This presentation provides key insights into sanitation logistics. It shows logistic challenges in developing countries. It gives an overview on current projects at the eawag. For further information, please contact Heiko Gebauer (heiko.gebauer@eawag.ch)

1. Sanitation logistics
Heiko Gebauer
Group Leader
Business Innovation
Environmental Social Sciences (EAWAG), Zurich, Switzerland
Associate Professor, Center of Service Research, Karlstad University, Sweden
London, 07-10-2013

2. Logistic experiences
Spare parts logistics in
Asia (China)
Consumable distribution in
Europe
UK
GE
FR CH AU
SP
IT
TU

3. Agenda
• How do successful practices overcome the
logistic and distribution challenges in lowincome countries?
• What logistic approaches are we using at the
Eawag?
• What are other practices in sanitation
logistics?

4. Dabawalla – lunch box distribution in Mumbai

5. http://priusfallacy.files.wordpress.com/2012/08/dabba.jpg

7. What can we learn from the Dabbawalla system?
• Logistics is build around people rather than
technologies
• Challenging logistic tasks can be done!!!
(„Workers
have 40 seconds to load the crates of dabbas onto a train at major
stations and just 20 seconds at interim stops“)
• Implementing team incentives - Seven to eight
mukadams typically aggregated their efforts and
constituted a profit centre
• Human resource management is a key factor
• Zero-failure tolerance
• Adapting information management to illiterate staff

8. Coca-Cola – Manual Distribution Centers in Africa

9. What can we learn from the Coca-Cola system?
•
Entrepreneurship does not emerge for free – a
dedicated education and continuous business
support is necessary
•
Sense of ownership - let people take care of
equipment – selling the liquid rather than bottles
•
Local entrepreneurs can make distribution much
more cost-efficient
•
Despite a general concept, there is a strong need
for contextualizing and localizing the distribution
chain
•
Highly complex distribution chain – instead of endto-end, it is more than single-to-many

10. Agenda
• How do successful practices overcome the
logistic and distribution challenges in lowincome countries?
• What logistic approaches are we using at the
Eawag?
• What are other practices in sanitation
logistics?

11. Sanitation logistics @ Eawag
Blue diversion
(Re-invent the toilet challenge)
Vuna
(Valorisation of Urine Nutrients
in Africa)

12. Logistics for linking blue diversion and
resource recovery plant
• Satellite image of Kyebando-Kisalosalo
slum
• GIS analysis
• Determination of route length (e.g.,
closest facility, service area, and
Origin-Destination (OD) cost matrix)
• Route planning

13. Source: Rafael Schmitt (2011)

14. Key indicators
• Distance access -> access [km]
• Distance collection -> RRP [km]
Effective Working hours/day
• Required services/facility
• Emptying time per facility
• Worker/vehicle
• Vehicle costs & lifespan
• Maintenance cost
• Depreciation rate
Source: Rafael Schmitt (2011)

15. Logistics for linking blue diversion and
resource recovery plant
Source: Rafael Schmitt (2011)

16. One cent per user & day for the logistics
Source: Rafael Schmitt (2011)

17. Sanitation logistics @ Eawag
Blue diversion
(Re-invent the toilet challenge)
Vuna
(Valorisation of Urine Nutrients
in Africa)

18. Urine collection in Cliffdale – a rural
development area in Durban municipality (1)

19. Urine collection in Cliffdale – a rural
development area in Durban municipality (2)

20. Business model thinking guides the logistic
approaches
Decentralized Sanitation
Product Management
Model (DeSam)
How can can we create VALUE?
KA
CR
VP
KP
KR
C
CS
DM
R
KP – Key Partner, KA – Key Activities, KR – Key
resources, VP – Value proposition, CR - customer
relationship, DM – distribution & marketing, CS Customer segment, C – Cost structure, R - Revenues

21. Skate to where the VALUE will be ...
Price for a single cup of
coffee ($)
 Experience x80
5
 Service x52
4
3
2
 Convenience x6
1
Supermarket
Café
Nespresso
Starbucks

22. Skate to where the VALUE will be ... (2)
Solid fertilizer prices
CHF/kg 30
20
10
< 1 CHF / kg
0
Berry &
fruit
fertilizer
Garden
fertilizer
Balcony Long-term Flower
plants
fertilizer
soil
fertilizer
Liquid fertilizer prices
CHF/kg 30
20
10
0
Flowers
Source: Corine Uhlmann
Liquid
fertilizer
Indoor
plant
Orchis
Cacti

23. “Fair-trade” fertilizer (pro-poor)
Key partners
• M-Pesa (South
Africa) (for cashsolution)
• Local communities
Key activities
Value proposition
• Installation of
• Creating social
collection tanks
benefits through a
• Marketing of
“Fair-trade”
urine drop-off
fertilizer brand
Key resources
• Managing money
What
transfer key resources are required?
Distribution
• Do-it-yourselfgarden center
• Small packages
• (online
subscription)
Key resources
• Collection point
• Transportation
vehicle
• Treatment
• Branding &
marketing skills
Marketing
• “Branding”
fertilizer as a
social good
• Shop-in-Shop
concept
Cost structure
• Partly subsidized by EWS
• Investment & operational costs of the
collection points
• Transportation costs
• Reactor costs (investment & operation)
• Branding & marketing, packaging, market
development
• Incentives for dropping-off the urine
Customers
• Less price
sensitive
gardeners
• High income
• Social
responsibility
• Flower and
inhouse plant
lovers
Revenue streams
• (100%-x) of the fertilizer price can be considered
as a donation for the income of poor people
(incentives)
• x% covers the investment and operational costs

24. Incentive approach
Initial situation
• Drop-off system depends on the
distance between collection point
and UDDT and the incentives
Collection points
• Percentage (number) of people
according to distance to the collection
points
3 collection points
7 collection points

25. “For Durban” fertilizer
Key partners
• Small subcontractors
executing the
logistics
Key activities
Value proposition
• Collection &
• Replacing existing
transportation
fertilizer
(sub-contracting
consumption with
and performance
a local (municipal)
Key resources
measurement)
fertilizer
What key resources are required?
• Reactor
(operation &
maintenance)
Customer
Customers
relationships
• City of Durban
• Direct relationship • Departments
to different city
taking care of
departments and
green areas in the
the subcity (e.g. beach
contractors doing
front, parks,
the gardening
stadium)
Key resources
• Training logistic
sub-contractors
• Treatment
Marketing
• Internal marketing
• Acceptance of the
municipality
Cost structure
• Collection & transportation
• Urine treatment and fertilizer production
Revenue streams
• Existing fertilizer expenditures are re-directed to
cover the costs for collecting, treating urine and to
produce fertilizer

26. Institutionalized approach – urine tanks get
collected and emptied
Pilot scale
• EWS created teams picking-up the
urine
Optimizing
• Reconsidering the logistics
• Localizing the logistics
• Improving the prediction of urine
production

27. “Large” fertilizer user with a social interest
Key partners
• Depending on the
collection
approach
Key activities
Value proposition
• Developing such
• Promoting the
as a strategic
social
partnership
engagement of a
• Collection &
large fertilizer user
Key resources
transportation
to the municipality
What key resources are required?
• Treatment
Key resources
• Treatment reactor
• Transportation
vehicles
• Risk
management
Cost structure
• Large user covers cost for the treatment
(investments and operation) and well as parts of
the collection costs
• EWS subsidies the collection
Customer
Customers
relationships
• Large company
• Strategic
consuming
partnership
traditional fertilizer
between EWS and • Looking for a
the customer
differentiation in
the local market
• Differentiation
Marketing
achieved through
• One-to-one
social contribution
relationship
• Customer can use • (e.g., Coca-Cola,
Heineken …)
its social
contribution in the
marketing
campaign
Revenue streams
• “Large” fertilizer user does not pay, but rather
covers emerging costs

28. Agenda
• How do successful practices overcome the
logistic and distribution challenges in lowincome countries?
• What logistic approaches are we using at the
Eawag?
• What are other practices in sanitation
logistics?

29. Sanergy‘s low-tech solution seems appropriate

30. X-runner’s new key performance indicators
• How many people put the bucket in
front of the house? (Key performance
indicator – measured 16%, goal 60%)?
• How many people pay in time?
(measured 88%, goal 95%)?
Percentage of on-time Payment for
Monthly users
100
90
80
70
60
50
40
30
20
10
0
Jan
Feb
Mar
Apr
May
Jun
Jul

31. Conclusions
Successful practices
• Logistics is finally about people (collectors &
entrepreneurs) doing it and not researchers simulating it
• People AND technologies
Eawag
• GIS data, logistic approaches, and embedding these into
an overall business model
Sanitation logistics
• Small things make a difference, robust and fool-proofed
approaches

32. Thank you very much