Best Practices in Logistics

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Best Practices in Logistics November 23, 2004
Paul P Evertse ExxonMobil Petroleum Chemical
Member
Cefic Logistics Committee
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Logistics Best Practices

• Voluntary industry initiative aiming at
• Improving safety environmental performance
• Preventing transport accidents
• Reducing traffic congestion
• Improving industry competitiveness
• Improving public image
• Avoiding over-regulation
• by Cefic European Chemical Industry Council
• ECTA European Chemical Transport Association
• EPCA European Petrochemical Association

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Logistics Best Practices

• Conditions for success
• Promotion internal and external e.g. seminars,
  workshops
• Involvement and commitment of all players e.g.
  workgroups
• Implementation, measurement and continuous
  improvement
• Ongoing management
• Recognition within and outside industry e.g. at
  EC level
• Many chemical industry best practice initiatives
  could benefit other industry sectors. However
  adoption within chemical sector could improve
  significantly !

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Implementation of Best Practice Guidelines

• Guidelines document current Industry Best
  Practice and are endorsed by Cefic Logistics
  Committee and the ECTA Board members
• Implementation/adoption is an individual decision
  of a company, be it shipper or LSP
• Guidelines are not meant to restrict competition,
  they are meant to facilitate improvements in
  productivity, safety, health and environmental
  performance of both shipper and LSP
• Successful implementation requires close
  cooperation between shipper and LSP

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Logistics Best Practices

• Overview of Joint Cefic/ECTA/EPCA Guidelines
• Standard Delivery Performance Measurement
• 16 Hours Operation
• Road - Standardisation of equipment
• Rail - Standardisation of equipment
• Safety in the Supply Chain
• - SHE Management Practices for Logistics
  - Learning from accidents
• - Safety Awareness Behaviour in the Supply
  Chain - Safety Training Behaviour Based
  Safety for Vehicle Driving

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Logistics Best Practices

• Overview of Joint Cefic/ECTA/EPCA Guidelines
  (cont.)

• Transport Security Site Access
• Human Resources
• Productivity Improvement
• Sub-contracting
• Transport Emergency Response
• SQAS

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STANDARD DELIVERY PERFORMANCE MEASUREMENT

• Collection of performance data in standardised
  way
• Identification of weak points
• Drives continuous delivery performance
  improvements
• Reporting by exception
• Will be incorporated in revised CIDX Chem-E
  standards
• Adopted by Elemica and Transwide

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16 HOURS OPERATION

• Advantages of increased loading/unloading periods
• Reduction of peaks during loading/unloading
  periods
• Less traffic during rush hours
• Less stress for the drivers
• Improvements in safety productivity

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Safety in the Supply Chain

• Aim is to propose best practice guidelines and
  techniques on how to increase safety awareness
  and safe behaviour throughout the Supply Chain.
• Areas of Focus
• 1 ) SHE Management Practices
• Recommends the different elements of the
  management systems that LSPs should have in
  place to ensure that the transport and
  associated handling of chemicals is unlikely to
  have adverse SHE impacts

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Safety in the Supply Chain (cont.)

• 2 ) Learning from Accidents
• Central database for incidents/accidents to
  facilitate sharing of learnings. Not very
  successful.
• New sharing platform established.
• 3 ) Safety Awareness Behaviour
• Identify / Promote Best Practices and
  Techniques as applied by the Chemical Industry
• 4 ) Safety Training
• Behaviour Based Safety Guidelines for Safe
  Driving of Road Freight Vehicles

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Guidelines for Transportation Security

• Address main Security Risks related to the
  transportation and associated handling of
  chemical products and the measures to be taken to
  manage these risks.
• Guidelines for
• - In transit security of dangerous goods
• - Security measures to be taken on chemical
  sites

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Human Resources

• Existing and growing shortage in skilled
  personnel (drivers)
• How to increase the attractiveness of transport
  industry for young people
• Improve recognition of driver as a person
• drivers profession
• - Conducted workshop with drivers
• Guidelines being developed
• - BBS Safe loading / unloading
• - Pre-Loading self-assessment checklist
• - A typical drivers day story for more
  respect/recognition

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Productivity Improvement

• Inventory of best and bad practices in the
  relationship between shippers and LSPS as
  experienced by the LSPs
• You will hear more on this from Luc Haesaerts,
  Chairman of ECTA, later today

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Sub-Contracting

• Develop best practice guidelines for
• sub-contracting in order to improve safety
  within the chemical transport sector and have
  these guidelines reflected in SQAS Road

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Transport Emergency Response

• Within the exisiting CEFIC-ICE European emergency
  response network, promote increased mutual
  assistance amongst ECTA members
• Inventory of contacts and equipment in case of
  emergency all over Europe

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SQAS Schemes
Transport Mode Managed by Start
Road Cleaning Stations Rail Freight
Integrators Warehouses RTC Workshops Distributors
(ESAD) Barges Marine Bulk Marine Packed Cargo
Terminals
Cefic Cefic Cefic Cefic Cefic
Cefic FECC Cefic EBIS CDI CDI CDI
1995 1998 2000 2004 2005 2005 1999 1998 1995 2002
1998
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• SQAS / ICE / Best Practices
• Responsible Care in Action
• applied to
• Logistics Operations