“Georkestreerde horizontale               samenwerking”         Duurzame logistiek door co-modaliteit en               goe...
World Economic Forum                                Supply Chain Study 2009         ≡ 24% of good vehicles in the EU are r...
How to react?         ≡       Regulation             ≡         e.g. smart road pricing, the Eurovignette directive,…      ...
Vision on logistics                                              Sustainability         ≡ Since 2006 : Trade off          ...
Sustainability?         ≡ Focus on climate – Carbon Footprint            ≡ CO2 eq            ≡ Long term – global         ...
Climate Effect         Carbon footprint Multimodal Transport                                             TRI-VIZOR, 2010. ...
Vision on logistics         ≡ Only cross-company collaboration, consolidation and           bundling of flows can further ...
Bundling and consolidation         Point-to-Point: simple         Low effectiveness         Low efficiency         Low sus...
Horizontal collaboration         The global strategic objectives for the consumer goods         industry:         1. Make ...
The making of The Worlds First         Orchestrated Horizontal Collaboration© 2011
What is Orchestration?         ≡ Synchronizing supply chains of multiple shippers and generate           substantial gains...
Orchestration guarantees         ≡ Impartial moderation (trustee and referee) of the community of           shippers      ...
Cross Supply Chain®         Consolidation Methodology© 2011
Cross Supply Chain®                                                                    Database                  Looking f...
Multilateral contract                                   Tri-partite multilateral contract             Extended Carrier Con...
Orchestration              Process© 2011
ORDER DATA                               CAPACITY DATA                                                                    ...
State of the art Cloud Computing© 2011
Horizontal collaboration – the process                                 October 2010         ≡ Scoping to 8 destinations   ...
Horizontal collaboration – the process                               December 2010         ≡ Important 3PL selection crite...
Horizontal collaboration –                                        the process Major Issues         ≡ Gain sharing mechanis...
Horizontal collaboration – the process                                    March 2011          ≡ Startup lane: Romania     ...
Horizontal collaboration – the process                                      April 2011         First results Romania      ...
Horizontal collaboration – the process                               May - June 2011         ≡ Systematically adding new d...
Create a (supply) chain breakthrough...           ≡ Applying multimodality & co-modality through bundling of freight flows...
Bart Vannieuwenhuyse              TRI-VIZOR NV         Waterfront Research Park               Galileilaan 18              ...
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Logistieke Barcamp 9 juni 2011 - Tri-Vizor

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Transcript of "Logistieke Barcamp 9 juni 2011 - Tri-Vizor"

  1. 1. “Georkestreerde horizontale samenwerking” Duurzame logistiek door co-modaliteit en goederenstroombundeling Logistieke Barcamp Innovatiecentrum Limburg - PHL Bart Vannieuwenhuyse 09-06-11© 2011
  2. 2. 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
  3. 3. 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
  4. 4. Vision on logistics Sustainability ≡ Since 2006 : Trade off between 3 supply chain forces further decreases optimisation and improvement potential Supply Chain Optimisation Efficiency Effectiveness© 2011
  5. 5. Sustainability? ≡ Focus on climate – Carbon Footprint ≡ CO2 eq ≡ Long term – global ≡ But also pollution – the environment - health ≡ NOx, SO2, PM10,… ≡ Short term - local© 2011
  6. 6. Climate Effect Carbon footprint Multimodal Transport TRI-VIZOR, 2010. Rule of thumb Truck – 1 km – 1 kg CO2eq Train – 1 km – 12 kg CO2eq© 2011
  7. 7. Vision on logistics ≡ Only cross-company collaboration, consolidation and bundling of flows can further improve efficiency, effectiveness and sustainability simultaneously Effectiveness Supply Cross Chain Supply Sustainability Supply Chain Supply Chain Chain Optimisation Supply Chain Efficiency© 2011
  8. 8. Bundling and consolidation Point-to-Point: simple Low effectiveness Low efficiency Low sustainability Decoupling: challenging High effectiveness High efficiency through volume High sustainability© 2011
  9. 9. Horizontal collaboration The global strategic objectives for the consumer goods industry: 1. Make our business more sustainable 2. Optimize a shared supply chain 3. Engage with technology-enabled consumers 4. 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
  10. 10. The making of The Worlds First Orchestrated Horizontal Collaboration© 2011
  11. 11. 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
  12. 12. 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
  13. 13. Cross Supply Chain® Consolidation Methodology© 2011
  14. 14. Cross Supply Chain® Database Looking for collaboration partners among: ≡ Almost 80 companies (mostly blue chip) ≡ Almost 50 000 transport lanes LSP Pharma & Other Healthcare High Tech Automotive Chemistry FMCG & Food© 2011
  15. 15. Multilateral contract Tri-partite multilateral contract Extended Carrier Contract Contract of means Order status, POD • Invoicing services Clauses with Shipper 1 Invoice, Reporting • Planning mechanisms for • Gain sharing calculations • Gain sharing Shipper 2 • Community management • Volume variations Individual orders • Expansion, entries & exits • Entry/Exit Shipper n • Reporting Services • Continuous improvement • Advisory Mandate Orchestration Services POD, Invoice Carrier Combined orders, Reporting© 2011
  16. 16. Orchestration Process© 2011
  17. 17. ORDER DATA CAPACITY DATA TARIFF DATA Shippers Carriers / 3PLs Carriers / 3PLs XML e-mail Booking platform (Transwide,…) SUPPLY CHAIN REPORTING INVOICING VISIBILITY Overview combined shipments WEEK 43 Delivery Capacity Additional Total Pallet Opportunity POLAND Company Order no Pallets Savings date Cost Costs cost price 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 Delivery Capacity Additional Total Pallet Opportunity POLAND Company Order no Pallets Savings date Cost Costs cost price costs Individual Shipments X 80174989 10 8/11/2010 950 950 95,0 198,5 Individual Shipments Y 20100615 23 8/11/2010 1470 1470 63,9 456,5 200 Total Individual Shipments 33 2420 2420 73,3 Combined Shipment X+Y 33 8/11/2010 1440 325 1765 53,5 655,0 200 Delivery Capacity Additional Total Pallet Opportunity HUNGARY Company Order no Pallets Savings date Cost Costs cost price costs Individual Shipments X 80174989 10 8/11/2010 1290 1290 129,0 311,7 Individual Shipments Y 20100820 20 8/11/2010 1770 1770 88,5 623,3 Total Individual Shipments 30 3060 3060 102,0 Combined Shipment X+Y 30 8/11/2010 1800 325 2125 70,8 935,0 0 Delivery Capacity Additional Total Pallet Opportunity CZECH REPUBLIC Company Order no Pallets Savings date Cost Costs cost price costs Individual Shipments X 80185555 5 8/11/2010 850 850 170,0 155,8 Individual Shipments Y 20101150 25 8/11/2010 1350 1350 54,0 187,5 Total Individual Shipments 30 2200 2200 73,3 Combined Shipment X+Y 30 8/11/2010 1650 325 1975 65,8 225,0 0 Community Management Meeting … TOTAL WEEK 43 Company Pallets Capacity Additional Total Cost Costs cost Pallet price Savings Opportunity costs Individual Shipments X 127 17500 17500 137,8 1460,6 Individual Shipments Y 430 45800 45800 106,5 4945,4 Total Individual Shipments Combined Shipment WEEK 43 X+Y TOTAL COST SAVINGS 557 557 63300 51369 63300 5525 56894 113,6 102,1 6406,0 0 Community Portal Shipper X € 12.972,2 € 1.460,6© 2011 Shipper Y TOTAL COST € 43.921,8 € 4.945,4 € 56.894,0 € 6.406,0
  18. 18. State of the art Cloud Computing© 2011
  19. 19. 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
  20. 20. Horizontal collaboration – the process December 2010 ≡ Important 3PL selection criteria ≡ All time availability of capacity ≡ Pharma qualified ≡ Temperature controlled ≡ Multimodal ≡ Familiar with regional issues in Eastern Europe© 2011
  21. 21. Horizontal collaboration – the process Major Issues ≡ 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© 2011
  22. 22. Horizontal collaboration – the process 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? 320 Sibiu 450 Brasov 50 160 1600 Braine Lessines Genk Oradea 570 Chitila Truck Train Truck 580 Bucharest 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
  23. 23. Horizontal collaboration – the process 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
  24. 24. Horizontal collaboration – the process May - June 2011 ≡ Systematically adding new destinations ≡ Continuous improvement of interfaces and processes ≡ First talks with new community members© 2011
  25. 25. 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
  26. 26. 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© 2011
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