fficiency of freight distribution and deliveries to cities from ogistics operator s point of view arsaw example Schenker sp. z o.o.

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1 fficiency of freight distribution and deliveries to cities from ogistics operator s point of view arsaw example Schenker sp. z o.o. Krzysztof Ksit Vienna, September 22, 2006

2 servicing of logistic customers Logistic customer

3 eliveries and collections of goods as an element of a ogistics network (I) the first and the last mile full-load and part-load consignments (over 2.5 tons) a big trucks drives from a sender to a recipient groupage consignments (up to 2.5 tons) a big truck collects consignments from a sender and a smaller one transports them to a recipient (except for big recipients e.g. hypermarkets) parcels (up to 30 kg per one packaging) a small or a big truck collects consignments from a sender and a small truck transports them to a recipient

4 eliveries and collections of goods in a city as an lement of a logistics network (II) Full-load and part-load consignments factories shopping malls warehouses of commercial and distribution companies Groupage consignments shopping malls warehouses of commercial and distribution companies smaller shops and commercial companies Parcels smaller shops, commercial and service companies, offices private people

5 Influence of cross-docking on stocks and sales increase of sales by 20% decrease of stock by 25% (from 60 to 43 days) companies decrease of stock by 60 % (from 43 to 14 days) leaders A.T. Kearney he flow logistics concept Branch A Branch B Cross Docking Recipient 1 Recipient 2 Recipient 3 TERMINAL Recipient 4

6 Schenker s terminals in Poland

7 ross docking terminal near Warsaw Poznań -Berlin 2 terminal Olsztyn Gdańsk 7 Warszawa Lublin 8 7 Katowice Kraków

8 fficiency from the point of view of a logistics operator eduction of a customer s logistics costs Constant deliveries result in sending smaller amounts of goods but more frequently ( warehouses on wheels ) Majority of customers (senders and recipients) work during a day and this is the time when they await transport service Heavy goods trucks go to big senders and big recipients Transport between transhipping terminals (hubs) takes place at night High transport efficiency: as few trucks as possible, as many consignments as possible, in shortest possible time.

9 ogistic costs % % % 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 41.3% administration costs frozen capital costs warehousing costs transportation costs 0,00% before after share of logistic costs in price of a ready product, the example of solutions applied in the Statoil company

10 imitation in high-tonnage vehicles traffic in a city the example of Warsaw) From October 15, 2006 the ban will be imposed on traffic in the city of the vehicles over 16 tons of acceptable total mass between 6 a.m. and 10 p.m. necessity to organise night deliveries of big batches of goods additional trucks loaded in the morning and waiting until evening additional employment in companies (necessity to launch a night shift) more smaller trucks necessary transport service for the customers who will work only during a day smaller efficiency of full-load transports (only night deliveries possible) hindered access to towns located near Warsaw (no possibility to drive through Warsaw during a day, necessary detours approximately kilometres more)

11

12 ooperation of the city and big logistics operators In Warsaw at present nobody consults decisions and plans with regard to transport of goods with logistics operators In the years there existed the Warsaw Transport Round Table that was working out recommendations from the field of transport policy for the city authorities. The Table s participants were all the parties involved (the city authorities, business, social and ecological organisations). Unfortunately, the initiative is not continued any longer

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