1. Smart Logistics « Grid » (« Logistique Urbaine Mutualisée Durable ») Urban Logistics and Sustainable Development EEG2 / TBG3 Transport/Logistics UN/CEFACT meeting PARIS 22-26 February 2010

2. 2 Agenda  Urban freight transportation issues  Concept of the “smart logistic grid”  Benefits  Challenges  LUMD Project  Conclusion

3. 3 Increase in population density Intensification of the flow of goods in cities (internal, external) Pressure to become more cost- compeitive Cleaner, less congested and safer environment Limited Infrastructure expansion Transportation of goods becoming more difficult and costly  A need to transform the way goods are delivered within cities, whether for retailers (small and large, business offices, services,…) Freight « mobility » is becoming an urgent and critical challenge for large cities

4. 4 How to move forward ?  Promote collaboration at all levels -Flow consolidation -Cross-modal transportation -Among customers, suppliers and all levels of government authorities  Leverage technology to better manage transport demand and supply -« Intelligent » transportation solution (planning, real-time monitoring,…) -Comply with International standards for Electronic Exchanges  Manage « last-mile » freight delivery as an integrated service -Across transportation modes -Customer-centric, not resource centric

5. 5 Agenda  Urban freight transportation issues  Concept of the “smart logistic grid”  Benefits  Challenges  LUMD Project  Conclusion

6. 6 Concept : Optimize local deliveries through smart freight consolidation Urban Area Retailers Shopping Centers Factories Businesses End- Customers Picking points Urban Area Retailers Shopping Centers Factories Services End Customers Picking Points TodayTomorrow Many Long-Distance Final Deliveries (trucks) (« Supply-Driven Supply Chain ») Few Short-Distance Final Deliveries (multi-modal) (« Demand-driven Supply Chain ») Urban Freight Consolidation Center (UCC) Warehouses

7. 7 Level of consolidation : multi-product / multi-business / multi-modal Multi-Product Freight, non perishable products Multi-Modal Train, metro, electric vehicle, boats,… Multi - Business Retailers, Offices, Shops,… Retail Shop Supplier Delivery Supplier Delivery Supplier Delivery Waste Retail Shop Supplier Delivery Supplier Delivery Supplier Delivery UFCP* *Urban Freight Consolidation Platform

8. 8 Intelligent Freight SystemTransportation & Logistics Suppliers Urban transports Warehouses Urban initiatives Airport Hauliers Ports Cargo terminal Carriers Logistics Market-Place (B2B) Freight Consolidation Management Urban Logistics Regulator Responsibility for organizing / monitoring the “last-mile” Supply Chain (Smart “Logistic” Grid) at the city level Real-time visibility on demand and capacity, yield management Management of integrated services including storage, picking, packing, final transportation & deliveries for specific market / product segments An « E-Platform » providing high added value services Businesses Individual Retailers Shopping Centers Offices End Customers Outlets

9. 9 Agenda  Concept  Benefits  Challenges  LUMD Project  Conclusion

10. 10 Key Benefits Environmental Benefits PROVIDERSBUSINESSES PEOPLE Economical Benefits Benefits to Retailers

11. 11 Benefits to Retailers  Reduced on-site stockroom requirement -Increased sales -Reduced stock-out situations during peak periods  Delivery timing & flexibility -Multiple deliveries a day with appropriate « green » vehicles -Greater range of items  Efficient logistics processes -Unpacking, sorting, labelling, invoicing,… -Returns (unsorting, repacking,…) SALES (70%) STORAGE (30 %) SALES (90%) (10 %) Floorspace

12. 12 Environmental Benefits  Reduced overall vehicle mileage -Fewer goods vehicle delivery movements all the way to city centers  Reduced emissions -Fewer vehicle mileage -« Green » vehicles / alternative transportation modes  Reduced congestion, noise,…  Improved safety

13. 13 Economical Benefits through Consolidation 90% of trips are individual cars, for 25kg shopping basket, on an average distance of 10km roundtrip Complete trucks (20T), average distance of 350 km Manufacturer 1 Manufacturer 2 Distribution platform Cost of transport in the upstream retail: 5% of the value of the goods (e.g. 4 € for an average basket of 80 €) Cost of the “last mile” in retail: up to 30% of the value of the goods (€ 15 ** for an average shopping basket of 80 euros and 25 Kg) Outside Shopping Center Home Source : www.cyber.uhp-nancy.frwww.cyber.uhp-nancy.fr * Source : emarketing.fr : A complete home delivery service costs 20 to 34 euros but is rarely charged more than € 9.15 ** Home delivery service at Carrefour, Ooshop. Deliveries in rounds, 3T per salespoint, average distance of 75km Downtown Retail Stores

14. 14 Agenda  Concept  Benefits  Challenges  LUMD Project  Q & A

15. 15 A number of interesting initatives have emerged, without however adressing the global issue of urban logistics : Industrial distribution warehouses Pre consolidation platforms Peri urban infrastructures UDC: Urban Distribution Center Picking points Urban initiatives Several cities (Monaco, Bordeaux, La Rochelle, etc.) have a UDC and pre consolidation platforms Monoprix develops freight through rapid transit rail system (« RER ») and fluvial to supply its stores La Petite Reine and Chronocity offer a service of alternative delivery (bike, manual cart) Consignity offers more than 10 baggage lockers places in Paris, functionning as an advanced stocks for tradesmen Tradesmen Urban area Natoora, e-box and Chronopost offer logistic spots in urban area Peri urban area Supermarkets Industrials ULS Urban Logistical Spots

16. 16 The key challenges ahead :  Start-Up Costs -Freight consolidation facilities -« Green » transportation  Financial viability -Flow consolidation opportunities  Information Technology -Marketplace, monitoring, yield mngt,… -Standards  Retailers participation  Transportation & logistics providers (carriers,…) participation  Public authority support : -Local / regional / national authority level -Regulations & Finance

17. 17 The “LUMD” project addresses these key challenges :  Start-Up Costs -Freight consolidation facilities -Transportation capacities  Financial viability -Flow consolidation opportunities  Information Technology  Retailers participation  Transportation & logistics providers (carriers,…) participation  Public authority support : -Local / regional / national authority level

18. 18 Agenda  Concept  Benefits  Challenges  LUMD Project  Conclusion

19. 19 An innovative PPP (Public Private Partnership) sponsored by Advancity: Business Technology Research labs Service providers 75 94 77 Stakeholders

20. 20 An ambitious goal, but a progressive approach through prototyping and real-life experimentations :

21. 21 Expected benefits for Ile de France  Lower the ratio kgCO2/tons or transported m3 by approximately 50%  Achieve 25% modal shift from road to other means  Improved by 30% filling trucks  Reduce by 30% mileage Freight  First census of urban logistics flows  Powered continuously by the urban logistics integrator Monitoring of urban logistics flows  Optimize the ratio kgCO2/surface or storaged m3  Improve storage management by 15% Logistic spaces  Reduce disturbances including noise  Improve proximity services through transport (+10% over 5 years)  Rehabilitate proximity shopping Services and quality of life

22. 22 Agenda  Concept  Benefits  Challenges  LUMD Project  Conclusion

23. 23 The Smart Logistics” Grid” is more than implementing technologies  Vision of how to transform the last-mile logistics  Collaboration between all key partners of the Supply Chain -Suppliers, Customers -Transportation & Logistics Providers (all modes) -All levels of government authorities  Apply innovative business model -Urban freight consolidation center -Dynamic Pricing -Integrated services -Use International standards for interoperability  Address complexity of implementation

24. 24 Hervé HILLION Vice-President Standard + 33 1 58 22 18 50 Assistant + 33 1 58 22 18 53 Mobile + 33 6 08 51 40 96 e-mail : h.hillion@headlink-partners.com Hervé HILLION Vice-President Standard + 33 1 58 22 18 50 Assistant + 33 1 58 22 18 53 Mobile + 33 6 08 51 40 96 e-mail : h.hillion@headlink-partners.com Your contacts at Headlink Partners Céline BERNARD Senior Manager Standard + 33 1 58 22 18 50 Mobile + 33 6.81.85.24.75 e-mail : c.bernard@headlink-partners.com Céline BERNARD Senior Manager Standard + 33 1 58 22 18 50 Mobile + 33 6.81.85.24.75 e-mail : c.bernard@headlink-partners.com Dominique VANKEMMEL Senior Consultant AD’MISSIONS Mobile + 33 6.99.44.33.81 e-mail : dvankemmel@wanadoo.fr Dominique VANKEMMEL Senior Consultant AD’MISSIONS Mobile + 33 6.99.44.33.81 e-mail : dvankemmel@wanadoo.fr Marielle STUMM Researcher Computer Research Center CIR INRETS Mobile + 33 6.81.85.24.75 e-mail : marielle.stumm@inrets.frmarielle.stumm@inrets.fr Marielle STUMM Researcher Computer Research Center CIR INRETS Mobile + 33 6.81.85.24.75 e-mail : marielle.stumm@inrets.frmarielle.stumm@inrets.fr