1. Logistics Institute StratMos Joint Workshop Telemark 19 May 2009 Discussion Points DP3c - Applying Logistics Technologies Nick Riley University of Hull logistics Institute

2. Logistics Institute Now… some comments on UHLI’s recent experience of the effects of the current economic crisis on Logistics and related Operations.

3. Logistics Institute Overview – economic effects Effects on technology-related projects Effects on training,staff development and employment Positive effects – search for improved efficiency

4. Logistics Institute Effects of current economic crisis on DP3c The following are examples relating to potential UHLI technological projects in recent months: UK Electronics company worth £2 Million pa cancelled rental of a UHLI laboratory due to loss of a major client (Italian arm of company worth £54 Million pa gone into administration); Health Food company have scaled down UHLI project from £64,500 to £25,000; Large shipping and warehousing company originally discussed £200,000 warehouse management project, scaled down to £96,000 and now considering £4000 feasibility study only;

5. Logistics Institute Further examples relating to potential UHLI technological projects in recent months: Frozen food company having difficulty with management approval for a £5,000 RFID project; Advanced Engineering company postponed £65,000 contract due to cancellation of orders, now looking at £3,000 website design project and £3,000 feasibility; Defence contractor cancelled plans for fuel storage track and trace project due to Ministry of Defense budget contraction;

6. Logistics Institute Participation in training events is declining. Eg Logistics ConventionJune ’07 – 100 June ’08 – 80 June ’09 – 20; Commercial Vehicle Show (normally coincident with Multimodal Conference at NEC Birmingham) cancelled; Logistics company laid off one third (150) of administrative workforce; Another freight operator laid off 71 staff; Port Authority laid off 20 staff; Last year there was an 80,000 shortage of freight drivers, now five fold increase in unemployed drivers in the UK; The following are examples relating to Logistics personnel and training:

7. Logistics Institute A major logistics operator has contracted UHLI for bespoke training for all of its top management, accompanying office reorganisation; Major freight operator undertaking technical development in-house; A large construction company, suffering increased theft of materials and assets, has expressed interest in technology for improved security - £3,000 feasibility; The University has been awarded £900,000 to assist business through the economic crisis (ECIF fund), one third aimed at the Logistics sector. However, in some cases business contraction focuses effort on efficiency improvements:

8. Logistics Institute Summary - economic crisis effects on DP3c Logistics operators are trimming back operations and cannot afford to engage in non-essential activity; Nevertheless, potential efficiency gains are more attractive than ever and some companies are still innovative; Financial strictures within the University have affected willingness of some colleagues to engage with StratMos – redefinition of activity; Synergies with NS FRITS project provide improved prospects for real implementations in Humber region; Potential to use external contractor.

9. Logistics Institute Now…  Brief introduction to related project “NS FRITS”  invitation to join the NS FRITS stakeholder group.

10. Logistics Institute

11. In summary – a few observations The three aspects Identification, Location & Communication must be integrated effectively – isolated use limits commercial benefit. Collaboration between partners or members of supply chains is essential to gain maximum benefit from technology and data sharing. Appropriate Technology Choice is the key to success. DP3c gives us a good opportunity to explore these interactions.

12. Logistics Institute University of Hull Logistics Institute T: + 44 (0) 1482 463010 W: www.uhli.org E: logistics@hull.ac.uk