Impacts of Information and Communication Technology on Urban Logistics System. Ryuichi Yoshimoto

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1 Impacts of Information and Communication Technology on Urban Logistics System Ryuichi Yoshimoto

2 Business S2S Shippers (S) B2C C2B C2C Consumers (C) S2L L2S C2G G2C Logistics service providers (L) L2L B2G G2B Governments (G) G2G Fig.1 Stakeholders in logistics system

3 Internet (mobile) B2B, B2C transaction (ecommerce) S2L, L2L transaction (elogistics) ITS Logistics operations (efleet mgnt) Fig. 2 ICT and urban logistics system

4 % Public phone Pager Mobile phone Specialized radio Multichannel access Upper 1996 Satellite comm Lower 2000 (Survey year) Fig. 3 Mobile communication media between drivers and dispatchers in Trucking Carriers

5 B2C 824 billion yen 135% up B2B 21,600 billion yen 50%up Internet contents Internet (including extranet) Desktop personal computers Mobile phone Notebook personal computers Contents exclusive for IMPs Internet Mobile Phone (IMP) net IMPs with microbrowsers Mobile commerce 59 billion yen 1300% up Ecommerce 22,400 billion yen 52% up Fig. 4 Ecommerce in Japan in

6 Tracking imode Shipping charge estimation

7 Inter net & ITS (ecommerce) More efficient transaction Internet EDI (B2B) Cyber mall (B2C) More customized products Information sharing (B2B) Onetoone marketing (B2C) New business model Reverse auction (C2B) Auction(C2C) (elogistics) More efficient transaction Logistics EDI (S2L) Courier, 3PL, 4PL (L2S) More efficient logistics operation Optimized routing (L2L) Cargo tracking (L2S) (efleet management) Advanced logistics market Matching cargoes and trucks (S2L, L2L) Shipping charge estimation (L2S) More value Added products Substituting Shopping time Global procurement Direct delivery JIT delivery Outsourcing logistics Urban consolidation Optimizing routing Tonkm Freightton Vehiclekm Vehiclekm in urban area Fig.9 Impacts of ICT on urban logistics system

8 Table 2 Modal shares by trip purpose in Tokyo in 1998 trip purpose modal share (%) rail bus car twowheeler foot Tokyo Metropolitan commuting Area (34 million pop) shopping, leisure Central Tokyo commuting (8 million pop) shopping, leisure

9 Inter net & ITS (ecommerce) More efficient transaction Internet EDI (B2B) Cyber mall (B2C) More customized products Information sharing (B2B) Onetoone marketing (B2C) New business model Reverse auction (C2B) Auction(C2C) (elogistics) More efficient transaction Logistics EDI (S2L) Courier, 3PL, 4PL (L2S) More efficient logistics operation Optimized routing (L2L) Cargo tracking (L2S) (efleet management) Advanced logistics market Matching cargoes and trucks (S2L, L2L) Shipping charge estimation (L2S) More value Added products Substituting Shopping time Global procurement Direct delivery JIT delivery Outsourcing logistics Urban consolidation Optimizing routing Tonkm Freightton Vehiclekm Vehiclekm in urban area Fig.9 Impacts of ICT on urban logistics system

10 Table 3 Freight traffic in terms of vehiclekm, tonkm and ton in Japan freight traffic in vehiclekm (billion vkm) share of commercial trucks (%) share of private trucks (%) freight traffic in tonkm (billion tkm) freight traffic in ton (million ton) , , , , , ,

11 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% commercial truck private truck Share of freight transport vehiclekm by commercial and private

12 0% 10% 20% 30% 40% 50% 60% 70% commercial vehicle small size 1.3% in 1999 commercial vehicle ordinary size Private vehicle smallsize max. loading weight < 4 ton 80% 90% 100% Share of intraprefecture* freight transport vehiclekm by commercial and private, small and ordinary Private vehicle ordinarysize max. loading weight > 4 ton *Note: there are 47 prefectures in Japan

13 Inter net & ITS (ecommerce) More efficient transaction Internet EDI (B2B) Cyber mall (B2C) More customized products Information sharing (B2B) Onetoone marketing (B2C) New business model Reverse auction (C2B) Auction(C2C) (elogistics) More efficient transaction Logistics EDI (S2L) Courier, 3PL, 4PL (L2S) More efficient logistics operation Optimized routing (L2L) Cargo tracking (L2S) (efleet management) Advanced logistics market Matching cargoes and trucks (S2L, L2L) Shipping charge estimation (L2S) More value Added products Substituting Shopping time Global procurement Direct delivery JIT delivery Outsourcing logistics Urban consolidation Optimizing routing Tonkm Freightton Vehiclekm Vehiclekm in urban area Fig.9 Impacts of ICT on urban logistics system

14 INTERNET Freight Carrier X Packet Communication Network Internet Mobile Phone INTERNET Internet Service Provider Web Server Information Sharing On Delivery Status Freight Carrier Y Freight Carrier Z Fig. 6 Sharing information on delivery status with Internet Mobile Phones

15 Access to the Web server Select from pull down menu and send a message 1:Send 0:End Vehicle ID Delivery Status Delivery Order Waiting Loading/unloading Departure Fig. 7 Interface of imode phone

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17 Inter net & ITS (ecommerce) More efficient transaction Internet EDI (B2B) Cyber mall (B2C) More customized products Information sharing (B2B) Onetoone marketing (B2C) New business model Reverse auction (C2B) Auction(C2C) (elogistics) More efficient transaction Logistics EDI (S2L) Courier, 3PL, 4PL (L2S) Advanced logistics market Matching cargoes and trucks (S2L, L2L) Shipping charge estimation (L2S) (efleet management) More efficient logistics operation Optimized routing (L2L) Cargo tracking (L2S) More value Added products Substituting Shopping time Global procurement Direct delivery JIT delivery Outsourcing logistics Urban consolidation Optimizing routing Tonkm Freightton Vehiclekm Vehiclekm in urban area Fig.9 Impacts of ICT on urban logistics system

18 Figure 8 Traffic Information on Tokyo Metropolitan Expressway (Source: ATIS, imode, 2001) Congestion Normal

19 Land use Transport network s Terminals Loading/ unloading Vehicles/ containers Cargoes Table 5 Policies on City Logistics Infrastructure provision Regulations/guidelines Economic instruments Transportation Information Regulations Standardization Pricing Subsidies Digital map, Zoning for Property tax GPS logistics activities Ring roads, Road traffic Truck route Road pricing Subsidies for Direct links to information control, Vehicle intermodal ports & airports, system, and time transport Underground Electronic toll restriction freight system collection (Urban logistics platform) Onroad parking space, (Offroad parking space) (Electric vehicles, Vehicles with handling equipments) (Berth guidance system) (Reservation on parking space) (Fleet management system, Matching system between cargoes and vehicles) (Cargo tracking, Order entry system) Compulsory loading spaces, Loading time Emission control, Loading ratio control, Compulsory use of low emission vehicles Note:( )expected to be introduced by the private sector Standards for intermodal terminals Standardized containers, pallets, electronic tags, invehicle units (EDI, AIDC) Parking charge differentiation Vehicle weight tax, Fuel tax, Environmental tax Subsidies for cooperative facilities Subsidies for offroad parking facilities Subsidies for low emission vehicles Vehicle sharing Subsidies for cooperative delivery

20 Conclusions 1. Increase of ecommerce and mobilecommerce 2. Direct home delivery increases vehiclekm 3. Vehiclekm reduced by elogistics and efleet management 4. Internet Mobile Phones and Intelligent Transport Systems work 5. Information infrastructure by the governments