Space, but not rocket science: A framework for capacity utilization in physical distribution

High capacity utilization of space in physical distribution, such as high fill rates of vehicles, pallets, and packaging, is essential to decarbonize supply chains. This study provides an integrated view of the extant literature on capacity utilization of space in physical distribution, which is fragmented and multidisciplinary. A systematic literature review was conducted on 212 peer-reviewed scientific publications. The paper first provides a content analysis to define six research streams on the subject. Then, using systems theory, thematic analyses identify, categorize, and consolidate key elements of capacity utilization of space into a conceptual framework. The framework defines both the root causes of and measurements used in practice. The main components include packaging-, transportation-, and logistics-related factors, all of which influence capacity utilization of space in physical distribution and its outcomes. The framework enhances researchers’ understanding of capacity utilization of space in physical distribution and serves as a guideline for practitioners in addressing this challenge. Based on the findings, we also present avenues for future research.