Dynamic Supply Chains and Crowdsourcing Matthias Klumpp

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1 Dynamic Supply Chains and Crowdsourcing Matthias Klumpp University of Twente, IEBIS & FOM University of Applied Sciences, ild

2 Agenda 1. Introduction 2. Conceptual Framework 3. Case Study E-Mobility 4. Application Area Logistics Training 5. Outlook: Humanitarian Logistics 2

3 1. Introduction Croudsourcing (CS) applications in logistics: Increased interest with technology implementation and spread (Berrang-Ford and Garton, 2013; Bowen, 2012) Applications moving to service industries such as health & banking (Prpić, 2015; Smith and Merchant, 2015; Lisha and Hongjie, 2015) Assumption: CS can improve logistics to become more efficient and effective facing new requirements: sustainability, flexibility, security (Barbier et al., 2012; Pitt et al., 2011; Heipke, 2010; Munro, 2013) Special interest due to demographic change and increasingly limited access to human resources and knowledge for logistics (Zijm and Douma, 2012; Fugate et al. 2012; Woxenius and Sjöstedt, 2003) 3

4 1. Introduction Croudsourcing (CS) applications in logistics: Usually higher innovation rates and lower costs are connected to CS concepts in different industries as the advantages of crowdsourcing are manifold. But especially for logistics the characteristics of long distance and distributed search for contributors, data or solutions (Afuah and Tucci, 2013) may be interesting due to the already global and distributed nature of today s supply chains. The research question : Can the assumption be sustained that there will be significant and suitable application areas for crowdsourcing in logistics? 4

5 2. Conceptual Framework Specific requirements of logistics: Flexibility Economic viability Security Scalability Sustainability 5

6 3. Case Study E-Mobility The electric mobility case: Electric mobility as a major new development in personal as well as cargo transport green logistics (Davis and Figliozzi, 2013; Augenstein, 2015) Advantages: Potential reductions in raw energy consumption and (local) emissions as well as noise reduction in urban areas (Pallas et al., 2014; Hurley et al., 2012) For e-vehicles used in logistics i.e. CS applications for an efficient use of this new propulsion technology for sustainability and also longterm cost reasons are in high demand Example: SignalGuru application developed at MIT for a communication among smartphones in vehicles identifying green waves and optimal driving strategies (Koukoumidis et al., 2011) 6

7 3. Case Study E-Mobility Data streaming Decision advice Information sourcing Efficient driving & traffic 7

8 3. Case Study E-Mobility Flexibility Economic viability Security Scalability Sustainability 8

9 4. Application Area Logistics Training Creation of knowledge and cataloging: Matching crowd characteristics Example Wikipedia: 30 million articles in 280 languages by volunteers Web technologies are transforming the learning and knowledge sector (e.g. Corneli & Mikroyannidis, 2005): shared context in motion : SECI model by Eerola and Jorgensen (2002, p.12) 9

10 4. Application Area Logistics Training Flexibility Economic viability Logistics Training Security Scalability Sustainability MARTINA research project 10

11 5. Outlook: Humanitarian Logistics Application area disaster relief management, conditions (I): Smartphone data connections as crowdsourcing element could be used due to specific situations and needs in humanitarian logistics Often no fixed-line communications infrastructure Short text and information messages in app communications can be a lighter load on communications infrastructure People may be available as supporters for humanitarian processes, but with low experience and competence levels regarding logistics Detailed information necessary in order to coordinate the processes of disaster relief, based on hands-on information on the ground Exact region and geographical dimensions of impacts of disasters are unknown possible of evenly distributed smartphone users 11

12 5. Outlook: Humanitarian Logistics Example Nepal ( ): Donations UK (79), DE (68), NL (25), NO (14) 12

13 5. Outlook: Humanitarian Logistics Application area disaster relief management, functionalities (II): Health measurement and monitoring via smartphone applications in order to organize and steer optimized medical relief transports (i.e. detecting contagions like cholera in disaster areas earlier) Snapshot evaluation of (smart)phone networks before and after disaster timeframes in order to locate missing persons by missing mobile phone signatures Using smartphone QR scanners instead of fixed barcode or RFID scanners for logistics operations in disaster areas by a standardized application (app) Organize and communication of donations and help (example Nepal) Support missing persons search: social media 13

14 5. Outlook Conclusions Case study regarding electric vehicles & two further application areas showed the potential of crowdsourcing solutions Future application areas in logistics can be expected especially in special fields i.e. city and last-mile logistics Further research suggested: - Which factors and restrictions apply to an investment calculation regarding crowdsourcing applications in logistics? - How can mass payment systems and processes be established in order to support the very detailed and sometimes low-value activities in logistics? - Which interaction areas can be established for e-commerce and city logistics applications as natural habitat areas of crowdsourcing? - By which concepts and applications can the important procedures of data and privacy protection be enabled in crowdsourcing applications in logistics? 14

15 5. Outlook Croudsourcing (CS) applications in logistics: Interesting areas for CS in logistics have been identified surprisingly more on the soft side of information and support gathering than on the hard side of physical transportation. CS applications bring increasing investment and qualification / technology requirements for modern logistics companies and agile supply chain design but are possibly rewarding besides business advantages in marketing and image. The research answer: Yes, the assumption can be sustained that there will be significant and suitable application areas for crowdsourcing in logistics. 15

16 Thank you for your attention. Dynamic Supply Chains and Crowdsourcing Matthias Klumpp Contact: Phone

17 ANNEX: Why crowdsourcing won t replace transportation: Extra cost: fixed cost for own fleet still there Economic viability Flexibility No flexibility: Needs professional dedication, no freelancers Security Uber problem : How to establish security with freelancers? Possible but how to steer development with n freelancers? Scalability Sustainability Possibly sustainable, but depending on extra miles of freelancers 17

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