C1.4 Assessment methodology

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Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations

Assessment methodology

---iCargo Training Series

Webinar18.02.2015

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iCargo is a large-scale integrating project co-funded by the European Commission within the FP7

Information and Communication Technologies Work Programme. iCargo involves representatives of

the main stakeholders in the areas of research and technological development, logistics companies,

shippers and public authorities. The 29 partners coming from 13 countries are coordinated by the

Research and Innovation Hub of ATOS Spain.

iCargo will design and implement a decentralized ICT infrastructure allowing real world objects, new

planning services including CO2 calculation capabilities and existing systems to co-exist and

efficiently co-operate at an affordable cost for logistics stakeholders.

The iCargo project aims at supporting new logistics services that:

₋ Synchronize vehicle movements and logistics operations across various modes and actors to

lower CO2 emissions

₋ Adapt to changing conditions through dynamic planning methods involving intelligent cargo,

vehicle and infrastructure systems and

₋ Combine services, resources and information from different stakeholders, taking part in an open

freight management ecosystem.

http://www.i-cargo.eu/


Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian

iCargo Training Course C1.4

Assessment methodology

Valentina Boschian – Bluegreen Strategy srl


• The iCargo assessment methodology

– Importance

– Goals

– Expected outputs

• iCargo Assessment approach

– Operative steps of the approach

– Iterative approach

• iCargo Business Cases

– Process steps and KPIs definition

Agenda4



– Importance

– Goals







Agenda5


The importance of a good assessment approach

• The assessment methodology focuses on the evaluation of the project results from the qualitative and above all from the quantitative point of view.

• A performance measure is a set of metrics used to quantify the efficiency and/or effectiveness of an action.

• Increased interest in performance measurement: – ever changing and ever increasing demands of customers,

– the moving focus from internal operations to a chain of collaborating companies,

– increased amount of data (not necessarily data quality),

– growing number of options a company can choose from.


1. To validate the iCargo solutions and to assess the

impact of such solutions;

2. To define the strategic goals and objectives for each

of the pilots;

3. To analyse each pilot’s current situation (“as is”);

4. To analyse each pilot’s desired situation (“to be”).

Goals


To validate the iCargo solutions and to assess the impact of suchsolutions, by:

• expressing the strategic goals and detailed objectives eachof the iCargo pilots,

• measuring objectives’ achievement in terms of quantitativeindicators,

• describing pilot processes in “as is” and desired transition to“to be” status that meets the objectives.

Validation of iCargo solutions


To define the strategic goals and objectives for each of thepilots, by:

• involving the stakeholders in strategy formulationworkshops to translate the technological developments inbusiness benefits,

• formulating and structuring goals and objectives using theanalysis methodology and selected tools;

Definition of strategic goals and objectives


To analyse each pilot’s current situation (“as is”) in terms of:

• detailed description of the relevant business processes,

• relevant performance indicators to measure the pilot’ssuccess in relation to the pilot objectives, and currentvalues of each indicator;

Analysis of pilot’s current situation


To describe each pilot’s desired situation (“to be”) in terms of

• changes to be brought by iCargo in the involvedstakeholders business processes (“to be”), by comparisonwith the current situation,

• target values of the relevant performance indicators, i.e.,performances improvements expected in the “to be”situation.

Analysis of pilot’s desired situation


Main purposes of the validation strategy:

1. to check and control if the planned outputs of the project business cases are achieved;

1. to facilitate communication and information exchange inside the iCargo project;

1. the assessment results should motivate the pilot users and other potential users to apply iCargo results.

Expected outputs



– Importance

– Goals







Agenda13


APPROACH:

• Analysis and collection of the most commonly used KPIs (from state-of-the-art analysis) to assess the

- logistic

- environmental

- financial

performances;

• iCargo validation approach:

- Step 1: definition of the pilot main objective and goals;

- Step 2: identification of the expected benefits and aspects to bemonitored for each process step;

- Step 3: association of the KPIs to the aspects to be monitored:common KPIs and specific pilot KPIs.

Proposed approach


Initial operative steps

Step1

Step2

Pilotobjec ve

Pilotgoal1

Pilotgoal2

Pilotgoal3

BC1 BC2 BC3a

…

Organiza onalChangesTransi onRequirements

KPIs(logis cs,

environmental,financial)

BC3b

Step3

Aspectstobemonitored

ExpectedbenefitsBC1 BC2 BC3a BC3b

BC1 BC2 BC3a BC3b


Step 1: Objective and goals definition

• Identification and definition of the main objective and goals of each iCargo business case in order to find out the main aspects to be taken onto account in the evaluation process.

• For each business case, the following are aspects are defined:

– the objective that is mainly a statement aiming at summarizing the main focus of the business case,

– the goals related to this objective that detail the main aspects that characterize the pilot case and represent its distinctive and added-value elements.

Step 1


Step 2: Process steps and expected benefits

• Benefits related to the process steps of "as is” and "to be” from:

• the qualitative point of view: expected benefits in terms of mainfeatures and barriers related to the specific process step of eachpilot case;

• the quantitative point of view: by indicating the most appropriateKPI/s associated to the different process steps.

Inputs:

– user requirements,

– relationships between the user requirements, the use case andthe process steps.

The KPIs associated to the aspects to be monitored are selectedfrom the general overview of the metrics.

Step 2


Step 3: Definition of the metrics

On the basis of the results of the two previous steps, to find out which KPIs are possible to apply to measure the impact of iCargo in terms of:

• common metrics cross-pilot defined,

• specific metrics related to specific issues of the single business case.

Step 3


Example

Aspects to be monitored

KPILogistics Environmental Financial

Business Case 1

Process Step 1.1

…

load optimization

Load Factor (weight)Load Factor (volume)

…

Via hyperlink direct connection to the KPI/s defined in the state-of-the-art KPIs

list

KPI name Description CalculationMeasurement

unitSource/additional

comments

10Load factor (weight) by mode

Measures the percentage of maximum carrying weight that is used in a determined transport

Carried weight/maximum weight

%

11Load factor (volume) by mode

Measures the percentage of maximum carrying weight that is used in a determined transport

Carried volume/maximum volume

%


It includes three main phases:

1. Implementation,

2. Assessment of changes and transition requirements,

3. Real-life tests to estimate improvements and negative impacts.

iCargo iterative approach

Added value: incremental and iterative validation approach where each increment concerns one specific Process Step of the Business Cases.



– Importance

– Goals







Agenda21


SCAR Business Case


Green Corridor Business case


LSP-Shipper cooperation (DHL) Business case


LSP-Shipper cooperation (Unilever) Business case


Conclusions and next stepsAnalyseKPIsfromthestate-of-the-art

Definetheaspectstobemonitored

SelectandassociateKPIstotheaspectstomemonitored

Objec veandgoalsdefini onstuning

Definetheobjec veandgoals

Step1

Step2

D7.3

D7.4

Incrementalanditera vevalida on

Exploittheresults

Step3

Iden fytheexpectedbenefits

Iden fytheorganiza onalchanges

andtransi onrequirements

Selec onoftheaspectstobemonitored

Datacollec on:currentvaluesand

sources

Providees ma onfortargetvalues

Selec onoftheKPIs


Valentina Boschian

Bluegreen Strategy srl

Thank You

27

iCargo Training - 18 November 2014

www.i-cargo.eu


Credits:

Presented by: Valentina Boschian, Bluegreen Strategy [email protected]

Material: Valentina Boschian



mailto:[email protected]

Technology

C1.4 Assessment methodology