Presentation
PLANET 2001 EDINBURGH
Introduction of Myself & My company
Transportation – Background & How it works
Removing waste in freight transportation
Challenges to moving forward
Colin Francis
Colin Francis – My background
10 years of Industry Experience Running Inland & Vessel Operations.
With U.S. Lines managed daily 800 Trucks Rail & Barge loads and Equipment Fleet.
8 years Developing Transportation Systems & Inter modal efficiency
studies. In Europe & USA
With Sea-Land, CSX, Crowley & United Transport.
8 years Owning & running my own advanced technology company
Cairo Technologies in Cambridge
Mathematical Research LAB - Heterogeneous scheduling using soft time windows.
TMS – “PARIS”
Optimal Inland Inter-modal Management system.
For Planning & Scheduling Freight Transportation.
2 years As an advisor to the Dutch Ministry of Education & Agriculture
Education in the digital age & advanced food distribution.
My former company
Cairo Technologies is now LINe Research
owned by Hutchison Ports
Provide to Industry
• Advanced Transport Technology to
Integrate common Supply chain players.
• New Business concepts, Based on process
Re-Engineering.
• Neutral Dispatch Services.
• Pro active Business Support.
Containerized Freight Transportation
Background
Scope
Spend on Freight Transportation is around 3% to 5% of GDP
Movement of Manufactured goods & Raw materials,
•Liquids in Tanks– Chemicals & Food
•Dry bulk in Bulk Containers – Grains & Powders.
•Heavy goods on Flats – Steel & Wood
•Food in Refrigerated Containers
•Manufactured goods in Dry Containers
Players
Cargo Suppliers & Receivers (Panasonic, Heineken)
Arrangement - LSP’s - Shipping Lines, Agents & Freight Forwarders.
Physical Truck, Rail & Barge operators & Ports & Inland Depots.
Containerized Freight Transportation
Background
State of the Industry
Annual Volume Growth 5 to 7%
Logistics Service Providers (LSP)
Shipping Lines, Freight Forwarders - Average profit 0 to 3%
Ports & Terminals - are continually downsizing staff
Rail Roads – Poor service with Average travel time of 16 km per hour.
Water barges are greatly underutilized
Roads congested with 40% Empty Trucks.
Containerized Freight Transportation
How it works
Supply Chain
Supplier
Receiver
Truck
Stop
Stop
Move
Warehouse
Warehouse
Time: 08.00
Cost: Gate in
11.00
Gate out
•Manufacturer
•Ports
•Rail Heads
•Warehouse
Port
Price per KM
•Truck
•Rail
•Barge
16.30
Gate in
17.15
Gate out
•Manufacturer
•Ports
•Rail Heads
•Warehouse
Cause of waste
Internal Fragmentation
Departmentalised Organisation
Sales Booking Desk
Dispatch
Equipment
Inbound Outbound
Truck
North
Atlantic
Domestic
Rail
Barge
South East West Coast
North East
Cost
Control
Assessorials
Cause of waste
Industry Fragmentation
Freight Forwarder
Heineken
Panasonic
Cargo Providers
Logistics Service Shipping Line
Providers
Agents
Brokers
Customs
Ports
Equipment & Static
Service Providers
Rail Head
Depots
Mobility
Providers
Truck
Vessel
Equip.Lease
Terminals
Barge
Rail
Data Burst
“PARIS” System
Delivering
28 % Empty Savings
Customer Response
with Business, Technology,
Organisation & Process solutions
at hand,
Why
Isn’t it happening?
Lets take look at the Barriers
Customer Response
When the new solution means a
Radical Change to Business Process
Typical Response
Apprehension & Fear of change
Typical Defense
“It’s too advanced for our time.”
The Solution has caused a Paradigm
Shift
Customer Response
The Mega Transport Carriers
Competitive advantage
Do want these solutions BUT only developed internally
However reality check Which Results in;
•Cannot sustain Long term project of many years
•Reluctant to work with academia
•Not enough project funding, priorities change
•Internal use does Not solve industrial fragmentation
Customer Response
Other Transport Carriers
Fear of Change
Lack of understanding
Which Results in;
•No priority given to these solutions
•Resist solution, cannot think differently than the results
•of existing Manual methods.
Solution
Provide Neutral Transport Technology Services
should focus on;
• Cargo imbalance
• Waste management
• Internet & IVR Connectivity
• Collaborative Technology
Technical Challenges
Combining Industry sectors;
• Commodities: Liquids, Fresh, Bulk & Manufactured
• Equipment: Containers & Trailers.
Planning & Scheduling Techniques;
• Planning 100,000 loads a day in real time.
Collaborative Technology;
• Planning 2000 separate companies together.
Predictive Solutions
• Support Slow moving transport modes Rail & Barge
Technical Challenges
Human intervention;
• Flexible & “Human like” interaction
Integrated technologies
• Mobile Phone Voice & Text
• Internet
• Geographic
Technology that covers 20 European languages & Local
• 20 Separate Languages and regulations
• Local technology standards
• Global reach
Practical Issues
Different approaches
Achieving the “Right” Technology
• “PhD problem” Forming an elite group, does not work
Gaining Support
• Government “should” threaten Industry with legislation
• Recruit Shippers & Receivers to leverage support
Changing mind sets
• Governments support Physical transportation projects
• Bankers invest in Physical transportation Infrastructure
• Users want to do the planning & scheduling
Need More Info;
Www.Cairo.co.uk
LINe Research
Cambridge 01223 - 531805
Removing Waste
A focus between the Loads
What is the Top Global
Commodity?
Aire
• 40% of the world’s freight movement.
• Costs over $ 100 billion to move it.
• Employ’s 100,000’s + people
&
• Moved by All Transport companies.
Luft
Lucht
Air
Moving Empty “Air”
Inefficiency Cost
• $ 120 to $ 250 per load.
Environmental Cost
• World wide 100’s millions Miles in air pollution &
Infrastructure degradation.
Quality of service Cost
• Empty Trucks cause their own traffic congestion.
Saving Costs
& the Environment go hand in hand.
The Cost of Empty
35%
Total Inland Cost
$ 700
WASTE
The total cost of a deep sea load is $ 2100
35% of this cost is spent on Inland transport
Identify Waste - Trade lanes
Today - 40% Empty
Landmass 1
Landmass 2
West Bound
Full moves
North Bound
Empty Equipment moves
Landmass 3
Transport Efficiency Full/Full
Use technology to find Local Backloads.
Landmass
Landmass
Think Local
Full moves
West Bound
Think Local
North Bound
Think Local
Empty Equipment moves
Landmass
Identify waste
Empty Moves
How do we measure this ?
May be we should not measure it ?
Use a computer system
to identify waste & remove waste automatically,
without the need for human intervention.
Solution
We Need a tool to get us there
An Intelligent, Neutral
Seamless Transport System
Solution
Neutral Cargo & Equipment Planning
Exchange
Heineken
Panasonic
Shipping Line
Equip.Lease
Terminals
Depots
Cargo Providers
Logistics Service
Providers
Common
Planning
Equipment
& Static
Services
Mobility
Providers
Shipping Line
Freight Forwarder
Truck
Rail
Barge
Vessel
SMART Transport System
People & Process Solution
Technology is the change Agent for • Increasing Productivity
• Reducing reliance on scarce skilled
employees.
• Providing business control.
So
with Business, Technology,
Organisation & Process solutions
at hand,
Why
Isn’t it happening?
Lets take look at the Barriers
Internal Barriers
• Not invented here - Ability Attack
• I.T. Investment to date - Protectionism
• Maintain the Status Quo – Loss of power
• Job/Process Protection - Resistance to Change
External Barriers
Collaboration with others - Protectionism
Grey Equipment – Loss of Control
Internet technology - Technophobia
Conclusion
There are 1001 excuses not to do it.
• All are emotional.
• None benefit business or the environment.
• They are barriers to making a profit.
Senior Management need to grasp the nettle
OR
Governments should legislate
The way forward
Shipper, Consignee.
Use common neutral technology.
• Reap Your part of the efficiency savings.
• Gain control of Your supply chain.
End
Truck
Multi-modal Cargo Supply Chain
Vessel
Rail
End
The way forward
Logistics service providers & Operators
You need to use a collaborative
Transport System which is
visible to your clients.
1900’s End of an Era
The Industrial century has passed
Ship was king
2000 Dawn of the digital age
Technology will rule this next century.
Game plan “Effective users win”
Thinking Collaborative Technology
is now king
thank you…………………………..Colin Francis
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Removing Waste