eric born, wincanton on 'next generation technology & sustainability
DESCRIPTION
Eric Born, COO of Wincanton speaks on 'Next Generation Technology & Sustainability' at the 7th European 3PL Summit in Brussels, November 25th 2009. To download all of the slides from the conference for free visit www.3PLsummit.com/eu_2009pptsTRANSCRIPT
www.wincanton.co.uk
EyeforTransport – 3PL summit24 November 2009
More than you think
Agenda
• The challenge
• The environmental imperative
• Macro factors
• The customer and the 3PL
• Identifying opportunities
www.wincanton.co.uk
• Identifying opportunities
– Reengineering networks
– Intermodal alternatives
– Engineering and technology
• Drivers for success
– Developing and following a plan
– Creating the right culture
• Key learnings
More than you think
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
More than you think
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
More than you think
‘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
More than you think
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
www.wincanton.co.uk
Opportunities for reducing emissions
Assets andInfrastructure
(trucks andsheds)
Modes
(rail and waterways)
Engineeringandtechnology
More than you think
Reengineering networks
Savings and efficiencies should start with your own network; look for ways to collaborate, share assets and identify
synergies
www.wincanton.co.uk
• Optimising assets – vehicle fleets; warehouses
• Shared user models – flexibility; cost-efficiency
• Collaborative working
• Strategic partnerships in service provision
• Consolidation centres
• Night time deliveries
More than you think
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
More than you think
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
www.wincanton.co.uk
• 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
More than you think
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
More than you think
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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More than you think
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
More than you think
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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