Technology in Freight

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1 Technology in Freight A Look at Technology s Impact on How We Move Goods Meredith K. Cebelak, PE, PhD Property of Gresham, Smith and Partners

2 Freight Technologies Tracking Goods Drivers 3D Printing Connected & Autonomous Vehicles Big Data Logistics December 4, 2016 Technology in Freight 2

3 Freight Tracking Technologies Goods and Vehicles Radio Frequency Identification (RFID) Global Navigation Satellite System (GNSS) Drivers Electronic Logging Devices December 4, 2016 Technology in Freight 3

4 Freight Tracking Technologies Radio Frequency Identification (RFID) Silicon chip with a unique ID Read by a radio-frequency waves Backend system stores, retrieves, and manages information December 4, 2016 Technology in Freight 4

5 Freight Tracking Technologies Radio Frequency Identification (RFID) Usage benefits Labor and time savings Improved accuracy of inventory processes Increased efficiency: Production management processes Material flow management Logistics and transportation Retail and distribution industries Global market usage shows 20% growth in usage per year $30 billion industry by % from government, retail, and transportation and logistics sectors over next 5 years December 4, 2016 Technology in Freight 5

6 Freight Tracking Technologies Global Navigation Satellite System (GNSS) Global Positioning Systems (GPS) US system Accuracy ~3.5 meters (11.48 ft) horizontal, vertical less Typically used for fleet and cargo location Minimal usage for factory/warehouse floors» More costly than RFID and bar codes» Loss of precision for location in enclosed spaces Improves reliability of supply chain Increases the visibility of goods across the network Beter estimation of arrival times Optimization of routes December 4, 2016 Technology in Freight 6

7 Freight Tracking Technologies GNSS Advances in GNSS Galileo Developed by the EU Alternative independent high-precision positioning system Intended to provide» Horizontal and vertical position measurements within 1 meter (3.28 ft) precision» Better positioning services at high latitudes Scheduled for full operation in 2020» Low-precision (1 meter) free to all» High-precision (to the centimeter) for commercial users December 4, 2016 Technology in Freight 7

8 Freight Tracking Technologies GNSS Advances in GNSS GLONASS (in iphones now) Developed by Russia and used since 1976 Global coverage with comparable precision to GPS Used with GPS to fix position more quickly and accurately» Especially in built-up areas (downtowns)» Smartphone accuracy of location within 2 meters (6.56 ft) BeiDou Navigation Satellite System (BDS) Developed by China Full-scale global navigation system under construction 2 levels» 10 meter accuracy (free for civilians)» 10 centimeter accuracy (licensed) December 4, 2016 Technology in Freight 8

9 Freight Tracking Technologies Electronic Logging Devices (ELD) USDOT s Federal Motor Carrier Safety Administration (FMCSA) require usage of ELD Effective - February 16, 2016 Compliance - December 16, 2019 Goal to strengthen commercial truck and bus driver compliance with hours-of-service regulations Prevent fatigue Increase road safety Reduces required industry paperwork Automatically records driving time Monitors engine hours, vehicle movement, miles driven, and location information Permits the use of smart phones and other wireless devices as ELDs December 4, 2016 Go to View > Header and Footer to change this text to the presentation title 9

10 3D Printing Differs from Traditional Manufacturing Creates objects through adding rather than subtracting materials Users include Boeing, General Electric Growth Industry Manufacturing Retail Consumer use Supply chain December 4, 2016 Technology in Freight 10

11 3D Printing Supply Chain Transformation New component for logistic industry Raw materials distribution Made-to-order products Customization of objects (iphone case) Part manufacturing (service parts) Reduction in warehousing needs Changes in operations schedules More nearsourcing and US production Manufacturing facilities nearer to end destination Shortened delivery processes Reduction in long-haul shipping and freight forwarding December 4, 2016 Technology in Freight 11

12 Connected & Autonomous Vehicles Connected Trucking V2V and V2I Real time road information Congestion Traffic incidents Weather conditions Vehicle diagnostics Opportunities FRATIS Dynamic travel planning and performance Drayage Optimization Freight signal priority Parking guidance December 4, 2016 Technology in Freight 12

13 Connected & Autonomous Vehicles Connected Trucking Benefits Safety 8% (3100 lives) of vehicle fatalities involve heavy trucks Driving time compliance Efficiency Fuel Operations December 4, 2016 Technology in Freight 13

14 Connected & Autonomous Vehicles Autonomous Trucking Estimates of 1/3 of all long haul trucks semi-autonomous by 2025 New federal guidelines pushing autonomy First commercial use Budweiser deliver of beer in Colorado Opportunities Transport and assisted picking in warehouses Outdoor logistics - yard, harbor and airport operations Truck platooning Benefits Assists with driving shortage Cost savings fuel, time December 4, 2016 Technology in Freight 14

15 Big Data Logistics Big Data - the 4 Vs Volume (and complexity) Variety Structured (transactional, text) Unstructured (videos, audio) Velocity Speed of data cleaning for analysis Veracity Data integrity December 4, 2016 Technology in Freight 15

16 Big Data Logistics Big Data Freight Sources Point-of-sale RFID data streams Fleet GPS data Call center calls Consumer blogs Online shopping habits December 4, 2016 Technology in Freight 16

17 Big Data Logistics Uses Insight into supply chains through predictive analytics Enhance processes efficiency Proactive inventory management Improved prediction accuracy of expected parcels and freight Proactive shipping Insight into enterprises Improved operational and strategic decision making Optimized capacity utilization Reduced risk Creation of new business models e-commerce, just-in-time delivery Enriched consumer experience December 4, 2016 Technology in Freight 17

18 Conclusions The Freight Industry is Changing Goods Regulations Shipping patterns Freight Technology & Big Data Analytics Influence Industry s Business Decisions Infrastructure Cities Policies December 4, 2016 Technology in Freight 18

19 Thank you! Questions? December 4, 2016 Technology in Freight 19