Analysis and optimization of JMD’s distribution chain - The Case Study of JMD

Maria Joana Nunes da Silva Lopes Figueira

Key information

Authors:

Maria Joana Nunes da Silva Lopes Figueira (Maria Joana Nunes da Silva Lopes Figueira)

Supervisors:

Cátia Rafaela Ferreira Medeiros da Silva Coelho (Cátia Rafaela Ferreira Medeiros da Silva); Ana Paula Ferreira Dias Barbosa Póvoa (Ana Paula Ferreira Dias Barbosa Póvoa)

Published in

11/23/2023

Abstract

The concepts of supply chain (SC) and its management have been studied and improved, recognizing their crucial role in delivering goods to the right locations with the right quantity at the right time. Furthermore, the literature shows a growing emphasis on sustainability within SC, evident in strategies such as the Triple Bottom Line approach in the designing and planning of SCs network. This work focuses on analyzing the SC of JMD, a leading food distributor in Portugal, responsible for the presence and distribution of several food and beverages brands in the different Portuguese retail shops and other channels. This work aims to design and plan a SC network, presenting recommendations as the number of warehouses needed and their locations, through a strategical approach. Taking the inbound and outbound operations of JMD’s SC, contemplating suppliers, warehouses, and the different clients, an optimization tool is developed based on da Silva et al., (2020) to support decisions regarding the configuration network. The findings propose a reconfiguration of the network to enhance resilience against unforeseen circumstances. It is recommended the addition of one warehouse in Gaia to the already existent one in Azambuja, aiming to reduce costs and environmental impact. A scenario that considers flows between warehouses and the operation of three warehouses (Azambuja, Gaia and Madrid) with lower transportation costs reveals to be even more financially advantageous. Both scenarios should be weighted and aligned with JMD’s strategic goals and operational efficiency. Regular monitoring of transportation costs will be essential for ongoing operations.