Performance Evaluation and Improvement for Sustainable Short Food Supply Chains: A Case Study and Simulation Modeling Approach

Short Food Supply Chains (SFSCs) have been attracting more and more producers and consumers in recent decades. These alternative distribution channels offer more transparence and proximity by eliminating numerous intermediaries and bringing together the two ends of the supply chain. They are typically associated with locality, organic production, less transportation, healthier and fresher products. SFSCs have a potential to contribute to rural development, as well as to the creation of more sustainable and resilient food systems. Nonetheless, these initiatives often lack the necessary resources, such as logistics infrastructure, capital, and business experience. Performance evaluation and improvement, and upscaling of SFSCs are complicated, limiting their benefits for the producers, consumers, and the environment.

The research conducted in this Ph.D. aims at proposing a methodology for evaluating and improving the performance of SFSCs in terms of sustainability. In our research, we also aim at building a bridge between supply chain management field (e.g., SCOR model, simulation modeling, food supply chains literature) and SFSCs research, which is currently lacking in the literature.

First, we developped a better understanding of the issues and challenges faced in these supply chains through literature review and exchanges with several practitioners. Then, we adopted a simulation modeling and scenario analysis approach to discuss the potential outcomes of three improvement strategies. Our simulation model is based on a real case, and enables us to study the improvement opportunities of SFSCs in a context of volatile demand. The performance of the system is measured and analyzed in three dimensions: economic, environmental, and social, with qualitative discussions on their correlations. The framework of indicators proposed is based on a literature review of usual KPIs for Food Supply Chains. We adapted the set of indicators in order to evaluate the performance of the actual organization, and simulate the impact of three optimization possibilities, chosen based on local opportunities. Our results enable us to facilitate decision-making for the organization, by visualizing the impact of each strategic decision on sustainability. Our aim is to validate the feasibility for these initiatives to become a viable and sustainable alternative to conventional food systems.

Keywords: short food supply chain; logistics processes; supply chain modeling; Agent Based Simulation, shirt food supply chance performance evaluation