Logistieke Barcamp 9 juni 2011 - Tri-Vizor

© 2011

“Georkestreerde horizontalesamenwerking”

Duurzame logistiek door co-modaliteit en goederenstroombundeling

Logistieke Barcamp

Innovatiecentrum Limburg - PHL

Bart Vannieuwenhuyse

09-06-11

© 2011

World Economic Forum

Supply Chain Study 2009

≡ 24% of good vehicles in the EU are running empty

≡Average loading of the rest is 57%

≡Overall efficiency: 43%

≡ Flow imbalance could only explain half of this loss

≡ Knowing that transport and logistics are

responsible for 14-20% of global carbon footprint

≡ Given the network capacity limitations and the

freight flow demand growth forecasts

How much longer can this be justified?

© 2011

How to react?

≡ Regulation

≡ e.g. smart road pricing, the Eurovignette directive,…

≡ Innovation

≡ traffic avoidance through product development (e.g. iPad)

≡ design for logistics

≡ transport technology innovation

≡ Horizontal collaboration – bundling of freight flows

≡ “logical, but not easy”

≡ requires

≡ a new type of co-operation (‘co-opetition’)

≡ new logistics actors: impartial orchestrators,…

≡ new types multilateral agreements

≡ trust

≡ expertise

© 2011

Vision on logistics

≡ Since 2006 : Trade off

between 3 supply chain

forces further decreases

optimisation and

improvement potential

Supply Chain

Optimisation

Efficiency Effectiveness

Sustainability

© 2011

Sustainability?

≡ Focus on climate – Carbon Footprint

≡ CO2 eq

≡ Long term – global

≡ But also pollution – the environment -

health

≡ NOx, SO2, PM10,…

≡ Short term - local

© 2011

Climate EffectCarbon footprint Multimodal Transport

Rule of thumb

Truck – 1 km – 1 kg CO2eq

Train – 1 km – 12 kg CO2eq

TRI-VIZOR, 2010.

© 2011

Vision on logistics

≡ Only cross-company collaboration, consolidation and

bundling of flows can further improve efficiency,

effectiveness and sustainability simultaneously

Efficiency

Effectiveness

Sustainability

Supply

Chain

Supply

Chain

Supply

Chain

Supply

Chain

Cross

Supply Chain

Optimisation

© 2011

Bundling and consolidation

Point-to-Point: simple

Low effectiveness

Low efficiency

Low sustainability

Decoupling: challenging

High effectiveness

High efficiency through volume

High sustainability

© 2011

Horizontal collaboration

The global strategic objectives for the consumer goods industry:1. Make our business more sustainable

2. Optimize a shared supply chain3. Engage with technology-enabled consumers4. Serve the health and wellbeing of consumers

Future Value Chain 2020: building strategies for the new decade, The Consumer Goods Forum, Capgemini and HP 2010

© 2011

The making of The World's First

Orchestrated Horizontal Collaboration

© 2011

What is Orchestration?

≡ Synchronizing supply chains of multiple shippers and generate

substantial gains

≡ Consolidation in geography and time - smart bundling

≡ Managing the consolidation from a shipper’s perspective

© 2011

Orchestration guarantees

≡ Impartial moderation (trustee and referee) of the community of

shippers

≡ Anti-trust compliance: full transparency of the community

information while keeping confidential the company-specific

information

≡ Correct gain sharing

≡ Maximum stability of community based on contracts with clear exit

and volume strategies for each member

≡ A pro-active expansion of the community with new flows

≡ Comfort…

© 2011

Cross Supply Chain®

Consolidation Methodology

© 2011

Cross Supply Chain®

Database

Looking for collaboration partners among:

≡ Almost 80 companies (mostly blue chip)

≡ Almost 50 000 transport lanes

Pharma &

Healthcare

Chemistry

FMCG &

Food

Automotive

High Tech

Other

LSP

© 2011

Tri-partite multilateral contract

Contract of meansExtended Carrier Contract

Carrier

Shipper 1

Shipper 2

Shipper n

Orchestration Services

Individual orders

Combined orders, Reporting

• Invoicing services

• Planning

• Gain sharing calculations

• Community management

• Expansion, entries & exits

• Reporting Services

• Continuous improvement

• Advisory

POD, Invoice

Order status, POD

Invoice, Reporting

Mandate

Clauses with

mechanisms for

• Gain sharing

• Volume variations

• Entry/Exit

Multilateral contract

© 2011

Orchestration

Process

© 2011

INVOICINGREPORTING

SUPPLY CHAIN

VISIBILITY

Overview combined shipmentsWEEK 43

POLAND Company Order no PalletsDelivery

date

Capacity

Cost

Additional

Costs

Total

cost

Pallet

priceSavings

Opportunity

costs

Individual Shipments X 80173526 4 6/11/2010 580 580 145,0 35,6

Individual Shipments Y 20100612 28 7/11/2010 1470 1470 52,5 249,4

Total Individual Shipments 32 2050 2050 64,1

Combined Shipment X+Y 32 6/11/2010 1440 325 1765 55,2 285,0

POLAND Company Order no PalletsDelivery

date

Capacity

Cost

Additional

Costs

Total

cost

Pallet

priceSavings

Opportunity

costs


Individual Shipments Y 20100615 23 8/11/2010 1470 1470 63,9 456,5 200


Combined Shipment X+Y 33 8/11/2010 1440 325 1765 53,5 655,0 200

HUNGARY Company Order no PalletsDelivery

date

Capacity

Cost

Additional

Costs

Total

cost

Pallet

priceSavings

Opportunity

costs





CZECH REPUBLIC Company Order no PalletsDelivery

date

Capacity

Cost

Additional

Costs

Total

cost

Pallet

priceSavings

Opportunity

costs





…

TOTAL WEEK 43 Company PalletsCapacity

Cost

Additional

Costs

Total

cost

Pallet

priceSavings

Opportunity

costs

Individual Shipments X 127 17500 17500 137,8 1460,6

Individual Shipments Y 430 45800 45800 106,5 4945,4


Combined Shipment X+Y 557 51369 5525 56894 102,1 6406,0 0

WEEK 43 TOTAL COST SAVINGS

Shipper X 12.972,2€ € 1.460,6

Shipper Y 43.921,8€ € 4.945,4

TOTAL COST 56.894,0€ € 6.406,0

ORDER DATA

Shippers

CAPACITY DATA

Carriers / 3PLs

TARIFF DATA

Carriers / 3PLs

Community Management Meeting

Community Portal

XMLe-mailBooking platform (Transwide,…)

© 2011

Horizontal collaboration – the process

October 2010

≡ Scoping to 8 destinations

≡ Feasibility analysis

≡ Consolidation concept:

≡ multiple pick-up / multiple drop

≡ Combining FTL-LTL

≡ Temperature controlled

≡ Positive Business Case

© 2011


December 2010

≡ Important 3PL selection criteria

≡ All time availability of capacity

≡ Pharma qualified

≡ Temperature controlled

≡ Multimodal

≡ Familiar with regional issues in Eastern Europe

© 2011

≡ Gain sharing mechanisms, based on

≡ Baseline tariff: separate volumes

≡Consolidated tariff: combined volumes

≡ CO2 calculations (ADEME protocol)

≡ Volume variation rules

≡ Entry/Exit strategy (according anti-trust)

≡ Fee structure for orchestrator: fixed + variable

≡ Orchestration services, incl. paymaster

Horizontal collaboration –

the process Major Issues

© 2011


March 2011

≡ Startup lane: Romania

≡ Key: combining FTL and LTL shipments to FTL shipments with double stack

≡ Practicalities

≡ How to realize an ideal combination scheme?

≡ How to obtain lead time expansion where ever possible?

LessinesBraine Genk Oradea

Sibiu

Brasov

Chitila

Bucharest

50 160 1600

320

450

570

580Truck Train Truck

Departure Genk TUE WED FRI SAT

Arrival Oradea FRI SAT MON TUE

Delivery Romania MON MON TUE WED

Total lead time 5 4 3 4

© 2011


April 2011

First results Romania

≡ Lead time expansions possible if pre-notified by orchestrator

≡ Net cost savings: double digit

≡ CO2 savings: > 50% (multimodal)

≡ Service level improvement

© 2011


May - June 2011

≡ Systematically adding new destinations

≡ Continuous improvement of interfaces and processes

≡ First talks with new community members

© 2011

Create a (supply) chain breakthrough...

≡ Applying multimodality & co-modality through bundling of freight flows

� The way to go

≡ Creating breakthroughs through an orchestrated horizontal collaboration

� The challenge

© 2011

Bart Vannieuwenhuyse

TRI-VIZOR NV

Waterfront Research Park

Galileilaan 18

B-2845 Niel

T: +32 3 292 62 10

F: +32 3 292 62 11

www.trivizor.com

Logistieke Barcamp 9 juni 2011 - Tri-Vizor

Documents

Transcript of Logistieke Barcamp 9 juni 2011 - Tri-Vizor