Ordering and delivering

Dr Miriam RicciCentre for Transport & Society

Department of Geography and Environmental Management UWE Bristol

miriam.ricci@uwe.ac.uk

Supply chain(aka value chain, delivery chain)

“A coordinated system of organisations, people, activities, information and resources involved in moving a product or

service in physical (or virtual) manner from supplier to customer”

(Chartered Institute of Logistics and Transport)

http://sourcemap.com/

Hyunday vehicle supply chain

Logistics“Logistics is that part of supply chain management that plans, creates and monitors the efficient, cost-effective flow and storage of goods, semi-finished items and manufactured products as well as related information between the point of origin and the point of consumption in order to meet customers' requirements.” (Council of Supply Chain Management Professionals, 2007)

Purpose of logistics:

To get the right goods/people/services

At the right time

In the right place

In the right quantity/conditions/price

The sector

• The UK logistics industry is worth over £74 bn to the UK economy

• Employs around 2.3 million people in over 196,000 companies

(Skills for Logistics, 2010)

• One in twelve working people in the UK works in logistics.

• Freight logistics companies either manage their own distribution

system (own account operators), or manage it on behalf of another

as ‘third-party logistics’ (3PL) or ‘hauliers’.

• Over 60% of UK freight is carried as 3PL.

• Industry dominated by a small group of large players and SMEs

Future trends

• Sustainability and carbon pricing

• Consumer preferences and CO2 labelling

• Multi-channel sourcing (‘brick & mortar’ and e-commerce)

• Technological change, ICTs

• Increased collaboration between competitors

• Changing growth patterns, importance of cities

• Increased demand for flexibility of the supply chain

• Partnerships between manufacturers and logistics providers

• Near shoring: bringing manufacturing closer to end users

https://www.gov.uk/government/publications/transport-energy-and-environment-statistics-2011

Freight transport accounts for 5% - 7% of total UK CO2 emissions

https://www.gov.uk/government/publications/transport-energy-and-environment-statistics-2011

http://www.decc.gov.uk/en/content/cms/emissions/carbon_budgets/carbon_budgets.aspx

CarsVans

HGVs

Total surface transport emissions increased by 7% since 1990

Over 65% goods moved by road

http://www.delivering-tomorrow.com

http://ec.europa.eu/transport/modes/road/doc/broch-road-transport_en.pdf

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-12-013/EN/KS-SF-12-013-EN.PDF

http://www.fta.co.uk/

HDV emissions not regulated , unlike LDV and cars

Voluntary programmes:

http://www.greenfreighteurope.eu

http://www.fta.co.uk/policy_and_compliance/environment/logistics_carbon_reduction_scheme/index.html

Consolidation Centres(slides from Ms Daniela Paddeu, Doctoral researcher at

Cagliari University, IT)

Freight Transport in Urban Areas : Negative externalities• Environmental impact: polluting

emissions (CO, CO2, NOx, PM10)

• Social impacts : impacts of pollutionon public health, noise, visualintrusion, reduction of pedestriansafety (increase of accident)

• Economic impacts : morecongestion

• In sum: economic, social and environmental costs of transport

Freight transport negative externalities

13,000 deaths among children aged 0-4 years in Europe can be attributed every year to exposure to particulate matter (PM10)

[European Commission]

Only in London it is estimated to result in 4,300 premature deaths per annum

[Transport for London , 2012]

Transport of London declared that half of all cyclists fatalities in

London are due to accidents involving freight vehicles

[Transport for London , 2012]

Noise pollution produces at European level external costs for

45,644 million euro, of which over the 88% is attributable to road

transport[European Commission]

Emissions standardIncludes cold

startg/kmNOx

g/kmPM10

g/kmPM2.5

g/kmCO

g/kmVOC

g/kmNH3

g/kmSO2

g/kmBenzene

g/kmNO2

g/kmCO2

g/kmFuel

Petrol cars 0,370 0,003 0,003 4,992 0,397 0,043 0,003 0,019 0,004 210,7 67,2

Diesel cars 0,488 0,037 0,035 0,102 0,032 0,001 0,001 0,001 0,006 195,0 61,6Petrol LGVs 0,522 0,003 0,002 7,943 0,526 0,042 0,003 0,014 0,007 240,5 76,7Diesel LGVs 0,802 0,069 0,065 0,508 0,077 0,001 0,001 0,001 0,006 271,6 85,8

Rigid HGVs 4,508 0,081 0,077 0,988 0,169 0,003 0,003 0,004 0,030 736,4 232,7

Artic HGVs 7,417 0,126 0,120 1,373 0,206 0,003 0,004 0,003 0,030 933,7 295,1

Buses 7,634 0,110 0,104 1,172 0,218 0,003 0,004 0,009 0,030 957,7 302,7

M/cycle 0,236 0,017 0,016 12,204 1,096 0,002 0,002 0,041 0,002 116,1 37,0

120

[Please reference all data as provided by UK National Atmospheric Emission Inventory;(Table 3: Hot exhaust and cold start emission factors, by vehicle type)]

15

Petrol cars

Diesel cars

Bristol NOx emission data

45% of NOx emissions (pollution) in Bristol is due to Goods vehicles, 36% is due to cars and 19%

to buses.

Source : http://www.bristol.airqualitydata.com

Goods vehicles recorded inbound to the centre = 13,888 (11,682 LGVs and 2,206 HGVs) working out as 13.3% of the total number of inbound vehicles (104,802)

Possible interventions (1)

Access Regulation to urban

areas for goods vehicles

Retractable bollards

Possible interventions (2)

Last Mile Solutions DHL Packstation

Possible interventions (3)

Goods arrive by HGVs, are unloaded, handled, sorted, stored, consolidated,packed and sent to the last leg of the chain by low emissions vehicles in full loads

Urban Freight Consolidation Centres

Urban Freight Consolidation Centre

Types of Freight ConsolidationCentres:

• Freight Consolidation Centres serving all or part of an urban area (Bristol and Bath)

• Freight Consolidation Centres serving large sites with a single landlord(Heathrow airport)

• Construction project UCC (London Construction Consolidation Centre)

Who benefits from UFCC

Suppliers

• Time savings

• Number of vehicles reduced

Money savings

Retailers

• Security of the delivery

• Less storage and more selling space

• Set delivery time

• Additional services

• Just-in-time service

Citizens

• Reduction in pollution and noise

• Increase in pedestrian/cyclist safety

Increase in quality of life

Policy context

UFCC distribution in UK

1

24

3

5

6

8

7

1. Manchester Airport is served by a consolidation centre in Bury

2. Heathrow Airport in London is served by a consolidation centre in Stockley Park

3. East Midlands Airport is served by a consolidation centre at a local warehousing facility

4. Bristol (serving Broadmead / Cabot Circus shopping centre and, in the more recent project Renaissance, Bath city centre)

5. Sheffield (serving Meadowhallshopping centre)

6. Snetterton in Norfolk (serving Norwich city centre).

7. Brimsdown in Enfield (serving Regent Street)

8. Greenhithe (serving Bluewatershopping centre in Kent)

• UK alone accounts for one-third of the 114 FCC schemes started in Europe from 1970.

• Most FCC schemes in UK have been trials

(Allen, J. et al., 2012)

Bristol freight consolidation centre

Projects overview

• 2002-2006 CIVITAS VIVALDI : the CC was located in EmeraldPark and was operated by EXEL LOGISTICS (53 outlets)

• 2006-2008 START : the CC was moved to Avonmouth and DHLmanaged it (70 outlets)

• 2009-today CIVITAS RENAISSANCE : the CC is still located inAvonmouth and managed by DHL. From 2011 the BCC makesdeliveries also to Bath, being the first one in UK serving morethan one city (106 outlets)

The locations

12

Bristol freight consolidation centre

Stakeholders

• Bristol City Council

• Bath & North East Somerset Council

DHL

Retailers :

o 81 in Bristol

o 25 in Bath

Bristol freight consolidation centre

The vehicle • Two Smith Newton 9ton electric vans

• Load factor of the electric vehicles is 5ton ( equivalent to 8 pallet spaces or 15 cage spaces)

• They are able to travel for 120 km (74.5 miles) per charge with a maximum speed of 50 mph, but normally operate between 20 and 40 mph

• Quiet vehicle: reduces noise, but potential danger for pedestrians

Bristol freight consolidation centre

Services offered

Deliveries

Storage

Recycling

Pre-retailing

Crisis stock management

Just-in-time service

Bristol freight consolidation centre

Vehicle platooning

http://www.youtube.com/watch?v=45IRE8W_3L8

Thank you!