DLK09 D1 Presentation Barbarino VFm

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Logistics for Sustainable Growth:
Efficiency & Collaboration
Sergio Barbarino
P&G Principal Engineer, R&D Supply Network Innovation Center, Brussels
EIRAC, TASK Force Chairman
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Three billion times a day, P&G brands touch
the lives of people around the world
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P&G Logistics Operations Western Europe
> 50 distribution centres
> 200 million vkm/year
> 70 million liters diesel/year
> 90% by road in 2007
Sustainability in Purpose and Values
P&G Purpose:
We provide branded products and services of
superior quality and value that improve the lives of
the world’s consumers, now and for generations to
come.
Principle:
We incorporate sustainability into our products,
packaging and operations.
William
Procter
Candle
Maker
James
Gamble
Soap
Maker
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P&G Defines Sustainability Broadly
Sustainability
… better quality of life for
everyone, now and for
generations to come
Social
Responsibility
Environmental
Responsibility
2012 Sustainability Strategies
Products
Operations
Social
Responsibility
Employees
Stakeholders
2012 Strategies
June Strategy
2009 Report Card
2012 Goal
$20 Billion
Progress
$13.1 Billion
Products
Operations
10% reduction
(per unit production) in:
- Energy consumption
- CO2 emissions
- Disposed solid waste
- Water consumption
Total reductions over the decade
of at least 40%
Live, Learn and Thrive
250MM Children
Social
Responsibility
Prevent 80 million days of disease and
save 10,000 lives by delivering 2 billion
liters of clean water in our Children’s
Safe Drinking Water program
SINCE
Energy
CO2 emissions
Solid waste
Water
2007
-11%
-10%
-30%
-13%
135 MM Children
39 MM Days
>5200 Lives
930 MM Liters
2002
-48%
-52%
-53%
-53%
2012 Strategies
2009 REVISED GOALS
PREVIOUS GOAL
REVISED GOAL
Strategy 1
Products
Cumulative sales of sustainable
innovation products
$20 billion
$50 billion
10%
20%
250 million
300 million
2 billion
3 billion
Strategy 2
Operations
Reduction (per unit production)
Strategy 3
Social Responsibility
Number of children reached
Liters of clean water delivered
Sustainable Innovation is about
considering the full life cycle
Minimize INPUT, Maximize OUTPUT yield
• 96% of all materials
converted to finished
product
• Over half of the
leftover waste is
repurposed
Sustainable Network Design & Transport
Cutting “consumer invisible cost”
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Logistics burden = Volume shipped X KM travelled X “Cost” of 1 Km
COMPACTION
SHORTER
SUPPLY CHAIN
EFFICIENCY
“Multidisciplinary team: PS / R&D
“fighting water and air”
LOADBUILDER
“produce closer to
the consumer”
“weed out
the wastes & seek
future opportunities”
The C&D-way: with expertise from inside and outside
SIMPLE FORMULA CAN ALSO GUIDE SUSTAINABILITY MEASURES
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Product compaction in Europe
1990s
Early
2000s
2008
Less volume shipped - Same value
Network design:
co-locating customization
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EUSKIRCHEN CUSTOMIZATION CENTRE
>1MM truck km‘s/year saved through centralised operation
Less km traveled
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Efficiency:
Less km’s by “smarter” vehicles
Double Deck
Combi trailer
Road transport is often the only alternative.
EcoEco-Combi
Efficiency:
Less km’s by smarter vehicle fill
Adjust pallet height to
doubledouble-stack
Optimal cube fill
eliminate air/wood
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Heavy & Light Synergies
Collaborate to maximize cube and weight fill in different ways
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Efficiency:
Project TINA
Aim:
Rail from 10%
Lyon
to 30% by 2015.
2015.
Sustainability in logistics:
without tradetrade-offs
Cost – get the value equation right for
customers and consumers
Service – in full and on-time
Reliability – in full - on-time – every time.
Is cost saving
sustainability?
a
hidden
driver
of
Progress to date
Spain/UK – July 2008
•Belgium
Belgium UK
•North
NorthNorth-Europe Spain
Italy/Greece – June 2009
Nordic Domestic–
Domestic– JAS 2009
•Customer
Customer Deliveries in
Sweden
Lyon
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What will it take to be successful
in intermodal transport?
Close collaboration:
Shipper / container operators / transport
providers
Collaboration with other shippers
Scale / cost sharing
Right infrastructure and operations
World Economic Forum
Supply Chain study (Feb 09)
•24% of freight vehicles in the EU run empty
•Average loading of the rest is only 57%
•Overall
Overall efficiency: 43%!!! Est. Recoverable Loss for EU 27:
• Euro 22 Billions,
• 1.2% of CO2e emissions
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PROJECT
Collaboration Concepts for
Comodality
From CO2 to CO3
THANK YOU!