Removing Waste

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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
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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.
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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.

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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 - LSPs -
Shipping Lines, Agents Freight
Forwarders. Physical - Truck, Rail Barge
operators Ports Inland Depots.
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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.
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Supply Chain
Containerized Freight Transportation
How it works
Supplier Receiver
Truck
Stop
Stop
Move
Warehouse
Warehouse
Port
Time 08.00 11.00
16.30 17.15
Cost Gate in Gate out Price per
KM Gate in Gate out

• Manufacturer
• Ports
• Rail Heads
• Warehouse

• Manufacturer
• Ports
• Rail Heads
• Warehouse

• Truck
• Rail
• Barge

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Cause of waste

• Internal Fragmentation

Departmentalised Organisation
Equipment
Sales Booking Desk
Dispatch
Cost Control
Inbound
Outbound
Truck
Rail
Barge
North Atlantic
Domestic
Assessorials
South East
West Coast
North East
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Cause of waste

• Industry Fragmentation

Freight Forwarder
Heineken Panasonic
Cargo Providers Logistics Service
Providers Equipment Static
Mobility Service Providers Providers
Shipping Line
Agents Brokers
Customs
Ports
Vessel
Rail Head
Truck
Equip.Lease
Depots
Rail
Barge
Terminals
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PARIS System
Data Burst
Delivering 28 Empty Savings
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Customer Response
with Business, Technology, Organisation
Process solutions at hand,
Why Isnt it happening?
Lets take look at the Barriers
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Customer Response
When the new solution means a Radical Change to
Business Process Typical Response Apprehension
Fear of change Typical Defense Its too
advanced for our time. The Solution has caused a
Paradigm Shift

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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

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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.

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Solution
Provide Neutral Transport Technology Services
should focus on

• Cargo imbalance
• Waste management
• Internet IVR Connectivity
• Collaborative Technology

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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
  

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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

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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

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Need More Info Www.Cairo.co.uk LINe
Research Cambridge 01223 - 531805
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A focus between the
Removing Waste
Loads
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What is the Top Global Commodity?
Aire

• 40 of the worlds freight movement.
• Costs over 100 billion to move it.
• Employs 100,000s people
• Moved by All Transport companies.

Luft
Air
Lucht
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Moving Empty Air

• Inefficiency Cost
• 120 to 250 per load.
• Environmental Cost
• World wide 100s 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.
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The Cost of Empty
Full Moves 450
Empty Moves 250
WASTE
The total cost of a deep sea load is 2100 35
of this cost is spent on Inland transport
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Identify Waste - Trade lanes
Today - 40 Empty
Landmass 1
Landmass 2
West Bound
North Bound
Full moves
Empty Equipment moves
Landmass 3
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Transport Efficiency Full/Full
Use technology to find Local Backloads.
Think Local
Think Local Think
Local
Landmass
Landmass
West Bound
North Bound
Full moves
Empty Equipment moves
Landmass
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Identify waste

• Empty Moves

How do we measure this ?
Use a computer system to identify waste
remove waste automatically, without the need for
human intervention.
May be we should not measure it ?
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Solution
We Need a tool to get us there
An Intelligent, Neutral Seamless Transport System
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Solution
Neutral Cargo Equipment Planning Exchange
Heineken Panasonic
Cargo Providers Logistics Service
Providers Equipment
Static Mobility Services
Providers
Shipping Line Freight Forwarder
Common Planning
Truck Rail Barge Vessel
Shipping Line Equip.Lease Terminals Depots
SMART Transport System
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People Process Solution
Technology is the change Agent for -

• Increasing Productivity
• Reducing reliance on scarce skilled employees.
• Providing business control.

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Sowith Business, Technology, Organisation
Process solutions at hand,
Why Isnt it happening?
Lets take look at the Barriers
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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

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External Barriers

• Collaboration with others - Protectionism
• Grey Equipment Loss of Control
• Internet technology - Technophobia

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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
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The way forward Shipper, Consignee.
Use common neutral technology.

• Reap Your part of the efficiency savings.

• Gain control of Your supply chain.

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The way forwardLogistics service providers
Operators

• You need to use a collaborative Transport System
  which is visible to your clients.

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1900s 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