dhl global technology conference 2015...-full package of cfs services officially certified -customs...

DHL GLOBAL TECHNOLOGY CONFERENCE 2015 Breakout Session:

MULTIMODAL: FINDING THE RIGHT MIX OF TRANSPORT

COMBINATIONS

Dubai, 14-16 April 2015

2 Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015 2

What will happen in this session:

Agenda

• Introduction to Multimodal transport combinations

• Shippers challenges, needs and advantages – Microsoft and

Ericsson AB

• Supplier activities to create multimodal options –

COSCO/PCT

• Discussion and conclusion

Facilitators

• Thomas Kowitzki, Head of Product Development, DHL Freight

• Pat Flynn, Global Logistics and Supply Chain Director,

Microsoft

• Peter Rundvall, RMEA Head of Distribution and Supply Trade

Compliance, Ericsson AB

• Angelos Karakostas, Deputy General Manager

Tassos Vamvakidis, Commercial Manager,

COSCO & Piraeus Container Terminal (PCT)

Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015

Your view and input is highly appreciated

3 Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015 3 Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015

Dynamic world – Cost/benefit solutions subject to regular change

Steady search for better

transport solutions Trends & Innovations to

build multimodal platforms

1 2

Rapidly growing modality choices


Examples of Multimodal platforms

Dubai “Logistics City” Rail connections China/Europe

Piraeus

…and a lot more

Planned OBAOR:

One belt. One road connection

http://dpworld.ae/uploads/content/dlcity_large.jpg


Trends & Innovations to build multimodal platforms

Big investments are made in multimodal sea/airports

1

2

3

4

5

6

More and more China – Europe Rail connections v.v.

Expansion of X-Border road networks outside Europe/US

Alternative break-bulk intercontinental integrated solutions

Ecommerce demands integrated access to B2C networks

Cost drives shift from one mode to the other

Brest Malaszewicze

Moscow Yekaterinburg

Urumqi

Alashankou

Chengdu

Lodz

Iletsk

1

7 Emerging markets where structures are not so clear/stable yet

6 Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015 6

Economics

Transportation Cost (direct, fluctuations, customs, VAS, surcharges)

Time to market (transportation, congestions, reliability of mode)

Handling points, Delivery frequency, Probability of risks

Geography

Distance (shipment, to/from transshipment points/ports)

Shipment flow corridors

Presence of service providers and transshipment points

Infrastructure

Availability of equipment and capacities

Access to transport modes

Quality of infrastructure

Technology

Integrated Transport Management System / Platform across modes

End to End shipment visibility

Online Portals (booking, shipment execution, report)

Geopolitics

Political situation

Local laws & regulations

Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015

Steady search for better transport solutions and finding the

right mix of transport combinations

MULTI

MODAL

Infrastructure

Geography

Economics

Environmental

impact

Geopolitics

Technology

2


Connect the dots for seamless integrated sustainable solutions to lower

supply chain costs and a better service - Case studies selection

Cost

Speed

CO2

efficiency

modal Multi

high low

fast slow

low high

Classic

products

Airfreight

Intercontinental

Roadfreight

LTL/FTL

Oceanfreight

Intercontinental

Rail

FCL/LCL

Air/Road

Rail/Road

Ocean/Road


Shippers challenges, needs and advantages – Microsoft

Pat Flynn

Global Logistics and Supply Chain Director, Microsoft


Shippers challenges, needs and advantages – Ericsson AB

Peter Rundvall

RMEA Head of Distribution and Supply Trade

Compliance, Ericsson AB


By achieving sustainable

solution reducing the CO2

emission.

Finding new ways Better serve our customers

Environmental targets Process improvement

To satisfy changing

internal and external

requirements.

To deliver better Order to

Cash impact (Customer

invoicing).

By creating a transport

solutions toolbox to

enable just in time

deliveries.

Key drivers for Ericsson to seek multimodal solutions


Advantages and most important features

One Stop Shop:

Complement the traditional modes of transport

• Cost reduction compared to traditional airfreight

• Intermediate leadtime vs. Airfreight/Oceanfreight

• Significant impact on Order to Cash and capital tigh up

• CO2 Emission reduction compared to Airfreight

• Seamless End to End reporting


Challenges

Topics to be considered

• Convince the own team with the concept first…with a

business case.

• Find the solutions with a partner that positions itself in

between the traditional modes of transports

• Increase number of material handling occasions

(loading/offloading)

• Justify the cost increase vs. lead time over traditional

Oceanfreight and Ground mode of transports


Our multimodal solution – High level process

Ericsson

DC SE Verona IT

FTL, LTL, PTL

Road Oceanfreight

Consignees

in Middle East/Africa

Final Road

Delivery

Road

Crossdock Terminal

Middle East/Africa

Countries

Ericsson

DC SE Genoa IT

FCL

Rail Oceanreight

Consignees

Middle East/Africa

Final Road

Delivery

Road

Crossdock Terminal

Middle East/Africa

Countries


Ericsson strong Corporate sustainability

responsibility. We see tremendous impact on

CO2 emission leveraging multimodal solutions.

We owe this as a company to our environment.

Staying flexible Fit with supply chain strategy

Continous pressure to reduce CO2 Continously explore new ways

Building a tool box concept is key in order to

enable the right service for our customer

commitment weather its internal or external.

Without doubt we will strive to find smart ways

considering all transport modes. We see

multimodal as a future selling proposition.

We see multimodal solutions as highly imperative

supporting our business growth. Its perfectly

aligns into our strategies for this region.

Our multimodal solutions future

15 Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015

“Gateway and Distribution Center to

EMEA’’

PIRAEUS PORT

Geographical Position. Proximity in Europe,

Middle East, Africa & Black Sea

Owned modern Warehouse, operating within

Free Zone with state of the art Control tower

Multiple arrivals from China/Far East

Extensive Feedering Network with EMEA Ports.

Owned Free Zone

Owned modern “Strike Free” terminal with

high productivity & ability to serve 2x19,000

teus vessel concurrently.

Innovative VAT Regime

Nationalization, Calibration, Configuration

Supplier activities to create multimodal options – COSCO/PCT


Europe – Middle East – Africa (EMEA) MAP


China / Far East are directly connected with Piraeus with numerous services every week

Hereby, among others, introduction of the following COSCO services:

Indicative TATs to Piraeus:

Multiple arrivals from China / Far East

Asia-Mediterranean Express (MD1) North Europe Express Service (NE2) Asia/North Europe Weekly Express Service (NE7)

Busan Shanghai Ningbo Yantian Nansha Kaohsiung Xiamen Singapore

MD1 29 25 24 20 19 - - 15

NE2 - - - 17 22 19 - 13

NE7 - 22 25 - - - 20 14

TATs in days for the 3 direct weekly COSCO Services


concept Greece to become the Gateway to

Europe volumes originated in Far East

and forward it to Europe and v/v

Main gateways: Port of Piraeus & “El.

Venizelos” Athens International Airport

From LTL shipments up to Full loads

The main parties involved are DHL

Greece, Piraeus Consolidation and

Distribution Center S.A (PCDC), Port

Container Terminal (PCT), AIA (Athens

International Airport) and 3Party

Customs Brokers.

Greece with fast access to European Road Freight Network

Roadfreight Leadtimes ex Greece in days

Netherlands, Germany, Czech,

Slovakia

3-4

Austria, Slovakia, Hungary,

Romania

2-3

Bulgaria, Serbia 1-2


Feedering Network to EMEA Ports

Piraeus-Novorossiysk-Moscow

Novorossiysk

Piraeus

Moscow

Piraeus is an ideal Gateway to Moscow offering

direct connection to the Port of Novorossiysk

through multiple and reliable modes of transport up

to Moscow

Novorossiysk is an advantageous Port, comparing

with Saint Petersburg, for cargoes originated from

China/Far East, offering:

-Shorter TAT from China/Far East to Moscow

-ICE-FREE navigation around the year

-Feeder berthing upon arrival

-Full package of CFS services officially certified

-Customs bonded transportation

-Multimodal transport up to Moscow

-High standards of security by road transportation,

upon request (Double drivers/ Armed escort/ Armed

convoy/ GPS monitoring)

TAT (in days) from Novorossiysk to Moscow , via

different modes

Road by Platform 2 Road by Box Trailer 2

Rail (Single Container) 5-6 Rail (Block Train) 2

Transit Time

Piraeus-Novorossiysk 4 days


Feedering Network to EMEA Ports

Piraeus-Turkey

Mersin

Piraeus

Gebze

Piraeus is an ideal Gateway to Turkey

offering multiple direct connections to

the major Turkish Ports in shortest

TATs.

TAT (in days) from Piraeus

to Major Turkish Ports

(based on COSCO services)

Gebze (Yilport) 1

Haydarpasa 2

Izmir 3

Kumport 1

Mersin 6

Haydarpasa

Kumport

Izmir


Owned modern terminal with high productivity, motivating Carriers and Feeder operators to use it as a hub

“STRIKE FREE PORT” – PCT since 2010 is offering 24/7 uninterrupted services

Owned free zone

Owned rail ramp with connection to European rail network

Owned modern facilities with advanced warehouse functions

Connection with European Road network

Main components of a “Gateway and Distribution Center to EMEA”


TAT from Piraeus Container Terminal’s Rail

Ramp (in days)

Poland, Germany 4-5

Czech, Austria, Slovakia, Hungary 3-4

Romania 2-3

Bulgaria, Serbia 1-2

The Piraeus Container Terminal is linked

with the European Rail Network with its

owned Rail Ramp. Based on its facilities -

able to handle up to 10 trains per day - is

in a position to offer reliable rail

transportation solutions from Piraeus Port

to Central Europe & Balkans.

COSCO, is in a position, depending on

clients’ needs, to provide dedicated BLOCK

TRAIN facilities from Piraeus Port to Central

Europe & Balkans.

1d

2d

3d

4-5d

Railway Link with European Rail Network

z z

PIRAEUS FREE ZONE Type I – Benefits

No Customs

formalities are

required such as T1 document,

bonded guarantee

No special Customs license

required for

repacking or any other

simple handling or processing operations on goods

No transportation cost will be

applied, since the operation

area is situated inside

Piraeus Port

ISPS certified,

high security

standards, low

insurance cost

Flexibility in stocks and distribution

management, last minute planning

Fast processing, before or without

tax or customs

formalities

High IT services, providing

full electronic

files handling, for any

control by authorities


Group Discussion – We shared some experiences with you. What

experiences would your like to share with us?

Economics

Transportation Cost (direct, fluctuations, customs, VAS, surcharges)

Time to market (transportation, congestions, reliability of mode)

Handling points, Delivery frequency, Probability of risks

Geography

Distance (shipment, to/from transshipment points/ports)

Shipment flow corridors

Presence of service providers and transshipment points

Infrastructure

Availability of equipment and capacities

Access to transport modes

Quality of infrastructure

Technology

Integrated Transport Management System / Platform across modes

End to End shipment visibility

Online Portals (booking, shipment execution, report)

Geopolitics

Political situation

Local laws & regulations

MULTI

MODAL

Infrastructure

Geography

Economics

Environmental

impact

Geopolitics

Technology


GROUP DISCUSSION

Cost

Speed

CO2

efficiency

modal Multi

high low

fast slow

low high

Classic

products

Airfreight

Intercontinental

Roadfreight

LTL/FTL

Oceanfreight

Intercontinental

Rail

FCL/LCL

Air/Road

Rail/Road

Ocean/Road

Q1. Which case study do you see relevant to your

needs?

Q2. Where do you see additional opportunities for

multimodal transportation solutions?


You!


CASE STUDY 1: Air/Road

Consignor

Outbound Air

Gateways

Airport

Transfer Airfreight Consignees

Final Road

Delivery

Road

Crossdock Terminal

Inbound Air

Gateways

Customer challenge Multimodal solution Impact

Speed

Reduced transit times

of ~1–3 days through

direct shipping

Reliability

E2E ontime +95%

Visibility

Integrated system with

Purchase Order, Item,

HAWB level status view

Cost

Effectiveness through

bypassing warehouse

Reduce total logistics

costs

7-9 days Transit time

Asia to Europe

Improve delivery

quality

Simplify customs

solution

Increase shipment

visibility

Seamless integrated air/road

processing

EDI connectivity to single system

Shipment data linked to Purchase

Order

E2E Control Tower for Shipment

enquiries

One contract partner

Door-to-Door rate

Dedicated highvalue security

Will be printed and placed in

room – but not presented in

detail


CASE STUDY 2: Rail/Road

Consignor

Outbound Rail

Gateways

Pre-carriage

Road Railfreight

Consignees

Final Road

Delivery

Road

Crossdock Terminal

Inbound Rail

Gateways


Urgent shipments are

expensive to fly

Ocean freight too

slow for more urgent

shipments

Exact arrival

commitment before

the shipment moves

Volume fluctuation

incl. different

shipment sizes

Rail/road service between China

and France/Tunisia

Option for LCL and FCL service:

shipping single pallets as well as

full containers

Accurate arrival scheduling of

shipments

Buyers consol in China

Alternative in cost and

transit time to Air and

Ocean freight

Option to accommodate

different shipment sizes

and volume fluctuations

Strong geographical

coverage (e.g. LCL to

Tunisia with lead time of

25-26 days)

Economies of scale by

combining Chinese

suppliers



detail


CASE STUDY 3: Ocean/Road

Consignor

Outbound Ocean

Gateways

Pre-carriage

Road Oceanfreight

Consignees

Final Road

Delivery

Road

Crossdock Terminal

Inbound Ocean

Gateways


Collection from

different suppliers in

Asia

Too long lead times

Volume fluctuation

between small and

big shipments sizes

No end to end

visibility

Buyers consol OFR from Asia to

Hamburg, DE

Cross-docking, de-consolidation in one

hub

Central import customs clearance

Distribution via road network to Europe

Groupage, LTL and FTL services

End2End tracking tools

High security standards due to

technology products

Faster lead times with

high frequency of

departures

Adherence to security

standards

Seamless solution from

pick-up to delivery

End2End visibility

Possibility to send

different shipment sizes

Cost effectiveness

through bypassing

warehouse



detail

dhl global technology conference 2015...-full package of cfs services officially certified -customs...

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