Interconnected Urban Logis4cs

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Garey Parker
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Interconnected Urban Logis4cs Plane Urban truck Exploi4ng most zone- appropriate π- container transport, handling & storage modes, vehicles, means & facili4es Ship Urban transporter Train Long-

1 Interconnected Urban Logis4cs Plane Urban truck Exploi4ng most zone- appropriate π- container transport, handling & storage modes, vehicles, means & facili4es Ship Urban transporter Train Long- distance vehicle Bicycle Urban hub Exploi4ng exis4ng infrastructures (subway, tramway) and gradually developing innova4ve interconnected infrastructures B. Montreuil & T. Crainic, CIRRELT Aiming for gains in economic, environmental and societal efficiency and sustainability 2013/08/09, 69/86

Mobility Web: engaging car drivers towards interconnected social transport of goods Each day, people use their vehicles to travel across regions

towards another hub near their des4na4on Exploi4ng smart devices (phones, tablets, etc.

2 Mobility Web: engaging car drivers towards interconnected social transport of goods Each day, people use their vehicles to travel across regions and ci4es The concept is to engage them into the Mobility Web The idea is to have them carry a set of π- containers form a hub near their origin towards another hub near their des4na4on Exploi4ng smart devices (phones, tablets, etc.) Imagine the poten4al impact of exploi4ng this exis4ng untapped capacity on energy savings, GES emissions, overall logis4cs costs, speed of delivery É. Ballot, B. Montreuil, Paris, /08/09, 70/86

3 AutoHub: Gerng a feel for the implementa4on of interconnected social transport of goods Design: et Marie- Anne Côté, CIRRELT, Université Laval, Québec, Canada 2013/08/09, 71/86

4 Physical Internet Induced Innovation Cultural Innova4on Mental models, Paradigms π- Enabling Innova4on π- Enabled Innova4on Technological Innova4on Business Model Innova4on Infrastructural Innova4on 2013/08/09, 72/86

Physical Internet Induced Infrastructural Innovation The Physical Internet homogeneity in terms of object encapsula4on in π-

exploita4on of standardiza4ons, ra4onaliza4ons and automa4ons through currently unreachable innova4ons π- Enabling infrastructures

Physical Internet hnp://www.ilookforwardto.

5 Physical Internet Induced Infrastructural Innovation The Physical Internet homogeneity in terms of object encapsula4on in π- containers should allow a much beher u4liza4on of modes & means, thus increasing the capacity of infrastructures by the exploita4on of standardiza4ons, ra4onaliza4ons and automa4ons through currently unreachable innova4ons π- Enabling infrastructures π- Enablied infrastructures FoodTubes and CargoCap: Examples of currently contemplated infrastructural ini4a4ves in line with the Physical Internet hnp:// really- fast- food- delivered- in- a- physical- Internet- of- underground- pipes.html hnp:// is- cargocap The Physical Internet : PASI presenta4on Benoit Montreuil 2013/08/09, 73/86

6 Physical Internet induced business model innova4on Innova4ve business models for commercializing Physical Internet enabled offers by various par4es, addressing stakeholder revenue, contrac4ng, liability & insurance π- Enabling business models π- Enablied business models What are to be the π-enabled equivalents of Amazon, ebay and Google? How are the manufacturers, distributers, retailers, transporters, logistics providers and solutions providers going to evolve so as to best exploit the Physical Internet? 2013/08/09, 74/86

7 Business Briefs: Virtuous Cycle TSP: trailers more full, less empty miles, higher asset u4liza4on, less driver turnover TSP charges Shippers lower rates Customer pays less! Retailers: more backhauls, lower inventory, less stock outs Shippers: lower rates, EOQ from truckload to pallet Shipper posi4ons inventory closer to Retailer, frequent shipments, lower price TSP: Transport Service Providers The Physical Internet : PASI presenta4on Benoit Montreuil 2013/08/09, 75/86

8 Four concurrent phases of Physical Internet Research Phase 1 : Concept Phase 2 : Assessment Phase 3 : Solu4ons Phase 4 : Valida4on 2013/08/09, 76/86

9 Business Briefs: Virtuous Cycle TSP: trailers more full, less empty miles, higher asset u4liza4on, less turnover Customer pays less! TSP charges Shippers lower rates Retailers: more backhauls, lower inventory, less stock outs Shippers: lower rates, EOQ from truckload to pallet Shipper posi4ons inventory closer to Retailer, frequent shipments, lower price The Physical Internet : PASI presenta4on Benoit Montreuil /08/09, 77/86

10 An American NSF research team confirms the high poten4al of the Physical Internet Es4ma4ons based on a 25% adop4on rate of Physical Internet by the US supply chain, limited to exploi4ng truck based transporta4on Economic $100B+ annual profit boost : 29.4% reduc4on Environmental 150+ Tg of CO 2 annually : 32% reduc4on Social Driver turnover down from 100%+ to 24% : to 2x current LTL turnover rates US CELDi research team was lead by Prof. Meller from U. Arkansas and Prof. Ellis from Virginia Tech 2013/08/09, 78/86

11 An American NSF research team confirms the high poten4al of the Physical Internet Es4ma4ons based on a 25% adop4on rate of Physical Internet by the US supply chain, limited to exploi4ng truck based transporta4on Economic $100B+ annual profit boost : 29.4% reduc4on Environmental 150+ Tg of CO 2 annually : 32% reduc4on Social Driver turnover down from 100%+ to 24% : to 2x current LTL turnover rates US CELDi research team was lead by Prof. Meller from U. Arkansas and Prof. Ellis from Virginia Tech 2013/08/09, 79/86

12 The Physical Internet : PASI presenta4on Benoit Montreuil 2013/08/09, 80/86

13 Sample of companies & organizations active in the Physical Internet Initiative + Universities across North America and Europe" Laval, Mines ParisTech, Arkansas, EPFL, Virginia Tech" Auburn, Berkeley, Bordeaux, Clemson, Georgia Tech, HEC Genève, Nantes, Poly Montreal, Poznan, UQAM, TU Berlin, TU Graz " 2013/08/09, 81/86

European Project on Interconnected Logis4cs & Physical Internet

10 (including Canada) From October 2012 to October 2015 Current

moving consumer goods (FMCG) Define and experiment smaller- than-

14 European Project on Interconnected Logis4cs & Physical Internet Budget : 4 million (3 from European FP7) Partners : 14, Countries : 10 (including Canada) From October 2012 to October 2015 Current state, vision & roadmap 2030 toward interconnected logis4cs of fast moving consumer goods (FMCG) Define and experiment smaller- than- pallet containers for FMCG supply chain Three pilot projects in industry 2013/08/09, 82/86

adequate for real modal and co- modal flows of fast- moving consumer goods (FMCG), providing a

15 European Project on Interconnected Logis4cs & Physical Internet Research Work Packages The goal of the project is to enable opera4ng with developed iso- modular logis4cs units of sizes adequate for real modal and co- modal flows of fast- moving consumer goods (FMCG), providing a basis for an interconnected logis4cs system for 2030 in Europe /08/09, 83/86

16 An Invita4on Week of May /08/09, 84/86

17 Conclusion Tackling Logis4cs Sustainability Grand Challenge A highly scalable co- opera4ve approach based on open universal interconnec4on Not a Utopia, not a Big- Bang Get cri4cal mass by exploi4ng exis4ng infrastructures and means, then get momentum through large scale adop4on & innova4on An Open Research and Innova4on Endeavour Worldwide mul4- stakeholder collabora4on to making it happen 2013/08/09, 85/86

The Physical Internet

The Physical Internet Toward Efficient, Sustainable, Interconnected Logis4cs The transforma4ve impact on distribu4on systems Professor Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity