Green point-to-point logistics at Kalasin: A case study of rice transportation

Abstract

More than half of Thailand’s rice plantations are located in Kalasin due to its year-round access to irrigation systems that draw from Lam Pao Dam. The process of rice distribution significantly affects supply chain costs and atmospheric emissions. Generally, transportation decisions are based on truck drivers’ experiences which can impact the efficiency of transport. As a result, this study aims to examine the effect that adopting green logistics practices has on the planning of delivery routes that help reduce transportation costs and protect the environment. This study provides a case analysis of rice transportation between a local mill in Kalasin and six main retailers to compare current practices by means of two-step problem solving. Following the mathematical model, the routing problem is solved using Excel Solver by considering truck capacity and customer demand. Afterwards, the scheduling problem is solved using an Excel spreadsheet by considering truck loads and distance between points. When transport routes were determined, the mill reduced fuel costs by 10.54% per delivery cycle, and when the schedule of delivery was established, the mill reduced greenhouse gas emissions by 24.77% per cycle. The reduction in distance travelled and level of pollution indicates that implementing green practices in logistics management is beneficial. This study identifies the need to consider the quantity of load between points on a trip to measure and lower environmental impacts. For road transport, Kalasin province can increase its reputation and be more competitive in the market if rice mills apply information technology to determine which delivery routes contribute to lower total costs and which delivery schedules contribute to lowering emissions.