TCFM - Logistics and Supply Chain

To reduce freight costs and enhance supply chain stability, Electric Vehicle Manufacturers (EVMs) pursuing long-term export strategies are now actively acquiring their own shipping fleets. This enables self-sufficiency and additional profit by offering transport services to competing EVMs. However, capacity rental presents challenges for EVMs, including higher operational costs and potential benefits for competitors. To address this, we propose a three-stage sequential move model to analyze the interplay between capacity rental and end-market pricing for vertically integrated EVMs (with fleets) and pure EVMs (using third-party transport providers). The deterministic model examines interactions between two EVMs and identifies conditions for win-win outcomes. An extension to multiple EVMs under uncertainty explores equilibrium conditions in stochastic settings. Numerical examples, focusing on EV exports from China to Europe, demonstrate three equilibrium states: full competition, full cooperation, and coopetition. This study provides insights into capacity rental decision-making and a framework for analyzing coopetition dynamics in vertically integrated industries, with broader implications for resource sharing and pricing strategies in asymmetric operational settings.

In China-Europe retailing supply chains, certain early movers have started to adopt a new solution characterized by upstream store-level consolidation, in which cargo is consolidated at the origin country based on the cargo-flows destined for each retailing point in order to bypass the buyer's distribution centre in the destination country and deliver cargo to stores directly through a nearby seaport. This solution may facilitate benefits in terms of cost-savings and better due date performance than the traditional solutions where sea containers are stuffed at the location of the manufacturer in China for full container load shipments, or are commercially consolidated close to the port of loading for less than container load shipments. After the international sea leg in these traditional solutions, de-/reconsolidation for onward movement to the final destination is typically conducted at consolidation centres in the destination countries. To evaluate the potential attractiveness of these new solutions one needs to address important factors, such as financial performance, due date performance and adaptability from a retailer perspective. This paper aims to propose a cost model framework which facilitates decision-making related to such alternative supply chain solutions. These models developed in this paper consider the logistics cost, capital binding cost of in-transit inventory and the value of transport time variability. The models are applied to the new solution and the traditional solutions for comparative analysis. In addition, a set of sensitivity analyses are conducted based on five selected factors to identify the performance of the studied solutions under various scenarios. Our findings reveal that the new solution has the potential to be a perfect complement to the traditional solutions under suitable occasions.

In response to increasing disruptions, Fast-Moving Consumer Goods (FMCG) supply chains must shift from cost efficiency to integrating resilience to maintain competitiveness and sustainable growth. Despite the critical importance of resilience investments in the FMCG sector, current research provides limited models to guide investment decision-making. This paper addresses this gap by introducing a net present value (NPV)-based resilience indicator that integrates FMCG performance metrics. The mixed integer non-linear programming models are developed to estimate resilience cash flow in a two-echelon, multi-product FMCG supply chain. The models employ process flexibility as an investment strategy. Numerical experiments reveal investing in resilience strategies can yield up to a 32% increase in cash flow, highlighting the importance of prioritizing strategically significant products as a potential direction for planning. Moreover, enhancing production capacity emerges as a critical strategy for maximizing resilience in the face of disruptions. These findings provide critical decision-making insights for FMCG supply chain managers for resilience investments.

The Maritime Logistics Hub function is a critical infrastructure affecting the EU's strategic autonomy. This paper unravels the Maritime Logistics Hub function and outlines a framework to assess the risks associated with the loss of strategic autonomy to certain third countries. China was used as a case study. Based on desk research, we analyzed policy instruments targeting foreign engagement and FDI screening in the Maritime Logistics Hub function by the EU and eight EU Member States. In addition, extensive interviews and consultation sessions were held with experts, policy makers and industry representatives from eight Member States, as well as with DG Move. Using the framework allowed us to prioritise risk levels with regard to strategic autonomy of the Maritime Logistics Hub function. In particular, Software for 'port and maritime operations and infrastructures' and for 'hinterland operations and infrastructures' are at high risk of disruption.