Bo2 6 Sustainable Transport

80
1 Sustainable Transport: collaboration goes green

Transcript of Bo2 6 Sustainable Transport

1

Sustainable Transport: collaboration goes green

2

Questions to panel of speakers Discussion

Close

Olivier LABASSE, ECR France

Thomas DUBRULLE, CarrefourXavier PERRAUDIN, Benedicta

Patrice MINZOLINI, Cadbury Rémi SOURIN, Cora

Cases from ECR France

Peter LATHAM, Coca-Cola Enterprises Ltd

Gavin CHAPPELL, Alliance Boots

Cases from ECR UK

Olivier LABASSE, ECR France

Darran WATKINS, ECR UK

Introduction

Agenda

3

Environmental costs

Internalisation

Environmental costs

Internalisation

Greenhouse gas

Greenhouse gas

PollutionPollution

Road security policy

Road security policy

European transportation

white book

European transportation

white book

LegislationLegislation

Fiscal and social legislation distortions

Fiscal and social legislation distortions

Multimodal implementation?

Multimodal implementation?

Railway’s failure

Capacity shortages

Capacity shortages

Road saturationRoad saturation

Gasoline costsGasoline costs

Transportation costs increase

Transportation costs increaseTransportation

demand increase

Transportation demand increase

Network geography

Network geography

Transport background

Out of stockOut of stock Just in timeJust in time

Inventory level and quality

Inventory level and quality

4

Introduction

• Pressures on fuel, labour costs, road congestion and greenhouse gas reduction have moved to the top of the agenda of our industry

• Collaborative transport optimisation has economic and environmental benefits while providing better service to consumer

• The session will show how companies reach the same objectives in different countries using different tools

5

Sustainable development: one global approach, one European policy, national strategies, local implementations

Social progress Environment conservation

Economic growth

Sustainable development

Deep-seated obligation for our companies

6

A shared approach

Improved Vehicle Fill

Improved Vehicle Fill

Economic

Benefits

Environmental

Benefits

Social

Benefits

Economic

Benefits

Environmental

Benefits

Social

Benefits

Face-to-Face &

On-Line Collaborative

Tools

Multi-Partner

Distribution

Face-to-Face &

On-Line Collaborative

Tools

Multi-Partner

Distribution

UK Cases

• ECR UK Collaborative Green Distribution

• Darran WATKINS, IGD/ECR UK

• Sharing Transport to Reduce Costs, Congestion and Emissions

• Peter LATHAM, Coca-Cola Enterprises Ltd

• A Collaborative Distribution Solution in Scotland

• Gavin CHAPPELL, Alliance Boots

ECR UK Board

14 Retailers

21 Suppliers

ECR UK Board

Availability Workgroup

RetailPackagingWorkgroup

Diane CarterCentral Retail Operations Director

Sainsbury's

Chris TyasSupply Chain Director Nestlé

People

Engagement – last 50 metres

Subgroup

Insights –

squeezing out the last drop?

Subgroup

Convenience Store Subgroup

Business Case

Subgroup

EnvironmentSubgroup

Date Coding

Subgroup

Shelf SizesSubgroup

CollaborativeGreen

DistributionWorkgroup

Functional

GuidelinesSubgroup

MU Subgroup

Multi-partnerTrunking

Subgroup

RemotePlaces

Subgroup

KPI’s& Enablers

Subgroups

Learning & Change

• Activities have doubled between 2005 and 2007

• Over 150 people from the industry directly contribute to ECR activities

ECR UK Structure & Activities

Food Industry Sustainability Strategy (FISS)

Clear targets were set for the industry including:

• Reduction of carbon emissions by 20% by 2010

• Reduction of water usage by 10-15% by 2010

• A significant reduction in the environmental and social

costs of domestic food transportation by 2012

• Reduction in food waste of 15-20% by 2010 by the food manufacturing sector

Action Main

impact

Greater capacity vehicles Fewer

Out of hours deliveries Friendlier

Engine specifications Friendlier

Vehicle telematics/CVRS Fewer

Transport collaboration Fewer

Logistics systems redesign Fewer

Total Both

Transport Champions Group

The Transport “Big Six”

Peter Latham

VP Supply Chain

Development Europe

Sharing Transport to Reduce Costs, Congestion and Emissions

Why Collaborative Green Transport ?

Source: Transport 2000 Trust, DEFRA

Challenged by the Government to:

• Reduce carbon emissions by 20% by 2010 againsta 1990 baseline

• Significantly reduce the environmental and socialcosts of domestic food transportation by 2012

In the UK, the food chain accounts for:

• At least 22% of the UK total of greenhousegas emissions

• 25% of all HGV vehicle kilometres in the UK

Why Collaborative Green Transport ?

Cost Service

What Is It ?

What Is It ?

What Are We Working On ?

Collaborative Trunking

Collaborative Distribution Interactive Sessions

Name(s)

Job Title(s) Record Sheet Company

10:10-12:00 Presentations and your first impressions

12:00-12:40 Speed-Dating to check your assumptions

12:40-12:45 ‘Real’ Dates requested / organised

Company Yes / No / ? Flirt / Divert Why Wish list Time & Place

Booker

Boots The Chemist

CCE

Dairy Crest

Grampian Country Transport

Musgrave Budgens Londis

Nestle

RHM Group Logistics

Tesco

Unilever ICF

ECR Collaborative Distribution Workgroup

Trunking Project – Case Study Record

Purpose of document

The purpose of the document is to record the progress of partners in identifying

opportunities to remove empty trunking miles. By logging the issues encountered and

solutions found through all the stages of the process, a case study record can be

developed for dissemination across the wider ECR community

At the collaborative trunking ‘speed dating’ event there are many potential pairs of

partners with opportunities to explore. This document is intended to log the progress

of these opportunities in a common format which in total will form a substantial case

study.

The document is intended to follow the likely process, please amend the document as

appropriate to match what actually happens.

Partners

Completed by

Date

Collaborative Trunking - Rollout

http://www.igd.com/collaborativedistribution

Ambient and chilled collaborative distribution sessions held in Q4 2006 and Q1 2007

Opportunities to Save

687 loads/week= 5,100,000

miles pa

The opportunities are clear:

it’s up to individuals to implement!

Collaborative Trunking – Case Study

Gavin Chappell

Supply Chain Director

Shared Deliveries in Far Flung Places

What is the Issue ?

Dedicated 3rd Party Accountswith specific:

• Fleet configuration

• Delivery processes

• Paperwork• Security / controls

• Transit Media• Returns Processes

• Commercial Model• Delivery slots

/ store arrangements

Typical Groupage Services

- General:

• Shared user• Limited value added

services

• Single transit media (pallets or cages)

• Common commercial model

• ECONOMIES OF SCALE

ORAND

Far Flung Places

> 80% Population live in the Central Belt

High St Retailers Have:

• Distribution Centres in central belt (Edinburgh / Glasgow)

• Dedicated fleets of small vehicles

• Long delivery runs (some 2 man) to outlying stores

• Grocers have Full Truck Load deliveries to most stores

Suppliers Have:

• Few manufacturing facilities north of central belt to utilise returning legs

Current Model

Retailer A Retailer CRetailer B

Supplier 1

An Alternative Model

Retailer A Retailer CRetailer B

Supplier 1

Double Deck

Rigid

Cross DockPlatform

Far Flung Places – Potential Savings

Definite Winner !

• 6 % saving in shifts

• 16% saving in trips

• 39% saving in miles

• 11,700 miles / day

• 3,600,000 miles / year

What Do We Want ?

• 3rd party to provide clear accountability for:

• Store service

• Security

• Insurance

• Billing

• KPI reporting

• Return load management

• To Hub

• To point of origin

• Scheduling

• Issue resolution

Outcomes – 3 Pilots

• Pilot 1 – Inverness

– Potential to share an existing facility and use an existing shared user network

• Pilot 2 – Aberdeen

– Potential to use an existing shared user network

• Pilot 3 – Highlands & Islands

– Shared transport opportunity

Pilots 1 & 2 (Boots The Chemist Only)

• Financial savings and reduced mileage

• Store delivery times maintained

• Stores to get increase in weekly delivery frequency: 6 times vs. 3 today

• Better availability for our consumers

• Physical operation to start end of May ‘07

Conclusion

• The “Greenness” of our industry is not going to

go away

• If we don’t do something about it, the

Government will

• There are simple things we can do to make a

difference now

• We need the 3PL companies and other service

providers to come with us

• Collaborative Green Transport offers us a way of

saving money and the planet!

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

French casesFrench cases

The ECR France 2007 “green comparator”Olivier LABASSE

2 success stories of sustainable collaborative transport optimisation which reduce environmental impacts and costs and improve delivery frequencies – Multiplayer CMI between 3 SME and one large retailer, Xavier PERRAUDIN, Benedicta & Thomas DUBRULLE, Carrefour

– Multiplayer CMI between 2 large manufacturers and 2 RDC of one retailer, Patrice MINZOLINI, Cadbury & Rémi SOURIN, Cora

The ECR “Transport web dating”

The ECR France 2007 “green comparator”Olivier LABASSE

2 success stories of sustainable collaborative transport optimisation which reduce environmental impacts and costs and improve delivery frequencies – Multiplayer CMI between 3 SME and one large retailer, Xavier PERRAUDIN, Benedicta & Thomas DUBRULLE, Carrefour

– Multiplayer CMI between 2 large manufacturers and 2 RDC of one retailer, Patrice MINZOLINI, Cadbury & Rémi SOURIN, Cora

The ECR “Transport web dating”

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Some French trends in logisticsSome French trends in logistics

Retailers expectations – To reduce inventories (- 10 days in 3 years)

– To maintain an outstanding service level from their suppliers (large companies or SMEs)

Manufacturers expectations– To control logistics costs

– To improve on shelf availability

Transport evolution – Increasing costs trend (+8,5% between 2004 and 2006)

– Decreasing offer (regional difficulties to deliver South of France, Brittany … especially during peak seasons)

Retailers expectations – To reduce inventories (- 10 days in 3 years)

– To maintain an outstanding service level from their suppliers (large companies or SMEs)

Manufacturers expectations– To control logistics costs

– To improve on shelf availability

Transport evolution – Increasing costs trend (+8,5% between 2004 and 2006)

– Decreasing offer (regional difficulties to deliver South of France, Brittany … especially during peak seasons)

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

What is at stake?What is at stake?

Economic stakes of mutualisation – Transport costs control– Inventory costs reduction – Increase of service level by increasing delivery frequencies

Environmental stakes of better trucks fulfilment – CO2 reduction– Gasoline consumption reduction– Road congestion reduction

Economic stakes of mutualisation – Transport costs control– Inventory costs reduction – Increase of service level by increasing delivery frequencies

Environmental stakes of better trucks fulfilment – CO2 reduction– Gasoline consumption reduction– Road congestion reduction

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Retailer distribution centre supplying grocery

Retailer distribution centre supplying grocery

Pallets / deliveriesRDC Supply in pallets per day

0

5

10

15

20

25

30

35

40

0%

5%

10%

16%

21%

26%

31%

36%

41%

46%

52%

57%

62%

67%

72%

77%

82%

88%

93%

98%

Nb

Pa

lle

ts

Average 17,71 pal/supply

15% of deliveries > to 33 pallets 50% of deliveries < à 5 pallets

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

How to optimize the truck fulfilment?How to optimize the truck fulfilment?

Multiplayer CMI

Synchronization of bookings

Multidrop

Multipick

Supplier BSupplier A

A + B

Points of sale

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

How to solve the contradiction?How to solve the contradiction?

≠≠MutualisationMutualisationMore full trucksMore full trucks

More frequent deliveries

More frequent deliveries

Increase of service level

Decrease of inventory cost

Improvement of freshness and quality of products

Increase of service level

Decrease of inventory cost

Improvement of freshness and quality of products

Control of logistic costs

Reduction of environmental impacts

Reduction of road congestion

Control of logistic costs

Reduction of environmental impacts

Reduction of road congestion

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Optimisation of vehicles filling with bookings synchronisation

Optimisation of vehicles filling with bookings synchronisation

Source: Hays logistique

� If manufacturer alone

� Current organisation (with logistics provider optimisation)

� Organisation in CMI with bookings synchronisation

48%1694915 002Manufacturer 5

27%93773 311Manufacturer 4

6%289177Manufacturer 3

20%72681 784Manufacturer 2

12%43541 347Manufacturer 1

Vehicule fillNb of floor pallets / delivery

Nb of deliveries

Nb of floor pallets

43%141 53521 621Total

88%2974321 621Total

32%112 03721 621Total

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Economic stakes of the multiplayer CMI for grocery by suppliers’ types

Economic stakes of the multiplayer CMI for grocery by suppliers’ types

Cost in

% of the manu-facturer

selling price

Inventory in retailer’s warehouse

6,886,8Average

7,5

3 deliveries a week

9,8

3 deliveries a week

7,5

0,4 delivery a weekD

6,7

4 deliveries a week

8,8

4 deliveries a week

6,5

0,9 delivery a weekC

6,7

5 deliveries a week

8

5 deliveries a week

6,7

1,4 deliveries a week B

6,6

6 deliveries a week

6,6

6 deliveries a week

6,7

6 deliveries a weekA

< 13 days< 16 days23 days

With mutualisationWithout

mutualisation

In CMI

Initial situation

���� Economies realised thanks to the mutualisation of CMI: almost 1,2% of the manufacturers’ turnover in average

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Greenhouse gas emission distribution in France

Greenhouse gas emission distribution Greenhouse gas emission distribution in Francein France

�� CO2 worrying growth for transport sectorCO2 worrying growth for transport sector

Source: CITEPA / coralie / format SECTEN, mise à jour 27/02/03

13%

22%

24%

28%

1%

12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20022002

0

20

40

60

80

100

120

140

160

180

200

1970 1980 1990 2000

Mt CO2

Transports

ResidentialTertiary

Manufacturing industry

Energytransformation

AgricultureForestry

Others

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

The French green comparatorThe French green comparator

Simulation tool developed in collaboration with ADEME to assess the potential savings in

– gasoline

– CO2

– vehicles.kilometres

of the new transport solutions by comparison with the initial situation

Objectives

– Road congestion diminution

– Greenhouse gas emission reduction

– Fossil energy saving

Simulation tool developed in collaboration with ADEME to assess the potential savings in

– gasoline

– CO2

– vehicles.kilometres

of the new transport solutions by comparison with the initial situation

Objectives

– Road congestion diminution

– Greenhouse gas emission reduction

– Fossil energy saving

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

The collective green counterThe collective green counter

00

Tons of CO2Tons of CO2 Litres of gasolineLitres of gasoline

Vehicle.kmsVehicle.kms

Monitoring reduction of Monitoring reduction of

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Working group’s membersWorking group’s members

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Xavier PERRAUDINThomas DUBRULLE

Multi-players CMI between

3 SME food companies,a third party logistics operator,

6 hauliersand a major retailer

Multi-players CMI between

3 SME food companies,a third party logistics operator,

6 hauliersand a major retailer

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

FRANCE

1025 supermarkets &

1649 convenience stores

delivered by 16 RDC

218 hypermarkets

delivered by 10 RDC

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

N°2 in the Cold Sauces Market in France Market Share in Value ���� 26,4 %*(*Source: AC Nielsen; cumulative value at the end of March 2007)

an independent SME

2006 ���� 115 M€ Turnover / 235 people

an independent SME

2006 ���� 115 M€ Turnover / 235 people

N°1 in Variety Sauces

MS ���� 39,4%*

N°1 in Salad Dressings

MS ���� 36,7%*

N°2 in Mayonnaise / MS ���� 22,0%*

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

another independent SMEanother independent SME

33 M€ Turnover / 65 people (in 2004)

N°3 in Chocolate Powder market

Market Share ���� ~13,3%

Brands ���� BANANIA, BENCO

33 M€ Turnover / 65 people (in 2004)

N°3 in Chocolate Powder market

Market Share ���� ~13,3%

Brands ���� BANANIA, BENCO

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Pastacorp, again another independent SME

Pastacorp, again another independent SME

86 M€ Turnover / 250 people (in 2005)

N°3 in the Pasta Market in France

86 M€ Turnover / 250 people (in 2005)

N°3 in the Pasta Market in France

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

A collaborative answer

A mutualised multi-players approach

How to organise

COMBINED deliveries

from ONE single physical depot

to ONE single RDC

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

A practical and viable approach

At technical and operational levels

� low investment / easy to set-up

� simple to manage

Without forgetting environmental effects

���� less CO2 consumption

But also from an economic point of view

���� no logistics’ cost increase at a minimum

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

A step by step approach���� First tested with 2 SME

October 2004first set-ups

Q1&2 2005First combined

deliveries

October 2005Combined deliveries

100% RDC

One 3rd party logistic operator

Six regional hauliers

2 SME

One major retailer

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

A step by step approach���� then extended to a 3rd SME

October 2005first set-ups

February 2007Combined deliveries

100% Delivery Points

One 3rd Party Logistic Operator

Six Regional Hauliers

3 SME

One major Retailer

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Flow chart physical mutualisation

Retailer DC

The 3 companiesshare the same externalised

facilities for storage and picking

Only one single point of deliverysame booking

(location/day/hour)

Banania factory

BénédictaStorage

Banania

Storage

Lustucru

Storage

Bénédicta factory

Lustucru factory

A chosen haulier (partner) takes goods in charge from a unique binary

(synchronised picking and loading)

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

B

Pont de Veyle

Le Bourget

Bassens

A step by step approach:before mutualisation

Average deliveries10 pallets once a week

Average deliveries10 pallets 1,1 times a week

Average deliveries11,5 pallets 1,5 times a week

factory

Benedicta centralwarehouse

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

B

Pont de Veyle

Le Bourget

Bassens

A step by step approach:before mutualisation

Average deliveries4 Pallets 0,7 times a week

Average deliveries4 Pallets 1,2 times a week

Average deliveries6 pallets once a week

factory Banania centralwarehouse

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

B

Pont de Veyle

Le Bourget

Bassens

A step by step approach:before mutualisation

Average deliveries19 pallets 0,9 times a week

Average deliveries23,5 pallets 0,9 times a week

Average deliveries25 pallets 1,1 times a week

factory

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

B

Pont de Veyle

Le Bourget

Bassens

The approach with mutualisation

Average deliveries25 pallets 1,2 times a week

Average deliveries29 pallets 1,3 times a week

Average deliveries30 pallets 1,7 times a week

factory

factoryfactory

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Economic resultsEconomic results

Average delivery frequency increased by +34%

Average load per delivery increased by +115%

Average stock coverage in RDC decreased by -16% (-3 days with mutualisation)

Service level maintained to 99,6%

Overall number of Booking a year ���� -55%

Logistic costs stabilised due to reduction on loading and unloading costs in warehouses

Average delivery frequency increased by +34%

Average load per delivery increased by +115%

Average stock coverage in RDC decreased by -16% (-3 days with mutualisation)

Service level maintained to 99,6%

Overall number of Booking a year ���� -55%

Logistic costs stabilised due to reduction on loading and unloading costs in warehouses

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Unbelievable !

Theoretical environmental resultsUsing ADEME / ECR green comparator

Theoretical environmental resultsUsing ADEME / ECR green comparator

56%51%51%% of savings

147 029121 11845 503Savings

114 173117 44544 123Multiplayer solution

261 202238 56389 626Initial situation

Vehicles.kmkg CO2Litre of gasoline

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Taking into account optimisation previously performed by hauliers (average truck fulfilment ~66%)

Re-stated environmental resultsUsing ADEME / ECR green comparator

Re-stated environmental resultsUsing ADEME / ECR green comparator

26%22%22%% of savings

39 45232 50012 210Savings

114 173117 44544 123Multiplayer solution

153 626149 94556 333Initial situation

Vehicles.kmkg CO2Litre of gasoline

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

As a conclusionAs a conclusion

This collaborative approach has already been extended by the 3 SMEs to

– 100% Carrefour RDC (26)

– One other retailer (Supermarchés Match)

And we are looking for other partners …

Carrefour has implemented collaborative approaches with

– 12 other manufacturers using the same method (large and small companies)

– with 60 private labels suppliers gathered on a single consolidation centre

This collaborative approach has already been extended by the 3 SMEs to

– 100% Carrefour RDC (26)

– One other retailer (Supermarchés Match)

And we are looking for other partners …

Carrefour has implemented collaborative approaches with

– 12 other manufacturers using the same method (large and small companies)

– with 60 private labels suppliers gathered on a single consolidation centre

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Multiplayer CMI between 2 large manufacturers and 2 RDC of one

retailer

Multiplayer CMI between 2 large manufacturers and 2 RDC of one

retailer

Rémi SOURINRémi SOURIN Patrice MINZOLINIPatrice MINZOLINI

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

59 Hypermarkets

14 Retailer distribution centers

22 000 employees

Cora in FranceCora in France

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Control of logistic costs

Reduction of environmental impacts

Reduction of road congestion

Control of logistic costs

Reduction of environmental impacts

Reduction of road congestion

Increase of service level

Decrease of inventory cost

Improvement of freshness and quality of products

Increase of service level

Decrease of inventory cost

Improvement of freshness and quality of products

≠≠MutualisationMutualisation More full trucksMore full trucksMore frequent deliveries

More frequent deliveries

Increase on shelf availability and service level to DC’s

Increase on shelf availability and service level to DC’s

Inventory reduction at RDC and mix product improvementInventory reduction at RDC and mix product improvement

Reduce our environmental impact

Reduce our environmental impact

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Multiplayer CMI implementation between CORA – CADBURY & SARA LEE

Initial situation

Multiplayer CMI implementation between CORA – CADBURY & SARA LEE

Initial situation

Deliveries in full trucks towards 2 Cora’s warehouses (Ludres and Roye)

–Sara Lee

•57 trucks towards Ludres a year

•52 trucks towards Roye a year

–Cadbury

•39 trucks towards Ludres a year

•59 trucks towards Roye a year

Deliveries in full trucks towards 2 Cora’s warehouses (Ludres and Roye)

–Sara Lee

•57 trucks towards Ludres a year

•52 trucks towards Roye a year

–Cadbury

•39 trucks towards Ludres a year

•59 trucks towards Roye a year

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Ludres

Roye

St Cyr en Val

Artenay

Ludres

Roye

St Cyr en Val

Artenay

Initial situationInitial situation

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Mutualisation situationMutualisation situation

Ludres

Roye

St Cyr en Val

Artenay

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Economic KPIsEconomic KPIs

1,81,1Frequencies

99,398,7Service level

1619Inventory

AfterBefore

1,651Frequencies

99,498,9Service level

1720Inventory

AfterBefore

Cora RoyeCora Roye

Cora LudresCora Ludres

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Assessment tool: current situation Assessment tool: current situation

Weight per year (tons)

Number of delivery per week

Number of vehicles per year

Average weight per vehicle (tons)

Distance per delivery (km)

Delivery centre

Expedition centre

Flow n°4Flow n°3Flow n°2Flow n°1

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Assessment tool: current situation Assessment tool: current situation

7021 0261 062936Weight per year (tons)

0,71,11,11,0Number of delivery per week

39575952Number of vehicles per year

18181818Average weight per vehicle (tons)

380370200190Distance per delivery (km)

LudresLudresRoyeRoyeDelivery centre

St Cyr ArtenaySt Cyr ArtenayExpedition centre

Flow n°4Flow n°3Flow n°2Flow n°1

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Assessment tool: mutualisation solution with Roye RDC

Assessment tool: mutualisation solution with Roye RDC

1,81,8Number of delivery a week

1 710855Total weight transported per journey & per year (tons)

189Total weight transported per delivery & per vehicle (tons)

9595Number of vehicle a year

99Weight loaded at the loading point per vehicle (tons)

19010Distance per delivery (km)

RoyeFinal delivery point

RoyeArtenayFinal or midway destination point

ArtenaySt CyrLoading point

Loading 1-2Loading 1-1

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Assessment tool: savings of the projectAssessment tool:

savings of the project

10%7%7%% of savings

7 4905 6772 133Saving

65 49471 90527 014Multiplayer solution

72 98477 58229 147Initial situation

Vehicles.kmkg CO2Litre of gasoline

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

How to identify more easily potential manufacturer and retailer partners in order to optimize together the road transport?

How to identify more easily potential manufacturer and retailer partners in order to optimize together the road transport?

ECR

Transport

Web dating

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

Significant use increase of the ECR France transport web datingSignificant use increase of the

ECR France transport web dating

0

1724

35 37 3839

0

7077 79

96

155

189

0

20

40

60

80

100

120

140

160

180

200

Company members Expedition & delivery

point

23 March 2006

7 June 2006

11 September 2006

22 November 2006

11 January 2007

12 February 2007

26 March 2007

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

They use itTheyThey use use itit

AUCHAN, CASINO, CARREFOUR SPC, CARREFOUR

HYPERMARCHES, CORA, METRO CASH AND

CARRY, SCACHAP/ LECLERC, SYSTEME U

20TH CENTURY FOX HOME VIDEO, BARILLA,

BEIERSDORF, BIC, BRASSERIES HEINEKEN,

CADBURY, COCA-COLA ENTREPRISE, COLGATE

PALMOLIVE, DOUWE EGBERTS, FERRERO, FLEURY

MICHON, FROMAGERIES BEL, GEMEY

MAYBELLINE GARNIER, GEORGIA PACIFIC,

HENKEL, KELLOGG'S PRODUITS ALIMENTAIRES,

KRAFT FOODS, L’OREAL, LASCAD, LU,

MASTERFOODS, MERALLIANCE, MHD, NESTLE,

SCA, SOLINEST

AUCHAN, CASINO, CARREFOUR SPC, CARREFOUR

HYPERMARCHES, CORA, METRO CASH AND

CARRY, SCACHAP/ LECLERC, SYSTEME U

20TH CENTURY FOX HOME VIDEO, BARILLA,

BEIERSDORF, BIC, BRASSERIES HEINEKEN,

CADBURY, COCA-COLA ENTREPRISE, COLGATE

PALMOLIVE, DOUWE EGBERTS, FERRERO, FLEURY

MICHON, FROMAGERIES BEL, GEMEY

MAYBELLINE GARNIER, GEORGIA PACIFIC,

HENKEL, KELLOGG'S PRODUITS ALIMENTAIRES,

KRAFT FOODS, L’OREAL, LASCAD, LU,

MASTERFOODS, MERALLIANCE, MHD, NESTLE,

SCA, SOLINEST

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

ECR France collective green counterECR France collective green counter

Players

Benedicta, Cadbury, Carrefour, Cora, Nutrimaine,

Pasta Corp, Sara Lee

Players

Benedicta, Cadbury, Carrefour, Cora, Nutrimaine,

Pasta Corp, Sara Lee

Savings

Vehicles.kmkg CO2Litres of gasoline

14 343 38 177 46 942

FranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECRFranceFrance

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECREuropeEurope

Efficient Consumer Efficient Consumer ResponseResponseECRECR

1987-2007 Sustainable development definition

is 20 years old

1987-2007 Sustainable development definition

is 20 years old

Our responsibility is to implement it

We all report it through our annual reports

We have now the opportunity to make it happen on collaborative way by transport mutualisation

Let’s do it together from now on and show that the Industry acts responsible …

Our responsibility is to implement it

We all report it through our annual reports

We have now the opportunity to make it happen on collaborative way by transport mutualisation

Let’s do it together from now on and show that the Industry acts responsible …