Sanitation logistics
Heiko Gebauer
Group Leader
Business Innovation
Environmental Social Sciences (EAWAG), Zurich, Switzer...
Logistic experiences

Spare parts logistics in
Asia (China)

Consumable distribution in
Europe

UK
GE
FR CH AU
SP

IT

TU
Agenda

• How do successful practices overcome the
logistic and distribution challenges in lowincome countries?

• What lo...
Dabawalla – lunch box distribution in Mumbai
http://priusfallacy.files.wordpress.com/2012/08/dabba.jpg
What can we learn from the Dabbawalla system?

• Logistics is build around people rather than
technologies
• Challenging l...
Coca-Cola – Manual Distribution Centers in Africa
What can we learn from the Coca-Cola system?

•

Entrepreneurship does not emerge for free – a
dedicated education and con...
Agenda

• How do successful practices overcome the
logistic and distribution challenges in lowincome countries?

• What lo...
Sanitation logistics @ Eawag
Blue diversion
(Re-invent the toilet challenge)

Vuna
(Valorisation of Urine Nutrients
in Afr...
Logistics for linking blue diversion and
resource recovery plant
• Satellite image of Kyebando-Kisalosalo
slum
• GIS analy...
Source: Rafael Schmitt (2011)
Key indicators
• Distance access -> access [km]
• Distance collection -> RRP [km]
Effective Working hours/day
• Required s...
Logistics for linking blue diversion and
resource recovery plant

Source: Rafael Schmitt (2011)
One cent per user & day for the logistics

Source: Rafael Schmitt (2011)
Sanitation logistics @ Eawag
Blue diversion
(Re-invent the toilet challenge)

Vuna
(Valorisation of Urine Nutrients
in Afr...
Urine collection in Cliffdale – a rural
development area in Durban municipality (1)
Urine collection in Cliffdale – a rural
development area in Durban municipality (2)
Business model thinking guides the logistic
approaches

Decentralized Sanitation
Product Management
Model (DeSam)

How can...
Skate to where the VALUE will be ...
Price for a single cup of
coffee ($)

 Experience x80

5
 Service x52

4
3
2

 Con...
Skate to where the VALUE will be ... (2)
Solid fertilizer prices
CHF/kg 30
20
10

< 1 CHF / kg

0
Berry &
fruit
fertilizer...
“Fair-trade” fertilizer (pro-poor)
Key partners
• M-Pesa (South
Africa) (for cashsolution)
• Local communities

Key activi...
Incentive approach
Initial situation
• Drop-off system depends on the
distance between collection point
and UDDT and the i...
“For Durban” fertilizer
Key partners
• Small subcontractors
executing the
logistics

Key activities
Value proposition
• Co...
Institutionalized approach – urine tanks get
collected and emptied
Pilot scale
• EWS created teams picking-up the
urine

O...
“Large” fertilizer user with a social interest
Key partners
• Depending on the
collection
approach

Key activities
Value p...
Agenda

• How do successful practices overcome the
logistic and distribution challenges in lowincome countries?

• What lo...
Sanergy‘s low-tech solution seems appropriate
X-runner’s new key performance indicators
• How many people put the bucket in
front of the house? (Key performance
indicat...
Conclusions
Successful practices

• Logistics is finally about people (collectors &
entrepreneurs) doing it and not resear...
Thank you very much
Sanitation logistics
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Sanitation logistics

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This presentation provides key insights into sanitation logistics. It shows logistic challenges in developing countries. It gives an overview on current projects at the eawag. For further information, please contact Heiko Gebauer (heiko.gebauer@eawag.ch)

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Sanitation logistics

  1. 1. Sanitation logistics Heiko Gebauer Group Leader Business Innovation Environmental Social Sciences (EAWAG), Zurich, Switzerland Associate Professor, Center of Service Research, Karlstad University, Sweden London, 07-10-2013
  2. 2. Logistic experiences Spare parts logistics in Asia (China) Consumable distribution in Europe UK GE FR CH AU SP IT TU
  3. 3. Agenda • How do successful practices overcome the logistic and distribution challenges in lowincome countries? • What logistic approaches are we using at the Eawag? • What are other practices in sanitation logistics?
  4. 4. Dabawalla – lunch box distribution in Mumbai
  5. 5. http://priusfallacy.files.wordpress.com/2012/08/dabba.jpg
  6. 6. What can we learn from the Dabbawalla system? • Logistics is build around people rather than technologies • Challenging logistic tasks can be done!!! („Workers have 40 seconds to load the crates of dabbas onto a train at major stations and just 20 seconds at interim stops“) • Implementing team incentives - Seven to eight mukadams typically aggregated their efforts and constituted a profit centre • Human resource management is a key factor • Zero-failure tolerance • Adapting information management to illiterate staff
  7. 7. Coca-Cola – Manual Distribution Centers in Africa
  8. 8. What can we learn from the Coca-Cola system? • Entrepreneurship does not emerge for free – a dedicated education and continuous business support is necessary • Sense of ownership - let people take care of equipment – selling the liquid rather than bottles • Local entrepreneurs can make distribution much more cost-efficient • Despite a general concept, there is a strong need for contextualizing and localizing the distribution chain • Highly complex distribution chain – instead of endto-end, it is more than single-to-many
  9. 9. Agenda • How do successful practices overcome the logistic and distribution challenges in lowincome countries? • What logistic approaches are we using at the Eawag? • What are other practices in sanitation logistics?
  10. 10. Sanitation logistics @ Eawag Blue diversion (Re-invent the toilet challenge) Vuna (Valorisation of Urine Nutrients in Africa)
  11. 11. Logistics for linking blue diversion and resource recovery plant • Satellite image of Kyebando-Kisalosalo slum • GIS analysis • Determination of route length (e.g., closest facility, service area, and Origin-Destination (OD) cost matrix) • Route planning
  12. 12. Source: Rafael Schmitt (2011)
  13. 13. Key indicators • Distance access -> access [km] • Distance collection -> RRP [km] Effective Working hours/day • Required services/facility • Emptying time per facility • Worker/vehicle • Vehicle costs & lifespan • Maintenance cost • Depreciation rate Source: Rafael Schmitt (2011)
  14. 14. Logistics for linking blue diversion and resource recovery plant Source: Rafael Schmitt (2011)
  15. 15. One cent per user & day for the logistics Source: Rafael Schmitt (2011)
  16. 16. Sanitation logistics @ Eawag Blue diversion (Re-invent the toilet challenge) Vuna (Valorisation of Urine Nutrients in Africa)
  17. 17. Urine collection in Cliffdale – a rural development area in Durban municipality (1)
  18. 18. Urine collection in Cliffdale – a rural development area in Durban municipality (2)
  19. 19. Business model thinking guides the logistic approaches Decentralized Sanitation Product Management Model (DeSam) How can can we create VALUE? KA CR VP KP KR C CS DM R KP – Key Partner, KA – Key Activities, KR – Key resources, VP – Value proposition, CR - customer relationship, DM – distribution & marketing, CS Customer segment, C – Cost structure, R - Revenues
  20. 20. Skate to where the VALUE will be ... Price for a single cup of coffee ($)  Experience x80 5  Service x52 4 3 2  Convenience x6 1 Supermarket Café Nespresso Starbucks
  21. 21. Skate to where the VALUE will be ... (2) Solid fertilizer prices CHF/kg 30 20 10 < 1 CHF / kg 0 Berry & fruit fertilizer Garden fertilizer Balcony Long-term Flower plants fertilizer soil fertilizer Liquid fertilizer prices CHF/kg 30 20 10 0 Flowers Source: Corine Uhlmann Liquid fertilizer Indoor plant Orchis Cacti
  22. 22. “Fair-trade” fertilizer (pro-poor) Key partners • M-Pesa (South Africa) (for cashsolution) • Local communities Key activities Value proposition • Installation of • Creating social collection tanks benefits through a • Marketing of “Fair-trade” urine drop-off fertilizer brand Key resources • Managing money What transfer key resources are required? Distribution • Do-it-yourselfgarden center • Small packages • (online subscription) Key resources • Collection point • Transportation vehicle • Treatment • Branding & marketing skills Marketing • “Branding” fertilizer as a social good • Shop-in-Shop concept Cost structure • Partly subsidized by EWS • Investment & operational costs of the collection points • Transportation costs • Reactor costs (investment & operation) • Branding & marketing, packaging, market development • Incentives for dropping-off the urine Customers • Less price sensitive gardeners • High income • Social responsibility • Flower and inhouse plant lovers Revenue streams • (100%-x) of the fertilizer price can be considered as a donation for the income of poor people (incentives) • x% covers the investment and operational costs
  23. 23. Incentive approach Initial situation • Drop-off system depends on the distance between collection point and UDDT and the incentives Collection points • Percentage (number) of people according to distance to the collection points 3 collection points 7 collection points
  24. 24. “For Durban” fertilizer Key partners • Small subcontractors executing the logistics Key activities Value proposition • Collection & • Replacing existing transportation fertilizer (sub-contracting consumption with and performance a local (municipal) Key resources measurement) fertilizer What key resources are required? • Reactor (operation & maintenance) Customer Customers relationships • City of Durban • Direct relationship • Departments to different city taking care of departments and green areas in the the subcity (e.g. beach contractors doing front, parks, the gardening stadium) Key resources • Training logistic sub-contractors • Treatment Marketing • Internal marketing • Acceptance of the municipality Cost structure • Collection & transportation • Urine treatment and fertilizer production Revenue streams • Existing fertilizer expenditures are re-directed to cover the costs for collecting, treating urine and to produce fertilizer
  25. 25. Institutionalized approach – urine tanks get collected and emptied Pilot scale • EWS created teams picking-up the urine Optimizing • Reconsidering the logistics • Localizing the logistics • Improving the prediction of urine production
  26. 26. “Large” fertilizer user with a social interest Key partners • Depending on the collection approach Key activities Value proposition • Developing such • Promoting the as a strategic social partnership engagement of a • Collection & large fertilizer user Key resources transportation to the municipality What key resources are required? • Treatment Key resources • Treatment reactor • Transportation vehicles • Risk management Cost structure • Large user covers cost for the treatment (investments and operation) and well as parts of the collection costs • EWS subsidies the collection Customer Customers relationships • Large company • Strategic consuming partnership traditional fertilizer between EWS and • Looking for a the customer differentiation in the local market • Differentiation Marketing achieved through • One-to-one social contribution relationship • Customer can use • (e.g., Coca-Cola, Heineken …) its social contribution in the marketing campaign Revenue streams • “Large” fertilizer user does not pay, but rather covers emerging costs
  27. 27. Agenda • How do successful practices overcome the logistic and distribution challenges in lowincome countries? • What logistic approaches are we using at the Eawag? • What are other practices in sanitation logistics?
  28. 28. Sanergy‘s low-tech solution seems appropriate
  29. 29. X-runner’s new key performance indicators • How many people put the bucket in front of the house? (Key performance indicator – measured 16%, goal 60%)? • How many people pay in time? (measured 88%, goal 95%)? Percentage of on-time Payment for Monthly users 100 90 80 70 60 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul
  30. 30. Conclusions Successful practices • Logistics is finally about people (collectors & entrepreneurs) doing it and not researchers simulating it • People AND technologies Eawag • GIS data, logistic approaches, and embedding these into an overall business model Sanitation logistics • Small things make a difference, robust and fool-proofed approaches
  31. 31. Thank you very much
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