Innovative inbound logistics for a sustainable transport

Fábio Castello

Logistics in Brazil

Transport systems

waste and challenges

Transport efficiency

and energy spent

Brazilian

infrastructure evolution

Opportunities

Brazilian Transport EfficiencyParameters

Economic

aspectsInfrastructure Safety

Energy and

environment

Source: DOT – US Dept of Transportation

Brazilian Transport EfficiencyParameters

Economic

aspectsInfrastructure Safety

Energy and

environment

Source: DOT – US Dept of Transportation

SP-55– Cônego Domênico Rangoni, SP

Acesso Rua do Adubo em Mar/2013

Brazilian Logistics InfrastructureInfrastructure Quality(Brazil ranking among 148 countries)

Sopurce: Fórum Econômico Mundial 2013: Relatório de Competitividade Global 2008-2009 e 2013-2014

2008 2013

Roads

110o

120o

2008 2013

Airports

101o

123o

2008 2013

Ports

123o

131o

2008 2013

Railways

86o

103o

BR-158 – Santa Maria das Barreiras, PA

Source: Pesquisa CNT de Rodovias 2013

25,0% = -5%

Consumption

=661 million liters

of Diesel

=1,77 Megaton

CO2Waste due to

inefficient roads

Brazilian Logistics InfrastructureEnvironmental impacts of inefficient roads

Brazilian Transport EfficiencyParameters

Economic

aspectsInfrastructure Safety

Energy and

environment

Source: DOT – US Dept of Transportation

8,2

17,1

Brazil USA

Source: Pesquisa CNT / Coppead 2011: Transporte de Cargas no Brasil - Brasília

0,6

1,8

Brazil USA

9,3

21,2

Brazil USA

Road Railway Waterway

Brazilian Transport EfficiencyProductivity (Million TKU per employee)

14%22%

35%45%

68%

100%

Retail Transport Construction Telecomunication Metallic works Benchmark - USA

Source: Pesquisa CNT / Coppead 2011: Transporte de Cargas no Brasil - Brasília

Brazilian Transport EfficiencySegment Productivity (Million TKU per employee)

BR-364 – Epitaciolândia, AC

ORDER PLANNINGMATERIAL

PLANNING

DEALER DEALER

PRODUCTION CONTROL

INTEGRATED PROCESS AND INFORMATION FLOW

CBU DELIVERIES

KD DELIVERIES

OUTBOUND

ONSHORE SUPPLIERS

OFFSHORE SUPPLIERS

LOOP 2

LOGISTICSCENTERS

INBOUND

Logistics from Order to Delivery

SUPPLIER

LOOP 1

LOOP 3

PLA

TF

OR

M

KD PACKLOOP 2

Customer Salesman / Dealer Distributor Factory Suppliers

Information flow

Material & Information flow

Supply Chain in Latin America

~900 suppliers

27.350part-numbers

3.000.000combinations

1.150variants

135basic models

+32.000customers

450 salesmen150 dealers

19 distributors 1 factory

Milk Run in Brazil

• Joinville

▲

▲

▲

▲

▲▲

▲

▲

▲

▲

▲

160 suppliers

50 trucks/day

100 pick-ups/day

Onshore Inbound Development

Up to 1998

1.0 – From 1999

2.0 – From 2010

3.0 – From 2014

Supplier deliveries

Static Milk-Run

Dinamic Milk-Run

Leveled Milk-Run

Project NILE

Call-off pattern before imple-mentation of volatility reduc-tion levers

Call-off pattern after imple-mentation of volatility reduc-tion levers

Call-off pattern daily inbound logistics optimization

Daily shipments to Scania

0

1

2

3

4

# trucks required

Week 1 Week 2 Week 3

0

1

2

3

# trucks required

0

1

2

# trucks required

FTWTMFTWTMFTWTM

Call-off consolidation

Transport modeling

Transportoptimization

Stock optimizationImplementation of call-off changes

<Picture>

Control tower

database

MCDT

MCDE

MCMS

Web-stars

Stock levelsTransport cost

Leveled flow

NILE- Control Tower

NILE – Initial Results in 12m

120 tripsless

114.000 km less

131 ton CO2 less

Connected FlowsThe future of transport productivity

Connected FlowsThe future of transport productivity

Source: McKinsey Global Institute – Connecting Brazil to the world, 2014

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