Supply chain event management - enhancing planning and monitoring of intermodal chains

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1 Supply chain event management - enhancing planning and monitoring of intermodal chains Prof. Dr. Frank Arendt Universitätsallee Bremen Germany

2 Agenda Introduction to ISL Container Chain Visibility The SCEM approach Some experiences from INTEGRITY, RISING, CHINOS, etc. Lessons Learnt and Outlook

3 Institute of Shipping Economics and Logistics ISL Bremen, Universitaetsallee ISL Bremerhaven, t.i.m.e.port II

4 Service Profile Applied research and consulting in the field of shipping economics and maritime logistics Non-profit organisation founded in staff members, interdisciplinary project teams Interface of research, development and practice, transfer between science and industry Information provision by Information centre/library and publication of statistics & market reviews Wide spectrum of services and scientific consulting in three departments Logistics Systems Maritime Economics and Transport Information Logistics 4

5 Information Logistics - Range of current projects 5

6 Supply Chain Visibility

7 Visibility of the container chain Logistics (efficiency) Challenges A lot of parties involved in door-to-door chains Different languages Different media Chain status data sharing is limited Security Challenges Those who have to report are partly not knowing what s in it Containers are anonymous boxes no-one can easily check what s in it (visibility of cargo) all parties have to trust in data and their quality Short Sea 15 European Conference - Prof Dr Frank Arendt 7

8 The Chain Perspective as is Tony Webster, Director Logistics of A.S. Watson Benelux : For lots of companies, the logistics chain is still a black hole. Because of that, they can only respond to deviations from schedule at a late stage. And that kind of last minute work always costs money. Short Sea 15 European Conference - Prof Dr Frank Arendt 8

9 Why Supply Chain Information Visibility? to make chains more transparent and predictable to enhance risk management Logistics risks Financial risks Security risks Fiscal risks to support different actors in performing their duties But not appreciated by everyone! Short Sea 15 European Conference - Prof Dr Frank Arendt 9

10 Supply Chain Visibility - Interoperability Aspects Technologies Processes Laws & Regulations Costs Agreements Short Sea 15 European Conference - Prof Dr Frank Arendt 10

11 The SCEM approach

12 Supply Chain Event Management SCEM Tracking & Tracing Manual check of different data sources Detection of deviations manually and by chance Useless OK replies Supply Chain Event Management Active process control Automatic detection of unexpected events Message only in case of disturbance Detection of deviations in an early stage Short Sea 15 European Conference - Prof Dr Frank Arendt 12

13 Most crucial issue in transport and logistics ETA Estimated Time of Arrival Short Sea 15 European Conference - Prof Dr Frank Arendt 13

14 SCEM for Rail Services

15 Import Scenario Source: Short Sea 15 European Conference - Prof Dr Frank Arendt 15

16 Import Scenario - Plan BHV Port Tu 16:00 We 10:00 We 13:00 HB Hub We 17:00 Th 05:00 Nuremberg Th 08:00 Th 14:00 Passau Short Sea 15 European Conference - Prof Dr Frank Arendt 16

17 Expected events/status messages BHV Port Tu 16:00 We 10:00 NTT train arrived NeCoSS Train consolidated NeCoSS Loading plan exists Loading list identical with loading plan NeCoSS train ready for departure NeCoSS train departed Vessel arrived Container discharged Container released NTT train departed We 13:00 HB Hub We 17:00 Th 05:00 Nuremberg Th 08:00 Th 14:00 Passau Short Sea 15 European Conference - Prof Dr Frank Arendt 17

18 Possible events/status messages BHV Port Tu 16:00 We 10:00 Track blocked Congestion We 13:00 HB Hub Vessel arrival delayed Container not on board Container not discharged Container not released Container damaged Vessel is not calling at BHV Container length, weight wrong Dangerous goods data wrong Too many containers for NTT Containers for NTT missing We 17:00 NTT too late, NeCoSS already left Too many containers for NeCoSS Wagons consolidated incorrectly Wagon group missing Th 05:00 Wagon out of order Nurem- Engine out of order Passau berg Personnel missing (e.g. driver) Th 08:00 Th 14:00 Short Sea 15 European Conference - Prof Dr Frank Arendt 18

19 Important items for the realisation Monitoring on two levels Identification of missing events Processing of unexpected events Integration with operative systems required How to get (automated und close to real-time) status events? Phone (drivers) EDI (port systems) Mobile PCs/Smartphones (drivers) RFID Short Sea 15 European Conference - Prof Dr Frank Arendt 19

20 SCEM for Inland Waterway Services

21 Objective Improving the Integration of Inland Waterway Transport into Intermodal Chains Better use of RIS (river information services) for logistics purposes New harmonised IT services Proactive monitoring of the transport chain: Automatic detection of deviations from plan: appropriate measures, i.e. reschedule Short Sea 15 European Conference - Prof Dr Frank Arendt 21

22 Scenario of IWT Events Fairway blocked Congestion Lock chamber closed Vessel arrived Container discharged Container released Vessel arrival delayed Container not on board Container not discharged Container not released Container damaged Container length, weight wrong Dangerous goods data wrong Water level too low Bridge clearance too low Discharge completed Barge departed in time Berthing plan postponed Barge arrived in time Post haulage as planned Short Sea 15 European Conference - Prof Dr Frank Arendt 22

23 Demonstration Case Goals Berth & Terminal Planning Reduce waiting times at terminals Reduce congestion Optimize terminal resource management Transport Planning Optimize fleet utilisation Reduce fuel consumption Promote IWT as transport alternative Transport Monitoring Increase transparency Detect deviations earlier Increase reliability Short Sea 15 European Conference - Prof Dr Frank Arendt 23

24 Berth & Terminal Planning Demonstration Partners ARA-Ports Case: Portbase PCS for Rotterdam & Amsterdam Rhine-Port Case: CTS Container Terminal in Cologne Danube Case: Helogistics (Ports of Baja, Enns & Vukovar) ETA Announcement Current Position Barge Operator (Berth Notification) RTA Reply Terminal Operator Resource Availability (Berth Confirmation) Short Sea 15 European Conference - Prof Dr Frank Arendt 24

25 Demonstrators Containers Bulk, e.g. iron ore Heavy cargo Steel products Short Sea 15 European Conference - Prof Dr Frank Arendt 25

26 Event Management Web Application Subscription management Event visualisation & analysis RIS standards are applied wherever possible RIS Index Waterway infrastructure Terminals Inland ECDIS charts Inland AIS data Short Sea 15 European Conference - Prof Dr Frank Arendt 26

27 SCEM for Intermodal Container Services

28 Win-Win Appraoch How can security and logistics issues be improved by a single approach offering benefits for both industry and authorities? Shippers/3PLs Customs Authorities Logistics Security Supply Chain Visibility Short Sea 15 European Conference - Prof Dr Frank Arendt 28

29 INTEGRITY Partners Academia & Technology Providers Terminal and Transport Operators Logistics Providers & Shippers Coordinator Customs Authorities Short Sea 15 European Conference - Prof Dr Frank Arendt 29

30 INTEGRITY Corridor 通 道 Door-to-door: China - Shenzhen Rotterdam/Felixstowe European Hinterland 门 到 门 : 中 国 深 圳 鹿 特 丹 港 / 费 利 克 斯 港 欧 洲 大 陆 Monitoring of 5,000 containers 监 控 5,000 个 集 装 箱 Cooperation with EU/China Customs Project (SSTL) 与 欧 盟 / 中 国 海 关 项 目 (SSTL- 安 智 貿 ) 紧 密 合 作 Short Sea 15 European Conference - Prof Dr Frank Arendt 30

31 How to achieve Supply Chain Information Visibility? Integration of reliable sources Nearly all required information do exist somewhere but are not shared! Visibility Platforms can offer additional value Sensors RFIDs E-seals Container security devices Satellites Radiation portals Trust! SICIS Scanning data Platforms and Portals X-ray scanners Port Community Systems Tracking and Tracing portals Data Providers/ Users Port Authorities Shipping Companies Customs Authorities 3PLs/Cargo Owners Terminal Operators Inland Transport Operators Short Sea 15 European Conference - Prof Dr Frank Arendt 31

32 Container Security Devices (CSDs) Attach the CSD to the container Close the container door Assign and lock the container with a handheld device Short Sea 15 European Conference - Prof Dr Frank Arendt 32

33 Supply Chain Event Management (SCEM) comparing plan and status information (proactive) detecting risks (logistics, security) Warehouse China Inland transport China Port of Loading Ocean transport Port of Discharge Inland transport Warehouse Europe AEO Status E-seal information Supervised packing AEO status Tracking information ISPS certified operator Manifest provided X-ray scan checked E-seal checked Radiation checked ISPS certified vessel Satellite Tracking ISPS certified operators Import Customs has not received data Info on oncarriage missing UNKNOWN UNKNOWN Short Sea 15 European Conference - Prof Dr Frank Arendt 33

34 SICIS: Container overview Logistics Events Security status Short Sea 15 European Conference - Prof Dr Frank Arendt 34

35 SICIS: Vessel events Short Sea 15 European Conference - Prof Dr Frank Arendt 35

36 Lessons Learnt

37 Lessons learnt SCEM is considered a powerful approach to optimise chain visibility Detecting deviations early will give the planner a time advantage to react Information is limited to the relevant facts, no overload Availability of up-to-date and accurate information is key Provision of these data is not a technical challenge Willingness to share data is essential (TRUST!) Automatic data capture (e.g. using AIS) has (still) legal restrictions Data ownership issues difficult to solve Willingness to pay for services is low Changing minds takes time! Short Sea 15 European Conference - Prof Dr Frank Arendt 37

38 Gives ETA the right information? / Short Sea 15 European Conference - Prof Dr Frank Arendt 38

39 Future KPI? ETAv Estimated Time of Availability Short Sea 15 European Conference - Prof Dr Frank Arendt 39

40 Contact Prof. Dr. Frank Arendt Director Information Logistics Universitaetsallee Bremen Fax +49/421/ Tel. +49/471/ Short Sea 15 European Conference - Prof Dr Frank Arendt 40

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