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Executive Summary

The warehouse of the future represents a paradigm shift in warehouse design and operation. It is the industry’s response to the burgeoning growth of e-commerce, worldwide supply chain disruptions including warehouse labor shortages in developed markets, and increasing awareness of the significant volume of greenhouse gas (GHG) emissions emitted by warehouses.

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With the rapid growth of the e-commerce and the increasing awareness of environmental protection, retailers are facing new challenges to make product delivery fast and green while maintaining their profit margin. A balance between service level and cost to serve is required on both strategic and operational level. Transactional transportation...
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In this paper, we analyze the route efficiency trade-offs that emerge from combining first-mile pickup and last-mile delivery operations in an urban distribution system. We build on the extant literature on continuum approximation of optimal route distances and propose adjustment factors that account for the effects of integrated pickup and...
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The success of e-commerce continues to push the bounds of delivery services as customers expect near instant fulfillment at little additional cost. This demand for delivery performance and operational cost efficiency has led to the exploration of the last-mile delivery problem using creative multimodal delivery systems. One promising system consists...
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Due to the use of petroleum-based fuel, the transportation sector is one of the two principal contributors to greenhouse gas emissions and its contributions are expected to double by 2050. Freight sector contributes to around 30% of all transport related CO 2 emissions. Since different type of vehicles exhibit different...
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Innovation Strategies: Upcycling can take sustainable supply chains beyond recycling The industry can improve its environmental performance by increasing the volume of product it recycles. But there is another, less well-known strategy available that is attracting attention: upcycling.
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With the increasingly competitive landscape of e-commerce and omni-channel delivery execution, the last mile has emerged as a critical source of opportunity for cost efficiency. Unmanned aerial vehicles (UAVs) have historically been utilized for military applications, but they are quickly gaining traction as a viable option for driving improvements in...
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A hyper-connected network of logistics clusters could play a key role in achieving the European Union’s goal of creating a sustainable, more efficient freight transportation system. An EU-backed research initiative called Clusters 2.0 is laying the groundwork for such a network by developing ways to link freight hubs via the...
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Brazil’s largest online retail platform, B2W Companhia Digital, is implementing a reengineered network design, based on a model developed in collaboration with the MIT Center for Transportation & Logistics (MIT CTL). For the first time, the company is using a network optimization model to assess its operational footprint and provide...
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In manufacturing companies, production strategies prioritize maximizing line efficiency which favors large lot sizes and few setups. On the other hand, logistics strategies prioritize minimizing inventory costs which favors smaller lot sizes and more setups. This thesis provides a new mixed integer linear model formulation that optimizes lot sizes such...
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Substantial investments in supply chain resilience have enabled companies to vastly improve their capacity for bouncing back after a disruption. But the digitization of supply chains is introducing new demands on company operations that require a different approach to building supply chain resilience. With the benefit of digital technologies, companies...
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Las inversiones considerables en resiliencia de la cadena de suministro han permitido a las empresas mejorar notablemente su capacidad para recuperarse tras una alteración. Pero la digitalización de las cadenas de suministro plantea nuevas exigencias a las operaciones empresariales que requieren un enfoque distinto para generar resiliencia en la cadena...
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Extending payment terms to 120 days or more frees up working capital for big companies, but it can also increase the financial stress on suppliers and ultimately lead to increased product costs. The tactic has attracted much criticism, but research underway at the Zaragoza Logistics Center (ZLC), Zaragoza, Spain, shows...
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La extensión de los plazos de pago a 120 días o más ayuda a liberar el activo circulante ( working capital en inglés) a las grandes empresas, pero también puede aumentar la tensión financiera de los proveedores y en última instancia conducir al aumento del coste del producto. Aunque la...
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Ecuador has launched a national initiative to develop an integrated strategy for improving the efficiency and sustainability of freight and passenger flows in large urban centers. The Center for Latin-American Logistics Innovation (CLI) in Bogotá, Colombia, is coordinating one of the projects in collaboration with several institutions including Polytechnic University...
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Ecuador ha puesto en marcha una iniciativa a nivel nacional con el fin de desarrollar una estrategia integrada de mejora en la eficiencia y sostenibilidad de los flujos de mercancías y pasajeros en los grandes núcleos urbanos. El Centro Latinoamericano de Innovación en Logística (CLI) de Bogotá, Colombia, coordina uno...
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How innovation is reshaping freight transportation, the evolution of omni-channel supply chains, and the challenges of adopting financial best practices, are topics that concern today’s supply chain professionals – and they will be addressed in three upcoming MIT CTL events on the MIT campus. The Innovations in Transportation: Impact of...
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El modo en que la innovación está redefiniendo el transporte de mercancías, la evolución de las cadenas omni-canal de suministro y los retos de adoptar buenas prácticas financieras, son asuntos que hoy en día preocupan a los profesionales de las cadenas de suministro – y se van a abordar en...
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There is widespread poverty in Colombia yet the country discards 10 million tons of food a year according to estimates released by the government this March. ABACO, a national network of food banks that serves the needy, and the Center for Latin-American Logistics Innovation (CLI), have teamed up to reduce...
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Aunque la pobreza en Colombia es generalizada, el país desecha 10 millones de toneladas de comida al año según las estimaciones que el gobierno publicó el pasado mes de marzo. ABACO, una red nacional de bancos de alimentos que presta servicios a los más necesitados, y el Centro Latinoamericano de...
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Supply Chain Frontiers issue n.º 59. Lea todos artículos en este asunto El Instituto Tecnológico de Massachusetts (MIT, por sus siglas en inglés) abre nuevas vías para la formación online y másteres profesionales al introducir el título de MicroMaster online y una nueva ruta para conseguir el título de máster...
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Supply Chain Frontiers issue n.º 57. Lea todos artículos en este asunto. El Dr. David Gonsalvez será nombrado Rector del Instituto para la Innovación de las cadenas de Suministro de Malasia (MISI) el 1 de Julio de 2015. Sucederá al Dr. Mahender Singh, que el 30 de junio de 2015...
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Supply Chain Frontiers issue n.º 57. Lea todos artículos en este asunto. Muchos ejecutivos de cadenas de suministro creen en y esperan disponer de una cuota de cargas de camión (CC) única generalmente aceptada para cualquier ruta. Se conoce habitualmente con el nombre de cuota de mercado para una ruta...
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Supply Chain Frontiers issue #57 Dr. David Gonsalvez will become Rector of the Malaysia Institute for Supply Chain Innovation (MISI) on July 1st, 2015. He will succeed Dr. Mahender Singh, who is stepping down at MISI CEO and Rector on June 30, 2015. Gonsalvez was previously Professor of Supply Chain...
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Supply Chain Frontiers issue #57 Many supply chain executives believe in, and hope for, a single generally accepted truckload (TL) rate for any given lane. This is typically referred to as the market rate for a lane, and is found by taking the average or median of a sample of...