physical internet manifesto eng version 1.11.1 2012-11-14 bm_ml
TRANSCRIPT
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Manifesto
Transforming the way physical objects are moved, stored, realized, supplied and used,
aiming towards greater efficiency and sustainability
Professor Benoit Montreuil
Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center
on Enterprise Networks, Logistics and Transportation Laval University, Québec, Canada
Version 1.11.1: 2012-11-14
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Acknowledgements The Physical Internet Manifesto has greatly benefited from
the contributions of esteemed colleagues and doctoral students America CIRRELT Research Center:
• Teodor Crainic - UQAM • Michel Gendreau - Université de Montréal • Driss Hakimi, Mustapha Lounès, Jacques Renaud, Helia Sohrabi - Université Laval CICMHE, College-Industry Council for Material Handling Education:
• Russ Meller – CELDi, University of Arkansas • Kevin Gue & Jeff Smith – Auburn University • Kimberley Ellis –CELDi, Virginia Tech • Leon McGinnis – Georgia Tech • Mike Ogle – MHIA
Europe • Éric Ballot, Frédéric Fontane, Shenle Pan, Rochdi Sarraj – Mines ParisTech • Rémy Glardon – EPFL • Rene De Koster – Erasmus University • Olivier Labarthe – IUT Bordeaux Montesquieu • Detlef Spee – Fraunhofer Institute for Material Flow and Logistic
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Manifesto Outline
Global Logistics Sustainability Grand Challenge
Envisioning the Physical Internet
Enabling a Logistics Web
Toward Realizing the Vision
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Sample of companies contributing to the Physical Internet Initiative
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics is the backbone sustaining our lifestyle At face value, logistics seems to be doing great!
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics is the backbone sustaining eBusiness At face value, logistics seems to be doing great!
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
7
Container Logistics is the backbone
sustaining the
globalization of world trade
At face value, logistics
seems to be doing great!
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
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
Yet we have to face a harsh fact
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
ECONOMIC Logistics: 5-15% burden on GDP of most countries
worldwide logistics costs grow faster than world trade
ENVIRONMENT One of the heaviest greenhouse gas generators,
energy consumers, polluters and materials wasters Growing negative contribution
while nations’ goals aims for heavy reductions SOCIAL
Lack of fast, reliable and affordable accessibility and mobility of physical objects
for the vast majority of the world’s population Too often precarious logistic work conditions
Logistics inefficiency and unsustainability Why do we need to change ?
European Commission: A Roadmap for moving to a competitive low carbon economy in 2050, Office of the European Union, Brussels, 16p. (2011) Serveau, L.T. : Inventaire des émissions de polluants dans l’atmosphère en France. In: SECTEN, Citepa, Paris (2011) European Commission: EU energy and transport in figures. Statistical Pocketbook, (2009)
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
1. We are shipping air and packaging 2. Empty travel is the norm rather than the exception 3. Truckers have become the modern cowboys 4. Products mostly sit idle, stored where unneeded, yet so often unavailable fast where
needed 5. Production and storage facilities are poorly used 6. So many products are never sold, never used 7. Products do not reach those who need them the most 8. Products unnecessarily move, crisscrossing the world 9. Fast & reliable multimodal transport is a dream 10. Getting products in and out of cities is a nightmare 11. Logistics networks & supply chains are neither secure nor robust 12. Smart automation & technology are hard to justify 13. Innovation is strangled
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
11
1. We are shipping air and packaging • Trucks and containers are often half empty at departure, with a large chunk
of the non-emptiness being filled by packaging: 56,8% full when not empty; 42,6% average utilization
2. Empty travel is the norm rather than the exception • Vehicles & containers often return empty, or travel extra routes to find
return shipments (25% of travel), and loaded vehicles get emptier and emptier as their route unfolds from delivery point to delivery point
3. Truckers have become the modern cowboys • So many are always on the road, so often away from home for long durations
(very high turnover rate); Precarious family & social life, and personal health; in general, logistic operators and material handling personnel have similar precarious positions
4. Products mostly sit idle, stored where unneeded yet so often unavailable fast where needed
• Manufacturers, distributors, retailers and users are all storing products often in vast quantities through their networks of warehouses and distribution centers, yet service levels and response times to local users are constraining and unreliable
5. Poorly / badly used production and storage facilities • Most businesses invest in storage and/or production facilities that are lowly
used most of the times, or yet badly used, dealing with products which would better be dealt elsewhere, forcing unnecessary travel
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
6. So many products are never sold, never used • A significant portion of consumer products that are made never reach the right
market on time, ending up unsold and unused while there would have been required elsewhere; in the fresh food industry, products are wasted at an alarming rate: 12% in transit, 25% at retail
7. Products do not reach those who need them the most • This is specially true in less developed countries and disaster-crisis zones
8. Products unnecessarily move, crisscrossing the world • Products commonly travel thousands of miles-kilometers which could have been
avoided by making or assembling it much nearer to point of use
9. Fast & reliable multimodal transport is still a dream Even though there are great examples, in general synchronization is so poor,
interfaces so badly designed, that multimodal routes are most often time-and-cost inefficient and risky
10. Getting products in, through and out of cities is a nightmare Most cities are not designed and equipped for easing freight transportation,
handling & storage, making the feeding of businesses and citizens in cities a nightmare
Rusting new cars in disused airfield
Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
11. 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
12. 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
13. 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
Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets
Econ
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Envi
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Soci
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1 We are shipping air and packaging
2 Empty travel is the norm rather than the exception
3 Truckers have become the modern cowboys
4 Products mostly sit idle, stored where unneeded, yet so often unavailable fast where needed
5 Production and storage facilities are poorly used
6 So many products are never sold, never used
7 Products do not reach those who need them the most
8 Products unnecessarily move, crisscrossing the world
9 Fast & reliable multimodal transport is a dream
10 Getting products in and out of cities is a nightmare
11 Logistics networks & supply chains are neither secure nor robust
12 Smart automation & technology are hard to justify
13 Innovation is strangled
Inefficiency and unsustainability symptoms
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
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
The Global Logistics Sustainability Grand Challenge
Montreuil B. (2011) “Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge,” Logistics Research, 3(2-3), 71-87, 2011.
The Global Logistics Sustainability Grand Challenge
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Eliciting the Overall Goal Toward Global Logistics Efficiency and Sustainability
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
Environmental goal Sustainably reduce by an order of magnitude the logistics-induced global greenhouse gas emission, energy consumption, pollution & materials waste
Economic goal Sustainably reduce by an order of magnitude the global economic burden of logistics while unlocking huge gains in business productivity
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Digital Internet Exploiting the Information Highway Metaphor
When looking for a way to conceptualize how it should transform itself,
it relied on a physical transport and logistics metaphor: Building the information highway
Decades ago the information & communications technology community was stuck in a huge inefficient and unsustainable tangle
due to millions of unconnected computers
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Before: millions of unconnected computers – inefficient and unsustainable After: millions of interconnected servers and computers to form
the “Information Superhighway”
Key Enabler: transmission of formatted data packets through heterogeneous equipment respecting the TCP/IP protocol
Result: The Internet, the Web, the Mobile, the Apps,… An open and interconnected distributed network infrastructure
Forever transforming industry, economy, culture and society at large
Meeting the IT Grand Challenge Building Upon the Information Superhighway Metaphor
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet Initiative Using the Digital Internet as a Metaphor for the Physical World
Even though there are fundamental differences between the physical world and the information world,
the Physical Internet initiative aims to exploit the Internet metaphor
so as to propose a vision for a sustainable and progressively deployable
breakthrough solution 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, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Exposing Key Features of the Physical Internet Vision
Evolving towards a worldwide Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet is an open global logistics system founded on physical, digital
and operational interconnectivity
through encapsulation, interfaces and protocols
The PI enables
an efficient, sustainable, adaptable and resilient
Logistics Web
The Physical Internet (PI, π)
Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer.
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
• Open market for goods transportation (eBay-style)
• Handles only “black box” modular containers
• Open and shared transportation and distribution networks
• Vast community of users • Supplier certification and
ratings-by-users to drive logistics performance
Simplified Mental Image of the Physical Internet
Seamless modular container consolidation in the Physical Internet B. Montreuil & C. Thivierge, 2011
Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Positioning the Physical Internet
Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org
World Wide Web (WWW) Digital Internet
Digital Information Packets
Open Logistics Web Physical Internet
Smart Physical Packets
Connecting Physical Objects through WWW
Internet of Things Smart Networked Objects
Smart Grid Energy
Internet
Energy Packets
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Universal Interconnectivity
High-performance logistic centers, movers and systems,
making it seamless, easy, fast, reliable and cheap
to interconnect physical objects through modes and routes,
with an overarching aim toward universal interconnectivity
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Encapsulation The Physical Internet does not deal directly with physical goods
It requires their
standardized encapsulation, such as data packets in
the Digital Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical encapsulation
Physically encapsulate goods in π-containers
that are modular, ecofriendly, smart
and standardized worldwide
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical encapsulation of goods in π-containers Modular, ecofriendly, smart & standardized worldwide
• Merchandise is unitized as content of a π-container and is not dealt with explicitly by PI • Modular dimensions from cargo container sizes down to tiny sizes • Conceived to be easily flowed through various transport, handling & storage modes & means • Easy to handle, store, transport, snap, interlock, load, unload, construct and dismantle,
compose and decompose • Light, made of environment friendly materials, with minimal off-service footprint • Smart tag enabled, with sensors if necessary: proper identification, routing and maintaining • Various usage-adapted structural grades • Conditioning capabilities as necessary (e.g. temperature) • Sealable for security purposes
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical encapsulation of goods in π-containers World standard modular dimensions and fixtures
É. Ballot, B. Montreuil, R.D. Meller
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Illustrative potential modular
dimensions
Conceptual design illustrating the dimensional modularity of π-containers
The illustrated π-container design has a strictly conceptual and functional: it has no prescriptive technical design and engineering intent
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physically encapsulation of goods in π-containers Easy to compose into composite containers, then to decompose
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Conceptual design illustrating the composition functionality
of π-containers
The illustrated π-container design has a strictly conceptual and functional: it has no prescriptive technical design and engineering intent
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Consumer Product Goods Company 494 products 268 shelf packages
258 case sizes
At the pallet level, there is a net savings of 10%!
At the case level, there is a net increase of 10% Using only of modular
dimensions (<15)
Here, no change in the shape of products. The number of products by case is allowed to vary by + or - 10%. Experiment limited to cases rather than π-containers to focus on modularity
The spatial impact of modular encapsulation
Meller, R. D., Lin, Y.-H., and Ellis, K. P., “The Impact of Standardized Metric Physical Internet Containers on the Shipping Volume of Manufacturers,” in Proceedings of the 14th IFAC Symposium on Information Control Problems in Manufacturing, Bucharest – Romania, (2012).
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
• Maximal volumetric and functional density while being in Physical Internet containers, extendable to their usage dimensions when necessary
– Functional density of an object can be expressed as the ratio of its useful functionality over the product of its weight and volume
• Only key components and modules have to travel extensively – Easy to be completed near point of use
using locally available objects
Design products fitting containers with minimal space waste
Products designed and engineered to minimize the load and burden they generate on the Physical Internet,
with their dimensions adapted to standard container dimensions, with maximal volumetric and functional density while containerized
Source: guim.fr
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Digital encapsulation Exploiting as best as possible
the capabilities of smart π-containers connected to the Digital Internet
and the World Wide Web, and of their embedded smart objects,
for improving the performance as perceived by the clients
and the overall performance of the Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet and the Internet of Things
Image: http://www.globetracker.biz/GlobeTracker/News.asp
The Internet of Things is about enabling ubiquitous connection with physical objects equipped with smart connective technology (RFID, GPS, sensors, Internet, etc.), making the objects ever smarter and enabling distributed self-control of objects through networks
The Physical Internet is to exploit as best as possible the Internet of Things to enable the ubiquitous connectivity of its π-containers and π-systems
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Interfaces optimized for universal interconnectivity
Physical & digital interfaces exploiting the characteristics
of π-containers and standardized worldwide
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
π-containers moving and storage means and systems, with innovative technologies and processes exploiting the characteristics of π-containers to enable their fast, cheap, easy and reliable
input, storage, composing, decomposing, monitoring, protection and output
through smart, sustainable and seamless automation and human handling
π-stores
π-movers A fork-less lift exploiting the snapping and interlocking functionalities of the π-container
A π-container equipped with wheels snapped through its standard modular interfaces
A highly flexible plug-and-play π-conveyor exploiting the standard modular dimensions and interfaces of the π-containers
In π-stores, modular π-containers can be stacked as in container port terminals
In π-stores, contemporary racking can be
used, however innovations in storage technologies
exploiting the functional characteristics
of modular π-containers are bound to be exploited
π-conveyors
Evolve from material to π-container transport, handling & storage means and systems
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics centers designed for the Physical Internet
Reference: Meller, R.D., B. Montreuil, C. Thivierge & Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Road-Based Transit Center, in Progress in Material Handling Research: 2012, MHIA, Charlotte, NC, to appear (2012).
Transit Center facilitating the truck-to-truck transshipment
of trailers along relays networks
through the Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Roadway
Multimodal logistics centers designed for the Physical Internet,
enabling seamless, fast, cheap, safe, reliable, distributed, & multimodal
transport and deployment of π-containers
across the Physical Internet
Ocean, sea or river
Physical Internet Road-Rail Hub References • Montreuil, B., R.D. Meller, E. Ballot (2010)
Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research 2010, Edited by K. Gue et al., Material Handling Industry of America, 23 p.
• Ballot É., B. Montreuil & C. Thivierge (2012) Functional Design of Physical Internet Facilities: A Road-Rail Hub, in Progress in Material Handling Research 2012, Edited by B. Montreuil et al., Material Handling Industry of America, 34 p.
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub,, in Progress in Material Handling Research: 2012, MHIA.
Enabling seamless, fast, cheap, safe, reliable, & distributed, multimodal transport and deployment of π-containers across the Physical Internet
Logistics centers designed for the Physical Internet
Road Hub of π-containers truck-to-truck crossdocking along a network of relays through the Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Protocols
Protocols optimized for universal interconnectivity
regulating the multi-layer services of the Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Standard Logistics Service Protocols
Open Logistics Interconnection Model
Standardized multi-layered
service architecture and protocols
Montreuil B., E. Ballot & F. Fontane (2012). An Open Logistics Interconnection Model for the Physical Internet, Proceedings of INCOM 2012 Symposium, Bucharest, Romania, 2012/05/23-25.
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Deploy capability certifications
Multi-level Physical Internet capability certification of containers, handling systems, vehicles,
information systems ports, distribution centers, roads, cities and regions, protocols and processes,
and so on
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Live open monitoring of really achieved performance of all π-certified actors and entities,
on key performance indices on critical facets such as speed, service level, reliability, safety and security
Such live performance tracking is openly available worldwide to enable fact-based decision making
and stimulate continuous improvement
Open information is to be provided in respect of confidentiality of specific transactions
Open Performance Monitoring
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
A Global System
The Physical Internet is seamlessly applicable
everywhere, at any scale
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet: the same conceptual framework at any scale Intra-center Inter-processor Network Intra-Faciilty Inter-Center Network Intra-Site Inter-Facilities Network
Intra-City Inter-Site Network
Intra-Continental Inter-City, Inter-State/Province Network Inter-Continental Worldwide Network
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Aim for webbed reliability and resilience
The overall Physical Internet network of networks should warrant its own reliability
and that of the physical objects flowing through it
Network webbing and the multiplication of nodes should allow the Physical Internet to insure its own robustness
and resilience to unforeseen events
For example, if a node or a part of a network fails, the traffic should be easily reroutable,
as automatically as possible
Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Aim for webbed reliability and resilience
The Physical Internet’s actors, movers, routes, nodes and flowing containers should interact in synergy to guarantee:
– The integrity of physical objects encapsulated in π-containers – The physical and informational integrity
of π-containers, π-movers, π-routes and π-nodes – The informational integrity of π-actors
(humans, software agents) – The robustness of client-focused performance in delivering and
storing π-containers.
Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Enabling a Logistics Web
The purpose of the Physical Internet from a user perspective
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics Web Set of openly interconnected
physical, digital, human, organizational and social
actors and networks aiming to serve
efficiently and sustainably the worldwide logistics needs
of people, organizations, territories and society
From a user perspective, the Physical Internet aims to enable an efficient, sustainable, adaptable and agile Logistics Web
Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer.
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Transporting a trailer from from Quebec to Los Angeles
Québec
Montréal Alexandria Bay, US border
Syracuse Buffalo
Cleveland Columbus
Indianapolis St-Louis
Springfield Tulsa
Oklahoma City Amarillo
Albuquerque Flagstaff
Needles Barstow
Los Angeles
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40
15-10
Distance travelled one-way: 5030 km 5030 km Drivers: 1 17 Trucks: 1 17 Trailer: 1 1 One-way driving time (h): 48 51+ Return driving time (h): 48+ 51+ Total time at transit points (h): 0 9 Total trailer trip time from Quebec to LA (h): 120 60+ Total trailer trip time from LA to Quebec (h): 120+ 60+ Total trailer round trip time (h): 240+ 120+ Average driving time per driver (h): 96+ 6 Average trip time per driver (h): 240+ 6,5
Current P2P
Proposed Distributed
Enabling an open global mobility web From point-to-point or hub-and-spoke transport to distributed multimodal transport
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Enabling an open global mobility web From point-to-point or hub-and-spoke transport to distributed multimodal transport
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Illustrating Current Logistics Systems A small two-retailer two-manufacturer case
Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23
Current Conceptual Networks Current Spatial Flows
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Impact of Exploiting a Mobility Web Here limited to unimodal road transport
Travelled distance: -27% Fuel Consumption: -19%
Average delivery time: +2% Maximum delivery time: -36%
Current Mobility Web
: Plant; :Retail store; :Private distribution center P# S# : Product flow : Road transport
: Plant; : Retail Store; : Open hub P# : Distribution center D#
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Current flows Physical Internet flows Physical Internet traffic
Ballot É., B. Montreuil, R. Glardon (2012), Simulation de l’Internet Physique: controbution à la mesure des enjeux et à sa définition, PREDIT Research Report, France, June 2012, 96 p.
Preliminary results using existing infrastructures, facilities, demand patterns and service levels Economical: From 4% to 26% overall cost saving
Environmental: About 3 times better in terms of greenhouse gas emissions, by combining road-to-rail modal transfer and more efficient road transport
Exploiting a Physical Internet Enabled Bimodal Mobility Web
for the Consumer Goods Industry in France Road and rail transport seamlessly integrated into the PI backbone network
Simulation based on product distribution flow to two top retailers in France, from their 100 top suppliers
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
Most companies design, run and optimize independently
their private distribution networks, investing in DCs
or engaging in long-term leases or contracts
There are 535 000 distribution centers in the U.S.A. only Most of them are used by a single company Most companies use often a single DC and generally less than 20 DCs Imagine the potential if each company could deploy its products through a open web including 535 000 open DCs in the USA
Activate and exploit an Open Global
Distribution Web
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Dynamically Deploying Stock Across the Distribution Web for Efficient, Fast & Agile Customer Response
Current private system Proposed open system
Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23
Client order
Physical flow : Plant : Retail store : Private distribution center : Open distribution center P# S# O#
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Travelled distance: -23% Fuel consumption: -29%
Average delivery time to store: -79% Maximum delivery time to store: -71%
Mobility Web Mobility Web + Distirbution Web
The Added Value of Exploiting a Distribution Web When Already Exploiting a Mobility Web
: Open distribution center : Plant; : Retail Store; : Open hub P#
: Distribution center : Plant; : Retail Store; : Open hub P#
D#
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Impact of Exploiting a Logistics Web Integrating Mobility and Distribution Webs
[Average; Max] Delivery-Time-to-Store
Mobility Web
Mobility Web + Distribution Web
Private Logistics Networks
-82%; -74%
+16%; +15%
-79%; -71%
-19%; -27%
-29%; -23%
-42%; -44%
Fuel; Travel
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Minimize physical moves and storages by digitally transmitting knowledge
and materializing products as locally as possible through the open realization web
Exploiting extensively knowledge-based dematerialization of products and their materialization in physical objects at point of use
As it will gain maturity,
the Physical Internet is expected to be connected to ever more open distributed flexible production centers capable of locally
realizing (make, assemble, finish) for clients a wide variety of products from digitally transmitted specifications,
local physical objects and, if needed, critical physical objects brought in from faraway sources
Open Global Realization Web
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
OM
OM
OM OA
OA
OA
OA OM OM
OM OM OA OA
OA OA
OA
OA
OA OA
OA OA
OA OA
OA OA
OA
OA
OA OA
OA OA
M+A M OA
OA
OA
OA
OA
OA
Client M+A
M
Integrated manufacturer+assembler
Manufacturer OA
OA Currently exploited open assembler
Currently unexploited open assembler
OM
OM
Currently exploited open manufacturer
Currently unexploited open manufacturer
Current realization network centered around an integrated
manufacturing & assembly plant
Alternative realization network exploiting realization web for outsourcing assembly
Alternative realization network exploiting realization web
for outsourcing manufacturing & assembly
Current snapshot
Current snapshot
Dynamically Outsourcinging Product Realization to Certified Open Centers across the Realization Web
to Enable Efficient & Agile Near Point-of-Use Product Realization
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Open Supply Web
Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked operations, Proc. of SOHOMA 2011
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Distribution Web Mobility Web
Realization Web
Tier-0
Tier-1
Tier-2
Each supplier may for example sign a guaranteed X-time accessibility
contract with each client, keeping responsibility for
product delivery, deployment and realization
Client has minimal stock Supplier leverages its clients
for deployment pooling Each client has access to a global pool of π-certified suppliers and vice-versa
Exploiting a Supply Web
Supply Web
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
A Supply Web with Myriads of π-Certified Suppliers, Open & Global Access, Standardized Contracts,
Open Monitoring and Supplier Ratings Multi-tiered, from raw materials to final products
Each exploiting the Mobility, Distribution & Realization webs
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
From retail/rental networks feeding isolated clients
To interconnected users exploiting
an open Service Web
Getting access as needed to product functionality,
from product owners-users and rentals, buying products in
lesser percentage Supported by the other Logistics Web constituents
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
π-Enabling Innovation
π-Enabled Innovation
Physical Internet induced innovation
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Montreuil, B., Meller, R.D., et al., “Designing Facilities for the Physical Internet,” Material Handling Industry of America, Charlotte, NC, 2010-2012.
Flex Conveyor from KIT/Gebhardt (Kai Furmans)
GridFlow from Auburn University (Kevin Gue)
Physical Internet Induced
Technological Innovation
π-Enabling technologies
π-Enabled technologies
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet induced business model innovation
Innovative business models for commercializing
Physical Internet enabled offers by various parties,
addressing stakeholder revenue, contracting, liability & insurance
What are to be the π-enabled equivalents of Amazon, eBay and Google?
How are the manufacturers, distributers, retailers,
transporters, logistics providers and solutions providers going to evolve so as to best exploit the Physical Internet?
π-Enabling business models
π-Enabled business models
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Induced Infrastructural Innovation
The Physical Internet homogeneity in terms of object encapsulation in π-containers
should allow a much better utilization of modes & means,
thus increasing the capacity of infrastructures by the exploitation of standardizations,
rationalizations and automations through currently unreachable innovations
π-Enabling infrastructures
π-Enabled infrastructures
http://www.ilookforwardto.com/2010/12/foodtubes-really-fast-food-delivered-in-a-physical-Internet-of-underground-pipes.html http://www.cargocap.com/content/what-is-cargocap
FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives whose implementation viability can be upgraded through alignment with the Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Realizing the Vision
Evolving towards a worldwide Physical Internet
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet Global systemic sustainable vision
stimulating and aligning action around the world
Individual initiatives by businesses, industries and governments are necessary but are not sufficient
There is a need for a macroscopic, holistic, systemic vision offering
a unifying, challenging and stimulating framework
There is a need for an interlaced set of global and local initiatives
towards this vision, building on the shoulders of current assets and projects,
to help evolve from the current globally inefficient and unsustainable state
to a desired globally efficient and sustainable state
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Implementation Progressive Deployment, Cohabitation and Certification
The widespread development and deployment of the Physical Internet
will not be achieved overnight in a Big-Bang logic but rather in an ongoing logic
of cohabitation and of progressive deployment, propelled by the actors
integrating gradually the Physical Internet ways and finding ever more value in its usage and
exploitation
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
A smooth transition starting with rethinking and retrofitting phases, then moving toward more transformative phases
The Physical Internet can constitute itself progressively through the multi-level certification of: – Protocols – Containers – Handling and storage technologies, distribution centers,
production centers, train stations, ports, multimodal hubs – Information systems (e.g. reservation, smart labels, portals) – Urban zones and regions, inter-country borders
Physical Internet Implementation Progressive Deployment, Cohabitation and Certification
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Conclusion The Physical Internet: An Instrument for Tackling
the Grand Logistics Sustainability Challenge
Exploiting the Internet metaphor for fostering a breakthrough logistics system
A commitment towards open universal interconnection of logistics services and resources
An integrated holistic tackle on making more efficient and sustainable
the way we move, store, realize, supply and use physical objects across the world
A highly scalable co-operative approach
1/3
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet builds on the network effect, getting ever more effective as it gathers more users
It must gather critical mass, first exploiting existing infrastructures and means,
then gradually fostering innovation.
Even though it is to be ultimately global it will have to grow first in fertile domains,
to be collaboratively supported by key leaders from industry, government and academia.
Conclusion The Physical Internet: Not an Utopia, not a Big-Bang
2/3
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Conclusion The International Physical Internet Initiative:
An Open Innovation Endeavor
With this manifesto and its underlying research, a small step has been made towards meeting
the global logistics efficiency and sustainability grand challenge A lot more are needed to really shape this vision
and, much more important, to give it flesh through real initiatives and projects
so as to really influence in a positive way our collective future
This requires a lot of collaboration between academia, industry and governments
across localities, countries and continents Your help is welcome!
3/3
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Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval
Questions and comments are welcome, and especially collaborative project avenues
www.physicalinternetinitiative.org
Twitter: @physicinternet