freight transportation in the future - some indications

.FREIGHT TRANSPORTATION

IN THE FUTURE SOME INDICATIONS

Per Olof Arnäs Chalmers University of Technology

@Dr_PO per-olof.arnas@chalmers.se

about.me/perolofarnas Slides: slideshare.net/poar

Horizon car by Shigeru Komatsuzaki

Doing some Sisyphus work by Kalexanderson on Flickr (CC-BY,NC,SA)

5 GLOBAL TRENDS

Source: PWC (google: pwc megatrends 2014)

Crowd by James Cridland on Flickr (CC-BY)

Megatrend #1

Demographic and social

change

Source: PWC (google: pwc megatrends 2014)

Four Storms And A Twister by JD Hancock on Flickr (CC-BY)

Megatrend #2

Shift in economic

powerSource: PWC (google: pwc megatrends 2014)

Boston Downtown at Night by Werner Kunz on Flickr (CC-BY,NC,SA)

Megatrend #3

Rapid urbanisation

Source: PWC (google: pwc megatrends 2014)

¡Rayos! by José Eugenio Gómez Rodríguez on Flickr (CC-BY,NC,SA)

Megatrend #4

Climate change and

resource scarcity

Source: PWC (google: pwc megatrends 2014)

Megatrend #5

Technological breakthroughs

Source: PWC (google: pwc megatrends 2014)

Demographic and social

change

Shift in economic

power

Rapid urbanisation

Technological breakthroughsClimate

change and resource scarcity

5 GLOBAL TRENDS

Things are happening outside the freight industry

(and have been for some time)

Things are happening outside the freight industry

(and have been for some time)

1957

Things are happening outside the freight industry

(and have been for some time)

Image: Richard Hancock, twitter.com/CanaryWorf

2015

355:365:2015BWH by hermitsmoores on Flickr (CC-BY,NC,SA)

Make analogue information digital

Digitization:

Mob

ile W

orld

Con

gres

s 201

6 by

Kār

lis D

ambrān

s on

Flic

kr (C

C-BY

)

Increased use of digital technology

Digitalization:

Mob

ile W

orld

Con

gres

s 201

6 by

Kār

lis D

ambrān

s on

Flic

kr (C

C-BY

)

Increased use of digital technology

Digitalization:

Make analogue information digital

Digitization:

Both are important! (and interesting)

Ominous Windmill by Conrad Kuiper on Flickr (CC-BY,NC,SA)

Digit(al)ization is not a trend

Ominous Windmill by Conrad Kuiper on Flickr (CC-BY,NC,SA)

Digit(al)ization is not a trend

It is a force of nature

We are in the middle of a

gigantic exponential

development curve

beginni

ng

A new global eco system where new types of, knowledge based,

industries compete with traditional ones

http://jaysimons.deviantart.com/art/Map-of-the-Internet-1-0-427143215

Gartners Hype Cycle for Emerging Technologies

Augmenting humans with technology

Machines replacing humans

Humans and machines working

alongside each other

Machines better

understanding humans and

the environment

Humans better understanding

machines

Machines and humans

becoming smarter

Gartners Hype Cycle for Emerging Technologies

Source: Gartner July 2015

Could affect transportation and logistics

Process improvement

Servic

e

developm

entInfrastructure

development

Customer controls last

mile

Faster and better

returns

Better delivery

experience

Secure identification on pickup/delivery

Distribution of food

Home delivery

Support companies that want to add E-commerce to their business

Collect-in-store

Local same-day delivery

Improved delivery note

Delivery and pickup during

weekends

Marketing of the E-channel

Sustainable and climate friendly

3PL targeted at E-commerce

Faster, more reliable and secure

deliveries in Europe

Better infrastructure on

consumer side

Better security

Source: Svensk Digital Handel 2014 Bo Zetterqvist

Areas of development for logistics companies in relation to e-commerce

Process improvement

Servic

e

developm

entInfrastructure

development

Customer controls last mile

Faster and better

returns

Better delivery

experience

Secure identification on pickup/delivery

Distribution of food

Home delivery

Support companies that want to add E-commerce to their business

Collect-in-store

Local same-day delivery

Improved delivery note

Delivery and pickup during

weekends

Marketing of the E-channel

Sustainable and climate

friendly

3PL targeted at E-commerce

Faster, more reliable and

secure deliveries in Europe

Better infrastructure on

consumer side

Better security

Source: Svensk Digital Handel 2014 Bo Zetterqvist

Areas of development for logistics companies in relation to e-commerce

Digital development

needed in freight

transport

Customer controls last mile

Faster and better

returns

Better delivery

experience

Secure identification

on pickup/delivery

Collect-in-store

Improved delivery note

Sustainable and climate

friendly3PL targeted at

E-commerce

Faster, more reliable and

secure deliveries in

Europe

Better security

Source: Svensk Digital Handel 2014 Bo Zetterqvist

Digital development needed in freight transport

Process improvement Use ICT to make the system more efficient

Real-time decision making, footprinting, better digital interaction between stakeholders

Service development Use ICT to create new services

Digital information enables new business models

Infrastructure development Use ICT to interact with infrastructure

Location Based Intelligence etc.

Business processes Infrastructure

Paper based Phone

Papers

Road signsAnalogue

tools

RDS

Monitor fuel

cosnumption

Digitalisation version 0 0.5 1.0 1.5 2.0

E-m

ail

Fax

TMS

-

systems

Excel

Route planning

GPS for n

avigatio

n

Electro

nically

genera

ted

freig

ht docum

ents

Barcodes

RFI

D-t

ags

Simple order handling

Advanced order handling

Open interface

Web

based UI

Platform based

systems

Hardw

are-

oriented

Data collection

systems

(prop

rietary)

Com

munication w

ith

vehicles

E-invoice

Web based

booking

Route optimisation

Th

e so

cia

l web

Open connectivity

Integrated

prognosis

Data collection

systems (open)

Tolling

systems

Webservices with

traffic data

Dyn

amic

ro

utin

g sy

stem

s

Pe

rform

an

ce

Ba

sed

ac

ce

ss

Pe

rfo

rma

nc

e

Ba

sed

ac

ce

ss

Mas

hups

Mul

tiple

dat

a so

urce

s

Pro

be

dat

a

Individual

routin

g

inform

ation

Platooning

PlatooningExceptions handling

Sm

art g

ood

s

Manual

Computers

Software

Functions

Dis

trib

uted

deci

sion

m

akin

g

Goods as bi-

directio

nal

hyperlink

Paper based

CC-BY Per Olof Arnäs, Chalmers

Goods VehicleBarcodes

RFIDSensors

ERP systemsTMS systems

E-invoicesCloudbased

services

Order handlingDriver supportVehicle economics

RDS-TMCRoad taxesActive traffic support

Predictive

maintenance

2014-10-15

Integration of digital and physical worlds

http://www.sygic.com/gps-navigation/addon/head-up-display

Say hi to the new sensors

http://mobsentech.com

”New” modes of transport

https://www.youtube.com/watch?v=50sv4M4rgBMhttps://www.youtube.com/watch?v=HG76DcXySuw

More automation

Strategic Tactical Operational Predictive

Time horizons

We are approaching this boundary

…and we are starting to move past it!

Real-time!

The Action of New York City by Trey Ratcliff on Flickr (CC-BY,NC,SA)

Real-time (data driven) decision making

Data collection Data processingData exploitation

http://mindconnect.se/http://waze.com

https://mydrive.tomtom.com/

The sharing economy hits freight transport (again and again…)

Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo by Antana on Flickr (CC-BY,SA)

Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo by Antana on Flickr (CC-BY,SA)

Block chain technology

Records transactions and data among actors that do not trust each other

Fully decentralized

https://news.bitcoin.com/nimber-disrupts-logistics-system-blockchain-matters/

http://www.economist.com/news/leaders/21677198-technology-behind-bitcoin-could-transform-how-economy-works-trust-machine

Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo by Antana on Flickr (CC-BY,SA)

http://www.coindesk.com/how-bitcoins-technology-could-make-supply-chains-more-transparent/

https://news.bitcoin.com/future-use-cases-blockchain-technology-parcel-tracking-regardless-courier/

Block chain technology

Records transactions and data among actors that do not trust each other

Fully decentralized

Servitization

Move up in the value chain

Upgrade drop points

Consumer services

Expose data

Mall of Scandinavia

http://www.smartcompany.com.au/growth/innovation/41765-online-retailer-offers-a-courier-that-waits-at-your-door-fashion-advice-not-included.html

https://www.amazon.com/dashbutton

https://www.shyp.com

Curated services made possible with data

Mindconnect Sendify

FREIGHT TRANSPORTATION IN THE FUTURE

SOME INDICATIONS

Per Olof Arnäs Chalmers University of Technology

@Dr_PO per-olof.arnas@chalmers.se

about.me/perolofarnas Slides: slideshare.net/poar

Horizon car by Shigeru Komatsuzaki

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