Multi-year Expert Meeting
on Transport,Trade Logistics and Trade
Facilitation:
Transport and logistics innovation
towards the review of the Almaty
Programme of Action in 2014
22-24 October 2013
USING A STRATEGIC DECISION MAKING TOOL TO
DESIGN AND OPTIMIZE SUPPLY CHAIN NETWORKS
(A BEST PRACTICE IN GLASS RECYCLING)
by
Mr. Aurélien Levieux
Engineer
(Institute for logistics) of Le Havre University, ISEL
This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received.
The views expressed are those of the author and do not necessarily reflect the view of the United Nations.
04/11/2013
USING A STRATEGIC DECISION MAKING TOOL TO DESIGN
AND OPTIMIZE SUPPLY CHAIN NETWORKS
(A BEST PRACTICE IN GLASS RECYCLING)
CNUCED Presentation
October, 23rd 2013
aurelien.levieux@univ-lehavre.fr
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ISEL, a school unique in France
ISEL, school of logistics is the only public engineering institute in
France in the field of logistics
Some figures:
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School founded in 1994
465 graduated engineers
212 students (2013/2014)
40% women
Around 50 new graduates each year
95% graduates under contract in less than 6 months
ISEL 800 program: double the number of students by the coming years
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ISEL, a school unique in France
ISEL has numerous foreign partner institutions, both European (Socrates/Erasmus
programme) and worldwide
ISEL has also 2 main partnership agreements with the universities of Hull (UK) and
Magdeburg (Ger)
A specific entity, Comptoir of Logistics (value-creation entity)
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Comptoir of logistics
Comptoir of Logistics:
– Project engineering
– 14 colleagues
– 3 main competences:
• Modeling/simulation
• Supply Chain trade skills diagnosis (Audit)
• Major projects and cooperation
Construction of decision making tools
We design both strategic (network optimization) and operational
(process/flow optimization) models
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Modeling and simulation
Modeling is a symbolic representation of some aspects of an object
or a real phenomenon
Simulation enables to develop a model and to test different
configurations (time, spatial configuration, …) under different
constraints
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Modeling and simulation – Logistics issues
Sourcing
Manufacturing
Inventory
Infrastructure
Outsourcing
Strategic
Inventory modelling / deployment
Cost models and budgets
Warehouse layout
Vehicle routing
Tactical
Opérational
Route Manifests
Stock replenishment
Shift Patterns
Warehouse Resources
Picking Lists
Daily
Weekly
Monthly
6 Months
1 year
2 years
5 years
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Modeling and simulation – CAST Aurora
CAST Aurora: a strategic support tool for Supply Chain planning
Interests:
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Results:
To gain insight
To quantify relationships
To optimize
To generate and evaluate options
To test sensitivities
To remove emotion and politics
To adopt a rigorous process
To provide a point of expertise...
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Network Optimization
Warehouse positioning
Transport Mode selection
Supply & Demand allocation
Carbon optimization
Consider all elements of the Supply Chain in a single, integrated model
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Modeling and simulation – Methodology
Modifications
Requirements definition
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Analysis of the
situation 2
Data gathering
Data analysis
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Data
Adequation
Results analysis
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Scénarios
Configuration
Modelling
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Implementation
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Software
1: Project definition, objectives
6: Study period, units, rules and constraints
2: Flow diagrams, mappings…
7: Model design
3: Technical data, key variables, constraints
4: Perimeter, functionalities, elements...
8: Model implementation
Simulation run
5: Data analysis (folding, deleting, combining…)
9: Assumption tests (analysis and recommendations)
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Partners
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AUTOMOTIVE GLASS RECYCLING
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Context and objective
Context
European regulation: from 2015, 95% of the total weight of an End of Live Vehicles (ELV)
should be re-used / recycled.
Concerning this issue, France is not a model in Europe: only 81% of an ELV is be re-used /
recycled.
Automotive glass is not recycled and is representing 3-4% of the total weight…
Objective
Establish a profitable network for glass collecting and recycling of the French manufacturer
Renault
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Partners
Industrials
Engineering schools
Association
Public partners
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ISEL objective
Create a decision making tool to size and define the cost of the
collecting, storage and distribution network of reusable glass in France
(including carbon footprint)
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Actors of the supply chain
Glass deposits
• Car crushers
• Car dealership
• Windscreen repairer (Carglass, France Pare brise…)
Collection platforms
• Sita platforms
• Renault platforms...
Glass reprocessing sites
Transportation companies
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Model presentation – Main figures
3 615 collection points
2 172 locations
52 571 tons of glass (24 kg/VHU)
142 collection platforms
“6 customers” (glass demand)
4 different transportation vehicles
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Résults
Maltha
Base case
PATE
Solover 2
SRPVI
Solover 1
Brianne
Scénario
Number of
tons
Collection
Base Case
51 769 t
98 %
2 068 452 €
40 €/t
Platforms
Transfer
33 614 €
1 276 480 €
0,7 €/tConfidential
24,7data
€/t
Total
CO2
3 378 546 €
65,3 €/t
2 137 t
41,3 kg/t
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Examples of scenarios
Increase of the number of platforms
Scenario
Number of tons
Collection
Platforms
Transfer
Augmentation du
nombre de plateformes
51 797 t
98,5 %
1 643 544€
31,7 €/t
37 947 €
1 321 414 €
Confidential
data
0,7 €/t
25,5 €/t
Total
CO2
3 002 904 €
58 €/t
-11%
1 929 t
37,25 kg/t
-10%
Total
CO2
2 891 566 €
55,8 €/t
-15%
1 769 t
25,8 kg/t
-47%
Existing platforms relocation
Scenario
Number of tons
Collection
Platforms
Transfer
Relocalisation des
plateformes
51 797 t
98 %
1 519 530€
29,3 €/t
37 940 €
1 334 096 €
data
0,7 €/t Confidential
25,8 €/t
Use of new transportation companies (higher capacity vehicles)
Scenario
Number of tons
Collection
Nouveaux
transporteurs pour le
transfert
(25 à 27 tonnes)
51 769 t
98 %
1 922 293 €
37,1 €/t
Platforms
Transfer
56 061 €
690 785 €
data
1,1 €/t Confidential
13,3 €/t
Total
CO2
2 669 139 €
51,5 €/t
-14%
1 740t
33,6 kg/t
-19%
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Average cost VS. % of collection
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65
Existing platforms
Confidential data
55
50
Target cost
Average cost (€)
60
45
Relocated platforms
40
35
100%
90%
80%
70%
60%
50%
40%
Number of collected tons (percentage)
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Conclusions of the study
Conclusions
• The number and the location of each actor of the supply chain have a
strong impact on the total cost
• It is necessary to consider several key variables to reach the objectives of
the project
• It is important to gather products (minimize number of platforms) to
decrease significantly logistics costs
The use of CAST can be adjustable depending on your needs
Importance of the size of the network and the granularity of the
model
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Thank you for your attention
Institut Supérieur d’Études Logistiques
Quai Frissard – B.P. 1137
76063 LE HAVRE CEDEX
Tel.: +332 32 74 49 00
Fax: +332 32 74 49 11
Email: isel@univ-lehavre.fr
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