BESTFACT third International Workshop on e-Freight ... · BESTFACT third International Workshop on e-Freight: ... SCP Collaboration ... Monopoli and Barletta

Paolo Paganelli

Bluegreen Strategy (I)

Barcelona, 12.06.2015

Collaborative logistics

in the Mediterranean

1

BESTFACT third International

Workshop on e-Freight:

“Secure information based

collaboration”

Paolo Paganelli, Bluegreen (I), SIL Barcelona, BESTFACT third workshop, June 12 2015 2

The value dimension in logistics

Current collaboration trends

State-of-the-art cases in the mediterranean

Conclusive remarks

Contents


Back to the basics:

Logistics value proposition

Martin Christopher's "Logistics and Supply Chain Management", 1992

Logistics as the key

to become cost and service leaders,

improving both

Value and Productivity


Logistics as usual:

impact on the market

Clients (shippers)

Pressure on reducing costs

Regulators

Enforce eco-social

sustainability

.. still more pressure on

costs

Logistic Services Providers

SMEs in a low-margin

commodity market

Large LSPs better at cost

reduction through

economies of scale Very difficult market

for ICT-based innovations


Past attempts at innovation

SCP

Collaboration / Interoperability

More recent attempts

“The Internet of Things”

RFID / Intelligent Cargo

Future attempts

“The Physical Internet”

Logistics Services Ecosystems

Big Data for consumer-focused logistics

Logistics is a very difficult

market for ICT-based

innovations

Gone Niche

Niche


Market changes

call for collaboration

Post-crisis scenario: selling less of more

More products, from more sources, to more destinations

Lower volumes, less stable supply chains, less “economies of

scale”

Logistic industry challenge

Fixed, dedicated supply chains are valid for times of abundance,

but are less sustainable when volumes decrease and variety

increases

Need rethinking of logistic organizations that were conceived to

move huge quantities of few products to few mass-market

destinations

Restoring the value dimension

Innovative logistics services are needed for more flexible,

responsive and widespread distribution networks, fulfilling the

need for fast and efficient deliveries


Why should we

collaborate?

For sustainability

Increased load factor

Less emissions

Better utilized resources

For market evolution

Faster and more efficient

delivery of smaller shipments

Specialized logistic services,

globally accessible, integrated

but maximizing efficiency on a

local scale

Horizontal Collaboration,

Open logistic networks,

the “Physical Internet”

www.physicalinternetinitiative.org

the “Long Tail” (C. Anderson, 2006)

http://www.physicalinternetinitiative

http://www.physicalinternetinitiative


The Physical Internet

“An open web of distribution centers, warehouses, hubs and transit

centers enabling producers, distributors and retailers to dynamically

deploy their products in multiple geographically dispersed centres, moving

and storing them so as to be able to deliver fast response to distributed

stochastic demand”

Dedicated, fixed supply chains Open supply network


Towards the physical internet:

examples of Horizontal

Collaboration

Collaboration between manufacturers (Mars, United Biscuits,

Saupiquet, Wrigley) and retail chains in France (Carrefour,

Auchan)

Collaborative planning shipments to ship full truckloads to

the same supermarkets.

Joint warehouses, complex alliance to share

costs/benefits.

Mix-Move-Match service prototyped by DHL and 3M in the

iCargo project, now available to other shippers (Unilever,

P&G)

Cross-docking include pallet re-structuring to optimise

truckload in the following leg


Sample mediterranean case:

“Blackbox” service

at the Port of Trieste (Italy)

ICT system managed by the Port Authority

of Trieste in order to enable the traceability

of all the goods and cargo arriving in the free

port area of the Port of Trieste by maritime,

rail and road transportation, integrated with

customs.

Benefits:

for the Port Authority: data integration

and quality of operations,

for the Customs Agency: easiness of

their control role and better security

managed with ICT systems and in line

with the peculiarities if the free port

zone,

for the logistics users: simplified

procedures, less time and costs to

perform logistics and administrative

operations, better interaction between

different actors.

Type of collaboration: vertical

Business model: free public utility service

Users motivation to join: request to provide

data by customs agency

Users adoption: ?



ARGES national maritime

single window (Greece/Italy)

Ensures legislative and structural

harmonization of the information exchange

systems operating between ships and land,

port side, and between the port and the

hinterland.

Allows the ships to interface with the

national Greek and Italian Coast Guard,

interoperable with the European system of

vessel traffic monitoring SafeNet and with

existing PCS.

Benefits:

Enhancement of the cooperation

among all the Port Authorities

Direct use by the national authorities of

the unique interface system to connect

with the port hub systems.

Type of collaboration: between authorities

(national and international)

Business model: internal administration

system

Users motivation to join: information

provision/availability

Users adoption: tested in the ports of Bari,

Monopoli and Barletta



CoSPaM platform by

Interporto Bologna (Italy)

CoSPaM - Corridor Strategic Planning And

Monitoring - aims to support the

collaboration of transport stakeholders along

multimodal transport corridors through a

unified framework.

Based EU harmonisation/standardization

initiatives, the core concept attempts to

ensure that transport service providers

functioning along defined modal/multimodal

routes work together in systemic ways.

Benefits:

Reduction of manual operations;

Decrease of errors, missing data and

misleading information;

Monitoring and control of the cargo

along the whole transport chain;

Better combination of inland transport

with maritime transport.

Type of collaboration: Vertical, between

different modes and types of actors

Business model: service provided by third

party entity (Interporto Bologna)

Users motivation to join: optimisation of

current operations

Users adoption: several pilot cases


Logistics as a “long tail” market

Specialized logistic services

Globally accessible

Maximizing efficiency on a

local scale

Value added services

Collaborative planning

Coordination between

modes

Intelligent cross-docking

(e.g., DHL-3M pilot in

iCargo)

Postponement of demand-

driven activities

...


Final remarks

Injecting data-driven collaboration into traditional logistics

processes can be a frustrating exercise

Efficiency improvements are hard to prove, especially for SMEs

Marginal impacts on service (e.g., better track&trace) are not sufficient

motivation, especially in times of crisis

“Build it and they will come” approach not working

The market itself is changing

“Long Tail” phenomenon

Environmentally concerned customers

Collaboration as enabler of Business Model innovation

Innovative logistic services for evolving client needs

Ecosystem approach to access, integrate and provide the services

Future projects should look at market changes pushing for collaboration

(e-Commerce logistics, sustainable logistics ..)

Paolo Paganelli, Bluegreen (I), SIL Barcelona, BESTFACT third workshop, June 12 2015

15

Thanks!

[email protected]

mailto:[email protected]

mailto:[email protected]

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BESTFACT third International Workshop on e-Freight ... · BESTFACT third International Workshop on e-Freight: ... SCP Collaboration ... Monopoli and Barletta