eric born, wincanton on 'next generation technology & sustainability

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EyeforTransport – 3PL summit24 November 2009

More than you think

Agenda

• The challenge

• The environmental imperative

• Macro factors

• The customer and the 3PL

• Identifying opportunities

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• Identifying opportunities

– Reengineering networks

– Intermodal alternatives

– Engineering and technology

• Drivers for success

– Developing and following a plan

– Creating the right culture

• Key learnings

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The sustainability challenge

Sustainability and the environmentally responsible development of the supply chain is not a cost; it makes good

business sense

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How can we…

• Do the right thing for the environment – and the P&L

• Balance customer requirements and our own goals

• Translate legislation into business practice

• Be proactive …. but not premature

• Not sacrifice the strategy for the action

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The case for the environment

Global emissions

• Transport emits 14 - 20% of global CO2

• Road transport currently accounts for

74% of global transport CO2 emissions

• It is the fastest growing source of GHG

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• It is the fastest growing source of GHG

emissions

• 95% of energy for transport comes from

petroleum

• Transport has become the main driver

for increasing primary oil demand

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‘Macro’ factors

IssueRising fuel costs

Traffic congestion

Road charges

What does the future hold?

ImpactFuel efficiency; alternative fuels

Extended delivery hours; LHVs

Technology

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2010 2015 2020 2025 2030

2012 – Congestion Zones in top 8 cities

2014 – 1st

compulsory consolidation centre

2012 - Night delivery rules relaxed

2016 - 25.25m LHVstrialled & Operational

2016 – Enforced Inter-modal usage %

2018 - Passenger freight combos

2023 - 1st city centre electric only

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Identifying opportunities

• Customers are championing lower carbon strategies

• The supply chain is just part of the challenge

• They will need data, guidance and solutions

• Proactive partnerships are the way forward

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Opportunities for reducing emissions

Assets andInfrastructure

(trucks andsheds)

Modes

(rail and waterways)

Engineeringandtechnology

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Reengineering networks

Savings and efficiencies should start with your own network; look for ways to collaborate, share assets and identify

synergies

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• Optimising assets – vehicle fleets; warehouses

• Shared user models – flexibility; cost-efficiency

• Collaborative working

• Strategic partnerships in service provision

• Consolidation centres

• Night time deliveries

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Intermodal alternatives

Did you know that Wincanton moves 7 million tonnes of product by rail in Mainland Europe alone?

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• Use of natural infrastructure – waterways

• Network linking sea ports with the hinterland

• Environmentally friendly alternative for slower moving

or bulk goods

• Terminals to transfer cargo onto rail for onward

transportation

• Cross-border routes – Kazakhstan and the oil fields

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Britvic multimodal case study

Objective: To implement a more efficient, sustainable transport solution between Central England and Scotland that

was fully integrated with the national transport network

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• Rail partnership with Malcolm Logistics between Daventry

railhead and Mossend / Grangemouth

• 50 loads per day or 1 million bottles of product (Robinsons,

Pepsi, Tango, J2O, Drench Water, Fruit Shoot)

• Consolidation of product at rail depot from 6 production sites

• Partnership ensures reverse outbound volumes from

Scotland

• Six figure saving; reduction of CO2 emissions by 3,285

tonnes per year

• Platform for growth with other customers

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Engineering and technology

Advances in vehicle design and technology are creating measurable benefits in terms of fuel efficiency

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• Vehicle design – aerodynamics, wind deflection, low

rolling resistance tyres, automatic idling

• Vehicle format - longer heavier vehicles; multi-

purpose vehicles

• Fuels – additives; biofuels; new fuels

• Technology – modelling, geofencing in transport

management, telematics

• Collaboration - opportunities to partner with

suppliers on developments and trials

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Developing a plan

• Governance and management

• Performance measurement

• Energy use and climate change

• Waste and recycling

• Progressive product leadership

Key result areas

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Creating the right culture

If businesses are to truly embrace sustainability,

they need to galvanise the support and enthusiasm

of their employees

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• Driver training and incentives

• Fuel efficient driving techniques

• Fuel champions on site

• M&S warehouse case study – customer focus

• Direct involvement in sustainable services

• Embedding measurement and metrics

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Key learnings

• Have a plan and work to it

– Take the lead rather than reacting to demands

• Be pragmatic

– Focus on investments that will deliver and are

controllable

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controllable

– Test and explore ‘next practice’

• Understand that it doesn’t need to cost more

– Principles of collaboration

– Eliminating waste from the supply chain

• Avoid the hype

– Don’t be tempted to ‘greenwash’

– Promote what you’ve done, rather than what you

will be doing

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