ECR Europe Forum '08. Road map to sustainable transport

Sustainable Transport Project

Fewer and Friendlier Miles

Simon Pearson – AsdaPatrice Minzolini - Cadbury

• Our Ambition

• The Sustainable Transport Road Map

• Best Practice in Action

• Role Modelling the Way

• Call to Action

• Questions

The next 90 minutes...

Efficient Load Fill

Efficient Deliveries

People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Sustainable transport road map & self assessment tool

• Environment

Why sustainable transport?

20% CO2 reduction 2020 – EU Target

• Environment

• Scarce resources


• Environment

• Scarce resources

• Social - disposable income


Sustainable transport priority project team

Retailers (9):• Alliance Boots, Asda Wal*Mart, Carrefour,

Coop Italia, Cora, ICA, MetroICA, Metro, Rewe, Tesco

Manufacturers (17):• Bacardi, Barilla, Beiersdorf,Beiersdorf, Cadbury,

Colgate, Energizer,Energizer, Henkel, Kimberly-Clark, Kraft Foods, LL’’OrOrééalal, Mars,Mars, Nestlé, PepsiCo, P&G, Reckitt-Benckiser, Sara Lee, Unilever

Service Providers (6):• DHL, Emonscargo, Kühne & Nagel, LKW

Walter, Number1 Logistics Group, Isotrak

National ECR’s and other organisations (9):• ECR Denmark, France, Russia, UK, GS1

Germany• GCI, GS1, Euro Commerce, Institute of

Logistics

• Inspirational

• Inclusive

• Practical

• Deliverable

Inspiring hundreds of companies to deliver fewer friendlier miles

To help companies in the consumer goods supply chain to reduce the environmental impact of transport in Europe, in a way that is socially and economically sustainable, demonstrating commitment to make a difference now!

Inspiring hundreds of companies to deliver fewer friendlier miles

To help companies in the consumer goods supply chain to reduce the environmental impact of transport in Europe, in a way that is socially and economically sustainable, demonstrating commitment to make a difference now!

Our ambition for this project…

What do we want from this session…

• Inform

• Inspire

• Engage

• Recruit

What would we like you to do next…

Go make a difference tomorrow:

• With your own fleet, or..

• With your carriers, or..

• With your trading partners

…and here is how

Sustainable Transport Road Map

Matt Clark, Director Boxwood

Understanding of road map structure

• Purpose

• Structure

• Using the road map

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Purpose

• Pragmatic tool

• Not a blue book

• Make a difference Now!

• Road Map

• Build plans for improvement

Structure - road map

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Using the road map

• Internally • Collaboratively • Build a plan for

improvements

Collaboration Matrix

Educate

Assess

Plan

Execute

Measure

Report

RetailersM

anuf

actu

rers

0 Many

Many

Internally Focussed

ExternallyFocussed

Using the road map

• A graphical assessment of where you are

0

1

2

3

4

The Benefits of ModularStandards

A Flexible Approach to TransitUnits

Load Planning

We Share and Collaborate

Route Planning

Our Drivers Make the Difference

Organising for SustainabilityVehicle Capacity

Fuel Economy and Emissions

Sustainable Transport by Design

Modal Sw itch

Information Sharing

Industry Measures

Route Planning

Your response indicated your organsation is at level 1

To get to the next level you will need to ensure:-

- Drivers are provided with a set of generic route cards periodically giving them the lowest mileage route for principal journeys- There is some measurement and monitoring of actual miles run vs. minimum possible mileage by transport route with performance management by exception- Load planning is a combination of manual process and transport planning software which attempts to optimise drop sequence and appointment times to minimise miles run

• A focussed action plan

Using the road map

• Internally • Collaboratively • Build a plan for

improvements

Collaboration Matrix

RetailersM

anuf

actu

rers

0 Many

Many

Internally Focussed

ExternallyFocussed

Educate

Assess

Plan

Execute

Measure

Report

Bringing The Road Map To Life

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

Tesco: Efficient Deliveries

We Share and Collaborate, and Route PlanningNick McCurtin

We share and collaborate

Less than truckload shipments are subject to consolidation with… a limited range of collaboration partners to improve vehicle fill

Stores

Washington Distribution Centre

Legend

We share and collaborate

Transport structure is being developed to enable inbound and outbound legs to be managed as one integrated operation

• Maximised fills both ways• Reduced empty running• Maximised driver hours / WTD• Reduces carbon footprint• Increases cases delivered per Kg of CO2 • Reduce Tesco fleet and drivers

• Shorter mileage• Maximised fills both ways• Environmentally friendly

Doncaster, Goole or Middlewich RDC

Washington Fowler Welch Coolchain Hub

North East storeNorth East store North East storeNorth East storeNorth East supplier

• 19 small stores• save 22,000 km per week • 1,000,000 km / year• Reducing Transport cost

per case by over 20%!

• 19 small stores• save 22,000 km per week • 1,000,000 km / year• Reducing Transport cost

per case by over 20%!

Route planning

The measurement and monitoring of actual miles run vs. minimum possible mileage by transport route is fully automated…

Poorly performing vehicles are highlighted

… with a robust performance management process

Actual v plan reporting

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

People: Driver Performance

Sustainable TransportMartin Kvych

The European Transport Organisation

Key Success Factor: Carrier Integration

Equipment(yearly investment > € 24.000.000)

SystemsIT, Telematic and Planning-Tools,Petrol Credit Cards etc.)

PeopleDirect personal contact with alldrivers daily. Communication in native languages of drivers


Contract carrier management

LKW WALTERDriver Training Programme

LKW WALTER Driver Handbook

Carrier and Driver evaluation

Key Success Factors: Training and Coaching



We Care For The Quality & Performance Of Our Drivers!

Available in 17 (!) languages

LKW WALTER Driver Training Programme

(BBS Safe Driving of Road Freight Vehicles)

LKW WALTER Driver Handbook

(1st edition 1995 – regular updates)



FIT :Fahrer-Informations-Tage

Driver Training Days

Driver training daysin 17 countries



Transport partner audits and evaluation

Number of audits per year

6,02

1

6,32

4

8,36

6

11,0

82

11,5

270

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007

(A-rating)

(B-rating)

(C-rating)



• The driver is the representative of LKW WALTER and our customers!

• We recognise the driver as an important player in the supply chain!

• Defensive and Fuel efficient driving substantially contributes to – safety on roads – fuel savings – greater profitability– lower CO2 emissions


• Fuel efficiency can be increased by up to 10% through driver training

• Fuel efficiency can be increased by up to 10% through driver training

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

Emons Cargo: Technology

Vehicle CapacityWillem-Jan van Vorstenbos

Vehicle specification – friendlier miles

Friendlier miles

• Less fuel consumption– Overcoming air resistance (40% impact)– Overcoming rolling resistance (60% impact)

• Cleaner exhaust through filters and catalysts / latest engine technology• Consuming less fuel is the only way to reduce CO2 / km

139 m34 m.

2,55 m.13,60 m.

40 tons

Vehicle specification – fewer miles

Fewer miles – more cargo per trip

• Increased carrying capacity through:– Smaller wheels – more height / more cubic capacity– Lighter materials – less tareweight / more payweight– Double loading – more length– Trailer steering – more length

‘Available’

‘Standard’ payload• 24 tons• 89 m3• 13,20 m. floor

Vs.

Why not use all that is available ?

Friendlier miles:• Euro 5 engine (latest technology)• Optimised aerodynamicsFewer miles:• Very low ground clearance (30 cm.)• Individual wheel suspension (no axles)• Double Deck vehicle:

– Two decks of 180 cm. each– Up to 67% more pallets per load

Example optimised vehicle: 2WIN Trailer

10% less fuel40% less CO2

10% less fuel40% less CO2

>> Live demo at the marketplace <<

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

L’Oreal: Network Design

Sustainability by DesignMartin Motte

Designing sustainable transport into the supply chain:

• Sharing platforms between different brands (L’Oreal, Garnier, Maybelline)

• Optimizing the network to improve lead time, load fill, frequency of deliveries

• AND decreasing overall miles?

Supply chain network design

Initial situation:• 10 Factory DCs

– 33 National DCs• Shipment once to 5

times a week (27,000 shipments/yr)

• Lead time between J+1 and J+12

• 23 Millions km/year with trucks (20Kt CO²)

• How can we optimize the network design?

Supply chain network design

Current location of Commercial DCs versus Demand Areas

Commercial DCs Shipment density (Dm3/km²)

Identifying demand density

Hubs located where both demand and production density are high

• Hub = mutualisation of manufacturing and national DCs

• Full trucks back and forth between hubs (Shuttles)

• Consolidation of flows between different factories

• Increased delivery frequency

• Speeding up European flows (cross- docking)

• 2 KT C0² total reduction• 2 KT C0² total reduction

Hub based network design

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

Nestlé: Transport Modes

Modal SwitchMartin Weder

• Factories / Warehouses without railway connections

• Use of train / truck or barge / truck combinations to enable sustainable transport

• Examples from Germany

What we do

Road to Inland Waterways

• 1700 truck loads of green coffee are transported by barge / truck from Rotterdam to the factory in Mainz

• = 560,000 KMs Saved annually• = 340 T’s CO2 saved annually

• 1700 truck loads of green coffee are transported by barge / truck from Rotterdam to the factory in Mainz


• 600 truck loads of Libby's canned fruits are transported by barge / truck from Rotterdam to the distribution center in Lüdinghausen


• 600 truck loads of Libby's canned fruits are transported by barge / truck from Rotterdam to the distribution center in Lüdinghausen



• 300 truck loads of export products are transported by barge / truck or train / truck from the factories Mainz and Singen to Rotterdam


• 300 truck loads of export products are transported by barge / truck or train / truck from the factories Mainz and Singen to Rotterdam



Road to rail

• 600 truck loads of Buitoni pasta are transported by train / truck from the factories in Italy to the German distribution centers.


• 600 truck loads of Buitoni pasta are transported by train / truck from the factories in Italy to the German distribution centers.


TOTAL ANNUAL SAVINGS!!Rail & Waterways• = 1,300,000 KMs • = 800 T’s CO2

TOTAL ANNUAL SAVINGS!!Rail & Waterways• = 1,300,000 KMs • = 800 T’s CO2

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Testimonials

Cora: MeasurementIndustry Measures

“How the French FMCG industry measures its Fewer Friendlier Miles”

Remi Sourin

Identify partners in order to make more efficient load fill and more efficient deliveries

ECR Transport cartography

310 manufacturers and retailers DCs & 54 companies listed

ECR Transport cartography

310 manufacturers and retailers DCs & 54 companies listed

Also available for multiplayer CMI, multidrop, sandwich pallet reduction, modal transfer & multi-manufacturer DC

Assess and choose the better solutions

• Since the 1st of January 2007, has been saved

• Have contributed to these savings

– AUCHAN, CADBURY, CARREFOUR SPC, CARREFOUR HM, CASINO, CORA, MATCH, SARA LEE, SYSTEME U

ECR France Green Dashboard

Promote the action put in place to consumers, citizens and government

Liters of gasoline

Tons of CO2

vehiclesxkm

Role Modelling the Way: ASDA & Cadbury

Efficient Load Fill


People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Asda & Cadbury role modelling the way

Progress to date

• Backhauling– More than 5000 deliveries / year

– 4 warehouses concerned

• Modal Shift– 10% to be converted to rail.

• Supply teams jointly working

on load fill & pallet heights

• Cadbury warehouse capacity

built into ASDA planning models

• Established supply chain

alignment reviews

Savings :360 000kms

108 000 liters of fuel

284 tons of CO²

Call to Action

Recap

• The right thing

• Practical tool kit

• Not just theory

• Role modelling the way

So how did we do…

• Inform

• Inspire

• Engage

• Recruit

And what are you going to do next...

Go make a difference tomorrow:

• With your own fleet, or…

• With your carriers, or…

• With your trading partners

Hall 12 Stand 05 ... look for the Truck!www.ecrnet.org

Questions?

www.ecrnet.org

ECR Europe Forum '08. Road map to sustainable transport

Business

way of transport

road map build plans

fewer companies

difference commitment

action role

action questions

theconsumer goods supply

tesco metro manufacturers