Cross-actor pallet exchange platform for collaboration in circular supply chains

Abstract

Purpose

Pallets ensure efficient processes in logistics and are exchanged between the different actors, while passing through various supply chains several times. In common practice, the exchange is often not directly carried out on site, e.g. due to a lack of time, so that additional trips and new pallet purchases become necessary. To reduce these negative effects, a digital cross-actor platform is designed, and its potential is investigated.

Design/methodology/approach

The authors developed an agent-based simulation model with mathematical optimization. Using experience from practitioners, as well as real-world datasets which were analyzed, the authors ensure a realistic model of the pallet exchange system in Germany.

Findings

The authors demonstrated that, with the help of this platform concept, transport routes can be shortened, debts and receivables can partly be equaled out through balancing, and the quantity of pallets in the overall system can be reduced.

Research limitations/implications

The results are not directly transferable to pallet exchange systems in other countries without considering their general settings.

Practical implications

Digital networking increases the efficiency of the existing pallet exchange system. Even small collaborations prove to be reasonable.

Originality/value

The authors developed new mechanisms for a digital pallet exchange platform, which takes on the role of a central planning instance, in addition to recording pallet receivables and debts. It enables the planning of the commodity flow of empty pallets, which are transported by the forwarders on regular routes, and distributed between the platform participants.

Citation

Lehner, R. and Elbert, R. (2023), "Cross-actor pallet exchange platform for collaboration in circular supply chains", The International Journal of Logistics Management, Vol. 34 No. 3, pp. 772-799. https://doi.org/10.1108/IJLM-03-2022-0139