ITS for City Logistics and the Physical Internet
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1 ITS for City Logistics and the Physical Internet Teodor Gabriel Crainic Benoît Montreuil Canada Research Chair in Enterprise Engineering ITS Society of Canada, ACGM Québec, June 10-13, 2012
2 Logistics & Transportation = Essential To most economic and social activities No transportation = No human society as we know it No logistics = No economy as we know it Supply the population for work and play Supply homes, stores, firms, offices, institutions,... Support supply chains and industries Keep cities clean Maintain and repair homes, buildings, facilities, and the appliances and machines within Major source of employment 2
3 Major Disturbing & Disrupting Factor Significant Part of traffic & traffic-related problems Negative impact on the environment Usage of trucks is on the rise, urban and interurban Many empty or lightly loaded vehicles Packaging takes up a lot of space The worldwide cost of logistics (5% - 15% of GNP) is rising faster than world trade Everybody builds production, assembly & storage facilities, but these are poorly used from a global point of view 3
4 General Observations Cities are polluted and congested Intercity routes are congested with too many trucks We need a greener way of life & sustainable mobility The way physical objects are moved, handled, stored, realized, supplied and used throughout the world is inefficient and unsustainable economically, environmentally, and socially Our transportation and logistics systems are globally not efficient, nor sustainable The problems will not go away 4
5 What Can We Do? Innovate for now and for the future Change the way things are perceived, planned, and done New organizational strategies/models Addressing the negative aspects Fostering efficient & sustainable transportation & logistics systems Without penalizing the economic development City Logistics & Physical Internet initiatives Many concepts in common & common goals ITS as major success factor 5
6 The City Logistics Metaphor Current/classic distribution: Many vehicles dedicated to small (single) numbers of shippers / shipments / consignees Many empty vehicles or lightly loaded
7 Using Proven Strategy in Logistics, Long-haul Transportation, Passenger Transportation, Distribution centres Consolidation (& coordination)
8 City Logistics Fundamental Ideas Stop considering each shipment/company/vehicle individually Rather as components of an integrated logistics system Consolidation and coordination Coordination of shippers and carriers (& consignees) Consolidation of several shipments from different shippers and carriers, into the same improved, more energy efficient, green vehicles Optimize this logistics system 8
9 Single-Tier, Single-CDC City Logistics CDC: City Distribution Center Customer City freighter - route Empty vehicle 9
10 Two-Tier City Logistics CDC Satellite CDC 10
11 Two-Tier City Logistics City freighter - route Urban vehicle - route Empty vehicle 11
12 City Logistics for Large or Sensitive Urban Areas Most display a two-tier structure Several not necessarily integrated sub-systems Many have access to some public infrastructure (light rail lines, parking lots, ) even for private initiatives Dedicated transportation modes (underground) proposed A few initiatives to use dynamically available transportation & storage capacity In all cases, one disconnects the actual mean of transportation/delivery from the carrier/shipper/3pl originally contracted 12
13 The Physical Internet Metaphor Digital Internet From numerous unconnected computers to The information highway to The Internet & the World Wide Web Interconnected independent networks in a transparent way for the user, Transmission of standard formatted information flows Data packets Seamless transit through heterogeneous equipment respecting standard protocols (TCP/IP) 13
14 The Physical Internet Concept Physical Internet (PI, π) From numerous more or less unconnected production, logistics, storage, transportation systems to An open logistics & transportation system Separating flow and store/move management Interconnected independent networks in a transparent way for the user Transmission of standard formatted physical flows: modular containers Seamless transit through heterogeneous storage and intermodal facilities & transportation networks 14
15 Logistics & Transportation Web Openly interconnected physical, human, organizational, social, and digital stakeholders and networks Realization Web Realizing products Interconnected open production, personalising & retrofit centers Distribution Web Deploying, storing products Interconnected open warehouses & distribution centers Mobility Web Moving goods & people Interconnected open unimodal & multimodal infrastructures, movers, hubs and transits 15 Supply Web Supplying goods Interconnected open suppliers and subcontractors Service Web Enabling and sharing access and usage of services rendered by goods & people Interconnected open users and service providers
16 Scalable Framework Intra-Centre Inter-Processors Intra-installation Inter-Centres Intra-Site Inter-Installations Centre 1 Équipement 1 Équipement 3 Équipement 5 Station d arrivée Équipement 2 Équipement 4 Équipement 6 Station de départ Intra-City Inter-Site City Logistics Intra-Continental Inter-City, Inter-State/Province Inter-Continental Worldwide Network 16
17 Decomposi on Composi on Modular & Standard π-containers 17
18 Smart Physical Internet & City Logistics Many converging objectives, concepts, means, & challenges Joining the concepts: PI-enabled CL Vision for better, more efficient & profitable transportation & logistics systems and better cities Fully loaded vehicles Less vehicle/cargo/crew-km Less congestion & polluting emissions On-time delivery 18
19 Smart Physical Internet & City Logistics (2) Integrated network of independent systems Use the best cargo storage, vehicles & routing given The current state of the integrated network The particular characteristics of supply & demand Separate management of flow routing/storage from that of the logistics & transportation facilities and movers Consolidate & coordinate Use all and any transportation/facility mode available (and innovate some more) 19
20 Smart Physical Internet & City Logistics (3) ITS = Major enabling & success factor Provides the physical, electronic & intelligence infrastructure supporting advanced planning, management & control of intra and inter-city transportation Challenges Deployment Integration people and freight Integration transport & logistics Even more intelligence (Business, legal, organizational models/frameworks) 20
21 Your questions and comments are welcome Your collaboration is precious 21
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