EIRAC

Sustainable Supply Chain Management EC project proposal

Herman Journe Port of Amsterdam Ecoports Foundation

7th EIRAC Plenary Brussel, 13/11/2009

Starting Point
1. Sustainable Logistic Solutions no longer feasible as stand alone 2. Increasing mutual influence of all stakeholders in the chain 3. Need for cooperation between all stakeholders of the chain, public and private, for common solutions 4. Need for standards to manage environmental risks

Motivation
1. Market: logistic innovations needed to reduce costs 2. Laws: environmental impact of goods transport to be reduced 3. Increasing environmental risks require management tools
stakeholders, reputation, license to operate, standards

4. Improvements attainable in efficiency, cost and environment by approaching supply chain as a system 5. But bottle necks to be solved to allow for switch to systems approach
companies: no cost optimalisation on the full chain government: uncertainties around standards in implementing environmental laws

6. Many sustainable solutions are already available

Objectives
Set up and testing of 1. a sustainable supply chain, indoor to indoor (not door to door)
2. a basic management system for a sustainable supply chain 3. an applied knowledge unit, to support on a day by day basis ongoing sustainable supply chain pilots 4. a neutral, trusted, sustainable supply chain management organisation 5. a network of good practice experience in sustainable chain solutions: best practice learning community

Approach
1. Learning by doing applied operational research to be delivered to ongoing pilots 2. Connect good practices from all partners into a chain system also from authorities with operational tasks in the chain 3. Use lessons from on going (regional) sustainable chain project a.o. in NL and from experience with Ecoports Management Tools 4. Choose for cradle to cradle as sustainability principle 5. Operations and business driven

Structure
Participants: fore runners in their field 1. Project driving Companies
1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 1. 2. 3. 4. Deep sea shipowner Terminal Transport company Inland Barge company Rail company Road transport company Shipper Insurance company Port Community IT Systems Company Quality Management Systems Company Port Authority Environmental Authority Food Inspection Customs

2. Project supporting companies

3. Project supporting authorities with an operational task in the chain

4. Applied Knowledge Unit 5. Neutral Trusted Intermediairy

Demonstrators
1. Three (or more) indoor to indoor supply chains up and running in a sustainable way measured by global standards
Logistic Concept: a 3 level logistic solutions approach: 1. International plus national level 2. Regional level inside countries 3. Local port-city congested areas level

2. Basic sustainable supply chain management system 3. Basic sustainable supply chain management certificate 4. Applied Knowledge Unit for daily operational research support in sustainable chain management

Logistic Concept: 3 level approach

Each level has own characteristics and bottle necks And needs own solutions To be provided by different players

Such as local logistics community and local environmental authorities

But approaches can be driven by the same systems concept

Logistic Concept: 3 level approach

Level 1. (Inter-)national Den Helder basic sustainable transport system

Port-City area

Transferium RoadWaterways/Rail Hinterland Hub

Logistic Concept: 3 level approach

Level 2. Regional Circle Line on water Den Helder connecting industries with ports
Regional industry Sites and roadwater transfer points

Daily waterway / Rail circle line

Logistic Concept: 3 level approach

Level 3 Port City Area system Den Helder for sustainable transport
Daily Transport service on waterways /rail within port-city area

Some Basic Requirements for success

Supporting Regulation By Companies: Example: management quality systems Example: different approaches to deal with congestion By Governments: Example: customs laws require systems approach in supply chain and cooperation between partners in the chain Example: limits for trucks entering certain (environmental) zones By Port Authorities: Example: take measures for CO2 reduction with 50% Example: limits in land lease contracts in yearly number of trucks But standards needed!!!

Some lessons learned

ECOPORTS
Problem Large differences in implementation of environmental laws leading to large cost differences (no level playing field) Solution Basic risk environmental risk analysis system, basic environmental management system (build from ISO elements), basic certificate Results starts a process of awareness delivers transparancy in implementation of laws in practice exchanges cost and environmental effective solutions raised the level of environmental management to a basic quality

Some lessons learned

Brings 30 tons on 30 metres outside ship Same transhipment tempo as crane on quayside Capacity: 144 TEU No quaywall needed, no quay area needed

Initiated by Amsterdam Port Authority

Now 3 year experience:

Proven competing alternative for road transport in congested port city areas.

Working Packages
1. Database and network of good practice experience with
sustainable solutions for operational activities in the supply chain

2. Operational applications

derived from lessons from experiences in sustainable supply chain management in the fields of: Environment, safety, security, logistic costs, IT chain system

3. Three indoor to indoor sustainable supply chain pilots: Development and test
4. Quality criteria for keeping a supply chain on
a basic sustainable quality level

and of a basic sustainable supply chain

management certificate

Working Packages
5. An applied knowledge organisation , set up and test, based on
database of good practice experience, network of experience with sustainable solutions for the chain and applied research required in pilots

6. Uniformity in supporting rules,

experience in implementing laws

to be derived from best practice

7. Training modules to be set up of for key bottle neck issues preventing supply
chains from becoming sustainable, including seminars and a learning community of practice

8. Neutral and trusted intermediairy for sustainable supply chain

management

9. Project Management, Communication, Dissemination, reporting, administration

Project partners
Interest is shown by a number of companies, governmental organisations, ports