Presentation at BESFACT Event June 2012 on the topic of "Eliminating waste in Logistics, Mix Move Match - a good practice to address structural waste in many Supply Chains".

1. Eliminating waste in Logistics
Mix Move Match –
a good practice to address structural waste in many Supply Chains
Amsterdam, 22 June 2012
Presenter: Jaco Voorspuij

2. Logistics Chains abound with waste
Waste comes in many shapes and forms
 Wasting fuel
 Doing unnecessary duplicated work/activities:
 Relabeling pallets and cartons by various parties involved in end-to-
end movement of Goods
 Rekeying of information already captured elsewhere
 Correcting errors and solving confusion resulting from above wasteful
practices.
 Simply not utilising available transportation capacity due to various
structural decisions made by key players in the Supply Chain.

3. How bad is the structural waste actually

4. Mix Move Match Concept – The challenge

5. Mix Move Match – The Concept Overview
• Build Customer-specific Delivery Units as close as possible to the Customer
(Delivery point) i.e. the Order Recon Hubs.
• Option to combine materials (cartons) from multiple origins onto a single
Delivery (Unit).
• Based on 3M pilot but targeted to be SHIPPER-INDEPENDENT.
• Idea is to have a network of Recon Hubs across Europe (and later beyond)
close to Customers to minimise empty miles and maximise fill factors on
movements from Hubs to Customers.
• The actual reconstruction activities in the Hubs require a central standard
application (so-called “Mix Move Match” <M3> application).
• Now jointly developed by 3M, DHL and iCargo program
• M3 application hosted by independent software service provider not linked
to any Shipper or LSP.
• Platform therefore fit for use for multi-shipper and multi-LSP scenarios to
deliver collaborative and innovative SC solutions.
THE PRIZE is GREAT
Optimized fill rates on long distance Transport

7. Quick run through of Mix Move Match Process
End Customer Order reconstruction
Pick by product
Label each box
Pack on
huge mixed
pallets
Order
Reconstruction
Customer
Customer
Customer
EDC Carrier Hub
Mix
Products
Move
Full Pallets in
Full Trucks
Match Products by
Customer Delivery

8. Quick run through of Process in Reconstruction Hubs
Or: Why are Reconstruction Hubs different from Freight cross-docks?
Input
Inbound
Validation
Order/Product
Reconstruction
Outbound
Validation
Output
Sorting done based on pre-planning that applies business
rules for reconstructing cartons/pallets from multiple inbound
Receipts (from same or multiple shippers).
Entire process is strictly controlled by RF-scanning of each
LU to avoid errors whilst ensuring execution is highly efficient.
Each Carton/pallet (Logistic Unit - LU) is uniquely identified by barcode (SSCC).
During Inbound each one is checked by RF-scanning to confirm Receipt.
Shipper will send EDI in advance of LU to be handled by the Recon Hub.
Discrepancies are immediately captured and corrected
(in collaboration with the Shipper)

9. What does a Reconstruction Hub look like?

10. What issues does Mix Move Match address
Waste comes in many shapes and forms
 Wasting fuel
 Doing unnecessary duplicated work/activities:
 Relabeling pallets and cartons by various parties involved
in end-to-end movement of Goods.
SSCC labels attached at shipper used end-to-end
 Rekeying of information already captured elsewhere
All parties involved use common M3 platform and GS1 XML Industry
Standard messages.
 Correcting errors and solving confusion resulting from
above wasteful practices.
Using the open, independent , comprehensive and
consistent GS1 system of standards avoids confusion and
errors and associated time and money waste.
 Simply not utilising available transportation capacity due to
various structural decisions made by key players in the
Supply Chain.
In effect only half the number of trucks is now required to
move the same volume of goods over the long haul.

11. Mix Move Match – other potential areas of application
• Air and Ocean (de)consolidation environments needing tight process controls
to ensure “integrity” of Goods arriving at and leaving the (de)consolidation
locations
• Merge-in-Transit and X-dock solutions involving short-term storage and or
outbound consignments consisting of both warehouse stock and cross-
docked Goods.
• Sorting Sea-containers received at EDC before warehouse put-away.
• Urban Freight Consolidation hubs.

12. Suitable Clients – selection criteria
 Significant number of (small) LTL deliveries to their Customers.
 Significant “issue” with fill rates (empty miles).
 Significant issue with incomplete or incorrect Customer deliveries.
 Need to combine Goods from multiple sources for single delivery to Customer.
 Significant volumes of unsorted loose cargo delivered to warehouse.
 Clients willing and able to barcode label cartons/pallets and provide EDI in advance.
 Clients willing to allow combination of their Goods with other Clients for single
delivery to common Customer.