GINNOVA Research Group

Barcelona, march 2010

Logistics Management in the Agroindustry Value Chain:

An Exploratory Study of the Cotton-Textile-Clothing Chain in the Tolima Region, Colombia

Nelson Javier Tovar Perilla Helga Patricia Bermeo Andrade

Andrés Alberto García León

BALAS Annual Conference

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Content

1. General References

2. Methodological Issues

3. Results Analysis

4. Conclusions and Future Research

2

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1. GENERAL REFERENCES

3

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• International commerce grows

• Structures and distribution models

• Diversity and quantity of products

• Freight and distribution services

• Logistic services

• Suppliers integration

• Reduce cycle times

• Information and Communication Technologies (ICT) integration

• Consolidation processes and intermodal freight

• The importance of logistic costs

Tesler, J., 2007

4

Some global changes linked to Logistics

References Methodology Results Conclusions

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Logística

Andina WEAK

LOGISTICS

POTENTIAL

Consumption Costs

Logistic Infrastructure

Freight Infrastructure Logistic

Base

Infrastructure

Of Support

Legal Institutional

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Logistics Restrictions in Latin American Countries

Tesler, J., 2007 & Pérez, J., 2006

References Methodology Results Conclusions

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Low technological development level

High agricultural tradition

Strategic geographical location

Public Infraestructue

Logistic Activities Productive

Sector

Agricultural chains

Political Decisions

Science and Technology

(R&D)

Challenges and Opportunities

Information Need

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Regional Reality

References Methodology Results Conclusions

Modern Management

Tolima region

COLOMBIA

Tolima region

Ibagué

Caribean Coast

Pa

cif

ic C

oa

st

Ecuador

Perú

Brasil

Venezuela

Panamá

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2. METHODOLOGICAL ISSUES

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About the study

• Focus: Deductive

• Nature: Quantitative – Qualitative

• Type: Exploratory – Descriptive

• Study object: Cotton-Textile-Clothing (C-T-C)

About the information

• Who? Representative companies of C-T-C chain

• How? Surveys and Interview

• Why? General information on logistic activities, on the bases of SCOR Model (SCC).

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Methodology

References Methodology Results Conclusions

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SCOR Model

References Methodology Results Conclusions

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3. RESULTS ANALYSIS

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Logistics Framework of the C-T-C Value Chain

Problema Referentes Metodología Resultados Conclusiones

HerbicidesFungicidesInsecticidesPolyester

Cotton Fiber

EUROPE

Buenaventura

Espinal

Farms

Cotton

Seed

CottonFiber

CONSUMERS

Road way

By Sea

USA

Medellín

Ambalema

Bogotá

Zipaquira

ASIA

Threads and Yarn

Dyes, softeners, Fasteners

Salt

Ibagué

Fabric

Fabrics, Labels, Threads

Medellín

Clothes

Cotton Ginnings

CLOTHIERS

Bogotá

28.601 ton

Cotton seed

10.024 ton

Cotton Fiber

10.000.000 m 3.000.000 units

Clothing

Port

Fabrics, Labes, Threads

Fabrics

Textile

Factories

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The C-T-C Logistic Profile

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•Transport mainly takes place by land.

•Transport services are usually hired. TRANSPORT

•The origin and destination of the main products is the same department of Tolima, as well as Bogotá, Medellín and Coffee Axis.

PRODUCT ORIGIN AND DESTINATION

•The most widely used storage systems are: pilling, pallets and shelving.

•A low percentage of companies utilize mechanical and automated equipments.

STORAGE

•The most utilized inventory system goes according to production planning.

•The calculated inventory is done manually by the majority of the surveyed companies.

INVENTORY

•Very few companies count with a Logistics department.

•The industrial sector companies use ITC and specialized communication equipments.

INTERNAL LOGISTICS

Problema Referentes Metodología Resultados Conclusiones

General Considerations

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Logistics Best Practices

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0

10

20

30

40

50

60

70

80

90

100

Plan SC PlanSource

Plan Make PlanDeliver

PlanReturn

EnablePlan

Perc

enta

ge

Growers Cotton Ginners Textile Clothes

Problema Referentes Metodología Resultados Conclusiones

Bases: SCOR Model Best Practices

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4. CONCLUSIONS AND FUTURE RESEARCH

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Conclusions

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The industrial link is the one with a greater capacity to attain the majority of the benefits of the logistic integration.

The agribusiness link shows a low logistic development level in the process and in the logistic activities. It has few opportunities to obtain the benefits from the regional logistics integration.

The Tolima C-T-C value chain does not reach an optimum logistic integration, nevertheless, several entreprises are committed to progressing towards an effective logistic management.

References Methodology Results Conclusions

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Future Research

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Analysis and design of a collaborative model among C-T-C value chain enterprises.

Identification of ICT needs in the logistics management, according to the productive function of the actors.

References Methodology Results Conclusions

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End of the presentation

Logistics Management in Agro industry Value Chains in Tolima region - Colombia

Nelson Javier Tovar Perilla

nelson.tovar@unibague.edu.co

BALAS Annual Conference