Data-driven sustainable supply chain through centralized logistics network : Case study in a Finnish pharmaceutical distributor company

Abstract

Logistics processes are in the core of transportation, providing a structure for distributing products on an international scale. This research was conducted as a commissioned research for a Finnish pharmaceutical wholesaler. In wholesale, logistics process is an important part of the core competencies and optimizing this process can provide significant competitive advantages. The objective of this research study was to investigate the causes of supply chain fragmentations and the ways to mitigate these effects. The central concepts are used as sustainable logistics process that minimizes carbon dioxide (CO2) emission, offers supply chain visibility, lean distribution channel, offers discrete event simulation and supply chain modelling. The empirical research employs a mixed research method consisting of both qualitative and quantitative data. Quantitative data is collected from the inbound deliveries of a Finnish pharmaceutical case company and qualitative data is gathered from a questionnaire survey within the case company. This study investigated the current inbound processes of the case company and compared to the developed model of the centralized pipeline system. The objective of this study was to investigate how a centralized logistic system minimizes travel cost to support environmental damage and can provide benefits to the inbound process of the case company. The research results indicated that a centralized pipeline system can provide improved information flow, higher freight capacity and reduced CO2 emissions to support environmental friendly and sustainable supply chain and logistics processes.