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LogIT. d2d. Efficient Transport Management in the. Jan Tore Pedersen Dag Atle Nesheim. 80. 60. Customer. 40. Logistics cost USD per ton. Land. 20. Land and sea. 0. Producer. Integrating Transport Modes. Producer. “Raw materials”. Customer. Benefits for transport user
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LogIT d2d Efficient Transport Management in the Jan Tore Pedersen Dag Atle Nesheim
80 60 Customer 40 Logistics cost USD per ton Land 20 Land and sea 0 Producer Integrating Transport Modes
Producer “Raw materials” Customer • Benefits for transport user • Easy to use (one phone call is enough) • Flexible • Fast • Reliable service • Transparent (driver provides status information) • Cost effective • Problems for society • The annual transport spending in EU is 1000.000 million Euro • Transport is the second largest producer of CO2 • 7 500 km of motorways are congested every day • More than 40 000 people are killed in traffic every year Truck Transport
Systems Transport Capacity co-ordination Waterborne Backbone Port Terminal Distribution Terminal Warehouse & Secondary Distribution Terminal L43
Benefits for the user Easy to use Flexible Fast Reliable service Transparent Cost effective Benefits for society Waterborne transport takes larger part of transport growth Reduces congestion Reduces required energy consumption in transport Reduces other external costs Makes Europe more efficient from a transport and industrial viewpoint LogIT d2dMaking Multimodal Transport Competitive Producer “Raw materials” Customer
LogIT d2dManaging door-to-door multimodal transport chains efficiently Responsible for door-to-door transport operations Transport Chain Manager LogIT d2d adds value by simplifying the complexity of information exchange
Transport Management in NMC • Vision • Provide the equivalent of Amadeus capabilities (air travel) for door-to-door transport in NMC
D2D* Demonstrators • Farm Equipment - Germany to Australia: Truck, barge, truck, ocean shipping, truck. • Cars - Germany to Turkey: Train, short sea shipping, truck. • Ceramic tiles - Spain to the Canary Islands: truck, short sea shipping, truck. • Animal food - Portugal to the Azores: truck, short sea shipping, truck. * Project funded by EU DG TREN under the 65th Framework Programme
Silica from Salten, Norway to Rheinfelden, Germany • SSS Salten – Rotterdam: NCL • Terminal in Rotterdam: Euro Nordic / RST • Barge Rotterdam - Weil am Rhein: Euro Nordic / CCS • Terminal Weil am Rhein: CCS / Rhenus Kleyling • Truck Weil am Rhein / Rheinfelden: CCS / Rhenus Kleyling
Consignor Consignee Rail Truck Port Brokers and agents Barge Vessel Terminal Participants Elkem, the customer ordering door-to-door transport from the Transport Chain Manager (ENL in the current example) ENL ENL, organising the door-to-door transport on behalf of ELKEM Transport service providers, performing the actual transport operations
LogIT d2d Processes Network Planning • Organising single- or multimodal door-to-door transport operations • Long-term contracts • Individual shipments • Monitors progress, deals with deviations • Provides transparency • Provides basis for invoicing & claims handling • Monitors payment Shipment Planning Transport Execution Invoicing and Reporting
Important Relationships • LogIT d2d holds relationships between • Trade units (cartons), • Logistics units (pallets or containers – pallets may be placed in containers), and • Transport means
Standard Transport Chain • Starts at POL in Salten • SSS to Rotterdam • Terminal in Rotterdam • Barge on the Rhein to Weil am Rhein • Terminal in Weil am Rhein • Truck from Weil am Rhein to Rheinfelden
Alternative Chain I • Starts at POL in Salten • SSS to Rotterdam • Terminal in Rotterdam • Truck from Rotterdam to Rheinfelden
Alternative Chain II • Starts at POL in Salten • SSS to Rotterdam • Terminal in Rotterdam • Rail from Rotterdam to Weil am Rhein • Truck fra Weil am Rhein to Rheinfelden
Transport Network • Starts at POL in Salten • Passes through Rotterdam • Alternatives from RTM to RFN • IWS-TERM-TRUCK • TRUCK • RAIL-TRUCK
What LogIT d2d does (2) Network Planning Shipment Planning Transport Execution Invoicing and Reporting
Booking by Customer General Information Cargo Information
Booking for Ocean Transport General booking information Cargo information
Confirmation by Provider Provider confirms
Confirm Customer Booking • When all provider services are confirmed, customer booking may be confirmed Mark customer booking(s) Confirm customer booking(s)
What LogIT d2d does (3) Network Planning Shipment Planning Transport Execution Invoicing and Reporting
Monitor Progress • Load Units Showing complete transport chain • Transport Means Showing only tour/voyage
Monitor Progress • Geographical presentation
Redirect Cargo • Procedure: • Identify cargo • If a complete shipment is to be redirected, then modify the transport chain • If only a part of the shipment is to be redirected, split the cargo to be redirected and modify the relevant transport chain
Cross-Docking Customer bookings Gustavsberg, Sweden Villeroy & Boch, Germany and France Gustavsberg Logistics, Sweden Provider bookings/-instructions Provider bookings/-instructions Status Status Status Status Status Norway Sweden Finland Baltics Denmark
What LogIT d2d does (4) Network Planning Shipment Planning Transport Execution Invoicing and Reporting
Customer Invoice Recording payments General invoice information Invoice elements
Potential LogIT d2d Users • Manufacturing companies outsourcing transport services but keeping control of the logistics processes • Transport service providers taking on the responsibility for multi-modal door-to-door services (3rd party logistics providers) • Freight forwarders (4th party logistics providers)
LogIT d2d Benefits • Providing a simple “one-stop-shop” for transport users • Selecting the most efficient door-to-door service by comparing costs and schedules. • Providing efficient communication to transport users and service providers for booking, confirmation, invoicing and payment. • Keeping transport users and service providers continuously informed about transport status. • Enhancing, not replacing, existing information technology applications.
Loaded Goods Report • Information about what actually was loaded