Session 37 Peter Franke

The bestLog ProjectAchievements and Future Challenges

Linköping, January 2010

Program: Sustainable Surface Transport

Official Title: Logistics Best Practice

Principal: DG TREN

Budget: 3.05 million Euro

Duration: 48 months (until 02/10)

Consortium: 9 research institutes from 9 European countries including

Establish a European Platformfor collection and active dissemination

of Good Logistics Practice to

The bestLog Project

• Improve Supply Chain Practice • Improve Supply Chain Education• Reduce Differences across Europe• Set Standards• Create growth and jobs• Achieve better match between EC policy and business

decisions

The bestLog Project

Case StudiesCases available onlinePrinted publication in preparation

Online databasesEducation, Logistics Media, Logistics Events, Logistics Awards

bestLog StandardDevelopment of a new European Logistics Sustainability Certificate

Networking OpportunitiesMember Area, Forum

Book: “Sustainable SCM”To be published in late 2009Including training packages

Workshops and ConferencesCase Presentations Workshop

Issues, e.g. Standards, KPI, Policy, Knowledge Transfer

www.bestlog.org

The bestLog Project

Case StudiesCases available onlinePrinted publication in preparation

Defining sustainable Supply Chain Management (SSCM)

Volume

Timing and location

Noise

EmploymentTrainingJob security

Employees

Toxic, hazardous emissionsAccidentsWorking conditions

Health and safety

Social Level 3Social Level 2

Volume

Timing and location

Noise

EmploymentTrainingJob security

Employees

Toxic, hazardous emissionsAccidentsWorking conditions

Health and safety

Social Level 3Social Level 2

Fuel consumptionWater consumptionLand useEnergy consumption

Natural resources utilisation

Waste reduction% of materials/products recycledBio-degradable materials used

Waste and recycling

CO2 emissionOther pollutants emissions

Emissions

Environment Level 3Environment Level 2

Fuel consumptionWater consumptionLand useEnergy consumption

Natural resources utilisation

Waste reduction% of materials/products recycledBio-degradable materials used

Waste and recycling

CO2 emissionOther pollutants emissions

Emissions

Environment Level 3Environment Level 2

Assessment metrics

Response to customer needsResponse to market changesFlexibility

Responsiveness

UtilisationProductivityCost reduction

Efficiency

Quality of products and servicesCustomer service levelAvailability

Quality

Economic Level 3Economic Level 2

Response to customer needsResponse to market changesFlexibility

Responsiveness

UtilisationProductivityCost reduction

Efficiency

Quality of products and servicesCustomer service levelAvailability

Quality

Economic Level 3Economic Level 2

Assessment process

Three-Stage Process• Validation

• Positioning

• Evaluation

Case collection – Companies and SCM Areas covered

Support

Market / Customer/

Product

NetworkDesign

TacticalScheduling

Procurement Production

Warehousing Transport

Distribution

IT-SystemsFinance Systems

CommunicationSystems

HRSystems

Logistics Planning

Logistics Operations

Strategy

Reverse

Case Studies – Two Examples

The Air-Hunt Competition:IKEA’s “Glimma” tea candles

• IKEA launched a project called ”The Air-Hunt competition” in 2004.

• 15 million tea candles sold each year worldwide.

• More units per pallet: from 250 bags on pallet to 360 on each pallet.

• Decrease in amount of pallets from 60,000 to 42,000 = 18,000 or approximately 30%

• Transport demand reduced by 800 TEU p.a. or up to 400 semi-trailer trucks

• Required Warehousing space reduced by 18,000 m3 decrease

Transport more with less pollution:Mercadona, Spain

• The biggest supermarket chain in Spain transports non-food and non-fresh goods between Valencia and Sevilla by rail

• Contract duration: until 2010• 10,000 fewer truck jouneys

per year• CO2 reduction of 12,000

tons p.a.• No cost saving for

Mercadona but external cost to society reduced by approx. 13 Mio. € p.a.

Provider warehouses (Sevilla)

Distribution Center (Valencia)

Rail terminal

Rail terminal

RENFE-freight

ACOTRAL

ACOTRAL

• 220.000 tons and 416 trains a year

• 40’ y 45’ Containers, 800x1200 mm palets

• 10.000 truck ways less a year

Case Studies – Further Examples

Improving Efficiencies within a scheduled transport network – BT, UK

• Provider of telecommunications services

• BT required a solution to maximise load utilisation to meet their CSR obligations to minimise carbon footprint within their transport division

• BT has opened up its long-haul transportation network to external users

• Improved vehicle utilisation – and associated profitability

• Reduced Carbon Footprint through a simple and effective collaborative mechanism

• Freight exchanges hence contribute to the reduction of traffic volumes and the sustainability of logistics

Transport of healthcare products via inland waterway: Baxter, Belgium

• Multinational pharmaceutical company

• Baxter has European DC in Lessines 111 km from Antwerp and 215 km from Rotterdam

• Delivery times from Ports of Antwerp and Rotterdam where highly unreliable

• With river barges, reliability was achieved, at lower cost with less CO2 Emissions – combined with a 24h service

The case template is completed -example

The bestLog Project

Case StudiesCases available onlinePrinted publication in preparation

Online databasesEducation, Logistics Media, Logistics Events, Logistics Awards

Logistics Education Directory

• Logistics Education Directory now contains more than 900 courses

• DetailedCourseProfiles

14

Logistics Media Directory

Unique: Europe-wide directory of Logistics Media with direct links!

15

List of European Logistics Awards

Unique: Europe-wide directory of Logistics Awards with direct links!

The bestLog Project

Case StudiesCases available onlinePrinted publication in preparation

Online databasesEducation, Logistics Media, Logistics Events, Logistics Awards

Book: “Sustainable SCM”To be published in late 2009Including training packages

17

BestLog Book – The Structure

The textbook offers a general overview on sustainable supply chain management, illustrated by the bestLog Cases

The bestLog Project

Case StudiesCases available onlinePrinted publication in preparation

Online databasesEducation, Logistics Media, Logistics Events, Logistics Awards

bestLog StandardDevelopment of a new European Logistics Sustainability Certificate

Networking OpportunitiesMember Area, Forum

Book: “Sustainable SCM”To be published in late 2009Including training packages

Workshops and ConferencesCase Presentations Workshop

Issues, e.g. Standards, KPI, Policy, Knowledge Transfer

bestLog after 2010

from January 2010

• An International Not for Profit Association based in Brussels

• A voluntary body, independent of any government or other body. All its officers are volunteers

• A federation of over 30 professional associations of all kinds in Europe, and more elsewhere

• Provides a set of European standards for logisticians and a certification scheme through the European Certification Board for Logistics - ECBL

• Other roles include: providing an objective forum for logistics professionals to work together; encouraging excellence; and, promoting logistics

THE EUROPEAN LOGISTICS ASSOCIATION - ELA

ELA

The Concept – the over-arching “umbrella” of ELA and ECBL

ECBL ELAbestLog & back office

The ELA bestLog PlatformEuropean Logistics Best Practice Platform

People Certification

Products delivered with Partners where necessary

Products:BestLog Handbook

Education database

bestLog cases

bestLog Partners

bestLog Certificate

Relations with other agencies & Partners

Where does ELA bestLog fit?

THE ELA NETWORK

• ELA’s National Member Associations – NMAs – play a vital role in the ELAbestLog Community

• As a link between international and national activity

• Networking and events

THE ELAbestLogCOMMUNITY

Working together to

develop and support the ELAbestLog

Platform

Working together to share and develop

logistics best practice

ELAbestLog – A Network of Partners

ELAbestLog Academic Partners

ELAbestLog Commercial Partners

THE ELAbestLog PLATFORM

ELAbestLog Community Partners

The Invitation

• Firms which have supplied case studies are automatically becoming founding member of the Community and will receive immediate access to all ELAbestLog Community benefits

• All firms can apply for membership– Through the national member associations

– Criteria currently: demonstration of role and activity in the European logistics community, and a commitment to sharing best practice within the ELAbestLog Community

– A fee to cover the operating costs of the community related to the nature of the applicant, (ELA NMA membership, their size, role and purposes), will be payable

– A participant’s willingness to provide and share examples of best practice in logistics to the benefit of other ELAbestLog Community Partners will be fundamental

Benefits• There will be an opportunity for interested firms to participate in the ELAbestLog

Advisory Board• This is the first opportunity for firms to get directly involved in a logistics community

with a voice in Brussels• Access to the bestLog network with its links to national logistics associations• Access to the bestLog certificate

BestLog Project Office:

Berlin University of TechnologyProf. Dr.-Ing. Frank StraubeStrasse des 17. Juni 135

H90 - bestLog10623 Berlin - Germany

bestLog Secretariat: Tel.:     +49 (0) 30 314 – 29 980Fax:     +49 (0) 30 314 – 25 992

Balkan Cetinkaya (cetinkaya@logistik.tu-berlin.de)Peter Franke (franke@logistik.tu-berlin.de)

throughThe European Logistics Association

Chief Executive ELAbestLogela@elalog.org

www.bestlog.org

Contact

Some Expectations and Realities

“Firms will not share their good practices”

“Transport cost is too low a portion of total cost in most firms for people to care”

“Firms will only adopt sustainable logistics practices if they are economically beneficial - The opportunity to go to the market with “environment-friendliness” is not sufficient as an incentive”

Economic, Social and Environmental Benefit of Individual Practice

Logistics Competence, e.g. in Transport Optimisation

Economic

+ Social

+ Environmental

Benefit

Manual Routing and Scheduling; No inbound-outbound sequencing;

no optimisation of utilisation; etc.

IT Based Transport Planning and Route

Optimisation; Loading by Optimisation tools; etc.

Collaboration; Full co-ordination and sequencing of inbound and outbound

transports; etc.

bestLog

SocialOptimum

Status Quo Vision

of individual

optimal solutions

BestLogTarget

Intervention

SocialOptimum

Status Quo Vision

of individual

optimal solutions

BestLogTarget

InterventionIntervention

bestLog

best

Log

Economic, Social and Environmental Benefit of Individual Practice

Logistics Competence, e.g. in Transport Optimisation

Economic

+ Social

+ Environmental

Benefit

Manual Routing and Scheduling; No inbound-outbound sequencing;

no optimisation of utilisation; etc.

IT Based Transport Planning and Route

Optimisation; Loading by Optimisation tools; etc.

Collaboration; Full co-ordination and sequencing of inbound and outbound

transports; etc.

bestLog

SocialOptimum

Status Quo Vision

of individual

optimal solutions

BestLogTarget

Intervention

SocialOptimum

Status Quo Vision

of individual

optimal solutions

BestLogTarget

InterventionIntervention

bestLog

best

Log