AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
Figure 3. Types of macro logistic system
Source: created by authors
The most commonly used logistics system is based on
intermediaries (B). This way the movement of material goods
goes through one or several intermediaries before reaching the
end user. In case of industrial products, the role of intermediaries
is usually carried out by wholesale distributors or logistics
centers that distribute goods closer to end users. In case of
services, business entities manage the service packages that are
later distributed to consumers. In case of energy, two business
parts need to be distinguished - the supply of fuel and the supply
of the final product. Power plants can procure fuel supply
directly or through intermediaries. The latter is quite common
among low power plants. Meanwhile the final energy is usually
sold through municipal energy supply companies that, in this
case, carry out the role of intermediaries.
Flexible logistics system (C) is characterized by its flexibility
and ability to adapt to the emerging situation. A flexible logistics
system is based on the fact that intermediary services are not
mandatory - they can be used or not. This can be adjusted based
on the response to changes in demand. This system is considered
to be the best reflection of the biomass cluster case because
intermediate suppliers able to provide greater quantities of
biomass are needed when weather conditions and energy supply
change. In this case it is considered that biomass manufacturer is
a provider and heat, energy or natural gas producing power plant
is a consumer. In normal cases direct communication is used
however, the possibility to rely on the services of intermediaries
remains.
Logistics systems are applied in almost all sectors of the
economy. They help to control the growth of the costs and
effectively fill the needs of consumers. One of the key
competitive advantages of a biomass cluster is a balanced fuel
supply to the power plants. It helps to manage the costs and win
a competitive battle against fossil-based power plants. The
logistics system in the cluster occurs through both direct links
and cooperation with the intermediaries.
2.2 Features of Logistics Systems in Biomass Cluster
Sustainable development of the biomass energy sector makes it
possible to reform the energy structure and increase its efficiency
in different countries and regions. As fossil-fuel equipment
installations are more often replaced with equipment suitable for
burning biomass it creates conditions for the joint review of the
local energy grid. This results in reduced amounts of wasted
energy and increased efficiency of energy production and
supply. Controlling the growth of potential biomass helps
cultivating the flexibility. The success of a bio-based industry
depends on an accurate forecast of the raw material flow coming
from the forests for the entire biomass supply chain up to the
industrial processing stage (Husmann, K., et al, 2018). This
ensures the sustainable use of biomass based on economic logic.
Cluster developments encourage a highly specific territorial
process, which performs as an intermediate system between the
micro-economy of the commodity-producing society and the
structure of the modern space–economy (Yang, Z., et al., 2015).
Increasing efficiency and ensuring supply flow dynamics are the
key components ensuring sustainable development of the
biomass sector (Figure 4). The development of biomass
energetics allows obtaining various types of fuel from different
sources, making it possible to ensure long-term price stability.
At the same time it is possible to generate different volumes of
energy production based on demand.
Figure 4. Components ensuring sustainable development of the
biomass sector
Source: created by authors
Biomass energy sector has favorable clustering possibilities as it
uses local renewable resources. Such resources are usually
managed by small entities that are not able to supply regional
biomass processing facilities all by themselves. In case of
cooperation they would not only satisfy the demand for biomass
but at the same time would also receive tangible financial
benefits. It is more favorable for biomass processors to cooperate
with a larger number of suppliers as this allows them to obtain
the required quantities of renewable fuels faster and at a lower
cost. It is therefore extremely important to involve residents who
would generate different types of bio-waste. By handing over
their bio-waste to be recycled they would help to increase the
competitiveness and flexibility of the cluster. At the same time,
biomass energy structure can be community-based, where
members of the community contribute to the production of the
resources they need.
A result it can be argued that biomass cluster structure can be
favorable to logistics system development. Moreover, it is
essential for this sector to have a smoothly functioning logistics
system as it helps maintaining high competitiveness level in the
energy market. Logistics system covers the planning, provision,
production and distribution of goods from manufacturer to
customer. All these elements interact and affect each other.
System efficiency is also influenced by marketing. An efficient
logistics system can only exist if all elements interact with each
other. When evaluating the efficiency of the biomass cluster
logistics system, marketing does not play a vital role as it only
acts in the local market where the all products are the same. In
this situation, energy producers need to compete for the market
share but not for consumers. The main instrument for securing
the market share is the effective operation leading to lower final
energy prices. For this reason biomass cluster logistics system
plays a vital role in optimizing the fuel costs and transportation
costs.
The biomass cluster and its logistics system require a specific
structure. Since biomass energy requires high quantities of raw
materials, it is necessary to ensure a smooth material processing
and supply flow. In case of biomass cluster, intermediary
services are required on several occasions - when fuel is supplied
and when it is burned. Business in biomass cluster is highly
seasonal because during the winter the demand for thermal
energy is significantly higher compared to the summer time.
This influences the volumes of cluster logistics at the same time
affecting the entire logistics system (Figure 5). Subjects
providing transportation services are also required. In this case,
they shall be called service staff.
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