Increased load factor and sustainable logistics - mapping actions and effects from a transport buyer's perspective
Paper in proceedings, 2012
Purpose of this paper
To increase the load factor is a key element in order to reduce the environmental impact and improve the profitability from transport operations. However, in what way certain actions interact when improving load factor and how this can be measured is scarcely analyzed in literature. The aim of this article is to investigate in what way logistics actions facilitate an increased load factor and how this can be measured in different parts of a transport buyer’s freight handling system. Current and possible actions and their effects on load factor are mapped and categorized.
A case study has been performed, studying the outgoing goods flow from the central warehouse of a large retailer in Sweden. A framework, based on empirical data in the case study, is presented.
A number of actions that increase the load factor in the transport buyer’s system have been identified and categorized in the framework according to three load factor indicators; packaging efficiency, loading efficiency and booking efficiency. It is important to combine different measures in order to capture all dimensions of load factor. Other logistical actions, better planned orders and flexible delivery dates, affect lead time and show potential in improving load factor even more.
The mapping of actions and their relations shown in this paper are contributing to a more holistic view of the concept of load factor having a clearer connection to actors’ environment and organizations.