Month: June 2019

Blockchain – all hype or something you should be thinking seriously about? Container logistics specialist Container xChange carried out an interview with the Boston Consulting Group’s Camille Eglof:

“This would be the biggest innovation in the industry since containerisation!” says Bloomberg. And Wartsila adds that Blockchain is the “next big revolution in shipping”. Blockchain is a hype and you probably have already heard about countless benefits and examples of how the technology will disrupt logistics. However, “the best networks are often the hardest to create” says Camille Egloff, the Boston Consulting Group’s Global Head of T&L. Her newest report Resolving the Blockchain Paradox in Transport and Logistics points to the fact that 88% of the people who responded to her survey say that blockchain will disrupt the industry, yet nearly three-quarters (74%) say that they’re exploring opportunities only superficially or haven’t thought about blockchain at all. Why is that so? We interviewed Camille and discussed different strategies that you can use to benefit from such technology-based networks without investing too much time and money.

Blockchain seems to be far away for most SMEs – especially given the “blockchain paradox” that you outlined in your recent BCG study. What first steps do companies need to take to get ready for blockchain?

In our view, the benefits of being among the first to join these collaborative efforts far outweigh any advantages of a cautious approach. First movers can both influence the development of standards and ensure that the solutions they would like to apply in their own operations are among those widely adopted among the value chain. Late movers risk finding themselves shut out – particularly if competitors are already participating.
A good way to start is to make sure your own data and systems are consistent and up-to-date. Learn about the technology, obtain a deep understanding of the limitations and identify current pain points. Before launching blockchain at scale, a company should conduct proof-of-concept tests to check viability of potential applications. Create APIs (Application Programming Interface) that allow you to share your data with different platforms! For those proofs of concept, the company should then design plans to implement at scale and commercialize in stages.

How can T&L overcome fragmentation and create data standards, especially when some companies benefit from the lack of transparency?

Overcoming fragmentation is not all in or nothing! It’s everyone’s own decision to think about what data is really crucial as a competitive advantage or differentiator and what is not and could potentially be shared. For starters, we expect the emergence of consortia with shared interests that start to create (semi-) public data pools. Moreover, 3rd party platforms that act as “connectors” in the industry will play an increasingly important role by transforming different data standards into one “format”. For industry participants, it will require a certain level of commitment to test a new platform though. I can only advise to be open for some level of data sharing, sign up for a short-term contract and optimize the way you use the platform over time. Start with a limited data pool only and then increase collaboration via APIs—for example when you’re fully convinced by the services the platform offers.

You mention that traditional technologies are still the right choice for transactions and processes that involve a small number of parties who already know each other – What are viable alternatives to create efficiency in peer-2-peer collaboration?

Although blockchain is often the best option for creating trust, traditional technologies are still the right choice for transactions and processes that involve a small number of parties who already know each other or for whom it is easy to establish a single, indisputable source of truth. There are two viable blockchain alternatives to foster peer-2-peer collaboration in logistics: Firstly, you can always set-up bilateral APIs if you already know your partner very well and just want to improve efficiency in collaboration. And secondly, in cases where bilateral trust is not there yet, companies can join neutral platforms or clearing-houses that are operated by a trusted 3rd party. These platforms can then make sure that transactions are secured, and network members can trust each other. Moreover, they can also improve efficiencies through paperless document transfer or easy to use payment handling even without educating yourself on the underlying technology itself.

An example for such a platform is Container xChange which was created out of BCG a few years ago. The neutral online platform creates transparency in container logistics and connects you to more than 300 container users and owners with only a few clicks. Even if you’re not 100% sure about what data you want to share via API, you can sign-up for their platform and find new one-way partners or use their comprehensive container tracking system. And thinking about the workload of your own IT-teams: Another benefit of such a platform is that it helps to avoid creating APIs for every single company your work with—the number of interfaces you need to create is limited to 1.

Companies are concerned to join such platforms or blockchain networks when they’re owned by one of their competitors. Who could own such a network to mitigate mistrust?

With BCG we see two potential ownership structures in order to establish a network with a high level of trust. A peer-2-peer collaboration network could be owned by either a large industry consortium or by a neutral tech-based company with no own interests in logistics. While it is certainly complicated and time consuming to bring a larger group of companies involved in container logistics together, there are some existing examples such as INTTRA in its early days.

Today, some companies and small consortia are trying to gain traction—such as IBM/Maersk—but they are struggling as companies do not want to give their data away to a competitor. A tech player or a completely neutral platform with no own interests in shipping could solve the problem. Again, xChange comes as a handy example by providing a completely neutral platform without any industry investment. More than 300 companies use the platform already and its processes and technologies make sure that members can trust each other.

How can companies identify the one platform that really helps them get ahead?

As BCGs analysis indicates, most industry participants have not taken a deep look at blockchain’s potential applications. Our analysis of the opportunities makes clear that companies should be investing time and effort in order to take advantage of the benefits that those technologies promise. To get started, companies need to map out processes and pain points within their organization to understand what they really need. Examples could be a difficulty to balance out liquidity for containers in specific locations, time consuming and paper-based processes or something completely different. Once you have identified your paint points, scout the market and identify SaaS offerings that could solve the biggest issues first. Oftentimes there is no such thing as the one and only platform that covers all of your needs—but many platforms allow for “bundling” and connections via API. In the end it is an investment! It takes time to find the right solutions and test different tools or platforms in the beginning, but it helps you save huge amount of time and costs once you figured out how to use a specific platform properly.

For the 7th consecutive year, GEFCO, a world leader in complex supply-chain solutions and European leader in automotive logistics, has confirmed its commitment to CSR initiatives.

In 2018, the Group continued improving its sustainable development performance while applying innovative approaches to find ever more effective and environmentally friendly solutions.

A strengthened CSR framework

Since signing the United Nations Global Compact in 2009, GEFCO has promoted the development of environmentally friendly technologies and ensured the protection of human and labour rights in the fight against corruption. Its ethical code guarantees that all employees comply with these guidelines, while an Ethics Committee ensures that they are properly monitored and implemented on a daily basis.

In continuing to accelerate its sophistication and understanding, GEFCO undertook a major piece of long-term risk analysis exploring CSR issues from both its own perspective and that of all external stakeholders. The resulting insight forms the basis for approaching and prioritising risks, and better structuring the company’s approach to CSR challenges. With a holistic and quantified view of risk, GEFCO is able to ensure sufficiently robust policies are in place to address each challenge and keep track of progress in a meaningful way.

Stéphane Milhet, Executive Vice President Human Resources and CSR at GEFCO: “As an organisation, GEFCO’s choices and actions have a profound impact on our partners, our employees, and on the environment. We can help shape territories, strengthen local economies, and make a positive difference throughout the world”.

An improved environmental performance

• Optimised, cleaner and increasingly connected transport

For the second consecutive year, GEFCO achieved a 2% avoidance of carbon emissions relating to transport thanks to specific actions undertaken in 2018. This figure is in line with the objectives set and made possible by optimising transport flows, improving the vehicle fleet and promoting multimodal solutions that offer concrete alternatives to road transport. Innovation is also a key driver with new technologies. Other innovative solutions are also being studied, such as the electrification of vehicles and connected transport. In Spain and Czech Republic, GEFCO has started implementing services using double-trailer trucks with lengths between 25 and 30 metres, which increase loading capacity and productivity, limiting the number of trucks on the road and CO2 emissions.

• Energy-efficient operations

With 300 sites around the world, GEFCO ensures that impact on the environment and neighbours is minimised with ambitious targets for reducing energy consumption and landfill use, while increasing recycling and energy recovery. In 2018, 69% of the Group’s waste was recovered or recycled and 59 of its business lines had achieved ISO 14001 certification.

• A CSR performance certified by EcoVadis and CDP

In 2018, GEFCO was certified Gold by EcoVadis. This certification reflects an advanced level of performance in the four areas monitored by EcoVadis: environmental impact management, HR practices, ethics and professional conduct and purchasing policy. In 2018, GEFCO scored two more points than in 2016, reaching a score of 64 out of 100. The Group is once again among the top 5% of companies in terms of CSR, out of the 30,000 evaluated by EcoVadis worldwide.

GEFCO also obtained a “B” on the CDP (formerly Carbon Disclosure Project) questionnaire on climate change. CDP manages the global information disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts. The organisation gives ratings from A to D. With this rating, GEFCO ranks above the sector average.

• A partnership CSR approach

GEFCO works daily with its partners, customers and stakeholders to achieve the highest standards of responsibility, true to its “Partners, unlimited” culture. At the end of 2018, 1,478 road transport providers had signed the GEFCO’s Responsible Purchasing Charter (RPC), representing 76% of regular route spending.

Innovation, a shared value

GEFCO operates in a rapidly changing environment, with new technologies transforming both production processes and consumer trends. Turning these challenges into opportunities demands an innovative approach, and GEFCO has worked hard to place innovation at the core of the company’s strategy, fostering it at every level of the organisation. Its objective is to lead the future of the supply chain through high value-added, efficient and sustainable solutions for customers.

In 2018, the Group launched the GEFCO Innovation Factory, empowering every employee to invent and explore innovative ideas, with the potential of developing them into solutions to support business growth. At the same time, GEFCO has partnered with Techstars, a global start-up accelerator which gives the Group access to a unique innovation ecosystem and a number of innovative and sustainable solution opportunities.

The GEFCO CSR Report 2018 is available here: https://www.gefco.net/en/about-us/csr/

Victa Railfreight, a well-established award-winning provider of rail-based training courses, is launching a new programme to coincide with Multimodal 2019.

Victa’s Railfreight Development Courses will take delegates through the principles of transporting freight by rail in the UK, moving into operations, regulatory and infrastructure matters and logistics. The courses will include visits to ports, yards and terminals to help delegates understand the potential for rail freight within the current transport infrastructure set-up, providing the knowledge that will allow decision makers to make informed choices regarding the movement of bulk freight. The courses are four, day-long sessions over 13 weeks, which can be bespoke for a specific organisation or open courses for anyone interested in the development and growth of rail freight in the UK.

Neil Sime, Managing Director of Victa Railfreight said: “We have long believed that one of the key barriers to the development of rail freight as a viable logistical solution is a lack of knowledge of the sector’s potential. Our Railfreight Development Courses have been designed to correct that situation.”

For more information and how to book a course email: enquiries@victa-railfreight.com.

In addition to these courses Victa offers a range of operational support services, including training and assessment, management services and advice.

See Victa at Multimodal, Birmingham (June 18-20), on Stand 4074.