Improving*HEINEKEN’s*export'
transport(modality!choices!
Creating)insight)and)continuity)in)the)transport)modality)
decision4making)process)
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2014.TIL.7929+ Roald!van!Blijenburgh!–!1363409! ! Supervising+professor:+ Prof.!dr.!ir.!Gabriël!Lodewijks! ! Daily+supervisors:+ Dr.!ir.!Francesco!Corman! Dr.!ir.!John!Baggen! Msc.!Johan!van!de!Bor! ! !List of abbreviations
AGV:! Automated!Guided!Vehicle! AHP:! Analytical!Hierarchy!Process! ATLS:! Automatic!Truck!Loading!System! BCT:! Bossche!Container!Terminal! CBA:! CostRBenefit!Analysis! CI:! Consistency!Index!(Saaty, 1987)! CM:! Contract!Manager! CO2:! Carbon!Dioxide! CR:! Consistency!Ratio!(Saaty, 1987)! CSE:! Customer!Service!Export,!part!of!CS&L! CS&L:! Customer!Service!and!Logistics,!part!of!HNS! Distri:! Distributor,!a!market!that!is!not!part!of!HNV! FLT:! Forklift!truck! HBBV:! Heineken!Brouwerijen!BV! HGP:! HEINEKEN!Global!Procurement! HNS:! HEINEKEN!Nederland!Supply;!the!breweries!of!Zoeterwoude,!Den!Bosch!and!Wijlre! HNV:! HEINEKEN!NV! IF:! In!Full! MCA:! Multi!Criteria!Analysis! MDM:! Market!Demand!Man!agement,!part!of!CS&L!MSO:! Marketing! and! Sales! Organisation,! a! market! that! is! part! of! HNV! (by! some! referred! to! as! OPCO)! MTO:! MakeRToROrder! MTS:! MakeRToRStock! OPCO:! Operating!Company;!HEINEKEN!breweries/demand!points! OS:! Operations!Scheduling! OT:! On!Time! OTIF:! On!Time!and!In!Full! PA:! Product!Availability:!has!the!product!been!produced!so!that!it!can!be!shipped! PCO:! Perfect!Customer!Order:!on!time,!in!full,!product!availability! Repl.:! Replenishment! RI:! Random!Index!(Saaty, 1987)! SC:! Stacking!Crane! SP:! Service!Provider,!a!shipping!company! TP:! Transfer!Price! ! !
Preamble
This! report! is! the! result! of! my! graduation! internship! facilitated! by! HEINEKEN! Nederland! Supply! in! Zoeterwoude.! ! I!would!like!to!thank!Maarten!van!Veluw!and!Johan!van!de!Bor!for!facilitating!the!chance!to!do!my! graduation!research!at!HEINEKEN!Nederland!Supply.!Furthermore,!I!would!like!to!thank!Maarten!and! Johan!for!their!support!and!coaching!during!the!whole!period!of!the!internship.! ! From!the!TU!Delft!I!would!like!to!thank!the!people!of!my!graduation!committee:!Gabriël!Lodewijks,! Francesco!Corman!and!John!Baggen.!Thank!you,!Gabriël,!Francesco!and!John,!for!your!support!and! coaching.!I!really!appreciate!the!fact!that!I!could!meet!with!Francesco!and!John!together!on!a!regular! basis!and!even!outside!regular!working!hours.! ! Lastly,!I!would!like!to!thank!my!family!and!close!friends,!who!have!been!of!support!during!the!entire! graduation!period.! ! ! Roald!van!Blijenburgh,!Delft! February!2015! !
!
Summary
This!research!focuses!on!improving!the!transport!modality!decisionRmaking!process!of!HEINEKEN!NV.! More! specifically,! this! research! focuses! on! optimizing! the! transport! from! HEINEKEN! Nederland! Supply!to!European!markets!from!the!perspective!of!HEINEKEN!NV.!
!
A! large! part! of! the! export! transport! from! HEINEKEN! Nederland! Supply! to! European! markets! is! organised! by! truck! transport,! while! often! intermodal! transport! is! possible,! more! environmental! friendly! and! economically! feasible.! This! observation! was! the! incentive! to! start! this! research.! Investigating!the!current!transport!situation!led!to!the!following!problem!statement:!
!
The$current$mode$choice$in$transport$from$HNS$to$markets$within$Europe$is$made$with$a$strong$focus$ on$ costs.$ Other$ criteria$ are$ evaluated$ during$ the$ decision=making$ process,$ but$ only$ on$ basis$ of$ experience$and$with$limited$information$about$their$consequences$in$the$overall$distribution$process.$
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During! this! research! many! affected! and! involved! stakeholders! were! interviewed.! These! interviews! provided!detailed!information!about!the!current!decisionRmaking!process,!logistical!consequences!of! modality! choices! and! important! transportRrelated! criteria.! The! detailed! description! of! the! current! transportRdecision!making!process!has!been!analysed!and!a!preferred!future!situation!was!proposed! that!is!in!line!with!the!objective!of!this!research:!
!
Improve$ the$ decision=making$ process$ regarding$ export$ transport$ from$ HNS$ to$ European$ markets.$ Ensuring$ continuity$ and$ transparency$ in$ the$ decision=making$ process$ by$ the$ establishment$ of$ a$ quantified$ and$ presentable$ comparison$ between$ various$ transport$ modality$ options$ and$ their$ logistical$consequences$in$the$warehouses$of$HNS.$
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The!preferred!future!situation!includes!all!stakeholders!of!the!current!situation.!The!decisionRmaking! is! performed! by! the! same! persons.! However,! the! decision! makers! are! supported! by! a! developed! decisionRsupport! tool.! This! decisionRsupport! tool! has! been! developed! for! HEINEKEN! in! Excel! Visual! Basic.! The! tool! plots! the! performance! of! available! transport! options! using! a! weighted! summation! multiRcriteria! analysis.! The! transport! options! are! compared! on! three! important! criteria:! costs,! CO2! emissions!and!transit!time.!These!are!all!quantified!criteria.!
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Costs!include!the!costs!of!transport,!but!also!include!logistical!consequences!at!the!warehouses!of! HEINEKEN! Nederland! Supply.! A! modality! choice! can! significantly! influence! the! logistical! costs,! therefore! costs! are! analysed! from! a! broader! perspective.! CO2! emissions! are! related! to! transport! modality!and!transport!route.!HEINEKEN!wants!to!reduce!CO2!emissions!and!this!can!be!achieved!by! optimizing! transport! choices.! A! low! transit! time! is! important! to! ensure! the! freshness! of! the! beer.! Furthermore,!a!low!transit!time!is!favourable!when!unRforecasted!peaks!in!consumption!cause!high! demand!peaks.! ! The!interviewed!stakeholders!have!given!their!opinion!about!the!importance!of!these!criteria!using! the!Analytic!Hierarchy!Process.!(Saaty, 1987)!The!weights!that!apply!to!the!criteria!were!derived!from! the!input!of!all!stakeholders.!With!this!method!a!HEINEKEN!NV!perspective!has!been!approached.! !
The! objective! of! this! research! was! reached! through! the! development! of! a! weighted! summation! multiRcriteria!analysis!decision!support!tool.!The!decision!support!tool!delivers!a!quick!overview!of! the! performance! of! transport! options! on! important! criteria.! Hence,! opportunities! are! more! easily! identified! and! decisions! are! based! on! quantified! criteria.! In! this! way! continuity! is! ensured! and! transparency!is!obtained.!
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Table of Contents
List!of!abbreviations!...!2!
Preamble!...!4!
Summary!...!6!
Figure!overview!...!10!
Table!overview!...!11!
1!
Introduction!...!12!
1.1!
HEINEKEN!NV!company!description!...!12!
1.2!
Distribution!framework!request!...!13!
1.2.1!
Problem!statement!...!14!
1.2.2!
Research!Objective!...!14!
1.2.3!
Research!questions!...!15!
1.3!
Report!structure!...!15!
2!
Literature!review!...!18!
2.1!
Transport!modalities!and!their!characteristics!...!18!
2.1.1!
Transport!sustainability!...!19!
2.1.2!
Transport!reliability!...!20!
2.2!
Intermodal!transport!networks!...!21!
2.3!
DecisionRmaking!theory!...!22!
2.4!
Concluding!remarks!about!literature!...!24!
3!
HEINEKEN’s!current!transport!decisionRmaking!process!...!26!
3.1!
Concluding!remarks!on!the!transport!decisionRmaking!process!...!28!
4!
Involved!and!affected!stakeholder!analysis!...!30!
4.1!
HEINEKEN!Nederland!Supply!...!30!
4.2!
HEINEKEN!Global!Procurement!...!30!
4.3!
European!Markets!...!31!
4.4!
Important!transport!related!criteria!for!stakeholders!...!31!
4.5!
Stakeholder!analysis!conclusion!...!32!
5!
Description!of!the!endRtoRend!distribution!process!...!34!
5.1!
Logistical!process!HNS!Zoeterwoude!...!34!
5.2!
Logistical!process!HNS!Den!Bosch!...!35!
5.3!
Conventional!truck!transport!...!36!
5.4!
Container!transport!...!36!
5.5!
Transfer!price!buildRup!...!37!
5.6!
EndRtoRend!distribution!process!conclusions!...!38!
6!
Solution!methodology!...!40!
6.1
!
Description!of!“asRis”!situation!...!40!
6.2!
Description!of!“toRbe”!situation!...!41!
6.3!
Output!of!the!decision!support!tool!...!42!
6.4!
Criteria!analysis!and!weight!determination!...!43!
6.5!
Approximation!of!the!weights!from!a!HEINEKEN!NV!perspective!...!45!
6.6!
Solution!methodology!conclusions!...!46!
7!
Description!of!decision!support!tool!...!48!
7.1!
Interface!...!48!
7.1.1!
Sheet!MCA!...!48!
7.1.2!
Sheet!Tender!Data!...!49!
7.1.3!
Sheet!Filtered!Tender!Data!...!49!
7.1.4!
Sheet!Equipment!capacity!...!51!
7.1.5!
Sheet!Warehouse!costs!HNS!...!51!
7.1.6!
Sheet!Shuttle!costs!...!52!
7.1.7!
Sheet!Port!distance!...!52!
7.1.8!
Sheet!Routes!...!52!
7.2!
Output!...!52!
7.3!
Conclusions!on!the!decision!support!tool!...!53!
8!
Assessment!of!the!transport!decision!support!tool!...!54!
8.1!
Default!values!of!input!parameters!...!54!
8.2!
Variation!of!input!parameters!...!55!
8.3!
Default!results!for!Daganzo!de!Arriba!...!56!
8.3.1!
Results!from!varying!parameters!for!Daganzo!de!Arriba!...!57!
8.4!
Default!results!for!Athens!...!58!
8.4.1!
Results!from!varying!parameters!for!Athens!...!59!
8.5!
Conclusions!on!the!sensitivity!analysis!...!60!
9!
Conclusions!...!62!
10!
Recommendations!for!future!research!...!64!
Bibliography!...!66!
Appendix!Table!of!Contents!...!68!
! !Figure overview
Figure!1.1:!HEINEKEN!has!a!wide!product!portfolio!...!12! Figure!1.2:!Rich!picture,!scope!of!the!research!...!14! Figure!1.3:!Research!approach!visualized!...!16! Figure!2.1:!Energy!consumption!per!km!with!different!loading!percentages!(Rheinland-Westfälische Technische Hochschule Aachen (RWTH), 1999)!...!19! Figure!2.2:!Transportation!costs!per!TEU!for!different!transport!modalities (NEA, 2006)!...!19! Figure!2.3:!Six!transport!network!designs!(Woxenius, 2007)!...!21! Figure!2.4:!The!uncertainty!framework!(Lee, 1995)!...!22! Figure!2.5:!Translating!the!strategy!into!structure!(Groothedde, 2009)!...!23! Figure!2.6:!Kingdon's!streams!model!(Kingdon, 1995)!...!23! Figure!3.1:!Creation!of!service!specifications!...!26! Figure!3.2:!Validation!of!service!specifications!...!27! Figure!3.3:!Determine!match!between!HEINEKEN!and!shipping!companies!...!27! Figure!3.4:!List!of!unreliable!shipping!suppliers!...!27! Figure!3.5:!Tender!rounds!...!28! Figure!3.6:!Approval!of!transport!proposal!...!28! Figure!3.7:!Final!transport!choice!...!28! Figure!4.1:!MTO!and!replenishment!'drumbeat'!...!30! Figure!4.2:!Criteria!count!from!interviews!...!31! Figure!4.3:!HEINEKEN's!carbon!footprint!calculation!(HEINEKEN, 2012)!...!32!Figure!5.1:!Delft!Systems!Approach!(Veeke, Ottjes, & Lodewijks, 2007)!symbols!...!34!
Figure!5.2:!Floor!map!of!export!warehouse!Zoeterwoude!...!34! Figure!5.3:!Conventional!truck!loading!process!in!warehouse!Zoeterwoude!...!35! Figure!5.4:!CrossRdock!container!loading!process!in!warehouse!Zoeterwoude!...!35! Figure!5.5:!Conventional!truck!loading!process!in!warehouse!Den!Bosch!...!35! Figure!5.6:!CrossRdock!container!loading!process!in!warehouse!Den!Bosch!...!36! Figure!5.7:!Truck!transport!...!36! Figure!5.8:!Handlings!at!market!...!36! Figure!5.9:!Transport!to,!storage!in!and!transport!from!the!barge!container!terminal!(OTA/BCT)!...!36! Figure!5.10:!Container!handlings!at!the!port!of!Rotterdam!...!36! Figure!5.11:!Further!container!transport!from!the!port!of!Rotterdam!...!37! Figure!5.12:!Transport!costs!buildRup!...!37! Figure!6.1:!"asRis"!situation!...!40! Figure!6.2:!"toRbe"!situation!...!42! Figure!6.3:!Example!of!pairwise!comparison!...!44! Figure!7.1:!The!six!steps!that!are!necessary!to!establish!a!MCA!result!...!48! Figure!7.2:!A!warning!that!the!criteria!weights!do!not!add!up!to!100%!...!48! Figure!7.3:!Example!output!of!the!decision!support!tool!...!49! Figure!7.4:!Derived!main!lane!...!49! Figure!7.5:!PopRup!warning!message!...!50! Figure!7.6:!Filtered!tender!data!columns!...!50! Figure!7.7:!Filtered!tender!data!columns!...!50! Figure!7.8:!Costs!calculations!columns!...!50! Figure!7.9:!CO2!calculations!columns!...!51! Figure!7.10:!Warehouse!cost!calculation!for!Zoeterwoude!...!52! Figure!7.11:!Rail!and!road!after!carriage!distances!...!52! Figure!7.12:!MCA!plot!...!53! Figure!8.1:!Default!criteria!weights!...!55! Figure!8.2:!MCA!result!for!transport!to!Daganzo!de!Arriba!using!default!input!parameters!...!56! Figure!8.3:!Maximum!change!in!overall!MCA!score!Daganzo!de!Arriba!...!58! Figure!8.4:!MCA!result!for!transport!to!Athens!using!default!input!parameters!...!58! Figure!8.5:!Maximum!change!in!overall!MCA!score!Athens!...!60!
Table overview
Table!2R1:!An!impression!of!strengths!and!weaknesses!of!four!transport!modalities!(Houweling, 2010)!...!20! Table!4R1:!OTIF!performance!from!CSE!within!Europe!...!32! Table!4R2:!CO2!emissions!of!modalities!(HEINEKEN, 2012)!...!32! Table!6R1:!The!pairwise!comparison!scale!(Saaty, 1987)!...!43! Table!6R2:!Example!positive!reciprocal!pairwise!comparison!judgement!matrix!...!44! Table!6R3:!Example!eigenvector!and!criteria!weights!...!44! Table!6R4:!The!average!criteria!weights!of!HNS!...!45! Table!6R5:!Criteria!weights!of!European!markets!...!46! Table!6R6:!HEINEKEN!NV!criteria!weight!approximation!...!46! Table!8R1:!Default!warehouse!costs!...!54! Table!8R2:!Default!shuttle!costs!...!55! Table!8R3:!Default!CO2!emissions!per!kilometre!for!each!transport!modality!...!55! Table!8R4:!Variation!of!parameters!during!sensitivity!analysis!...!56! Table!8R5:!Main!lanes!of!destinations!used!during!the!sensitivity!analysis!...!56!Table! 8R6:! Overview! of! transport! data! resulting! from! MCA! calculation! using! default! input! parameters! for! Daganzo!de!Arriba!...!57! Table!8R7:!Overview!of!criteria!scores!for!transport!to!Daganzo!de!Arriba!using!default!input!parameters!...!57! Table!8R8:!Overview!of!transport!data!resulting!from!MCA!calculation!using!default!input!parameters!for!Athens !...!59! Table!8R9:!Overview!of!criteria!scores!for!transport!to!Athens!using!default!input!parameters!...!59! ! !
1 Introduction
This!chapter!introduces!the!incentive!that!led!to!this!research,!the!approach!during!this!research!and! the! report! buildRup.! First! a! short! company! description! of! HEINEKEN! NV! is! provided! as! background! information.!Thereafter!the!project!request!is!described,!which!resulted!in!the!research!topic.! The! main!problem!statement,!problem!owner,!objective!and!research!questions!are!formulated.!These! research!questions!are!answered!throughout!this!report.!The!used!research!approach!is!introduced! and!finally!the!report!structure!is!described!as!guidance!for!the!reader.!
1.1 HEINEKEN NV company description
HEINEKEN! NV! is! the! world’s! most! international! brewer! and! produces! a! wide! variety! of! products.! HEINEKEN!owns!breweries!around!the!world.!Every!brewery!locally!sells!products,!but!also!imports! and! exports! products! to! other! HEINEKEN! breweries! and! third! parties.! The! production! portfolio! of! HEINEKEN! breweries! differs.! For! example,! 5! litre! draught! kegs! are! merely! produced! in! the! Netherlands! at! the! brewery! of! Zoeterwoude.! Transport! between! breweries! is! needed! to! ensure! a! product!portfolio!that!is!demanded!by!local!customers.!
!
Figure+1.1:+HEINEKEN+has+a+wide+product+portfolio+
The!three!Dutch!breweries!are!part!of!HEINEKEN!Nederland!Supply!(HNS):!Zoeterwoude,!Den!Bosch! and!Wijlre.!These!breweries!produce!respectively!58%,!39%!and!3%!of!the!volume!produced!by!HNS.! 75%! of! the! volume! produced! by! HNS! is! exported! to! markets! all! over! the! world,! divided! in! five! important!regions:!Americas,!Western!Europe,!Central!and!Eastern!Europe,!Africa!and!Middle!East! and! Asia! Pacific.! (HEINEKEN NV, 2013)! HNS! produces! a! variety! of! products! that! cannot! be! produced!at!foreign!markets!and!supplements!markets!that!lack!production!capacity.!
!
All!stakeholders!involved!in!transport,!except!for!the!shipping!companies!and!shipping!market,!are! part!of!HEINEKEN!NV.!This!means!that!they!have!similar!interests.!For!instance,!sustainability!is!an! increasingly! more! important! criterion! for! HEINEKEN.! Henk! van! Rooijen,! Senior! Director! Global! Logistics!HEINEKEN!states:!“It$is$HEINEKEN’s$ambition$to$become$the$World’s$Greenest$Brewer.$All$of$
us,$in$each$of$the$different$functions,$have$a$role$to$play$to$achieve$this$common$goal.$And$logistics$ and$distribution$are$areas$which$have$significant$potential$to$reduce$our$company’s$carbon$footprint”
(HEINEKEN, 2012).! Other! important! criteria! related! to! transport! are! costs,! quality,! reliability,! safety,!flexibility!and!transit!time.!
!
Transport!is!a!very!determining!part!of!the!total!logistics!chain!of!HEINEKEN.!The!transport!modality! that! is! used! is! determining! for! the! planning! of! production! and! stocks! at! the! brewery! of! HNS.! The!
transport! time! of! intermodal! transport! usually! exceeds! the! transport! time! of! truck! transport,! production!planning!and!demand!planning!have!to!adapt!to!this.!For!intermodal!transport!HNS!uses! barge!transport!from!Zoeterwoude!and!Den!Bosch!to!the!ports!of!Rotterdam!and!Antwerp.!In!Den! Bosch!the!Bossche!Container!Terminal!(BCT)!is!used!as!an!inland!barge!terminal,!in!Zoeterwoude!the! ‘Overslag!Terminal!Alphen’!(OTA)!also!named!Alpherium!in!Alphen!aan!de!Rijn!is!used.!HNS’!brewery! in! Zoeterwoude! is! the! largest! customer! of! the! Alpherium.! Every! day! 180! full! containers! are! transported!from!the!brewery!of!Zoeterwoude!to!the!Alpherium.!
!
HEINEKEN’s! transport! is! outsourced! to! shipping! companies.! The! choice! of! shipping! companies! is! made! by! HEINEKEN! Global! Procurement! (HGP)! in! consultation! with! the! contract! manager! using! a! tender!procedure.!This!tender!process!is!a!yearly!occurrence,!meaning!that!shipping!companies!are! contracted! for! one! year.! Exported! products! from! HNS! to! markets! outside! Europe! are! mostly! transported!using!deep!sea!shipping.!This!is!the!most!obvious!modality!to!reach!different!continents,! because! the! alternative! transport! modes! are! relatively! expensive! and! polluting.! In! Europe! a! lot! of! different! transport! modalities! are! available.! However,! a! lot! of! HNS’! transport! is! still! organised! by! truck! transport,! which! is! why! this! research! focusses! on! improving! decisions! in! transport! within! Europe.!Truck!transport!might!seem!a!very!cheap!method!of!transport!at!first!sight,!but!NEA!states! that!intermodal!transport!is!potentially!cheaper!than!truck!transport!when!a!distance!larger!than!150! kilometres!is!covered.!(NEA, 2006)!
1.2 Distribution framework request
The! Customer! Service! and! Logistics! (CS&L)! department! of! HEINEKEN! Nederland! Supply! (HNS)! has! requested! a! distribution! framework! for! transport! from! HNS! to! markets! within! Europe.! This! distribution! framework! should! describe! a! clear! process,! which! enables! CS&L! to! develop! or! change! the!modal!shifts!of!new!and!existing!distribution!channels.!All!values!and!expectations!of!involved! stakeholders!should!be!met.!The!details!of!this!request!can!be!found!in!Appendix!A.!
!
This!research!focuses!on!transport!from!HNS!to!markets!within!Europe.!The!request!for!a!distribution! framework! originated! from! the! idea! that! transport! from! HNS! to! markets! within! Europe! can! be! optimized,!by!shifting!towards!intermodal!transport.!Not!only!can!cost!be!reduced,!but!also!on!the! level! of! sustainability! and! warehouse! logistics! a! lot! can! be! improved! by! switching! to! intermodal! transport.!Currently!the!transport!choice!is!made!in!the!following!way.!The!contract!manager!at!HNS! creates! service! specifications! with! input! from! Market! Demand! Management! (MDM),! Customer! Service! Export! (CSE)! and! Logistical! Support.! These! service! specifications! explain! the! expectations,! requests,! safety! standards! and! logistical! possibilities! from! the! perspective! of! HNS! and! foreign! markets.!HEINEKEN!Global!Procurement!(HGP)!interprets!these!service!specifications!and!tries!to!find! fitting!transport!at!the!lowest!price.!HGP!however!has!little!insight!in!the!logistics!and!production!at! HNS.!HGP!has!a!procurement!target!and!therefore!wants!to!contract!the!cheapest!transport!supplier! for! each! transport! lane.! Even! though! HGP! looks! for! possibilities! to! use! more! intermodal! transportation,!there!should!always!exist!a!positive!business!case.!Contracting!the!cheapest!transport! supplier,!however,!does!not!always!provide!the!lowest!overall!costs.!Low!quality!transport!can!very! negatively!influence!the!logistics!at!the!breweries!of!HNS.!The!contract!manager!is!part!of!Customer! Service!and!Logistics!(CS&L)!and!is!therefore!responsible!for!logistics!at!HNS.!The!contract!manager!is! a! key! stakeholder! in! the! transport! decisionRmaking! process.! He! combines! the! requests,! needs! and! practical!information!from!the!foreign!market,!Operations!Scheduling!(OS)!Customer!Service!Export! (CSE)! and! Market! Demand! Management! (MDM)! in! the! service! specifications.! The! choice! for! final! transport! proposal! is! made! in! consultation! between! the! contract! manager! and! HGP.! The! contract! manager!defends!the!interests!of!the!CS&L.!
!
For! a! justified! and! defendable! transport! mode! choice,! quantified! information! about! the! whole! distribution! process! is! required.! The! whole! distribution! process! is! in! this! research! scoped! to! the! moment! products! leaves! the! palletizing! line! to! the! moment! that! the! product! is! unloaded! at! the!
foreign! markets! warehouse.! Quantifying! the! process! broadens! the! scope! and! ensures! more! continuity! in! the! transport! decisionRprocess! and! makes! the! available! transport! options! better! comparable!and!presentable.!The!scope!of!this!research!is!visualized!in!Figure!1.2;!a!rich!picture.!
Handling Loading Stock.at.HNS Production.and.stock.planning/forecasting.at.HNS Unloading Transport CSE HGP MDM Contract.manager Customs CS&L A . Truck A . Barge A . Short.Sea A . Rail A . Intermodal.combination Possbile.transshipment OS ! Figure+1.2:+Rich+picture,+scope+of+the+research+
As! the! rich! picture! describes! the! focus! of! this! research! is! to! look! at! transport! in! a! broader! perspective.!Including!logistical!consequences!in!the!transport!decisionRmaking!process!is!one!part!of! broadening!the!perspective.!Another!part!of!broadening!the!decisionRmaking!process!is!incorporating! other!criteria!in!the!decisionRmaking!process!that!are!important!to!transport!like!carbon!dioxide!(CO2)! emissions! and! transit! time.! The! goal! of! this! research! is! to! provide! an! overview! comparison! of! available!transport!possibilities!including!logistical!consequences,!CO2!emissions!and!transit!time.!In! the! current! decisionRmaking! process! the! focus! is! mainly! on! finding! the! transport! option! with! the! lowest!costs.!However,!a!better!comparison!of!other!criteria!will!ensure!a!more!complete!tradeRoff! and! therefore! improves! the! decisionRmaking! process.! The! following! problem! statement,! objective! and!research!questions!apply!to!this!research.!
1.2.1 Problem statement
The!current!mode!choice!in!transport!from!HNS!to!markets!within!Europe!is!made!with!a!strong!focus! on! costs.! Other! criteria! are! evaluated! during! the! decisionRmaking! process,! but! only! on! basis! of! experience!and!with!limited!information!about!their!consequences!in!the!overall!distribution!process.! !
An! optimization! solution! will! be! sought! from! the! perspective! of! HEINEKEN! NV.! A! solution! will! optimize! the! distribution! process! from! a! holistic! perspective! incorporating! all! involved! or! affected! stakeholders.!
1.2.2 Research Objective
The! objective! is! to! improve! the! decisionRmaking! process! regarding! export! transport! from! HNS! to! European! markets.! Ensuring! continuity! and! transparency! in! the! decisionRmaking! process! by! the! establishment! of! a! quantified! and! presentable! comparison! between! various! transport! modality! options!and!their!logistical!consequences!in!the!warehouses!of!HNS.!
1.2.3 Research questions
• What!are!the!most!important!criteria!related!to!HEINEKEN’s!transport?! • How!can!logistical!consequences!of!a!transport!modality!choice!be!quantified?!
• How! can! the! entire! distribution! process! (from! palletizer! to! warehouse! of! the! market)! be! compared!with!regard!to!these!important!criteria?!
• How!can!a!clear!overview!of!modality!options!and!performance!of!related!costs!and!criteria! be!presented?!
1.3 Report structure
This! report! consists! of! 10! chapters.! Chapter! 1! is! the! introduction! chapter! that! guides! the! reader! through!the!report!and!introduces!this!research.!Chapters!2!to!5!are!the!foundation!of!this!research.! These!chapters!contain!essential!information!needed!to!come!to!a!solution!that!has!an!answer!to!the! problem!statement,!reaches!the!objective!and!answers!the!research!questions.!Chapter!6!combines! the!information!of!chapters!2!to!5!to!describe!the!current!situation!and!describes!the!future!solution! situation!that!this!research!aims!at.!Chapter!7!is!a!description!of!the!decision!support!tool!that!has! been!created!during!this!research.!Chapter!8!describes!the!assessment!of!the!decision!support!tool.! Finally,!chapters!9!and!10!consist!of!conclusions!and!recommendations!for!further!research.! ! This!research!starts!with!a!literature!review!in!chapter!2!about!related!topics.!The!‘state!of!the!art’!is! important! to! understand! before! executing! further! research.! A! literature! review! provides! essential! background! information! and! prevents! reRinvention! of! existing! solutions.! In! addition! a! good! understanding! of! current! literature! greatly! helps! in! substantiation! of! choices! made! during! this! research.!
!
Thorough!understanding!of!the!current!situation!is!a!crucial!for!this!research.!Therefore!an!in!depth! explanation! is! provided! of! the! current! transport! decisionRmaking! process.! This! decisionRmaking! process!determines!what!shipping!company!is!contracted!and!also!what!transport!modality!is!used.! The!current!decisionRmaking!process!was!derived!from!interviews!with!various!stakeholders!within! CS&L:!customer!service!export!(CSE),!market!demand!management!(MDM)!and!contract!managers.! Other! parties! that! were! interviewed! are! HEINEKEN! Global! Procurement! (HGP)! and! the! terminal! manager!of!the!Van!Uden!container!terminal!in!Alphen!aan!de!Rijn,!also!called!the!Alpherium.!The! questions!that!were!asked!during!these!interviews!are!listed!in!Appendix!C.1.!The!in!depth!decisionR making! process! is! described! in! chapter! 3.! For! further! deepening! of! the! current! decisionRmaking! process,!more!stakeholders!have!been!interviewed!during!this!research,!including!customers!of!HNS! within!Europe.!The!customers!of!HNS!import!products!and!locally!sell!them,!during!the!rest!of!the! report!they!are!referred!to!as!markets.!Questions!aimed!at!the!markets!are!listed!in!Appendix!C.2.! For!validation!all!stakeholders!that!are!mentioned!in!the!decisionRmaking!process!have!been!asked! for!confirmation!of!the!description!of!the!decisionRmaking!process.! ! More!information!is!derived!from!the!interviews!with!the!stakeholders.!Their!functions!and!relations! are! explained! in! a! stakeholder! analysis! in! chapter! 4.! Furthermore,! important! transportRrelated! criteria!have!been!derived!from!the!interviews!and!plotted.!The!most!important!criteria!are!used!in! the!improved!transport!decisionRmaking!process.!
!
An! in! depth! description! of! the! whole! distribution! process! is! provided! in! chapter! 5.! In! this! chapter! logistical!consequences!of!transport!modality!choices!are!identified.!This!chapter!provides!a!detailed! explanation! of! different! transport! processes.! Furthermore,! transport! related! costs! buildRups! are! described.!
!
Chapter!6!describes!the!solution!methodology!of!this!research.!The!chapter!begins!with!a!description! of!the!“asRis”!situation;!the!current!situation.!A!“toRbe”!situation!is!presented!as!a!preferred!future! situation! where! more! transparency! and! continuity! is! established! in! the! transport! decisionRmaking!
process.! This! “toRbe”! situation! includes! a! decision! support! tool! that! compares! available! transport! options!on!logistical!and!transport!costs,!carbon!dioxide!emissions!of!transport!and!transit!time.! !
In! chapter! 7! the! decision!support! tool! is! described.!This!chapter!explains! the!calculation! methods,! interface,!input!and!output!of!the!decision!support!tool.!
!
In! chapter! 8! the! decision! support! tool! is! assessed! using! sensitivity! analysis! applied! to! two! case! studies;! transport! from! HNS! to! Daganzo! de! Arriba,! Spain! and! to! Athens,! Greece.! This! sensitivity! analysis! is! necessary! to! test! the! robustness! of! the! decision! support! tool.! The! most! sensitive! input! parameters!should!be!chosen!with!care.!
!
Finally,!chapter!9!and!10!describe!the!conclusions!and!recommendations!of!this!research.! !
The!chapters!are!visualised!in!Figure!1.3!below.!The!interview!information!and!data!obtained!during! the! research! period! is! applied! in! different! chapters.! Also! a! lot! of! general! information! about! the! company!has!been!obtained!during!the!research!period,!this!general!information!will!be!used!in!the! recommendations! of! this! report.! To! visualise! the! endRtoRend! distribution! process! in! chapter! 5! the! Delft! systems! approach! method! will! be! applied.! (Veeke, Ottjes, & Lodewijks, 2007)! The! tool! is! developed! in! Visual! Basic! in! Excel,! this! software! is! available! and! accessible! to! all! employees! of! HEINEKEN! and! is! therefore! a! logical! software! package! to! use! for! the! development! of! a! decision! support!tool.! 1.#Introduction 3.#HEINEKEN’s# current#transport# decision#making# process 4.#Involved#and# affected# stakeholder#analysis 6.#Solution# methodology 5.#Description#of#the# endDtoDend# distribution#process 7.#Description#of# decision#support# tool 8.#Assessment#of# the#transport# decision#support# tool Chapters 9.#Conclusions 10.#Recommendations# for#future#research Logistical#costs:# stock#costs,# handling#costs Interviews/data#at# HEINEKEN Identification#of# stakeholders#and# interests Current#transport# decision#making# process Identification#of# individual#steps#in# endDtoDend#process Important#Criteria The#Delft#Systems# Approach Support Visual#Basic#in# Microsoft#Excel 2.#Literature#review HGP#transport# tender#data ! Figure+1.3:+Research+approach+visualized+ +
2 Literature review
This! chapter! is! dedicated! to! literature! related! to! this! research.! The! following! literature! topics! are! relevant!to!this!research!and!are!discussed!in!this!chapter.!Since!this!research!focuses!on!transport! modality!choices,!first!literature!is!examined!regarding!transport!modalities!and!their!characteristics.! Sustainability,! economic! feasibility! and! reliability! are! important! topics! related! to! transport! modalities.!Thereafter!literature!on!existing!intermodal!transport!networks!is!evaluated.!First!general! network!literature!is!discussed.!Thereafter,!since!this!research!focuses!on!transport!within!Europe,! European! networks! are! analysed.! Lastly,! because! decisionRmaking! is! a! key! aspect! of! this! research,! literature!related!to!decisionRmaking!processes!is!consulted.!
2.1 Transport modalities and their characteristics
The! considered! transport! modalities! are! limited! to! modalities! used! within! Europe! to! transport! HEINEKEN’s!product.!These!modalities!can!be!divided!in!four!categories:!truck,!train,!barge!and!short! sea!vessels.!The!product!is!transported!in!either!a!container!or!in!a!truck!trailer.!The!container!size! differs!and!can!be!anywhere!between!20!foot!and!45!foot.!A!special!variant!is!a!reefer!container!that! is! used! to! prevent! the! product! from! freezing! when! transported! to! cold! areas! during! the! winter.! Canvas!trailers!are!carried!by!trucks,!but!can!also!be!placed!on!train!wagons.!A!thermo!truck!is!used! similarly!as!a!reefer!to!prevent!frost.!!
Transport!en!Logistiek!Nederland!defines!intermodal!transport!as!follows:!“Intermodal!transport!is! commonly! defined! as! the! carriage! of! containers,! swapbodies! and! semiRtrailers! by! more! than! one! mode!of!transport.!In!its!most!extreme!form,!the!complete!freight/vehicle!combination!is!placed!on!a! train!or!barge.” (Transport en Logistiek Nederland (TNL), 1999)!HEINEKEN’s!breweries!do!not!have! direct!access!to!railroads,!barge!terminals,!or!sea!ports,!so!when!the!product!is!transported!by!train,! barge!or!a!short!sea!vessel!shuttle!transport!by!truck!for!the!first!part!is!always!necessary.!Hence,! when!train,!barge!or!short!sea!transport!is!used!for!transportation!of!HEINEKEN’s!products,!this!falls! under!the!heading!of!intermodal!transport.!
!
A! modal! shift! is! a! switch! from! road! transport! towards! water! or! rail.! Intermodal! transport! has! increased! over! the! last! decade! because! of! container! handling! automation! and! progressive! IT! solutions.! (Houweling, 2010)! Although! intermodal! transport! is! often! perceived! as! being! slow,! Houweling! provides! an! illustrative! example! that! shows! the! speed! of! barge! transport.! A! barge! can! transport! 4500! tonnes! from! Antwerp! to! Luik! in! approximately! 14! hours.! This! same! weight! can! be! transported! by! 150! trucks! carrying! 30! tonnes! each.! It! will! take! each! truck! 2! hours! to! cover! the! distance,!adding!up!to!a!total!transport!time!of!300!hours.!
!
Freight! specific! weight! and! transport! distance! are! two! important! factors! that! affect! the! energy! consumption! and! economic! performance! of! intermodal! transport! compared! to! truck! transport.! Energy!consumption!and!economic!performance!are!very!related.!As!is!shown!in!Figure!2.1!a!ships! loading!percentage!does!not!affect!the!energy!consumption!much.!For!this!reason!the!performance! of!ships!increases!a!lot!when!the!loading!percentage!increases.!
+
Figure+ 2.1:+ Energy+ consumption+ per+ km+ with+ different+ loading+ percentages+ (Rheinland-Westfälische Technische Hochschule Aachen (RWTH), 1999)+
With!a!high!occupancy!rail,!barge!and!short!sea!transport!is!economically!feasible!from!a!distance!of! only!150!kilometres.!(NEA, 2006)!This!is!illustrated!in!Figure!2.2.!
!
Figure+2.2:+Transportation+costs+per+TEU+for+different+transport+modalities (NEA, 2006)+
There! should! however! be! mentioned! that! truck! transport! often! has! a! more! direct! connection! between!origin!and!destination.!Therefore!intermodal!transport!often!covers!a!larger!distance!to!get! to!the!same!destination.!This!increases!the!distance!from!where!intermodal!transport!is!economically! feasible.!
2.1.1 Transport sustainability
26%!of!the!global!CO2!emissions!are!emitted!by!transport!and!emissions!are!still!growing.!The!main! contributors! to! CO2! emissions! in! the! transport! sector! are! car! use,! road! freight! and! aviation.! (Chapman,!2007)!The!ratio!between!energy!consumption!and!loading!percentage!directly!relates!to! sustainability.! It! is! a! common! misconception! that! intermodal! transport! by! definition! is! more! sustainable! than! truck! transport.! This! is! because! barges! and! ships! use! relative! ‘old’! engines! and! trucks! occupy! newer! ‘cleaner’! engines.! On! long! distances,! however,! rail,! barge! and! short! sea! transport!emit!significantly!less!CO2!per!ton!kilometre.!(Houweling, 2010)!Where!possible!a!modal! shift!from!road!transport!is!desirable.!However,!where!a!modal!shift!is!not!possible!CO2!reduction!in!
road! transport! can! be! achieved! by! using! larger! vehicles! with! less! empty! kilometres.! Haulage! companies!need!to!work!together!for!this!to!create!economies!of!scale.!(Chapman,!2007)!
2.1.2 Transport reliability
There!are!no!hard!numbers!on!reliability!of!different!transport!modalities!in!literature.!For!instance! (Meuwissen, 2010)!mentions!that!barge!and!train!transport!are!more!reliable!than!truck!transport.! However,! there! is! no! mentioning! of! what! this! difference! in! reliability! actually! is! and! what! consequences!can!be!expected.!
!
A!different!study!investigated!how!Chinese!managers!perceive!international!transport!and!logistics! issues.!(Zhang & Figliozzi, 2010)!This!study!uses!inRdepth!interviews!with!Chinese!logistics!managers! of! large! ports! for! providing! a! general! understanding! of! delaying! factors.! As! the! study! describes,! managers! experience! the! largest! delay! caused! by! other! factors.! These! ‘other! factors’! include! for! example! manufacturing,! customs,! weather! or! supplierRrelated! delays.! The! second! most! important! cause!of!delay!is!caused!by!transhipment,!followed!by!activities!in!the!loading!and!unloading!ports.! Together!with!the!fact!that!none!of!the!managers!chose!transport!of!products!by!sea!or!transport!in! country! of! destination! as! most! important! factor! for! delay! indicates! that! transport! by! a! single! modality!of!transport!is!not!perceived!to!be!a!delaying!factor.!Thus!one!can!conclude!that!intermodal! transport! is! less! reliable! than! unimodal! transport.! However,! even! though! this! survey! provides! interesting! information,! no! hard! conclusions! can! be! drawn,! because! the! data! is! based! upon! experiences!of!logistics!managers.!
!
A!general!view!of!transport!modality!characteristics!is!provided!by!(Houweling, 2010)!in!Table!2R1.! The!information!provided!is!qualitative!information!and!gives!a!general!impression!of!modalities.!No! hard!conclusions!can!be!drawn,!because!the!characteristics!are!dependent!upon!the!situation;!the! quality! of! the! infrastructure,! the! quality! of! the! transport! equipment! and! other! environmental! influences.!
Table+2O1:+An+impression+of+strengths+and+weaknesses+of+four+transport+modalities+(Houweling, 2010)+
+
Truck+
Train+
Barge+
Short+sea+
Costs+
+
+
+
+
Speed+
+
+
+
+
Flexibility+
+
+
+
+
Reliability+
+
+
+
+
Granularity+
+
+
+
+
Reach+
+
+
+
+
Noise+impact+
+
+
+
+
Air+pollution+
+
+
+
+
Accessibility+
+
+
+
+
Safety+
+
+
+
+
Theft+sensitivity+
+
+
+
+
! Colour+ Interpretation+ ! Favourable! ! Moderate! ! Less!favourable! ! Unfavourable! ! To!be!able!to!predict!the!quality!of!transport!one!should!always!focus!on!case!specific!information.! Available!transport!networks!influence!criteria!like!speed,!flexibility!and!reliability.!2.2 Intermodal transport networks
Woxenius!(2007)!proposes!six!theoretical!transport!network!designs!for!transportation!from!a!certain! origin!to!a!certain!destination.!These!six!network!designs!are!displayed!in!Figure!2.3.!The!circles!are! nodes,!one!node!is!the!origin!(o)!and!one!node!is!the!destination!(d).!The!arrows!indicate!a!possible! route!to!get!from!the!origin!to!the!destination.!The!dotted!lines!indicate!other!connections!between! nodes.! ! Figure+2.3:+Six+transport+network+designs+(Woxenius, 2007)+ A!full!truckload!that!is!shipped!from!origin!directly!to!destination!uses!a!direct!link!network.!The!truck! will!not!make!intermediate!stops!and!the!load!is!untouched!during!the!transportation.!A!corridor!is! used!by!a!transport!modality!that!stops!at!several!nodes!to!load!and!unload!freight.!An!example!of! corridor!transport!is!for!instance!a!barge!that!makes!stops!at!different!barge!terminals!and!picks!up! and!drops!off!containers!at!these!stops.!In!a!hub!and!spoke!network!one!node!is!the!designated!the! hub,! all! transports! call! this! node! for! transfer,! even! for! transport! to! nearby! nodes.! The! connected! hubs!network!uses!one!mode!to!transport!between!two!hubs.!An!example!of!connected!hubs!is!short! sea!transport!between!ports.!Static!routes!indicate!a!network!that!passes!a!couple!of!nodes.!At!some! of! these! nodes! transhipments! take! place.! Dynamic! routes! offer! maximum! flexibility.! Links! are! designated!on!actual!demand!and!a!network!operator!can!choose!various!routes!between!the!origin! and!destination.!(Woxenius, 2007)! ! Different!transport!modalities!have!their!own!networks.!Barge!transport!uses!the!network!of!rivers.! A!lot!of!European!rivers!end!in!and!near!the!Netherlands,!this!is!illustrated!in!the!blue!road!map!in! appendix!F.1.!The!blue!road!map!shows!European!rivers,!transfer!terminals!and!container!terminals.! The!European!barge!network!consists!of!approximately!51.700!kilometres!of!canals,!rivers!and!lakes.! Approximately!20.000!kilometres!is!concentrated!within!the!Netherlands,!France,!Germany,!Belgium! and! Austria.! The! Dutch! barge! network! alone! is! 5046! kilometres! long.! Due! to! the! reach! and! granularity! of! the! network! numerous! locations! in! the! hinterland! can! be! reached.! (Bureau Voorlichting Binnenvaart, 2013)!There!should!however!be!noted!that!for!upstream!and!downstream! transport!locks!are!inevitable.!Locks!increase!transport!time!and!decrease!the!network!reliability.! !Rail!freight!is!an!upcoming!transport!modality.!Since!the!decentralization!of!rail!transport!prices!have! dropped!significantly.!Transport!suppliers!are!now!competing,!especially!on!price.!The!competitive! position! of! rail! transport! compared! to! road! transport! has! significantly! improved! due! to! new! tax! regulations! on! road! transport.! (Rail Cargo Tarieven, 2010)! On! November! 9! 2010! a! new! European! regulation! entered! into! force! concerning! a! European! Rail! Network! for! Competitive! Freight.! This! regulation! enabled! EU! member! states! to! establish! international! marketRoriented! Rail! Freight! Corridors! (RFCs).! (RailNetEurope, 2014)! A! map! of! existing! and! planned! RFCs! can! be! found! in! appendix!F.2.!
2.3 Decision-making theory
The!decision!to!use!a!certain!network!is!directly!correlated!to!the!product!that!is!transported.!Lee! (1995)! distinguishes! two! general! types! of! products:! functional! and! innovative.! Functional! products! have! a! stable! demand,! while! innovative! products! have! short! lifecycles! and! are! often! subject! to! consumer!and!fashion!trends,!resulting!in!unpredictable!demand.!HEINEKEN!produces!products!with! fairly!stable!demand.!However,!HEINEKENs!new!product!introductions!(NPIs)!have!a!more!uncertain! demand.!
!
Figure+2.4:+The+uncertainty+framework+(Lee, 1995)+
Lee! (1995)! distinguishes! four! types! of! networks:! risk! hedging,! agile,! efficient! and! responsive,! as! displayed! in! Figure! 2.4.! Risk! hedging! and! agile! networks! apply! to! products! with! a! high! supply! uncertainty.!Supply!with!a!high!uncertainty!is!also!referred!to!as!evolving.!An!evolving!supply!process! is!one!where!the!manufacturing!process!and!underlying!technology!are!in!early!development!and!are! rapidly! changing.! HEINEKEN! has! a! manufacturing! process! and! technology! that! are! mature! with! a! wellRestablished! supply! base.! This! supply! process! with! a! low! supply! uncertainty! is! referred! to! as! stable.!(Lee, 1995)!
!
There! exists! a! strong! link! between! marketing! and! logistics.! These! fields! are! interdisciplinary! by! nature,! but! are! still! are! treated! separately! in! many! organisations.! (Groothedde, 2009)! When! Groothedde!(2009)!proposed!an!ideal!sequence!of!events!when!choosing!a!network,!this!is!illustrated! in!Figure!2.5.!
!
Figure+2.5:+Translating+the+strategy+into+structure+(Groothedde, 2009)+
One!starts!out!with!a!business!strategy,!which!is!translated!to!a!network!strategy.!According!to!Collis! and!Rukstad!a!good!strategy!statement!has!three!critical!components!that!should!be!crystal!clear:! objective,!scope!and!advantage.!(Collis & Rukstad, 2008)!Objectives!that!drive!the!network!strategy! include! responsiveness,! reliability,! flexibility! and! risk! hedging.! From! a! network! strategy! follows! a! network!structure!and!finally!a!partner!selection!and!implementation.!
!
In! a! continuously! changing! transport! world,! the! aboveRdescribed! process! can! provide! different! outcomes! in! different! situations! and! at! different! moments.! A! very! wellRknown! model! of! decisionR making!is!the!streams!model!of!Kingdon!(1995).!According!to!Kingdon!(1995),!entrepreneurs!“lie!in! wait!in!and!around!government!with!their!solutions![already]!in!hand,!waiting!for!problems!to!float! by!to!which!they!can!attach!their!solutions,!waiting!for!a!development!in!the!political!stream!they! can!use!to!their!advantage”.!The!streams!model!assumes!that!there!are!three!streams!that!coRexist,! but!are!most!of!the!time!independent!of!each!other.!A!visualization!of!the!streams!model!is!provided! in!Figure!2.6.! ! Figure+2.6:+Kingdon's+streams+model+(Kingdon, 1995)+
The!three!existing!streams!are:!problems,!parties!and!solutions.!DecisionRmaking!takes!place!when! the!three!streams!meet.!The!moment!when!streams!meet!is!referred!to!as!a!window!of!opportunity.! The!likelihood!of!a!decision!being!taken!is!dependent!on!the!occurrence!of!a!window!of!opportunity.! A!window!of!opportunity!is!usually!the!result!of!a!change!in!policy,!new!technological!possibilities,! crisis!or!other!factors!that!make!the!streams!meet.!(Kingdon, 1995)!For!example,!a!new!road!tax!can! increase!the!usage!of!barge!and!rail!transport.!Alert!participants!identify!the!windows!of!opportunity.! Kingdon! (1995)! refers! to! these! participants! as! policy! entrepreneurs.! Examples! of! policy! entrepreneurs!are!politicians,!CEOs,!but!also!civil!servants,!middle!managers,!advisors,!scientists,!or! interest! group! representatives.! An! important! part! of! optimizing! a! decisionRmaking! process! is! therefore!ensuring!that!opportunities!are!identified.!
2.4 Concluding remarks about literature
Intermodal! transport! is! not! always! a! cleaner! method! of! transport! than! truck! transport.! However,! intermodal!transport!can!potentially!reduce!CO2!emissions,!which!makes!it!interesting!to!HEINEKEN.! For!large!distances!intermodal!transport!is!economically!feasible.!The!reliability!of!various!transport! modes!is!difficult!to!describe.!Reliability!and!flexibility!of!a!transport!mode!are!very!dependent!on! the! infrastructure! available! and! surrounding! influences.! Transhipments! negatively! influence! the! punctuality!and!reliability!of!transport,!which!might!indicate!that!intermodal!transport!is!less!reliable! than! unimodal! transport.! However,! literature! does! not! provide! heuristic! numbers! about! transport! modalityRlinked!reliability.!
!
Within!Europe!barge!and!rail!transport!networks!are!extending.!This!increases!the!competiveness!of! intermodal! transport,! which! lowers! the! price.! Transport! networks! have! different! characteristics.! A! company! should! apply! a! network! strategy! that! fits! the! product! that! is! transported.! The! network! strategy!is!strongly!correlated!to!a!company’s!business!strategy.!Decisions!are!made!when!problems,! parties!and!solutions!are!coupled!by!policy!entrepreneurs.!Identification!of!opportunities!is!therefore! an!important!part!of!making!the!right!choices!in!transport.!
3 HEINEKEN’s current transport decision-making
process
This!chapter!provides!a!detailed!explanation!of!the!current!transport!decisionRmaking!process.!The! description! of! the! transport! decisionRmaking! process! was! derived! from! interviews! and! has! been! validated!with!involved!stakeholders.!A!good!understanding!of!the!transport!decision!making!process! is!necessary!to!identify!complications!and!to!provide!decent!solutions.!Secondly,!the!mapping!of!the! current!transport!decision!making!process!can!help!HEINEKEN!to!make!better!agreements!about!the! roles!of!different!stakeholders!in!this!process.!
!
The! choice! of! transport! modality! for! export! from! HEINEKEN! Nederland! Supply! HNS! to! foreign! markets! is! influenced! by! various! parties:! HNS,! HGP,! foreign! markets,! but! also! the! shipping! companies.! The! decision! process! starts! at! the! foreign! market.! The! total! period! for! contracting! shipping! companies! takes! approximately! 4! months;! this! can! be! divided! into! roughly! two! periods:! composing!service!specifications!and!a!tender!procedure.! Market'Demand' Management Contract'Manager Volume'forecasts'for the'contract'period Market'Needs Market Forecast Stock'Levels Volume Needs Customer'Service' Export Orders Specific'Transport'Details Specific'Transport'Details Experiences'with'shipping'companies Service' Specifications ! Figure+3.1:+Creation+of+service+specifications+
Figure! 3.1! shows! the! first! phase! of! the! decision! process.! Throughout! the! year! the! foreign! market! shares!information!about!forecast,!stock!levels,!volume!and!needs!to!market!demand!management! (MDM).!The!market!demand!analyst!creates!an!overview!of!volume!forecasts!and!market!needs!and! sends!this!to!the!contract!manager.!Customer!service!export!(CSE)!receives!orders!from!the!foreign! market! and! is! responsible! for! the! bookings! of! transport.! CSE! has! direct! contact! with! the! foreign! market! and! with! transport! suppliers! about! issues! related! to! transport.! CSE! discusses! specific! transport!details!with!the!contract!manager.!Since!CSE!is!responsible!for!the!bookings!of!transport,! they!have!experience!about!how!well!shipping!parties!perform.!This!information!is!also!shared!with! the! contract! manager.! The! market! demand! analyst,! CSE! and! the! contract! manager! are! all! part! of! Customer!Service!and!Logistics!(CS&L)!at!HNS.!The!contract!manager!creates!a!document!of!market! specific! service! specifications! based! on! the! information! he! receives! from! MDM! and! CSE.! These! service!specification!determine!a!baseline!for!the!quality!of!transport!that!is!expected!by!HEINEKEN! NV.!The!service!specifications!are!checked!and!updated!every!year!for!all!markets.! ! A!copy!of!the!service!specifications!is!send!to!the!foreign!market!for!validation.!If!the!foreign!market! disagrees!with!a!part!of!the!service!specifications,!it!will!provide!feedback!to!the!contract!manager.! This!is!illustrated!in!Figure!3.2.!The!MDM!department!always!receives!a!copy!of!this!communication.!
Market Validation Contract/Manager Possibly/Feedback Market/Demand/ Management CC Service/ Specifications ! Figure+3.2:+Validation+of+service+specifications+ The!service!specifications!are!then!send!to!HEINEKEN!Global!Procurement!(HGP).!HGP!is!responsible! for!procurement!of!transport!between!various!markets!of!Heineken!NV.!This!research!focusses!on! the! transport! decision! making! process! from! HNS! to! European! markets.! Based! on! the! service! specifications!HGP!will!initiate!the!tender!procedure.!The!tender!procedure!starts!with!a!‘request!for! information’,!which!is!an!informational!form!that!new!shipping!companies!have!to!fill!in.!This!form!is! used!by!HGP!to!determine!whether!shipping!companies!that!have!not!been!contracted!before!match! the! service! expectations! of! HNS.! The! filled! ‘request! for! information’! is! send! back! to! HGP,! as! is! illustrated!in!Figure!3.3.! HGP Available+Shipping+ Suppliers ‘Request+For Information’ Filled+‘Request+For+Information Service+ Specifications ! Figure+3.3:+Determine+match+between+HEINEKEN+and+shipping+companies+
HGP! makes! a! selection! in! shipping! companies! based! on! the! ‘request! for! information’! and! service! specifications.!HGP!keeps!a!track!of!unreliable!transport!suppliers!that!are!not!invited!to!the!tender! based!on!bad!experiences!in!the!past.!Performance!of!transport!suppliers!is!measured!on!onRtime! and!in!full!(OTIF)!performance.!Also!subjective!information!like!experiences!of!the!contract!manager,! CSE,!operations!scheduling!(OS)!and!the!logistics!support!are!taken!into!account.! List%of%unreliable% transport%suppliers 0 % Experiences%with%transport% supplier%from%the%perspective%of% the%contract%manager,%CSE,% operations%scheduling%and%logistics% support%at%HNS.%(subjective% information) 0 % OTIF%performance%of%transport% supplier,%measured%by%CSE ! Figure+3.4:+List+of+unreliable+shipping+suppliers+ The!selected!shipping!companies!are!invited!to!join!the!tender,!which!consists!of!two!rounds!and!a! selection! round.! In! every! round! HGP! sends! out! a! request! for! quotation! (RFQ)! to! the! shipping! companies.! After! the! first! round! the! price! of! the! cheapest! shipping! company! is! usually! chosen! as! target!rate.!This!target!rate!is!communicated!to!the!shipping!companies!that!will!then!provide!a!new! offer.!The!third!round!is!a!selection!round!where!HGP!selects!potential!shipping!offers.!These!three! rounds!are!visualised!in!Figure!3.5.!
HGP Tender*Round*1 Selected*Shipping*Companies Shipping*Offers
HGP Including*Target*RateTender*Round*2 Selected*Shipping*Companies Adjusted*Shipping*Offers
HGP Tender*Round*3 Selected*Shipping*Companies Final*Shipping*Offers Round&1 Round&2 Selection&Round HGP*And Contract*Manager ! Figure+3.5:+Tender+rounds+ The!final!shipping!offers!from!shipping!companies!are!evaluated!by!HGP!and!the!contract!manager.! Together! they! make! a! selection! from! the! offers! and! formulate! one! or! multiple! proposals,! as! is! illustrated!in!Figure!3.6.!These!proposals!are!challenged!by!the!Manager!Export!Logistics,!who!has!to! approve! the! proposals.! When! a! proposal! is! approved! by! the! Manager! Export! Logistics! it! can! be! communicated!to!the!foreign!market.!
HGP$And$Contract$ Manager
Final$Shipping$Offers Transport$Proposals Manager$Export$Logistics
Approval/disapproval
!
Figure+3.6:+Approval+of+transport+proposal+
For!European!transport!usually!one!transport!option!is!communicated,!but!sometimes!there!is!still!a! choice! to! be! made! by! the! foreign! market.! The! available! options! are! communicated!by! the! market! demand! manager.! The! market! demand! manager! is! part! of! HNS,! but! also! secures! interests! of! the! foreign!market.!The!foreign!market!communicates!the!final!shipping!option!to!HGP!and!the!Contract! Manager,!after!which!contracts!are!initiated.!This!is!illustrated!in!Figure!3.7.!
HGP$And Contract$Manager Approval$of$Transport
Proposals Shipping$Option Market$Demand$Manager Market
Communication$Of Selected$Of$Shipping Option Final$Shipping$Option$Choice ! Figure+3.7:+Final+transport+choice+ A!remark!has!to!be!made!about!this!last!phase!in!the!transport!decision!process.!When!there!is!no! (possibility!for!a)!modal!shift,!or!when!there!are!not!different!modalities!to!choose!from,!European! markets!receive!only!one!transport!option!that!they!can!accept!or!reject.!Rejection!of!course!has!to! be!substantiated,!because!the!transport!choice!has!been!made!based!upon!the!service!specifications.!
3.1 Concluding remarks on the transport
decision-making process
This! chapter! describes! HEINEKEN’s! current! transport! decisionRmaking! process.! This! process! was! derived! from! interviews! and! has! been! verified! with! all! the! interviewees.! This! mapped! decision!
4 Involved and affected stakeholder analysis
This! chapter! contains! a! description! of! all! stakeholders! that! are! involved! in! or! affected! by! the! transport!decisionRmaking!process.!Statements!made!about!criteria!by!interviewees!are!counted!and! plotted.! On! the! basis! of! the! counted! criteria! the! most! important! transport! related! criteria! are! derived.!Stakeholders!were!asked!to!provide!their!opinion!on!importance!of!these!important!criteria! in!a!pairwise!comparison.!The!results!of!this!pairwise!comparison!are!used!to!determine!the!weight! of!importance!for!each!criterion.!
4.1 HEINEKEN Nederland Supply
There!are!five!important!regions:!Americas,!Western!Europe,!Central!and!Eastern!Europe,!Africa!and! Middle!East!and!Asia!Pacific.!HNS!is!part!of!Western!Europe!and!exports!to!markets!within!the!same! region,!but!also!to!markets!in!the!other!four!regions.!Markets!that!produce!own!products!also!export! to!other!markets,!this!creates!competition!between!markets.!The!stakeholders!described!in!chapter!4! that!are!part!of!HNS!are!all!part!of!the!customer!service!and!logistics!(CS&L)!department!within!HNS:! the! manager! of! export! logistics,! the! contract! manager,! market! demand! management! (MDM)! and! customer!service!export!(CSE).!Their!role!is!to!make!sure!that!logistical!performance!and!customer! satisfaction!is!high,!so!that!a!competitive!position!of!HNS!to!other!markets!is!secured.! ! HNS!uses!two!types!of!planning!concepts!for!exported!products:!replenishment!and!makeRtoRorder! (MTO).!Replenishment!flattens!the!peaks!in!production!at!the!brewery.!The!peaks!of!production!can! be!flattened,!because!MDM!keeps!track!of!stock!levels!at!replenishment!markets,!which!allows!them! to! plan! production! more! efficiently.! MDM! has! no! insight! in! stock! levels! at! MTO! markets.! HNS! produces! some! products! in! even! weeks! and! others! in! odd! weeks.! The! production! planning! of! replenishment!markets!is!done!by!HNS,!so!they!plan!the!right!week!for!production.!MTO!markets!are! not! well! aware! of! what! products! are! produced! in! even! and! odd! weeks,! this! is! why! two! weeks! of! possible! production! is! planned! for! MTO! markets.! HNS! uses! a! ‘drumbeat’! schedule! for! planning! of! these!markets;!this!‘drumbeat’!for!replenishment!and!MTO!markets!is!illustrated!in!Figure!4.1.!
!
Figure+4.1:+MTO+and+replenishment+'drumbeat'+
MTO!markets!place!their!order!in!week!0,!production!is!planned!in!week!1,!week!2!and!week!3!are! possible!production!weeks!and!the!product!is!shipped!in!week!4.!Replenishment!markets!delivers!a! forecast! in! week! 0,! the! production! is! planned! in! week! 1,! week! 2! is! used! for! production! and! the! product!is!shipped!in!week!3.!
4.2 HEINEKEN Global Procurement
HGP! is! part! of! HEINEKEN! Global! that! is! part! of! HNV! parallel! to! the! five! important! regions.! HGP! allocates! transport! between! markets! using! a! tender! procedure.! The! transport! is! outsourced! to! shipping!companies.!HGP!focusses!mainly!on!allocating!transport!at!low!costs.!However,!HGP!is!also! MTO$and$Replenishment Re pl en is hm en t M TO
Week$0 Week$1 Week$2 Week$3 Week$4
Plan Produce Produce Ship
Plan Produce Ship
Order
interested!in!ensuring!that!the!transport!fits!the!needs!and!requirements!of!the!markets.!The!main! contact!person!of!HGP!at!HNS!is!the!contract!manager.!
4.3 European Markets
HNS!transports!products!in!Europe!to!two!type!of!markets:!marketing!sales!organisations!(MSOs)!and! distributors! (distri’s).! Distri’s! are! not! part! of! the! HEINEKEN! NV! and! pay! a! commercial! price! for! ordered! products.! This! price! is! composed! by! Heineken! Brouwerijen! BV! (HBBV)! and! includes! profit! and!royalties.!MSOs!pay!a!transfer!price!that!equals!cost!price.!As!explained!in!Appendix!D.11!the! transfer! price! consists! of! fixed! costs,! variable! costs! and! 6,5%! coverage! for! invested! capital.! The! transport!costs!are!stated!separately!on!the!bill!to!the!market.!This!research!focusses!on!European! markets!that!import!products!from!HNS!and!are!therefore!customers!of!HNS.!
4.4 Important
transport
related
criteria
for
stakeholders
From! interviews! with! the! stakeholders! involved! important! criteria! are! derived.! By! counting! how! many! times! criteria! were! mentioned! during! interviews! an! overview! was! established.! Figure! 4.2! displays! a! count! of! sentences! in! where! certain! criteria! were! mentioned! by! interviewees.! Also! the! nature! of! these! sentences! is! captured! and! divided! in! neutral! sentences! that! contain! the! criterion,! sentences!that!describe!the!criterion!as!being!important!and!sentences!that!describe!the!criterion!as! being!unimportant.!A!full!overview!of!these!sentences!and!qualifications!can!be!found!in!Appendix!E.!
!
Figure+4.2:+Criteria+count+from+interviews+
All!the!interviewed!stakeholders!are!part!of!HEINEKEN!NV.!Therefore!their!opinion!about!transport! criteria! is! combined! in! one! overview.! CO2! and! sustainability! were! considered! as! one! criterion,! because!HEINEKEN!NV!expresses!transport!sustainability!goals!in!CO2!reduction!goals.!Similarly!the! terms! reliability,! on! time! (OT),! on! time! and! in! full! (OTIF)! and! perfect! customer! order! (PCO)! were! considered! as! one! criterion,! because! they! all! refer! to! whether! the! product! arrives! at! the! agreed! moment! in! the! agreed! state.! CO2,! sustainability,! costs! and! on! time,! OTIF,! PCO! and! reliability! were! most!frequently!mentioned!during!the!interviews.!Costs!was!mentioned!as!important!in!39!different! sentences!and!thus!is!considered!to!be!a!very!important!aspect!of!transportation!to!the!stakeholders.! Safety! was! mentioned! mainly! by! the! contract! manager,! who! includes! safety! requirements! in! the! service!specifications.!Freshness!is!directly!related!to!the!time!between!the!filling!machine!at!HNS! and!the!moment!the!beer!is!opened!by!the!end!consumer.!It!is!difficult!to!determine!the!difference! in! beer! freshness! between! two! weeks! and! whether! or! not! the! consumer! will! be! able! to! note! the! difference.!Transit!time!is!correlated!to!freshness!and!is!quantifiable.!Flexibility!is!difficult!to!quantify! and! is! more! related! to! the! shipping! supplier! most! transport! modalities! will! be! able! to! cope! with! seasonality! aspects.! Reliability! is! a! difficult! criterion! to! quantify.! Literature! does! not! provide! a! method! for! the! prediction! of! the! reliability! of! a! certain! transport! option.! Transport! data! from! the! Customer!Service!Export!(CSE)!department!gave!some!insight!in!the!reliability!of!transport!suppliers,! but! showed! little! difference! in! reliability! between! various! modalities.! The! result! of! filtering! on! transport!to!European!markets!is!displayed!in!Table!4R1.! 0! 10! 20! 30! 40! 50!
Costs! CO2! Reliability!! Safety! Transit!
sme! Flexibility! Fressness!
Important! Neutral! Unimportant!
Table+4O1:+OTIF+performance+from+CSE+within+Europe+
Modality+ OTIF+(OT*IF)+
01+(Truck)+ 97,5%+
03+(Train)+ 96,8%+
04+(Ship)+ 96,9%+
The! reliability! of! transport! suppliers! is! only! available! about! currently! or! previously! contracted! transporters!and!therefore!does!not!provide!any!information!about!new!transport!suppliers.!CSE!only! measures!OTIF!performance!from!the!departure!time.!The!arrival!time!is!not!measured,!thus!making! the! values! not! usable! to! make! predictions! of! reliability! during! transport.! After! a! discussion! on! reliability!with!a!contract!manager!it!became!clear!that!the!available!information!from!CSE!conflicts! with!the!experiences!of!the!contract!manager.!Even!though!this!is!an!important!criterion,!due!to!the! lack! of! fundament! this! criterion! will! not! be! used! in! the! comparison! that! is! established! from! this! research.! ! This!research!will!focus!on!establishing!a!quantified!comparison!of!modality!choice!based!on!these! criteria.! • Costs! • CO2!emissions! • Transit!time! !
HEINEKEN! has! developed! a! standard! methodology! for! the! measurement! of! its! Carbon! Footprint.! (HEINEKEN, 2012)! Figure! 4.3! shows! the! formula! used! for! calculation! of! CO2! emissions.! The! total! CO2! production! during! transport! depends! upon! the! weight! of! the! load,! the! distance! travelled! and! carbon!efficiency!of!the!used!transport!modality.! ! Figure+4.3:+HEINEKEN's+carbon+footprint+calculation+(HEINEKEN, 2012)+ For!different!modalities!HEINEKEN!applies!the!carbon!emissions!that!are!shown!in!Table!4R2.!These! emissions!are!expressed!in!grams!of!carbon!dioxide!emitted!per!kilometre!and!are!used!to!calculate! HEINEKEN’s!total!transportation!carbon!footprint.! Table+4O2:+CO2+emissions+of+modalities+(HEINEKEN, 2012)+ Modality! CO2+emissions+at+100%+load+(g/km)! Truck+ 1663! Train+ 448! Barge+ 345! Short+Sea+Vessel+ 345! !
These! numbers! are! used! throughout! this! research! for! the! calculation! of! CO2! emissions.! HEINEKEN! publishes!its!carbon!footprint;!therefor!sustainability!will!in!this!research!be!expressed!in!terms!of! CO2! emissions.! Other! sustainability! factors! like! noise,! traffic! jams,! accidents! and! other! pollutant! gasses!are!not!further!investigated.!
4.5 Stakeholder analysis conclusion
This!chapter!described!the!stakeholders!that!are!involved!in!or!affected!by!the!transport!decisionR making!process.!The!interviews!were!analysed!and!the!first!research!question!was!answered:!
!
!
The!answer!to!this!question!is:!costs,!sustainability,!reliability!and!transit!time.!
Reliability! has! proven! to! be! incredibly! hard! if! not! impossible! to! predict! with! the! available! data.! Therefore,!three!important!criteria!are!used!in!the!quantified!comparison!that!will!be!established:!
5 Description of the end-to-end distribution
process
From!the!moment!that!the!product!leaves!the!palletizer!at!HNS!in!Den!Bosch!or!Zoeterwoude!to!the! moment!that!the!product!is!unloaded!at!the!warehouse!of!the!market!is!mapped.!From!now!on!this! is! referred! to! as! mapping! of! the! endRtoRend! distribution! process.! Within! the! warehouses! of! HNS! Zoeterwoude!and!HNS!Den!Bosch!two!types!of!loading!are!possible:!conventional!loading!and!crossR dock! loading.! In! Zoeterwoude! also! the! possibility! for! automatic! container! loading! exists! using! the! Automatic!Truck!Loading!System!(ATLS),!in!that!case!pallets!are!transferred!from!the!palletizer!via!the! crossRdock! track! towards! the! ATLS.! The! ATLS! automatically! loads! the! containers! in! a! docked! container.!No!forklift!trucks!are!needed!during!this!process.!
!
The! individual! steps! in! the! endRtoRend! distribution! process! are! mapped! using! process! diagrams! according!to!the!Delft!Systems!Approach!(Veeke, Ottjes, & Lodewijks, 2007).Figure!5.1!shows!what! symbols!are!used!and!how!they!can!be!interpreted.! Process Equip, ment Buffer Material5Flow !
Figure+5.1:+Delft+Systems+Approach+(Veeke, Ottjes, & Lodewijks, 2007)+symbols+
5.1 Logistical process HNS Zoeterwoude
Figure! 5.2! shows! a! floor! map! of! the! export! warehouse! of! HNS! Zoeterwoude.! On! the! left! the! blue! numbered!items!are!the!palletizers,!here!the!product!is!automatically!stacked!on!a!pallet!after!which! a! plastic! bag! is! automatically! molten! around! the! palletized! product! for! stability.! The! palletized! product!then!automatically!moves!towards!a!crossRdock!track!(blue!boxes).! Put$ready$spot Cross.dock$track Pick.up$point Additional$cross.dock$feeding$point
AT
LS
AT
LS
! Figure+5.2:+Floor+map+of+export+warehouse+Zoeterwoude+For! conventional! loading! the! pallet! is! retrieved! from! the! crossRdock! track! to! be! stored! in! the! warehouse,!because!the!truck!never!exactly!arrives!when!the!product!is!finished.!The!handling!and!
storage!is!done!by!a!forklift!truck!that!carries!three!pallets!at!once.!The!product!is!stored!locally!in! the!warehouse!of!Zoeterwoude.!When!a!truck!arrives!and!connects!to!one!of!the!docks!on!the!right! side!of!the!floor!map,!the!palletized!product!is!retrieved!from!the!storage!and!put!ready!for!loading.! A!similar!forklift!truck!that!stored!the!pallets,!will!carry!three!pallets!at!a!time!to!one!of!the!put!ready! spots! (red! boxes).! The! palletized! product! can! also! be! fed! to! the! crossRdock! track! at! one! of! the! additional!crossRdock!feeding!points!(yellow!box)!and!automatically!move!to!a!put!ready!spot.!A!small! forklift!truck!will!load!the!pallets!oneRbyRone!in!the!truck.!Figure!5.3!shows!a!schematic!overview!of! the!steps!in!the!conventional!distribution!process.! Palletized)product Handle)and) store FLT)–)3) pallets Retrieve)and) put)ready FLT)–)3) pallets Palletized)product) in)truck Load FLT)–)1) pallet Warehouse) Zwou Move XBdock) Track ! Figure+5.3:+Conventional+truck+loading+process+in+warehouse+Zoeterwoude+ Pallets!that!are!transported!in!containers!via!the!Alpherium!can!be!loaded!via!the!crossRdock!tracks.! When!a!palletized!product!is!ready!a!container!can!be!called!and!will!arrive!and!connect!to!one!of!the! docks! within! a! half! hour.! The! advantage! of! crossRdocking! is! that! there! are! no! large! forklift! trucks! needed!to!handle!the!pallets.!A!second!advantage!is!that!there!is!no!need!to!store!the!pallets!in!the! warehouse!of!the!brewery;!the!container!can!arrive!when!the!product!is!ready!and!is!immediately! transferred! to! the! Alpherium! when! filled.! At! the! end! of! the! crossRdock! track,! a! small! forklift! truck! loads!the!pallets!oneRbyRone!in!the!container.!OneRway!pallets!can!be!loaded!in!40!foot!containers!by! the!Automatic!Truck!Loading!System!(ATLS).!For!this!reason!the!ATLS!is!used!for!transport!to!the!USA! only.!In!Figure!5.2!can!be!seen!that!four!docks!can!be!loaded!by!the!ATLS.!The!crossRdock!container! loading!steps!are!schematically!displayed!in!Figure!5.4.! Palletized)product Handle)and) load FLT)–)1) pallet Palletized)product) in)container Palletized)product) in)container Load)automatic ATLS Move X<dock) Track ! Figure+5.4:+CrossOdock+container+loading+process+in+warehouse+Zoeterwoude+
5.2 Logistical process HNS Den Bosch
HNS! Den! Bosch! has! a! similar! warehouse! as! HNS! Zoeterwoude.! The! warehouse! in! Den! Bosch! is! however! smaller! and! less! complex;! there! exists! one! crossRdock! track! and! no! ATLS.! All! palletized! products!move!through!the!warehouse!over!the!crossRdock!track.!For!truck!transport!the!pallets!are! always!stored!in!the!warehouse.!Unlike!the!warehouse!in!Zoeterwoude,!the!warehouse!of!Den!Bosch! only!uses!forklift!trucks!that!carry!one!pallet.!When!a!truck!arrives!at!one!of!the!docks,!the!pallets!are! retrieved! from! the! warehouse! and! loaded! by! a! forklift! truck! carrying! one! pallet! at! a! time.! The! conventional! handling! process! thus! has! one! step! less! than! the! conventional! handling! process! in! Zoeterwoude.!The!conventional!handling!process!in!Den!Bosch!is!visualised!in!Figure!5.5!below.! Palletized)product Move X2dock) Track Handle)and) store FLT)–)1) pallet Retrieve)and) load FLT)–)1) pallet Warehouse) DB Palletized)product) in)truck ! Figure+5.5:+Conventional+truck+loading+process+in+warehouse+Den+Bosch+
