As part of the EU-Horizon 2020-Project NexTrust combined the transport of returnable loading equipment and finished goods to drive down CO2 emissions
The collaboration between pooling service providers, shippers, freight forwarder and retailers achieved savings in empty miles by up to 25 percent
Comprehensive whitepaper explains the pilot set-up
Cologne, 7th August 2018. The goal of the EU-funded NexTrust project is to improve the environment through more sustainable methods of transport. The idea behind it: vertical and antitrust-compliant horizontal collaboration networks between shippers, retailers and freight forwarders. How this works and how savings potential can be raised for the environment and costs is shown in around 40 pilot projects differentiated in four categories.
GS1 Germany included Chep and Pooling Partners as further players and asked the question with its partners’ dm-drogerie markt, Edeka, Henkel, Mars and Rigterink: How can empty miles be avoided in the supply and disposal of pallets? The reflection of the as-is situation showed that there is no coordination between requesting a pallet pick-up and scheduling a delivery of finished goods: The pooling service provider delivers returnable loading equipment to the supplier. After unloading at the supplier, trucks leave empty to go to another pick-up-location. After the freight forwarder has unloaded the finished goods at the retailer’s distribution centre, he leaves empty to go to another pick-up-destination. Pooling service providers arrive from another destination empty to the ramp and pick up empty pallets from the retail distribution centres. If trucks only unload the assets at the service point, they leave empty to go to another pick-up-destination. The result: empty miles, which unnecessarily cause greenhouse gas emissions, waste freight capacity and burden the roads. If you look at the many transport routes, you find the best conditions for round trips in the opposite directions.
NexTrust pilot shows: 30 tons less greenhouse gases per year are feasible
With the combination of finished goods and returnable loading equipment processes as well as the collaboration of manufacturers, retailers, freight forwarders and pooling service
providers, synergies can be achieved – prerequisite: a perfect collaboration set-up and a common understanding. Moreover, this is what the NexTrust business model is about: the neutral third party, so-called trustees, who create legally compliant and antitrust-compliant framework conditions for the project partners. Together with legal advisors, the trustees are in the middle and determine which information is economically sensitive and should not be exchanged between the partners or which is not critical and can be communicated by the partners. In the 6-week pilot GS1 Germany took over this role and ensured antitrust compliance, analysed the data of the transports of all partners and coordinated the flow of information between the companies involved.
After the pilot was completed, the partners were satisfied with the great potential. This includes, for example, a better utilization of transport capacities, fewer ramp contacts at retail and industrial warehouses, a long-term reduction of administrative expenses and advantages in the procurement of logistics services through bundling effects. Last but not least, 25 percent of empty miles and thus about 30 tons of CO2 emissions per year could be saved. The calculation is based on 130,000 kilometers on average per truck with an average transport route length of 300 kilometers, a fuel consumption of 30 liters per 100 kilometers and a greenhouse gas emission of 95 kilograms per 100 kilometers. The greenhouse gas reduction was calculated according to the EN 16258 standard.
Find out more information as well as the download of the white paper under www.nextrust-palletpilot.eu
This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 635874
Sandra Wagner, Head of Press and Media Relations, GS1 Germany
Steve Rinsler, Director Bisham Consulting/ELUPEG
NexTrust (www.nextrust-project.eu) is funded by Horizon 2020 and is administrated by the EC’s Innovation and Networks Executive Agency (INEA). The project duration is 42 months. NexTrust’s objective is to increase efficiency and sustainability in logistics by developing a flexible innovative business model with interconnected, trusted, collaborative networks along the entire supply chain. The pilot cases cover a broad cross section of the entire supply chain (from raw materials to finished goods to retail inbound and to end consumers) for multiple industries. NexTrust expects its pilot cases to reduce 40 percent of lorries, 15 percent of delivery vehicles, 70 percent of greenhouse gas emissions and increase load factors by 50 percent.
The full consortium comprises: 2degrees, Alpega, Arcese, Beiersdorf, BLUEWAVE, Borealis L.A.T, Colruyt Group, CRITT Transport et logistique, Delhaize Le Lion/De Leeuw, ELUPEG, EVO Dutch Shippers Council, Fiege Logistik, Giventis International, Greenyard Foods GS1 Belgium & Luxembourg, GS1 Germany, GS1 Switzerland, Kimberly Clark, Kneppelhout Korthals Lawyers, Mondelez, Norwegian Logistics, Panasonic Europe, Pastu Consult, Scala, TRI-VIZOR, TX Logistik (Co-ordinator), Unilever, Vlerick Business School, VU University Amsterdam, Wenzel Logistics, , YSCO.
Disclaimer: This publication has been produced with the financial support of European Union’s Horizon 2020 research and innovation programme. The contents of this publication are the sole responsibility of authors and can in no way be taken to reflect the views of the European Commission.