An insight into ALICE: The European Technology Platform for Logistics

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1 An insight into ALICE: The European Technology Platform for Logistics 10 Years of Open ENLoCC. 17 th November, Brussels. Fernando Liesa. ALICE Secretary General

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3 Efficiency, trends and innovations Efficiency, trends and innovations Trends Flow exponential growth Shipments fragmentation Shipment median weight divided by 4,5 from 160 kg in 1988 to 30 kg in 2004 Source IFSTTAR 2013 A no cost illusion for the consumers Source: Centre for sustainable transportation Canada Expectations: better services and economic support to growth How to take advantage of economy of scale when shipments are getting smaller? How to mitigate the environmental effects? Decoupling / economic activity? How to cope with the demand and without a new physical infrastructure?

4 billion euro 10 YEARS: ZERO IMPROVEMENT ON LOAD FACTORS [Optional slide for additional info/data] 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% %Load Factor %Road efficiency %empty truck (km) % EUROPE GAINS to 70%: Eur 160 Billions 1.3% CO 2 footprint 0

5 We need the end-to-end view CO 2 emitted by supermarket shopping Consumer trip (transport between home & store) Packaging (store - shopping bag) Retailer operations (store/ DC /transport) Manufacturer operations (DC/ transport) Source: LCA study, P. van Loon, J. Dewaele, L. Deketele - Heriot-Watt University / P&G 30 items/shopping basket - UK B&M supermarket - typical (average) travel behavior (distance, transport mode)

6 WHY DO WE NEED A CHANGE IN THE INTERMODALITY APPROACH? RAIL INFRASTRUCTURE IS UNDERUTILIZED Source : EU Commision - Transportation Booklet

7 WHY DO WE NEED A CHANGE IN THE INTERMODALITY APPROACH? WE ARE NOT ABLE TO SET UP AND SUSTAIN INTERMODAL CONNECTIONS NO CONNECTIVITY NO VOLUME NO FREQUENCY HIGH COSTS LONG LEAD TIMES NO VISIBILITY

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9 Market opportunity and vision A 10% to 30% efficiency in EU logistics sector = billion cost relief for European industry Make European industry resilient by a true people, planet, profit oriented logistics and supply chain sector. A sector that is economically, environmental and socially sustainable contributing to both industry competitiveness and the EU policy targets

10 Unfortunately, current approaches focus on improving what we currently do Needed Focus of Improvements if we are to Achieve Objectives New T&L Paradigm Business as Usual Current Focus of Transport and Logistics Improvements

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12 ALICE Roadmaps

13 Expected Impacts People Planet Profit Primary Impacts + Increase customer satisfaction + Products availability + Secure societies - Energy consumption (kwh Logistics/GDP) + Renewable energy sources share - CO 2 Emissions (kg CO 2 /tkm) + Return on assets and working capital - Total supply chain costs - Cargo lost to theft or damage Secondary impacts + Load factors: weight and cube fill of vehicles + Volume flexibility (Time to +/- capacity) + % Synchromodal + Asset utilization + Supply Chain Visibility + Reliability of transport schedules + Perfect order fulfilment + Transport routes optimization (reducing Kms) + Transport actors using automatic data exchange + Cargo and logistics units integrated in the automatic data exchange + Upside / Downside Supply Chain Adaptability and Flexibility + Decoupling logistics intensity from GDP - Empty Kilometres - Waiting time in terminals - Risk factor reduction - end-to-end transportation time - Travel distance to reach the market Horizon 2020 research and innovation Programme under grant agreements - Lead No times and

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15 ALICE vision Future logistics will be based on an open global logistics system: (connecting logistics networks), founded on physical, digital, and operational interconnectivity (access to resources), enabled through modularization, standard interfaces and protocols, with the aim to move, store, produce, supply and use physical objects throughout the world in a manner that is economically, environmentally and socially efficient and sustainable We call this the Physical Internet

16 The Physical Internet in a Glance Goods in black box standard modular containers for transport, handling and packaging purposes New generation of handling, transportation and storage technologies and facilities for seamless, fast flow & exchange of loads Seamless modular container consolidation in the Physical Internet B. Montreuil & C. Thivierge, 2011 Benoit Montreuil (Georgia Tech) and Russ Meller (Fortna) Seamless open asset sharing & consolidation across interconnected networks and modes Open market for goods transportation, storage, realization, supply and usage Standard interfaces & protocols Service provider certification and ratings-by-users to drive performance Continuous tracking & monitoring Smart, fact-based, proactive, distributed routing, deployment, production decisions

17 P&G TINA CUBE Mixing light & Heavy Products 3. EFFICIENCY Light goods: Only 25% of weight limit Heavy goods: Only 40% of volume limit

18 Hyperconnected Transportation Results from a simulation experiment with top retailers Carrefour and Casino in France and their 100 top suppliers Current flows Hyperconnected flows Current: Trucks Hyperconnected: Trucks & Rail Economical: Up to 32% overall cost saving Environmental: About 60% reduction of greenhouse gas emissions 50% of volume shifted from road to rail Ballot É., B. Montreuil, R. Meller (2015), The Physical Internet: The Network of Logistics Networks, Documentation Française.

19 PI enabler: Modular manufacturing and Industry 4.0 On-demand dynamic deployment of containerized production modules to distributed open fabs Modularity, speed, flexibility, adaptability, sustainability Smart manufacturing contributes to sustainable logistics Condensed volumes (modularization, miniaturization) Local for local production / reshoring (e.g. 3D printing) Reduced in-transit inventories (postponed customisation) Logistics: it s not only about how to transport, it s also about what to transport!

20 Logistics innovation for a more competitive and sustainable industry