A simulation strategy to optimize the design of internet enabled logistics services

The emergence of advanced communication technology has created opportunities to improve transportation in supply chains across the globe. In this paper the main contributors to inefficiencies in present road transportation chains are identified. The paper goes on to describe approaches taken by stakeholders to improve their operational efficiency. A simulation based approach to investigating the impact of any change in the operations along trade corridors is proposed. This firstly includes the use of expanded datasets for better visibility and secondly, improved operational procedures aimed at exploiting the data via an internet enabled logistics services platform. A multi-agent approach for modeling the supply chain is suggested. The paper also identifies behavioural aspects that can be investigated based on a simulation model. Possible outcomes of such a simulation study and benefits of the resulting improvement in logistics are also presented. It is hoped that the gains demonstrated will motivate practical implementation of the conclusions drawn from the study.