Post on 07-Apr-2018
The Future of Logistical Collaboration in Europe
Professor Alan McKinnon
Kühne Logistics University
Hamburg
28th May 2014
CO3 General Assembly
P&G Offices
Brussels
KÜHNE LOGISTICS UNIVERSITY HAMBURG
A private, independent, state- recognized university – founded in 2010
A university with expertise in logistics and management
2 MSc, a Bachelors, an executive MBA and a PhD program – 180 students
17 resident faculty plus contributions from a large group of external professors
3
Major Challenges Facing Supply Chain Managers
collaborate with multiple partners
IBM supply chain maturity model (2005)
Source: Accenture (2004)
Logistical Collaboration: long history of rhetoric and disappointment
Key role in models
of supply chain
development
Prominent place in
supply chain
surveys
Source: IBM, 2005
Dimensions of Supply Chain Collaboration
Collaboration
with and between LSPs Horizontal collaboration
Vertical collaboration
Core
individual
company
capability
Between companies at the same level in the supply chain:
within same sector in different sectors
Between companies at different
levels in the supply chain
Between business units –
use of control towers
Source: McKinnon, 2003
partnerships
alliances
consortia
1980s
1990s
2000s
2010s
2020s
CPFR = collaborative planning forecasting and replenishment CTM = collaborative transportation management
Evolution of Logistical Collaboration
vertical collaboration
ECR CPFR
Shippers
horizontal collaboration
opportunistic
systematic
network based
CTM
Carriers
Starfish CO3
6
Rationalisation by Collaboration
geography
Source: Cap Gemini (2008)
Horizontal Collaboration:
5- dimensional diffusion
7
5 Ms of Horizontal Collaboration
Mindset: - new age of collaborative enlightenment
- acceptance of the ‘sharing economy ‘
Motives: - internal, company-level efficiency gains exhausted
- external commercial and environmental pressures mounting
Models: - evolution and refinement of collaborative business models
- mathematical models and software tools to optimise gain-sharing
Market: - establishing mutually-supportive roles for logistics providers
- aligning HC with other market trends to maximise synergies
Ministries - legal acceptance of HC as yielding wider societal benefit
- promotion of HC through logistics best practice schemes
‘Physical encapulation’ of goods in a new
generation of modularised containers’
applying the networking of principles of the internet to the physical movement of freight
‘Rise of a Collaborative Commons as the dominant model for organising
economic life’
‘The Internet of Things (IoT) is the technological ‘soul mate’ of the
emerging Collaborative Commons’
‘ The IoT is made of a Communications Internet, an Energy Internet and
a Logistics Internet that work together in a single operating system,
continuously finding ways to increase thermodynamic efficiencies and
productivity in the marshalling of resources, the production and
distribution of goods and services and the recycling of waste.’
longer term vision of ‘network-based’ horizontal collaboration ?
Impending Paradigm Shift
Physical Internet
Source: Montreuil, 2012
Collaborative bundling of freight to meet modal shift targets
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 actual without target with target
Road
Rail
IWW
% o
f to
nn
e-k
ms
Target: EC White Paper target for 30% of freight tonnes moving over
300km to move by rail or inland waterway
Without target: Business-as-Usual projection of modal split
Based on analysis by Tavasszy and van Meijeren (2011)
Will these targets ever
be achievable without
extensive horizontal
collaboration?
10
Collaborative bundling of freight to maximise the load
consolidation benefits from high capacity trucks
Source: Steer Davies Gleave, 2013
4.5%
% of EU tonne-km moved by HCV
The Scale of the Climate Change Challenge
11
Source: Clark, 2013
Bn to
nnes o
f C
O2 p
er
annum
Kg CO2
/ tonne
1. Separate delivery 43.8
2. Groupage 27.3
3. Collaborative synchronisation 20.3
Source: Jacobs et al 2014
Nestle-Pepsico Benelux collaboration
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DHL Logistics Trend Radar
Need to integrate logistics service providers more effectively into HC schemes
Source: DHL, 2014
Extending the Scope and Objectives of Horizontal Collaboration
improving the utilisation of existing assets and services
joint planning of new facilities, systems and services
catalysing and leveraging future logistics innovations
Joint programmes for adaptation to regulations,
climate change etc.
Challenges
Orchestrating more complex, broadly-based collaborative networks
Complying with evolving competition law
Kühne Logistics University – the KLU Wissenschaftliche Hochschule für Logistik und Unternehmensführung Grosser Grasbrook 20457 Hamburg tel.: +49 40 328707-271 fax: +49 40 328707-109 e-mail: Alan.McKinnon@the-klu.org website: www.the-klu.org
Professor Alan McKinnon