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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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  1. 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

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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

  7. 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

  8. 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

  9. “PARIS” System Data Burst Delivering28 %Empty Savings

  10. Customer Response withBusiness, Technology,Organisation & Process solutionsat hand, Why Isn’t it happening? Lets take look at the Barriers

  11. 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

  12. 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

  13. 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.

  14. Solution Provide Neutral Transport Technology Services should focus on; • Cargo imbalance • Waste management • Internet & IVR Connectivity • Collaborative Technology

  15. 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

  16. 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

  17. 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

  18. Need More Info; Www.Cairo.co.uk LINe Research Cambridge 01223 - 531805

  19. Removing Waste A focus between the Loads

  20. 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

  21. 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.

  22. 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

  23. Identify Waste - Trade lanes Today - 40% Empty Landmass 1 Landmass 2 West Bound North Bound Full moves Empty Equipment moves Landmass 3

  24. 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

  25. 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 ?

  26. Solution We Need a tool to get us there An Intelligent, Neutral Seamless Transport System

  27. 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

  28. People & Process Solution Technology is the change Agent for - • Increasing Productivity • Reducing reliance on scarce skilled employees. • Providing business control.

  29. SowithBusiness, Technology,Organisation & Process solutionsat hand, Why Isn’t it happening? Lets take look at the Barriers

  30. 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

  31. External Barriers Collaboration with others - Protectionism Grey Equipment– Loss of Control Internet technology - Technophobia

  32. 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

  33. 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.

  34. The way forwardLogistics service providers & Operators You need to use a collaborative Transport System which is visible to your clients.

  35. 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

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