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.
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:
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.
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.
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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