Towards a Shared European Logistics Intelligent Information Space European Green Logistics Strategies White Paper: Overall Perspective

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1 Towards a Shared European Logistics Intelligent Information Space European Green Logistics Strategies White Paper: Overall Perspective This project has received funding from the European Union s Horizon 2020 research and innovation programme under the Grant Agreement No

2 Document Summary Information Grant Agreement Acronym SELIS No Full Title Towards a Shared European Logistics Intelligent Information Space Start Date 01/09/ 2016 Duration 36 months Project URL White paper Work Package WP2 SELIS Business Innovation Models Submission date Nature Report Dissemination Level Lead Beneficiaries EUR, ISL, MRK, ULB, ZLC Responsible Author Rob Zuidwijk (EUR) Contributions from Revision history (including peer reviewing & quality control) Version Issue Date Stage Changes Contributor(s) Comments 0.1 March 8 1 Rob Zuidwijk Overview EGLS with preliminary focus on EGLS1 and EGLS2 0.2 April 24 1 Extension paper with EGLS3 EGLS7 and research agenda and overview foreseen innovations Rob Zuidwijk Overview EGLS for EGLS1 EGLS7 SELIS, 2016 Page 2

3 Executive Summary To be written. Disclaimer The content of the publication herein is the sole responsibility of the publishers and it does not necessarily represent the views expressed by the European Commission or its services. While the information contained in the documents is believed to be accurate, the authors(s) or any other participant in the SELIS consortium make no warranty of any kind with regard to this material including, but not limited to the implied warranties of merchantability and fitness for a particular purpose. Neither the SELIS Consortium nor any of its members, their officers, employees or agents shall be responsible or liable in negligence or otherwise howsoever in respect of any inaccuracy or omission herein. Without derogating from the generality of the foregoing neither the SELIS Consortium nor any of its members, their officers, employees or agents shall be liable for any direct or indirect or consequential loss or damage caused by or arising from any information advice or inaccuracy or omission herein. Copyright message SELIS Consortium, This deliverable contains original unpublished work except where clearly indicated otherwise. Acknowledgement of previously published material and of the work of others has been made through appropriate citation, quotation or both. Reproduction is authorised provided the source is acknowledged. SELIS, 2016 Page 3

4 Table of Contents 1 Introduction Summary of the EGLS EGLS1: Collaborative Planning and Synchromodality Problem formulation and motivation Research questions Foreseen Innovations and Business Relevance EGLS2: Collaborative Risk and Value Sharing Problem formulation and motivation Research questions Foreseen Innovations and Business Relevance EGLS3: Supply Chain Visibility and CAPA Problem Formulation Research Questions Foreseen Innovations and Solutions EGLS4: Supply Chain Finance Problem Formulation Research Questions Foreseen Innovations and Business Relevance EGLS5: Environmental Performance Monitoring Problem Formulation Research Questions Foreseen Innovations and Business Relevance EGLS6: Supply Chain Optimization Problem Formulation Research Questions Foreseen Innovations and Business Relevance EGLS7: e Compliance and Customs Problem Formulation Research Questions Foreseen Innovations and Business Relevance Overall EGLS Research Agenda Foreseen Innovations and Business Relevance Bibliography List of Figures Figure 1: Relative positioning of EGLS... 6 Figure 2: Innovative Platform Dashboards and Toolboxes List of Tables Table 1: Research Questions for Collaborative IT Platform Table 2: Research Questions for Toolboxes... Error! Bookmark not defined. Table 3: Research Questions for Dashboards Table 4: Research Questions related to Digital Platform Business Models SELIS, 2016 Page 4

5 Glossary of terms and abbreviations used Abbreviation / Term Description SELIS, 2016 Page 5

6 1 Introduction This white paper presents an overall view on the European Green Logistics Strategies (EGLS). These EGLS are discussed in separate white papers. We present brief definitions of the seven EGLS below: EGLS1: Collaborative Planning and Synchromodality EGLS1 is an operational strategy which determines how logistics resources are synchronized in an optimal way to achieve certain performance targets, in particular costs, emissions, and reliability; EGLS2: Collaborative Risk and Value Sharing EGLS2 is an organizational strategy which determines how incentives are to be aligned in such a way that the intended collaboration can be achieved; EGLS3: Supply Chain Visibility and CAPA EGLS3 is a strategic capability using supply chain visibility to take appropriate responsive or pro active action in transport systems; EGLS4: Supply Chain Finance EGLS4 is a strategic capability using supply chain visibility to reduce financing costs in transport systems; EGLS5: Environmental Performance Monitoring EGLS5 is a strategic capability using supply chain visibility to reliably report environmental performance of transport systems; EGLS6: Supply Chain Optimization EGLS6 is a supply chain strategy that focuses on inventory management in conjunction with operational strategies for synchromodal transport; EGLS7: e Compliance and Customs EGLS7 is a strategic capability using supply chain visibility to reliably report performance of cross border supply chains in compliance with customs regulations. Note that the EGLS are either strategies or strategic capabilities; we will depict all of them as strategies for convenience. Formally, however, a strategy is a plan which sets goals, determines actions to achieve the goals, and identifies the required resources, while a strategic capability is the ability to perform certain actions (with the identified resources and goals set). A strategic capability therefore supports a strategy. The strategies can be applied to a variety of domains, including the domains of container logistics and urban distribution. The strategies are also related and can be positioned relative to each other. This is depicted in Figure 1. The core rationale is that Supply Chain Visibility enables Supply Chain Performance. Collaborative Planning and Synchromodal Transport (EGLS1) represents an operational strategy to improve performance by exploiting visibility through synchronized deployment of logistics resources in a collaborative way. Collaborative Risk and Value Sharing (EGLS2) is an organizational strategy that aligns incentives in such a way that required collaboration is achieved. Hence, both EGLS1 and EGLS2 are strategies that aim at the enabling role of visibility, as indicated in Figure 1. Visibility and Corrective and Preventive Actions (EGLS3) is a strategic capability that establishes visibility, but also represents the capability to take corrective or preventive actions while using visibility. Supply Chain Financing (EGLS4) is a strategic capability to reduce financing costs by the use of supply chain finance instruments while exploiting visibility, applied to the transport and logistics domain. KPIs and Environmental Performance Management (EGLS5) is a strategic capability that enables reliable environmental performance management using visibility, in particular carbon footprint reporting. Supply Chain Optimization (EGLS6) is a strategy that uses visibility to optimize the design of services on networks in a dynamic way. E Compliance and Customs (EGLS7) makes use of the data pipeline to enable supply chain compliance, in particular with customs regulations. Figure 1: Relative positioning of EGLS SELIS, 2016 Page 6

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8 2 Summary of the EGLS The SELIS project aims at developing a Shared European Intelligent Information Space by fostering innovation in different aspects of transportation. This will be achieved by means of embracing a wide spectrum of logistics perspectives and creating a unified operational and strategic business innovation agenda based on new pan European Green Logistics Strategies that will be supported by digital platforms, so called SELIS Community Nodes. The European Green Logistics Strategies consist of a number or strategies and strategic capabilities to exploit supply chain visibility to improve reliability, efficiency, and green performance of logistics networks. Important application domains are urban distribution, maritime transport of freight, and port hinterland transportation of containers. A European Green Logistics Strategy (EGLS) is defined as a reference cross domain strategy, customizable to business specific strategies, focused on collaboration and information sharing, for achieving meaningful, measurable, and cost effective emissions reduction. In this section, each of the EGLS will be summarized along the following aspects: (1) problem formulation and motivation; (2) research questions; and (3) foreseen innovations and solutions. 2.1 EGLS1: Collaborative Planning and Synchromodality As mentioned earlier, EGLS1 is an operational strategy that synchronizes logistics resources to optimize costs, emissions, and reliability. It sets the stage for the planning and execution of transport processes, while the stakeholders level of collaboration and information sharing is given. Note that the relevant resources are deployed by multiple organizations, and that demand originates from multiple customers. This requires resources to be mutually synchronized by horizontal or vertical collaboration, and supply logistics services to be synchronized with demand Problem formulation and motivation We consider the problem of deploying synchromodal transport based on collaboration between different stakeholders. The level of collaboration among stakeholders includes the extent to which stakeholders share information, and therefore the performance of the transport operations. At the current state of the art, synchronized collaborative freight systems have been studied and implemented only from the perspective of a central planner that owns transport means and uses subcontracted services. Collaboration is believed to bring benefits, and this is often the case as pooling resources helps to better hedge for uncertainties and enables the flexible deployment of those resources that are best fit to meet demand. In other words, in case a larger coalition of actors in the transport system joins their resources, it has more opportunities to deploy those resources to meet joint demand, which enables better performance in terms of costs, emissions, and reliability. Observe that trade offs between reliability and efficiency need to be made. We need to define, compute, and operate efficiency and reliability of a network, while taking into account stakeholder perspectives, and we need to determine the impact of different collaborative agreements on the network performance Research questions To articulate the innovative elements regarding EGLS1, we focus on two aspects. First, the level of collaboration and information sharing, i.e. to what extent do stakeholders collaborate (e.g. arms length or at strategic level) and exchange information (quality of information shared). Second, we focus on the structure of collaboration, i.e., who is collaborating and exchanging information with whom, and its impact on performance of the synchromodal transport processes. The following research questions address the impact of collaboration on network performance, while articulating the need to define reliability on synchromodal transport networks. RQ 1.1: What is the impact of the level of collaboration, and the level of information sharing, on reliability and efficiency of synchromodal transport processes? How does one define reliability of synchromodal transport processes? How are planning and execution processes designed to capture the potential value of SELIS, 2016 Page 8

9 collaboration and information sharing? In the trade off between reliability of efficiency, what is the price of reliability for synchromodal systems? The following research questions support further understanding of the value of collaboration and operational information sharing between specific stakeholders, and will help the construction of collaborative agreements that can effectively enable synchromodal planning and execution. RQ 1.2: What is the impact of the various collaborative agreements between stakeholders on synchromodal transport performance? What is the price of anarchy? Which collaborative agreements add the most value? What operational issues requires incentive alignments from the collaborative agreements? Observe that these questions do not address the issue of incentive alignment, which is the in scope of EGLS2, but more aim at assessing the value of aligned incentives that establish certain modes of collaboration between stakeholders Foreseen Innovations and Business Relevance The research investigates the impact of collaborative arrangements at different levels in synchromodal transport. To convince stakeholders to engage in sustain collaboration, a collaborative platform should produce a practically viable Collaborative Synchromodal Planning Toolbox. Moreover, the collaborative planning tool should provide a dashboard that displays performance improvements in terms of costs, emissions, and reliability. The dashboard should not only display operational performance, but should also display the results of analyses of historical data. The dashboard should capitalize on the research outcomes regarding network reliability and feature a synchromodal Network Reliability Dashboard. This dashboard would be fed by planning and execution data. The dashboard should be able to help evaluate the entry of new stakeholders to the collaborative platform by identifying their contribution to the system performance. This supports the digital platform strategy that determines the appropriate level of collaboration and information sharing among the incumbents and the potential value of new entrants to the platform. 2.2 EGLS2: Collaborative Risk and Value Sharing As mentioned before, EGLS2 is an organizational strategy which determines how incentives are to be aligned in such a way that the intended collaboration can be achieved. EGLS2 could be scoped as taking the value of collaborative efforts as a given (network effect, etc.), and then determine appropriate mechanisms, based on value and risk sharing, that help establish an optimal level of collaboration. Collaboration could be horizontal, vertical, or combinations thereof. The strategy is a collaborative strategy, where the relevant resources are deployed by multiple organizations that could collaborate, and demand originates from multiple customers. Resources are mutually synchronized in an optimal way, and the supply of logistics services by the use of these resources is also synchronized with demand. The strategy focuses on the design phase, where stakeholders identify and chose suitable partners and identify the practical modes of collaboration Problem formulation and motivation Both at the operational level and at the organizational level, various levels of maturity can be discerned in collaboration. The dimensions of collaboration are: (1) information exchange, (2) operations, i.e., design of planning and execution, and (3) organization, i.e., design of governance structure and risk and gain sharing mechanisms. Observe that EGLS1 focuses on operational aspects and the corresponding information exchange, while EGLS2 focuses on the organizational aspects and the corresponding information exchange. The focus of EGLS2 is on the design of enablers that foster higher levels of organizational collaboration Research questions In order to further investigate the roles and governance structures that are supporting new cooperative business models that are able to support the common vision towards the Physical Internet, it is necessary to first establish a detailed common typology of the existing and emerging collaboration models for transport across different dimensions. The first research question concerns the need to further investigate, characterize and collaborative models in transport. SELIS, 2016 Page 9

10 RQ 2.1: How can we identify, characterize, and categorize existing and emerging collaborative models for transportation in such a way that we establish a common typology of collaboration? The question of transport collaboration has so far been investigated either at a very high level of description or has been limited to a specific domain (e.g. urban freight transport or to container transport). The second research question aims to assess the most promising business models and governance structures that can foster collaborative transportation environments across different modes and scales of the transport system. RQ 2.2: How can we develop business models and governance structures that foster collaborative transportation environments? Gain sharing mechanisms in horizontal collaborative networks have been extensively addressed, but much less attention has been given to gain allocation in more complex collaborative networks combining horizontal and vertical collaboration. RQ 2.3: How to design incentives and gain sharing mechanisms supporting new transportation business models that feature horizontal and vertical collaboration or combinations thereof? Moreover, gain sharing methods in ad hoc collaborations bring novel research challenges to the table as well. Most organisations apply well developed risk transfer measures as well as effective internal control measures treating the most crucial enterprise risks. However, the collaborative risk management schemes are underutilized. Indeed, very few approaches consider the identification of risk interdependencies between partners. This opens the door to further investigation of risk sharing mechanisms. RQ 2.4: How to design risk sharing mechanisms in collaborative transportation networks The following aspects could be addressed: (1) Increase visibility on the risks in the collaborative transport solutions; and (2) mechanisms for allocating risks between different heterogeneous collaboration partners Foreseen Innovations and Business Relevance A Benefits and Risks Dashboard increases the visibility on the costs, benefits and risks of the existing collaborations, and it helps monitor and adjust the design of different collaborations in order to maximize their profitability and minimize the associated risks. It assesses the costs, benefits and risks of the potential collaborations in order to select those that bring the most value. It also reduces the time and effort necessary for setting up new collaborations through a trusted and seamless process, ultimately leading towards higher levels of logistics optimization and decreased costs. It even enables ad hoc collaboration through a trusted and seamless process which takes into account the associated risks and benefits, ultimately leading towards higher levels of logistics optimization and decreased costs. This supports the digital platform strategy as mentioned under foreseen innovations and solutions of EGLS EGLS3: Supply Chain Visibility and CAPA EGLS3 is a strategic capability using supply chain visibility to take appropriate responsive or pro active action in transport systems Problem Formulation Visibility is a prerequisite for transport planning, execution and monitoring. Lack of visibility hinders supply chain agility and transport and logistics performance. Transport planning processes such as the planning of transport capacity, the allocation of cargo to available transport capacity, and route planning, are highly dependent on accurate and timely information. During transport execution, information on the condition of infrastructure, traffic, availability of resources, and information on status of cargo at the shipment and consignment levels, are relevant. Monitoring (and re planning) is highly dependent on visibility. It allows for the detection and signaling of anomalies and deviations from plan. It provides the ability to foresee such deviations by estimates of the probability of occurrence, and detect deviation at an early stage. It also creates the ability to evaluate and select corrective actions such as re schedule or switch to another SELIS, 2016 Page 10

11 resource, asset, or service. As such, visibility helps increase the predictability of events. The strategic capability supports both the operational strategy EGLS1 and the organizational strategy EGLS Research Questions The strategic capability generically addresses the benefits of supply chain visibility, and provides methods to improve the level of visibility. RQ 3.1: How to quantify the effect of lack of visibility for individual actors across the supply chain? How to achieve higher visibility? How to overcome the lack of visibility, and how to better exploit higher visibility? The strategic capability focusses on the use of supply chain visibility to trigger corrective or preventive actions. It also provides methods to move toward pro active mode. RQ 3.2: How to devise methods to switch from corrective actions (re active) to preventive actions (proactive)? Supply chain visibility requires a level of information exchange between actors. As benefits need not be distributed in line with efforts required to arrive visibility, incentives for information sharing may be required. Also, barriers to information sharing need to be overcome, such as organizational privacy concerns. A digital platform requires a business model that aligns its functionalities (information sharing and collaborative mechanisms) and business model characteristics, such as value propositions, customer relationships, key partners, etc. RQ 3.3: How to ensure correct match between digital platform functionalities and corresponding business models? Foreseen Innovations and Solutions Development of Visibility Toolbox that improves visibility overcoming data sharing barriers in collaborative networks to enable higher data quality dimensions such as accuracy and timeliness. The digital platform will provide an Event Based Business Analytics Toolbox that support improved resilience and agility in transport and logistics. The tool exploits supply chain visibility through event detection and anticipation. The tool has dynamic planning capabilities for dynamic planning for corrective and preventive actions. To overcome information sharing barriers, new business models based on information sharing will be provided, using the concept of information as a service. 2.4 EGLS4: Supply Chain Finance EGLS4 is a strategic capability using supply chain visibility to reduce financing costs in transport systems. Supply chain finance is the use of financial instruments, practices and technologies to optimize the management of the working capital and liquidity tied up in supply chain processes of collaborating business partners. Supply chain finance is largely event driven. Each intervention (finance, risk mitigation, or payment) in the financial supply chain is driven by an event in the physical supply chain. The development of advanced technologies to track and control events in the physical supply chain creates opportunities to automate the initiation of supply chain finance interventions Problem Formulation This capability aims to exploit supply chain visibility to facilitate financial liquidity at low cost for different actors within transportation networks by resolving information asymmetries with financial providers. The exploitation of supply chain visibility may also reduce cost of financing by improved levels of confidence in logistics performance relevant to financial settlement Research Questions First research question concerns the design of selected supply chain financing solutions applied to logistics networks. RQ 4.1: How to determine the key parameter values for financial solution for logistics networks? Examples are extended payment terms for reverse factoring; discounting scheme per supplier for dynamic SELIS, 2016 Page 11

12 discounting; financial ceiling and interest rate for purchase order financing. <Are these the most relevant parameters in logistics industry?> The second research question concerns the technical implementation of the selected solutions. RQ 4.2: What are the IT requirements for the reliable, secure and timely functioning of a logistics network financing platform? The third research question concerns the Institutional aspects of the selected solutions. RQ 4.3: What are the adoption barriers to the selected solutions and how can they be overcome? Which departments within the customer shall be involved with on boarding logistics service providers and take ownership of supply chain financing? Are there any customer categories that should not qualify for participation? Foreseen Innovations and Business Relevance While the solutions under development are at the cutting edge of the supply chain financing field, we do not foresee any innovations in the sense of introducing solutions that have never been applied so far in the industry. We do anticipate that the application of these solutions in the logistics sector may contain novel elements. This would constitute a Logistics Network Finance Toolbox. The business relevance of supply chain financing instruments in logistics needs to be established. Such instruments play a vital role in a general supplier relationship management, while facilitating the delivery of core business strategies relating to growth, innovation and risk management. 2.5 EGLS5: Environmental Performance Monitoring EGLS5 is a strategic capability using supply chain visibility to reliably report environmental performance of transport systems. SELIS will develop a Carbon Footprint (CF) Reporting computational resource as a service that will deliver accurate carbon footprint calculations in real time and will allow benchmarks to be performed upon reliable carbon optimization strategies in logistic and transport activities: Calculate carbon emissions per shipment based on real time shipping data; Monitor compliance with the latest carbon accounting standards (including EN16258:2012 GHG LCA and reporting); enable web based graphical composite supply chain models for carbon optimization; generate view of air, ocean and road carbon efficiency as compared to sector benchmarks Problem Formulation Despite of increasing societal awareness regarding environmental performance, companies do not report their carbon footprint because it is a complex, time consuming process that may reveal sensitive business information. Besides, it is challenging, because there is no unified methodology to perform CF accounting; its dependency on geographical scope and means of transport precludes well defined LCA boundaries of logistics and transport activities, where many combinations of means of transport and logistics services in different regions are becoming much more common each day in this e globalized world. Given the increasing importance for companies to mitigate climate change, they need to report CF to face the impending commerce changes such as customers awareness (greener preferences), and imminent tariff barriers to non green products Research Questions The first research question discusses the role of collaboration and information sharing in environmental (carbon) accounting. RQ 5.1: What is the impact of the level of collaboration and information sharing on the reliability of carbon accounting? Could organizational privacy (sensitive information) be a barrier here? The second research question concerns the trade off between efficiency and environmental performance. RQ 5.2: What is the price of environmental performance? The third set of research questions concerns the agreements made in support of collaboration for reliable carbon accounting. SELIS, 2016 Page 12

13 RQ 5.3: What agreements would be required in transport and logistics to (1) remove organizational privacy barriers; (2) create incentives that coordinate carbon abatement efforts; (3) address cross border aspects such as green tariff barriers; (4) address market aspects such as customer concerns regarding validity of certificates Foreseen Innovations and Business Relevance A reliable and collaborative Carbon Footprint Reporting Dashboard provides a reliable carbon footprint accounting and reporting method. It helps anticipate future regulations regarding LCA, where some countries are introducing green barriers. It helps to adapt to new customers preferences for greener options and address customers concern regarding reliability of carbon footprint reports. This tool facilitates the use of green KPI s for targeting goals and searching for new operational collaboration in logistics and transport systems. These new collaborative schemes could require new organizational agreements for sharing resources or joint acquisitions of green assets such as transport fleets or warehouses. 2.6 EGLS6: Supply Chain Optimization EGLS6 (Supply chain optimization SCO) is a strategy that concerns decisions related to any potential process improvements to be undertaken in a supply chain, end to end, that is aiming to acquire and convert raw materials into products or semi finished ones and distribute to final customers. Optimizing decisions means to adopt any kind of strategic, tactical or operational activities that lead to improved performance (e.g. economic, environmental, risks, etc.) in a supply chain. In SELIS, SCO will be supported by models that help identify decisions that improve scheduling and assignment of transport resources in the downstream supply chains with focus on Service Network Design (SND) with dynamic characteristics Problem Formulation Existing tools and techniques for supply chain optimization show limited capabilities in relation to five fundamental factors: (1) data quality; (2) computational speed; (3) local vs global optimization goals; (4) collaboration; and (5) decision making time dimension. (1) Existing optimization techniques need data to be extracted and elaborated from companies information networks, e.g. ERP systems or other execution systems used by the companies. Lack of data quality can significantly affect the performance of SCO models. (2) Increased amounts of input data put a computational burden on existing optimization algorithms. Exact algorithms may need to be replaced by heuristics that are less computationally intensive and that provide satisficing solutions. (3) Lack of data sharing, forces models to be formulated and applied locally. SELIS community nodes can facilitate optimization of the whole supply chain. Particularly related to this issue is the problem of adopting a common framework to optimize environmental emissions. (4) Collaboration mechanisms and incentives need to be put in place to ensure that data will be shared. Likewise, collaboration can foster the computation of global optimization goals and related configuration of the supply chain. (5) Lack of quality data (1), computational speed (2), and lack of data collection and sharing (3), imply that very few optimization techniques can be applied for dynamic planning, which would improve the agility of companies Research Questions The first research question concerns the development of dynamic SND models. RQ 6.1: How can existing SND models be adapted to incorporate the use of real time data and aim at multiple objectives; e.g. trade off between economic and environmental performance? Which existing techniques for big data mining, predictive analytics, and efficient computing are most promising to improve computational speed of dynamic SND? SELIS, 2016 Page 13

14 The second research question concerns the impact of dynamic decision making in service network design. RQ 6.2: Can supply chain companies manage to make decision making more dynamically by means of dynamic SND? What would be the impact of such dynamic decision making? The third research question concerns the role of collaboration in dynamic service network design optimization. RQ 6.3: What collaborative initiatives could be developed in order to ensure global and multi objective optimization of service networks? Foreseen Innovations and Business Relevance A Dynamic Service Network Design Toolbox incorporates business analytics and dynamic planning and execution. It requires the rearrangement of supply chain management strategies by considering dynamic optimization models, and the adjustment of collaborative arrangements and incentive alignment to dynamic planning and execution. 2.7 EGLS7: e Compliance and Customs EGLS7 is a strategic capability that uses supply chain visibility to reliably report performance of cross border supply chains in compliance with customs regulations. It will do so by establishing supply chain visibility through three interlaced data pipelines: commercial, logistics, and regulatory Problem Formulation How to arrive at supply chain visibility while incorporating the logistics view (shipments), the commercial view (consignments), and the regulatory view (declarations)? How to streamline the operations at entry borders by the identification of high risk consignments and high risk operators on the one hand, and secure trade lanes on the other hand? Research Questions The first questions concerns the design of the data pipelines. RQ 7.1: What are design principles and base standards for the logistics data pipeline, commercial data pipeline, and regulatory data pipeline, in accordance with the customs standards? How should one map supply chain processes to the logistics data pipeline and commercial data pipeline in a consistent way? How should one map (snapshots of) the logistics data pipeline and commercial data pipeline to the regulatory data pipeline and customs data standards? The second research question concerns the impact of collaboration and information sharing on the reliability of customs declarations. RQ 7.2: What is the impact of the level of collaboration and information exchange in the supply chain, and the level of supply chain visibility, on the reliability of the customs declarations? Foreseen Innovations and Business Relevance The foreseen innovations relate to the establishment and evaluation of the logistics and commercial data pipeline models and standards, together with an assessment of the benefits thereof. This constitutes a Reliable Supply Chain Compliance Dashboard. Relevance for business: Supply chain visibility for more efficient and effective compliance management, but also more general benefits based on supply chain visibility. Relevance for authorities: Better assessment of supply chain compliance, based on declarations and data obtained from commercial and logistics data pipelines following a system based approach. SELIS, 2016 Page 14

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16 3 Overall EGLS 3.1 Research Agenda The research agenda is built from the research questions as proposed in the various EGLS and are built around the foreseen innovations further described in the next section. We organize the research questions as providing design solutions, i.e. Toolboxes in Table 1 and Dashboards in Table 2, technical implementations in Table 3, and business models and institutionalization in Table 4. Table 1: Research Questions for Toolboxes Toolboxes (Solution Design) Visibility Event Based Business Analytics Related RQ s RQ 3.1: How to quantify the effect of lack of visibility for individual actors across the supply chain? How to achieve higher visibility? How to overcome the lack of visibility, and how to better exploit higher visibility? RQ 3.2: How to devise methods to switch from corrective actions (reactive) to preventive actions (pro active)? Synchromodal Planning Collaborative Agreements Logistics Network Finance Dynamic Service Network Design Not explicitly addressed in RQ s, but there will be tooling. RQ 1.2: What is the impact of the various collaborative agreements between stakeholders on synchromodal transport performance? What is the price of anarchy? Which collaborative agreements add the most value? What operational issues requires incentive alignments from the collaborative agreements? RQ 2.1: How can we identify, characterize, and categorize existing and emerging collaborative models for transportation in such a way that we establish a common typology of collaboration? RQ 4.1: How to determine the key parameter values for financial solution for logistics networks? Examples are extended payment terms for reverse factoring; discounting scheme per supplier for dynamic discounting; financial ceiling and interest rate for purchase order financing. <Are these the most relevant parameters in logistics industry?> RQ 6.1: How can existing SND models be adapted to incorporate the use of real time data and aim at multiple objectives; e.g. trade off between economic and environmental performance? Which existing techniques for big data mining, predictive analytics, and efficient computing are most promising to improve computational speed of dynamic SND? The second research question concerns the impact of dynamic decision making in service network design. RQ 6.2: Can supply chain companies manage to make decision making more dynamically by means of dynamic SND? What would be the impact of such dynamic decision making? SELIS, 2016 Page 16

17 Table 2: Research Questions for Dashboards Dashboards (Solution Design) Network Reliability Benefits and Risks Carbon Footprint Reporting Supply Chain Compliance Related RQ s RQ 1.1: What is the impact of the level of collaboration, and the level of information sharing, on reliability and efficiency of synchromodal transport processes? How does one define reliability of synchromodal transport processes? How are planning and execution processes designed to capture the potential value of collaboration and information sharing? In the trade off between reliability of efficiency, what is the price of reliability for synchromodal systems? RQ 2.3: How to design incentives and gain sharing mechanisms supporting new transportation business models that feature horizontal and vertical collaboration or combinations thereof? RQ 2.4: How to design risk sharing mechanisms in collaborative transportation networks RQ 5.1: What is the impact of the level of collaboration and information sharing on the reliability of carbon accounting? Could organizational privacy (sensitive information) be a barrier here? RQ 5.2: What is the price of environmental performance? RQ 7.1: What are design principles and base standards for the logistics data pipeline, commercial data pipeline, and regulatory data pipeline, in accordance with the customs standards? How should one map supply chain processes to the logistics data pipeline and commercial data pipeline in a consistent way? How should one map (snapshots of) the logistics data pipeline and commercial data pipeline to the regulatory data pipeline and customs data standards? RQ 7.2: What is the impact of the level of collaboration and information exchange in the supply chain, and the level of supply chain visibility, on the reliability of the customs declarations? Table 3: Research Questions for Collaborative IT Platform Collaborative IT Platform (Technical Implementation) Related RQ s RQ 4.2: What are the IT requirements for the reliable, secure and timely functioning of a logistics network financing platform? Table 4: Research Questions related to Digital Platform Business Models Collaborative Platform Related RQ s SELIS, 2016 Page 17

18 (Business Models and Institutionalization) RQ 2.2: How can we develop business models and governance structures that foster collaborative transportation environments? RQ 3.3: How to ensure correct match between digital platform functionalities and corresponding business models? RQ 4.3: What are the adoption barriers to the selected solutions and how can they be overcome? Which departments within the customer shall be involved with on boarding logistics service providers and take ownership of supply chain financing? Are there any customer categories that should not qualify for participation? RQ: What are drivers and barriers to adoption of the digital platform for the various stakeholders involved? Which stakeholders are expected to take the lead or to become early adopters? Which new entrants add the most value to the digital platform? RQ 5.3: What agreements would be required in transport and logistics to (1) remove organizational privacy barriers; (2) create incentives that coordinate carbon abatement efforts; (3) address cross border aspects such as green tariff barriers; (4) address market aspects such as customer concerns regarding validity of certificates. RQ: What agreements on a digital platform are required to (1) remove organizational privacy barriers; (2) create incentives that coordinate joint efforts; (3) address regulatory uncertainty or regulatory constraints; and (4) address market aspects such as customer concerns regarding certificates and reputation of suppliers of logistics services. RQ 6.3: What collaborative initiatives could be developed in order to ensure global and multi objective optimization of service networks? 3.2 Foreseen Innovations and Business Relevance The foreseen innovations and business relevance emerge from the EGLS research questions as Dashboards and Toolboxes. Note that basic Dashboards (costs) and Toolboxes (Basic Planning) on Digital Platforms have not been included here. The Dashboards and Toolboxes have been described in the overview ELS in Section 2. Figure 2: Innovative Platform Dashboards and Toolboxes SELIS, 2016 Page 18

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20 4 Bibliography SELIS, 2016 Page 20