presentation planet 2001 edinburgh introduction of myself & my company transportation –...
TRANSCRIPT
PresentationPresentationPLANET 2001 EDINBURGH
Introduction of Myself & My company
Transportation – Background & How it works
Removing waste in freight transportation Challenges to moving forward
Colin FrancisColin Francis
Colin FrancisColin Francis – – My backgroundMy backgroundColin FrancisColin Francis – – My backgroundMy background
10 years10 years of Industry Experience Running Inland & Vessel Operations. of Industry Experience Running Inland & Vessel Operations.With With U.S. LinesU.S. Lines managed daily 800 Trucks Rail & Barge loads and Equipment Fleet. managed daily 800 Trucks Rail & Barge loads and Equipment Fleet.
8 years8 years Developing Transportation Systems & Inter modal efficiency Developing Transportation Systems & Inter modal efficiencystudies. In Europe & USAstudies. In Europe & USAWith With Sea-Land, CSX, Crowley & United Transport.Sea-Land, CSX, Crowley & United Transport.
8 years8 years Owning & running my own advanced technology company Owning & running my own advanced technology company Cairo Technologies in CambridgeCairo Technologies in CambridgeMathematical Research LAB - Heterogeneous scheduling using soft time windows.Mathematical Research LAB - Heterogeneous scheduling using soft time windows.TMS – “PARIS” TMS – “PARIS” Optimal Inland Inter-modal Management system.Optimal Inland Inter-modal Management system.
For Planning & Scheduling Freight Transportation.For Planning & Scheduling Freight Transportation.
2 years2 years As an advisor to the Dutch Ministry of Education & Agriculture As an advisor to the Dutch Ministry of Education & AgricultureEducation in the digital age & advanced food distribution.Education in the digital age & advanced food distribution.
Provide to IndustryProvide to Industry
• Advanced Transport Technology to Advanced Transport Technology to Integrate commonIntegrate common Supply chain players. Supply chain players.
• New Business concepts, Based on New Business concepts, Based on process Re-Engineeringprocess Re-Engineering..
• Neutral Dispatch Services.Neutral Dispatch Services.
• Pro active Business Support.Pro active Business Support.
My former companyMy former companyCairo TechnologiesCairo Technologies is is nownow LINe Research LINe Research
owned by Hutchison Portsowned by Hutchison Ports
My former companyMy former companyCairo TechnologiesCairo Technologies is is nownow LINe Research LINe Research
owned by Hutchison Portsowned by Hutchison Ports
Containerized Freight TransportationContainerized Freight TransportationContainerized Freight TransportationContainerized Freight Transportation
ScopeScopeSpend on Freight Transportation is around Spend on Freight Transportation is around 3% to 5% of GDP3% to 5% of GDPMovement of Manufactured goods & Raw materials, Movement of Manufactured goods & Raw materials,
•Liquids in Tanks– Chemicals & FoodLiquids in Tanks– Chemicals & Food•Dry bulk in Bulk Containers – Grains & Powders.Dry bulk in Bulk Containers – Grains & Powders.•Heavy goods on Flats – Steel & WoodHeavy goods on Flats – Steel & Wood•Food in Refrigerated ContainersFood in Refrigerated Containers•Manufactured goods in Dry ContainersManufactured goods in Dry Containers
BackgroundBackground
PlayersPlayersCargo -Cargo - Suppliers & Receivers (Panasonic, Heineken) Suppliers & Receivers (Panasonic, Heineken) Arrangement - LSP’s - Shipping Lines, Agents & Freight Forwarders.Arrangement - LSP’s - Shipping Lines, Agents & Freight Forwarders.Physical -Physical - Truck, Rail & Barge operators & Ports & Inland Depots.Truck, Rail & Barge operators & Ports & Inland Depots.
Containerized Freight TransportationContainerized Freight TransportationContainerized Freight TransportationContainerized Freight TransportationBackgroundBackground
State of the IndustryState of the IndustryAnnual Volume Annual Volume Growth 5 to 7%Growth 5 to 7%
Logistics Service Providers (LSP) Logistics Service Providers (LSP) Shipping Lines, Freight Forwarders - Average Shipping Lines, Freight Forwarders - Average profit 0 to 3%profit 0 to 3%
Ports & Terminals - are continually Ports & Terminals - are continually downsizingdownsizing staff staff
Rail Roads – Poor service with Average travel time of Rail Roads – Poor service with Average travel time of 16 km per hour.16 km per hour.Water barges are greatly Water barges are greatly underutilizedunderutilizedRoads congested with Roads congested with 40% Empty Trucks.40% Empty Trucks.
Containerized Freight TransportationContainerized Freight TransportationContainerized Freight TransportationContainerized Freight Transportation
Supply ChainSupply Chain
WarehouseWarehouseWarehouseWarehouse
StopStop
PortPort
StopStop
•ManufacturerManufacturer•PortsPorts•Rail HeadsRail Heads
•WarehouseWarehouse
•ManufacturerManufacturer
•PortsPorts•Rail HeadsRail Heads•WarehouseWarehouse
•TruckTruck•RailRail•BargeBarge
SupplierSupplier Receiver Receiver
Time: 08.00Time: 08.00 11.00 11.00 16.30 16.30 17.15 17.15Cost: Gate inCost: Gate in Gate out Gate out Price per KM Price per KM Gate in Gate in Gate out Gate out
How it works
TruckTruck
MoveMove
Cause of wasteInternal Fragmentation
Departmentalised OrganisationDepartmentalised Organisation
Cost Cost ControlControl
DispatchDispatch EquipmentEquipmentSales Booking DeskSales Booking Desk
TruckTruck
South EastSouth East
RailRail BargeBarge
North EastNorth East
West CoastWest CoastNorth North AtlanticAtlantic
DomesticDomestic
InboundInbound OutboundOutbound
AssessorialsAssessorials
Cause of wasteIndustry Fragmentation
Shipping LineShipping Line Cargo Providers Logistics Service Cargo Providers Logistics Service ProvidersProviders
Equipment & StaticEquipment & Static Mobility Mobility Service Providers Service Providers Providers Providers
HeinekenHeinekenPanasonicPanasonic
PortsPorts
BargeBarge
AgentsAgentsBrokersBrokers
VesselVessel
RailRail
TruckTruck
Freight ForwarderFreight Forwarder
Rail HeadRail Head
DepotsDepots
TerminalsTerminals
Equip.LeaseEquip.Lease
CustomsCustoms
““PARIS” SystemPARIS” System
DeliveringDelivering 28 %28 % Empty SavingsEmpty Savings
Data BurstData Burst
Customer Response
withwith BusinessBusiness, , Technology,Technology, OrganisationOrganisation & Process & Process solutionssolutions
at hand,at hand,
Lets take look at the BarriersLets take look at the Barriers
Why Why Isn’t it happening?Isn’t it happening?
Customer ResponseWhen the When the new solutionnew solution means a means a
Radical Change to Business ProcessRadical Change to Business ProcessTypical ResponseTypical Response
Apprehension & Fear of changeApprehension & Fear of change Typical DefenseTypical Defense
““It’s too advanced for our time.”It’s too advanced for our time.”The Solution has caused a The Solution has caused a ParadigmParadigm
ShiftShift
Customer Response
The Mega Transport CarriersThe Mega Transport Carriers
Competitive advantageCompetitive advantageDoDo want these solutions want these solutions BUTBUT only developed internally only developed internally
However reality check Which Results in;However reality check Which Results in;
•Cannot sustain Long term project of many yearsCannot sustain Long term project of many years•Reluctant to work with academia Reluctant to work with academia •Not enough project funding, priorities change Not enough project funding, priorities change •Internal use does Not solve industrial fragmentationInternal use does Not solve industrial fragmentation
Customer Response
Other Transport CarriersOther Transport Carriers
Fear of ChangeFear of ChangeLack of understandingLack of understanding
Which Results in;Which Results in;
•No priority given to these solutionsNo priority given to these solutions•Resist solution, cannot think differently than the resultsResist solution, cannot think differently than the results•of existing Manual methods.of existing Manual methods.
Solution
• Cargo imbalanceCargo imbalance• Waste managementWaste management• Internet & IVR ConnectivityInternet & IVR Connectivity• Collaborative TechnologyCollaborative Technology
Provide Neutral Transport Technology ServicesProvide Neutral Transport Technology Services should focus on;should focus on;
Technical Challenges
Combining Industry sectors;Combining Industry sectors;• Commodities: Liquids, Fresh, Bulk & Manufactured Commodities: Liquids, Fresh, Bulk & Manufactured • Equipment:Equipment: Containers & Trailers. Containers & Trailers.
Planning & Scheduling Techniques;Planning & Scheduling Techniques;• Planning 100,000 loads a day in real time.Planning 100,000 loads a day in real time.
Collaborative Technology;Collaborative Technology;• Planning 2000 separate companies together.Planning 2000 separate companies together.
Predictive SolutionsPredictive Solutions• Support Slow moving transport modes Rail & BargeSupport Slow moving transport modes Rail & Barge
Technical Challenges
Human intervention;Human intervention;• Flexible & “Human like” interactionFlexible & “Human like” interaction
Integrated technologiesIntegrated technologies• Mobile Phone Voice & Text Mobile Phone Voice & Text • InternetInternet• GeographicGeographic
Technology that covers 20 European languages & LocalTechnology that covers 20 European languages & Local• 20 Separate Languages and regulations20 Separate Languages and regulations• Local technology standardsLocal technology standards• Global reachGlobal reach
Practical Issues
Achieving the “Right” TechnologyAchieving the “Right” Technology• “ “PhD problem”PhD problem” Forming an elite group, does Forming an elite group, does notnot work work
Gaining SupportGaining Support• Government “should” threaten Industry with legislationGovernment “should” threaten Industry with legislation• Recruit Shippers & Receivers to leverage supportRecruit Shippers & Receivers to leverage support
Different approachesDifferent approaches
Changing mind setsChanging mind sets• Governments support Physical transportation projectsGovernments support Physical transportation projects• Bankers invest in Physical transportation InfrastructureBankers invest in Physical transportation Infrastructure• Users want to do the planning & schedulingUsers want to do the planning & scheduling
Need More Info;Need More Info;
Www.Cairo.co.uk
LINe ResearchLINe ResearchCambridge 01223 - 531805 Cambridge 01223 - 531805
What is the Top Global Commodity?
AirAirAirAir
• 40% of the world’s freight movement.40% of the world’s freight movement.
• Costs over $ 100 billion to move it.Costs over $ 100 billion to move it.
• Employ’s 100,000’s + peopleEmploy’s 100,000’s + people
&&
• Moved by All Transport companies.Moved by All Transport companies.
LuchtLuchtLuchtLucht
AireAireAireAire
LuftLuftLuftLuft
Moving Empty “Air”Inefficiency CostInefficiency Cost• $ 120 to $ 250 $ 120 to $ 250 perper load.load.Environmental CostEnvironmental Cost• World wide World wide 100’s millions Miles 100’s millions Miles in air pollution in air pollution
& Infrastructure degradation.& Infrastructure degradation.Quality of service CostQuality of service Cost• Empty Trucks cause their Empty Trucks cause their ownown traffic congestion. traffic congestion.
Saving Costs & the Environment go hand in hand.
The Cost of Empty
The total cost of a deep sea load is $ 2100 The total cost of a deep sea load is $ 2100 35% of this cost is spent on Inland transport35% of this cost is spent on Inland transport
Total Inland CostTotal Inland Cost
$ $ 70070035%35%
Full Moves
$ 450
Empty Moves
Empty Moves$ 250$ 250
WASTEWASTE
Identify Waste - Trade lanesIdentify Waste - Trade lanes
Full moves
Empty Equipment moves
Landmass 2
Landmass 3
Landmass 1
Today - 40% EmptyToday - 40% Empty
West BoundWest Bound
North BoundNorth Bound
Transport Efficiency Full/FullTransport Efficiency Full/Full
Full moves
Empty Equipment moves
Landmass
Landmass
Landmass
Think LocalThink Local
Think LocalThink Local
Think Local Think Local
Use technology to Use technology to findfind Local Backloads. Local Backloads.
West BoundWest Bound
North BoundNorth Bound
IdentifyIdentify waste waste
Empty MovesEmpty Moves
Use a computer systemUse a computer systemto to identifyidentify waste & waste & removeremove waste automatically, waste automatically,
withoutwithout the need for human intervention. the need for human intervention.
How do we measure this ?How do we measure this ?
May be we should May be we should notnot measure it ? measure it ?
Solution
We We NeedNeed a tool to get us there a tool to get us there
An An IntelligentIntelligent, , NeutralNeutralSeamless Transport SystemSeamless Transport System
SolutionNeutral Cargo & Equipment Planning Neutral Cargo & Equipment Planning
ExchangeExchange
Shipping LineShipping LineFreight ForwarderFreight Forwarder
Cargo Providers Logistics Service Cargo Providers Logistics Service ProvidersProviders
Equipment Equipment & Static& Static MobilityMobility ServicesServices ProvidersProviders
HeinekenHeinekenPanasonicPanasonic
Shipping LineShipping LineEquip.LeaseEquip.LeaseTerminalsTerminalsDepotsDepots
TruckTruckRailRailBargeBargeVesselVessel
CommonCommon PlanningPlanning
SMART Transport SystemSMART Transport System
People & ProcessPeople & Process Solution Solution
• Increasing ProductivityIncreasing Productivity
• Reducing reliance on scarce skilled Reducing reliance on scarce skilled employees.employees.
• Providing business control. Providing business control.
Technology is the Technology is the change change Agent for -Agent for -
SoSowithwith BusinessBusiness, , Technology,Technology,
OrganisationOrganisation & Process & Process solutionssolutions at hand,at hand,
Lets take look at the BarriersLets take look at the Barriers
Why Why Isn’t it happening?Isn’t it happening?
Internal Barriers
• Not invented here - Not invented here - AbilityAbility AttackAttack
• I.T. Investment to date - I.T. Investment to date - ProtectionismProtectionism
• Maintain the Status Quo – Maintain the Status Quo – Loss of powerLoss of power
• Job/Process Protection - Job/Process Protection - Resistance to ChangeResistance to Change
External Barriers
Collaboration with others - ProtectionismGrey Equipment – Loss of ControlInternet technology - Internet technology - TechnophobiaTechnophobia
Conclusion
• AllAll are emotional. are emotional.
• NoneNone benefit business or the environment. benefit business or the environment.
• TheyThey are barriers to making a profit. are barriers to making a profit.
There are 1001 excuses There are 1001 excuses notnot to do it.to do it.
Senior Management need to grasp the nettleSenior Management need to grasp the nettleOR OR
Governments should legislateGovernments should legislate
The way forward Shipper, Consignee.
Use common neutral technology.
• Reap Your part of the efficiency savings.
• Gain control of Your supply chain.
EndEnd Multi-modal Cargo Supply Chain Multi-modal Cargo Supply Chain EndEnd
TruckTruck Vessel Vessel RailRail
The way forwardLogistics service providers & Operators
You need to use a collaborative Transport System which is
visible to your clients.
1900’s End of an Era1900’s End of an EraThe The IndustrialIndustrial century has passed century has passed
2000 Dawn of the digital age2000 Dawn of the digital age
TechnologyTechnology willwill rule this next century. rule this next century.Game plan “Effective users Game plan “Effective users winwin””
thank you…………………………..Colin thank you…………………………..Colin FrancisFrancis
Thinking Collaborative TechnologyThinking Collaborative Technology is now kingis now king
Ship was kingShip was king