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d2dLogITEfficient Transport Management in the
Jan Tore PedersenDag Atle Nesheim
Integrating Transport Modes L
og
isti
cs c
ost
US
D p
er t
on
Producer
0
20
40
60
80
Customer
Land
Land and sea
Truck TransportProducer
“Raw materials”
Customer Benefits for transport
user Easy to use (one phone call
is enough) Flexible Fast Reliable service Transparent (driver
provides status information)
Cost effective
Problems for society The annual transport
spending in EU is 1000.000 million Euro
Transport is the second largest producer of CO2
7 500 km of motorways are congested every day
More than 40 000 people are killed in traffic every year
Systems TransportL4
3
Port Terminal
Distribution Terminal
Capacity co-ordination
Warehouse &
Secondary Distribution Terminal
Waterborne Backbone
LogIT d2dMaking Multimodal Transport Competitive
• Benefits for the user Easy to use Flexible Fast Reliable service Transparent Cost effective
• Benefits for society Waterborne transport takes
larger part of transport growth Reduces congestion Reduces required energy
consumption in transport Reduces other external costs Makes Europe more efficient
from a transport and industrial viewpoint
Producer
“Raw materials”
Customer
LogIT d2dManaging door-to-door multimodal transport
chains efficientlyTra in
Stevedore
LineAgent
Ship
Ord
er/
Co
nfir
mat
ion
Del
iver
y a
dvi
ce/C
onfir
mat
ion
Gate repo rt (CODECO)
B oo king(CO PR AR )/Conf irm
na ti o
S towage Ins truction (MOV INS)
Vesse l departure (VESDEP
)
Ta l ly
R
A
(
I
COR
)
Ma
s t e r p l a n ;Bay p la n /BAPL I )E
Dam ag e reportMa nifes t (IFT M C S )/E T A
E
TA
Vesse l a
rrival
M
an ifest (IFTM CS)
Re l e a se or d er (CO R
EO
R)
G a te re por t (COD
ECO
)
D a m a g e re p o rtStevedore
Term inal/Warehouse
Road
eFor cast, pre lim inary booki ng Booking (CO P RAR)
Booking confirm ation a S t tus report (IFTSTA ) r T ans p. Instr. (I FTM IN )
Fo recas
ry boo
t, P re lim i na
king
S ta tu s
(IFT
rr t
ST
e o
A
p
)
Transpo rt instructions (IFTM IN )
S ta tu s re p o rt (IF T S T A )
B o o k in g (IF T M B F )/C o n f i rm a tio n (IF T M B C )
Requ e s t f o r tra n s p o rt / C o n firm a tio n Tra n s p o rt s ta tu s in fo rm a tio n (IFTS T A )
P r o d u c t i o n p rog n o s is , P r o d u c t ion sta tu s
L in k in g item s , u n i ts, w a g o n s , v e h i c le s
A
v ail ab le unit s
A
rr iva l in fo (IF
T S T A ) / St at us ( IF T S T A)
S tuf f in g o r der ( C OS T O R )
H a nd li n g ord er, wei ght s
pec if i c a t io
ns
G a t e re p o r t (CO D E C O )
D am a g e re p o r t
a b
Ava i l le ve h i c les
Tra n s p ort i ns tru ction ( I F T M IN
)
S tatu s (IFTSTA)
Booking (IFTM B F ) / Co n f i r m a t ion (IF
T MBC
)
ia tio
Dev
n (TA)
IFTS
Av ve
a ilable hicles, w a g in s u n its
List o farriv ing wagons(IFTSTA)
Unloadingconfirm .
a
M
ster
pla
n, B
ay
pla
n (
BA
PLI
N)
Sa i
n
l in gi
str.
Ava ilab leunits
Wagons/Vehicles
Wagons/Tra ins
TransportChain
M anagem ent
M anufacturer
Custom er
UnitsWagons/Vehicles
UnitsVehicles
Transport Chain
Manager
Responsible fordoor-to-door
transport operations
LogIT d2d adds value by simplifying the complexity of
information exchange
Transport Management in NMC
•Vision– Provide the
equivalent of Amadeus capabilities (air travel) for door-to-door transport in NMC
D2D* Demonstrators
• Farm Equipment - Germany to Australia: Truck, barge, truck, ocean shipping, truck.
• Cars - Germany to Turkey: Train, short sea shipping, truck.
• Ceramic tiles - Spain to the Canary Islands: truck, short sea shipping, truck.
• Animal food - Portugal to the Azores: truck, short sea shipping, truck.
* Project funded by EU DG TREN under the 65th Framework Programme
Transport Management in NMC
Silica from Salten, Norway to Rheinfelden, Germany
• SSS Salten – Rotterdam: NCL
• Terminal in Rotterdam: Euro Nordic / RST
• Barge Rotterdam - Weil am Rhein: Euro Nordic / CCS
• Terminal Weil am Rhein: CCS / Rhenus Kleyling
• Truck Weil am Rhein / Rheinfelden: CCS / Rhenus Kleyling
ParticipantsElkem, the customer ordering door-to-door transport from the Transport Chain Manager (ENL in the current example)
ENL, organising the door-to-door transport on behalf of ELKEM
Transport service providers, performing the actual transport operations
LogIT d2dLogIT d2d
ConsignorConsignee
Rail
Port
VesselTerminal
Barge
Truck
Brokersand
agents
ENL
LogIT d2d Processes• Organising single- or
multimodal door-to-door transport operations– Long-term contracts– Individual shipments
• Monitors progress, deals with deviations
• Provides transparency• Provides basis for
invoicing & claims handling
• Monitors payment
ShipmentPlanning
TransportExecution
Invoicing and Reporting
NetworkPlanning
Definition of Unit to be Transported
Important Relationships
• LogIT d2d holds relationships between– Trade units (cartons),– Logistics units (pallets or containers –
pallets may be placed in containers), and– Transport means
Definition of a Provider Service
Definition of a Voyage
Definition of Provider Service Cost
Information Exchange Between ENL and Provider
Standard Transport Chain• Starts at POL in
Salten• SSS to Rotterdam• Terminal in
Rotterdam• Barge on the Rhein to
Weil am Rhein• Terminal in Weil am
Rhein• Truck from Weil am
Rhein to Rheinfelden
Alternative Chain I
• Starts at POL in Salten
• SSS to Rotterdam• Terminal in
Rotterdam• Truck from
Rotterdam to Rheinfelden
Alternative Chain II
• Starts at POL in Salten• SSS to Rotterdam• Terminal in Rotterdam• Rail from Rotterdam
to Weil am Rhein• Truck fra Weil am
Rhein to Rheinfelden
Transport Network
• Starts at POL in Salten
• Passes through Rotterdam
• Alternatives from RTM to RFN– IWS-TERM-TRUCK– TRUCK– RAIL-TRUCK
Comparison of chains pre-calculations
Common Currency: EUR Precalc 1 Precalc 2 Precalc 3Service Salten-Rotterdam Salten-Rotterdam Salten-Rotterdam
Ocean shipping from Salten to Rotterdam 1210 1210 1210Terminal Handling in Rotterdam 125 125 125IWS from Rotterdam to Weil am Rhein 350Rail from Rotterdam to Weil am Rhein 1150Terminal Handling in Weil am Rhein 50Truck from Weil am Rhein to Rheinfelden 50 50Direct truck from Rotterdam to Rheinfelden 1400Total Costs: 1 785,00 2 735,00 2 535,00
What LogIT d2d does (2)
ShipmentPlanning
TransportExecution
Invoicing and Reporting
NetworkPlanning
Booking by Customer
GeneralInformation
CargoInformation
Transport Chain Details
Booking for Ocean Transport
General booking
information
Cargo information
Confirmation by Provider
Provider confirms
Confirm Customer Booking• When all provider services are
confirmed, customer booking may be confirmed
Mark customer booking(s)Confirm
customer booking(s)
What LogIT d2d does (3)
ShipmentPlanning
TransportExecution
Invoicing and Reporting
NetworkPlanning
Monitor Progress
• Transport Means
• Load Units Showing complete transport chain
Showing only tour/voyage
Monitor Progress
• Geographical presentationVessel MS PERUVIAN
Status ON SCHEDULE
Voyage EC101
# TEU 150 (see all load units)
Redirect Cargo
• Procedure:1. Identify cargo2. If a complete shipment is to be
redirected, then modify the transport chain
3. If only a part of the shipment is to be redirected, split the cargo to be redirected and modify the relevant transport chain
Redirect containers
‘Dashboard’
Cross-Docking
Customer bookings
GustavsbergLogistics, Sweden
Norway Sweden Finland Baltics Denmark
Provider bookings/-instructions
Status Status Status Status Status
Gustavsberg,Sweden
Provider bookings/-instructions
Villeroy & Boch,Germany and France
What LogIT d2d does (4)
ShipmentPlanning
TransportExecution
Invoicing and Reporting
NetworkPlanning
Customer Invoice
Invoice elements
General invoice
information
Recording payments
Potential LogIT d2d Users
• Manufacturing companies outsourcing transport services but keeping control of the logistics processes
• Transport service providers taking on the responsibility for multi-modal door-to-door services (3rd party logistics providers)
• Freight forwarders (4th party logistics providers)
LogIT d2d Benefits
• Providing a simple “one-stop-shop” for transport users
• Selecting the most efficient door-to-door service by comparing costs and schedules.
• Providing efficient communication to transport users and service providers for booking, confirmation, invoicing and payment.
• Keeping transport users and service providers continuously informed about transport status.
• Enhancing, not replacing, existing information technology applications.
Loaded Goods Report• Information about what actually
was loaded