a definition approacha definition approach to smart logistics · a definition approacha definition...

A Definition Approach toA Definition Approach toSmart Logistics

ruSMART 2008

SS 2007

Dieter UckelmannEmail: [email protected]

Topics

What’s smart?What s smart?

Who’s paying?

Scenarios

Definition of Smart LogisticsDefinition of Smart Logistics

Future Work (Smart Truck)

Dipl.-Ing. Dieter Uckelmann: Identifikationssysteme in Produktion und Logistik

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Global RF Lab Alliance


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Smart Products and Services are Technology InitiatedInitiated

Radical changes Mostly smaller hLogistics changes

Technologies

Technology driven Smart Services and Products can lead to large and radical changes.


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Why is the Importance of Technology and Method Driven Approaches Growing within LogisticsApproaches Growing within Logistics

• Process analysis will become more and more

lcomplex• Methods and

technology initiated approaches will gain

(Picture taken from: Laudon & Laudon, Essentials of MIS)

pp gimportance


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(Picture taken from: Laudon & Laudon, Essentials of MIS)

Smart Products and Services make live easier

Fleisch et al.: Smart products and services help to dispense h f f th i t l ti iti t d t dhumans of some of their control activities to products and services. Their function is based on proximate environments and relations including assets spare parts tools related toand relations including assets, spare parts, tools related to Smart Products as well as product lifecycle history and neighbourhood to other products. g pMark Weiser: Ubiquitous computing just might help to free our minds from unnecessary work…


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Smart Products Examples – 1

Identify item and perform simple if-then-else algorithmHandgun, which only works if a chip at the wrist of the owner is in close proximityConsumer goods which only work if original spare parts are used (e gConsumer goods which only work if original spare parts are used (e.g. printer and toner cartridge)Error message is generated, if spare parts are misplaced during

blassemblyHazardous goods generate an alarm, if other goods are in close proximity that could lead to catastrophesp y pToolbox checks its own completeness


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Source: Fleisch et al.

Smart Products Examples – 2

Identify item, sense environmentPackaging of cold chain goods indicates if cold chain has been disrupted

Identify item sense environment perform simple if then elseIdentify item, sense environment, perform simple if-then-else algorithm, communicate

Machine (tool, car, airplane) only works if original parts are used; if ( , , p ) y g p ;usage cycle ends, new spare parts are ordered automaticallyLot senses its location, communicates to production machines, machine generates warning if production lot does not fitmachine generates warning, if production lot does not fit Vending machine senses its inventory as well as its service needs and generates a message, if replenishment or service is required


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What are Smart Services?

Smart Services Control services – delegating of control tasks such as tracking and tracing, theft protection, counterfeiting, reorderingLeasing services high visibility enables conversion of the basis ofLeasing services – high visibility enables conversion of the basis of calculation from owner based information to usage based informationRisk services – insurances changes their pricing model from estimates to usage based feesInformation services – instant online access to ubiquitous computing related informationrelated informationComplex services – they offer a combination of the above mentioned services


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What Technologies are used in Smart Logistics?

Mark Weiser forecasts that the defining words for the third f ti ill t b "i t lli t" " t" b twave of computing will not be "intelligent" or "agent", but

rather "invisible" and "calm" and "connection“ . (dispute with Nicholas Negroponte)Nicholas Negroponte)

Neil Gershenfeld: Bill of Things’ rights (Things have the right to):Have an identityyAccess other objectsDetect the nature of their environment

When thinking about Smart Logistics this dispute is still open. While Weiser until today still proves to be right, there is a huge amount of ongoing research about intelligent and agenthuge amount of ongoing research about intelligent and agent based logistics. (Moore et al.; Davidson et al.; Graudina et al.)


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Auto-ID – Advantages of RFID

Bulk-readingNo line of sight requiredRobust compared to barcode concerning dirt etcRobust compared to barcode concerning dirt etc.Large memory R it bl / h bl d t tRe-writable / changeable data storageEase of useSpeed of data entryCheaper than other solutionsCheaper than other solutions


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Locating

Differentiators Locating MethodsDifferentiatorsPhysical / symbolic locationAbsolute / relative location

Locating MethodsCell-of-origin (transponder-of-origin)

Transmission mediaLocating method

Amplitude (RSSI, received signal strength indicator) triangulation

Location computed by object / infrastructureAccuracy

triangulationTime of flight ranging systemsTime difference of arrival Accuracy

ScalabilityCommunication intervals

(TDOA)Angle of arrival (AoA)

Costs for infrastructure and beacon (e.g. tags)


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Smart Technologies at the LogDynamics Lab

R b ti

5. Communicate

6. Act Robotics

Middleware

3. Sense

4. Process

Logger Meshed networks

Software agentsMiddleware

1 Identify

2. Locate

RFID Barcode

RTLS

1. Identify RFID Barcode


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How to Enforce Technology Usage

MandatingHas limits in non-dominated, distributed markets

Malus (penalty) system(p y) yHas limits in non-dominated, distributed markets

Cost and technology sharingCost and technology sharing Model fails to scale in large environments

Open market driven and usage based modelOpen, market driven and usage based modelAsymmetries concerning the distribution of costs and benefits between Smart Service and Products providersbenefits between Smart Service and Products providers and users may only be overcome, if standard market rules can be applied


can be applied

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Usage Based Billing

Smart Services (and Products?) offer the ability to measure h t ld t b d b f Th bl tiwhat could not be measured before. They enable operating,

pricing and trading of previous untradeable services (and products?) Usage based billing is only possible if usageproducts?). Usage based billing is only possible, if usage can be quantified. (Fleisch et al.)

Jonkers et al see two elements within usage data acquisitionJonkers et al. see two elements within usage data acquisition – metering and collecting. While metering registers the usage of a resource in real-time, collectors aggregate data from one or more meters and forward these data for accounting.

Meter Collect Bill


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Questions to be Asked for Smart Logistics

Which additional functionality can be offered to the customer? (Fl i h t l )(Fleisch et al.)

Which additional functionality offers benefits to the production company? (Fleisch et al )company? (Fleisch et al.)

How can this additional functionality be metered collectedHow can this additional functionality be metered, collected and billed?How can this be done in an open scalable networkedHow can this be done in an open, scalable, networked environment with multiple beneficiaries?


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Scenario 1 – Cross Supply Chain Value (Retail)

Case for time saving within the Distribution Value ChainCase for time saving within the Distribution Value Chain

Example: 6 items (e.g. DVD-Player) per carton, 12 cartons on 1 pallet

Manufacturer TransportationDistribution

CenterDistribution Outlet Shelf Customer

IdentifyDelivery

Check items with ship list

IdentifyDelivery

Check items with ship list

Check shelf inventory

Check outCustomer

Total

Barcode 2 sec 203 sec 2 sec 203 sec 144 sec 10 sec 564 sec

RFID 2 sec 15 sec 2 sec 15 sec 15 sec 1 sec 50 sec

Whil i di id l ti i did t d 188 d th ll ti d ithiWhile individual time saving did not exceed 188 seconds, the overall time saved within the value chain added up to 514 seconds.

Source: Accenture


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Source: Accenture

Meter Collect Bill

Scenario 2 – Rental System


Slide 19Meter Collect Bill

Scenario 3 – Post Key-player Information Handling

Supplier

After-production logistic provider

Maintenance providerKey-player

Recycling companies

Slide 20Meter Collect BillMandateMalus


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Definition of Smart Logistics – Part 1

Smart Logistics embraces Smart Services as well as Smart P d t ithi L i tiProducts within LogisticsSmart Logistics is derived from a technology driven approach, and thereb s bject to changeand thereby subject to changeSmart Logistics frees humans from (control) activities that can be delegated to Smart Products and Servicesbe delegated to Smart Products and ServicesSmart Logistics are invisible and calm and can, therefore, be described as transparentdescribed as transparent


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Definition of Smart Logistics – Part 2

Smart Logistics are connected, thus they communicate and ibl i t t ith th i i tpossibly interact with their environment

Smart Logistics facilitate state-of-the-art (innovative and a ailable) data processing ( hich ma incl de b t do notavailable) data processing (which may include, but do not require, software agents)Smart Logistics integrate existing logistic technologies suchSmart Logistics integrate existing logistic technologies, such as material handling systems, and enable these to react and act in a correspondingly smart mannerp g ySmart Logistics include state-of-the-art billing, payment or licensing as integral component


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Who is Prepared for “Smart” Billing

The upcoming paradigm shift towards ubiquitous computing is hi hl lik l t h th IT d T l i tihighly likely to change the IT and Telecommunications business considerably, probably more than what the Internet did to telecommunications a few years ago Telcos today aredid to telecommunications a few years ago. Telcos today are unfortunately not well prepared for this, in particular due to lack of technological involvement. (Eurescom) g ( )Online-payment services are more familiar with ubiquitous computing. Still, these service providers are not positioned to handle micropayments in business-to-business (B2B) relations. B2B requirements include service level agreements, different charging schemes and clearance of mutual billsdifferent charging schemes, and clearance of mutual bills before payment. (Jonkers et al.)


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What Could be a Possible Solution?


Slide 24Based on: Harrison

Project: Smart Truck

RFIDSensorsTelematic unit Web-based servicesSoftware-agentsInformation billibilling capabilites(under(under development)


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References

Weiser, M.: Open House. In: ITP Review, the web magazine of the Interactive Telecommunications Program of New York University. New York (1996)Moore M L Reyns R B Kumara S R T Hummel J R : Distributed intelligent agents for logistics (DIAL) In: Systems Man andMoore, M.L., Reyns, R.B., Kumara, S.R.T., Hummel, J.R.: Distributed intelligent agents for logistics (DIAL). In: Systems, Man, and Cybernetics, 1997. Proceedings of the IEEE International Conference on Computational Cybernetics and Simulation, vol.3, pp. 2782 – 2787. (1997)Davidsson, P., Henesey, L., Ramstedt, L., Törnquist, J. Wernstedt, F.: An Analysis of Agent-Based Approaches to Transport Logistics. Transportation Research Part C: Emerging Technologies, Vol. 13(4), pp. 255-271. Elsevier, 2005.Graudina V Grundspenkis J : Technologies and Multi-Agent System Architectures for Transportation and Logistics Support: An OverviewGraudina, V., Grundspenkis, J.: Technologies and Multi-Agent System Architectures for Transportation and Logistics Support: An Overview. In: Rachev, B., Smrikarov, A. (eds.), Proceedings of the International Conference on Computer Systems and Technologies and Workshop for PhD Students in Computing, pp. IIIA.6-1 – IIIA.6-6. (2005)Fleisch, E. ; Christ, O. ; Dierkes, M.: Die betriebswirtschaftliche Vision des Internets der Dinge. In: Fleisch, E., Mattern, F. (eds.) Das Internet der Dinge, pp. 3-37. Springer, Berlin (2005) Jonkers H Hille S C Tokmakoff A M Wibbels: A functional architecture to support commercial exploitation of Internet based services In:Jonkers, H., Hille, S.C., Tokmakoff, A., M. Wibbels: A functional architecture to support commercial exploitation of Internet-based services. In: Winiwarter, W., Bressan, S., Ibrahim, I.K. (eds.), Third International Conference on Information Integration and Web-based Applications and Services (iiWAS), pp. 277-288. Linz, Austria (2001)Gershenfield, N.: When Things Start to Think. Henry Holt and Company, New York (1999)Eurescom: Smart Devices “When Things Start to Think”. Project P946-GI, Deliverable 1, Strategic Study Eurescom, the European Institute for Research and Strategic Studies in Telecommunications GmbH http://www eurescom de/~pub deliverables/p900 series/P946/D1/p946d1 pdfResearch and Strategic Studies in Telecommunications GmbH, http://www.eurescom.de/~pub-deliverables/p900-series/P946/D1/p946d1.pdfDannenberg, M., Ulrich, A.: E-Payment und E-Billing: elektronische Bezahlsysteme für Mobilfunk und Internet. Gabler, Wiesbaden (2004)Harrison, M.: EPC Information Service, www.m-lab.ch/auto-id/SwissReWorkshop/papers/ EPCinformationService.pdfUckelmann, D.: The Value of RF-based Information. In: Haasis, H. D., Kreowski, H. J., Scholz-Reiter, B. (eds.) Dynamics in Logistics, LDIC 2007, pp. 183-197. Berlin, Springer (2008)


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Thank you for your attentiony yDieter UckelmannPhone: ++49 421 218 [email protected]

http://www.logdynamics.de/


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a definition approacha definition approach to smart logistics · a definition approacha definition...

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