CASTLE Cooperation Among SMEs Toward Logistic Excellence

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1 Co-financed by the ERDF made possible by the INTERREG IVC INNOVATION & ENVIRONMENT REGIONS OF EUROPE SHARING SOLUTIONS CASTLE Cooperation Among SMEs Toward Logistic Excellence CASTLE Kickoff-Meeting Bruxelles, 25 th 26 th February 2009 Konstantinos Strataridakis, PhD Head of the Informatics and Documentation Dept. of the Region of Crete Presented by Manos Shinakis Civil Transport Engineer, MSc, MBA Elsa Koukouloudi Civil Transport Engineer, MSc

2 Background information for the Region of Crete (1/2) Region of Crete: The Crossing Point of Trade Centers The Region of Crete in the Med area 2

3 Background information for the Region of Crete (2/2) Basic Regional Indicators Surface area: sq.km (6,3% of the country) Population: inhabitants (5,5% of the country) The Region of Crete produces 5.3% of the national GDP. The primary sector is mainly related to the agricultural products (olives, olive oil, tomatoes, grapes, citrus fruits~9% of the Gross Added Value), the secondary sector is related to the processing of foods and drinks, plastics products and other industrial (~13% of GDA) and the third sector is mainly related to the touristic services (~78% of GDA) Crete has several ports, the majority of them located in the North part of the island. The main Cretan Ports are the Port of Heraklion, Port of Souda, Port of Rethimnon and Port of Sitia 3

4 Project theme 1: Strengthening the logistics supply & the logistics industry Current Status Several policy measures and actions have been undertaken in the context of Regional Operational Programmes of Crete in order to improve the logistics supply services and logistics industry of the Region. The most characteristic are presented below: Axis 3: Participation of the Region of Crete in the international transport network as transhipment hub, Measure 2: Development of commercial infrastructure. The aim of this measure has been the development of basic commercial infrastructure in terms of distribution centres, transhipment centres, Logistics parks. In addition the measure has foreseen the introduction of new technologies for the better management of the operations. The New Development Law 3299/2004 that includes co-financing for transport and logistics services It has been applied successfully in Crete presenting the higher absorption rate of the country 78%, with 25% dedicated to transport and logistics activities. The scope of the New Development Law regarding transport and logistics services is to co-finance business plans that promote the rationalization of freight transport with the provision of integrated services, new installations and equipments, ICT solutions etc. 4

5 Project theme 2: Improving the logistics demand in the production systems Current status Policy measures and actions related to this project theme were focused on creating and providing the right environment to the production companies for networking and sharing of same facilities and services (logistics services included). The most characteristic are presented below: Axis 3: Participation of the Region of Crete in the international transport network as transhipment hub, Measure 2: Development of commercial infrastructure. The idea is to promote the cooperation and synergies between SMEs of the same business cluster but also with those that are directly related and cooperate. In relation to the production companies, the creation and establishment of competent logistics services will enhance logistics demand. Axis 4: Improvement of the economic functions and the quality of life in the large urban areas, Measure 3: Development of industrial and business areas and networks. The aim of this measure has been the development of industrial and business infrastructures between business clusters, funding of the companies for the establishment of their activities in industrial areas and zones and actions that would support the business activities mainly with regard to the promotion of their products and the development of synergies between relevant business clusters. 5

6 Project theme 3: Strengthening logistics training for SMEs Current status Region of Crete foresees and provides financing for training activities. Region of Crete provides and supports the training programmes by including specific actions in the ROP (ensuring the National subsidies) or exploiting the ERDF opportunities. The main training programmes are initiated by the Local Government Bodies in order to facilitate the use of ICT technologies, SMEs (through the relevant Chambers) for innovative issues, promotion strategy and opportunities for extending the market networks, use of new technologies etc. Training programmes have been financed in the context of National and European research projects to specific target groups that were directly or indirectly related to the programmes objectives. Regarding logistics training, the courses and programmes offered so far are more at business organisation and development level than in business and operational networking. The regional environment of Crete is a good test bed for the organisation of training programmes providing the opportunity for first time right. 6

7 Project theme 4: Institutional and governance consolidation in logistics Current status The Region of Crete participates in the CRPM (Conference of Peripheral Maritime Regions) and its legal representative is the President of one of the six geographical commissions The Islands Commission. The Region of Crete -through its legal representative- has the presidency of the Regional Network of Excellence and Innovation in which Academic and Research Institutes, Professional Bodies, Chambers etc participate. The transport and logistics issues, the rationalization of freight transport in the Region, supportive actions to SMEs (manufacturing companies and transport/logistics) are in the agenda of the network. 7

8 Experiences relevant to CASTLE agenda (1/3) A. INTERREG Projects The Region of Crete was partner on the following transport and logistics projects: MADAMA (Interreg IIIB MEDOCC), on dangerous goods transport MEDIGATE (Interreg IIIB MEDOCC), on freight villages and intermodal transport development The Region also followed the execution of the CORELOG project, which involved improvements in the transport logistics policies, by participating in the questionnaire survey and the forums. 8

9 Experiences relevant to CASTLE agenda (2/3) B. Projects targeting SMEs networking HEI-NET (CRINNO Innovative Actions ERDF), on the introduction of innovative methods for the productions and handling of traditional products YPAITHROS (CRINNO Innovative Actions ERDF), on the provision of information to SMEs that are affected by the lack of accessibility to information Green Batteries (LIFE), on the design and implementation of a collection, transportation, storing and recycling system for batteries in Crete. 200 regional SMEs have cooperated in the project. Capital Bleu (Interreg IIIB MEDOCC), on bringing together strategic business clusters of the tourism sector. ROC-Nord (RECITE) pilot project for environmental protection through -among others- solid waste management, renewable energy sources etc. 9

10 Experiences relevant to CASTLE agenda (3/3) C. SMEs cooperation of production companies for logistics services Green Batteries Life project. The project has successfully implement collaboration of the SMEs dealing with batteries and accumulators in terms of consolidation for environmentally friendly disposal. Regarding logistics services, cooperation between transport operators with equipped trucks for the collection has been achieved. The schedules and routing have been planned in common in order to better use their fleet and minimise their transport cost. In the context of the HEI Net project, one of the activities was the study of the transport and logistics requirements for the efficient transport of products. The analysis showed the activities that can and should be outsourced and has specified the logistics needs of this business sector (production of traditional products). 10

11 Plan for future policies for SMEs logistics The most representative priority topics and targets for policy actions relevant to CASTLE thematic agenda are presented below: Establish the institutional framework for better coordination and collaboration of SMEs of the manufacturing and transport logistics network Create synergies and collaborative networks between business clusters including the transport logistics business Training and awareness on specific issues of logistics and supply chain management Create a network for exchanging of best practices and real life applications 11

12 Topic areas of interest (1/2) The main topic areas that are of interest for exchanging experiences in the context of CASTLE project are: Policy Making Specific input regarding the procedures followed for policy making, how do they cooperate with business society, what are the procedures for the prioritisation of actions, regional society needs etc. strategies facilitating the collaborative logistics both vertically and horizontally and initiatives/incentives for sectorial networking. Methods for projects initiation What are the preparatory actions for the development of PPP projects for logistics integrated infrastructure, what are the procedures and actions for users involvement, who is taking the initiative for the organisation and involvement of the users 12

13 Topic areas of interest (2/2) Practical operational examples of logistics and SMEs cooperation These examples should provide the maturity and justification to be used as transfer of best practices to the regional business society but also to the policy makers in order to include similar actions to the regional policy and development programmes. Logistics training issues What topics are included per logistics thematic area, how are they identified, the methodological model and corresponding practical material, what is the financing scheme for the training activities, what are the required qualifications for attending the seminar/training course and corresponding structuring etc. 13

14 Co-financed by the ERDF made possible by the INTERREG IVC INNOVATION & ENVIRONMENT REGIONS OF EUROPE SHARING SOLUTIONS Thank you for your kind attention!

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