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Introduction

Dutch Fresh Port's goal is to dramatically impact the continent's economy sustainably and innovatively as Europe's leading Argo logistics supplier, partnering with the Port of Rotterdam. The reefer hub is a component of the Dutch fresh port where reefer containers will be stored from the port terminal before being delivered to the destination companies/clients without congestion. This location will be electronically fitted for storing full or empty reefer containers. This individual recommendation report is based on the 3Ps (People, Profit, and Planet) and will help Reefer Hub perform a successful operation aligned with Reefer Hub's aim.

Planet: Environmentally Friendly Activities

According to an article released by the European Environment Agency (EEA, 2013), environmental initiatives (air emissions) should be directed toward an overall system rather than a choice between clean air and climate change mitigation. Environmental sustainability is frequently expressed simply by CO2 emission/GHG/Carbon footprint in optimization assessment and performance analysis.

Reduced air emissions play an important role in promoting sustainable development. Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and atrium trifluoride (NF3) are all recognized greenhouse gases (GHGs) that contribute to climate change (UNCC, 2018). Additionally, reducing greenhouse gas emissions in transportation is a difficult task that necessitates an examination of several significant variables and causes. According to the International Energy Agency, CO2 emissions are expected to climb by 41% by 2030, surpassing the 9.3 billion tons recorded in 2007 (Zang et al., 2020). Furthermore, Lyu et al. (2021) estimate that transportation accounts for approximately 32% of CO2 emissions and 27% of overall greenhouse gas emissions. The footprint of greenhouse gas emissions and the potential for global warming are commonly used in environmental sustainability assessments. However, environmental sustainability encompasses much more than just carbon emissions and climate change.

The primary focus of this pillar is reduced GHG emissions linked with logistics and container handling operations and the primary measures to ensure this goal will include the use of environmentally friendly fuels and technology as well as maximizing GHG emissions reduction in transportation electrification, effective temperature-controlled store infrastructure design, and crafting effective waste management plans (Nash, 2010). The critical KPIs under the environmentally friendly activities include:

  1. Rate of Alternative Fuel Efficiency: Reefer hubs can assess their transportation efficiency rate in terms of unit consumed and price per unit using this KPI. It will also show how much CO2 each fuel emits per kilometer. As a result, reefer hubs can gain control over their transportation costs and CO2 emissions. Biofuel, in particular, could be an appealing solution to hasten the transition to entirely electric vehicles by 2030.
  2. Alternative energy utilization rate: This KPI can determine how much capacity is being used. There are several methods for calculating a proportion of renewable energy, and selecting one is not easy. Because of the directive's potential impact on energy markets, the technique of calculation must be carefully considered. The percentage of renewable energy can be calculated using a variety of techniques, with very different results. Several factors should be considered when selecting a method: methodological and data accuracy, costs, simplicity, predictability, and adaptability.
  3. Processed Waste: Using this KPI, Reefer Hub may track its progress toward its aim of reprocessing waste in tons. In addition to environmental policy, waste processing will assist the reefer hub in aligning with other enterprises that use trash as a raw resource in their manufacturing. In that case, another KPI, such as the quantity of waste used, can be employed. In that case, another KPI, such as the quantity of waste used, can be employed. Alternatively, the reefer hub can work with the town to implement the waste management program. The waste processing activity of Reefer Hub is critical for local residents, the environment, and businesses because it ensures that waste is effectively managed within the organization and that fewer materials are dumped in landfills. The decreased pollution and greenhouse gas emissions into the atmosphere benefit people's health and well-being. You must first identify two variables in order to determine your waste reduction rate. These are the raw materials used in a given time as well as the raw materials wasted in the previous period. Then, divide the first variable by the second variable and multiply the outcome by 100 to get a percentage.

Profit: A Smooth Business Process for Maximum Profit

The central focus under this dimension is to ensure smooth company operations by reducing congestion through measures that include container space utilization, good time management for freight vehicles, and an error-free payment process. Congestion on the road costs both transporters and freight owners’ money (Environment, Forestry & Fisheries, 2011). Nowadays, the expense of congestion to and from ports is exorbitant. In addition, according to Rouhani 2016, under certain conditions, transportation practitioners generally believe that road pricing (RP) can successfully deliver a better transportation service for the port containers, particularly in terms of mitigating traffic congestion consequences. This concept could alleviate congestion and/or improve the port system operation, providing drivers with additional benefits. Some of the vital KPIs for this dimension include.

  1. The utilization rate of container capacity: When it comes to container storage capacity (20 containers in total), this KPI will tell us how many containers are handled in a month and how we can avoid container congestion in the reefer hub. A smart capacity plan for the reefer hub would be to increase container storage vertically so that additional containers may be occupied. The capacity utilization formula is averagely occupied capacity/total capacity 100%.
  2. Truck Visit Time: This is the amount of time truckers spend at the reefer hub when they arrive to pick up and drop off containers. This KPI is critical to monitor because it has a substantial impact on a trucking company’s bottom line. As a critical link in the supply chain and a big client of reefer hub, they must support them and provide the best services possible. As a result, this KPI will identify the bottlenecks that occur during standard time, and the reefer hub will be able to identify and control the cause of the congestion. The vehicle Appointment system aids in the monitoring of this indicator's performance. The reefer hub can use this system to measure daily/weekly congestion time and take the required steps to reduce it.
  3. Freight Bills Accuracy: Inaccurate freight invoices irritate the parties and increase the price. In addition to the hours spent reconciling incorrect bills, the extra expense must be considered. Sometimes the extra cost must be borne by the shipper or passed on to consumers who have already been charged for freight. Both choices are insufficient. As a result, this KPI assists reefer hub in gaining control over B2B payment precision. To calculate billing accuracy, divide the number of correct bills by the total number of bills. When 61 accurate invoices are split by 64 total bills, billing accuracy is 95%.

People: Employee and Customer Satisfaction

This pillar on People is centered on the relationship with corporate social responsibility (CSR). CSR is defined as an organization’s obligation to address the requirements of their stakeholders, as well as stakeholders' responsibility to hold organizations accountable for their activities. In addition, CSR rests on the ability of the port to advance human rights; diversity, equity, and inclusion; gender equity; maintain a healthy and safe work environment as some of the projects that the Dutch Fresh port may explore as part of its CSR aims. Not only are CSR activities useful to stakeholders, but an organization that incorporates CSR into its business plan is also beneficial to the firm. To this end, this pillar will centrally be focused on maintaining staff happiness to ensure customer retention. Some of the measures that will be adopted will include employee and consumer loyalty evaluation. The KPIs for this element will primarily include:

a. Rate of employee retention: Because employees are such an important aspect of Dutch Fresh Port, it is critical to track the employee retention rate after specified periods. The employee retention rate is the percentage of workers that remained on the payroll from the beginning to the end of a given period. This excludes any recent hiring made during that time frame. The retention rate may be reviewed annually or weekly, depending on the data collected by the reefer hub.

Employee retention is a key sign of employee happiness as well as the effectiveness of a company’s management, hiring, and training processes. High retention can help a company save money on hiring and onboarding while also avoiding productivity loss. The retention rate may be evaluated annually or weekly, depending on the data collected by the reefer hub. To compute this KPI, divide the total number of employees at the end of a period by the total number of employees at the start of the same period, then multiply the result by 100 to get the employee retention rate. If retention is low, other KPIs such as employee happiness, absenteeism, and dismissal rate will be examined.

b. Customer retention rate: One of the most significant KPIs for Reefer Hub. The customer retention rate is determined by Reefer Hub’s service level. The better the on-time and complete delivery rate, the higher the satisfaction rate. And, based on satisfaction, there is a better likelihood of boosting retention. Customer retention refers to your capacity to provide a service that entices customers to return for more. It suggests they will not seek the service from competitors. When you focus on customer retention, you may raise your ROI, and loyalty, and bring in new consumers through word of mouth. Customer retention is critical, and one of the most essential ways to increase this is through staff happiness.

Smooth information flow, extensive communication, and partnerships, including classified material, encryption, and protection are also required to ensure customer satisfaction. The customer retention rate is computed by subtracting new customers from ending customers and dividing the result by the period’s starting number of customers.

References

European Environment Agency. (2013, September 19). Air quality in Europe — 2013 report . https://www.eea.europa.eu/publications/air-quality-in-europe-2013

Environment, Forestry & Fisheries. (2011). 2.6 Description of goals | National Waste Management Strategy . (n.d.). 2.6 Description of Goals | National Waste Management Strategy. http://wastepolicy.environment.gov.za/home/nwms_v2/2/2_6

Lyu, P., Wang, P-S., Liu, Y., & Wang, Y. (2021). A review on air emissions assessment: Transportation . (2018, May 21). A Review on Air Emissions Assessment: Transportation - ScienceDirect. https://doi.org/10.1016/j.jclepro.2018.05.15

Nash, C. (2010). Policy instruments for reducing greenhouse gas emissions from transport in Europe. International Journal of Green Economics , 4 (2), 170. https://doi.org/10.1504/ijge.2010.035338

Rouhani, O. M. (2016, March 11). Next Generations of Road Pricing: Social Welfare Enhancing . MDPI. https://doi.org/10.3390/su8030265

Zhang, L., Long, R., Li, W., & Wei, J. (2020, May). Potential for reducing carbon emissions from urban traffic based on the carbon emission satisfaction: A case study in Shanghai. Journal of Transport Geography , 85 , 102733. https://doi.org/10.1016/j.jtrangeo.2020.102733

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