Jaco Voorspuij, Senior manager Transport & Logistics, GS1 global office
Mix Move MatchEliminating waste in the supply chainIncreasing utilisation by enabling collaboration through standardisation.
15 March 2016
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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
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GS1 standards are used every day, everywhere
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by big retailers
by small shops
by world-famous brands
by Logistics
and many more…
in over 1 millionorganisations
in close to 150 countries
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Rich set of standards
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Key Benefits
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Efficiency Safety Collaboration Sustainability
GS1 standards
drive supply chain
efficiency
Source: IBM/Consumer Goods Forum Global Scorecard
© 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?
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Reduce structural waste in SC
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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
So
urc
e: w
ww
.co
3-p
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ct.e
u
Wasted Space in transport logistics circaEUR 100 – 300 billion per annum.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
kms run empty
kms run loaded
© GS1 2016
Main ways to attack structural waste
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§ 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
© 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?
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© GS1 2016
Mix Move Match – The Challenge
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BEFORE
AFTERBuild Customer Pallets as
close as possible to Delivery
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Mix-Move-Match - The Concept
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§ 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
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Why are Reconstruction Hubs different from traditional cross-docks?
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Input
InboundValidation
Order/ProductReconstruction
OutboundValidation
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
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M3 - closes the gapWMS and TMS leave in the SC
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ProductionplantC
ProductionplantD
CentralDC
X-Docks
Customer
x-DockOverviewChartv03.vsd/29.10.2013
ERP
CustomerUser
M3DSCCustomer
DataflowProductflow
TMS
WMS
X-Docks
Customer Customer Customer Customer Customer
ProductionplantA
ProductionplantB
X-DocksX-DocksX-Docks
DCDC
© 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?
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© 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 .
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Applying Open Standard identifiersand 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.
© 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.
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GS1 standards in Mix Move Match
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Operations / Integration Overview
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3M SIS
M3Mix Move
Match
Conveyor(if used)
CarriersInternal
& External
HUBTMS
Truck InfoX trucks => Y Wave
Sorting Spur
Scanned SSCC
Operator in HUB
PrintLabels
M3 Complete Consignment (TI) GINC, Volume, Weight, # Parcels,
Assigned Carrier, # Labels
GS1 TransportInstructions 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
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§ 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.üWith 3M 50% fewer trucks long haul and 30-35% Total Logistics Costs reduction.
üMuch reduced Green House Gas emissions.
THE PRIZE is GREATOptimised fill rates on Transport
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Mix Move Match Delivers
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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?
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© 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).
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Cargo from different shippers consolidated in urban distribution hub
Applied to Urban Transport
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Supplier
Customers
Urban Distribution
Hub
Consolidation Hub
Long-distance haulage
Supplier
Consolidation Hub
Supplier
Consolidation Hub
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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.
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Additional info
• Watch the Mix Move Match video• https://www.youtube.com/watch?v=nxAkfTsAM9k
• www.gs1.org
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Questions
Thank You for your attention
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Jaco VoorspuijSenior Manager Transport & Logistics
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+32 2 788 788 5+32 497 58 79 86
GS1 Global Office
