Cargo pooling with Cinatis Way

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Discover what cargopooling is and its benefits!
Cinatis Way is the first Collaborative Logistics Solutions in Europe

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Cargo pooling with Cinatis Way

  1. 1. With Cinatis Way, let’s pool cargo!
  2. 2. Web-based solutions editor, for supply chain communities  SAS : Company with a capital of € 94,000 supported by Logoden, OSEO, Brittany Regional Council and the French ‘Technopole’ network.  Background : Editor of web-solutions for logistical activities (SaaS-based)  Project : to become the first collaborative transportation network in Europe  Board : 3 founder-partners from supply chain universe.Cargo pooling with Cinatis Way 2
  3. 3. How to reduce transportation costs? 67% FILLING RATE FOR THE TRUCKS OPERATED ON FRENCH ROADS Or why will the cargo pooling be increased in Europe ?Cargo pooling with Cinatis Way 3
  4. 4. EVOLUTION OF TRANSPORTATION CONSTRAINTS What are the actual and future constraints for the transportation?Cargo pooling with Cinatis Way 4
  5. 5. In the 20th century, transportation was dedicated! Evolution Benchmark A transport multiplication, with common starting and finish points Obviously every shipper optimize … within the limits of its possibilities (volume/appointments) This competitive system creates additional costs and issues with challenging customers Routes are operated even if trucks aren’t complete (respect of commitment) Operative times and run distances are high (carriers)Cargo pooling with Cinatis Way  As a result a filling rate of 2/3* * Source ADEME 5
  6. 6. We can admit that there is no true praise! Evolution Benchmark  Increase of run kilometers  Increase of fuel consumption  Increase of greenhouse gas  Infrastructures saturationCargo pooling with Cinatis Way 6
  7. 7. And it wont be better… Evolution Benchmark The forthcoming environmental tax in Europe will emphasize the transportation cost in the product price. It would be between 0,025€ and 0,14 € per kilometer (between + 3% and +10%). An alternative supply for road transport is almost inadequate in Europe and doesnt offer any economically satisfactory solution (1,5% on avg.) The final consumer becomes aware of the environmental weight of logistics during the product fabrication. The demands of industrial customers or retailers are often antonymic with the transportation cost optimization. For example : requirement for being delivered oftener and for cheaper Cargo pooling with Cinatis Way 7
  8. 8. In summary, transport faces a structural pressure without precedent Evolution Benchmark• Increased energy cost • A weak filling rate of • Constant flow imbalance with an important vehicles • Hazards on transport varation of fuel • Increased greenhouse means availability indexation gases • Deliveries smaller and• A new taxation weighing • Modal transfer from road smaller by 2013 to 10% on to rail or river is hard • High deliveries transportation cost • Crowed infrastructures frequencies• Permanent strain on • Business rules are prices changing constantly• 54% of logistics costs • Many transportation affects transport partners Costs Environment Organization Cargo pooling with Cinatis Way 8
  9. 9. The actual context leads us to reconsider land organization, and especially transfers in order to obtain … Evolution Benchmark… more economical transports :  Growing a regional dynamic, with industrials and carriers who know how to exceed non-disclosure rules of their business  Promoting occupancy rate of trucks and avoiding empty returns  Reducing road mending costs  Preserving trunk roads doomed to saturation ECO²… more ecological transports :  Furthering NGV or electric vehicles  Training drivers to eco-driving  Taking on multimodal transport in order to reduce greenhouse gases and carbon footprint for every transported product Cargo pooling with Cinatis Way 9
  10. 10. In summary, 4 interacting issues to be resolved Evolution Benchmark  Relationships with carriers can’t only be restricted to freight costs but must allow to Create a new generate productivity gains for the carriers. relationship model with carriers  Manufacturers and retailers transport organizations must overpass their limits and make sure to reach the optimum in the network they belong Reduce the Innovate with newenvironmental transport outlines impact  Optimal solutions will be met by transportation scheduling just like the best practices used for industrial activities. Anticipate the transport activity  The organizations and deployed means at middle and long have to be chosen due to their term environmental efficiency. Cargo pooling with Cinatis Way 10
  11. 11. BENCHMARK ON CARGOPOOLING EXPERIENCESCargo pooling with Cinatis Way 11
  12. 12. Cargo pooling consists in bringing stakeholders together by compatibility and organizing their collaboration Evolution BenchmarkCargo pooling with Cinatis Way 12
  13. 13. The solution is: a pooled supply chain ! Evolution Benchmark Cargo pooling consists in rolling out a business-to-business collaboration in order to aggregate cargos within the same vehicles. Pooling acts simultaneously on 3 issues: Reduce the transport costs Reduce the greenhouse gases emissions Increase delivery frequencies Cargo pooling with Cinatis Way 13
  14. 14. The results obtained for the first 35 cargo pooling initiatives encourage an exponential development for its approach Evolution Benchmark Cargo pooling initiatives have been promoted by retailers, manufacturers, SMB and global companies. For whatever players size, they obtain gains according to the flow they aggregate. Higher the share of pooled flow is, bigger the gains are for every player.Andros, Auchan, Bénédicta, Bongrain, Bel, Bridgestone, Cadburry, Carrefour, CAM 53,CAM 56, Casino, Castorama, CEPA LDC, CECAB, Coca Cola, Colgate, Conforama,Continental, Coopagri, Damart, Danone, Entremont, Eugène Perma, GSK, Heinz,Henkel, Ikea, Kronenbourg, Lactalis, Lustucru, Marie, Mars, Materne, Monoprix,Montblanc, Nestlé, Normand’vie, Nutrimaine, Ovomaltine, Picard, Reckitt, Sara Lee,Senoble, Sodiaal, Sunny Delight, Unilever, United Biscuits, Vegam, Verywear, Yoplait, Cargo pooling with Cinatis Way 14
  15. 15. Carrefour has already "pooled" 400 suppliers but some issues have to solved Evolution Benchmark 1 network with 10 consolidation Optimized truck for DC inbound flows 400 SMB suppliers with a same point of delivery Products shortages in stores reduced by 50% Inbound transport Delivery frequencies costs decreased by 6% multiplied by 3Cargo pooling with Cinatis Way 15
  16. 16. Initiative of 2 major companies Evolution BenchmarkCadbury and Sara Lee have launched a cargo polling project in 2004, based a platform(annual factory pool of 460000 pallets toward 7 retailers i.e. 40 delivery points). Everypoint is delivered from 2 to 4 times per week. The project goals are reached :  The solution meets the customers needs  Delivery frequencies are increased  Logistics costs are decreased  Order-fill ratio is raisedFor the customers, the benefits are also significant. For example for Carrefour :  Stock level have been reduced by 38% and 15%  Order-fill ratio has risen by 0,6 point for 1 year  Deliveries have dropped by 36 %  93 tons of CO² have been cut annually Cargo pooling with Cinatis Way 16
  17. 17. Gains for Cadbury - Sara Lee Supply Chain Benefits Drawback Drop in transport costs : full-loaded trucks optimization, Complex process to roll out balances order elimination Fall of CO2 emission Rise in constraints Process and organizations standardization (daily issues Global can be spotted and solved) Improvement in forecast and reactivity : cargo pooling ensures spreading over time activity Better customer service Raise in delivery frequencies Increased suppliers weight, even more so they are numerousRetailers Increase in order-fill ratio Drop in stock Competitive benefit from logistics costs pooling, Long-term bond (on 2 to 4 years) at least improved management for product launching, seasonal with one or several partnersSuppliers products and special offers Increase in picking costs (layer/parcel, vs pallet) Cargo pooling with Cinatis Way 17 Source JC Festinger - Aslog
  18. 18. An initiative from food-processing SMB enables to increase delivery frequencies fourfold without over cost Evolution Benchmark 5 dry-goods shippers are pooling their cargos to deliver Carrefour platforms by multi-pick Solution operated trough 2 platforms with 27 pallets per shipment => filling rate of 82% Order-fill rate of 100% since the beginning Drop in transportation costs of 25%Cargo pooling with Cinatis Way 18
  19. 19. An initiative from food-processing SMB enables to increase delivery frequencies fourfold without over cost Evolution Benchmark MANUFACTURER CARRIER RETAILERMore reliable transport Faster Less receipts in platform Better mobility More productive Less stock (-15d) Less empty Stronger reactivity Less shortages in store Less km Costs control Less CO2 emissionsCargo pooling with Cinatis Way 19
  20. 20. In summary, 3 main benefits arise from the 35 first benchmarks and explains the enthusiasm for this new action lever Evolution Benchmark1) More economical transports improving occupancy rate of trucks and optimizing transportation plan2) More eco-friendly transport reducing the mileage and the fuel consumption3) The opportunity to make the most of a higher delivery frequency owing to the volume per destination increase The 5 to 15% gain is depending on the volume we can inject into the pooling network Cargo pooling with Cinatis Way 20
  21. 21. The cargo pooling benefits to all the logistics processes Evolution Benchmark Better schedule of supply and/or customers orders  Synchronization of supply paces requires to improve its orders scheduling and to increase its cadence. Better anticipation and visibility for picking orders  More accurate scheduling of suppliers or customers orders allows to better anticipate the picking orders in the warehouse Higher productivity for docks receipt  Drop in receipt vehicles number permits to cut off fix operations per vehicle (docked vehicle, vehicle control, receipt readying) Drop in areas and resources dedicated to goods receipt and deliveries  Drop in vehicles number optimizes the use of warehouse resources for goods receipt and shipments. Fall in products shortages  Rise in delivery frequencies enables to minimize product shortage risks without deteriorating transportation costs Cargo pooling with Cinatis Way 21
  22. 22. In overview, cargo pooling is the best solution for logistics optimization for the years to come Evolution Benchmark Structure all the logistical Improve the service processes Entities’ synchronization of every group Cargo pooling ensures to increase member enables to improve all the processes delivery frequencies without (scheduling, supply, production, picking order, deteriorating transport costs and administrative management) lowering stock shortages Cargo pooling Conciliate results and Work on every lever sustainable development concurrently The decrease in vehicles number makes it Cargo pooling comply as a complement with possible simultaneously to improve the so far antonymic goals: generate savings transport costs and to reduce the greenhouse improving the environmental impact and the gases emission for transportation activities service Cargo pooling with Cinatis Way 22
  23. 23. For further information, please contact us at contact@cinatis.com

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