sustainable transport delivering fewer and friendlier miles
TRANSCRIPT
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