Evaluation of Transportation Practices in the California Cut Flower Industry

Christine Nguyen (), Alejandro Toriello (), Maged Dessouky () and James E. Moore ()
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Christine Nguyen: Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089
Alejandro Toriello: Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089
Maged Dessouky: Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089
James E. Moore: Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089

Interfaces, 2013, vol. 43, issue 2, 182-193

Abstract: In the past two decades, California’s share of the national cut flower market has decreased from 64 percent to 20 percent. California growers’ largest competitors are South American growers; Colombia controls 75 percent of the US market. South American growers have several competitive advantages, including the favorable trucking rates they enjoy by consolidating all shipments in Miami, Florida, prior to US distribution. This paper evaluates the California cut flower industry’s current transportation practices and investigates the feasibility and cost of establishing a shipping consolidation center in Oxnard, California. Applying a simple inventory management policy, we estimate a 35 percent system-wide transportation cost decrease of $20 million per year if all California cut flower growers participate in the consolidation center. The California Cut Flower Commission incorporated our findings into an application for federal funds from the US Department of Transportation to construct a new flower transportation and logistics center in California. The state’s flower growers are also searching for alternative ways to cooperatively fund a consolidation center.

Keywords: freight consolidation; cut flowers; agriculture industry (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:43:y:2013:i:2:p:182-193

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