1. Sanitation logistics Heiko Gebauer Group Leader Business Innovation Environmental Social Sciences (EAWAG), Zurich, Switzerland Associate Professor, Center of Service Research, Karlstad University, Sweden London, 07-10-2013

2. Logistic experiencesSpare parts logistics in Asia (China)Consumable distribution in EuropeUK GE FR CH AU SPITTU 3. Agenda How do successful practices overcome the logistic and distribution challenges in lowincome countries? What logistic approaches are we using at the Eawag? What are other practices in sanitation logistics? 4. Dabawalla lunch box distribution in Mumbai 5. http://priusfallacy.files.wordpress.com/2012/08/dabba.jpg 6. What can we learn from the Dabbawalla system? Logistics is build around people rather than technologies Challenging logistic tasks can be done!!!(Workers have 40 seconds to load the crates of dabbas onto a train at major stations and just 20 seconds at interim stops) Implementing team incentives - Seven to eight mukadams typically aggregated their efforts and constituted a profit centre Human resource management is a key factor Zero-failure tolerance Adapting information management to illiterate staff 7. Coca-Cola Manual Distribution Centers in Africa 8. What can we learn from the Coca-Cola system?Entrepreneurship does not emerge for free a dedicated education and continuous business support is necessarySense of ownership - let people take care of equipment selling the liquid rather than bottlesLocal entrepreneurs can make distribution much more cost-efficientDespite a general concept, there is a strong need for contextualizing and localizing the distribution chainHighly complex distribution chain instead of endto-end, it is more than single-to-many 9. Agenda How do successful practices overcome the logistic and distribution challenges in lowincome countries? What logistic approaches are we using at the Eawag? What are other practices in sanitation logistics? 10. Sanitation logistics @ Eawag Blue diversion (Re-invent the toilet challenge)Vuna (Valorisation of Urine Nutrients in Africa) 11. Logistics for linking blue diversion and resource recovery plant Satellite image of Kyebando-Kisalosalo slum GIS analysis Determination of route length (e.g., closest facility, service area, and Origin-Destination (OD) cost matrix) Route planning 12. Source: Rafael Schmitt (2011) 13. Key indicators Distance access -> access [km] Distance collection -> RRP [km] Effective Working hours/day Required services/facility Emptying time per facility Worker/vehicle Vehicle costs & lifespan Maintenance cost Depreciation rateSource: Rafael Schmitt (2011) 14. Logistics for linking blue diversion and resource recovery plantSource: Rafael Schmitt (2011) 15. One cent per user & day for the logisticsSource: Rafael Schmitt (2011) 16. Sanitation logistics @ Eawag Blue diversion (Re-invent the toilet challenge)Vuna (Valorisation of Urine Nutrients in Africa) 17. Urine collection in Cliffdale a rural development area in Durban municipality (1) 18. Urine collection in Cliffdale a rural development area in Durban municipality (2) 19. Business model thinking guides the logistic approachesDecentralized Sanitation Product Management Model (DeSam)How can can we create VALUE? KACR VPKP KR CCS DMRKP Key Partner, KA Key Activities, KR Key resources, VP Value proposition, CR - customer relationship, DM distribution & marketing, CS Customer segment, C Cost structure, R - Revenues 20. Skate to where the VALUE will be ... Price for a single cup of coffee ($) Experience x805 Service x524 3 2 Convenience x61SupermarketCaf NespressoStarbucks 21. Skate to where the VALUE will be ... (2) Solid fertilizer prices CHF/kg 30 20 10< 1 CHF / kg0 Berry & fruit fertilizerGarden fertilizerBalcony Long-term Flower plants fertilizer soil fertilizerLiquid fertilizer prices CHF/kg 30 20 10 0 Flowers Source: Corine UhlmannLiquid fertilizerIndoor plantOrchisCacti 22. Fair-trade fertilizer (pro-poor) Key partners M-Pesa (South Africa) (for cashsolution) Local communitiesKey activities Value proposition Installation of Creating social collection tanks benefits through a Marketing of Fair-trade urine drop-off fertilizer brand Key resources Managing money What transfer key resources are required?Distribution Do-it-yourselfgarden center Small packages (online subscription)Key resources Collection point Transportation vehicle Treatment Branding & marketing skillsMarketing Branding fertilizer as a social good Shop-in-Shop conceptCost structure Partly subsidized by EWS Investment & operational costs of the collection points Transportation costs Reactor costs (investment & operation) Branding & marketing, packaging, market development Incentives for dropping-off the urineCustomers Less price sensitive gardeners High income Social responsibility Flower and inhouse plant loversRevenue streams (100%-x) of the fertilizer price can be considered as a donation for the income of poor people (incentives) x% covers the investment and operational costs 23. Incentive approach Initial situation Drop-off system depends on the distance between collection point and UDDT and the incentivesCollection points Percentage (number) of people according to distance to the collection points3 collection points7 collection points 24. For Durban fertilizer Key partners Small subcontractors executing the logisticsKey activities Value proposition Collection & Replacing existing transportation fertilizer (sub-contracting consumption with and performance a local (municipal) Key resources measurement) fertilizer What key resources are required? Reactor (operation & maintenance)Customer Customers relationships City of Durban Direct relationship Departments to different city taking care of departments and green areas in the the subcity (e.g. beach contractors doing front, parks, the gardening stadium)Key resources Training logistic sub-contractors TreatmentMarketing Internal marketing Acceptance of the municipalityCost structure Collection & transportation Urine treatment and fertilizer productionRevenue streams Existing fertilizer expenditures are re-directed to cover the costs for collecting, treating urine and to produce fertilizer 25. Institutionalized approach urine tanks get collected and emptied Pilot scale EWS created teams picking-up the urineOptimizing Reconsidering the logistics Localizing the logistics Improving the prediction of urine production 26. Large fertilizer user with a social interest Key partners Depending on the collection approachKey activities Value proposition Developing such Promoting the as a strategic social partnership engagement of a Collection & large fertilizer user Key resources transportation to the municipality What key resources are required? Treatment Key resources Treatment reactor Transportation vehicles Risk managementCost structure Large user covers cost for the treatment (investments and operation) and well as parts of the collection costs EWS subsidies the collectionCustomer Customers relationships Large company Strategic consuming partnership traditional fertilizer between EWS and Looking for a the customer differentiation in the local market Differentiation Marketing achieved through One-to-one social contribution relationship Customer can use (e.g., Coca-Cola, Heineken ) its social contribution in the marketing campaignRevenue streams Large fertilizer user does not pay, but rather covers emerging costs 27. Agenda How do successful practices overcome the logistic and distribution challenges in lowincome countries? What logistic approaches are we using at the Eawag? What are other practices in sanitation logistics? 28. Sanergys low-tech solution seems appropriate 29. X-runners new key performance indicators How many people put the bucket in front of the house? (Key performance indicator measured 16%, goal 60%)? How many people pay in time? (measured 88%, goal 95%)?Percentage of on-time Payment for Monthly users 100 90 80 70 60 50 40 3020 10 0 JanFebMarAprMayJunJul 30. Conclusions Successful practices Logistics is finally about people (collectors & entrepreneurs) doing it and not researchers simulating it People AND technologiesEawag GIS data, logistic approaches, and embedding these into an overall business model Sanitation logistics Small things make a difference, robust and fool-proofed approaches 31. Thank you very much