logistieke barcamp 9 juni 2011 - tri-vizor
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© 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 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
HUNGARY Company Order no PalletsDelivery
date
Capacity
Cost
Additional
Costs
Total
cost
Pallet
priceSavings
Opportunity
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
CZECH REPUBLIC Company Order no PalletsDelivery
date
Capacity
Cost
Additional
Costs
Total
cost
Pallet
priceSavings
Opportunity
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
…
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
Total Individual Shipments 557 63300 63300 113,6
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
State of the art Cloud Computing
© 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
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
≡ 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
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?
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
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
Horizontal collaboration – the process
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
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