Kohn Huge-Brodin 2008 Centralised distribution systems and the environment Flashcards
What is a centralised distribution system?
A system where goods are stored and distributed from a few central warehouses instead of multiple regional warehouses, leading to longer transport distances but potentially better efficiency.
How does centralisation typically affect transport emissions?
It increases transport distances (measured in tonne-kilometres), but can reduce overall emissions if combined with strategic improvements like consolidation and intermodal transport.
What are the three main environmental benefits of centralised distribution?
Freight consolidation – Fewer, fuller shipments reduce fuel use per unit.
Mode shift – More reliance on rail or sea transport, which are less polluting than road transport.
Fewer emergency deliveries – Centralised warehouses can store more products, reducing the need for urgent, high-emission transport.
What is freight consolidation, and why is it beneficial?
Freight consolidation groups shipments into larger, more efficient loads, reducing the number of trips and cutting fuel consumption.
Example: Instead of shipping half-full trucks daily, a company ships fully loaded trucks every two days.
How can transport mode changes improve environmental impact in a centralised system?
Centralisation enables greater use of rail and sea transport, which produce fewer emissions per tonne-kilometre than road transport.
Example: A company shifts freight from trucks to rail for long-haul routes, reducing CO₂ emissions.
How does reducing emergency deliveries help the environment?
Emergency deliveries often use fast but high-emission transport (like air freight). A central warehouse can stock more items, reducing the need for such shipments.
What are the pros- and cons of centralisation in logistics?
Pros: Lower costs, better stock availability, reduced emissions (if optimized).
Cons: Longer lead times, higher transport distances, potential service delays.
Why do companies switch to centralised distribution?
To reduce costs, improve service reliability, and streamline logistics, while also enabling environmental improvements.
What role does technology play in making centralised logistics more sustainable?
Advanced route planning, real-time tracking, and AI-driven optimization help minimize unnecessary transport and improve efficiency.
