Intelligent Agrifood Chains and Networks BBoouurrllaakkiiss__ffffiirrss..iinndddd ii 22//22//22001111 1100::3322::2299 AAMM Intelligent Agrifood Chains and Networks Edited by Michael Bourlakis Kent Business School University of Kent Canterbury Kent UK Ilias Vlachos Department of Agricultural Economics & Rural Development Agricultural University of Athens Athens Greece Vasileios Zeimpekis Department of Financial & Management Engineering University of the Aegean Chios Greece A John Wiley & Sons, Ltd., Publication BBoouurrllaakkiiss__ffffiirrss..iinndddd iiiiii 22//22//22001111 1100::3322::2299 AAMM This edition fi rst published 2011 © 2011 by Blackwell Publishing Ltd. Blackwell Publishing was acquired by John Wiley & Sons in February 2007. Blackwell’s publishing program has been merged with Wiley’s global Scientifi c, Technical and Medical business to form Wiley-Blackwell. Registered Offi ce John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK Editorial Offi ces 9600 Garsington Road, Oxford, OX4 2DQ, UK The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK 2121 State Avenue, Ames, Iowa 50014-8300, USA For details of our global editorial offi ces, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com/wiley-blackwell. The right of the authors to be identifi ed as the authors of this work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Library of Congress Cataloging-in-Publication Data Intelligent agrifood chains and networks / edited by Michael Bourlakis, Ilias P. Vlachos, Vasileios Zeimpekis. p. cm. Includes bibliographical references and index. ISBN 978-1-4051-8299-7 1. Food–Storage. 2. Food–Transportation. 3. Business logistics. 4. Agricultural industries. I. Bourlakis, Michael. II. Vlachos, Ilias P. III. Zeimpekis, Vasileios. TP373.3.I577 2011 664.0068′7–dc22 2010041146 A catalogue record for this book is available from the British Library. This book is published in the following electronic formats: ePDF 9781444339871; Wiley Online Library 9781444339895; ePub 9781444339888 Set in 10/12pt Times by SPi Publisher Services, Pondicherry, India 1 2011 BBoouurrllaakkiiss__ffffiirrss..iinndddd iivv 22//22//22001111 1100::3322::2299 AAMM Contents Foreword xii Contributors xiii 1 Introduction 1 Michael Bourlakis, Ilias Vlachos and Vasileios Zeimpekis 1.1 Introduction 1 1.2 Scope and structure of this book 3 1.3 Conclusions 6 References 6 2 Food and Drink Manufacturing and the Role of ICT 7 Fintan Clear 2.1 Introduction 7 2.2 Industry structure 8 2.3 Food consumer trends and food legislation 11 2.4 Information systems and food manufacturing 14 2.5 Food manufacturing and supply chains 17 2.6 Conclusion 21 References 23 3 Retail Technologies in the Agrifood Chain 27 Michael Bourlakis 3.1 Introduction 27 3.2 Food retail logistics 27 3.3 Information technology in food retail logistics 32 3.3.1 Bar codes 33 3.3.2 Electronic data interchange 33 3.3.3 Data processing and information 35 3.4 Conclusions 36 References 36 4 Basic Principles for Effective Warehousing and Distribution of Perishable Goods in the Urban Environment: Current Status, Advanced Technologies and Future Trends 39 Nikolaos Stragas and Vasileios Zeimpekis 4.1 Introduction 39 BBoouurrllaakkiiss__ffttoocc..iinndddd vv 22//22//22001111 1100::3322::1188 AAMM vi Contents 4.2 The nature of perishable foods 40 4.2.1 Current needs and inefficiencies 40 4.2.2 Official authorities and legislation for perishable foods 41 4.3 Warehousing operations 42 4.3.1 The role of warehousing 42 4.3.2 Types of warehouse facility 43 4.3.3 Warehouse operations 44 4.3.4 Storage of perishable goods 45 4.3.5 Storage inefficiencies of perishable foods 47 4.4 Distribution process 49 4.4.1 Goods distribution in urban environments 49 4.4.2 Types of urban freight distribution 50 4.4.3 Routing factors that affect urban freight distributions 51 4.4.4 Dynamic incidents in urban freight distributions 53 4.4.5 Current status in urban distribution of perishable goods 53 4.4.6 Distribution inefficiencies of perishable foods 56 4.5 New technologies in warehousing and distribution 57 4.5.1 Technologies for perishable food storage 57 4.5.2 Technologies for distribution of perishable food 59 4.6 Conclusions and future trends 63 References 64 5 Emerging Footprint Technologies in Agriculture, from Field to Farm Gate 67 Spyros Fountas, Thomas Bartzanas and Dionysis Bochtis 5.1 Introduction 67 5.2 Precision agriculture 67 5.3 Robotics in agriculture 69 5.4 Fleet management 70 5.4.1 Framework 70 5.4.2 Algorithmic approaches 71 5.5 ICT technologies in agriculture 76 5.5.1 ISOBUS system 76 5.5.2 Traceability systems based on radio-frequency identification technology 77 5.5.3 Wireless sensor networks 81 References 83 6 Telematics for Efficient Transportation and Distribution of Agrifood Products 87 Charalambos A. Marentakis 6.1 Introduction 87 6.2 Technological prerequisites for telematics 88 6.2.1 Wireless communications 88 6.2.2 Positioning systems 88 BBoouurrllaakkiiss__ffttoocc..iinndddd vvii 22//22//22001111 1100::3322::1188 AAMM Contents vii 6.2.3 Geographical information systems 93 6.3 Application of telematics in freight transport and distribution 94 6.4 Investing in value of information 99 6.5 Distribution of agrifood products: current status and needs 101 6.6 The use of telematics in distribution of agrifood products 103 6.7 Potential for advanced and value-adding applications 105 6.7.1 Vehicle routing and monitoring 105 6.7.2 Safety 106 6.7.3 Value-added applications 106 References 107 7 RFID: An Emerging Paradigm for the Agrifood Supply Chain 109 Louis A. Lefebvre, Linda Castro and Élisabeth Lefebvre 7.1 Introduction 109 7.2 RFID technology 110 7.2.1 Overview of RFID technology 110 7.2.2 Current drawbacks to RFID adoption 113 7.3 RFID potential in the agrifood supply chain 115 7.3.1 RFID drivers in the agrifood industry 115 7.3.2 RFID opportunities in the agrifood supply chain 116 7.4 RFID and traceability processes in the agrifood supply chain 117 7.4.1 Tracking and tracing 117 7.4.2 Food-source tracking and animal-health monitoring 118 7.5 RFID and quality control management processes 119 7.5.1 The cold chain 119 7.5.2 Product recalls 120 7.6 RFID and manufacturing processes 120 7.6.1 Work in progress 120 7.7 RFID and warehouse and distribution processes 121 7.7.1 Warehouse processes 121 7.7.2 Inventory processes 122 7.8 RFID and asset management processes 122 7.8.1 Mobile asset management 122 7.8.2 In-transit visibility 123 7.9 RFID and point of sales processes 124 7.9.1 Automated check-out 124 7.9.2 Smart shelves 124 7.9.3 Marketing improvement 124 7.10 Conclusions 125 References 125 8 Food Quality and Safety 131 Ilias Vlachos 8.1 Introduction 131 8.2 Food supply-chain management 132 BBoouurrllaakkiiss__ffttoocc..iinndddd vviiii 22//22//22001111 1100::3322::1188 AAMM viii Contents 8.2.1 Food safety 132 8.2.2 Quality assurance schemes 133 8.2.3 Food safety in supply chains 133 8.3 Information systems 135 8.3.1 Information systems and foodborne diseases 136 8.3.2 Forecasting food safety 138 8.3.3 Decision-support systems for food safety management 139 8.4 Case studies 140 8.4.1 Methodology 140 8.4.2 Food company profiles 140 8.4.3 Results 142 8.5 Discussion 146 References 146 9 Traceability in Agrifood Chains 151 Ulla Lehtinen 9.1 Introduction 151 9.2 Traceability and food safety legislation 153 9.3 Traceability systems 155 9.4 Traceability techniques 159 9.4.1 Global Trade Item Numbering and other barcode systems used in traceability 160 9.4.2 Radio frequency identification 162 9.4.3 New technologies 163 References 165 10 E-business Applications in the European Food and Beverages Industry: Evidence from the Wine Sector 167 Michael Bourlakis and Ilias Vlachos 10.1 Introduction 167 10.2 E-business applications: a typology 167 10.3 E-business applications for agriculture and the food industry 169 10.4 The role and use of ICT in the European food and beverages sector 171 10.4.1 Online selling 171 10.4.2 Impact of online selling on companies 171 10.4.3 E-procurement 172 10.5 Precision vine growing with satellite imagery 172 10.5.1 World wine production and consumption 172 10.5.2 World wine marketing and distribution 173 10.5.3 Use of satellite imagery in winemaking 173 10.5.4 The application – oenoview 173 10.5.5 The profile of the companies involved 174 10.5.6 Operations management 175 10.6 Conclusions 177 References 178 BBoouurrllaakkiiss__ffttoocc..iinndddd vviiiiii 22//22//22001111 1100::3322::1188 AAMM Contents ix 11 The Impact of Information and Communication Technologies on the Organisational Performance of Microenterprises: Evidence from Greece 179 Ilias Vlachos and Panayiotis Chondros 11.1 Introduction 179 11.2 Literature 180 11.2.1 ICT compatibility with human resources practices, management, education, training, trained personnel and skills 180 11.2.2 The impact of ICT on SME performance 181 11.2.3 Perceived safety, trust and online transactions 182 11.3 Methodology 183 11.3.1 ‘Go-Online’ programme 183 11.3.2 The sampling procedure and sample 183 11.4 Results 183 11.4.1 Demographic variables 183 11.4.2 ICT influence on business performance variables 185 11.4.3 The effect of ICT applications on business performance 185 11.4.4 Barriers to ICT adoption 185 11.4.5 Factor analysis 185 11.4.6 Univariate analysis 188 11.4.7 Hierarchical regression 188 11.5 Discussion 189 11.6 Managerial implications 191 11.7 Limitations/future research 191 11.8 Conclusion 191 Acknowledgements 192 References 192 12 Warehouse Technologies in Retail Operations: the Case of Voice Picking 195 Aristides Matopoulos 12.1 Introduction 195 12.2 Retail warehouse operations 195 12.2.1 An overview of warehouse operations 195 12.2.2 Warehouse order picking and the emergence of voice picking 196 12.3 The AB Vassilopoulos case study 198 12.3.1 Grocery retailing in Greece 198 12.3.2 Company background 199 12.3.3 A view of the company’s warehousing and distribution operations 201 12.3.4 Analysis of AB’s warehouse operations 202 12.3.5 Insights from the implementation of RF picking and voice picking 203 12.4 Conclusions 205 Acknowledgements 206 References 206 13 Leveraging RFID-enabled Traceability for the Food Industry: a Case Study 209 Angeliki Karagiannaki and Katerina Pramatari 13.1 Introduction 209 BBoouurrllaakkiiss__ffttoocc..iinndddd iixx 22//22//22001111 1100::3322::1188 AAMM x Contents 13.2 Background 210 13.2.1 RFID in supply-chain management 210 13.2.2 Traceability 211 13.2.3 RFID-enabled traceability 213 13.3 The context 214 13.3.1 The case study: a frozen food company 214 13.3.2 The warehouse and its operations 214 13.4 Alternative RFID implementations 216 13.4.1 RFID decisions 216 13.4.2 RFID improvement opportunities 217 13.5 The selected RFID project 218 13.5.1 Description 218 13.5.2 The functionality of the proposed traceability system 220 13.6 The pilot implementation 220 13.6.1 Evaluating the RFID-enabled traceability system 220 13.6.2 Results 222 13.7 Conclusions 224 Acknowledgement 224 References 225 14 Intelligent Agrifood Chains and Networks: Current Status, Future Trends and Real-life Cases from Japan 227 Mihály Vörös and Masahiko Gemma 14.1 Introduction 227 14.2 General concepts and roles of the local food systems for improvement of quality of life 228 14.3 Development of local food systems in Japan 231 14.4 Examples of local food systems in Japan 235 14.4.1 ‘Budoubatake’ farmers’ market (privately-owned company) 238 14.4.2 ‘Rokko Blessing’ farmers’ market (JA-managed company) 241 14.4.3 ‘Michinoeki’ farmers’ market in Ukiha City (mixed-ownership company) 242 14.5 Consumer support for local markets 244 14.6 Conclusions 245 References 246 15 The Use of Telematics in the Daily Distribution of Perishable Goods: The Case of NIKAS SA 249 Vasileios Zeimpekis 15.1 Introduction 249 15.2 Background 250 15.2.1 Real-time fleet-management systems 250 15.2.2 Travel time prediction for fleet-management systems 252 15.3 A real-time fleet-management system for dynamic incident handling 254 15.3.1 Requirements elicitation process 254 15.3.2 System architecture 255 BBoouurrllaakkiiss__ffttoocc..iinndddd xx 22//22//22001111 1100::3322::1188 AAMM Contents xi 15.4 Simulation testing 257 15.5 Real-life testing 259 15.5.1 Profile of the company 259 15.5.2 System operation and test case scenarios 260 15.6 Conclusions 262 Acknowledgments 264 References 264 16 RFID-enabled Visibility in a Dairy Distribution Network 267 Daniel Hellström and Henrik Pålsson 16.1 Introduction 267 16.1.1 Problems with traditional roll containers 268 16.1.2 Introduction of the new roll container 269 16.1.3 The core problem when introducing a new roll container 269 16.2 Achieving visibility 269 16.2.1 System setup – useful data to be collected, and control mechanisms 270 16.2.2 Identification technology solution 271 16.3 Jönköping dairy implementation 272 16.3.1 Implementation outcome 272 16.3.2 Expanding the implementation to include four DCs 273 16.4 Cost-benefit analysis with ROI calculations and sensitivity analysis 273 16.5 Lessons learned 275 16.5.1 Implementation process 276 16.5.2 Indirect benefits from having visibility 277 16.5.3 Technology insights 278 16.6 Concluding discussion 279 References 280 17 Conclusions 281 Michael Bourlakis, Ilias Vlachos and Vasileios Zeimpekis 17.1 Evolution of the food chain 281 17.2 Technologies in the food chain, key benefits and implications 283 17.2.1 Implications for food managers 285 17.2.2 Implications for large food companies and SMEs 286 17.3 Concluding remarks 286 References 287 Index 289 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