SPACES OF LOGISTICS

From ‘Logistikas’ to Logistics

‘Logistikas’ were the military of- ficers in charge of supplying the army.

The concept began to be used to organize the transportation, supply, and accommodation of troops.

In wartime situations, efficiency in transporting and storing materials and supplies was vital to military logistics.

The logistics concept is evolving due to new ways of seeing and thinking about information, space, time, and construction.

With the emergence of trade, logistics becomes essential to coordinate production lines, supply of raw materials, and storage and distribution of products.

The common factors between the origin and the present day of the logistics concept fall into two main groups: static spaces and dynamic spaces

STATIC SPACES

DYNAMIC SPACES

Global disruptive moments in recent logistics history

Mobile phones gain the required technology to be able to display barcodes.

The two-dimensional QR code is unveiled in Japan.

First commercially-scanned UPC barcode

First Bar Code was invented

The colombian Bernardo Trujillo formalize the theoretical and practical bases of modern distribution. The Committee on Uniform Grocery Product Code recommends barcodes be used on most products un U.S.

The 1996 Planning law is instated, prohibiting the development of large scale hypermarkets in Denmark

The internet was made widely available

Almost every major food delivery service, saw it gross merchandise volume increase by over 100%

The Digimarc Barcode, a machine readable code nearly invisible to humans, is adopted by the GS1 organization.

Bilka, Tilst is expanded from 12,000 sqm to 18,000 sqm

Amazon Go introduces a new supermarket concept: No lines, no checkouts, no registers.

First Self-Service Supermarket. Piggly Wiggly, Memphis Tenesse, USA.

First Supermarket. King Kullen, New York, USA.

First Salling department store opens in Denmark

Denmarks first hypermarket Bilka opens in Tilst.

Denmarks first discountsupermarket “Netto” opens

The dark store concept emerged in England.

Hyperlocal distribution is introduced in Copenhagen

The first air freight took place from Dayton to Columbus

Enormous advances were made during the war years, as aeroplane technology was invested.

First Containership : SS Ideal X

The International Standards Organisation standardised the container as a box being 20 foot long, 8 foot high and 8 foot wide

The boom of express parcels. Planes primarily for cargo starts to appear

Globalization coupled with the international transport of goods means that many production centers are moved to places where it is cheaper to produce and, therefore, logistics is needed to make these displacements profitable. Efficiency is beginning to be valued when it comes to meeting and reducing delivery times, and the demands on supply chains are increasing.

Phases of the logistic system Static logistics and Dynamic logistics

The evolution of human behavior radically changes consumption patterns . Logistics has been transformed to adapt to new consumer needs and business models. In recent years, this evolution has strived to provide ease and speed to users, displacing the experience that a brand can provide in a supermarket.

Dynamic Logistics Components - Units

Goods road transport

UNIT: Weight of goods loaded (100 tonnes)

National transport Interational transport

By Land

Bike, Scooter, Truck

Throughput of goods in major Danish seaport

Type of goods: Goods in containers.

Direction: Outwards and Inwards.

Units : 1,000 Tonnes

By Sea

Refrigerated containers

Air transport of goods via manned Danish airports

Type of trasnsport: Total Airport: Total Units: 100 Tonnes

By Air

Refrigerated containers:

IATA code RKN

IATA RAP code

IATA code RMP IATA JPP

Distribution and Connectivity Primary actors of food supply in Denmark

Prime areas for logistics

Trekantsområdet Aarhus

“Trekantsområdet” is Denmark’s transport hub. Here, the country’s east-west motorway E20 meets the vital northsouth motorway E45, connecting Denmark with the rest of Europe

Aarhus is characterized by its harbour, which is the largest industrial port in Denmark. It is the largest container port with a market share of around 65% and the largest public bulk port.

Primary food suppliers in Denmark

Dagrofa Salling Group

Salling Group, Køge Salling Group, Ishøj Salling Group, Vejle Salling Group, Aarhus Salling Group, Aarhus Salling Group, Fredericia Salling Group, Taastrup

Copenhagen Aalborg

Because of the distance to the rest of the country, Aalborg is characterized by it’s port, which connects to some of the world’s largest container ports in Hamburg and Bremerhaven

Companies in Greater Copenhagen are particularly active in import and transit, while export and domestic goods account for a smaller share of the total volume of goods.

Coop Logistics Lineage Logistics

Dagrofa, Ishøj Dagrofa, Ringsted Dagrofa, Vejle Dagrofa, Herning

Rema1000 Lidl

Rema, Horsens Lidl, Køge

Coop, Albertlund Coop, Odense Coop, Aalborg Coop, Aarhus

Coop, Albertlund Coop, Odense Coop, Aalborg Coop, Aarhus

Connectivity

Bulk, Packaged, High value temperature

Dry goods, temperature regulated

Import, export, transit, national

Distribution, storage, packaging E45, E20

Rail, plane, truck, ship

Bulk, Packaged, High value temperature

Dry goods, temperature regulated

Import, export, transit, national

Distribution, storage, packaging

E45, E20

Rail, plane, truck, ship

Bulk, Packaged, High value temperature

Dry goods, temperature regulated

Import, export, transit, national

Distribution, storage, packaging

E45, E20

Rail, plane, truck, ship

Bulk, Packaged, High value temperature

Dry goods, temperature regulated

Import, export, transit, national

Distribution, storage, packaging

E45, E20

Rail, plane, truck, ship

The node is characterized by this Handled at the hub

Architecture of logistics

Spatial characteristics

Uninhabited spaces

- The distribution is not open to visitors, which allows more space for store inventory and the opportunity to quickly and accurately fulfull orders.

- Large part of the floor area is used for storing and moving products. The areas for operating personnel are minimal concerning the total area.

Employees work an average of 40 hours per week in eight-hour shifts, usually in intensive shifts, which allow the warehouse to keep working 24 hours a day.

Emyployees roles:

Warehouse Associate, Warehouse Loader, Warehouse Clerk, General Laborer, Shipping & Receiving Associate, Warehouse, Material Handler, Forklift Driver, Warehouse Machine Operater

Layout must - haves:

Inbound receiving bay, storage areas, packing space, outbound loading docks, office, break room.

Inhabited spaces

- The physical store is the purchasing channel for consumers.

- Psychological marketing strategies are used to increase customer consumption.

Employees typically work 40 hours per week, although there are also 20 to 30-hour, part-time and weekend schedules. A supermarket is normally open to the public between 8 and 10 hours per day.

Emyployees roles:

Manager, section manager, section employees, several stockers, several cashiers, accountants, administrative assistants, sales manager, purchasing manager, logistics manager.

Layout must - haves:

Cash desks, trolley pick up and return area, shelves area, customer service, toilets, changing room, office.

Coop distribution center, Hasselager Scale: 1:1000

Føtex. Amgerbro Scale: 1:500

Economics of fulfillment Primary actors of food supply in Denmark

Transformation of food systems Emerging actors suggest a change in current food supply chains

Nemlig.com opens and starts delivering groceries to danish consumers. Wolt

Comparative of delivery systems

One person delivering - several users

Vehicle(s)

Employees

20-30min

multiple deliverers - multiple user

Vehicle(s)

Employees

24 hrs

One delivery person - one user

Vehicle(s)

Employees

Several distributors - Several users

Vehicle(s)

eg. Wolt eg. Rema 1000 eg. Gorillas eg. COOP

Employees

Case Study Gorillas - on demand grocery delivery company

Backbreaking job . Numerous riders reported back injuries after working . Many Gorillas warehouses lack cargo bikes, forcing riders to carry large loads of groceries on their backs.

Gorillas under criticism for poor working condi- tions on Denmark

Back pain, understaffing, extreme busyness, lack of payment for overtime, absence of workplace assessment (APV) and occupational health and safety organization (AMO) and accidents on the bicycle that are not taken seriously by the management. These are some of the points of criticism that Gorillas candidate Theodor Beierholm puts forward in Politiken.

Gorillas Technologies has faced multiple worker strikes and protests in the past month over the termination of certain employees, a lack of suitable equipment and pay discrepancies.

The Gorillas Workers Collective escalated protests in June, after hundreds of employees complained that their paychecks were inaccurate — most saying they were paid less than they were owed.

Recent protests and wildcat strikes have been organized by the Gorillas Workers Collective.

According to Jakob Pomeranzed, a member of the collective, the group began organizing after February, when riders were expected to complete deliveries without work-issued winter gear in heavy snow.

Eventually, workers at two warehouses started a strike, which grew until the company called off work for the week. In the months that followed, a group of Gorillas workers created the collective. On June 3, a general assembly was held to elect an electoral council, which plans to organize elections for a legal workers council.

German startup star faces workers’ fury

“It’s important to send a message to the delivery industry that codetermination rights need to be fulfilled”.

On-demand grocery delivery company History and business model

- GORILLAS has dynamited delivery times.

is shaping new grocery consumer behavior: need - order - get.

Summary makes the purchase easier, more focused.

Business model

About

- Gorillas’s headquarters : Berlin, Germany

- Gorillas has 22 investors.

- Gorillas has raised $1.3 Billions

- Gorillas’s competitors : Septo, Zapp and Krave

Gorillas

Dark stores

1. Langgaards Vej

2. Bådehavnsgade 4

3. Frederikssundsvej 131

4. Landskronagade 64

5. Jarmers Plads 2

Scale: 1:100.000

Dark storse About uninhabited spaces

All over the world stores are closing their doors to customers to optimize their online sales.

Dark stores can reduce delivery costs by up to 30% by optimizing processes, increasing productivity and improving operating times.

Advanteges of dark stores:

- Lower operation and maintenance costs.

- Increased storage capacity.

- Option to adapt the infrastructure to an automated and intelligent system.

- Easier and more efficient order fulfillment.

- Faster picking and 24/7 operability.

Disadvantages of dark stores:

- its relationship with the city

- they are changing the way in which a project is designed, where the worker or user takes, as well as the whole interior, an operative role.

How will the city be transformed when the number of companies under the dark stores business model increases?

Will their facades closed to the public change the experience of downtown areas where the ground floor needs to be activated to make the city?

Globalization - efficiency - reducing delivery times - supply chains are increasing.

consumption patterns - ease and speed to users, displacing the experience.

Uninhabited spaces -where the worker or user takes, as well as the whole interior, an operative role.

Logistics systems are a way of understanding time and space

- Do uninhabited spaces bring us closer to our dehumanization?

- Will the systemic spaces be uninhabited?

- What will be the language of these spaces within the city?

If form follows function, function is never static, definite or predictable. Therefore architecture is always an open question.

SOURCES

BOOKS

- Lecavalier, Jesse . 2016 . The rule of Logistics. - Lyster, Clare . 2016 . Learning of Logistics

WEB PAGES

- Micro-fulfillment and Dark Store: The secret weapons of urban logistics: https://gieicom.com/strategic-intelligence/micro-fulfillment-y-dark-store-las-armas-secretas-de-la-logistica-urbana. html

- Top 5 Business Models For Grocery Delivery Apps : https://oyelabs.com/grocery-delivery-apps-business-models/

- New post-pandemic business models: the case of Gorillas: https://www.oleoshop.com/en/blog/ new-post-pandemic-business-models-the-case-of-gorillas

- The Food Delivery Business Model: https://www.intelivita.com/ blog/food-delivery-business-model/

- Gorillas under kritik for dårlige arbejdsforhold i Danmark: https:// watchmedier.dk/nyheder/strategi/article14139204.ece

- German startup star faces workers’ fury: https://www.dw.com/ en/germany-gorillas-delivery-riders-protest-unfavorable-working-conditions/a-58325911

- Tredobling af onlinekøbere af dagligvarer på ti år (opdateret): https://www.dst.dk/da/Statistik/nyheder-analyser-publ/ bagtal/2019/2019-09-05-tredobling-af-onlinekoebere-af-dagligvare

- E-handelsanalysen: Forbruget på nettet vokser markant og slår ny rekord: https://www.danskerhverv.dk/presse-og-nyheder/nyheder/2021/september/e-handelsanalysen-forbruget-pa-nettet-vokser-markant-og-slar-ny-rekord/

- Gorillas celebrates 16 million orders worldwide: https://gorillas.io/ en/blog/gorillas-celebrates-16-million-orders-worldwide

REPORTS

- Curry David, Food Delivery App Report, Esteban Baeza, August 2022. Contributors: James Cooper and Mansoor Iqbar.

IMAGES & ILLUSTRATIONS

- Koiguo - http://gettyimages.containers.com

- phosphoricons.com

Atlas — Spaces of Logistics Victor Carlsen . Daniela Barrera