Scaling a “Local to Local” Solution: Supply Chain Analysis for Delivering Local Fresh Produce to Local Grocery Stores
Team: Mike Maher, Sebastian Naskaris, Rego Pudakadan, Keith Smith/Spring 2014
The “local to local” distribution model uses the food hubs’ comparative advantage in aggregating source-identified product while taking advantage of centralized distributional efficiencies in the grocery industry. The cost-to-serve model generated for this project was used by a food hub to calculate the relative costs of various distributional options to reach a set of grocery stores. Results for this example indicated that if the hub expands to more than six stores, it should use a combination crossdock and backhaul arrangement with the regional distribution center to serve its customer stores.