sustainable transport delivering fewer and friendlier miles

Sustainable Transport

Delivering Fewer and Friendlier Miles

• Our Ambition

• Background to sustainable transport project

• The Sustainable Transport Road Map

• Call to Action

• Questions

This session covers…

The issue…

• Environment

Why sustainable transport?

20% CO2 reduction 2020 – EU Target

Why sustainable transport?

• Scarce resourcesOil price development is unpredictable• According to EU-Bulletin, the price for gas oil

automobile (for 1000 l) increased about 6% from JAN-2005 to DEC-2008, and has decreased since. Oil price volatility forces manufacturers and retailers to look for alternatives to fossil fuels.

800

900

1.000

1.100

1.200

1.300

1.400

1.500

1.600

Jan

2005

Feb 2

005

Mar

200

5

Apr 2

005

May

200

5

Jul 2

005

Aug 2

005

Sep 2

005

Oct

2005

Dec 2

005

Jan

2006

Feb 2

006

Apr 2

006

May

200

6

Jun

2006

Jul 2

006

Aug 2

006

Oct

2006

Nov 2

006

Dec 2

006

Jan

2007

Mar

200

7

Apr 2

007

May

200

7

Jun

2007

Jul 2

007

Sep 2

007

Oct

2007

Nov 2

007

Dec 2

007

Feb 2

008

Mar

200

8

Apr 2

008

May

200

8

Jun

2008

Aug 2

008

Sep 2

008

Okt

2008

Nov 2

008

• Social - disposable income

Why sustainable transport?

EU Inflation Rate (Source eurostat)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

Sustainable transport project team

Retailers (8):• Alliance Boots, Asda Wal*Mart, Carrefour,

Coop Italia, Cora, Metro, Rewe, Tesco

Manufacturers (17):• Bacardi, Barilla, Beiersdorf,, Cadbury,

Colgate, Energizer,, Henkel, Kimberly-Clark, Kraft Foods, L’Oréal, Mars,, Nestlé, PepsiCo, P&G, Reckitt-Benckiser, Sara Lee, Unilever

Service Providers (7):• DHL, Emonscargo, Frode Laursen, Kühne &

Nagel, LKW Walter, Number1 Logistics Group, Isotrak

National ECR’s and other organisations (7):• ECR Denmark, France, UK• GCI, GS1, EuroCommerce, Institute of

Logistics

• Inspirational

• Inclusive

• Practical

• Deliverable

Inspiring hundreds of companies to deliver fewer and friendlier miles

To help companies in the consumer goods supply chain to reduce the environmental impact of transport in Europe, in a way that is socially and economically sustainable, demonstrating commitment to make a difference now!

Inspiring hundreds of companies to deliver fewer and friendlier miles

To help companies in the consumer goods supply chain to reduce the environmental impact of transport in Europe, in a way that is socially and economically sustainable, demonstrating commitment to make a difference now!

Our ambition for this project…

• A roadmap listing all best practice areas • A self-assessment tool

– to assess your maturity in sustainable transport operations

– to identify opportunities for improvement

• A set of case studies • Guidance on how to overcome the challenges we

are still facing• A set of KPIs to measure how you contribute to

sustainable transport

Deliverables

The Sustainable Transport Road Map

Efficient Load Fill

Efficient Deliveries

People

Technology

Network Design

Transport Modes

Information Sharing

Measurement

Sustainable transport road map & self assessment tool

www.ecrnet.org

Click here!!

The ECR Europe Home Page

New: Sustainable Transport Roadmap

Sustainable Transport Road Map & Self Assessment ToolWelcome Page

Sustainable Transport Road Map & Self Assessment ToolUser Guide

Sustainable Transport Road Map & Self Assessment ToolSummary of Best Practice Themes

•The supply chain strategy is internally optimised and formulated in isolation from other trading partners but influenced by common industry trends•Information exchange processes exist between some trading partners enabling periodic tactical review and collaboration to reduce transport miles•An annual network optimisation review supports efficient alignment of stores, DC's and product ranges but is unsupported by network planning software

Example Example - Network design – Level 1

ExampleExample - Network design – Level 4

•Regular supply chain strategy reviews between all major trading partners

•Common systems platforms exist between most major trading partners

•Commercial frameworks between trading partners to enable right behaviour

•Continuous improvement programme for optimal alignment of stores, DC’s and product ranges

•Physical distribution network has in-built flexibility to respond to changes without increasing road miles

•Reducing road miles is the minimum hurdle rate decision criteria for all supply chain change projects, sourcing decisions and network design strategies

Sustainable Transport Road Map & Self Assessment ToolResults Page

Measurement – Metrics, Savings calculator & KPIsMeasurement – Metrics, Savings calculator & KPIs

Input metrics•Km travelled•Litres of fuel consumed•Tonnes carried / lifted

Savings calculationA pragmatic tool has been developed to assist in quantifying these metrics and converting them into calculations of estimated CO2 savings. The ECR UK savings calculator tool : www.igd.com/ecr

KPIs•Empty running - % of km driven that have NO product •Load fill - % of weight or cube of used.•Avoiding congestion - % of running in non-peak vs. peak hours

• A set of case studies

What else have we delivered?

ECR sustainable transport project

Case studies

What else have we delivered?

ECR sustainable transport project

Challenges

• Guidance on challenges

Call to Action

Recap

• The right thing

• Practical tool kit

• Not just theory

And what are youyou going to do next...

Go make a difference NOW:

• With your own fleet, or…

• With your carriers, or…

• With your trading partners