On Thursday, May 16 and Friday, May 17 2024, the prestigious Austrian Logistics Conference “Logistik Dialog 2024” was held at Vienna Airport. Powered by Food4CE partner ECONSULT Betriebsberatungsges.m.b.H., the event was an important opportunity to meet and exchange ideas and knowledge on logistics issues.
In particular, on Friday, May 17, Tomislav Letnik, PhD University Maribor, presented the logistics challenges among CE region, focusing on Alternative Food Networks and Short Food Supply Chains, during the talk “Commerce Transformation” moderated by Horst Orsolits, MSc, Fachhochschule Technikum Wien.
Tomislav Letnik’s speech focused on the main current and future logistics issues, global supply chain challenges, trends, and strategic and alternative solutions for greater logistics efficiency of AFNs in Europe.
Current and future logistics issues and Global supply chain challenges
The main problems facing the transportation system today, as Tomislav Letnik explained, include congestion, traffic accidents, pollutant emissions, and noise pollution.
Global supply chains, for their part, face challenges, such as economic crises, leading to inflation and rising energy prices; global warming, imposing the challenge of decarbonization; pandemics, and geopolitical uncertainties, such as the recent Panama Canal and Suez crises.
Economically “efficient” transportation systems are typically not resilient to unforeseen incidents. However, to ensure the resilience of transportation systems, it is necessary to ensure flexibility, i.e., rapid adaptation to different situations and needs, and diversity, of services and properties, thus creating effective synergies.
In addition, to ensure greater efficiency of logistical processes, there is a need to reduce costs and delivery times, providing greater control over the supply chain and the quality of products and services that must conform to standards; greater flexibility in adapting to changes in the market; a reduction in risks related to foreign dependence; and, finally, the promotion of the national economy and the creation of new jobs in the country of origin.
The solution: Short Food Supply Chains
In this sense, Short Food Supply Chains (SFSCs) can be an effective solution, since they refer to a direct and simplified system of food production, processing, distribution, and sales that involves a limited number of intermediaries and minimal geographic distances between producers and consumers.
However, SFSCs also face several challenges, including: geographic dispersion, which involves a large number of small producers; volatility related to the seasonal component of products and their production in small quantities; packaging problems, due to the diversity of products and different maintenance requirements; and problems related to transportation, warehouse management, information system, and order and transportation tracking. Finally, significant constraints to cooperation among different supply chains are now noted.
The role of Alternative Food Networks and the goals of the Food4CE project
One concrete response to these issues is represented by the AFNs: a network of partners that includes farmers, consumers, and sometimes intermediaries like local businesses, which collaborate to streamline the production, distribution, and consumption of food. Alternative Food Networks seek to transform food supplies by connecting ethical producers and consumers more directly.
For this reason, FOOD4CE project aims at supporting Alternative Food Networks in their efforts to create sustainable and resilient food supply system by establishing local and transnational hubs for the food and logistics sectors, in which they can exchange good practices and take up innovative technologies.
How Food4CE intends to address the challenges?
To address these challenges, Food4CE will establish 5 local and 1 transnational innovation hub, bringing together actors from different sectors including researchers, business experts, food producers, logistics and transport operators, and policy makers. These hubs will focus on advancing AFNs logistics efficiency through the development of innovative tools and solutions, namely the Knowledge Transfer Platform and the Matchmaking Platform.
The KTP is intended for sharing logistics best practices and solutions, while the MP is intended for creating new B2B logistics solutions and services. The aim of both platforms is to facilitate knowledge transfer and business practice exchange between different actors and regions to further facilitate the creation of a unique mutual support network for AFNs in Central Europe.
In fact, the project measures include:
- unification of packaging through the creation of a shared standard;
- sharing of vehicles and warehouses to ensure greater collaboration;
- optimization of routes;
- greater connectivity of information based on highlighted needs;
- use of new technologies;
- new business models for logistics service providers.
Challenges to be faced and opportunities to be seized
Through the analyses of existing AFNs in the five countries involved – Slovenia, Austria, Hungary, Poland, and Italy – the main challenges and opportunities for AFNs and SFCSs were identified. These include:
- Logistic and supply chain management: managing the supply chain efficiently, especially in terms of distribution and logistics is a considerable challenge that requires adoptable and innovative solutions.
- Collaborative logistics models: encouraging collaboration among various stakeholders can help improve the efficiency and effectiveness of AFNs by sharing resources to reduce cost and reach customers more efficiently, as observed in the case of Slovenia.
- Regulatory and policy support: regions could further improve the development of AFNs by implementing supportive government policies, including grants, incentives and regulations that promote local food production and distribution, as seen in the case of Austria.
- Innovation and technology: investing in innovative technologies, advisors and training can help harness the potential AFNs. This includes improving marketing methods, production techniques and transparency in supply chain, as seen in the case of Hungary.
- Promotion and awareness: increasing consumer awareness on the benefits of supporting AFNs and locally produced food can further drive their development and increase their demand.
Through such approach, a transition to regional production and short supply chains will then be possible, thereby reducing middlemen and increasing the resilience and adaptability of supply chains by ensuring the exchange of logistical knowledge and best practices.
All this will also ensure greater sustainability of the system and a significant reduction in CO2 emissions.
However, in order to achieve the set goals and address the existing challenges, public interventions are an essential element, along with the need to build greater collaboration in order to drive change forward, support innovation, and increase efficiency.