Evaluating the Benefits of Collaborative Distribution with Supply Chain Simulation

Abstract

Due to increasing volumes, the distribution of goods places a heavy burden on the urban infrastructure. In theory, there are various approaches that tackle these challenges but their impact is difficult to quantify. Supply chain simulation enables the assessment of urban logistics measures and helps decision makers to implement these into real application. In this chapter, we demonstrate how infrastructure-sharing practices (i.e. Urban Consolidation Centres) are modelled using discrete event supply chain simulation. Two business cases are examined with focus on third party logistics providers (3PL) and retailers in the Athens Metropolitan Area (Greece). The business cases are evaluated based on real data from 3PLs and retailers located in and around Athens. Both cases are assessed in terms of cost-efficiency and environmental impact.