Presentation at SpeedChain Event in Prague November 2016 on the benefits of Collaboration among Shippers and Logistic Service Providers enabled by common global data standards

1. Jaco Voorspuij, Senior manager Transport & Logistics, GS1 global office
Mix Move Match
Eliminating waste in the supply chain
Increasing utilisation by enabling collaboration through standardisation.
3rd November 2016; Speedchain Event Praha

2. © GS1 2016
GS1 is a global standards organisation
 neutral and not-for-profit
 user-driven and governed
 global and local
 inclusive and collaborative
GS1: The global language of Business
2

3. © GS1 2016
GS1 standards are used every day,
everywhere
3
by big retailers
by small shops
by world-famous
brands
by Logistics
and many more…
in over 1 million
organisations
in close to 150
countries
3

4. © GS1 2016
Rich set of standards
4

5. © GS1 2016
Key Benefits
5
Efficiency Safety Collaboration Sustainability
GS1
standards
drive supply
chain
efficiency
Source: IBM/Consumer Goods Forum Global
Scorecard

6. © GS1 2016
Agenda
• What challenge does Mix Move Match address?
• What is Mix Move Match?
• How do Standardisation and Mix Move Match enable Collaboration?
• What benefits does Mix Move Match deliver?
• How could you apply Mix Move Match?
6
Winner ICT for Society award
EC Innovation Radar 2016

7. © GS1 2016
Reduce structural waste in SC
7
About 20% of vehicle kilometres
driven in the EU-27 are performed by
empty trucks.
1 in 5 trucks completely empty.
On average trucks are half empty !!
Average load factor of trucks (in
terms of weight) is only 56%.
Trucks on average HALF full
Source:www.co3-project.eu
Wasted Space in
transport logistics circa
EUR 100 – 300 billion
per annum.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
kms run
empty
kms run
loaded

8. © GS1 2016
Main ways to attack structural waste
8
 Mix Move Match
Avoid Transporting Air over long distances
(even when working for a single Shipper)
 Engage in Collaboration
with Multiple Shippers and/or
Multiple Logistics Service Providers (LSP).
 Mix Move Match concept (M3) developed as a pilot in iCargo
 3M, Marlo, DHL, GW co-designed
 Collaboration multi-shipper and multi-LSP and Standardisation
starting points for design.
 GS1 system chosen as the basis for standardisation

9. © GS1 2016
Agenda
• What challenge does Mix Move Match address?
• What is Mix Move Match?
• How do Standardisation and Mix Move Match enable Collaboration?
• What benefits does Mix Move Match deliver?
• How could you apply Mix Move Match?
9
Winner ICT for Society award
EC Innovation Radar 2016

10. © GS1 2016
Mix Move Match – The Challenge
10
BEFORE
AFTER
Build Customer Pallets as
close as possible to Delivery

11. © GS1 2016
Mix-Move-Match - The Concept
11
 Customer Order Decoupling Point (CODP) is as close as is possible to the
final delivery point.
 Downstream from CODP the Order is the entity being managed
 Upstream from the CODP Logistic Units (Pallets and Cartons) are the
entities being managed
FULLY loaded trucks driving long distance reducing trucks on the road:
• Radically reducing Total Supply Chain costs through high utilisation of resources
• Radically reducing Carbon Footprint of Supply Chain.
• Enabling reallocation of activities across the end-to-end Supply Chain.
Customer-friendly pallets
Sources of Supply Customers
Distribution /
Reconstruction
Hub
Consolidation
Hub
Long-
distance
haulage
Boxes stacked in roller
cages or on full mixed pallets
Postpone creating
customer-specific pallets
CODP

12. © GS1 2016
Why are Reconstruction Hubs
different from traditional cross-docks?
12
Input
Inbound
Validation
Order/Product
Reconstruction
Outbound
Validation
Output
Sorting done based on pre-planning that
applies business rules
for reconstructing cartons/pallets from multiple inbound Receipts
(from same or multiple shippers).
Process strictly controlled by RF-scanning
of each LU to avoid errors whilst ensuring execution is highly
efficient.
Each Carton/pallet (Logistic Unit - LU) is
uniquely identified by barcode (SSCC).
During Inbound each one is checked by RF-scanning to confirm Receipt.
Shipper will send EDI in advance of LU to be handled by the Recon Hub.
Discrepancies are immediately captured and corrected
(in collaboration with the Shipper)
Reconstruction Hubs deliver fully controlled operations down to box level

13. © GS1 2016
M3 - closes the gap
WMS and TMS leave in the SC
13
Production
plant C
Production
plant D
Central DC
X-Docks
Customer
x-Dock Overview Chart v03.vsd/29.10.2013
ERP
Customer User
M3
DSC
Customer
Data flow
Product flow
TMS
WMS
X-Docks
Customer Customer Customer Customer Customer
Production
plant A
Production
plant B
X-DocksX-DocksX-Docks
DCDC

14. © GS1 2016
Agenda
• What challenge does Mix Move Match address?
• What is Mix Move Match?
• How do Standardisation and Mix Move Match enable Collaboration?
• What benefits does Mix Move Match deliver?
• How could you apply Mix Move Match?
14
Winner ICT for Society award
EC Innovation Radar 2016

15. © GS1 2016
M3 is designed from the ground up to be
independent of any LSC or LSP.
Processes, Identifiers, Messages are all chosen to be applied generically .
15
Applying Open Standard identifiers
and Open Standard messages
 Create a network of connected
hubs which will enable shippers
to choose the best possible route
for getting their product from
factory to client.
 Only at the final hub closest to
the end-customer would
products be reconstructed into
orders using standard process
and tools.
 Designed to be complementary to WMS and TMS already in use in the
Network. It does not replace a TMS or WMS.

16. © GS1 2016
 All logistic units (LU) are identified by SSCC
 Parties are identified by a GLN enabling easy and error-free
optimisation across multiple shippers (and even multiple ship-
from locations for a single shipper).
 Shipments and consignments are identified by GSIN & GINC
allowing the same ID to be used across multiple LSP handling
parts of the Logistics Network
 Labels are GS1 compliant (using GS1 ID/barcodes) where feasible.
 Interfaces are based on GS1 XML messages
- Transport Instruction (several applications)
- Transport Status Notification
- Transport Invoice (not yet implemented)
Avoidance of any proprietary ID and messages
enables shared use of the Collaborative Network
made up of many LSC and many LSP.
16
GS1 standards in Mix Move Match

17. © GS1 2016
Operations / Integration Overview
17
3M
SIS
M3
Mix Move
Match
Conveyor
(if used)
Carriers
Internal
& External
HUB
TMS
Truck Info
X trucks => Y Wave
Sorting Spur
Scanned SSCC
Operator
in HUB
Print
Labels
M3 Complete Consignment (TI)
GINC, Volume, Weight, # Parcels,
Assigned Carrier, # Labels
GS1 Transport
Instructions covering
ALL sources of
material
Synchronous Call
or Batch Transfer
Book Transport
Consignment
Carrier Shipment #,
Weights, Volume,
Ship Units
Create Transport
Consignment for
Carrier TMSes with
Carrier Shipment Nbr
etcetera
Copy of Transport Consignment including
Carrier Shipment # and 3M Order Numbers
to enable IOD to be linked to 3M Orders.
GS1 TI Response (TBC)
Information on Delivery
(Per DHL Shipment Nbr)
GS1 Transport Status Notification
Attach Labels
to Ship Units
Order Reconstruction
Information
GS1 TI
Despatch Info sent X times
daily in GS1 TI (simple)
May be GS1 TI;
Mostly more
traditional types

18. © GS1 2016
 Greatly increase flexibility in Supply Chain configuration.
 Combine materials from multiple origins onto a single Delivery (Unit).
 Enables Shipper Collaboration.
 Minimise empty miles and maximise fill factors on transport.
 Hub Network typically operated by multiple LSP
 Based on open GS1 System of Standards.
 Build Customer Delivery Units as close as possible to the Customer.
 Reconstruction activities in the Hubs require a specialised application.
 Jointly developed by 3M, DHL (and other LSP) as part of iCargo
programme.
With 3M 50% fewer trucks long haul and
30-35% Total Logistics Costs reduction.
Much reduced Green House Gas emissions.
THE PRIZE is GREAT
Optimised fill rates on Transport
18
Mix Move Match Delivers

19. © GS1 2016
Additional info
• Watch the Mix Move Match video
• https://www.youtube.com/watch?v=nxAkfTsAM9k
• www.gs1.org
19

20. © GS1 2016
Agenda
• What challenge does Mix Move Match address?
• What is Mix Move Match?
• How do Standardisation and Mix Move Match enable Collaboration?
• What benefits does Mix Move Match deliver?
• How could you apply Mix Move Match?
20
Winner ICT for Society award
EC Innovation Radar 2016

21. © GS1 2016
Mix Move Match Application criteria
Companies running business processes with:
 Large Number of Small Customer deliveries.
 “Issue” with fill rates (empty miles).
 Customer delivery Quality issues (OTIF).
 Combine multiple sources for Customer delivery.
 Delivery Documents issues.
Shipper Companies willing
 and able to barcode label cartons/pallets and provide EDI in advance.
 to allow combination of their Goods with other Clients for single
delivery to common Customer.
Receivers allowing mixed deliveries to be made (containing goods from
several shippers).
21

22. © GS1 2016
Cargo from different shippers consolidated in urban distribution hub
Applied to Urban Transport
22
Supplier
Customers
Urban
Distribution
Hub
Consolidation
Hub
Long-
distance
haulage
Supplier
Consolidation
Hub
Supplier
Consolidation
Hub

23. © GS1 2016
Other Application Areas
• Air and Ocean Consolidation and Deconsolidation Terminals.
• Mode change locations.
• Enabling Tracking & Tracing and Control at box / product level.
• Dynamic routing of Logistic Units through the networks.
23

24. © GS1 2016
Questions
Thank You for your attention
24

25. © GS1 2016
Jaco Voorspuij
Senior Manager Transport & Logistics
25
Jaco.Voorspuij@gs1.org
+32 2 788 788 5
+32 497 58 79 86
GS1 Global Office