DHL GLOBAL TECHNOLOGY CONFERENCE 2015 Breakout Session:
MULTIMODAL: FINDING THE RIGHT MIX OF TRANSPORT
COMBINATIONS
Dubai, 14-16 April 2015
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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
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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
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Examples of Multimodal platforms
Dubai “Logistics City” Rail connections China/Europe
Piraeus
…and a lot more
Planned OBAOR:
One belt. One road connection
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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
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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
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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
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Shippers challenges, needs and advantages – Microsoft
Pat Flynn
Global Logistics and Supply Chain Director, Microsoft
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Shippers challenges, needs and advantages – Ericsson AB
Peter Rundvall
RMEA Head of Distribution and Supply Trade
Compliance, Ericsson AB
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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
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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
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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
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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
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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
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Europe – Middle East – Africa (EMEA) MAP
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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
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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
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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
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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
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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”
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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
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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
26 Breakout Session MULTIMODAL | DHL Technology Conference Dubai | April 14-16 2015
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?
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You!
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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
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CASE STUDY 2: Rail/Road
Consignor
Outbound Rail
Gateways
Pre-carriage
Road Railfreight
Consignees
Final Road
Delivery
Road
Crossdock Terminal
Inbound Rail
Gateways
Customer challenge Multimodal solution Impact
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
Will be printed and placed in
room – but not presented in
detail
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CASE STUDY 3: Ocean/Road
Consignor
Outbound Ocean
Gateways
Pre-carriage
Road Oceanfreight
Consignees
Final Road
Delivery
Road
Crossdock Terminal
Inbound Ocean
Gateways
Customer challenge Multimodal solution Impact
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
Will be printed and placed in
room – but not presented in
detail