The Physical Internet Towards Hyperconnected Automotive Supply Chain Logistics

Transcription

1 The Physical Internet Towards Hyperconnected Automotive Supply Chain Logistics Prof. Benoit Montreuil Coca-Cola Chair in Material Handling & Distribution School of Industrial & Systems Engineering Director, Physical Internet Center Director, Supply Chain & Logistics Institute In Collaboration With Caline El Khoury and Michael Khoury, Graduate Research Assistants, Georgia Tech Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 1/26 1

2 While the Digital Internet deals with bytes, The Physical Internet deals with physical objects Del i ver Ha n d l e Tr a n spo r t St o r e Di stribut e Mak e/ Assem bl e/ Pack Per so n al i ze Rec yc l e Being s & Thi n g s Access Expl o i t Funct i o n Con cei ve Eng ineer Devel o p Bu y / Sel l Pr o vi d e Science Magazine 6 June 2014 Rethinking the Global Supply Chain Physical Internet Inventor: Prof. Benoit Montreuil Montreuil B. (2011). Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, Vol. 3, No. 2-3, p Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 2/26 2

3 Grand Challenge Tackled Through the Physical Internet To improve by an order of magnitude the economical, environmental and societal efficiency and sustainability of the way physical objects are moved, deployed, realized, supplied, designed and used Induced cost reduction Price reduction Business opportunity Economic development opportunity Reduction of Greenhouse gas emissions Energy consumption Waste Pollution Traffic & Congestion Improved Quality of life Goods accessibility Faster more precise delivery Novel service capabilities Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 3/26 3

4 The Physical Internet Hyperconnected global logistics system enabling seamless open asset sharing and flow consolidation through standardized encapsulation, modularization, protocols and interfaces A system is said to be hyperconnected when its components (agents, things, etc.) are intensely interconnected on multiple layers, ultimately anytime, anywhere Interconnectivity layers notably include digital, physical, operational, business, legal and interpersonal Hyperconnected system definition by B. Montreuil, July 2015 PI definition adapted by Montreuil B, R.D. Meller & E. Ballot, June 2015 from Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer. Image source: clyderathbone.com Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 4/26 4

5 Physical Internet at a Glance Seamless modular container consolidation in the Physical Internet B. Montreuil & C. Thivierge, 2011 Open market for goods transportation, storage, realization, supply and usage Encapsulates 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 Standard protocols and interfaces for seamless open asset sharing & consolidation across interconnected networks and modes Critical mass: vast community of users Service provider certification and ratings-by-users to drive performance Continuous tracking & monitoring Smart, fact-based, proactive, distributed routing, deployment, production decisions Benoit Montreuil (Georgia Tech) and Russ Meller (Fortna) Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 5/26 5

6 Pillars of Economy and Society in the Emerging Hyperconnected Era World Wide Web (WWW) Digital Internet Digital Information Packets Connecting Physical Objects through WWW Internet of Things Smart Networked Objects Smart Grid Energy Internet Logistics Web Physical Internet Smart Physical Packets Energy Packets Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, Read also: Rifkin J. (2014), Zero Marginal Cost Society. Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 6/26 6

7 PI Enabler: Encapsulating goods in -containers Easy to Handle, Store & Transport Robust & reliable Snap and interlock Load and unload Seal and unseal Compose & decompose Condi oning capable Cleanable Panel (pub + info) Smart & Connected Uniquely iden b fial e Communica ons capable State memory Reasoning capabili es Standard Modular Eco-friendly Light & thin Reusable and/or recyclable Minimal off-service footprint Dis nct structural grades Protect the encapsulated objects Factories ID# Clients (Retail shelves, Homes) Products ever be er designed for encapsula on Original drawing by Benoit Montreuil & Eric Ballot Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 7/26 7

8 PI Enabler: Evolve towards -containers at all scales Beyond current containers, pallets, totes, cases and boxes 12m 6m 4,8m 3,6m 2,4m Handling Containers π-boxes Modular fit in transport containers Transport Containers Modular fit in π-certified vehicles 1,2m 1,2m 0,8m 0,6m Packaging Containers π-packs Modular fit in handling containers The Modulushca project has prototyped the two first generation of π-boxes, TU Graz has engineered and prototyped the first generation 0,4m 0,3m 0,2m 0,1m 1,2m 0,6m 0,48m 0,36m 0,24m 0,12m Montreuil B., E. Ballot, W. Tremblay (2015). Modular Design of Physical Internet Transport, Handling and Packaging Containers, Progress in Material Handling Research Vol. 13, Ed. J. Smith et al., MHI, Charlotte, NC, USA, to appear. Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 8/26 8

9 PI-Enabler: -container handling & storage technologies -movers New generation of technologies and logistics facilities enabling seamless, fast, cheap, safe, reliable, distributed, multimodal transport and deployment of modular containers across the Physical Internet -conveyors -stores Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 9/26 9

10 Hyperconnecting transportation and delivery Illustrated through a small Three-Supplier Three-Brand case Supplier A Supplier B Supplier Z PA1 PA2 PB PZ1 PZ2 PZ3 PZ1 AZ A2A D2a PB PZ3 PZ1 DH A2A D2a PB PZ2 AA AB AZ PA1 PZ2 DA AA D1 A1 AB DB A3 PA1 PZ2 DA AA D1 A1 DB AB A3 A1 A2a A2b A3 D2b A2b PA2 D2b A2b PA2 D1a D1g D2a D2f D2g S2t D3a.. D3w Brand 1 Brand 2 Brand 3 Current Dedicated assets & flows Hyperconnected Relay through openly shared hubs Flow consolidated through inter-hub transporters Physical Client order flow P# : Suppliers Plants : Car Dealership A# :Auto Assembly Plant Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23 Simple case: single-mode, In general: multimodal Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 10/26 10

11 Hyperconnecting Distribution Current Distribution Dedicated assets Static structure Supplier A Supplier B Supplier Z PA1 PA2 PB PZ1 PZ2 PZ3 AA AB AZ A1 A2a A2b A3 PA1 PZ1 AZ PZ2 A2A D2a DA AA D1 A1 D2b A2b AB DB A3 PB PZ3 PA2 D1a D1g D2a D2f D2g S2t D3a.. D3w Brand 1 Brand 2 Brand 3 Hyperconnected Distribution Deploy stock in openly shared DCs as demand fluctuates D2f PZ3 PA1 Cloud storage PZ2 PB PZ1 PA2 O1 O2 O3 O4 O5 O6 S2t PA1 PZ1 DZ PZ2 A2A D2a DA AA D1 A1 D2b A2b DB AB A3 PB PZ2 PA2 D2a D1a D3a D1g D2g D3w Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 11/26 11

12 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 Ballot É., B. Montreuil, R. Meller (2015), The Physical Internet: The Network of Logistics Networks, Documentation Française. Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 12/26 12

13 Stable Network Hyperconnected Distribution Hyperconnected distribution is by far the best alternative, even better as consumer delivery has to be faster Dedicated Distribution Cost: -11% Cost: -33% Stable Network Collaborative Distribution 2 partners Cost: -25% Day Service Level Dynamic Network Hyperconnected Distribution Case of ten illustrative companies serving Canada-USA markets: Optimization of distribution networks Source: H. Sohrabi & B. Montreuil, An Optimization Based Assessment of Dedicated, Collaborative and Hyperconnected Distribution: Modeling & Preliminary Results, NOW 2015, France Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 13/26 13

14 Hyperconnecting Product Realization Manufacturing, Production, Assembly, Personalization, Recycling, etc. Much easier and much less expensive to move and store info rather than matter Exploit extensively knowledge-based dematerialization of products and their on-demand materialization in physical objects near point of use by certified open fabs 3dprint.com 3D Printing is an enabling upcoming technology hackedgadgets.com pillowmagazine.com Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 14/26 14

15 Hyperconnected Manufacturing Beyond current outsourcing, subcontracting, offshoring, reshoring compromises Dedicated realization Hyperconnected realization Enabling Efficient & Agile on-demand Near Point-of-Use Product Realization P+A A P Current snapshot OP OP OP OP OP OP OP Current snapshot P OP Currently exploited certified open manufacturer OP Currently unexploited certified open manufacturer A M Producer Client Currently exploited certified open assembler M Assembler Currently unexploited certified open assembler P+A Integrated producer+assembler Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 15/26 15

16 Hyperconnected Supply Chains Tier-1 Tier-2 Each supplier may for example sign a guaranteed X-time accessibility contract with each client, keeping responsibility for product delivery, deployment and realization Supply Web Tier-0 Each client has access to a global pool of -certified suppliers and vice-versa Hyperconnected Realization Hyperconnected Distribution Hyperconnected Transport Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 16/26 16 Client has minimal stock Supplier leverages its clients for deployment pooling

17 Evolution of Logistics, Transportation, Production & Supply Chains Physical Internet, Logistics Web Open hubs, DCs & fabs, Co-operation Platforms Efficiency, Sustainability, Resilience, Agility Hyperconnected Horizontal & Vertical Collaboration with SC partners Economies of Scale/Scope, Green Collaborative Long to Deal Tough to Adapt Hard to Scale Asset intensive Bounding Integrated EDI, Just-In-Time, ECR, Lean Dedicated & Centralized DCs & Factories End-to-End Supply Chain Atomistic Fragmentation, Solo Operations Long leadtime, big lots, large inventory Original concept by Benoit Montreuil & Jean-Claude Dufour Timeline Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 17/26 17

18 Physical Internet Induced Innovation Thread 1 for the Automotive Industry: Hyperconnected Vehicles and Transportation Systems Mercedes-Benz has just announced the Physical Internet as Key to Its Vision of the Future Hitching a ride through the physical internet. Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 18/26 18

19 Physical Internet Induced Innovation Thread 2 for the Automotive Industry: Hyperconnecting the Worldwide Automotive Supply Chain The North American Automotive Industry has a huge footprint yet it is mostly disconnected Reference : Center for Automotive Research 2014 (supplier locations from ELM Analytics and MarkLines) Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 19/26 19

20 Illustrative Focus on Hyperconnecting Southeast Automakers 63% of plants are within 100 miles east or west of I-65 Automotive Alley Georgia 5000 dealers 300 suppliers service facilities Brunswick and Savannah Ports : Largest Importers Florida Ports: Largest Exporters Significance of Existing Infrastructure and Ports Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 20/26 20

21 Away from OEM-Supplier Specific Totes, Cages and Pallets To Pan-Industry Standard Modular Containers Illustrating the current state Illustrating the future state Hitching a ride through the physical internet Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 21/26 21

22 Hyperconnected Supplier-OEM-Dealer Transportation Multimodal, Multi-Party, Inter-Hub, Relay Transportation Massively Open Transportation Asset Sharing and Flow Consolidation o 5 c 4 x Open Hub Assembly Plant miles Open Hub Zone Specific links and hub locations are illustrative, not engineered yet! Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 22/26 22

23 o Hyperconnected Automotive Parts & Vehicle Distribution Dynamic Deployment in Near Point-of-Use Open Multi-Party Distribution Centers Hyperconnectivity: Use of Open Hubs and Open DCs 5 c 4 x Instead of each OEM, 3PL and supplier having dedicated storage and fulfillment capabilities: massively open distribution asset sharing 250 miles Open Hub Open DC Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 23/26 23

24 Hyperconnecting Automotive Supply U.S. Continental, International Imports/Exports 12% 36% 27% 35% 53% 37% Reference :US Trade Report Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 24/26 24

25 Hyperconnected International Supply: Germany and USA Example DC1 DC2 Current Each Car Brand Operates Independently Open DC Open Hub Maritime Transportation InLand Transportation Enabling same-day shipping of German parts production to US OEMs through multi-supplier consolidation Hyperconnected Consolidation from the origin Shorter Lead Time Less inventory Cheaper Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 25/26 25

26 o Hyperconnected Automotive Manufacturing Use of Shared Vehicle Assembly and Parts Production Facilities Hyperconnectivity: Use of Open Hubs and Open DCs 5 c 4 x 250 miles Open Hub Open DC Shared Facility Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 26/26 26

27 Physical Internet Induced Automotive Supply Chain & Logistics Innovation -Enabling Innovation -Enabled Innovation Process Innovation Technological Innovation Infrastructural Innovation Cultural Innovation Business Model Innovation Legislative Innovation Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 27/26 27

28 Four Concurrent Research and Innovation Axes Toward Physical Internet Enabled Hyperconnected Automotive Supply Chains Axis 1 : Conceptual and Functional Design Vision, Roadmap, PI constituents, Hyperconnected Supply Chains Axis 2 : Assessment of Efficiency, Sustainability & Capability Improvements Through Analytics, Optimization, Simulation Axis 3 : Engineering Solutions Containers, MH systems, Facility design, Business Models, Decision models, Digital platforms Axis 4 : Validation Case studies, Field pilots, Virtual pilots, Living labs Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 28/26 28

29 Questions, comments and ideas are most welcome ebook We are shaping a research & innovation initiative on hyperconnected automotive supply chains & logistics We welcome your feedback, support & engagement! Benoit.Montreuil@isye.gatech.edu Automotive Logistics Supply Chain Conference, Professor Benoit Montreuil, 2016/05/18, 29/26 29