Welcome - Overview Richard Walters

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1 Funded by the Horizon 2020 Framework Programme of the European Union Welcome - Overview Richard Walters (richard.walters@lcpconsulting.com)

2 Agenda Project background and rationale Project Status Method / Outcomes / Results Lessons learnt & Challenges

3 The U-TURN Project in a nutshell U-TURN project aims to address freight urban distribution, focusing on food logistics. U-TURN project will suggest innovative collaboration practices and tools towards achieving more efficient operations from both an environmental and cost perspective.

4 Setting the Scene: The 2020 EUROPEAN consumer will be.. HIGHER LIFE EXPECTANCY 78 years 84 years 22% pop. > 65 years 70-80% POPULATION LIVING IN CITIES Urban DECREASING FERTILITY Older 1,3 children per woman Environmental & social concerned GROWTH OF SMALL FAMILIES 1 VIDEOS SOCIAL PHOTOS NETWORK 0 33% % 2000 DECREASE FAMILY SIZE 3, Lonelier 41% , DECREASING HOUSEHOLD DISPOSABLE INCOME per capita, 2000= Poorer INSTANT MESSAGING MUSIC NEWS FINANCES Educated, connected & informed 1 couples without children and single person households

5 The food logistics context In Europe, around 75% of the population lives in urban areas This is foreseen to increase up to 80% by Urban freight traffic accounts for about 10-15% of kilometers travelled and emits approximately 6% of all transport-related GHG emissions.

6 The food logistics context Two major consumer trends increases the transport burden in urban contexts a. shopping packaged goods in smaller convenient retail shops in urban areas on a more frequent basis; b. online shopping with special home-delivery requirements. The shared logistics practice has raised a lot of attention among manufacturers, logistics service providers and retailers Sharing logistics in freight transport is related to three main issues: a) vehicle sharing, b) infrastructure sharing and c) route sharing.

7 Main Objectives Analyse existing transportation flows of food products in urban areas, Identify opportunities for consolidating transportation flows in this context and define collaboration practices Measure the impact of the identified practices and strategies, Involve market stakeholders

8 Main Objectives Design and implement a simulation tool Design and implement a collaboration platform Conduct pilots applying representative collaborative proposals in practice (real-life scenarios) Propose a set of guidelines (roadmap)

9 Partners from around Europe Intrasoft International SA Instrasoft International SA Athens University of Economic & Business OPTILOG Advisory Services Cranfield University LCP Consulting Limited Technical University of Dortmund Simplan AG Barilla G.E.R. Fratelli SPA TRT Transporti E Territorio SRL Belgium Luxembourg Greece Greece United Kingdom United Kingdom Germany Germany Italy Italy 9

10 Overview Project Rationale Project Status Method / Outcomes / Results Lessons learnt & challenges

11 U-TURN Approach Collaboration Platform Matching Algorithm Simulation Tool/Studies Comparative Assessment Pilot 1 Greece Pilot 2 Italy Pilot 3 UK

12 Pilots Overview Pilot 1 Pilot 2 Pilot 3 Distribution of packaged goods from food manufacturers to retail outlets located in urban areas Distribution of fresh food from local producers to consumers in urban areas Food delivery from online retailers to consumers in urban areas 12

13 Method & Outcomes 1 A set of shared logistics models proposed at each one of the pilots contexts User Requirements Elicitation 3 2 Industry insights gathered about potential benefits and feasibility of shared logistics models Opportunities for consolidating transportation flows were identified by analyzing the existing transportation flows in urban areas 4 Market Assessments undertaken to understand business environment 5 User insights about U-TURN Tools

14 Method & Outcomes Design and Development 1 The U-TURN Platform to support the synergies identification and shared logistics implementation An economic and assessment tool for evaluating alternative distribution logistics models An smart matching algorithm for addressing the needs of a collaborative urban transportation of goods. A simulation tool that integrates supply chain network with a collaborative route planning algorithm for the last mile The vehicle sharing type of the proposed shared logistics models proposed evaluated by using actual data from 3PLs and farmers Simulation model applied for implementing an Urban Consolidation Center by using actual data from 3PLs companies Stable matching algorithm applied at two cases a) 3PLs for Greece, and b) farmer case in order to identify synergies Demonstration and Evaluation

15 Method & Outcomes Stakeholder Engagement 1 Two working groups on shared logistics with the support of the Greek Logistics Association (EEL) and Efficient Consumer Response (ECR) organization were organized in the context of Pilot in-depth interviews 3 15 interviews were 4 10 interviews with several with the representatives organized with stakeholders within the UK of the most important agricultural associations market. In terms of UK 3PLs companies, and farmer s districts to grocery retailers, these retailers and suppliers in discuss about current include Sainsbury, Asda, the FMCG sector transport practices Waitrose, Morrisons, Abel & Cole. 5 6 the Urban Consolidation Centers related project outcomes will be taken into account for the composition of the Presidential Decree for the Operations of Urban Consolidation Centers in Greece Participation in the Annual Transportation Research Board Meeting where the U-TURN presented to US-EU Urban Twinning Roundtable and participation in the USA study tour to European urban logistics projects 7 8 Primary distribution data received by 8 3PLs companies (6-months period data) and 6 suppliers and retailers and 2 supermarkets UK retailers Established cooperation with the other CIVITAS Freight Cluster Projects

16 Project Dissemination The Project Channels External Internal Conferences / Events Website Verbal / Face to face Repository Publications Newsletters Social media The Partners Research Industry Horizon 2020

17 Some Highlights Pilot 1 transport matching platform shows the potential to increase loading factor by 11-25% and reduce travelled distance by 44% Desire by industry stakeholders to collaborate in physical pilot and use the technology Pilot 3 mathematical model shows potential to reduce costs of transport by 5% General Significant interaction with industry UK, Italy, Greece Development of transport matching platform Dissemination event in UK with more planned Engagement with other Horizon projects

18 Overview Project Rationale Project Status Main Achievements Method / Outcomes / Results Lessons learnt & Challenges

19 Lessons learnt and Challenges Different pilots applied at different contexts Variety of involved stakeholders Competitive environment with immature collaboration culture Stakeholders with immature logistics processes (e.g. farmers) Broad geographical span Data challenges: unavailability and harmonization 19

20 Thank you for your attention