An overview of urban logistics challenges The ALICE-ERTRAC perspective. March 5 th, Gothenburg
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1 An overview of urban logistics challenges The ALICE-ERTRAC perspective March 5 th, Gothenburg
2 10 YEARS: ZERO IMPROVEMENT ON LOAD FACTORS [Optional slide for additional info/data] 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% %Load Factor %Road efficiency %empty truck (km) billion euro 0% EUROPE GAINS to 70%: Eur 160 Billions 1.3% CO 2 footprint 0
3 Market opportunity and vision A 10% to 30% efficiency in EU logistics sector = billion cost relief for European industry Make European industry resilient by a true people, planet, profit oriented logisjcs and supply chain sector. A sector that is economically, environmental and socially sustainable contributing to both industry compejjveness and the EU policy targets 4 7/22/2014
4 Shippers decisions influence logistics and transport Shipping of components instead of full products: postponement whenever possible Supply chain consolidation and coordination, both along and across supply chains Reconsidering production locations, considering both transport and sustainability issues Pressure on consolidation as well as reverse flows in urban logistics It is not only a macer of how to transport but also what to transport!!!! 7/22/2014 6
5 ALICE mission Development of new logistics and supply chain concepts and innovation for a more competitive and sustainable industry. The ambition is to contribute to a 30% improvement of end to end logistics performance by The ETP on logistics aims to accelerate the deployment of more efficient, competitive and sustainable supply chains. Way to achieve Bring together primary service providers stakeholders: shippers and logistics Other relevant stakeholders: transport companies, terminal operators, support industry and research and education Collaboration with related ETPs: ERTRAC, ERRAC (Shift2Rail), WATERBORNE AND MANUFUTURE (FoF) 21 7/22/2014
6 ALICE and related ETPs The connection between Modes and Industrial ETPs for Optimized Logistics and Supply Chain Management Logistics + Supply Chain How to Transport What to Transport r Ai t h ig e Fr F reight Transport Modes Intermodality ail R t h Freig ad o R t h ig Fre - e n r o b r e t a W t h ig e Fr Foundation Science & Technology ey blr t na temi s i a usc h S Ma tu c a f g u n n r i Industrial sectors- Manufacturing & sng fe ithi ee i e r L l l xto l St fo ec T c a f g u n i n r u Ma t c a g Manuf turin oo d F c a f g u n n r i u Ma t d e as b - st e r Fo c a f g u n n r i u Ma t Foundation Science & Technology
7 ALICE Steering Group Related associaqons and ETPs/PPPs represented in the SG
8 Plenary Members 20+ in process/interested
9 ALICE Chair and vice-chairs Chairman: Ralph Keck. Director. Product Supply Global Logistics Vice- chairman: Prof. Dr. Rod Franklin. Academic Director Executive Education Vice- chairman: Prof. Dr. Henk Zijm. Research Director (DINALOG)
10 ETP Working Groups & Chairs LogisJcs + Supply Chain Sustainable, Safe and Secure Supply Chains Corridors, hubs and synchro- modality InformaQon systems for interconnected logisqcs Supply Chain CoordinaQon and CollaboraQon Urban Freight rof. dr. W.H.M. Mr. Vincent (Henk) Zijm Santacroce Angelo Aulicino Marcin Hajdul Lóri Tavasszy Andreas Rod NeCsträter Franklin Stefano Persi Sergio Barbarino Dirk t HooZ Paolo Paganelli Paola Cossu Emilio Gonzalez
11 Alice Roadmaps
12 Urban Freight Research Roadmap This document is a Research Roadmap on urban freight and logistics delivered jointly by ERTRAC, the European Road Transport Research Advisory Council, and ALICE, Alliance for Logistics Innovation through Collaboration in Europe. The goal of the roadmap is to identify research priorities related to urban freight delivery, returns and urban logistics to improve the efficiency, sustainability and security of this activity. The contents will contribute to the definition of research programs addressing the main stakeholders of the sector (cities, industry, retail, logistics service providers), including Horizon 2020, the European Framework Program for Research and Innovation for
13 Motivation behind the Urban freight roadmap ConcentraQon of populaqon in cijes (72 % EU populajon - live in cijes, towns and suburbs, 80% in 2020) Urban freight is an important traffic component in cijes (10 to 15% of vehicle equivalent Kms) The load factors for delivery vehicles in cijes are very low (e.g. 38% for vans in London) Urban freight is responsible for 25% of urban transport related CO2 emissions and 30 to 50% of other transport related pollutants (ParJculate maiers, Nitrogen Oxide,.) Urban freight services companies are generally very small (85% of short distance truck companies have less than five employee) Urban freight parjcipates for a significant part to the ambient noise Mega trends are changing urban freight pacerns: ecommerce, teleworking, ageing populajon, more densely populated urban areas,
14 ALICE-ERTRAC UF Scope Urban freight is defined as all movements of goods in to, out from, through or within the urban area made by light or heavy vehicles including: delivery of goods (business and home) service transport and demolition traffic shopping trips made by private households reverse logistics for waste removal and for returns management maintenance and service vans for the supply and removal of parts
15 ALICE-ERTRAC UF common Vision Full integration of freight flows in cities operations and activities that allow citizens to access the goods and the goods to access the citizens they require and at the same time supporting sustainable development in cities: Research areas identified aim to: Increase energy efficiency, which can be achieved by improving the efficiency of the whole urban logistics system added to the expected gains in the energy efficiency of vehicles; Improve the urban environment by increasing air quality and reducing noise; Increase customer satisfaction by delivering the goods on time and improving the reliability of the system; Increase safety and security reducing injuries and fatalities and also cargo lost or damage
16 What is the Physical Internet Vision? create a more efficient, sustainable supply chain by using new modular load units & smoother supply chain interfaces New modular load unit concept Smoother interfaces along the supply chain Vision Modular dimensions from cargo container size to Jny Modular box system OpJmised space Open networks & pooled resources Less network complexity Key aiributes Easy to handle, transport, store, interlock, load, construct, dismantle & decompose Smart tag enabled + sensors Standard sizes & dimensions Unit loads along enjre supply chain Common communicajon, planning & monitoring Interconnected comms Modular logisjcs units New handling & storage technologies Co- operajve logisjcs networks PotenJal PI savings: 22% freight km 50% CO 2 15% efficiency 20% loading Smooth interfaces along the supply chain Within inter plant operajons During trans- shipment Save CO 2
17 Alice Videos
18 Key Milestones of the Urban freight up to the long term 2020 Defining and assessing new opportunities and Business Models 2030 Efficient and automated distribution systems Defining OpportuniJes 2040 Fully integrated urban logistics in the city mobility system 2050 Physical Internet
19 Strategic Challenges and themes covered The ALICE-ERTRAC roadmap identifies data collection and knowledge considering urban logistics as key driver for a relevant EU research agenda. Identifying and assessing opportunities in urban freight transport (e.g. measuring freight component, load factors, demand B2B, B2C, set KPIs) Efficient integration of urban goods deliveries and servicing trips in city: Analyse the impact of land use on urban logistics operations (e.g. dedicated parking slots, lanes availability/ mgt.) Urban Mobility Plans taking freight into consideration Improving the interaction between long distance freight transport and last mile (e.g. freight corridors, locations of DC and consolidation centers) Better adapting the vehicles to innovative urban freight delivery systems (sizes, modularity, intermodality, tech. for load consolidation)
20 Strategic Challenges and themes covered New Business Models and Innovative/added value Services Value creation logistics services and more efficient operations: Consolidation schemes, night deliveries, out of office hours) Collaboration and concerted actions/regulations among local authorities, shippers, retailers and LSPs New Governance models: Financing/Business models, roles and leaderships E-commerce implications: Direct to consumer deliveries and functional logistics services, decoupling delivery/reception Reverse logistics: e.g. direct/reverse integration Designing and operating urban freight transport delivery infrastructures and networks Safety and security in urban freight transport (e.g. load unit traceability, locks and seals, increase integrity of goods) Cleaner and more efficient vehicles (e.g. business models for alternative fuels, low noise solutions)
21 Working group activities Milestones achieved: UF Roadmap first release: November 2014 Recommendations for Urban Mobility topics H : January 2015 Activities during 2015 requiring contributions from Urban Freight working group: Follow up past & current projects and best practices: what has been accomplished, which services and products introduced in the market and how this relates to the roadmaps. Deeper analysis in the sense of what changes the roadmaps will imply, which are the barriers and what can trigger the change industry take up (including economic aspects). Further analysis on expected impacts and related indicators and ways to measurement progress. Further develop implementation plans for the roadmaps
22 Urban Freight contacts Paola Cossu Emilio Gonzalez
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