Benchmarking freight transportation corridors and routes with data envelopment analysis (DEA)

Abstract

Purpose The purpose of this paper is to collectively measure and compare the efficiency of Brazilian and American soybean transport corridors, from farmers to export ports, using the data envelopment analysis (DEA). Design/methodology/approach This paper aims to determine routes from main producing micro-regions to main export ports, specifically using slack-based measure and variables that represent the three pillars of sustainability (economic, social, and environmental). The choice of variables was guided by literature review and analyzed through the principal component analysis. After the application of the model, the quantitative tiebreaking method of the composite index is applied. Findings The findings are coherent with a global report that compares soybean transportation in both countries (Brazil and USA). Efficient routes and corridors tend to present short distance truck trips and long distance train or barge trips. The efficiency of the inland waterway trips depends on how many barges are used in the same expedition. Routes with more than three modes tend to be inefficient which suggest that there is a limit for multimodality. Originality/value Corridor benchmarking is a rare topic in the literature and previous works normally focus on some specific and limited corridor performance characteristics, such as cost. The main contribution of this research is that it expands the discussion regarding corridor benchmarking and it focuses on efficiency as a whole. The paper also proposes a method that can be applied in different logistics contexts, like expanding the study to different countries. More specifically, this method could be used in infrastructure investments programs.

Analysis of the Performance of Transporting Soybeans from Mato Grosso for Export: A Case Study of the Tapajós-Teles Pires Waterway

“…Reference [58] applied DEA to a key problem of roadway cargo transport: how to rationalize measurements of GHG emissions among different transport companies. The authors developed a benchmarking approach integrating the use of weight and volume (capacity), distance traveled, and GHG emissions.…”

“…This framework was also adopted by [62] to analyze the logistics efficiency of transporting corn for export. Besides this, the criterion of homogeneity was satisfied by considering the same variables (inputs and outputs) in all the export routes, as also presented by [58], who analyzed the performance of logistics corridors (DMUs) to carry soybeans from MT for export.…”

Application of Dea in Benchmarking: A Systematic Literature Review From 2003–2020

“…However, in organizations with inadequate performance, it is possible to consider numbers of the benchmarking stages as one of the prominent factors in the decision-making procedure to improve efficiency of the stage. Melo et al (2018) assessed the measurements of corridors and shipping routes using DEA. In their study, the effectiveness of Brazilian and American transport corridors in the field of soybeans from farm to export terminals was measured and compared with the use of DEA.…”

Multi-criteria efficiency assessment of international biomass supply chain pathways using Data Envelopment Analysis

“…The software MATLAB was used to execute the SBM DEA model. The choice of the model (SBM) was informed by its characteristic of simultaneously maximizing outputs and minimizing inputs and its previous application in the related context of soybean pathways selections in Brazil, considering the transportation from farmers to ports, by Melo et al (2018).…”