A REGIONAL APPROACH A REGIONAL APPROACH A REGIONAL APPROACH A REGIONAL APPROACH A REGIONAL APPROACH A REGIONAL APPROACH A REGIONAL APPROACH A REGIONAL APPROACH TO TO TO TO TO TO TO TO

LOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERSLOGISTICS FOR SMEs CLUSTERS

Assessorato MobilitAssessorato MobilitAssessorato MobilitAssessorato Mobilitàààà e Trasportie Trasportie Trasportie Trasporti

Rino RosiniRino RosiniHead of Head of TransportTransport Planning and Planning and LogisticsLogistics UnitUnit

I-LOG - SMAVIRimini, November 4th, 2005

The Economic StructureThe Economic Structure

• Over 400.000 active firms (almost 1 every 10 inhabitants)

• Characterised by SMEs• More than 90% have less than 50 employees

(the average firm has 3.5 employees: 7.4 in manufacturing, 2.6 in service sector)

• There are more than 110.000 firms in the industrial sector

< 200

200-699

700-1.499

1.500-2.999

3.000-4.999

5.000 - 7.499

7.500 - 11.999

12.000-14.999

15.000 - 20.000

> 20.000

Emilia Romagna Emilia Romagna economiceconomic outlook: outlook: employeesemployees in the in the manifacturingmanifacturing sectorsector (ISTAT, 2001) (ISTAT, 2001) byby municipalitymunicipality

values % share values % shares

PIACENZA 2.983 5,4% 26.205 4,9%

PARM A 5.973 10,7% 53.524 9,9%

REGGIO EMILIA 8.045 14,4% 82.408 15,3%

MODENA 11.996 21,5% 121.012 22,5%

BOLOGNA 11.543 20,7% 122.728 22,8%

FERRARA 3.437 6,2% 32.017 5,9%

RAVENNA 3.774 6,8% 34.490 6,4%

FORLI'-CESENA 4.711 8,5% 45.018 8,4%

RIMINI 3.222 5,8% 21.505 4,0%

TOTAL 55.684 100,0% 538.907 100,0%

Local Units EmployeesProvince

NUMBER OF EMPLOYEES/MUNICIPALITY

-2

0

2

4

6

8

10

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24%

MECHANICS

METALLURGYFOOD

TEXTILECLOTHING

NON METALLIFEROUS MINERALS

ELECTRICALDEVICES

CHEMISTRYWOOD, FORNITURE

COKE

LEADHERSHOES

PAPER

TRANSPORTEQUIPMENTS

RUBBERPLASTICS

Manufacturing Manufacturing SectorSector DivisionsDivisions

% N° EMPLOYEES BY THE TOTAL E-R

TERRITORIALDIFFUSION

PRESS INTERNA TIONALIZATIONINDEX

TowardsTowards a a sostainablesostainableeconomiceconomic growthgrowth ??

Among the Italian regionsEmilia-Romagna is

•the first by the equivalentpro-capita income and

•the third last by incomeconcentration.

This is index of a betterbetterresourcesresources distributiondistributionamong the members of the community.

Emilia-Romagna

Lombardia

Toscana

Trentino-Friuli

Liguria

Piemonte

Veneto

Umbria

Marche

LazioAbruzzo-Molise

Sardegna

Puglia

Calabria-Basilicata

Campania

Sicilia

ITALIA REDDITO

INDICECONCENTRAZIONE

DISPARITYCONCENTRATION

INDEX

WEALTHPRO-CAPITA

INCOMEITALY

NONO22 CONCENTRATIONCONCENTRATION GLOBAL MAPGLOBAL MAPNITROGEN DIOXIDE concentrations taken by ENVISAT satellite in 18 month (January 2003 -June 2004).

NO2 is responsible for the ozone production in the biosphere.

NO2 is produced by the emissions of the electrical plants, by the heavyindustry, and by the road transport , besides biomasses combustion.

NONO22 CONCENTRATION LEVELS IN EUROPECONCENTRATION LEVELS IN EUROPE

EMILIA-ROMAGNA

SIDE EFFECTS TO BE FACED SIDE EFFECTS TO BE FACED • POLLUTION (maximum level in Europe: PM10, NOx, CO, … )

• DISEASES (very high health costs on regional&local budgets)

• CONGESTION (traffic jams and waste of time all over the entire transport network, not only at urban level)

• HIGH COSTS OF PRIVATE AND PUBLIC TRANSPORTS (lot of money wasted by industry, services and public administration)

• LOSS OF COMPETITIVENESS BY COMPANIES IN THE GLOBAL MARKET

The distribution of the heavy-truck traffic is fairlyomogeneous among the different covered distanceclasses (up to 300 km), but itdecreases rapidly beyond 300 km

HEAVYHEAVY--TRUCK TRAFFIC ON THE MAIN TRUCK TRAFFIC ON THE MAIN MOTORWAYS (MOTORWAYS (ItalyItaly -- 2003)2003)

In 2003 the total number of heavy-trucks covering more than 500 km was 1.7 million (average distance covered: 662 km)

The quantity of goods carried by these trucks was 32.000 mlntons/km, equal to:

22% of total freight road traffic14% of total freight traffic

-

5

10

15

20

25

30

35

0-25 25-50 50-100 100-300 300-500 Up to 500

Mill

ions

Covered distance classes - km

Number of annual transits

22,1%21%

25,3%

3,7%2,2%

25,6%

Up to 500 km only 14% of

the total freight traffic

(tons/km)

Gr u p p o A ut o st ra de

Al t re c o nc e s sio n ari e

L EGEN DA

E LA RETE AU TOSTRADALE

In Italy, the industrial system is highly differentiated and widespread over the territory.

It requires complex linkinginfrastructures and transportservices to maintain itscompetitiveness.

Logistics and intermodality are the main issues for:

• access to ports, airports, dry ports and freightvillages

• access to bordercountries

• access to sea routes• access to Eastern

European countriesMAIN INDUSTRIAL DISTRICTSIN ITALY

HIGH DIFFUSION OF THEHIGH DIFFUSION OF THELOCAL PRODUCTION SYSTEMS (LPS)LOCAL PRODUCTION SYSTEMS (LPS)

EMILIA-ROMAGNA

INTERMODALITY INTERMODALITY FOR SUSTAINABLE ECONOMY ?FOR SUSTAINABLE ECONOMY ?

There is room for a significant freight transfer from road to rail or ship: in theory in Italy we can transfer the 22% of the freight road traffic (tons/km)

LetLet’’s s saysay thatthat intermodalityintermodalityisis a placebo (a placebo (forfor sustainabilitysustainability))

BUT THIS (LONG TERM) PERSPECTIVEBUT THIS (LONG TERM) PERSPECTIVErequire huge investments in rail/ship transport facilitiesand technologies so that the services become definitelycompetitive with the road transport (lead time, reliability, costs, …)

having not practical outstanding results on road traffic: in Italy only 3-4 % less in terms of vehicles number on roads (2002 data)

12.000 INTERVIEWS TO VEHICLES DRIVERS OF:C2 VEHIC. TYPE: 3,5 tons load < Vans < 11.0 tons loadC3 VEHIC. TYPE: Heavy trucks>11,0 tons load

ROAD FLOWS (1)ROAD FLOWS (1)REGIONAL DATA COLLECTION CAMPAIGN 2003REGIONAL DATA COLLECTION CAMPAIGN 2003

8.141 (69%)68% loaded

32% unloaded

3.704 (31%) 56% loaded

43% unloaded

LOAD FACTOR

DISTANCE RANGES

0%

25%

50%

75%

100%

< 50 km 50-100 km 100-200 km 200-500 km >500 km0%

25%

50%

75%

100%

< 50 km 50-100 km 100-200 km 200-500 km >500 km

ROAD FLOWS (2)ROAD FLOWS (2)REGIONAL DATA COLLECTION CAMPAIGN 2002REGIONAL DATA COLLECTION CAMPAIGN 2002

confine provinciale

confine comunale

10 - 100

250 - 500500 - 1000

100 - 250

> 1000

spostamenti/giorno

MUNICIPAL BOUNDERIES

MOVEMENTS / DAY

FREIGHT O/D DAILY MATRIX (INTER-MUNICIPAL FLOWS ONLY)

VANS

10-100100-250250-500500-1000> 1000

HIGHERFLOWINTENSITYSPOTS

ROAD FLOWS (3)ROAD FLOWS (3)REGIONAL DATA COLLECTION CAMPAIGN 2002REGIONAL DATA COLLECTION CAMPAIGN 2002

Source: Regione Emilia-Romagna, Transport Planning and Logistics Department, 2003

MOVEMENTS/DAY

FREIGHT O/D DAILY MATRIX (INTER-MUNICIPAL FLOWS ONLY)

HEAVY TRUCKSMUNICIPAL BOUNDERY

PROVINCIAL BOUNDERY

EmiliaEmilia--Romagna Romagna isis dealingdealing withwithveryvery complexcomplex clustersclusters of SMEsof SMEs

((especiallyespecially in the in the mechanicalmechanical sectorsector))

Each company buys from many other companies goods and services for an average amount of 82 % of the billing of itsfinal products and services.EVERYTHING IS MANAGED BY ROAD TRANSPORT !!!

+20%

+20%+20%

+20%

+20%

The Emilia-Romagna regionitself could be seen as a “cluster of industrialclusters”

The “20% rule”

SACMI (TILE OVENS SACMI (TILE OVENS -- REGGIO EMILIA) REGGIO EMILIA) MAIN SUBMAIN SUB--SUPPLYER SYSTEMSSUPPLYER SYSTEMS

2101709

2102360

2101017

21017542101484

2101829

2101636

2101817

2101649.

2101783

2101689

2101962

2101950

2101736

2101697

2101750.

21019202101717. 2101752

2101866

2101816

2101979

2101738

MagazzinoScandiano

2102879

MagazzinoSalvaterra

2101576

+20%

+ 20%

+20%

+20%

+20%

+20%

+20%

+20%

+20%

The “20% rule”

+20%

+ 20%

+20%

+20%

+20%

+20%

+20%

+20%

+20%

The The goodgood transporttransport isis the the mainmain standard standard ““production production meanmean”” in in anan industrialindustrial clusterclusterof SMEs of SMEs basedbased on so on so complexcomplex exchangesexchanges of of goodsgoods and and servicesservices

So the So the optimizationoptimization of the intercompany of the intercompany flowsflows isis the the silversilver bulletbullet toto::

•• ImproveImprove the the competitivenesscompetitiveness of the SMEs of the SMEs clustersclusters•• SaveSave hugehuge amountsamounts of private and public of private and public expensesexpenses•• SubstantiallySubstantially reduce air reduce air emissionsemissions and and fuelfuel consumptionconsumption

THAT IS A WINTHAT IS A WIN--WIN POLICYWIN POLICY

REGIONREGION--ENTERPRISES LABENTERPRISES LABPILOT PROJECTSPILOT PROJECTS

Emilia-Romagna Region has promoted several pilot projects directly involving 5 5 clustersclusters of SMEsof SMEs in different areas according to three different approaches

Pilot practice A - cluster 1 & 2 Sub-supplying centralization(Bologna, more than 15 SMEs)

Pilot practice B - cluster 3Re-location of suppliers plants(Modena, 600 SMEs looking fornew localization)

Pilot practice C – cluster 4&5 “Milk-run” system(Reggio Emilia and Bologna,10 SMEs + DUCATI)

F1

F2

F3

F1 F2 F3

F1F2

F3

F4F5

F6

Fn

F1F2

F3

F4F5

F6

Fn

F1F2

F3

F4F5

F6

Fn

F1

TRANSITPOINT

SHAREDWA REHOUSE

INBOUND LOGISTICS SIMULATORINBOUND LOGISTICS SIMULATOR

SMES - SUPPLIERS

ONLY AS EXONLY AS EX

PILOT “C”

Confindustria Emilia-RomagnaUNIONAPI Emilia-RomagnaAssindustria BolognaAPI Bologna

ITL in cooperation w ith:PricewaterhouseC oopers S.r.l.Uni. Bologna

•BEGHELLI•BONFIGLIO LI•DATALOGIC•FAAC•FINI

•TRANSPORT & LOGISTICS OPERATORS

THE DEVELOPMENT OF A CONSORTIUM FOR TRANSPORT & LOGISTICS BUYING

BOLOGNA

Confindustria Emilia-RomagnaAssindustria Reggio EmiliaUni. Modena - Reggio EmiliaSATA S.r.l.

BREVINI RIDUTTORICOMER INDUSTRIESLANDINILOMBARDINI

SIMULATION TECHNIQUES FOR INBOUND LOGISTICS PLANNING

REGGIO EMILIA

BODIESCOMPANIESFOCUS

THE ONGOING LABORATORIES

UNIONAPI Emilia RomagnaCNA Emilia RomagnaAPI Reggio EmiliaCNA Reggio EmiliaUni. Modena - Reggio Emilia

SACMI FORNI

SUPPLYING SMES

INBOUND FLO WS RATIONA LIZATION: SACMI FORNI EXPERIENCE

REGGIO EMILIA

•UNIONAPI Emilia-Romagna•API BolognaProvince of BolognaITL in cooperation w ith:-Uni. Modena - Reggio Emilia-SATA S.r.l.

•DUGOMRULLI, FEMI, •OBER, PASTORE & LOMBARDI,•VIABIZZUNO, DUE TORRI

THE COOPERATION AMONG SMES IN PROCUREMENT AND LOGISTICS MANAGEMENT

BOLOGNA

•Confindustria Emilia-Romagna•Assindustria Bologna

ITL in cooperation w ith:-Ducati Consulting

•DUCATI MOTOR HO LDING

•TRANSPORT & LOGISTICS OPERATORS

•EUROPEAN SUPPLYERS

THE DEVELOPMENT OF A EUROPEAN MILK-RUN SYSTEM: THE DUCATI MOTOR HO LDING CASE

BOLOGNA

REGIONREGION--ENTERPRISES LABENTERPRISES LABOTHER STARTING PILOTSOTHER STARTING PILOTS

NEW APPROACHES

Pilot practice D – TOWARD A DISTRICT LOGISTIC COMPANYTHE ASTRA CASE (PARMA)THE ASTRA CASE (PARMA)

Pilot practice E – THE NEEDS OF TRAINING IN LOGISITICS FOR SMES

Pilot practice F – THE MACROTHE MACRO--ECONOMIC IMPACT ECONOMIC IMPACT OF SUCH OF SUCH ““REGIONAL LOGISTICSREGIONAL LOGISTICS””APPROACHAPPROACH

…… SUMMARISING END ENDING SUMMARISING END ENDING ……

TENTEN--T EU AND NATIONAL TRANSPORT PROGRAMS T EU AND NATIONAL TRANSPORT PROGRAMS operate operate onlyonly at the at the ““MACRO LEVELMACRO LEVEL”” and in the LONGand in the LONG--TERM PERSPECTIVE (20TERM PERSPECTIVE (20--30 30 yearsyears).).

SMEs SMEs systemssystems requirerequire SHORTSHORT--TERM, TERM, ““MESO LEVELMESO LEVEL””, , CONCRETE INTERVENTIONS (2CONCRETE INTERVENTIONS (2--3 3 yearsyears))

…… payingpaying the the necessarynecessary attentionattention toto: : •• road road transporttransport innovationinnovation ((flowsflows and and fleetfleet management, new management, new

technologiestechnologies, ICT), ICT)•• cooperative cooperative environmentenvironment ((digitaldigital ecosystemsecosystems, , consortiaconsortia, , ……) ) •• districtdistrict logisticslogistics forfor SMEs SMEs systemssystems

…… THE REGION LEVEL COULD BE RIGHT FOR THIS TASKTHE REGION LEVEL COULD BE RIGHT FOR THIS TASK…… BUT IT REQUIRES A VERY STRONG COBUT IT REQUIRES A VERY STRONG CO--OPERATION AMONGOPERATION AMONG•• public public administrationadministration and company and company reprentativesreprentatives•• the public the public bodiesbodies themthem selvesselves ((RegionRegion--ProvincesProvinces--ChambersChambers of of

CommerceCommerce, , MunicipalitiesMunicipalities, , ……))

…… SUMMARISING END ENDING SUMMARISING END ENDING ……

TOWARD A REGIONALTOWARD A REGIONALLOGISTIC LAB ?LOGISTIC LAB ?

THANK YOU FORTHE KIND ATTENTION