d2dlogit efficient transport management in the jan tore pedersen dag atle nesheim

d2dLogITEfficient Transport Management in the

Jan Tore PedersenDag Atle Nesheim

Integrating Transport Modes L

og

isti

cs c

ost

US

D p

er t

on

Producer

0

20

40

60

80

Customer

Land

Land and sea

Truck TransportProducer

“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

Systems TransportL4

3

Port Terminal

Distribution Terminal

Capacity co-ordination

Warehouse &

Secondary Distribution Terminal

Waterborne Backbone

LogIT d2dMaking Multimodal Transport Competitive

• 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

Producer

“Raw materials”

Customer

LogIT d2dManaging door-to-door multimodal transport

chains efficientlyTra in

Stevedore

LineAgent

Ship

Ord

er/

Co

nfir

mat

ion

Del

iver

y a

dvi

ce/C

onfir

mat

ion

Gate repo rt (CODECO)

B oo king(CO PR AR )/Conf irm

na ti o

S towage Ins truction (MOV INS)

Vesse l departure (VESDEP

)

Ta l ly

R

A

(

I

COR

)

Ma

s t e r p l a n ;Bay p la n /BAPL I )E

Dam ag e reportMa nifes t (IFT M C S )/E T A

E

TA

Vesse l a

rrival

M

an ifest (IFTM CS)

Re l e a se or d er (CO R

EO

R)

G a te re por t (COD

ECO

)

D a m a g e re p o rtStevedore

Term inal/Warehouse

Road

eFor cast, pre lim inary booki ng Booking (CO P RAR)

Booking confirm ation a S t tus report (IFTSTA ) r T ans p. Instr. (I FTM IN )

Fo recas

ry boo

t, P re lim i na

king

S ta tu s

(IFT

rr t

ST

e o

A

p

)

Transpo rt instructions (IFTM IN )

S ta tu s re p o rt (IF T S T A )

B o o k in g (IF T M B F )/C o n f i rm a tio n (IF T M B C )

Requ e s t f o r tra n s p o rt / C o n firm a tio n Tra n s p o rt s ta tu s in fo rm a tio n (IFTS T A )

P r o d u c t i o n p rog n o s is , P r o d u c t ion sta tu s

L in k in g item s , u n i ts, w a g o n s , v e h i c le s

A

v ail ab le unit s

A

rr iva l in fo (IF

T S T A ) / St at us ( IF T S T A)

S tuf f in g o r der ( C OS T O R )

H a nd li n g ord er, wei ght s

pec if i c a t io

ns

G a t e re p o r t (CO D E C O )

D am a g e re p o r t

a b

Ava i l le ve h i c les

Tra n s p ort i ns tru ction ( I F T M IN

)

S tatu s (IFTSTA)

Booking (IFTM B F ) / Co n f i r m a t ion (IF

T MBC

)

ia tio

Dev

n (TA)

IFTS

Av ve

a ilable hicles, w a g in s u n its

List o farriv ing wagons(IFTSTA)

Unloadingconfirm .

a

M

ster

pla

n, B

ay

pla

n (

BA

PLI

N)

Sa i

n

l in gi

str.

Ava ilab leunits

Wagons/Vehicles

Wagons/Tra ins

TransportChain

M anagem ent

M anufacturer

Custom er

UnitsWagons/Vehicles

UnitsVehicles

Transport Chain

Manager

Responsible fordoor-to-door

transport operations

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

Transport Management in NMC

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

ParticipantsElkem, the customer ordering door-to-door transport from the Transport Chain Manager (ENL in the current example)

ENL, organising the door-to-door transport on behalf of ELKEM

Transport service providers, performing the actual transport operations

LogIT d2dLogIT d2d

ConsignorConsignee

Rail

Port

VesselTerminal

Barge

Truck

Brokersand

agents

ENL

LogIT d2d Processes• 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

ShipmentPlanning

TransportExecution

Invoicing and Reporting

NetworkPlanning

Definition of Unit to be Transported

Important Relationships

• LogIT d2d holds relationships between– Trade units (cartons),– Logistics units (pallets or containers –

pallets may be placed in containers), and– Transport means

Definition of a Provider Service

Definition of a Voyage

Definition of Provider Service Cost

Information Exchange Between ENL and Provider

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

Comparison of chains pre-calculations

Common Currency: EUR Precalc 1 Precalc 2 Precalc 3Service Salten-Rotterdam Salten-Rotterdam Salten-Rotterdam

Ocean shipping from Salten to Rotterdam 1210 1210 1210Terminal Handling in Rotterdam 125 125 125IWS from Rotterdam to Weil am Rhein 350Rail from Rotterdam to Weil am Rhein 1150Terminal Handling in Weil am Rhein 50Truck from Weil am Rhein to Rheinfelden 50 50Direct truck from Rotterdam to Rheinfelden 1400Total Costs: 1 785,00 2 735,00 2 535,00

What LogIT d2d does (2)

ShipmentPlanning

TransportExecution

Invoicing and Reporting

NetworkPlanning

Booking by Customer

GeneralInformation

CargoInformation

Transport Chain Details

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)

ShipmentPlanning

TransportExecution

Invoicing and Reporting

NetworkPlanning

Monitor Progress

• Transport Means

• Load Units Showing complete transport chain

Showing only tour/voyage

Monitor Progress

• Geographical presentationVessel MS PERUVIAN

Status ON SCHEDULE

Voyage EC101

# TEU 150 (see all load units)

Redirect Cargo

• Procedure:1. Identify cargo2. If a complete shipment is to be

redirected, then modify the transport chain

3. If only a part of the shipment is to be redirected, split the cargo to be redirected and modify the relevant transport chain

Redirect containers

‘Dashboard’

Cross-Docking

Customer bookings

GustavsbergLogistics, Sweden

Norway Sweden Finland Baltics Denmark

Provider bookings/-instructions

Status Status Status Status Status

Gustavsberg,Sweden

Provider bookings/-instructions

Villeroy & Boch,Germany and France

What LogIT d2d does (4)

ShipmentPlanning

TransportExecution

Invoicing and Reporting

NetworkPlanning

Customer Invoice

Invoice elements

General invoice

information

Recording payments

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