Agf companies can increase their efficiency for pallet spacing, refrigerated transport and volumes, among other things, with better chain exchange of logistics data. This marks the launch of project Smart Logistics in the Foodhub Rotterdam region.
When the chain starts sharing the data of logistics flows, this will increase efficiency and improve the earning power of fruit and vegetable companies in the Rotterdam region. Moreover, this transparent approach makes a positive contribution to the image of the Rotterdam region as a logistics service provider and food supplier.
A large share, some 44 per cent, of pallet space in conditioned road transport remains unused, research shows. If so, better utilisation of that cargo space provides retailers and traders with financial benefits and improves the competitive position of the Rotterdam region. Moreover, more efficiency relieves pressure on roads, raises the sustainability profile and reduces CO2 emissions.
That is the approach of the Smart Logistics project launched as part of the Road Map Next Economy and the World Food Park innovation programme. The project, which runs until 2020 and is now being further prepared, started with a pilot in the middle of last year. "We first calculate the gains to be made based on past data. Four companies, The Greenery, ABC Logistics, Snijpunt and Verstegen, provided us with data from their logistics flows," explains Ymke Elfring of the Rotterdam municipality.
"These companies recognise and acknowledge the need to organise logistics smarter and more efficiently. By combining loads, the companies can individually save costs. As a collective, they strengthen the regional business climate and contribute to sustainability goals."
Profit with data sharing
"Based on this data, we are currently calculating the shared gains to be made when these companies combine their loads and thus use their logistics more efficiently. When we have the final results available, we expect to bring other companies to the table as well to create more mass. In addition, we are involving other stakeholders such as industry associations and governments to be able to put smart logistics into practice soon," Ymke Elfring expects.
What savings do participants expect? Elfring: "At the moment, the efficiency benefit is being calculated through simulation. This also shows an indication of cost savings. We cannot yet make any concrete statements about the outcome, but savings are particularly expected in logistics costs, personnel, waiting times at the dock and in computerised administration."
The project does not only examine data exchange of companies in the chain. "In addition, we also look at whether optimisation is possible in their own data. We offer this as an extra service," says Sharon Janmaat, project manager at Rotterdam Food Cluster.
The companies are interested in making their logistics more efficient because of cost savings, but mainly as a service to their customers. After all, transport costs are passed on to customers.
Sustainability is a third factor in making logistics flows more efficient. Companies want to emit as little CO2 as possible. Customers are increasingly demanding the sustainability profile of their suppliers. Besides organising their own organisation efficiently within the region, other ideas are emerging, such as organising certain regions in the Netherlands and Europe more efficiently.
