session 37 peter franke
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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
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