Benefits of cargo pooling with Cinatis Way

How to achieve your cargo pooling with CINATIS WAY?

BREAKING POINT FOR

TRANSPORATION SECTOR IN EUROPE

Freight transport at dawn of a new era

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1Benefits of cargo pooling with Cinatis Way

In the 20th century, transportation was dedicated!

A transport multiplication, with common starting and finish points Obviously every shipper optimize … within the limits of its possibilities (volume/appointments) This competitive system creates additional costs and issues with challenging customers Routes are operated even if trucks aren’t complete (respect of commitment) Operative times and run distances are high (carriers)

As a result a filling rate of 2/3*

3* Source ADEME

Evolution Pooling Cinatis Benchmark

Benefits of cargo pooling with Cinatis Way

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We can admit that there is no true praise!

Increase of run kilometers

Drop of fuel consumption

Raise of greenhouse gas

Infrastructures saturation



In summary, transport faces a structural pressure without precedent

• Increased energy cost with an important varation of fuel indexation

• A new taxation weighing by 2013 to 10% on transportation cost

• Permanent strain on prices• 54% of logistics costs

concerns transport

Costs

• A weak filling rate of vehicles

• Increased greenhouse gases

• Modal transfer from road to rail or river is hard

• Crowed infrastructures

Environment

• Constant flow imbalance• Hazards on transport

means availability• Deliveries smaller and

smaller• High deliveries frequencies• Business rules are changing

constantly• Many transportation

partners

Organization

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FREIGHT POOLING IS THE

SOLUTION OF LOGISTICS OPTIMIZATION

What benefits can I have pooling cargo?

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Cargo pooling consists in bringing stakeholders together by compatibility and organizing their collaboration

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Cinatis sets up new relationships between stakeholders and carriers

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More delivery frequencies

Less greenhouse gases emission

Fall in transport costs from 5 to

15%

Guaranteed activity per

carrier

Transport Operations scheduling

Permanent Flow Optimization



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Cargo pooling is the most efficient solution of logistics optimization

R.O.I.ImmediatlyShort-TermMid-TermLong Term

NeededResources

Weak

Moderate

Strong

T.M.S.

W.M.S.

E.R.P.

A.P.S.

R.F.I.D.

Thanks to its easy roll out and the granted profits, cargo pooling appears to companies as an essential productivity theme

Multimodal



In overview, cargo pooling is the best solution for logistics optimization for the years to come

Structure all the logistical

processesEntities’

synchronization of every group member enables to improve all

the processes (scheduling, supply, production, picking

order, administrative management)

Improve the service

Cargo pooling ensures to increase delivery frequencies without

deteriorating transport costs and lowering stock shortages

Conciliate results and sustainable development

The decrease in vehicles number makes it possible simultaneously to improve the

transport costs and to reduce the greenhouse gases emission for transportation activities

Work on every lever

concurrently

Cargo pooling comply as a complement with

so far antonymic goals: generate

savings improving the environmental impact

and the service

Cargo pooling

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CINATIS WAY, THE SOLUTION FOR

CARGO POOLING SUPPORT

A new logistics data system dedicated to collaboration

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Web-based solutions editor, for supply chain communities

SAS : Company with a capital of € 94,000 supported by Logoden, OSEO, Brittany Regional Council and the French ‘Technopole’ network.

Background : Editor of web-solutions for logistical activities (SaaS-based)

Project : to become the first collaborative transportation network in Europe

Board : 3 founder-partners from supply chain universe.



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Cinatis Way is a Web-based collaborative platform for cargo pooling

Partners

Search

•Online multilingual platform ensuring the creation and the management of shippers communities for pooling their cargos.

•Every shipper, as Cinatis member, can find partners shippers according to their compatibility flows

Pooling

•It consists in realizing daily « carpool » operations for cargo with compatible flows.

•As a SaaS-based platform, Cinatis way is interfaced easily with platform users’ Information Systems.

Transport execution

•Transport is realized by carriers selected by members.

•Carriers can add in their transport schedules, the flows aggregated by Cinatis users.



Cinatis Way meets with all the players’ interests

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Solutionde

mutualisation

CARRIER

Increase the transport

profitability through a higher

productivity resources

RETAILER

Be delivered as frequent as possible while respecting timewindows

MANUFACTURER

Minimize its transport costs smoothing its production

GOVERNMENT

Optimize the infrastructure and

reduce the greenhouse gases

emissions

CINATIS WAYCollaborative

Transportation Management System



Cinatis Way suggests to build dedicated networks for every core business

Networks can be considered as interconnected planets.

Cinatis platform is configurable for considering characteristics for every network.

The link between entre networks enables to optimize transportation resources.

Every network can be defined according to geographical considerations.

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Automotive Food retail

Non-residential catering

Downtown deliveryNon-food retail



The Cloud-base mode enables to focus on added value for the end-user

Billing according to subscription.

No hardware investment

Releases are deployed in real-time and without over cost.

Software monitoring realized by Cinatis

Simplification of deployment over all your sites and for all your end-users.



The benefits to deploy the pooling system Cinatis

Skill for specific processes of pooling Setting up of groups according to compatibilities Perfect control of success key factors Approach with carriers

Project staffs able to animate operationally workgroups

Tried and tested work managements and tools enabling : To build an progressive and long-term solution To maximize potential profits from pooling

Huge operational background with ability to support roll out steps : Implementation of project management Monitoring Support to change management



UTILIZATION CASES OF CINATIS

PLATFORM

Who has pooled cargo and what benefits are shown?

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The results obtained for the first 35 cargo pooling initiatives encourage an exponential development for its approach

Cargo pooling initiatives have been promoted by retailers, manufacturers, SMB and global companies.

For whatever players size, they obtain gains according to the flow they aggregate.

Higher the share of pooled flow is, bigger the gains are for every player.

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Andros, Auchan, Bénédicta, Bongrain, Bel, Bridgestone, Cadburry, Carrefour, CAM 53, CAM 56, Casino, Castorama, CEPA LDC, CECAB, Coca Cola, Colgate, Conforama, Continental, Coopagri, Damart, Danone, Entremont, Eugène Perma, GSK, Heinz, Henkel, Ikea, Kronenbourg, Lactalis, Lustucru, Marie, Mars, Materne, Monoprix, Montblanc, Nestlé, Normand’vie, Nutrimaine, Ovomaltine, Picard, Reckitt, Sara Lee, Senoble, Sodiaal, Sunny Delight, Unilever, United Biscuits, Vegam, Verywear, Yoplait,



Carrefour has already "pooled" 400 suppliers but some issues have to solved

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1 network with 10 consolidation DC

400 SMB suppliers with a same delivery point

Optimized truck for inbound flows

Products shortages in stores reduced by 50%

Inbound transport costs decreased by 6%

Delivery frequencies multiplied by 3



Initiative of 2 FMCG major companies

Cadbury and Sara Lee have launched a cargo polling project in 2004, based a platform (annual factory pool of 460000 pallets toward 7 retailers i.e. 40 delivery points). Every point is delivered from 2 to 4 times per week. The project goals are reached :

The solution meets the customers needs Delivery frequencies are increased Logistics costs are decreased Order-fill ratio is raised

For the customers, the benefits are also significant. For example for Carrefour :

Stock level have been reduced by 38% and 15% Order-fill ratio has risen by 0,6 point for 1 year Deliveries have dropped by 36 % 93 tons of CO² have been cut annually

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Gains for Cadbury - Sara Lee Supply Chain

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Benefits Drawback

Global

Drop in transport costs : full-loaded trucks optimization, balances order elimination

Complex process to roll out

Fall of CO2 emission Rise in constraints

Process and organizations standardization (daily issues can be spotted and solved)

Improvement in forecast and reactivity : cargo pooling ensures spreading over time activity

Better customer service

Retailers

Raise in delivery frequencies Increased suppliers weight, even more so they are numerous

Increase in order-fill ratio

Drop in stock

Suppliers

Competitive benefit from logistics costs pooling, improved management for product launching, seasonal products and special offers

Long-term bond (on 2 to 4 years) at least with one or several partnersIncrease in picking costs (layer/parcel, vs pallet)

Source JC Festinger - AslogBenefits of cargo pooling with Cinatis Way

French food-processing SMB enable to increase delivery frequencies fourfold without over cost

5 dry-goods shippers are pooling their cargos to deliver Carrefour platforms by multi-pick

Solution operated trough 2 platforms with 27 pallets per shipment => filling rate of 82%

Order-fill rate of 100% since the beginning

Drop in transportation costs of 25%

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French food-processing SMB enable to increase delivery frequencies fourfold without over cost

Faster

More productive

Less empty

Less km

Less CO2 emissions24

More reliable transport

Better mobility

Stronger reactivity

Costs control

Less receipts in platform

Less stock (-15d)

Less shortages in store

MANUFACTURER CARRIER RETAILER



In summary, 3 main benefits arise from the 35 first benchmarks and explains the enthusiasm for this new action lever

1) More economical transports improving occupancy rate of trucks and optimizing transportation plan

2) More eco-friendly transport reducing the mileage and the fuel consumption

3) The opportunity to make the most of a higher delivery frequency owing to the volume per destination increase

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The 5 to 15% gain is depending on the volume we can inject into the pooling network



For further information, please contact us [email protected]

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Benefits of cargo pooling with Cinatis Way

Business

Transcript of Benefits of cargo pooling with Cinatis Way