Trucks and their Drivers are not digital - Alan Braithwaite, Cranfield University.

Freight is not digital – but

its future is

Professor Alan BraithwaiteLCP Consulting

1June 2016 Festival of Business - Liverpool

Festival of Business – Liverpool

• Trucks and their Drivers are not digital. The future of City logistics is an interesting one. Currently 20% of traffic and 40% of emissions come from our cities supply chain. With stringent emission regulations in place and an ever growing demand (Greater Manchester alone is projected to grow by 750,000 people by 2050) what is our strategy? Can we simply rely on digital solve it? Discuss this latent issue for society, learn how the public and private sector should be working together to meet emission targets and work in smart ways to run freight.

June 2016 Festival of Business - Liverpool 2

» Chairman and founder of LCP Consulting (1985)

» Extensive consulting experience @ 400 clients

» Wide exposure and experience across all sectors

» Visiting Professor at Cranfield, since 2006

» Longstanding research interest in logistics sustainability

» Lead author in CILT’s Freight Vision 2035

Alan Braithwaite


Chartered Institute of Logistics and Transport


UK Freight Transport: setting a coherent

strategy and direction for 2020 and beyond

A White Paper prepared to promote the debate on transport policy

~~~~

Professor Alan Braithwaite, LCP Consulting

© LCP Consulting Ltd – March 2011

LCP Consulting Ltd

The Stables, Ashlyns Hall, Chesham Road,

Berkhamsted, Herts UK HP4 2ST

www.lcpconsulting.com

TODAY …» By way of introduction…

» The Digital revolution and its impact on freight and logistics

» Consignments aren’t digital - the societal challenges for logistics

» The CILT Vision 2035 incorporated digital technology

» But in 3 years the world has moved on – technical scenarios

» A personal view on what the future holds

» The barriers and policy challenges



Huge pace of change – the digital revolution

10-Core Xeon Westmere - EX

Moore’s Law ~ Transistor count per square inch 1971 to 2011

2,600,000,000

1,000,000,000

100,000,000

10,000,000

1,000,000

100,000

2,300

Tran

sist

ors

per

sq

uar

e in

ch

1970 1980 1990 2000 2010

4004

8086

Pentium

Pentium 4

…and people are in control


Structural change in retail


Internet shopping will be 25% by 2020 but van growth will be contained by Click and Collect

Vans are the

growth area


Major implications for food logistics

Year Supermarkets Convenience Discounters Online TOTAL

2014 £118.6bn £37.4bn £10.8bn £7.7bn £174.5bn

2019 £115.7bn £49.0bn £21.4bn £16.9bn £203.0bn

Source: IGD (http://www.igd.com/our-expertise/Retail/retail-outlook/21115/The-next-five-years-How-the-UK-grocery-market-will-evolve/)

Consignments aren’t digital



But the fleet mix is changing in response to markets


…and bringing societal challenges

The costs of congestion is £6bn to £8bn and rising again

In Logistics the long term cost trends are now upward


… PM2.5’s are said to cause up to 50K deaths / yr

Supreme Court Judgement on Air

Quality

EU: Zero emissions transport in cities including freight

(2030)

Many air quality and congestion

black spots

CILT Vision 2035 and digital


Replace VED and fuel tax for all GVs with a lorry user charging system based on road occupancy

Mandatory use of telematics on all GVs to support this, but also provide wide area network integration opportunities

CILT Vision 2035 and digital…


• Planning for urban hubs

– a priority under

national guidelines

• All distribution parks

should be planned with a

presumption of rail

connection and suitable

sites identified nationally







» The big policy challenges



Digital speed and connectivity is changing freight and logistics faster than we understood…

e.g. Uber for freight and autonomous trucks


A key role for EVs


http://frevue.eu/editorial-important-news-by-frevue-project-manager-matthew-noon/

http://frevue.eu/editorial-important-news-by-frevue-project-manager-matthew-noon/

What the future holds – a personal view


TODAY

FUTURE

Consolidation Centres

Regional Distribution

Centres

Outlets

City HubsConsolidation Centres

The barriers…» Endemic boardroom aversion to collaboration

» Mutual benefit vs helping the enemy?

» The need for innovative business models

» Seldom come from the incumbents!

» The public < > private conundrum in freight

» Infrastructure investment and return

» Lots of policy issues…..


Some big policy challenges» Increased regulation of City Logistics

» Operating hours

» Vehicle access controls including fuels

» Mandated consolidation

» Land use and planning for logistics capacity

» Can no longer depend on the market

» Needs a more joined up view in a constrained world

» Competition law to enable collaboration

» Type approval for autonomous vehicles

» Messaging standards and protocols


Trucks and their Drivers are not digital - Alan Braithwaite, Cranfield University.

Business

Transcript of Trucks and their Drivers are not digital - Alan Braithwaite, Cranfield University.