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www.i-cargo.eu
Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations
Assessment methodology
---iCargo Training Series
Webinar18.02.2015
www.i-cargo.eu
Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations
iCargo is a large-scale integrating project co-funded by the European Commission within the FP7
Information and Communication Technologies Work Programme. iCargo involves representatives of
the main stakeholders in the areas of research and technological development, logistics companies,
shippers and public authorities. The 29 partners coming from 13 countries are coordinated by the
Research and Innovation Hub of ATOS Spain.
iCargo will design and implement a decentralized ICT infrastructure allowing real world objects, new
planning services including CO2 calculation capabilities and existing systems to co-exist and
efficiently co-operate at an affordable cost for logistics stakeholders.
The iCargo project aims at supporting new logistics services that:
₋ Synchronize vehicle movements and logistics operations across various modes and actors to
lower CO2 emissions
₋ Adapt to changing conditions through dynamic planning methods involving intelligent cargo,
vehicle and infrastructure systems and
₋ Combine services, resources and information from different stakeholders, taking part in an open
freight management ecosystem.
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
iCargo Training Course C1.4
Assessment methodology
Valentina Boschian – Bluegreen Strategy srl
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• The iCargo assessment methodology
– Importance
– Goals
– Expected outputs
• iCargo Assessment approach
– Operative steps of the approach
– Iterative approach
• iCargo Business Cases
– Process steps and KPIs definition
Agenda4
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• The iCargo assessment methodology
– Importance
– Goals
– Expected outputs
• iCargo Assessment approach
– Operative steps of the approach
– Iterative approach
• iCargo Business Cases
– Process steps and KPIs definition
Agenda5
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
The importance of a good assessment approach
• The assessment methodology focuses on the evaluation of the project results from the qualitative and above all from the quantitative point of view.
• A performance measure is a set of metrics used to quantify the efficiency and/or effectiveness of an action.
• Increased interest in performance measurement: – ever changing and ever increasing demands of customers,
– the moving focus from internal operations to a chain of collaborating companies,
– increased amount of data (not necessarily data quality),
– growing number of options a company can choose from.
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
1. To validate the iCargo solutions and to assess the
impact of such solutions;
2. To define the strategic goals and objectives for each
of the pilots;
3. To analyse each pilot’s current situation (“as is”);
4. To analyse each pilot’s desired situation (“to be”).
Goals
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
To validate the iCargo solutions and to assess the impact of suchsolutions, by:
• expressing the strategic goals and detailed objectives eachof the iCargo pilots,
• measuring objectives’ achievement in terms of quantitativeindicators,
• describing pilot processes in “as is” and desired transition to“to be” status that meets the objectives.
Validation of iCargo solutions
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
To define the strategic goals and objectives for each of thepilots, by:
• involving the stakeholders in strategy formulationworkshops to translate the technological developments inbusiness benefits,
• formulating and structuring goals and objectives using theanalysis methodology and selected tools;
Definition of strategic goals and objectives
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
To analyse each pilot’s current situation (“as is”) in terms of:
• detailed description of the relevant business processes,
• relevant performance indicators to measure the pilot’ssuccess in relation to the pilot objectives, and currentvalues of each indicator;
Analysis of pilot’s current situation
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
To describe each pilot’s desired situation (“to be”) in terms of
• changes to be brought by iCargo in the involvedstakeholders business processes (“to be”), by comparisonwith the current situation,
• target values of the relevant performance indicators, i.e.,performances improvements expected in the “to be”situation.
Analysis of pilot’s desired situation
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Main purposes of the validation strategy:
1. to check and control if the planned outputs of the project business cases are achieved;
1. to facilitate communication and information exchange inside the iCargo project;
1. the assessment results should motivate the pilot users and other potential users to apply iCargo results.
Expected outputs
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• The iCargo assessment methodology
– Importance
– Goals
– Expected outputs
• iCargo Assessment approach
– Operative steps of the approach
– Iterative approach
• iCargo Business Cases
– Process steps and KPIs definition
Agenda13
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
APPROACH:
• Analysis and collection of the most commonly used KPIs (from state-of-the-art analysis) to assess the
- logistic
- environmental
- financial
performances;
• iCargo validation approach:
- Step 1: definition of the pilot main objective and goals;
- Step 2: identification of the expected benefits and aspects to bemonitored for each process step;
- Step 3: association of the KPIs to the aspects to be monitored:common KPIs and specific pilot KPIs.
Proposed approach
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Initial operative steps
Step1
Step2
Pilotobjec ve
Pilotgoal1
Pilotgoal2
Pilotgoal3
BC1 BC2 BC3a
…
Organiza onalChangesTransi onRequirements
KPIs(logis cs,
environmental,financial)
BC3b
Step3
Aspectstobemonitored
ExpectedbenefitsBC1 BC2 BC3a BC3b
BC1 BC2 BC3a BC3b
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Step 1: Objective and goals definition
• Identification and definition of the main objective and goals of each iCargo business case in order to find out the main aspects to be taken onto account in the evaluation process.
• For each business case, the following are aspects are defined:
– the objective that is mainly a statement aiming at summarizing the main focus of the business case,
– the goals related to this objective that detail the main aspects that characterize the pilot case and represent its distinctive and added-value elements.
Step 1
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Step 2: Process steps and expected benefits
• Benefits related to the process steps of "as is” and "to be” from:
• the qualitative point of view: expected benefits in terms of mainfeatures and barriers related to the specific process step of eachpilot case;
• the quantitative point of view: by indicating the most appropriateKPI/s associated to the different process steps.
Inputs:
– user requirements,
– relationships between the user requirements, the use case andthe process steps.
The KPIs associated to the aspects to be monitored are selectedfrom the general overview of the metrics.
Step 2
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Step 3: Definition of the metrics
On the basis of the results of the two previous steps, to find out which KPIs are possible to apply to measure the impact of iCargo in terms of:
• common metrics cross-pilot defined,
• specific metrics related to specific issues of the single business case.
Step 3
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Example
Aspects to be monitored
KPILogistics Environmental Financial
Business Case 1
Process Step 1.1
…
load optimization
Load Factor (weight)Load Factor (volume)
…
Via hyperlink direct connection to the KPI/s defined in the state-of-the-art KPIs
list
KPI name Description CalculationMeasurement
unitSource/additional
comments
10Load factor (weight) by mode
Measures the percentage of maximum carrying weight that is used in a determined transport
Carried weight/maximum weight
%
11Load factor (volume) by mode
Measures the percentage of maximum carrying weight that is used in a determined transport
Carried volume/maximum volume
%
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
It includes three main phases:
1. Implementation,
2. Assessment of changes and transition requirements,
3. Real-life tests to estimate improvements and negative impacts.
iCargo iterative approach
Added value: incremental and iterative validation approach where each increment concerns one specific Process Step of the Business Cases.
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• The iCargo assessment methodology
– Importance
– Goals
– Expected outputs
• iCargo Assessment approach
– Operative steps of the approach
– Iterative approach
• iCargo Business Cases
– Process steps and KPIs definition
Agenda21
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
SCAR Business Case
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Green Corridor Business case
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
LSP-Shipper cooperation (DHL) Business case
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
LSP-Shipper cooperation (Unilever) Business case
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Conclusions and next stepsAnalyseKPIsfromthestate-of-the-art
Definetheaspectstobemonitored
SelectandassociateKPIstotheaspectstomemonitored
Objec veandgoalsdefini onstuning
Definetheobjec veandgoals
Step1
Step2
D7.3
D7.4
Incrementalanditera vevalida on
Exploittheresults
Step3
Iden fytheexpectedbenefits
Iden fytheorganiza onalchanges
andtransi onrequirements
Selec onoftheaspectstobemonitored
Datacollec on:currentvaluesand
sources
Providees ma onfortargetvalues
Selec onoftheKPIs
Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Valentina Boschian
Bluegreen Strategy srl
Thank You
27
iCargo Training - 18 November 2014
www.i-cargo.eu
Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations
Credits:
Presented by: Valentina Boschian, Bluegreen Strategy srlvalentina.boschian@bluegreenstrategy.com
Material: Valentina Boschian