Title
Evaluation of Transportation Practices in the California Cut Flower Industry
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.
Year
DOI
Venue
2013
10.1287/inte.1120.0654
Interfaces
Keywords
Field
DocType
south american grower,logistics center,california cut flower industry,transportation practices,new flower transportation,california grower,national cut flower market,consolidation center,california cut flower commission,flower grower,california cut flower grower
Miami,Transportation cost,Commission,Competitive advantage,Federal funds,Engineering,Logistics center,Operations management,Cut flowers,Competitor analysis
Journal
Volume
Issue
ISSN
43
2
0092-2102
Citations 
PageRank 
References 
3
0.40
7
Authors
4
Name
Order
Citations
PageRank
Christine Nguyen130.40
Alejandro Toriello2669.04
Maged Dessouky347939.53
James E. Moore430.40