FROM CART TO LAYERED ARCHITECTURAL TRANSSHIPMENT MODEL SUPPORTING SMALL AND MEDIUM ENTERPRISES FOR ROAD FREIGHT LOGISTICS

Abstract

This study proposes a layered architecture of a transshipment model for small and medium enterprises (SME) that supports road freight logistics using rice farmers in Thailand as a case study. The rationale is three folds. First, road freight logistics transportation usually does not apply to SME. Second, existing supply chain logistics models are not appealing to SME in that SME do not have abundant resources to exploit the fullest extent of redeeming features of the models. Third, road freight logistics and transshipment are often incorporated as an integral service operation of a distribution centre to transport goods items from source to destination, which most SME cannot afford the entire service charge. The notion of layering is to make each layer transparent to one another, covering specific transshipment activities that do not overlap with adjacent layers yet keep their operating characteristics closely related. The case study of Thai rice farmers can thus operate and adjust to fit their working scenarios. Contributions of the proposed model are flexible and resilient operations that SME can benefit at less investment but more options to fall back on. Future work should emphasise on transshipment routing research and integration of the proposed model into distribution centre operations management.