Visualize the traffic map of a mid-sized retail network. In a traditional “fragmented” supply model, 150 supermarkets act as individual magnets for chaos. Farmers, wholesalers, and traders make direct deliveries to each back door in small, inefficient vehicles. According EastFruit, for a standard 150-store chain, this results in anywhere from 3,000 to 7,500 daily drops across the network. It is a recipe for urban congestion and massive carbon output, characterized by half-empty vans idling in city traffic.
In the meantime, supermarket shelves often have fresh produce missing because one supplier got stuck in the traffic and another one is waiting in the endless line of suppliers all of whom have arrived together. Consumers are also unhappy because they made a trip to the store to buy the lettuce and yet the lettuce shelf is empty. Next time they might choose a more distance store where they know lettuce is always present on the shelves.
The solution lies in the “Hub and Spoke” model: a Centralized Distribution Centre (DC). According to the estimates by the team working on the Horticultural component of the joined FAO/EBRD Agri-food Climate and Environmental Sustainability (ACES) Initiative, aggregating supply into a single 10,000 m² facility, the logistics physics change entirely. Instead of thousands of erratic trips, the network settles into a rhythm of just 150 consolidated deliveries per day – one truck per store. Of course, in practice the number of trips may be higher, but it is still dozens of times lower than under the “chaotic” and primitive model that many supermarket chains in developing countries continue to use today. Moreover, the trips are significantly better loaded, which reduces both total emissions and, in particular, emissions per kilogram of product.
Also read: Development of Fruit and Vegetable trade in Uzbekistan leads to growing CO₂ emissions
The environmental impact of this consolidation is staggering. Analytics show that shifting from small rigid trucks (which emit ~0.445 kg CO₂ per km) to fully loaded heavy-duty trucks (emitting ~0.0565 kg CO₂ per tonne-km) reduces transport-related emissions by 75% to 95%. In real terms, this avoids up to 120,000 tonnes of CO₂ annually for a single retail chain.
Beyond the carbon math, the operational relief is palpable. Store staff, who previously spent up to 25 hours a day collectively receiving dozens of vendors, now process a single, palletized delivery in under 30 minutes. For urban planners seeking to decarbonize cities and reduce traffic density, incentivizing centralized logistics infrastructure is perhaps the single most effective lever available.
And suddenly the supermarket chain begins to see growth in customer traffic and an increase in the average basket value, and therefore, in overall profitability, while simultaneously reducing write-offs of fresh fruit and vegetables. It turns out that the stronger your fresh produce department, the more affluent customers your store attracts – a fact repeatedly confirmed by various studies, such as “Surprises in Stores” and retail audit results from the EastFruit project.
Everyone benefits: the supermarket chain, the city, the environment, and even farmers and traders. Under this model, retailers are able to pay higher prices to suppliers, while the risk of non-payment due to buyer bankruptcy is significantly reduced.
The use of the site materials is free if there is a direct and open for search engines hyperlink to a specific publication of the East-Fruit.com website.
