The Physical Internet

Transcription

1 The Physical Internet Toward Efficient, Sustainable, Interconnected Logis4cs The transforma4ve impact on distribu4on systems Professor Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center on Enterprise Networks, Logis<cs and Transporta<on Faculty of Administra<on Sciences, Université Laval, Québec, Canada PASI Workshop, San4ago, Chile, /08/09, 1/86

2 Background on Industrial engineer from UQTR, 1978 Ph.D. Georgia Tech, ISYE, 1982 Faculty posi<ons : UQTR, Canada, Industrial Engineering : Purdue U., USA, Industrial Engineering : Laval U., Canada, Opera<ons & Decision Systems Canada Research Chair in Enterprise Engineering: SET Technologies : founder and CTO ( ) CICMHE member, ( ): VP, President, Past- President, Liaison to the Board of Governors of MHI 2013/08/09, 2/86

3 Interuniversity Research Center on Enterprise Networks, Logis4cs and Transport U. of Montréal, Laval University, UQAM, HEC Montréal, Polytechnique Montréal, McGill, ETS, Concordia U. 70 research professors, including 15 research chairs 400 graduate students and 35 postdocs Partnerships with industry and government 20+ companies: Bell, CGI, Couche- Tard, Desjardins, Domtar, P&G 2 research consor<um: FORAC, PREFORT Annual research budget: 12 M$ Annual produc<on: 500 papers, 500 communica<ons 2013/08/09, 3/86

4 Presenta4on Content Global Logis4cs Sustainability Grand Challenge Physical Internet Vision Efficient, Sustainable, Interconnected Logis4cs Induced innova4on Open discussion 2013/08/09, 4/86

5 At face value, logistics seems to be doing great! Logis4cs is the backbone sustaining Our lifestyle E- Commerce World Trade Adapted from an original slide concept by Professor Russ Meller, CELDi, U. of Arkansas The Physical Internet : PASI presenta4on Benoit Montreuil 2013/08/09, 5/86

6 Yet we have to face a harsh fact Logistics inefficiency and unsustainability claim The way physical objects are moved, stored, realized, supplied and used throughout the world is economically, environmentally and socially inefficient and unsustainable 2013/08/09, 6/86

7 Why do we need to change? Logis4cs inefficiency and unsustainability ECONOMIC Logis4cs: 5-15% burden on GDP of most countries worldwide logis4cs costs grow faster than world trade ENVIRONMENT One of the heaviest greenhouse gas generators, energy consumers, polluters and materials wasters Growing nega4ve contribu4on while na4ons goals aims for heavy reduc4ons SOCIAL Lack of fast, reliable and affordable accessibility and mobility of physical objects for the vast majority of the world s popula4on Too oyen precarious logis4c work condi4ons CO 2 emissions CO 2 EC target 2050 t.km. travelled 2013/08/09, 7/86

8 Inefficiency & Unsustainability Symptoms We are shipping air and packaging Average of 60% weight- volume capacity at departure Huge waste of packaging materials Empty travel: norm rather than excep4on 25% of road travel Truckers have become the modern cowboys OYen leaving home for long dura4ons High turnover rate The Physical Internet : PASI presenta4on Benoit Montreuil /08/09, 8/86

9 Inefficiency & Unsustainability Symptoms Products mostly sit idle, stored where unneeded, yet so oyen unavailable fast where needed Excessive inventories, deficient delivery capabili4es, low service level (slow speed and low reliability) Poorly / badly used produc4on and storage facili4es Low u4liza4on and/or produc4vity Excess product travel to exploit exis4ng dedicated assets The Physical Internet : PASI presenta4on Benoit Montreuil /08/09, 9/86

10 Inefficiency & Unsustainability Symptoms So many products are never sold, never used Overproduc4on waste In the fresh food industry, products are wasted at an alarming rate: 12% in transit, 25% at retail Products do not reach those who need them the most Throwing products away while people starve /08/09, 10/86

11 Inefficiency & Unsustainability Symptoms Products unnecessarily crisscross the world Hub- and- Spoke caused detours Manufacturing too far from point- of- use Excessive travel and vehicle requirements City logis4cs is a nightmare Ci4es not designed for easing inbound, outbound and within- city transport, handling and storage of goods The older and bigger ci4es have it tougher Mul4modal transport too constraining Poor synchroniza4on, inefficient interfaces Time- and- cost inefficient and risky The Physical Internet : PASI presenta4on Benoit Montreuil 2013/08/09, 11/86 "

12 Inefficiency & Unsustainability Symptoms Logistics networks & supply chains are neither secure nor robust" " There is extreme concentration of operations in a limited number of centralized production and distribution facilities, with travel along a narrow set of high-traffic route" This makes the logistic networks and supply chains of so many businesses, unsecure in face of robbery and terrorism acts, and not robust in face of natural disasters and demand crises" Smart automation & technology are hard to justify" Vehicles, handling systems and operational facilities have to deal with so many types of materials, shapes and unit loads, with each player independently and locally deciding on his piece of the pie" Hard to justify smart connective (e.g. RFID) technologies, systemic handling and transport automation, as well as smart collaborative piloting software " Innovation is strangled" Innovation is bottlenecked by lack of generic standards & protocols, transparency, modularity and systemic open infrastructure." This makes breakthrough innovation so tough, justifying a focus on marginal epsilon innovation" The Physical Internet : PASI presenta4on Benoit Montreuil 2013/08/09, 12/86

13 Mapping unsustainability symptoms to environmental, environmental and societal facets Unsustainability0symptoms Economical Environmental Societal 1 We0are0shipping0air0and0packaging 2 Empty0travel0is0the0norm0rather0than0the0exception 3 Truckers0have0become0the0modern0cowboys 4 Products0mostly0sit0idle,0stored0where0unneeded,0yet0so0often0 unavailable0fast0where0needed 5 Production0and0storage0facilities0are0poorly0used 6 So0many0products0are0never0sold,0never0used 7 Products0do0not0reach0those0who0need0them0the0most 8 Products0unnecessarily0move,0crisscrossing0the0world 9 Fast0&0reliable0intermodal0transport0is0still0a0dream0or0a0joke 10 Getting0products0in0and0out0of0cities0is0a0nightmare 11 Networks0are0neither0secure0nor0robust 12 Smart0automation0&0technology0are0hard0to0justify 13 Innovation0is0strangled 2013/08/09, 13/86

14 The Global Logistics Sustainability Grand Challenge The Global Logis4cs Sustainability Grand Challenge Design a system to move, store, realize, supply and use physical objects throughout the world in a manner that is economically, environmentally and socially efficient and sustainable. Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, 3(2-3), 71-87, /08/09, 14/86

15 Eliciting the Grand Challenge Toward Global Logistics Efficiency and Sustainability Environmental goal Sustainably reduce by an order of magnitude the logistics-induced global greenhouse gas emission, energy consumption, pollution, traffic & materials waste" Economic goal Sustainably reduce by an order of magnitude the global economic burden of logistics while unlocking huge gains in business productivity" Societal goal Sustainably and significantly increase the quality of life of the logistics workers and the world s population by improving the timely accessibility and mobility of physical objects " 2013/08/09, 15/86

16 Mee4ng the IT Grand Challenge Building Upon the Informa4on Superhighway Metaphor Before: millions of unconnected computers AYer: millions of connected servers and computers to form the Informa4on Superhighway Key Enabler: transmission of formahed data packets through heterogeneous equipment respec4ng the TCP/IP protocol Result: The Digital Internet - an open, distributed networked infrastructure 2013/08/09, 16/86

17 The Physical Internet Ini4a4ve Using the Digital Internet as a Metaphor for the Physical World Even though there are fundamental differences between the physical world and the informa4on world, the Physical Internet ini4a4ve aims to exploit the Internet metaphor so as to propose a vision for a sustainable and progressively deployable breakthrough solu4on to global problems associated with the way we move, store, realize, supply and use physical objects all around the world Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, currently available as online publication, , /08/09, 17/86