP for a variety of future scenarios concerning Amsterdam airport Schiphol Twelve uncertain factors were incorporated In addition they have incorporated so-called hedging and shaping actions to make

T Gruchmann et al

271

the EMA calculations more robust EMA has shown that AASP exposes the air-port to fewer risks than AMP

In addition to these logistics-related articles there are several other articles that deal with policy-making in various fields Eker et al (2017) are concerned eg with the interests of stakeholders in the Dutch gas sector and use EMA for that Besides EMA is used to analyze developments in sustainable energy transitions (Pruyt et al 2011) Furthermore Pruyt et al (2015) scrutinize reasonable future developments and dynamics of the Ebola outbreak to test the effectiveness of cer-tain policies that are made to restrict the virus under the influence of deep uncer-tainty This article shows that EMA is a versatile base for further analysis and simulations In addition to this there are a number of articles that deal more with the methodology of EMA (see eg Bryant and Lempert 2010 Bankes et al 2013 Kwakkel and Pruyt 2013) Beyond that Kwakkel (2017) created an Exploratory Modeling Workbench as an open-source toolkit that allows users to easily perform exploratory modeling with existing models

In contrast to the previous studies the present study focuses on the application of EMA-based techniques (optimization and simulation) for deciding on the logistics infrastructure (in particular DCs) of a small-scale local food distribution network in Austria

Research Design

Data Sample (Synthetic Population)

Almost all of the input data in this study are synthetic data deduced from the urban characteristics of the Linz region in Upper Austria This satisfies the main purpose of this section which is to illustrate an example application of EMA in the context of local food networks Business confidentiality is another reason for using artificial data

Generating a synthetic population is accordingly useful when real data for indi-viduals is not available or cannot be revealed because of protecting privacy However many individual-based models such as urban models traffic models require explicit assumptions about individuals or households This may include income level edu-cation level existence or absence of criminal records and so on which are strictly protected by privacy laws Synthetic data about households are data which are derived from aggregate data and preserve the statistical characteristics of the popu-lation While preserving statistical characteristics are of utmost importance this study required a consistent assumption about the population In this line we used aggregate data for the Linz region Upper Austria

First all buildings have been retrieved from OpenStreetMap (OSM) Buildings are filtered to include only those being private houses or apartments Each house is ran-domly given characteristics such as socio-economic class number of adults and chil-dren and car ownership This process has been done in a way that ensures statistical


272

characteristics comply to the characteristics of the aggregate data In the case of car ownership the probability is based on the socio-economic class The generated data may not completely resemble actual data or may even deviate significantly in some respects (eg car ownership for which only common sense is used) but its consis-tency is more important for this study

Optimization Algorithms (k-Means and Traveling Salesman Problem)

The structure of the model is comprised of several components After generating the required synthetic data set the model structure needs to be defined by means of optimization approaches in a second step Therefore the location of DCs is calcu-lated using k-means clustering algorithm An example with ten DCs is illustrated in Fig 121 The calculations derived from k-means has been repeated 100 times and averaged over all runs

Once DCs are defined by k-means a TSP-related algorithms with starting point and end point being the same DC have been carried out The length of the shortest tour from DC to DC is an important parameter to calculate overall emissions and operational costs Figure 122 illustrates an example of a shortest route for eight DCs The TSP has been solved using closest neighbor heuristics and then applying two-opt algorithm to improve upon the initial solution

Fig 121 Location of pickup stations and their service area

T Gruchmann et al

273

Simulation

Generally there are optimization algorithms to support the simulation (eg k-means and TSP) on one hand and individual agents (eg households) with numerous deci-sion parameters on the other hand These parameters which control the behavior of households represent the most uncertain component of the model Each of these parameters is in fact a conditional discrete probability distribution which define for instance the degree of contributing to an action of interest based on belonging to each socio-economic group or having a specific characteristics (eg purchasing or not purchasing using specific mode of transport etc) Accordingly these prob-ability distributions are subject to experiments in a third step While reasonable bounds on each parameter can and should be investigated by means of data collec-tion and market research methods the combined effect of all of them cannot be fully depicted by such methods In addition if decision-makers have good reasons to believe in the set of parameters the model will provide a mean to test those assump-tions Such a standard and transparent procedure greatly facilitates negotiation and decision-making by quickly producing plausible output based on specified parameters

Fig 122 Shortest tour to visit all pickup stations


274

Results

The simulated case study is inspired from a real-world case but does not entirely resemble it Some modification and additional assumptions are made to suite for the purpose of this paper which is illustrating the application of EMA in supply chain planning

The business strategy aims to establish a DC-based delivery service of its prod-ucts The initial setting is that all customers pick up their purchases at the DCs Since the distance from the furthest DC in the service area is about 20 kilometers most of the customers drive by their own personal car Consequently as many of the potential customers do not own a car or are not willing to travel long distances they do not consider purchasing the networkrsquos products In addition the travel activities of the end consumers have a significant impact on air pollution and traffic condition at the city level The proposal to be explored is the number of required DCs and provides potential benefits in many respects

bull The distance traveled by trucks for delivering products can be reducedbull Less distance means a higher cost-efficiency and less emissions but at the price

of (presumably) lower customer satisfaction through possible delivery costs Still from the perspective of customers who travel themselves to collect their orders it is an improvement

bull Costs of establishing and running DCs however have to be taken into account While less distance traveled by trucks reduces the cost it may get overcompen-sated by the cost of establishing and running DCs

Accordingly one of the most crucial decision variables in the model is the num-ber of DCs It defines operation costs (both delivery costs and costs associated with pickup stations) additional demand generated through the delivery service and the potential to decrease traffic and air pollution through bringing packages close to consumers If the distance from private housing to DCs is long it implies a high chance of using car by consumers to collect their purchase which may completely reverse the benefits of establishing DCs

It is possible to run the model on an aggregate and disaggregate level In other words the model provides functionalities to act as an analytic tool as well as an individual-based simulation engine These two aspects are complementary but can also be used in isolation Figure 123 illustrates the analysis on an aggregate level Given a subset of existing customers the question is how different number of pickup stations affects the distance that these customers have to travel to pick up their pur-chases It could be insightful from this basic analysis for instance that a number of very short trips will not be significant even in the most extreme case of 30 pickup stations The thresholds given for short medium and long trips are simply rule of thumb the market research has to be carried out for estimating these values For instance if 3 kilometers is a threshold that people are willing to use a bike then there is little motivation to establish more than ten DCs

T Gruchmann et al

275

In Fig 124 total length of tour (ie the tour of the truck based on TSP) and all trips (ie trips from houses to closest DC) is shown Even if we assume all people drive by car to the DC (the distance doesnrsquot matter) increasing the number of pickup stations will decrease the total travels While this analysis can be useful for decision- making it is far from representing the full complexity of the process It does not take into account for instance if the household owns a car or not how many people live in the house (and the consumption rate) and the socio-economic class it belongs to Accordingly the analysis needs to be extended by a simulation approach to con-struct certain scenarios

Figure 125 illustrates a single run of Monte Carlo simulation for a given param-eterization and for the scenario with five DCs Unlike the previous analysis these results are based on individual choice of purchasing which is determined by the socio-economic class number of people in a given household and whether they own a car or not The mode of transport of bike car or walk is also determined by these factors

The current case study implements the model and parameters but the other com-ponents are only partially considered It is nevertheless fully functional decision support system meaning that it facilitates parameter tuning and observing changes

Fig 123 Analysis on an aggregate level


276

in the final state and also optionally include Monte Carlo instead of single run to account for randomness in parameterization of the model In addition executing large number of simulations and analyzing the results only require extending the current implementation with minor or no modification The current model provides fundamental requirements for EMA but does not do the large number of simulation runs due to time and computational limitations

Fig 124 Total length of tours

Fig 125 Total number of purchases from trips with bikingcarwalking distance

T Gruchmann et al

277

Discussion Conclusion and Outlook

Network design decisions are among the most crucial supply chain decisions as their ramifications are durable Designing and analyzing a local food network the focus of the chapter was put on the essential network elements of facilities (DCs) and transportation modes to evaluate a more sustainable network design in particu-lar promoting short trips with walking or biking distance Assuming a threshold of 2 km as biking distance 20 DCs lead to the maximum total length of short trips However as profit margins in the food industry can be very low and distribution activities consume a significant portion of aggregate supply chain costs investments in additional DCs need to be economically justified when it comes to balancing the single triple bottom-line dimensions To achieve such a coverage also in rural areas such as the Linz region existing pickup opportunities should be activated eg through collaborating with other retail stores or restaurants Therefore future research needs to consider the costs for establishing and running pickup stations This also tackles trade-off problem between transportation and inventory holding costs

Generally we showed how the number of required pickup stations can be deter-mined concentrating on selected requirements such as the customerrsquos last mile dis-tance In addition the transportation route of supplying the pickup stations was optimized applying certain TSP algorithms Hence the present study supported the decision-making processes with regard to the distribution network Future research however can also include the optimization of the production network of the small farmers

References

Agusdinata D B van Der Pas J W G M Walker W E amp Marchau V A W J (2009) Multi- criteria analysis for evaluating the impacts of intelligent speed adaptation Journal of Advanced Transportation 43(4) 413ndash454

Bankes S (1993) Exploratory modeling for policy analysis Operations Research 41(3) 435ndash449Bankes S Walker W E amp Kwakkel J H (2013) Exploratory modeling and analysis In

Encyclopedia of operations research and management science (pp 532ndash537) New York Springer

Boumlrjeson L Houmljer M Dreborg K H Ekvall T amp Finnveden G (2006) Scenario types and techniques Towards a userrsquos guide Futures 38(7) 723ndash739

Bradfield R Wright G Burt G Cairns G amp Van Der Heijden K (2005) The origins and evolution of scenario techniques in long range business planning Futures 37(8) 795ndash812

Bryant B P amp Lempert R J (2010) Thinking inside the box A participatory computer-assisted approach to scenario discovery Technological Forecasting and Social Change 77(1) 34ndash49

Corvers R (2016) Scenario discovery in supply chain risk management Delft Delft University of Technology

Dalal S Han B Lempert R Jaycocks A amp Hackbarth A (2013) Improving scenario discov-ery using orthogonal rotations Environmental Modelling amp Software 48 49ndash64


278

Eker S van Daalen E amp Thissen W (2017) Incorporating stakeholder perspectives into model- based scenarios Exploring the futures of the Dutch gas sector Futures 93 27ndash43

Fontela E amp Hingel A (1993) Scenarios on economic and social cohesion in Europe Futures 25(2) 139ndash154

Friedman J H amp Fisher N I (1999) Bump hunting in high-dimensional data Statistics and Computing 9(2) 123ndash143

Haasnoot M Middelkoop H Van Beek E amp Van Deursen W P A (2011) A method to develop sustainable water management strategies for an uncertain future Sustainable Development 19(6) 369ndash381

Halim R A (2017) Strategic modeling of global container transport networks Exploring the future of port-hinterland and maritime container transport networks Delft TRAIL

Halim R A Kwakkel J H amp Tavasszy L A (2016) A scenario discovery study of the impact of uncertainties in the global container transport system on European ports Futures 81 148ndash160

Hamarat C Kwakkel J H Pruyt E amp Loonen E T (2014) An exploratory approach for adap-tive policymaking by using multi-objective robust optimization Simulation Modelling Practice and Theory 46 25ndash39

Hiltunen E (2009) Scenarios Process and outcome Journal of Futures Studies 13(3) 151ndash152Jayaraman V (1998) Transportation facility location and inventory issues in distribution network

design International Journal of Operations amp Production Management 18(5) 471ndash494Kruskal J (1956) On the shortest spanning subtree of a graph and the travelling salesman prob-

lem Proceedings of the American Mathematical Society 7 48ndash50Kwakkel J H (2017) The exploratory modeling workbench An open source toolkit for

exploratory modeling scenario discovery and (multi-objective) robust decision making Environmental Modelling amp Software 96 239ndash250

Kwakkel J H Auping W L amp Pruyt E (2013) Dynamic scenario discovery under deep uncer-tainty The future of copper Technological Forecasting and Social Change 80(4) 789ndash800

Kwakkel J H amp Pruyt E (2013) Exploratory modeling and analysis an approach for model- based foresight under deep uncertainty Technological Forecasting and Social Change 80(3) 419ndash431

Kwakkel J H Walker W E amp Marchau V A W J (2012) Assessing the efficacy of adaptive airport strategic planning Results from computational experiments Environment and Planning B Planning and Design 39(3) 533ndash550

Lempert R J Popper S W amp Bankes S C (2003) Shaping the next one hundred years New methods for quantitative long-term policy analysis Santa Monica Rand

Malekpour S de Haan F J Brown R R (2013) Marrying exploratory modelling to strategic planning Towards participatory model use In 20th International Congress on Modelling and Simulation (MODSIM 2013)

Miller J H amp Page S E (2009) Complex adaptive systems An introduction to computational models of social life (Vol 17) Princeton Princeton University Press

Moallemi E A Elsawah S amp Ryan M J (2018) Model-based multi-objective decision making under deep uncertainty from a multi-method design lens Simulation Modelling Practice and Theory 84 232ndash250

Pruyt E Auping W L amp Kwakkel J H (2015) Ebola in West Africa Model-based exploration of social psychological effects and interventions Systems Research and Behavioral Science 32(1) 2ndash14

Pruyt E Kwakkel J Yucel G amp Hamarat C (2011) Energy transitions towards sustain-ability A staged exploration of complexity and deep uncertainty In Proceedings of the 29th International Conference of the System Dynamics Society Washington 25ndash29 July 2011 System Dynamics Society

Sallaba F Olin S Engstroumlm K Abdi A M Boke-Oleacuten N Lehsten V et al (2017) Future supply and demand of net primary production in the Sahel Earth System Dynamics 8(4) 1191

Schoemaker P J (1995) Scenario planning A tool for strategic thinking Sloan Management Review 36 25ndash40

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Sondeijker S (2009) Imagining sustainability Methodological building blocks for transition sce-narios Rotterdam Erasmus University

Tegeltija M Oehmen J Kozin I amp Kwakkel J (2018) Exploring deep uncertainty approaches for application in life cycle engineering Procedia CIRP 69 457ndash462

Varum C A amp Melo C (2010) Directions in scenario planning literaturemdashA review of the past decades Futures 42(4) 355ndash369

Walker W E Haasnoot M amp Kwakkel J H (2013a) Adapt or perish A review of planning approaches for adaptation under deep uncertainty Sustainability 5(3) 955ndash979

Walker W E Lempert R J amp Kwakkel J H (2013b) Deep uncertainty In Encyclopedia of operations research and management science (pp 395ndash402) New York Springer



Part VSynthesis and Perspectives


Chapter 13Recommendations for Politics Companies and Intermediaries to Support the Transformation Toward Sustainable Supply Chains

Nomo Braun

Abstract The previous chapters dealt in detail with customer-induced innovation for sustainable logistics and conversely with the potential impact of sustainable logistics on the promotion of sustainable lifestyles This chapter leaves this level of detail and draws the bigger picture It answers the following questions What can politics administration and intermediaries concretely do to support sustainable logistics and lifestyles How can the logistics industry itself support sustainability and what kind of cooperation can it already engage in today How can it also become active itself And finally What are the potential quick wins

Keywords Political recommendations middot Transformation towards sustainable supply chains middot Logistics roadmap middot Integrated supply chain middot Sustainable economy

To implement the transformations described in the previous chapters companies expect general conditions that support them At the same time however they them-selves are also in demand when it comes to implementing new methods or processes for sustainability Finally if we want to be consistent we must put the consumer at the center of our considerations and enable him to encourage transformation

Research results show that consumers are hardly concerned about the logistics behind products even if they have a sustainable lifestyle If consumers think about the consequences of the logistics behind their purchases they are more frequently concerned with online purchases than with stationary retail and the consequences are foremost related to the working conditions of courier express and parcel (CEP) service providers However the empirical findings of Part II suggest that consumers are concerned with sustainable logistics if they are explicitly addressed or if corre-sponding sustainability costs are transparent

N Braun () agiplan Muumllheim Germanye-mail nbraunagiplande

284

Moreover some consumers will even be willing to invest in sustainable logistics which shows that the transformation can be paid off To frame an efficient transfor-mation in the logistics sector recommendations are driven and presented for differ-ent players (politics and companies) below (Table 131)

Recommendations for Politics

Promote Integrated Sustainable Logistics in the Last Mile

Current subsidies that affect logistics such as the German program Saubere Luft1 (ldquoclean airrdquo) or initiatives within the framework of the European Regional Development Fund (ERDF)2 usually fall short and only promote individual techno-logical aspects That is why a funding structure is needed that goes far beyond the electrification of urban economic transportation and increasingly takes on an inte-grated perspective Further approaches such as consolidation concepts (urban hubs microdepots) pickup systems (parcel stations delivery boxes) or new traffic con-trol concepts (low-noise delivery at nighttime city tolls) should also be considered evaluated and planned in a holistic urban logistics concept This also includes stronger consideration of logistics processes in the ldquosmart cityrdquo concepts and ldquosmart growthrdquo concepts The latter stimulate urban development to promote a functionally intermingled city of short distances and thus aims to minimize economic traffic

1 httpswwwbundesregierungdeWebsBregDEThemenSaubere-Luft_nodehtml2 For example NRW-Programm ldquoEmissionsfreie Innenstaumldterdquo httpswwwwirtschaftnrwemissionsfreie-innenstadt

Table 131 Recommendations for various player groups in logistics

Politicsa Intermediariesa Companiesa

1 Integrated last mile 12 Sustainable supply chain 13 Customer-oriented innovation research 14 Sustainable logistics labels 2 1 35 Sustainable online packaging 1 26 Regionalism 1 27 Transparent working conditions 1 28 Logistics in sustainability management 2 19 New business models 110 Reverse logistics 2 1

aThe numbers 1 2 and 3 indicate the order of responsibility for the respective recommendation for action in concrete terms then who should first take up the reins of action

N Braun

285

Promote Sustainable Logistics Along the Entire Supply Chain

Individual subsidy programs are already aimed at the electrification of commercial transport3 For a long time it has also been the consensual strategy of all European Union (EU) governments to bring more transport and goods onto the railways4 However these measures are not sufficient yet On average commercial transport causes about 30 of nitrogen oxide (NOx) emissions and 10 of CO2 emissions in city centers (Arndt 2016) The logistics providers mostly agree that the impulse for sustainable logistics must come more from the public sector for both sustainable logistics in the last mile and sustainable e-commerce concepts especially consider-ing the annual growth rates of 10 on average in online trade Political tools and instruments for this have been analyzed and in some cases already tested These include city tolls or last-mile consolidation concepts

The logistics industry is already on the way toward sustainability transformation but it still needs to develop sufficient intrinsic motivation for sustainability more-over public support is highly requested For instance the DHL board chairman Frank Appel demanded that cities should more strongly centralize the last mile and put last-mile distribution out to tender to increase efficiency5

Make the Consumer the Focus of Innovation Research

Companies are increasingly aligning their business strategies to the actual needs of customers and consumers The intensified application of design thinking and busi-ness model canvas instruments in the development of corporate strategy are the proof of this development Chapter 2 showed that detailed engagement with the customer can lead to more differentiated results thus questioning common narra-tives (eg ldquoThe consumer demands same-day deliveryrdquo) or innovation methods focused only on technological innovations Even people with less ldquosustainablerdquo life-styles would choose sustainable delivery options if those options were communi-cated to them transparently This aspect should be generalized and taken more into account in other innovation programs

3 httpwwwbmvideDEThemenMobilitaetElektromobilitaetElektromobilitaet-kompaktelek-tromobilitaet-kompakthtml4 httpswwwbmvideSharedDocsDEArtikelLAfinanzierung-schienehtml5 httpwwwhandelsblattcommyunternehmenhandel-konsumgueterpost-chef-frank-appel-einer-muss-nfangen20606050htmlticket=ST-1910083-6ia9VjrX6nefEgoL2rlt-ap4

13 Recommendations for Politics Companies and Intermediaries to Supporthellip

286

Recommendations for Intermediaries and Organizations

Develop a Label for Sustainable Logistics

This book shows that sustainability in general and sustainable consumption in par-ticular play a role for almost all consumers Sustainability of the delivery itself is less considered However when consumers are informed about the importance of this aspect there is great interest in a sustainable option An appropriate label could utilize this effect The ldquoMade in Germany corporate social responsibility (CSR)rdquo label for example already takes sustainable logistics criteria into account but is still little known and is aimed exclusively at goods produced in Germany The big-gest challenge concerning a label would be the integration of logistics processes into a label system If this integration were successful it would offer great added value because many consumers would choose a product labeled as sustainable in all aspects (including the logistics behind it)

Use Sustainable Online Packaging

Packaging in online trade is usually identical to that in stationary retail While appearance and haptics play a role in the purchase decision in the offline world the online purchase decision is more feature oriented and function oriented At the same time todayrsquos packaging is not yet optimized for eco-friendliness and cost-efficient logistics In the future packaging could be made of recycled materials reusable and designed for optimal utilization of supply capacities With an e-commerce share of more than 15 of the total retail volume (with a strongly increasing tendency) the development of new approaches for online packaging is worthwhile In addition packaging optimized for e-commerce could serve as a communication medium for sustainable logistics as the consumer could choose from different packaging options with corresponding discounts in the buying process

Put More Marketing Efforts into Regionalism and Use It for New Business Models

Chapters 2 and 3 showed that regionalism is important to consumers For logistics this trend is a challenge because it has to be organized in smaller-scale contexts However this also results in new business opportunities for logistics service provid-ers who use digital technologies to open up new business areas

N Braun

287

Make Working Conditions More Transparent and Use Them for Communication

This approach primarily focuses on the social aspect of sustainability Unlike the ecological implications of logistics consumers are well aware of the sometimes poor working conditions in logistics and storage This provides an opportunity for companies to earn a better reputationimage for fair working conditions and use this profile for their communications In the form of an initiative by associations an attempt could be made beyond the company level to denounce grievances and create transparency with regard to the working environment

General Recommendations for Companies

Consider Logistics in the Internal Sustainability or CSR Management of Companies

Logistics processes are usually subordinated or not considered in the internal sus-tainability assessment of companies At the same time logistics in CSR communi-cation are only presented in individual cases Retail companies (both online and offline) could make sustainable logistics part of their corporate brand and thus dif-ferentiate themselves from environmentally harmful business models (eg ldquodispos-ablerdquo clothing)

Recommendations for Logistics Service Providers and CEP Logistics

Use Business Models of the Sharing Economy and Apply Sustainable Delivery Methods

The sharing economy approaches for new business models crowd logistics con-cepts (eg the use of storage space by different users) and local transport services are able to reduce traffic and open up new business areas Other new approaches for the last mile within urban logistics have been tested and are ready for implementa-tion Particularly noteworthy are microdepots from which the last-mile distribution takes place preferably using cargo bikes Another good example is city depots from which the supply to the city centers is ensured in a bundled form However an initial impulse from public institutions seems necessary here (eg access regulations in connection with an invitation to tender for the supply to the city center) so that these


288

concepts are actually applied and also pay off for CEP logisticians in monetary terms In addition retailers could expand their ldquoclick and collectrdquo offers to promote chain purchases and minimize single trips

Exploit the Scope in Reverse Logistics

In reverse logistics (for returned orders) speed is not important On the one hand the speed of a return is not a priority or cost-sensitive process on the other hand the introduction of technological or methodological tools can help to reduce returns and thus resource consumption Chapter 6 showed that introduction of technologies such as visualization tools for eFashion can significantly reduce returns The fact that the return rate of Zalando the largest e-fashion provider is almost 506 con-firms that the leverage here is particularly large Discount or bonus systems for customers not causing returns are also conceivable On the other hand some con-sumers confirm that they are less cost sensitive with returns and would therefore also accept costs for returns (Chap 4)

References

Arndt W (2016) Lecture on 472017 at the IHK Aachen ldquoAuf neuen Wegen in die CitymdashUrbane

Logistikkonzepte fuumlr morgenrdquo

6 httpwwwhandelsblattcomunternehmenhandel-konsumgueterrenditekiller-retouren-auch-zalando-hat-sich-finger-verbrannt8572908-3html

N Braun


Chapter 14Research and Innovation Perspectives on Integrated Supply Chains in a Sustainable Economy

Klaus Krumme and Ani Melkonyan

This book has provided research approaches and results for integration of essential socioeconomic and environmental aspects as well as vital interdependencies of logistics services and sustainable lifestyles for sustainable production supply and consumption systems The research has been focusing on stationary retail e- commerce and new forms of the sharing economy This needs more open views on supply chains within newly defined system boundaries including up to now ldquoexternalrdquo factors in a vertical integration as well as a horizontal expansion of sup-ply chain concepts toward not only production but also consumption and consumer lifestyles and also innovated structures and services as part of the ldquocorerdquo sustainable supply system

From the perspective of integrated supply chains resulting configuration optionsmdashfrom production processes via new logistics services to consumer behav-iormdashhave been analyzed and alternative ldquosustainablerdquo options for action and future strategies have been conceptualized For this a series of workshops with stakehold-ers (logistics service providers business and sustainable consumption experts and intermediaries) expert interviews and comprehensive consumer queries as well as innovative scientific methods such as system dynamics simulation and modeling have been applied

To conclude the book in the following sections the main aspects are summarized as five key theses and the wider sustainable development meaning as well the broader scientific context are discussed Further research and innovation perspec-tives are figured out and accomplished by a too often missing visionary outlook that is needed to recognize real system alternatives with disruptive innovation in think-ing management technology implementation andmdashlast but not leastmdashin stake-holder behavior

K Krumme () middot A Melkonyan Centre for Logistics and Traffic Joint Centre Urban Systems University of Duisburg-Essen Duisburg Germanye-mail klauskrummeuni-duede

290

Thesis 1 Addressing Consumer Behavior and Understanding Consumersrsquo Lifestyles Play a Fundamental Role on the Way to Sustainable Supply Chain and Logistics Innovation

The role of consumers in the transition to a sustainable economy is essential Research results show that greater user integration in the creative processes of prod-uct and service design as well as in production (associated with the term ldquopro-sumerrdquo (Kotler 1986)) and greater participation in the repair or reuse of products (in the sense of a circular economy sharing economy or collaborative consump-tion) have great potential for both users and sustainability traits (Liedtke et al 2013 2015 Blaumlttel-Mink 2014 Chen et al 2015 Arnold 2017)

A central challenge of sustainable product innovation is therefore the greater involvement of people as ldquosystem agentsrdquo in the various stages of product life cycles This focuses on all actors particularly adressing the interfaces between pro-duction systems supply chain systems and consumption systems

Lifestyle and consumer research explores how sustainable patterns of production and consumption can be brought up in society What social and technological inno-vations are needed and how should stakeholders be involved to transform existing paradigms and practices for sustainable development (Liedtke et al 2013b Laschke et al 2015) At the same time living labs which enable interaction and integration of all parties involved in product life cycles are increasingly coming to the fore and on the basis of experiments empirical foundations are being delivered for sustain-able product service systems (PSS) Besides product design customer services within the product life cycle play a significant role which allows for products that trigger more sustainable action through new product characteristics product use alternatives and further correlated service businesses supporting sustainable con-sumption (eg in the form of transformational products) (Liedtke et al 2013b 2013c Laschke et al 2015) Within a product life cycle numerous supply chain structures and services are involved and display powerful levers to enhance sustain-ability on the consumer side by translating structural and conceptual life cycle alter-natives as consumer taylored service operations and to support sustainable consumer behavior However lifestyle research also means evaluating sustainable patterns of consumption against the background of peoplersquos everyday reality Here research on sustainability assessments as well as time use and rebounds can pro-vide valuable clues as to how unwanted negative effects could be reduced or avoided (Liedtke et al 2014 Buhl and Acosta-Fernandez 2015)

Conducted consumer surveys within the ldquoInnovative Logistics for Sustainable Lifestylesrdquo (ILoNa) project have shown that the impact of the delivery of services and goods related to sustainability performances continues to gain importance as a decision-making criterion for products and services demands by consumers (see Chaps 4 and 6) According to the results of two survey studies the dominating trend toward rapid and increasing delivery speeds as a central performance asset of todayrsquos logistics service operations must be clearly questioned from the consumerrsquos point of view In particular the main target groups state that qualitative elements

K Krumme and A Melkonyan

291

other than delivery speed are of relevance and they show a notable delivery-time tolerance correlated with a better information level and increased transparency of the supply chainrsquos sustainability issues

Consumer pressure can make logistics services become more transparent and sustainable and prevents nonsustainable business activities from occurring Nevertheless these sustainable options must be much easier to select (especially when it comes to online purchasing) or should better represent a ldquodefaultrdquo function in the respective selection buying and ordering actions on the consumer side

Research and Innovation Perspectives

Findings from empirical studies and living labs would be particularly relevant for the following areas

1 In the field of e-commerce-based purchases and the resulting product returns comparative case studies would have to be carried out to reliably quantify the sustainability impact (particularly the carbon footprint) of different variants Reliable data are currently unavailable because the evaluation frameworks and system boundaries of already-investigated cases were often set too tightly and did not consider dynamically related but decisive factors in sustainable system behavior

2 Communication and transparency approaches should be developed and tested within a pilot program Within this phase specific webshops and alternative designs could be included to increase the visibility of sustainability effects in the supply chain (eg via persuasive design machine learning and artificial intelligence)

3 Living lab investigation settings could test changes in consumer behavior and could include them in open innovation processes for products and their related service portfolios In turn open innovation processes could be used as a cus-tomer communication tool and incorporated into a living lab environment

4 Accurate spheres of action for reverse logistics in the after-sales area or in the second market require more detailed research from a sustainability perspective Here interlocking aspects of the circular economy and the sharing economy play interesting roles in making sustainability potentials much more usable

5 Social network structures for resource and product sharing collaboration in con-sumption and upcycling and reuse of specific products have high sustainability potential and can fertilize new service models to support and effectivize those collaborative forms of product service systems There is a need for research on realistic development options with regard to professional services and their busi-ness niches standardization and quality management (QM) for reuse and upcy-cling as well as on enabling factors for a stronger mutualistic interplay between networks and service providers (eg trust and reliability) In addition the roles of spatial distances within networks and qualified support through digitization represent underexplored areas of research

14 Research and Innovation Perspectives on Integrated Supply Chains in a Sustainablehellip

292

6 In accordance with the ldquoprosumer modelrdquo the question arises how the stronger basing of logistics services within social networks and the integration of the consumer as a logistician (ldquocrowd logisticsrdquo) might look like To what extent are hybrid solutions in between crowd logistics and professional LSPs feasible What are the respective revenue shares and (maybe dynamic) pricing strategies

Thesis 2 Proactive Innovation for Supply Chains of a Sustainable Economy Allows Promising New Self- Concepts of the Logistics Industry Ultimately the Modularity of Supply Chains in the Entire Product Life Cycle Represents a Paradigm to Attain Sustainability Gains toward a Circular and Sharing Economy

Reflecting challenges of sustainability the discussion of both researchers and prac-titioners is widely dominated by the possible reactive adjustments of logistics in response to sustainability issues Remarkable progress to date can be summarized in two major areas of innovation ldquogreen logisticsrdquo as a collective term for a resource efficient ldquoecologicalrdquo orientation of logistics and ldquologistics social responsibilityrdquo (LSR) as the specific adaptation of the concept of corporate social responsibility (CSR) in the logistics sector (Carter and Jennings 2002 Andersen and Skjoett- Larsen 2009 Carter and Easton 2011)

However the proactive abilities of SCM and logistics to contribute to the required transformation of organizational structures and effective operational changes of and within the socioeconomic system toward a truly green economy remain largely unconsidered A detailed understanding of exactly how SCM and logistics could serve in this respect and of more concrete preliminary transformations or accentua-tions of logistics competencies to fulfill these expectations is lacking

For sustainability transformations the logistical point of view provides helpful perspectives on the phenomena that occur and also key competencies for the solu-tion To do this logistics must continue to develop its self-concept acknowledge its role in a broader socioeconomic context and expand its action portfolio accord-ingly Above all potentials must be addressed that rethink business models opera-tionalize technology and services for the ldquosustainable economic systemrdquo give essential data and information flows a ldquosustainable directionrdquo and reposition infrastructure contexts in a targeted manner that is economically efficient and profitable socially responsible and within the systemrsquos limited ecological capacities

In the area of production and logistics research structures of supply chains have been analyzed for some time in terms of their effectiveness and efficiencymdashfrom a technological perspective as well as economic orientationmdashand new processes


293

structures and services have been subjects of intensive research But making sus-tainable production and consumption systems possible requires a more fundamen-tal restructuring of material sourcing production processes as well as the establishment of supportive business services along innovative value creation struc-tures of the supply chain

Promising anchor points are provided by the concept of modularity which has been recognized by a number of authors (Blevis 2007 Seliger et al 2008 Uumllkuuml and Hsuan 2017) as having high potential for transformation in terms of materials prod-ucts and production processes for sustainable product use forms Thus modular product concepts can represent individualized solutions of user adaptation enable decentralized production patterns or improve the sustainability of products by increasing longevity through their ability to be repaired upgraded and transformed (Niinimaumlki and Hassi 2011) However new sustainable synergies of materials pro-duction use forms etc must also be supported by innovative services to actually achieve the desired sustainability effect These services as well as the associated strengthening of the consumer role (thesis 1) again correspond to the inclusion of useful basic technologies such as information and communications technology (ICT) and to new processes of product manufacturing or development of new mate-rials as much to innovative supply chain structures and services Generally new technical possibilitiesmdashabove all broad digital networking of economic system structures (data exchange data collection and information analysis under ldquobig datardquo)mdashoffer considerable opportunities to optimize the networked logistics pro-cesses needed in newly adapted supply chains

The concept of modularity plays a unifying role for the three areas of produc-tion supply chain systems and consumption From the consumerrsquos point of view more flexibleadaptable and renewable ways of using and reusing products will effectively reduce the (spatial but also economic) distance between production and consumption (taylorization) innovate supply chains drastically and thus have a positive effect for sustainability through changed or extended product life cycles

This sustainable use of products is ultimately dependent on the upstream and increasingly downstream (after-sales) structures mechanisms and services of the supply chain and its organization Value-added services thus increasingly determine alternative performances of holistically understood value creation systems within a sharing and circular economy from the extraction of raw materials through pro-duction takeover of partial production steps distribution and consumer services to product repair take-back and recycling or upcyclingredistribution as advanced forms of closed loop and after sales SCM From this new designs for structural innovation of production processes in the sense of remanufacturingrefurbishment are derived which place new demands on the structure of the products themselves and their use as well as the quality of the production and manufacturing areas and their spatial patterns


294


The following questions can not or only partially be answered by science or in prac-tise and need further intensive research in the future

1 Which (functional) material and product design innovations are fundamentally suitable for longer-lasting more flexible more adaptive life cycles of products even in the second and third generation (updating upcycling refurbishment or remanufacturing) How can the replaced components continue to be used recy-cled reused or upcycled How can this be supported by logistics and supply chain services

2 Which (modular) support structures services and technologies can enable greater structural convergence of production and consumption with changing materials and product quality

3 What business niches and options for action arise especially for the logistics industry What might new business models of information logistics look like to coordinate complex interacting flows of materials goods data and energy in the circular economy and sharing economy

4 Which structural and process-related features of supply chains (including supply chain services) optimally unfold the concrete transformational potentials for the entire or specific stages of sustainable product life cycles What role does modu-larity play in this and how is it transferred concretely

5 What are synergistic effects in meeting customer needs more efficiently through modular design by reducing material and manufacturing costs and by reducing logistics costs through resource efficiency and process optimization

6 What might sharing of costs and revenues of new supply chain structures among partners but also with reference to external social costsrevenues and ecological externalities look like How can related planning management and controlling issues be included in innovative service portfolios of the logistics industry

7 Which methodological and structural developments allow science industry and consumers to work together in the sense of a disruptive sustainability innovation over the product life cycle

Thesis 3 Within the Context of Worldwide Urbanization and Increasingly Urbanized Economies Logistics Play a Great Role in Transformation Processes Toward a Sustainable Socioeconomic System

Urbanization is not just an infrastructural process with a changed pattern in mate-rial and people agglomeration worldwide it also means increasingly urbanized economies and respectively urbanized lifestyles This way urbanization shapes the structural appearance of increasingly artificial city systems and transformed


295

natural ecosystems but also the pathways of all kinds of resources energy and also data in changed sourcendashsink relationships depending on lifestyles and consumption

The central role of urban systems within economic and societal development has significantly increased demands for urban logistics and supply and consequently the related traffic effects in recent decades With the transport sector being respon-sible for around 24ndash32 of the worldrsquos energy-related greenhouse gas (GHG) emis-sions (Ashnani et al 2015) the sector represents not only a major challenge in achieving the European Unionrsquos (EUrsquos) goal of a 80ndash95 reduction in emissions for climate change mitigation by 2050 (compared to 1990) but also it shows great potential for doing so The pressure on commercial municipal and private players will continue to rise thus regulatory consequences will occur

From the SCM perspective and to organize better-managed flows of goods into a city in terms of improved consolidated loading and transport capacities the topic of ldquocity logisticsrdquo was discussed intensively already in the 1990s and implemented in a large number of pilot projects worldwide (Taniguchi 2014) Unfortunately most of the attempts remained unsuccessful and failed in particular because of LSPsrsquo lack of willingness to cooperate collaborate and exchange business-related data generally and particularly in the last mile The wider and more open term of ldquourban logisticsrdquo has recently been more in use It incorporates further spheres of activities in logistics and depicts logistics as a ldquocodesignerrdquo of a sustainable urban environment in terms of particularly materials energy and information flows toward from or within a sustainable urban metabolism The hereby necessar-ily addressed interplay of logistics and urban development provides important levers particularly with respect to climate change mitigation as well as transforma-tion of the socioeconomic system and the green economy in general Logistics and SCM allow holistic system-oriented perspectives on the future supply system of the city bringing together conceptual social technological and economic innovations such as logistics services and technologies in modern supply chain conceptsmdashas addressed in this bookmdashincluding finally the levels of consumption and lifestyles

Since a reduction in the urban ecological footprint depends principally on the levels of resource consumption in the forms of imported material and energy turn-over and the quality and quantity of outflows (including all waste deposits) supply chain areas of competence are addressed to alter the composition as well as the spatial and temporal patterns of the respective material and information flows

However the gap between the requirements for the logistical supply to urban areas is still diverging On the one hand there are the massively increasing and at the same time more fragmented volumes of goods particularly through internet trade On the other hand the escalation of traffic congestions scarcity of space and territorial interest conflicts as well as environmental and climate protection goals lead to considerable restrictions necessary increases in efficiency or radi-cal qualitative structural shifts in terms of infrastructure and the operating ser-vices and their corresponding urban demand systems Previous market offers for


296

logistical optimization of urban systems have focused on partial aspects of the utility function eg cargo bikes for the last mile or automated goods exchange stations This view often unilaterally focuses on technical aspects without reflect-ing on the diversity of systems needed to build the city and most of all without concerting the interplay of new logistics services with the transformation of life-styles and consumer behavior

LSPs are not yet able to implement integrated system solutions for region- city- or neighborhood-specific problems as concerted measures for all stakeholders At the same time municipalities business development agencies and other local groups do not know how to activate and implement such initiatives There is a lack of an integrated systemic solution approach and development of corresponding business models for specific regionalcity or neighborhood-related needs This implementation weakness of comprehensive solution approaches of urban logistics in practice is noticeable since in comparison with the approaches of city logistics of the 1990s new means of technical economic and social solutions are available There appear to be various causes of the present backlog in implementation of inno-vative concepts There is a lack of suitable participatory process models for the transformation and migration of urban material and goods flows into modern sus-tainable urban logistics that can involve all stakeholders and generate clear costndashbenefit balance sheets for the cooperating parties Moreover ldquogreenrdquo urban supply chain strategies are still largely implemented on the basis of individual companies without being implemented in vertical alliances also including the public sector Thus the attempts of individual companies to make their businesses sustainable produce ldquosilordquo solutions and are not convincing enough to make urban logistics genuinely sustainable in the last mile

New solutions are available by integration of ICT for networking and collabora-tion Digital networking favors formations of new logistical service options This means that logistics services can be outsourced to society if needed (ldquocrowd logis-ticsrdquo) The prerequisites are reliable trust-building and ldquodemocratizedrdquo informa-tion systems New infrastructure or trans-shipment storage and transport solutions can contribute to such system innovations Thus for example final storage in the last mile can take place in city hubs or microdepots including further delivery forms such as cargo bikes Digital innovations also allow mobile customers to find and pick up their packages regardless of their current location The solutions require new and smart technologies such as information technology (IT)ndashbased traffic con-trol and modular standardized containers that help to improve vehicle utilization and contribute to development of alternative modes of transport

In the spirit of sustainable urban development these advances in the interplay between the city (in all of its infrastructural social and economic facets) and logistics have to find their way into new concepts and the testing of a sustainable ldquometabolic conceptrdquo of cities which can be summarized as ldquosmart urban metabo-lismrdquo (Shahrokni et al 2015) This task is imperative economically and socially in order to develop potential solutions but at the same time it is scientifically challenging


297


The challenges fundamental development trends and possible solutions in the logistics sector within urban systems can be stated as follows

1 Infrastructure is an important factor but it is currently not at a sufficient level Because of the development of societyrsquos standards demographic shifts and digitization (eg with increasing growth in e-commerce) the infrastructure needs to be qualitativelymdashand not just quantitatively as seems like common sense nowmdashadapted and expanded Not just extensions or upgrades of existing infrastructure elements should take place which might in turn be counterproduc-tive in the future new solutions must be found In the further development of the infrastructure system there are opportunities for sustainability if the stakeholders are willing to consider disruptive innovations

2 Flexibility in deliveriesmdashadapted to the customer their habits or their life-stylesmdashneeds to be intensified but without ldquoproducingrdquo any further sustainabil-ity risks On-demand concepts need to be further developed accordingly without triggering new consumption waves Therefore a discourse on ldquowhat is neededrdquo to fulfill demands and on societal interest is necessary and a discourse on suffi-ciency and ways of consuming must go hand in hand with new logistics services to avoid further rebounds

3 Because of the increase in the number of vehicles the burdens of emissions (CO2 nitrogen oxide (NOx) ultrafine particular matter etc) and noise are increasing in urban agglomerations This is associated with significant health and environmental risks In addition competition for the use of space in the city is increasing significantly Corresponding solutions can only be found in coop-eration with urban development experts and further stakeholders in collaborative coalitions addressing intersectoral solutions instead of isolated developments in single sectors

4 The urban last mile still leaves much space for ldquosimplerdquo optimization there are no standardized carriers in the last mile and there is no technologically opti-mized use of the loading areas of delivery vehicles (regardless of the issue of atomization of consignment sizes and resulting overcapacities) Optimization of packaging could represent a huge potential and cold chains (food and pharma-ceuticals) still need to be optimized for sustainability

Among the possible solution approaches the following aspects can be mentioned as a starting point for application-oriented projects To implement these solutions the logistics industry needs strong political support as well as complementary ser-vice solutions (business to consumer business to business) for example through unconventional start up ideas Moreover companies need central contact personsgroups at public institutions Therefore the main levers of the policy must be ana-lyzed to effectively support the logistics industry during the sustainability transfor-mation so the desired solutions can be successfully implemented


298

(a) Cross-cooperation Cooperation between suppliers customers and public administration must be enforced A ldquostrong cityrdquo is essential for new solutions

(b) Appropriate procedural models and recommendations for implementation are needed which also include meaningful regulatory and organizational measures of politics and take into account the interaction and possible synergies with other fields of responsibility in urban development (mobility of persons housing energy build-ing health etc) Political pressure and regulatory frameworks (push and pull) for development of sustainable urban logistics are strongly considered necessary However the forms of these kinds of frameworks still need to be clarified

(c) The collaboration of service providers is important for the last mile since the orders made via internet platforms generate a greater number of traffic flows thus increasing the volume of traffic in the city New technical possibilities (such as a block chain) are interesting to explore stronger collaboration forms among companies (vertically and horizontally) It may also be possible through new market entrants and services to replace or to supplement conventional ser-vice providers in the last mile

(d) The fundamental question of the restructuring of urban or regional trade and sup-ply structures arises This can include various scenarios for decentralized and small-scale supply patterns reducing logistical efforts or increasing the prefer-ence for environmentally friendly mobility This can also mean ldquovirtual empower-mentrdquo (collaborative IT solutions) of traditional local structures coupled with new local logistical services (regional craft and an urban economy of small scales)

(e) It should be tested how far measurements and sustainable improvements of materials and energy flows can be detected visualized controlled and modified by different economic social and governmental stakeholder groups using a smart urban metabolism approach (SUM) This approach should integrate pro-duction distributiontransport and consumption on a regional scale rather than on a city scale to improve levels of self-organization

(f) Usage of a variety of technical and infrastructural alternatives should be enforced in a mix of different applications microhubs (especially in heavily frequented urban areas) reusable and smart packaging systems (circulation packaging) urban modal shifts and alternative (including totally new) means of transport to relieve and decrease road infrastructure

Thesis 4 Against the Backdrop of Climate Change UrbanRegional Food Supply Systems Emerge As a Main Future Challenge Digitization Helps in Design of Sustainable Food Supply Chains When It Is Integrated into Holistic Approaches

For fulfilling the basic need for nutrition sources of supply and agriculture as a major economic factor are being put into question through climate change In the EU the food system contributes to 17 of GHG emissions and 28 of total resource


299

consumption (Lettenmeier et al 2012 EEA 2013 UBA 2016) Besides this food is not only one of the major contributors to climate change but also particularly vul-nerable to its regional and local impacts Food production and supply are intensively correlated with water and energy issues Specifically under the increasing pressure of climate change this has led to the depiction of the vulnerable dynamic nexus as the ldquowaterndashenergyndashfood security nexusrdquo (WEF nexus) in the scientific literature (Bazilian et al 2011 Hoff 2011 Vermeulen et al 2012 Scott et al 2015 Schipanski et al 2016 Sohofi et al 2016 Krumme et al 2019) Through food supply chains the WEF nexus possibly cascades into supply bottlenecks of urban agglomerations worldwide Cities are particularly vulnerable because of their population density sealed areas and dependence on external sources of supply (see Thesis 3) Thus issues of the WEF nexus represent high destabilization potential within the dynam-ics of primary production supply chains and consumptionlifestyle systems as the main subjects of this book Previous solution attempts have usually ignored a sys-temic view of production supply and consumption The associated threat to the stability of urban agglomerations requires innovative solutions for supply systems including production patterns their spatial distribution logistics systems and ways of consumption

Currently food systems and all of their substructures of production distribution commerce consumption and shopping habits are undergoing a major transforma-tion triggered by sustainability requirements and by technological (mainly digital) and social developments (lifestyle trends) With respect to urban regional and decentralized primary production patterns integrated land management can con-tribute to key factors of a sustainable economymdashthe security of supply and the bal-ance of interests (groups) in the regionmdashas well as to the safeguarding of ecosystem services in the long term

Urban farming initiatives unambiguously demonstrate that urban integrated pro-duction and local actors structures and services can help mitigate supply shocks and shape local food sovereignty (Grewal and Grewal 2012 Barthel and Isendahl 2013 Specht et al 2014) In addition an increasing number of consumers in the field of nutrition are becoming prosumers they are involved in initiatives such as community farming urban farming and other grassroots cooperatives which have recently been establishing themselves as start-ups (Gonzalez 2017 Plieninger et al 2018 Davies and Legg 2018) Such social innovations most of which occur at the local level are critical to addressing present and future societal challenges and represent interesting strategic niches for solution (and also business) upscaling

For an integrated and sustainable approach the components of an urban supply system must be combined and thus system boundaries must be re-examined (Krumme 2016) This includes new relationships between local and regionalurban and rural producers traders and consumers as well as alternative production sup-ply and consumption patterns Some authors have reconstructed and unified urbanndashrural relationships in terms of a regionalized urban metabolism (Zasada 2011 Newman and Jennings 2012 Torreggiani et al 2012) Against this background strengthening of the potential for integrating the system components in a regional setting due to the interaction between cities and their regional surroundings for mutual benefit is particularly important


300

Attractivity and market diffusion depend to a great extent on the performances of logistics services particularly in the fresh food market To create synergistic ser-vices as counterparts of the land management in the region and to generate new sustainable supply scenarios in a practical way a spatial-conceptual expansion of the concept of sustainable supply chain management (SSCM) is necessary and is ready for trialing Generally the range of requirements for supply systems has expanded enormously in terms of SSCM (Carter and Rogers 2008 Carter and Easton 2011 Brandenburg et al 2014) and has shown up possible synergies In this context more modularized regionalized circular economicmdashbut also decelerated or seasonalmdashsupply concepts and better consolidation of goods flows (urban logis-tics) play an important role Innovation of the supply system including trade and logistics must be closely interwoven with the routines of the everyday social prac-tices of people (Reckwitz 2002 Shove et al 2012) in the city and in the countryside as shown in Chap 5

In combination with the aforementioned elements internet-based procurement of (fresh and localregional) food by use of flexible end devices offers interesting syner-gies (see Part III) Early effects of digitization on the food supply chain are obviously possible such as time saving output increases cost reductions and greater environ-mental protection Also for consumer needs digital technologies can bring many benefits ldquofrom farm to forkrdquo Thus digitizing regional food supply chains can help agricultural and rural societies to meet goals effectively in many areas such as agri-cultural extension and advisory services promotion of environmentally sustainable farming practices disaster management and early warning systems enhancement of market access food safety and traceability financial inclusion insurance and risk management and capacity building and empowerment (see Chap 11)

Yet the process of digitization is not fast and dynamic enough Even though technological development is fast the lack of a multistakeholder-based holistic approach represents an obstacle for effective implementation and further iterative developments A multistakeholder approach brings together policy-level and private sector players (such as producers logistics insurances technology developers and mobile network operators) with early innovators and civil groups Thus the core question that arises is how digital technologies will help to overcome societal chal-lenges such as food security functioning of markets sustainable value creation employment and quality of life


We see a necessity to address the following research aspectsquestions cohesively

1 Which tailor-made technologies services and social innovations enable climate- resilient and sustainable food supply in the city and region that are connected to everyday routines and positively influence the quality of life in the city and its surroundings


301

2 What innovation paths are practically feasible and which ones are wanted by different stakeholderinterest groups which are capable of forming interest coalitions (specifically between urban peri-urban and rural communities)

3 Which value creation systems (product and service innovations) can be devel-oped and in what ways and how can climate-resilient and sustainable nutri-tional patterns be promoted

4 How can (alternative) food production networks and also food-sharing commu-nities be enabled to reach critical levels of consumer market shares and to pro-vide alternatives to unsustainable mainstreams

5 To what extent can innovative supply chain and logistics solutions contribute to new (regional and sustainable) solutions How can ICT contribute to these solu-tions and new business models

6 How can ergonomics and the applicability of humanndashcomputer interfaces in e-food attract consumers to use sustainable regional food supply services To match with lifestyles and expectations how should a delivery system (including connected ICT platforms) be designed

7 How far are the indicated innovation paths contributing to a higher quality of life and to regional networks of economic value creation Wow can success be mea-sured in advanced sustainability assessment methodologies

Thesis 5 Digitization Can Significantly Favor the Process of Transformation Toward (a) Sustainable Logistics and (b) Logistical Services of a Sustainable Economy As a ldquoLead Sustainability Service Providerrdquo (6PL)

One of the major goals of the contributions collected in this book has been to involve the potentials of companies in an overall societalsocioeconomic transformation process Along the supply chain parameters that have until now been external to the companymdashsuch as some legal social and ecological parametersmdashwill necessarily in the future be integrated into planning and management Thus long-term cost traps and drivers of socioeconomic and ecological risks for single companies cus-tomers and the whole supply chain can be indicated and used in terms of supply chain governance and transparency Above the level of SCM the integration of externalities in general allows judgments on the planning and monitoring of eco-nomic value creation systems if a specific supply chain performance produces ben-efits or trade-offs for the entire system The creation of such an integrative approach of logistics as the backbone of a green economy would lead to an expansion of the current service models of the logistics industry Inclusion of sustainability issues as integral components of logistics and SCM is described as the ldquosixth party logistics service providerrdquo or the ldquolead sustainability service providerrdquo (6PL) (Krumme et al 2015 2016) The 6PL logistics service model considers modern logisticsSSCM a responsible authority of the design coordination management and control of


302

sustainable operational networks With the aim of resilience the economic dimen-sions of a supply chain are integrated with environmental and social needs in a functional order of a nested organization principle (see Chap 2)

The development perspective of the logistics industry on the 6PL as a new and integrated sustainability-related service model and business archetype for LSPs was discussed intensively with the participating companies and partially implemented in pilot cases within the ILoNa project1 The transformation potentials at the company and supply chain levels were mirrored in various development scenarios within changing options and resulting pathways of the socioeconomic framework (Melkonyan et al 2018)

Transformation of the ldquoold economyrdquo into a sustainable economic system requires much more than just innovation of partial segments integration of new technologies or adjustments in mainstream business models It generally needs a disruptive momentum Theoretically such disruptive innovations in logistics arise when logistics providers offer solutions to customers that rely on profound process changes or on the development of completely different process alternatives However experience shows that many of these innovations are currently being brought into logistics through (external) start-ups from ICT related business rather than from the core of the industry or the companies that (still) dominate the market2 These changes are made by using new technologies of which the application poten-tial goes beyond the provision of traditional services Another prerequisite for the necessary change is the incorporation of modern open innovation methods or a lived ldquoinnovation culturerdquo in the companies which especially place them in an open rela-tionship with social trends creative potentials and change processes (Hruby and Hanke 2014 Hanke 2015)

Hand in hand with such open mind-sets or mind-set shifts strong digital net-working decentralization and automation of information (and execution) systems can play a role as enablers of a transformation toward a sustainable economy Digital technologies have heralded many benefits across a number of sectors through estab-lishing better links between machines and data cloud infrastructures and access to financial sources Such benefits possibly include increased processoperational effi-ciency cost reduction rapid development of innovative business models and increased open collaboration and communication as well as increased sustainabil-ity and environmental outcomes Accordingly digitization can play a driving role in innovative logistics by qualitatively changing individual stages of the value chain as well as the interaction (and roles) between suppliers and customers at all levels of the supply chain This change can result in development of completely new busi-ness models of the 6PL representing individual new service segments in logistics

A major prerequisite is stronger recognition of the synergistic function of digiti-zation and sustainability since digitization per se is not automatism for better effi-ciency or a more sustainable business A strategic focus and understanding of the

1 httplogistik-lebensstilede2 Of course there are exceptions such as the e-scooter from DHL However especially in the area of activation and utilization of large data networks and innovative IT concepts many fast-growing start-ups have recently emerged that have no ldquologistical traditionrdquo


303

desirable ldquosystem of sustainabilityrdquo is still needed (Chap 2) also including the threat of system dynamic backfire and rebound effects when digitization is imple-mented without adequate consideration of the respective knowledge and strategies beforehand In recent years some authors have deepened the scientific discourse on a better andmdashin the sense of a needed qualitative transformationmdashmore precise understanding of the possible interplay between means of digitization and the goal of sustainability including the threat of rebounds (see Worthington 2014 Galvin 2015 Petschow 2016 Walnum and Andrae 2016) With respect to logistics and sup-ply chains and the roles in and for a green economy this issue warrants more atten-tion from researchers and practitioners


During the innovation platform workshops of the ILoNa project3 several best cases for digitization in the industry were named by the logistics companies but there remained open questions that need to be explored in the future (Melkonyan et al 2018)

1 What are the limits and opportunities of digitization for new service networks of sustainable businesses particularly with respect to logistics

2 Which innovations are particularly promising and influential Which innova-tions entail rather little or no progress for sustainable business (eg due to rebound effects)

3 What role does digitization play in regionalized value chains and in the innova-tion of these chains What are the derived sustainability effects (and how are they reliably quantified)

4 What role does digitization play in the sustainable design of integrated value- added networks and thus in the dynamics of all () interdependently linked sup-ply chain stages and places of action in the supply chain Which evaluation models are suitable for such supply chains in sustainable business processes

5 How do technology management and customer communication concepts inter-wine and with which framework conditions would they correspond successfully to shape a transformation toward sustainable business

Outlook Logistics and Supply Chain Research As Part of Sustainability Science

With respect to both the economy and wider society contexts the ldquosustainable sys-temrdquo is the most important driver for innovation in the supply chain (Chap 2) Sustainability is even more powerful than new technologies and digitization

3 httplogistik-lebensstilede


304

because it indicates long-term development prospects and integrates formerly sepa-rated subsystems of value creation bridges the respective stakeholders in commu-nication and collaboration and provides the codes for integrated social technological and business innovation

Logistics and SCM not only are interesting from the point of view of research because of their cross-sectional orientation in relation to the value-adding and sup-ply systems in the economy and society they also have a large leverage effect and responsibility due to their system relevance On the one hand this characteristic has so far not been sufficiently recognized in sustainability science On the other hand sustainability science provides insights into the theoretical and very practical aspects of a vital transformation of our society So far both logistics and supply chain research have not integrated them enough

To approach the goal of a ldquosustainable systemrdquo from different sides the right interfaces for common concepts are required Applications of resilience4 research have this potential to work on a common denominator In recent years resilience has gained importance in research in the field of SCM (Christopher and Peck 2004 Sheffi and Rice 2005 Ponomarov and Holcomb 2009 Pettit et al 2010) In sustain-ability research this tradition is much older (Holling 1973 1996 Walker et al 2004 Walker and Salt 2012 Folke et al 2010) and the necessary knowledge trans-fer has not been completed Conversely the literature on supply chain management has been remarkably less affected

Notions about resilience not only lead to a better understanding of system (inter-) relationships such as of and within supply chains but above all give a clearer orientation on the ability of these systems to be truly sustainable (Krumme 2016) Another advantage is the ability to identify which system components are relevant to a performance and should not be left out of consideration In the context of this book this inevitably leads to the systematic connection and exploration of alternatives for production supply chain structures and services as well as new ways of using goods and products within the context of sustainable lifestyles in society The underlying connections are complex and this book has only been able to pick up some key aspects

This final chapter has identified and discussed various points of relevance It is even more important especially in terms of the role of science itself for improved resilience of the society to find further questions and solutions in the future and to boost the diversity of integrated research and development activities If the book has provided inspiration it has supplied its most important service

4 In principle resilience describes how well a system works under stress and external disturbances or maintains its necessary system services


305

References

Andersen M amp Skjoett-Larsen T (2009) Corporate social responsibility in global supply chains Supply Chain Management An International Journal 14(2) 75ndash86

Arnold M (2017) Fostering sustainability by linking co-creation and relationship management concepts Journal of Cleaner Production 140 179ndash188


Barthel S amp Isendahl C (2013) Urban gardens agriculture and water management Sources of resilience for longterm food security in cities Ecological Economics 86 224ndash234

Bazilian M Rogner H Howells M Hermann S Arent D Gielen D et al (2011) Considering the energy water and food nexus Towards an integrated modeling approach Energy Policy 39(12) 7896ndash7906

Blaumlttel-Mink B (2014) Active consumership as a driver towards sustainability GAIAmdashEcological Perspectives for Science and Society 23(1) 158ndash165

Blevis E (2007) Sustainable interaction design Invention amp disposal renewal amp reuse In Proceedings of the SIGCHI conference on human factors in computing systems (pp 503ndash512) New York ACM

Brandenburg M Govindan K Sarkis J amp Seuring S (2014) Quantitative models for sus-tainable supply chain management Developments and directions European Journal of Operational Research 233(2) 299ndash312

Buhl J amp Acosta-Fernandez J (2015) Work less do less Working time reductions and rebound effects Sustainability Science 11(2) 261ndash276

Carter C R amp Easton P L (2011) Sustainable supply chain management Evolution and future directions International Journal of Physical Distribution and Logistics Management 41(1) 46ndash62

Carter C R amp Jennings M M (2002) Logistics social responsibility An integrative framework Journal of Business Logistics 23(1) 145ndash180


Chen D Heyer S Ibbotson S Salonitis K Steingriacutemsson J G amp Thiede S (2015) Direct digital manufacturing Definition evolution and sustainability implications Journal of Cleaner Production 107 615ndash625


Davies A R amp Legg R (2018) Fare sharing Interrogating the nexus of ICT urban food sharing and sustainability Food Culture amp Society 21(2) 233ndash254

EEA (2013) Environmental pressures from European consumption and production A study in integrated environmental and economic analysis In Technical report 2 Copenhagen European Environment Agency Retrieved from httpwwweeaeuropaeupublicationsenvironmentalpressuresfromeuropeanconsumptionat_downloadfile

Folke C Carpenter S R Walker B Scheffer M Chapin T amp Rockstroumlm J (2010) Resilience thinking Integrating resilience adaptability and transformability Ecology and Society 15(4) 20

Galvin R (2015) The ICTelectronics question Structural change and the rebound effect Ecological Economics 120 23ndash31 httpsdoiorg101016jecolecon201508020

Gonzalez R A (2017) Going back to go forwards From multi-stakeholder cooperatives to open cooperatives in food and farming Journal of Rural Studies 53 278ndash290

Grewal S S amp Grewal P S (2012) Can cities become self-reliant in food Cities 29(1) 1ndash11Hanke T (2015) Lernprozesse ermoumlglichen und gestaltenmdashAnforderungen an die Umsetzung einer

nachhaltigen Unternehmenskultur Corporate Social Responsibility in der Logistikbranche


306

Anforderungen an eine nachhaltige Unternehmensfuumlhrung (pp 143ndash165) Berlin Erich Schmidt Verlag

Hoff H (2011) Understanding the nexus Background paper for the Bonn 2011 Nexus Conference The water energy and food security nexus Solutions for the green economy Stockholm Stockholm Environment Institute

Holling CS (1973) Resilience and Stability of Ecological Systems Annual Review of Ecology and Systematics 4(1) 1ndash23

Holling C S (1996) Engineering resilience versus ecological resilience Engineering within eco-logical constraints 31(1996) 32

Hruby J amp Hanke T (2014) Mindsets fuumlr das Management Uumlberblick und Bedeutung fuumlr Unternehmen und Organisationen Wiesbaden Springer Gabler

Kotler P (1986) Prosumers A new type of consumer The Futurist 20 24ndash28Krumme K (2016) Sustainable development and social-ecological-technological systems

(SETS) Resilience as a guiding principle in the urban-industrial nexus Renewable Energy and Sustainable Development 2(1) 70

Krumme K Hanke T amp Melkonyan A (2016) Resilience and sustainability as drivers for a conceptual transformation in logisticsmdashShared options for green economy research and prac-tice Wuppertal International Sustainability Transitions (IST)

Krumme K Melkonyan A Sohofi A (forthcoming 2019) ldquoSolutions for the Water Energy Food Security Nexus from a Sustainable Supply Chain Viewrdquo Food Security ndash The Science Sociology and Economics of Food Production and Access to Food

Krumme K Schmidt I Meyer N amp Pratt N (2015) Innovative logistics for sustainable lifestyles Concept paper for the research project ldquoILoNardquo DuEPublico Online Publishing University of Duisburg-Essen Retrieved from httpsduepublicouni-duisburg-essende

Laschke M Diefenbach S amp Hassenzahl M (2015) Annoying but in a nice way An inquiry into the experience of frictional feedback International Journal of Design 9(2) 129ndash140

Lettenmeier M Goumlbel C Liedtke C Rohn H amp Teitscheid P (2012) Material footprint of a sustainable nutrition system in 2050mdashNeed for dynamic innovations in production consump-tion and politics In Proceedings of 6th International European Forum (IglsForum) on system dynamics and innovation in food networks (pp 584ndash598) Innsbruck

Liedtke C Baedeker C amp Borrelli L M (2013) Transformation towards a sustainable society Key intervention areas Innovative Energy and Research 4(117) 2

Liedtke C Bienge K Wiesen K Teubler J Greiff K Lettenmeier M et al (2014) Resource use in the production and consumption systemmdashThe MIPS approach Resources 3(3) 544ndash574

Liedtke C Buhl J amp Ameli N (2013b) Designing value through less by integrating sustain-ability strategies into lifestyles International Journal of Sustainable Design 2(2) 167ndash180

Liedtke C Buhl J amp Ameli N (2013c) Microfoundations for sustainable growth with eco- intelligent product service-arrangements Sustainability 5(3) 1141ndash1160

Liedtke C Hasselkuszlig M Welfens M J Nordmann J amp Baedeker C (2015) Transformation towards sustainable consumption Changing consumption patterns through meaning in social practices In Proceedings of 4th International Conference on Sustainability Transitions (pp 19ndash21) Zurich

Melkonyan A Gruchmann T de la Torre G Schumacher T Strube R amp Krumme K (2018) Scenario and strategy planning for sustainable supply chain management International Journal of Physical Distribution (submitted)


Niinimaumlki K amp Hassi L (2011) Emerging design strategies in sustainable production and con-sumption of textiles and clothing Journal of Cleaner Production 19(16) 1876ndash1883

Petschow U (2016) How decentralized technologies can enable commons-based and sustainable futures for value creation In J-P Ferdinand U Petschow amp S Dickel (Eds) The decentral-ized and networked future of value creation 3D printing and its implications for society indus-try and sustainable development (pp 237ndash255) Cham Springer


307


Plieninger T Kohsaka R Bieling C Hashimoto S Kamiyama C Kizos T et al (2018) Fostering biocultural diversity in landscapes through place-based food networks A ldquosolution scanrdquo of European and Japanese models Sustainability Science 13(1) 219ndash233

Ponomarov S Y amp Holcomb M C (2009) Understanding the concept of supply chain resil-ience The International Journal of Logistics Management 20(1) 124ndash143

Reckwitz A (2002) Toward a theory of social practices A development in culturalist theorizing European Journal of Social Theory 5(2) 243ndash263

Schipanski M E MacDonald G K Rosenzweig S Chappell M J Bennett E M Kerr R B et al (2016) Realizing resilient food systems Bioscience 66(7) 600ndash610

Scott C A Kurian M amp Wescoat J L (2015) The waterndashenergyndashfood nexus Enhancing adap-tive capacity to complex global challenges In M Kurian amp R Ardakanian (Eds) Governing the nexus Water soil and waste resources considering global change (pp 15ndash38) Cham Springer

Seliger G Kim H J Kernbaum S amp Zettl M (2008) Approaches to sustainable manufactur-ing International Journal of Sustainable Manufacturing 1(1-2) 58ndash77

Shahrokni H Lazarevic D amp Brandt N (2015) Smart urban metabolism Towards a real-time understanding of the energy and material flows of a city and its citizens Journal of Urban Technology 22(1) 65ndash86


Shove E Pantzar M amp Watson M (2012) The dynamics of social practice Everyday life and how it changes Thousand Oaks CA Sage

Sohofi S A Melkonyan A Karl C K amp Krumme K (2016) System archetypes in the conceptualization phase of waterndashenergyndashfood nexus modeling In Proceedings of the 34th International Conference of the System Dynamics Society Delft

Specht K Siebert R Hartmann I Freisinger U B Sawicka M Werner A et al (2014) Urban agriculture of the future An overview of sustainability aspects of food production in and on buildings Agriculture and Human Values 31(1) 33ndash51

Taniguchi E (2014) Concepts of city logistics for sustainable and liveable cities Procedia - Social and Behavioral Sciences 151 310ndash317

Torreggiani D DallrsquoAra E amp Tassinari P (2012) The urban nature of agriculture Bidirectional trends between city and countryside Cities 29(6) 412ndash416

UBA (2016) Berichterstattung unter der Klimarahmenkonvention der Vereinten Nationen und dem KyotoProtokoll 2016 Nationaler Inventarbericht zu Deutschen Treibhausgasinventar 1990ndash2014 Umweltbundesamt Retrieved from httpswwwumweltbundesamtdepublikationenberichterstattung-unter-der-klimarahmenkonvention-1

Uumllkuuml M A amp Hsuan J (2017) Towards sustainable consumption and production Competitive pricing of modular products for green consumers Journal of Cleaner Production 142 4230ndash4242

Vermeulen S J Campbell B M amp Ingram J S (2012) Climate change and food systems Annual Review of Environment and Resources 37 195ndash222


Walker B amp Salt D (2012) Resilience thinking Sustaining ecosystems and people in a chang-ing world Washington DC Island Press

Walnum H J amp Andrae A S (2016) The internet Explaining ICT service demand in light of cloud computing technologies In T Santarius J H Walnum amp C Aall (Eds) Rethinking climate and energy policies New perspectives on the rebound phenomenon (pp 227ndash241) Cham Springer

Worthington R (2014) Digitization and sustainability In Worldwatch Institute State of the world 2014 Governing for sustainability (pp 53ndash62) Washington DC Island Press

Zasada I (2011) Multifunctional peri-urban agriculturemdashA review of societal demands and the provision of goods and services by farming Land Use Policy 28(4) 639ndash648


309copy Springer Nature Switzerland AG 2019A Melkonyan K Krumme (eds) Innovative Logistics Services and Sustainable Lifestyles httpsdoiorg101007978-3-319-98467-4

AAdaptive Airport Strategic Planning (AASP)

approach 270Agreeableness 93Agri-food chains 215Airport Master Planning (AMP) 270Anti-consumption lifestyle 89Automated guided vehicles (AGVs) 239 255

BBass model 190Behavioral consistency 94 95Big Five Inventory (BFI) 93Business models 286 287 292 296 302

analyzing driving factors and barriers 156ndash158

characteristics 149 160deductive coding scheme 150elements 146ndash148food networks 159local networks 156logistics services 159parameters 145 148research design

case analysis 151case selection 146coding and data analysis 149comparative analysis and triangulation

150data collection 149NETswerk 151ndash153RWAG 153ndash155

SCC 159

social and environmental activities 146stakeholderrsquos social network 146sustainability 145value creation delivery and capture

mechanisms 145Business-to-business (B2B) 66 70 168Business-to-consumer (B2C) 66 70 168

CCargoSwApp 250Causal loop diagram (CLD) 16 40Choice-based conjoint (CBC) task 101Climate change 5Closed loop supply chain management

(CLSCM) 24Common agricultural policy (CAP) 224Communicate sustainable logistics innovations

bonus systemclients 127communication and media preferences

129implementation 128 129measurements 130reducing return orders 128stages of change 128

buying sustainable products 116consumer groups 116consumers 137high quality visualization fitting tool

communication and media preferences 126

content virtual fitting room 124data privacy 125

Index

310

Communicate sustainable logistics innovations (cont)

measurements 126stages of change 124tool and return orders 125

information appacceptance and doubts 134aspects 135communication and media preferences

135implementation 134stages of change 134

online shopping fashion 116overview 118participants 117personal social and infrastructural level

137research methodology 117 118SLB (see Sustainable logistic button

(SLB))stakeholders 118supermarket seal

acceptance 131building confidence 131communication and media preferences

132implementation 131measurements 133stages of change 131

theoretical framework 116 117transitions 116

Community Capital Tool (CCT) 51Complex event processing 241Conscientiousness 93Consumer interaction 11Cooperative transport models 30Corporate innovation management 30Corporate social responsibility (CSR) 25 292Courier express and parcel market (CEP) 168Critical capital 50Cross-impact balance analysis (CIB) 218Cross-impact matrix (CIM) 220 231Crowd logistics 75Customer demands 65Customer-to-customer (C2C) 168Cyber-physical logistics systems (CPLS) 241Cyber-physical-systems (CPS) 4 241

DDelay discounting 90 93Demand chain management (DCM) 7Digital control towers 248

Digital transformation 17Digitalization 69 76Digitization 68

Bitkom 238digital transformation 235 237influence 252influence and requirements 236 251logistics 236ndash237operational level

influences 255requirements 256

relevance and status 238requirements 252SME 238strategic level

influence 252requirements 253ndash254

supply chain management 236ndash237sustainability dimensions 250tactival level

influences 254requirements 254 255

three planning levels 251transportation and logistics sector 237utilization 239

Digitizationreal-world applications

CargoSwApp 250detection of space utilization 248electronic batch recording solutions

243federated electronic stations 249integration levels 243logistics handling areas 249luminous flux 247recorded humidity 246sensor systems 248temperature 245types of data 244

Distributive equity 50Drones 69

Eebay Kleinanzeigen 254Eco-industrial sources 46Ecological economics (EE) 36Ecological systems 5Ecosystem goods and services (EGampS) 49Electronic data interchange (EDI) 253Employee training 30Energy consumption 5Expansionistic supply side 7

Index

311

Exploratory factor analysis 93Exploratory modeling and analysis (EMA)

267ndash269Extended process-oriented event model

(ePoEM) 242Extraversion 93

FFairtrade products 89 95 96 99 100 102Fashion e-commerce 66Food production 144Food sharing

bottom-up innovations 197Fair-Teiler 198food supply 196Germany

adoptioninnovation properties 199analysis of spatial autocorrelation 202Cologne area 204 205density and zip-codes 200 201diffusion of 198geographical diffusion research 202grid of 199ldquoleakagerdquo of innovation 205mobile stations 203party-political preferences 203population density 202registrations 199spatio-temporal process 198zipcode areas 205

mobile distribution infrastructure 198resource efficient behavior 196sharing economy 196sustainable social practice 197technical efficiency 196transformational processes 197

Food supply chains 216ndash217 see Sustainable supply chain management (SSCM)

Foodsharing 16 see Social innovationForest management 107

GGerman Logistics Association (BVL) 235Global Food Systems 213ndash216Green bullwhip effect (GBE) 107ndash111Green Logistics 266 292Greenhouse gas (GHG) 105 106Greenhouse gas emissions (GHGE) 6 8Grocery shopping 88

HHorizon scanning 64 67 73Humanity 107

IInformation and communication technology

(ICT) 4Information technology (IT) 167Innovation 190Innovation diffusion 169 170Innovation platform 12Internal communication 160Internet of Things (IoT) 69

KKey performance indicators (KPI) 9

LLikert scale 92Local economy 144Logistics 4 236ndash237

research community 14SC 23 24SCM 8 14 15and sustainability 6

Logistics and transportation systemsEMA 268field of application 266location planning and network design 266logistics network design 267logistics-related articles 271logistics-related studies 270multitude of approaches 266NETswerk 267research design

aggregate level 275data sample 271k-means and Traveling Salesman

Problem 272ndash273optimization algorithms 272potential customers 274total length of tour 275total number of purchases 276travel activities 274

scenario planning 269Logistics recommendations

sharing economy and sustainable delivery methods 287

Logistics service providers (LSP) 9 22 64

Index

312

MManagement innovations 107Material Values Scale (MVS) 93Mind mapping 173Mobility-as-a-service (MaaS) platforms 224Model-building process

initial mental representationcalibration 177formalization 176initial casual loop and stock and flow

diagram 176revised 175revised casual loop and stock and flow

diagram 176testing and validation 177

modelling processparticipants 174problem analysis 174

PSM 172 173Monetary Choice Questionnaire 93 97 100Monte Carlo multivariate sensitivity 188Monte Carlo simulation 275Multidimensional scaling (MDS) 218Multiple regression analyses 101

NNatural resources 5NETswerk 151ndash153Network analysis model 17Neuroticism 93

OOnline retailing 70ndash73Online-shopping 8Openness 93OpenStreetMap (OSM) 271Organisational innovations 106

PParticipatory systems mapping (PSM) 12

building process 172 173constant service level

no improvement 183 184time-related business model

acceptance 185 186customers over time 182demand-generating activities 183farmersretailers and consumers behavior

166general supply chain research 167innovation diffusion 169 170

last mile distribution 167 168limits to growth 182local sustainable products 177policy recommendations 166sensitivity analysis 187ndash190simulation 182 183system dynamics 170 171variable service level and variable

customer acceptance 186 187WoM 168 169

Peer-to-peer (P2P) 70Plan-do-check-adjust (PDCA) 31Political agreements 107Political recommendations

business models 286CSR management of companies 287entire supply chain 285innovation research 285label for sustainable logistics 286logistics last mile 284online packaging 286transformations 283transparent and communication 287

Process-oriented event model (PoEM) 242Product development 5Product diversity 112Product service systems (PSS) 290Productrsquos lifecycles 3Production-Consumption Systems 219Prosumerism 70

RRadio frequency identification (RFID) 239Regional food networks 144Regionalwert AG (RWAG) 153ndash155Research questions (RQ) 91

SSC decision-making 14Semi-structured qualitative interviews 67

logistics 81research framework 81 82sharing economy 83solutions 83sustainable consumptionconsumers

consumer awareness 82sustainability hot spots 82

trends 83Shared responsibility 50Sharing economy 70Small and middle-sized companies (SME)

238

Index

313

Smart city 76Smartphones 68Social-ecological systems (SES) 27 49Social innovations 69Social media 8Socio-cultural Technological Environmental

Economic and Political (STEEP) method 212

analysis 218pre-policy research 218research design and application 218ndash219social processes 218

Socioeconomic system 4Source of influence model 117Stages of behavior change theory 116Standard bullwhip effect 108State-of-the-art

augmented and virtual reality 241blockchain activities 242CPS and CPLS 241cyber-physical systems 243large-scale adoption 240multi-phased approach 242requirements 242RFID 239software-based information 241statistical methods and data mining

approaches 242transportation and logistics sector 239video cameras and industrial image

processing 240Stationary food retail 66Stationary retailing 71 72Strategic and operational planning 251Supply chain (SC) 13 17 23 24 39 105

110 111Supply chain coordination (SCC) 159Supply chain governance 51Supply chain integrity 51Supply chain management (SCM) 4 7 8

105 235ndash237content-strategic weaknesses 33 34de facto network structures 40disruption 42economic systems 40globalized economic system 22greenhouse gas emissions and climate

change 22inner composition and organization 41logistical activities 22logistics and SC 23 24management scope 41meta rebound effect 22misleading efficiency guidance 33

SSCM 24 25sustainability

action levels 29concept 29decision-making structures 30synergies and long-term entrepreneurial

benefits 31sustainability transition management 31

32sustainable systems

bottom up and system based forces 28design resilient 26efficiency paradigm 27humanndashenvironment systems 26natural capital technological

innovation 28nested hierarchy organization 27planetary boundaries 26safe operating space 26

system thinking and nested systems organization theory 40

systemic emergence 40transformation goals 23

Supply chain networks 3Supply chain resilience (SCRES) 33Supply chain risk management (SCRM) 42

270Supply chain transparency 50Sustainability 5

logistics 6See also Business models

Sustainability science 26Sustainability transition cycle 32Sustainability transition management 31 32Sustainable business models 13 15Sustainable consumption 7 8Sustainable development 5Sustainable development goals (SDG) 213

behavioral consistency factor 97behavioral economics 89buying groceries 99CBC task 101consumers 89 98consumptionproduction 88correlation coefficients 97delay discounting 90descriptive values 96economic sustainability 99environmental beliefs 100factor loadings and mean response

patterns 93 94food-logistics context 99impulsive people 90instruments 92 93

Index

314

Sustainable development goals (SDG) (cont)logistics patterns 89low discounting parameters 101neuroticism 100non-materialistic lifestyles 101non-sustainable behaviors 100organic and nonorganic vegetables 90organic supermarkets 99participants 91participantsrsquo response behavior 94 95personrsquos individual characteristics 90personality traits 90 97planned behavior 88pre-purchase supply chains 89purchases 89shopping behavior 95 96sustainable consumption 89two-factorial structure 98

Sustainable economyconsumer pressure 291digitization 301ndash303economic factor 298food production and supply 299food systems 299ILoNa project 290innovative scientific methods 289innovative supply chain services 292ndash294integrated and sustainable approach 299logistics and supply chain research

303ndash304multi-stakeholder approach 300process of digitization 300research and innovation perspectives

291ndash292 300role of consumers 290socio-economic and environmental aspects

289SSCM 300urban farming initiatives 299worldwide urbanization

digital innovations 296economic and societal development 295infrastructural process 294integrated systemic solution approach

296integration of ICT 296logistical supply 295logistics sector 297metabolic concept 296SCM perspective 295solution approaches 297 298urban logistics 295

Sustainable lifestyles 7 8 64 109 110 283 289 304

Sustainable logistic button (SLB)online fair and eco-fashion shops

background information 123communication and media preferences

123measurements 123ordering process 122pay additional costs and longer waiting

time 122stage of change 122

online shops lower price segmentsbackground information 120communication and media preferences

120ordering process 119pay additional costs and waiting time

120stage of change 119

Sustainable logisticsblended research designs 10 11consumer perspective 9implementation and methodologies 11ndash13and SSCM 6

Sustainable logistics modelsconsumer awareness environmental and

social impacts 73consumer trends 69 70digitalconnected approaches 63ecological consequences 65lifestyles 64logistics services 64methodology 67online retailing 70ndash73sharing economy 70social issues 65societal trends 68stationary retailing 71 72technological trends 68 69

Sustainable logistics servicescooperation actors 81local structures 76 77motivational alliances and existing

awareness 80regionality food sector 77 78returning goods 79sharing economy 75social developments 81sustainability 74 75 80technology and innovation 80working conditions fashion sector 78

Index

315

Sustainable supply chain management (SSCM) 6 7 23ndash25

aggregation functions 36business as usual 226ndash227concepts 39conceptual improvement options 35consumers based on digital innovations

223ndash225critical capital shared responsibility and

distributive equity 46ecosystem goods and services 38entrepreneurialbusiness-driven initiatives

35flows 39food and energy 212food supply chains 216ndash217further recommendation 227ndash228global food systems 213ndash216green gap 212influencing factors and scenario building

process 219ndash222interdisciplinary research 212micro- meso- and mirco-levels 35natural ecosystems 38operationalization 39parameters 38principles 36prospective urbanization 227qualitative content analysis 212SCRES design 42 43SDGs 213sharing society 225ndash226socioeconomic systems 39SUSY 44 45technology assets 38total capital approach 37

Sustainable supply systems (SUSY) 44ndash50System dynamics (SD) 40 170 171 179ndash181System dynamics method 11System resilience 42System thinking approach 16

TTechnology innovations 106Traveling salesman problem (TSP) 266Triple bottom line (TBL) 145 250

UUnited Nations Climate Conference 213Unmanned uninhabitedunpiloted aerial

vehicles (UAVs) 69Urban development 76Urban-industrial metabolism model 47Urban-industrial supply networks 43 44Urbanization 68

VValue creation networks 65Value-creating system 5

WWarehouse management system (WMS)

238ndash239Waste disposalrecycling 65Water Energy Food Security Nexus (WEF

nexus) 299Willingness 94 95Word-of-mouth (WoM) 168 169

Index

Foreword

Acknowledgements

Contents


Chapter 1 Integrating Perspectives of Logistics and Lifestyles for a Sustainable Economy










References

Chapter 2 Supply Chains and Systems of Sustainability An Attempt to Close the Gap

Background




Sustainable Systems

















Respecting Ultimate Source-Sink Relationships of Urban-Industrial Supply Networks




Conclusions

Outlook

References


Chapter 3 Leverage Points for Sustainable Innovative Logistics Considering Consumer Lifestyles

Introduction


Research Question

Research Focus


Fashion E-commerce


Methodology


Societal Trends


Consumer Trends

Sharing Economy

Online Retailing



Online Retailing


Conclusions



Discussion



Discussion



Discussion



Discussion



Discussion



Discussion







Appendix





Block 4 Trends


References

Chapter 4 Assessment of Consumer Attitudes Toward Sustainability in Food Logistics and the Role of Shopping Behavior and Personal Characteristics

Introduction


Research Questions

Methods

Participants

Instruments

Results

Discussion

Conclusion

References

Chapter 5 Green Bullwhip Effect Revisited How Sustainable Lifestyles Might Influence Supply Chains

Introduction



Discussion

Outlook

References

Chapter 6 Communicating Sustainable Logistics Innovations to Various Consumer Groups



Method

Participants


Results


Target Group

Stage of Change

Ordering Process






Target Group

Stage of Change

Ordering Process






Target Group

Stages of Change



Data Privacy




Target Group


Stages of Change


Implementation




Target Group

Acceptance

Stages of Change


Building Confidence




Target Group


Stages of Change

Implementation





References


Chapter 7 Local and Sustainable Food Businesses Assessing the Role of Supply Chain Coordination

Introduction


Research Design

Case Analysis




Discussion


References

Chapter 8 A System Dynamics-Based Simulation Model to Analyze Consumersrsquo Behavior Based on Participatory Systems Mapping ndash A ldquoLast Milerdquo Perspective


Literature Review



Word of Mouth



Research Design


Modeling Process


Problem Analysis






Calibration







Conclusions

References

Chapter 9 Diffusion of a Social Innovation Spatial Aspects of ldquoFoodsharingrdquo Distribution in Germany

Introduction




References


Chapter 10 Scenario Planning for Sustainable Food Supply Chains

Introduction


Global Food Systems

Food Supply Chains


The STEEP Analysis


Results









Conclusion


References

Chapter 11 Applications of Digital Technologies in Sustainable Logistics and Supply Chain Management

Introduction

Background Study


Digitalization

State of the Art













References

Chapter 12 Sustainable Logistics and Transportation Systems Integrating Optimization and Simulation Analysis to Enhance Strategic Supply Chain Decision-Making

Introduction

Case Background




Scenario Planning

Recent Studies

Research Design



Simulation

Results


References


Chapter 13 Recommendations for Politics Companies and Intermediaries to Support the Transformation Toward Sustainable Supply Chains















References

Chapter 14 Research and Innovation Perspectives on Integrated Supply Chains in a Sustainable Economy



Thesis 2 Proactive Innovation for Supply Chains of a Sustainable Economy Allows Promising New Self-Concepts of the Logistics Industry Ultimately the Modularity of Supply Chains in the Entire Product Life Cycle Represents a Paradigm to Attain Sus









References

Index

Innovative Logistics Services and Sustainable Lifestyles









v

Foreword





vi




Raimund Bleischwitz


Foreword

vii

Acknowledgements


ix

Contents









x












Index 309

Contents

xi




About the Editors

xii




About the Editors

xiii

Recommendations




About the Editors

xiv







About the Editors











4







5








6










7








8






9








10











11


















12








13










14












15







16






17







18

References























19

























20

















Klaus Krumme





Background



22






K Krumme

23










24






K Krumme

25






26






Sustainable Systems




K Krumme

27







28








K Krumme

29








30







K Krumme

31











32





TARGET KNOWLEDGE


SYSTEM KNOWLEDGE


K Krumme

33








34




K Krumme

35










36











k k

n

j

j = sum=1

(21)



K Krumme

37


k prime ge 0 (22)








sum ==

n

j

jw1

1




(21prime)







38

max primek (23)















K Krumme

39







40







K Krumme

41






42










K Krumme

43









44







K Krumme

45













46





K Krumme

47




Urban Sink

Resources

Resources Recycle


Natural Capital


Demand

Supply


Emissions

Resources


Thermal Energy

Solar Energy



48




Natural Capital


Solar Energy

PS D R BU3

CU1

U2

Urban Sink

Degraded Materials

Degraded Energy


Supply Chain Scope



ESGS


K Krumme

49




Conclusions




50





Outlook




K Krumme

51









52



References
















K Krumme

53























54


























K Krumme

55

























56


























K Krumme

57

























58

























K Krumme

59

























60





K Krumme








Introduction



64









65






66

Research Question




Research Focus




Fashion E-commerce



67



Methodology






68

Societal Trends









69



Consumer Trends






70


Sharing Economy






Online Retailing



71









72


Online Retailing







73






Conclusions





74






Discussion



75





Discussion




76





Discussion



77





Discussion





78






Discussion





79





Discussion




80










81





Appendix










82




logistics in







Stationary Retail



Shopping


Reverse Logistics





83







Block 4 Trends











84

References



















85



















86



















88

Introduction






G Stoumlckigt et al

89




90




G Stoumlckigt et al

91


Research Questions





Methods


Participants



92

Instruments















G Stoumlckigt et al

93




Results



94




Factor loading 1




0858 minus0063 245 109 1ndash5


0823 minus0097 264 117 1ndash6


0760 0048 258 123 1ndash6


0685 0062 247 114 1ndash6




minus0107 0827 497 092 2ndash6


0267 0626 407 119 1ndash6


0255 0626 418 112 1ndash6


G Stoumlckigt et al

95






96





Variable M SD Range



G Stoumlckigt et al

97






p le 005 p le 001




minus0027 minus0204

p le 005


98


Discussion





G Stoumlckigt et al

99




100




G Stoumlckigt et al

101


Conclusion



102


References




G Stoumlckigt et al

103





















104










G Stoumlckigt et al



Matthias Klumpp



Introduction




106






M Klumpp

107









108





Order volumes V





M Klumpp

109



















110




Discussion




Order volumes V






M Klumpp

111







Outlook



112




References













M Klumpp

113
























114














M Klumpp












116













117






Method

Participants





118




Results








SPS No


SPS No


SPS No



OF Sometimes



OF Sometimes


OF Sometimes



119



Target Group




Stage of Change



Ordering Process



120














121




Motivation Ability

















122


Target Group




Stage of Change


Ordering Process







123












124

Motivation Ability













Target Group



Stages of Change





125








Data Privacy



126






Motivation Ability











127

Motivation Ability













Target Group








128

Stages of Change








Implementation






129
















130



Motivation Ability



effective here














Target Group




131


Acceptance


Stages of Change







Building Confidence



132







TV




Newspapers





133




Motivation Ability




















134


Target Group






Stages of Change


Implementation





135










Newspapers



Magazines



136


Motivation Ability













about the app









137











138


References











139





















144

Introduction





T Gruchmann et al

145






146


Research Design



T Gruchmann et al

147


Codes Description

Value proposition


Supply chain


Customer interface


(continued)


148


Codes Description

Financial model


bull Cost structure



bull Customer

segments

bull Customer



bull Key resources

bull Stakeholder


bull Products and


bull Ecosytem

services

Value


Financial

Model

Customer

Interface


T Gruchmann et al

149








Freiburg Germany





36 25




150



Ecosystem

Services

Key

Partnerships


Natural

Capital




T Gruchmann et al

151

Case Analysis









152










T Gruchmann et al

153






Ecosystem

Services


Key

Partnerships



the provider

Key Activities


production

Value Proposition


organic production



while delivering

Customer Segments



extend further

Natural

Capital

delivery service


Governance


integration

Key Resources


and ICT



amp Collect)

Stakeholder


extend further

Cost Structure


infrastructure

Revenue Streams




154










T Gruchmann et al

155





Ecosystem

Services

ecological farming

forestry and wine

agriculture

Key

Partnerships

network members

Key Activities




Value Proposition



distribution



companies

Customer Segments




Natural Capital


benefits

Governance


supply chain

Key Resources





(network members)

Stakeholder



customers

Financial Model




156









impacts




chains





customers


network members







network



usage)


relationships


T Gruchmann et al

157






158


Discussion




























T Gruchmann et al

159




160





T Gruchmann et al

161





References







162
























T Gruchmann et al

163





























166






Literature Review


G De La Torre et al

167











168






Word of Mouth


G De La Torre et al

169







170






G De La Torre et al

171




Research Design



172



Setup working group




Initial CLDampSFD

revised CLDampSFD



Test and validation



OK

No

Yes

OK

Yes

OKYes

No


Workshop

Group analysis

Field Survey



G De La Torre et al

173




model


model








Model


recommendations




174

Modeling Process



Problem Analysis



G De La Torre et al

175








176









G De La Torre et al

177

Calibration








178

Fig

83

C

ausa

l loo

p di

agra

m o

f co

nsum

er b

ehav

ior

base

d on

PSM

met

hodo

logy

Ow

n ill

ustr

atio

n ba

sed

on th

e co

nduc

ted

wor

ksho

ps

G De La Torre et al

179

Pote

nti

al

Cust

om

ers

Cust

om

ers

new

cust

om

ers

leav

ing c

ust

om

ers

obso

lesc

ence

tim

e

seed

cust

om

ers

Mar

ket

Siz

esa

les

size

frac

tion w

ould

be

wit

h r

eal

pro

spec

ts

would

be

adver

tisi

ng

sale

s

sale

s

adver

tisi

ng

spen

din

g

adver

tisi

ng

effe

ctiv

enes

scust

om

er s

ales

effe

ctiv

enes

s

would

be

word

of

mouth

sal

es

Sal

es p

er c

ust

om

er

Tota

l sa

les

Gro

ss p

rofi

ts

Ser

vic

e le

velSer

vic

e

impro

vem

ent

rate

SI

rate

Ser

vic

e

expec

tati

on

frac

tion s

pen

din

g o

n

adver

tisi

ng

ltG

ross

pro

fits

gt

Sal

es e

ffec

tiven

ess

norm

al

Rel

ativ

e at

trac

tiven

ess

of

new

model

Eff

ect

of

rela

tive

affo

rdab

ilit

y

Eff

ect

of

coll

abora

tion

Eff

ect

of

aver

age

dis

tance

to D

C

Eff

ect

of

freq

uen

cy

of

del

iver

y

Idea

l dis

tance

Act

ual

dis

tance

Num

ber

of

dis

trib

uti

on

cente

rs

Oper

atio

nal

expen

ses

Pac

kag

ing c

ost

s

Num

ber

of

truck

s per

DC

Fix

ed c

ost

of

truck

s

Em

plo

yee

sal

arie

s

Aver

age

sala

ry

Em

plo

yee

str

ength

Em

plo

yee

per

dis

trib

uti

on c

ente

rMai

nte

nan

ce c

ost

per

cen

tre

Wil

lingnes

s to

coll

abora

te

ltO

per

atio

nal

expen

sesgt

Idea

l fr

equen

cyA

ctual

fre

quen

cy

Pro

fit

mar

gin

s

Pro

fit

per

unit

Com

pet

itors

pri

ce p

er u

nit

Aff

ord

abil

ity r

atio

Aver

age

purc

has

e

per

wee

k

ltO

per

atio

nal

expen

sesgt

ltC

ust

om

ersgt

Cust

om

er

purc

has

e Lit

er o

f fu

el p

er

purc

has

e

Fuel

cost

s

Fuel

pri

ce

Coll

abora

tion

norm

al

Tra

nsp

ort

atio

n c

ost

s

wit

h c

oll

abora

tion

ltE

ffec

t of

coll

abora

tiongt

ltC

ust

om

ersgt

Avg c

ust

om

er

per

DC

ltS

ervic

e le

vel

gt

ltS

ervic

e

expec

tati

ongt

Tim

e norm

al

Coll

abora

tion

lookup

Del

ay

Fig

84

Sy

stem

dyn

amic

s m

odel

of

cons

umer

srsquo b

ehav

ior

cons

ider

ing

logi

stic

s as

pect

s an

d th

e di

ffus

ion

of in

nova

tion


180






52 (1 year) Weeks

Potential customers


Customers


Customers


18000 euroDCyear




2 Truck




085 Literpurchase


3 Employees


210 Unitsday


centers DCEmployees



euro

(continued)

G De La Torre et al

181




SI rate52 ndash


005 ndash

Service expectation

095



ndash

Word of mouth sales



Widgetyear





ndash










1 ndash






005 (5) ndash




182





Customers

60000

per

son

45000

30000

15000

0

0 52 104 156 208 260 312 364 416 468 520

Time (Week)



G De La Torre et al

183












184





G De La Torre et al

185






186








G De La Torre et al

187






188








Basic Scenario_opt

500 750 950 1000

Customers

200000

150000

100000

50000

00 104 208 312 416

Time (Week)


Basic Scenario_opt

500 750 950 1000


2 M

15 M

1 M

500000

00 104 208 312 416

Time (Week)


G De La Torre et al

189








190


Conclusions







G De La Torre et al

191



References
















192























G De La Torre et al

193
























194







G De La Torre et al






196



Introduction



R Koumllmel et al

197









198






R Koumllmel et al

199





Year 2012 2013 2014 2015 2016



200


R Koumllmel et al

201



202




R Koumllmel et al

203










204


R Koumllmel et al

205








206


References





R Koumllmel et al

207

























208











R Koumllmel et al










212



Introduction


A Melkonyan et al

213








Global Food Systems



214






A Melkonyan et al

215








216




Food Supply Chains





A Melkonyan et al

217








Imports


Exports

Farm

Retailer

Carterer

Consumer



218



The STEEP Analysis








A Melkonyan et al

219




Results







scenarios

Social

Technological

Environmental

Economical

Political

S T E E P


Scenario 1

Scenario 2

Scenario 3

S 1

S 2

S 3



220









bull Price pressure












A Melkonyan et al

221











with high subsidies


Deregulated Market




Option BDigitized

economy with high

transparency


less transparency





Hig

h

Low

Pric

e P

ress

ure


Tran

spar

ency

alo

ng

the

Valu

e Ch

ain

Low

Low

Hig

h

High

Low



222

-1 -05 0 +05 +1

-1-0

50

+05

+1

7a4b1a

8b

1b

6b

1c

5a

6a

8c

2b

3a

7b

SCENARIO 1

SCENARIO 2

SCENARIO 3

SCENARIO 4

Dimension 1

Dim

ensi

on 2







A Melkonyan et al

223




prices

LOHA








Strategic alliances


digital innovations















224


Farmed Aquaculture









Healthy Lifestyle









A Melkonyan et al

225













226






funds



A Melkonyan et al

227














228



Today


oriented systems


Undesired future






New regulations

Health



Future


A Melkonyan et al

229

Conclusion







230



policy



policy



issues


energy



sustainable economy



are not developing





Hig

h

Low

Inte

rnal

izat

ion

of E

xter

nalit

ies

Raw material prices

Avai

labi

lity

of

Rene

wab

le E

nerg

yLo

w

Low

Hig

h

High

Low




Option C Ownership

focused society



C2C )



Asso

ciat

ions

and

par

tner

ship

s

Low

Low

Hig

h

High






Protection


concepts


CO2eq-Release

Land

Use

Cha

nges

Low

Low

Hig

h

High


(Shanghai Mumbai)




(Mongolia Syberia)





income


sustainability)



income


less income


High

Hig

h

Low

Dem

ogra

phic

Cha

nge


Inco

me

of P

opul

atio

n

Low

Low

Hig

h

High

Low

Urbanisation


A Melkonyan et al

231

CIM

1a1b

1c1d

2a2b

2c3a

3b3c

3d4a

4b4c

4d5a

5b5c

5d6a

6b6c

6d7a

7b7c

7d8a

8b8c

8d1a

0-1

-1-2

00

-10

11

12

00

-1-1

-10

-2-1

00

-11

00

10

10

01b

0-1

-2-2

21

10

-1-1

1-1

-1-1

10

-10

0-1

-1-1

00

-12

01

00

1c0

-22

-12

-1-1

-21

-2-1

01

00

00

-1-1

1-2

-1-1

1-2

00

00

1d0

-1-1

2-2

01

-20

00

0-1

0-1

0-2

-22

-21

-10

00

00

02a

0-2

-1-1

20

2-2

-12

0-1

00

1-1

00

-2-1

-12

0-1

00

02b

0-2

-10

-1-1

12

-21

2-1

00

12

-12

10

01

01

-10

2c0

-20

00

-1-1

20

-10

00

-1-1

1-1

00

1-1

-1-1

0-1

3a0

-2-2

-22

1-2

-2-1

-10

-2-1

0-1

0-1

-1-1

0-1

1-2

-13b

0-2

-21

0-1

00

-22

-1-1

0-1

-11

10

1-1

2-1

03c

0-2

-2-2

11

-10

-21

-1-2

-1-1

00

0-1

0-1

1-2

3d0

-1-1

11

-20

-20

0-1

00

00

0-1

0-1

1-1

4a0

-2-2

-2-1

-10

01

10

20

0-1

1-1

1- 2

04b

0-2

-20

-10

-11

0-1

02

20

1-2

2-1

04c

0-2

00

-20

-1-1

0-1

-1-1

0-2

0-2

0-2

4d0

-10

-2-1

0-1

-1-1

00

-10

-1-1

0-1

5a0

-2-2

-2-1

0-1

10

1-1

00

0-1

05b

0-2

-20

-10

-10

1-1

0-1

-22

-25c

0-2

01

-10

-10

00

-11

-20

5d0

-1-1

0-1

00

0-1

0-1

00

6a0

-2-2

-2-1

0-2

1-1

-1-1

-16b

0-2

-20

0-2

1-1

2-1

06c

0-2

-1-1

20

1-1

0-1

6d0

10

01

10

00

7a0

-2-2

-20

-10

-17b

0-2

-20

00

07c

0-1

10

-1-1

7d0

00

- 10

8a0

-2-2

-28b

0- 2

-28c

0-2

8d0

Fig

10

9 C

ross

-im

pact

mat

rix

(CIM

) of

pai

r-w

ise

com

pari

son

of t

he f

utur

e op

tions

for

all

the

rele

vant

fac

tors

Ass

essm

ent

rang

e minus

2 b

oth

deve

lopm

ents

ca

nnot

occ

ur a

t the

sam

e tim

e minus

1 th

ey c

an o

ccur

but

don

rsquot m

ake

sens

e 0

mut

ual c

oexi

sten

ce +

1 th

ey m

ake

sens

e +

2 m

utua

l sup

port

syn

ergy

(N

ote

for

in

stan

ce o

ptio

n 3a

is in

volv

ed in

the

Fig

10

8a a

nd r

epre

sent

s ldquon

o m

arke

t fai

lure

rdquo)


232

References























A Melkonyan et al

233




















Introduction



236




Background Study



F Wei et al

237



Digitalization



238




15

10

18

15

25

26

13

10

6

6

3

Planned

72

69

46

48

35

19

16

2

6

5

2

Electronic invoice



Tracking

Cloud Computing

Big Data Analytics

Pick by Light

Pick by Voice


Learning software

Block chain

In Use


F Wei et al

239


State of the Art



Predicve analysis

Robots




Rele

vanc

e of

the

tech

nolo

gy co

ncep

ts

Predicvemaintenance



Pick by Vision


Drones

Block chain

Use of wearables


plaorms

Pick by Voice

Pick by Light






Webbasedcommunicaon

plaorms

2D codes


Systems (WMS)




Future growth

Very low Very high

Very

hig

hVe

ry lo

w


Assistance systems

Data analysis

Autonomous systems

IT services

Informaon exchange

Data collecon



240




F Wei et al

241






242









F Wei et al

243












244








F Wei et al

245

Fig

11

4 Te

mpe

ratu

re in

a w

orki

ng e

nvir

onm

ent (

begi

nnin

g fr

om F

ebru

ary

to m

id-A

pril)


246

Fig

11

5 R

ecor

ded

hum

idity

in a

wor

kpla

ce (

begi

nnin

g Fe

brua

ry to

mid

-Apr

il)

F Wei et al

247

Fig

11

6 L

umin

ous

flux

in a

fac

tory

bui

ldin

g (b

egin

ning

Feb

ruar

y to

mid

-Apr

il)


248








F Wei et al

249



Control Tower

Company A


Control Tower

Company B




Real Flow of Goods






Control Tower

Company A


Control Tower

Company B


4PL-service pr

sticicesster




250







F Wei et al

251











Resource reduction




252






F Wei et al

253






21

21

21

31

10

14

12

8

46

41

38

27

44

38

35

24

0 10 20 30 40 50 60












254










F Wei et al

255








256






F Wei et al

257








References



258














F Wei et al

259





















260

















F Wei et al

261


















262


















F Wei et al

263












266

Introduction






T Gruchmann et al

267


Case Background






268






T Gruchmann et al

269


Scenario Planning


Scenario planning techniques are often used by decision-makers to evaluate their assumptions about the future quantitatively and qualitatively as well as to evaluate them analytically in order to support decision-making (Schoemaker 1995 Bradfield et al 2005 Varum and Melo 2010) According to Malekpour et al (2013) scenarios can be divided into different generations The first generation of scenarios predic-tive scenarios was developed to answer the question of what will happen eg by means of a trend extrapolation The next generation of scenarios is exploratory sce-narios that represent a multitude of possibilities that are plausible in the future The existence of the exploratory scenarios is reasonable since some statessystems can-not be extrapolated flippantly from past values This is where computer-aided mod-eling like EMA is used (Boumlrjeson et al 2006 Miller and 009 Sondeijker 2009 Malekpour et al 2013)



270

Recent Studies








T Gruchmann et al

271




Research Design






272






T Gruchmann et al

273

Simulation




274

Results








T Gruchmann et al

275






276




T Gruchmann et al

277




References










278























T Gruchmann et al

279











Nomo Braun






284










N Braun

285








286








N Braun

287










288




References




N Braun








290







291











292








293






294













295







296






297









298










299






300








301










302








303













304








305

References























306























307
































SCC 159










Index

310


























Index

311























Index

312
























238

Index

313

























Index

314





















Index

315















Index

Foreword

Acknowledgements

Contents












References


Background




Sustainable Systems





















Conclusions

Outlook

References



Introduction


Research Question

Research Focus


Fashion E-commerce


Methodology


Societal Trends


Consumer Trends

Sharing Economy

Online Retailing



Online Retailing


Conclusions



Discussion



Discussion



Discussion



Discussion



Discussion



Discussion







Appendix





Block 4 Trends


References


Introduction


Research Questions

Methods

Participants

Instruments

Results

Discussion

Conclusion

References


Introduction



Discussion

Outlook

References




Method

Participants


Results


Target Group

Stage of Change

Ordering Process






Target Group

Stage of Change

Ordering Process






Target Group

Stages of Change



Data Privacy




Target Group


Stages of Change


Implementation




Target Group

Acceptance

Stages of Change


Building Confidence




Target Group


Stages of Change

Implementation





References



Introduction


Research Design

Case Analysis




Discussion


References



Literature Review



Word of Mouth



Research Design


Modeling Process


Problem Analysis






Calibration







Conclusions

References


Introduction




References



Introduction


Global Food Systems

Food Supply Chains


The STEEP Analysis


Results









Conclusion


References


Introduction

Background Study


Digitalization

State of the Art













References


Introduction

Case Background




Scenario Planning

Recent Studies

Research Design



Simulation

Results


References

















References













References

Index









v

Foreword





vi




Raimund Bleischwitz


Foreword

vii

Acknowledgements


ix

Contents









x












Index 309

Contents

xi




About the Editors

xii




About the Editors

xiii

Recommendations




About the Editors

xiv







About the Editors











4







5








6










7








8






9








10











11


















12








13










14












15







16






17







18

References























19

























20

















Klaus Krumme





Background



22






K Krumme

23










24






K Krumme

25






26






Sustainable Systems




K Krumme

27







28








K Krumme

29








30







K Krumme

31











32





TARGET KNOWLEDGE


SYSTEM KNOWLEDGE


K Krumme

33








34




K Krumme

35










36











k k

n

j

j = sum=1

(21)



K Krumme

37


k prime ge 0 (22)








sum ==

n

j

jw1

1




(21prime)







38

max primek (23)















K Krumme

39







40







K Krumme

41






42










K Krumme

43









44







K Krumme

45













46





K Krumme

47




Urban Sink

Resources

Resources Recycle


Natural Capital


Demand

Supply


Emissions

Resources


Thermal Energy

Solar Energy



48




Natural Capital


Solar Energy

PS D R BU3

CU1

U2

Urban Sink

Degraded Materials

Degraded Energy


Supply Chain Scope



ESGS


K Krumme

49




Conclusions




50





Outlook




K Krumme

51









52



References
















K Krumme

53























54


























K Krumme

55

























56


























K Krumme

57

























58

























K Krumme

59

























60





K Krumme








Introduction



64









65






66

Research Question




Research Focus




Fashion E-commerce



67



Methodology






68

Societal Trends









69



Consumer Trends






70


Sharing Economy






Online Retailing



71









72


Online Retailing







73






Conclusions





74






Discussion



75





Discussion




76





Discussion



77





Discussion





78






Discussion





79





Discussion




80










81





Appendix










82




logistics in







Stationary Retail



Shopping


Reverse Logistics





83







Block 4 Trends











84

References



















85



















86



















88

Introduction






G Stoumlckigt et al

89




90




G Stoumlckigt et al

91


Research Questions





Methods


Participants



92

Instruments















G Stoumlckigt et al

93




Results



94




Factor loading 1




0858 minus0063 245 109 1ndash5


0823 minus0097 264 117 1ndash6


0760 0048 258 123 1ndash6


0685 0062 247 114 1ndash6




minus0107 0827 497 092 2ndash6


0267 0626 407 119 1ndash6


0255 0626 418 112 1ndash6


G Stoumlckigt et al

95






96





Variable M SD Range



G Stoumlckigt et al

97






p le 005 p le 001




minus0027 minus0204

p le 005


98


Discussion





G Stoumlckigt et al

99




100




G Stoumlckigt et al

101


Conclusion



102


References




G Stoumlckigt et al

103





















104










G Stoumlckigt et al



Matthias Klumpp



Introduction




106






M Klumpp

107









108





Order volumes V





M Klumpp

109



















110




Discussion




Order volumes V






M Klumpp

111







Outlook



112




References













M Klumpp

113
























114














M Klumpp












116













117






Method

Participants





118




Results








SPS No


SPS No


SPS No



OF Sometimes



OF Sometimes


OF Sometimes



119



Target Group




Stage of Change



Ordering Process



120














121




Motivation Ability

















122


Target Group




Stage of Change


Ordering Process







123












124

Motivation Ability













Target Group



Stages of Change





125








Data Privacy



126






Motivation Ability











127

Motivation Ability













Target Group








128

Stages of Change








Implementation






129
















130



Motivation Ability



effective here














Target Group




131


Acceptance


Stages of Change







Building Confidence



132







TV




Newspapers





133




Motivation Ability




















134


Target Group






Stages of Change


Implementation





135










Newspapers



Magazines



136


Motivation Ability













about the app









137











138


References











139





















144

Introduction





T Gruchmann et al

145






146


Research Design



T Gruchmann et al

147


Codes Description

Value proposition


Supply chain


Customer interface


(continued)


148


Codes Description

Financial model


bull Cost structure



bull Customer

segments

bull Customer



bull Key resources

bull Stakeholder


bull Products and


bull Ecosytem

services

Value


Financial

Model

Customer

Interface


T Gruchmann et al

149








Freiburg Germany





36 25




150



Ecosystem

Services

Key

Partnerships


Natural

Capital




T Gruchmann et al

151

Case Analysis









152










T Gruchmann et al

153






Ecosystem

Services


Key

Partnerships



the provider

Key Activities


production

Value Proposition


organic production



while delivering

Customer Segments



extend further

Natural

Capital

delivery service


Governance


integration

Key Resources


and ICT



amp Collect)

Stakeholder


extend further

Cost Structure


infrastructure

Revenue Streams




154










T Gruchmann et al

155





Ecosystem

Services

ecological farming

forestry and wine

agriculture

Key

Partnerships

network members

Key Activities




Value Proposition



distribution



companies

Customer Segments




Natural Capital


benefits

Governance


supply chain

Key Resources





(network members)

Stakeholder



customers

Financial Model




156









impacts




chains





customers


network members







network



usage)


relationships


T Gruchmann et al

157






158


Discussion




























T Gruchmann et al

159




160





T Gruchmann et al

161





References







162
























T Gruchmann et al

163





























166






Literature Review


G De La Torre et al

167











168






Word of Mouth


G De La Torre et al

169







170






G De La Torre et al

171




Research Design



172



Setup working group




Initial CLDampSFD

revised CLDampSFD



Test and validation



OK

No

Yes

OK

Yes

OKYes

No


Workshop

Group analysis

Field Survey



G De La Torre et al

173




model


model








Model


recommendations




174

Modeling Process



Problem Analysis



G De La Torre et al

175








176









G De La Torre et al

177

Calibration








178

Fig

83

C

ausa

l loo

p di

agra

m o

f co

nsum

er b

ehav

ior

base

d on

PSM

met

hodo

logy

Ow

n ill

ustr

atio

n ba

sed

on th

e co

nduc

ted

wor

ksho

ps

G De La Torre et al

179

Pote

nti

al

Cust

om

ers

Cust

om

ers

new

cust

om

ers

leav

ing c

ust

om

ers

obso

lesc

ence

tim

e

seed

cust

om

ers

Mar

ket

Siz

esa

les

size

frac

tion w

ould

be

wit

h r

eal

pro

spec

ts

would

be

adver

tisi

ng

sale

s

sale

s

adver

tisi

ng

spen

din

g

adver

tisi

ng

effe

ctiv

enes

scust

om

er s

ales

effe

ctiv

enes

s

would

be

word

of

mouth

sal

es

Sal

es p

er c

ust

om

er

Tota

l sa

les

Gro

ss p

rofi

ts

Ser

vic

e le

velSer

vic

e

impro

vem

ent

rate

SI

rate

Ser

vic

e

expec

tati

on

frac

tion s

pen

din

g o

n

adver

tisi

ng

ltG

ross

pro

fits

gt

Sal

es e

ffec

tiven

ess

norm

al

Rel

ativ

e at

trac

tiven

ess

of

new

model

Eff

ect

of

rela

tive

affo

rdab

ilit

y

Eff

ect

of

coll

abora

tion

Eff

ect

of

aver

age

dis

tance

to D

C

Eff

ect

of

freq

uen

cy

of

del

iver

y

Idea

l dis

tance

Act

ual

dis

tance

Num

ber

of

dis

trib

uti

on

cente

rs

Oper

atio

nal

expen

ses

Pac

kag

ing c

ost

s

Num

ber

of

truck

s per

DC

Fix

ed c

ost

of

truck

s

Em

plo

yee

sal

arie

s

Aver

age

sala

ry

Em

plo

yee

str

ength

Em

plo

yee

per

dis

trib

uti

on c

ente

rMai

nte

nan

ce c

ost

per

cen

tre

Wil

lingnes

s to

coll

abora

te

ltO

per

atio

nal

expen

sesgt

Idea

l fr

equen

cyA

ctual

fre

quen

cy

Pro

fit

mar

gin

s

Pro

fit

per

unit

Com

pet

itors

pri

ce p

er u

nit

Aff

ord

abil

ity r

atio

Aver

age

purc

has

e

per

wee

k

ltO

per

atio

nal

expen

sesgt

ltC

ust

om

ersgt

Cust

om

er

purc

has

e Lit

er o

f fu

el p

er

purc

has

e

Fuel

cost

s

Fuel

pri

ce

Coll

abora

tion

norm

al

Tra

nsp

ort

atio

n c

ost

s

wit

h c

oll

abora

tion

ltE

ffec

t of

coll

abora

tiongt

ltC

ust

om

ersgt

Avg c

ust

om

er

per

DC

ltS

ervic

e le

vel

gt

ltS

ervic

e

expec

tati

ongt

Tim

e norm

al

Coll

abora

tion

lookup

Del

ay

Fig

84

Sy

stem

dyn

amic

s m

odel

of

cons

umer

srsquo b

ehav

ior

cons

ider

ing

logi

stic

s as

pect

s an

d th

e di

ffus

ion

of in

nova

tion


180






52 (1 year) Weeks

Potential customers


Customers


Customers


18000 euroDCyear




2 Truck




085 Literpurchase


3 Employees


210 Unitsday


centers DCEmployees



euro

(continued)

G De La Torre et al

181




SI rate52 ndash


005 ndash

Service expectation

095



ndash

Word of mouth sales



Widgetyear





ndash










1 ndash






005 (5) ndash




182





Customers

60000

per

son

45000

30000

15000

0

0 52 104 156 208 260 312 364 416 468 520

Time (Week)



G De La Torre et al

183












184





G De La Torre et al

185






186








G De La Torre et al

187






188








Basic Scenario_opt

500 750 950 1000

Customers

200000

150000

100000

50000

00 104 208 312 416

Time (Week)


Basic Scenario_opt

500 750 950 1000


2 M

15 M

1 M

500000

00 104 208 312 416

Time (Week)


G De La Torre et al

189








190


Conclusions







G De La Torre et al

191



References
















192























G De La Torre et al

193
























194







G De La Torre et al






196



Introduction



R Koumllmel et al

197









198






R Koumllmel et al

199





Year 2012 2013 2014 2015 2016



200


R Koumllmel et al

201



202




R Koumllmel et al

203










204


R Koumllmel et al

205








206


References





R Koumllmel et al

207

























208











R Koumllmel et al










212



Introduction


A Melkonyan et al

213








Global Food Systems



214






A Melkonyan et al

215








216




Food Supply Chains





A Melkonyan et al

217








Imports


Exports

Farm

Retailer

Carterer

Consumer



218



The STEEP Analysis








A Melkonyan et al

219




Results







scenarios

Social

Technological

Environmental

Economical

Political

S T E E P


Scenario 1

Scenario 2

Scenario 3

S 1

S 2

S 3



220









bull Price pressure












A Melkonyan et al

221











with high subsidies


Deregulated Market




Option BDigitized

economy with high

transparency


less transparency





Hig

h

Low

Pric

e P

ress

ure


Tran

spar

ency

alo

ng

the

Valu

e Ch

ain

Low

Low

Hig

h

High

Low



222

-1 -05 0 +05 +1

-1-0

50

+05

+1

7a4b1a

8b

1b

6b

1c

5a

6a

8c

2b

3a

7b

SCENARIO 1

SCENARIO 2

SCENARIO 3

SCENARIO 4

Dimension 1

Dim

ensi

on 2







A Melkonyan et al

223




prices

LOHA








Strategic alliances


digital innovations















224


Farmed Aquaculture









Healthy Lifestyle









A Melkonyan et al

225













226






funds



A Melkonyan et al

227














228



Today


oriented systems


Undesired future






New regulations

Health



Future


A Melkonyan et al

229

Conclusion







230



policy



policy



issues


energy



sustainable economy



are not developing





Hig

h

Low

Inte

rnal

izat

ion

of E

xter

nalit

ies

Raw material prices

Avai

labi

lity

of

Rene

wab

le E

nerg

yLo

w

Low

Hig

h

High

Low




Option C Ownership

focused society



C2C )



Asso

ciat

ions

and

par

tner

ship

s

Low

Low

Hig

h

High






Protection


concepts


CO2eq-Release

Land

Use

Cha

nges

Low

Low

Hig

h

High


(Shanghai Mumbai)




(Mongolia Syberia)





income


sustainability)



income


less income


High

Hig

h

Low

Dem

ogra

phic

Cha

nge


Inco

me

of P

opul

atio

n

Low

Low

Hig

h

High

Low

Urbanisation


A Melkonyan et al

231

CIM

1a1b

1c1d

2a2b

2c3a

3b3c

3d4a

4b4c

4d5a

5b5c

5d6a

6b6c

6d7a

7b7c

7d8a

8b8c

8d1a

0-1

-1-2

00

-10

11

12

00

-1-1

-10

-2-1

00

-11

00

10

10

01b

0-1

-2-2

21

10

-1-1

1-1

-1-1

10

-10

0-1

-1-1

00

-12

01

00

1c0

-22

-12

-1-1

-21

-2-1

01

00

00

-1-1

1-2

-1-1

1-2

00

00

1d0

-1-1

2-2

01

-20

00

0-1

0-1

0-2

-22

-21

-10

00

00

02a

0-2

-1-1

20

2-2

-12

0-1

00

1-1

00

-2-1

-12

0-1

00

02b

0-2

-10

-1-1

12

-21

2-1

00

12

-12

10

01

01

-10

2c0

-20

00

-1-1

20

-10

00

-1-1

1-1

00

1-1

-1-1

0-1

3a0

-2-2

-22

1-2

-2-1

-10

-2-1

0-1

0-1

-1-1

0-1

1-2

-13b

0-2

-21

0-1

00

-22

-1-1

0-1

-11

10

1-1

2-1

03c

0-2

-2-2

11

-10

-21

-1-2

-1-1

00

0-1

0-1

1-2

3d0

-1-1

11

-20

-20

0-1

00

00

0-1

0-1

1-1

4a0

-2-2

-2-1

-10

01

10

20

0-1

1-1

1- 2

04b

0-2

-20

-10

-11

0-1

02

20

1-2

2-1

04c

0-2

00

-20

-1-1

0-1

-1-1

0-2

0-2

0-2

4d0

-10

-2-1

0-1

-1-1

00

-10

-1-1

0-1

5a0

-2-2

-2-1

0-1

10

1-1

00

0-1

05b

0-2

-20

-10

-10

1-1

0-1

-22

-25c

0-2

01

-10

-10

00

-11

-20

5d0

-1-1

0-1

00

0-1

0-1

00

6a0

-2-2

-2-1

0-2

1-1

-1-1

-16b

0-2

-20

0-2

1-1

2-1

06c

0-2

-1-1

20

1-1

0-1

6d0

10

01

10

00

7a0

-2-2

-20

-10

-17b

0-2

-20

00

07c

0-1

10

-1-1

7d0

00

- 10

8a0

-2-2

-28b

0- 2

-28c

0-2

8d0

Fig

10

9 C

ross

-im

pact

mat

rix

(CIM

) of

pai

r-w

ise

com

pari

son

of t

he f

utur

e op

tions

for

all

the

rele

vant

fac

tors

Ass

essm

ent

rang

e minus

2 b

oth

deve

lopm

ents

ca

nnot

occ

ur a

t the

sam

e tim

e minus

1 th

ey c

an o

ccur

but

don

rsquot m

ake

sens

e 0

mut

ual c

oexi

sten

ce +

1 th

ey m

ake

sens

e +

2 m

utua

l sup

port

syn

ergy

(N

ote

for

in

stan

ce o

ptio

n 3a

is in

volv

ed in

the

Fig

10

8a a

nd r

epre

sent

s ldquon

o m

arke

t fai

lure

rdquo)


232

References























A Melkonyan et al

233




















Introduction



236




Background Study



F Wei et al

237



Digitalization



238




15

10

18

15

25

26

13

10

6

6

3

Planned

72

69

46

48

35

19

16

2

6

5

2

Electronic invoice



Tracking

Cloud Computing

Big Data Analytics

Pick by Light

Pick by Voice


Learning software

Block chain

In Use


F Wei et al

239


State of the Art



Predicve analysis

Robots




Rele

vanc

e of

the

tech

nolo

gy co

ncep

ts

Predicvemaintenance



Pick by Vision


Drones

Block chain

Use of wearables


plaorms

Pick by Voice

Pick by Light






Webbasedcommunicaon

plaorms

2D codes


Systems (WMS)




Future growth

Very low Very high

Very

hig

hVe

ry lo

w


Assistance systems

Data analysis

Autonomous systems

IT services

Informaon exchange

Data collecon



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F Wei et al

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Fig

11

4 Te

mpe

ratu

re in

a w

orki

ng e

nvir

onm

ent (

begi

nnin

g fr

om F

ebru

ary

to m

id-A

pril)


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Fig

11

5 R

ecor

ded

hum

idity

in a

wor

kpla

ce (

begi

nnin

g Fe

brua

ry to

mid

-Apr

il)

F Wei et al

247

Fig

11

6 L

umin

ous

flux

in a

fac

tory

bui

ldin

g (b

egin

ning

Feb

ruar

y to

mid

-Apr

il)


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F Wei et al

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Control Tower

Company A


Control Tower

Company B




Real Flow of Goods






Control Tower

Company A


Control Tower

Company B


4PL-service pr

sticicesster




250







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Resource reduction




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21

21

21

31

10

14

12

8

46

41

38

27

44

38

35

24

0 10 20 30 40 50 60












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References



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266

Introduction






T Gruchmann et al

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Case Background






268






T Gruchmann et al

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Scenario Planning


Scenario planning techniques are often used by decision-makers to evaluate their assumptions about the future quantitatively and qualitatively as well as to evaluate them analytically in order to support decision-making (Schoemaker 1995 Bradfield et al 2005 Varum and Melo 2010) According to Malekpour et al (2013) scenarios can be divided into different generations The first generation of scenarios predic-tive scenarios was developed to answer the question of what will happen eg by means of a trend extrapolation The next generation of scenarios is exploratory sce-narios that represent a multitude of possibilities that are plausible in the future The existence of the exploratory scenarios is reasonable since some statessystems can-not be extrapolated flippantly from past values This is where computer-aided mod-eling like EMA is used (Boumlrjeson et al 2006 Miller and Page 2009 Sondeijker 2009 Malekpour et al 2013)



270

Recent Studies








T Gruchmann et al

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Research Design






272






T Gruchmann et al

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Simulation




274

Results








T Gruchmann et al

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T Gruchmann et al

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References










278























T Gruchmann et al

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Nomo Braun






284










N Braun

285








286








N Braun

287










288




References




N Braun








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305

References























306























307
































SCC 159










Index

310


























Index

311























Index

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Index

313

























Index

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Index

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Index

Foreword

Acknowledgements

Contents












References


Background




Sustainable Systems





















Conclusions

Outlook

References



Introduction


Research Question

Research Focus


Fashion E-commerce


Methodology


Societal Trends


Consumer Trends

Sharing Economy

Online Retailing



Online Retailing


Conclusions



Discussion



Discussion



Discussion



Discussion



Discussion



Discussion







Appendix





Block 4 Trends


References


Introduction


Research Questions

Methods

Participants

Instruments

Results

Discussion

Conclusion

References


Introduction



Discussion

Outlook

References




Method

Participants


Results


Target Group

Stage of Change

Ordering Process






Target Group

Stage of Change

Ordering Process






Target Group

Stages of Change



Data Privacy




Target Group


Stages of Change


Implementation




Target Group

Acceptance

Stages of Change


Building Confidence




Target Group


Stages of Change

Implementation





References



Introduction


Research Design

Case Analysis




Discussion


References



Literature Review



Word of Mouth



Research Design


Modeling Process


Problem Analysis






Calibration







Conclusions

References


Introduction




References



Introduction


Global Food Systems

Food Supply Chains


The STEEP Analysis


Results









Conclusion


References


Introduction

Background Study


Digitalization

State of the Art













References


Introduction

Case Background




Scenario Planning

Recent Studies

Research Design



Simulation

Results


References

















References













References

Index

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