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Presentation PLANET 2001 EDINBURGH Introduction of Myself & My company Transportation – Background & How it works Removing waste in freight transportation Challenges to moving forward Colin Francis Colin Francis – My background

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PLANET 2001 EDINBURGH

Introduction of Myself & My company

Transportation – Background & How it works

Removing waste in freight transportation

Challenges to moving forward

Colin Francis

slide2

Colin Francis – My background

10 years of Industry Experience Running Inland & Vessel Operations.

With U.S. Lines managed daily 800 Trucks Rail & Barge loads and Equipment Fleet.

8 years Developing Transportation Systems & Inter modal efficiency

studies. In Europe & USA

With Sea-Land, CSX, Crowley & United Transport.

8 years Owning & running my own advanced technology company

Cairo Technologies in Cambridge

Mathematical Research LAB - Heterogeneous scheduling using soft time windows.

TMS – “PARIS” Optimal Inland Inter-modal Management system.

For Planning & Scheduling Freight Transportation.

2 years As an advisor to the Dutch Ministry of Education & Agriculture

Education in the digital age & advanced food distribution.

slide3

My former company

Cairo Technologiesis now LINe Research

owned by Hutchison Ports

Provide to Industry

  • Advanced Transport Technology to Integrate common Supply chain players.
  • New Business concepts, Based on process Re-Engineering.
  • Neutral Dispatch Services.
  • Pro active Business Support.
slide4

Containerized Freight Transportation

Background

  • Scope
  • Spend on Freight Transportation is around 3% to 5% of GDP
  • Movement of Manufactured goods & Raw materials,
    • Liquids in Tanks– Chemicals & Food
    • Dry bulk in Bulk Containers – Grains & Powders.
    • Heavy goods on Flats – Steel & Wood
    • Food in Refrigerated Containers
    • Manufactured goods in Dry Containers

Players

Cargo - Suppliers & Receivers (Panasonic, Heineken)

Arrangement - LSP’s - Shipping Lines, Agents & Freight Forwarders.

Physical - Truck, Rail & Barge operators & Ports & Inland Depots.

slide5

Containerized Freight Transportation

Background

State of the Industry

Annual Volume Growth 5 to 7%

Logistics Service Providers (LSP)

Shipping Lines, Freight Forwarders - Average profit 0 to 3%

Ports & Terminals - are continually downsizing staff

Rail Roads – Poor service with Average travel time of 16 km per hour.

Water barges are greatly underutilized

Roads congested with 40% Empty Trucks.

supply chain

Containerized Freight Transportation

Supply Chain

How it works

Supplier Receiver

Truck

Stop

Stop

Move

Warehouse

Warehouse

Port

Time: 08.00 11.00 16.30 17.15

Cost: Gate in Gate out Price per KM Gate in Gate out

  • Manufacturer
  • Ports
  • Rail Heads
  • Warehouse
  • Truck
  • Rail
  • Barge
  • Manufacturer
  • Ports
  • Rail Heads
  • Warehouse
cause of waste
Cause of waste

Internal Fragmentation

Departmentalised Organisation

Sales Booking Desk

Equipment

Dispatch

Cost

Control

Inbound

Outbound

Truck

Rail

Barge

North

Atlantic

Domestic

Assessorials

South East

West Coast

North East

cause of waste8
Cause of waste

Industry Fragmentation

Freight Forwarder

Heineken

Panasonic

Cargo Providers Logistics Service

Providers

Equipment & Static Mobility

Service Providers Providers

Shipping Line

Agents

Brokers

Customs

Ports

Rail Head

Vessel

Truck

Equip.Lease

Depots

Rail

Terminals

Barge

paris system
“PARIS” System

Data Burst

Delivering28 %Empty Savings

customer response
Customer Response

withBusiness, Technology,Organisation & Process solutionsat hand,

Why Isn’t it happening?

Lets take look at the Barriers

customer response11
Customer Response

When the new solution means a

Radical Change to Business Process

Typical Response

Apprehension & Fear of change

Typical Defense

“It’s too advanced for our time.”

The Solution has caused a Paradigm

Shift

customer response12
Customer Response

The Mega Transport Carriers

Competitive advantage

Do want these solutions BUT only developed internally

  • However reality check Which Results in;
  • Cannot sustain Long term project of many years
  • Reluctant to work with academia
  • Not enough project funding, priorities change
  • Internal use does Not solve industrial fragmentation
customer response13
Customer Response

Other Transport Carriers

Fear of Change

Lack of understanding

  • Which Results in;
  • No priority given to these solutions
  • Resist solution, cannot think differently than the results
  • of existing Manual methods.
solution
Solution

Provide Neutral Transport Technology Services

should focus on;

  • Cargo imbalance
  • Waste management
  • Internet & IVR Connectivity
  • Collaborative Technology
technical challenges
Technical Challenges
  • Combining Industry sectors;
  • Commodities: Liquids, Fresh, Bulk & Manufactured
  • Equipment: Containers & Trailers.
  • Planning & Scheduling Techniques;
  • Planning 100,000 loads a day in real time.
  • Collaborative Technology;
  • Planning 2000 separate companies together.
  • Predictive Solutions
  • Support Slow moving transport modes Rail & Barge
technical challenges16
Technical Challenges
  • Human intervention;
  • Flexible & “Human like” interaction
  • Integrated technologies
  • Mobile Phone Voice & Text
  • Internet
  • Geographic
  • Technology that covers 20 European languages & Local
  • 20 Separate Languages and regulations
  • Local technology standards
  • Global reach
practical issues
Practical Issues

Different approaches

  • Achieving the “Right” Technology
  • “PhD problem”Forming an elite group, does not work
  • Gaining Support
  • Government “should” threaten Industry with legislation
  • Recruit Shippers & Receivers to leverage support
  • Changing mind sets
  • Governments support Physical transportation projects
  • Bankers invest in Physical transportation Infrastructure
  • Users want to do the planning & scheduling
slide18

Need More Info;

Www.Cairo.co.uk

LINe Research

Cambridge 01223 - 531805

what is the top global commodity
What is the Top Global Commodity?

Aire

  • 40% of the world’s freight movement.
  • Costs over $ 100 billion to move it.
  • Employ’s 100,000’s + people

&

  • Moved by All Transport companies.

Luft

Air

Lucht

moving empty air
Moving Empty “Air”

Inefficiency Cost

  • $ 120 to $ 250 perload.

Environmental Cost

  • World wide 100’s millions Miles in air pollution & Infrastructure degradation.

Quality of service Cost

  • Empty Trucks cause their own traffic congestion.

Saving Costs & the Environment go hand in hand.

the cost of empty

35%

Total Inland Cost

$ 700

The Cost of Empty

Full Moves

$ 450

Empty Moves

$ 250

WASTE

The total cost of a deep sea load is $ 2100

35% of this cost is spent on Inland transport

slide23

Identify Waste - Trade lanes

Today - 40% Empty

Landmass 1

Landmass 2

West Bound

North Bound

Full moves

Empty Equipment moves

Landmass 3

slide24

Transport Efficiency Full/Full

Use technology to find Local Backloads.

Think Local

Think Local Think Local

Landmass

Landmass

West Bound

North Bound

Full moves

Empty Equipment moves

Landmass

identify waste
Identify waste

Empty Moves

How do we measure this ?

Use a computer system

to identify waste & remove waste automatically,

without the need for human intervention.

May be we should not measure it ?

solution26
Solution

We Need a tool to get us there

An Intelligent, Neutral

Seamless Transport System

solution27
Solution

Neutral Cargo & Equipment Planning Exchange

Heineken

Panasonic

Cargo Providers Logistics Service

Providers

Equipment

& Static Mobility

Services Providers

Shipping Line

Freight Forwarder

Common

Planning

Truck

Rail

Barge

Vessel

Shipping Line

Equip.Lease

Terminals

Depots

SMART Transport System

people process solution
People & Process Solution

Technology is the change Agent for -

  • Increasing Productivity
  • Reducing reliance on scarce skilled employees.
  • Providing business control.
so with business technology organisation process solutions at hand
SowithBusiness, Technology,Organisation & Process solutionsat hand,

Why Isn’t it happening?

Lets take look at the Barriers

internal barriers
Internal Barriers
  • Not invented here - AbilityAttack
  • I.T. Investment to date - Protectionism
  • Maintain the Status Quo – Loss of power
  • Job/Process Protection - Resistance to Change
external barriers
External Barriers

Collaboration with others - Protectionism

Grey Equipment– Loss of Control

Internet technology - Technophobia

conclusion
Conclusion
  • All are emotional.
  • None benefit business or the environment.
  • They are barriers to making a profit.

There are 1001 excuses notto do it.

Senior Management need to grasp the nettle

OR

Governments should legislate

the way forward shipper consignee

End Multi-modal Cargo Supply ChainEnd

Truck Vessel Rail

The way forwardShipper, Consignee.

Use common neutral technology.

  • Reap Your part of the efficiency savings.
  • Gain control of Your supply chain.
the way forward logistics service providers operators
The way forwardLogistics service providers & Operators

You need to use a collaborative Transport System which is visible to your clients.

slide35

1900’s End of an Era

The Industrial century has passed

Ship was king

2000 Dawn of the digital age

Technologywill rule this next century.

Game plan “Effective users win”

Thinking Collaborative Technology

is now king

thank you…………………………..Colin Francis