physique, vers une logistique hyperconnectée qui … conference 2015/1-panel1-sept...disruptive...

1Professor Benoit Montreuil, 2015/09/29, 1/28

AAPC-ACPA 2015Montréal

L’Internet Physique,Vers une logistique hyperconnectéequi amène à repenserle développement durable des ports

The Physical Internet:Towards hyperconnected logisticsEnabling to rethinkthe sustainable Development of Ports

AACP-ACPA 2015

Montréal, Québec, Canada

2015/09/29

Prof. Benoit MontreuilCoca-Cola Chair in Material Handling & DistributionSchool of Industrial & Systems EngineeringDirector, Physical Internet Center



Dealing with physical objects

Deliver

Handle

Transport

Store

Distribute

Make/Assemble/Pack

Personalize

Recycle

Buy/Sell

Provide

Access

Exploit

Function

Beings &

Things

Conceive

Engineer

Develop



Ever more educated generationsExpanding and aging populations

Massive urbanizationGrowing middle class in developing countries

Ubiquitous techno innovationDigital mobilityExpanding e-commerceSocial networking

Emerging sustainability consciousness

Emerging embracing ofsharing & circular

economy principlesFast Evolving

Smarter Hyperconnected

Technology

Pressured Ecology

Need for Sustainability

Fast Evolving

Smarter

Hyperconnected

Humanity

Why change is needed in how we deal with physical objects



Supply Chains

Struggling to Keep Up

Fast Evolving

Smarter

Hyperconnected

Humanity

Business

Pressured to Innovate

Fast Evolving


Technology

Pressured Ecology


Demanding client expectationsShrinking pricesEver shorter & precise delivery timesPersonalized products and servicesOmni-channel shopping and deliveryContinuous flow of innovations

Integrating the latestlandscape-changing technologiesInternet-of-Things3D printingAutonomous trucksDrones, Platooning

Concurrently achievingthe efficiency, security,

adaptability and resiliencenecessary for prosperity

Why change is needed in how we deal with physical objects



Supply Chains

Struggling to Keep Up

Logistics System

Stretched to Limits

Transportation Infrastructure

Stretched to Limits

Fast Evolving

Smarter

Hyperconnected

Humanity

Fast Evolving


Technology

Pressured Ecology


Business

Pressured to Innovate

Socialinefficiency & unsustainability

Lack of fast, reliable & affordableaccessibility and mobilityof physical objectsfor the vast majorityof the world’spopulation

Too oftenprecariouslogistic workconditions

Economicinefficiency &unsustainability5-20% burden on GDPof most countries

Worldwide logistics& transportation costsgrow faster than world trade

Need for excessive infrastructure expansion

Environmentalinefficiency & unsustainability

One of the heaviestgreenhouse gas

generators,energy consumers,

polluters& materials wasters

Growingnegative

contributionwhile

nations’ goalsaim for

heavy reductions

CO2 emissions

t.km. travelled

CO2ECtarget2050



Grand Challenge

To improve by an order of magnitude

the economical, environmental and societalefficiency and sustainability

of the way physical objects aremoved, deployed, realized, supplied, designed and used

Asset utilization improvement

Induced cost reduction

Price reduction

Business opportunity

Economic development opportunity

Reduction of

Greenhouse gas emissions

Energy consumption

Waste

Pollution

Traffic & Congestion

Improved

Quality of life

Goods accessibility

Mobility

Fast/precise delivery

Novel service capabilities



Sea shippingevolution

over 50 years

Handling cost / 14 Maritime trip cost / 4.5 Trucking cost / 1.5

Disruptive positive change has been proven possibleLessons from maritime container logistics

Source: Ballot, Montreuil & Meller, The Physical Internet:The network of logistics networks, 2014

Without containers With containers



The Physical Internet: A Solution to the Grand ChallengeUsing the Digital Internet as a Metaphor for the Physical World

Montreuil B. (2011). Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, Vol. 3, No. 2-3, p. 71-87

Science Magazine6 June 2014

Rethinkingthe Global

Supply Chain

Inventor

Prof. Benoit Montreuil



The Physical Internet

Hyperconnected global logistics system

enabling seamless open asset sharing and flow consolidation

Hyperconnected system definition by B. Montreuil, July 2015

PI definition adapted by Montreuil B, R.D. Meller & E. Ballot, June 2015

from 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.

A system is said to be hyperconnectedwhen its components (agents, things, etc.)are intensely interconnected on multiple

layers, ultimately anytime, anywhere

Interconnectivity layersnotably include

digital, physical, operational, business, legal and interpersonal

Image source: clyderathbone.com



Open market for goods transportation, storage, realization, supply and usage

Encapsulates goods in “black box” standard modular containers for transport, handling and packaging purposes

New generation of handling, transportation and storage technologies and facilities for seamless, fast flow & exchange of loads

Standard protocols and interfacesfor seamless open asset sharing& consolidation across interconnected networks and modes

Critical mass: vast community of users

Service provider certificationand ratings-by-usersto drive performance

Continuous tracking & monitoring

Smart, fact-based, proactive, distributed routing, deployment, production decisions

Physical Internet Enablers

Seamless modular container consolidation in the Physical Internet

B. Montreuil & C. Thivierge, 2011

Benoit Montreuil (Georgia Tech) and Russ Meller (Fortna)



Evolution of Logistics, Transportation, Production & Supply Chains

Atomistic

Integrated

Hyperconnected

Timeline

Physical Internet, Logistics Web

Open hubs, DCs & fabs, Co-operation Platforms

Efficiency, Sustainability, Resilience, Agility

EDI, Just-In-Time, ECR, Lean

Dedicated & Centralized DCs & Factories

End-to-End Supply Chain

Fragmentation, Solo Operations

Long leadtime, big lots, large inventory

CollaborativeHorizontal & Vertical

Collaboration with SC partners

Economies of Scale/Scope, Green

Asset intensive

Bounded

Long to Deal

Tough to Adapt

Hard to Scale

Original concept by Benoit Montreuil & Jean-Claude Dufour



Hyperconnected TransportationMultimodal relay-mode transportation through a web of open hubs

Results from a simulation experiment with top retailersCarrefour and Casino in France and their 100 top suppliers

Current flows Hyperconnected flows Current: Trucks Hyperconnected: Trucks & Rail

Ballot É., B. Montreuil, R. Meller (2015),

The Physical Internet: The Network of Logistics Networks, Documentation Française.

Economical: Up to 32% overall cost saving

Environmental: About 60% reduction of greenhouse gas emissions



Hyperconnecting Distribution

535 000 warehouses & distribution centers in the U.S.A. only

Current Distribution Hyperconnected Distribution

Enabling each companyto dynamically deployits products through

an open worldwide distribution web, including 535 000 open DCs in the USA

Disconnected company-specific networks

Most DCs are used by a single company

Most companies use often a single DCand generally less than 20 DCs

Figures jointly developed by B. Montreuil & H. Sohrabi



Encapsulating goods in -containers

ID#

•

•

•

•

•

•

•

• Panel&(pub&+&info)&

•

•

•

•

•

•

•

• Reasoning&capabili4es&

Protect the encapsulated objects

Transport ContainersModular fit

in π-certified vehicles

12; 6; 4,8; 3,6; 2,4; 1,2m

Handling Containersπ-box: Modular fit in transport containers

1,2m[

0,8m[

0,6m[

0,4m[

0,3m[

0,2m[

0,1m[

Packaging Containersπ-Packs: Modular fit

in handling containers

Montreuil B., E. Ballot, W. Tremblay (2015). Modular Design of Physical Internet Transport, Handling and Packaging Containers, Progress in Material Handling Research Vol. 13, Ed. J. Smith et al., MHI, Charlotte, NC, USA, to appear.



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.

-container transport, handling & storage technologies

-stores-movers -conveyors

Fast, cheap, easy, safe and reliable flow

through smart, seamless and sustainable

automation, robotics and human handling

Rethinking the ubiquitous technologiessuch as trucks, ships, railcars, lift trucks, conveyors, sorters, and storage racks

to take advantage of the standard modular smart -container

-transporters



Hyperconnected logistics facilities

New generation of logistics facilities enabling

seamless, fast, cheap, safe, reliable, distributed, multimodal

transport and deployment of -containers across the Physical Internet

Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2014). Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub, p. 379-431;Ballot, E., B. Montreuil & C. Thivierge (2014). Functional Design of Physical Internet Facilities: A Road-Rail Hub, p. 28-61;In Progress in Material Handling Research Vol. 12, Ed. B. Montreuil, A. Carrano, K. Gue, R. de Koster, M. Ogle & J. Smith, MHI, Charlotte, NC, USA.

Water

Road



Universal Logistics Service Protocols

L1PhysicalLayer

L2LinkLayer

L3NetworkLayer

L4Rou ngLayer

L5ShippingLayer

L6Encapsula onLayer

L7Logis csWebLayer

PurchaseorderwithdeliveryrequirementsSupplier

Ordermonitoring

Shipment&π-containerassignment&monitoring

L7Logis csWebLayer

…

Physicalcharacteris csofproducts:Weight,Volume,Temperature,Hazard-Level

Geo-characteris csoforder:Singlevs.mul pledes na ons,

Singlevs.mul plesourcingloca ons

Time-characteris csoforder:Delivery mespecifica ons

Encapsula oncharacteris cs:Numberandtypesofπ-containersAssignmentofproductstoπ-containers

Client

Shipmentscharacteris cs:NumberofshipmentsAssignmentofπ-containerstoshipmentsLogis csserviceclassforeachshipment

Rou ngcharacteris cs:Targetrouteforeachshipment,definedassequencesofsegments/nodes,with mingspecifica ons

Transport/handlingcharacteris cs:Assignmentofπ-containerstoπ-meansAssignmentofπ-meanstoπ-links

Movecharacteris cs:Genera onofloading,moving,sor ng,storing,retrievingandunloadingorders

π-containerandπ-meansstate/defectmonitoring&moveordertracking

Routeassignment&monitoringforeachshipment&π-container

NetworkstatemonitoringRoutesegment

assignment&monitoring

Valida on&monitoringofeachflowlinkstate&

routesegmentmoveorders

Datatransmi edtothelowerlayer

Datatransmi edtotheupperlayer

Standardized

multi-layered

service

architecture

and protocols

Open Logistics Interconnection (OLI) Model

Exploiting Internet-of-Thingsfor monitoring, tracking, communicating

with -containers and means,And to enable autonomous decision making

Supported by smart hyperconnected analytics and optimization

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.



Exploiting

most zone-appropriate

-container transport,

handling & storage

modes, vehicles,

means & facilities

Exploiting existing

infrastructures

(subway, tramway)

and gradually

developing innovative

hyperconnected

infrastructures

Building on synergies

between freight

logistics

and people mobility

Aiming for gains in

economic,

environmental and

societal efficiency and

sustainability

Hyperconnecting City Logistics

Crainic T. & B. Montreuil, 2015, Physical Internet Enabled Hyperconnected City Logistics, Proc. International City Logistics Conf., Tenerife, Spain

Suburbs

Midtown

CityCenter

Ship

Long-distance

vehicle

Train

Urban transporter,

personal vehicle

Plane, airship

Bicycle, scooter, drone

Urban truck

Urban hub

Tramway, light rail,

metrobus, barge

Open DC



Hyperconnecting City & Port Logistics

How do we seamlessly move

containers in and out of ports,

across the city, exploiting

multimodal capabilities ?

How do we build

synergies

between city logistics

and port-centric logistics?

Source: Port de Montréal et Google Maps



Sources: baltictransportjournal.com; emersonclimate.com; kn-portal.com

Hyperconnected Container Deployment

In an hyperconnected paradigm,port terminals with large inventories

of containers are by defaultassociated with a lack of fast fluidity

Get the containers out of the port fast and efficiently

Get the containers in the portjust-in-time efficiently



Advance Auto Parts Thomson 380,000 35,303

Best Buy Dublin 748,000 69,491

Dollar Tree Savannah 800,000 74,322

Hugo Boss Midway 165,000 15,339

IKEA Savannah 1,700,000 157,935

Lowe's Valdosta 750,000 69,977

Pier 1 Imports Savannah 783,000 72,743

The Home Depot Savannah 1,400,000 130,064

Wal-Mart Savannah 1,300,000 120,774

Total

15,031,000 1,396,735

Map of Georgia Importers: 20+ Savannah-Area Import DCs, 200+ within 5 hours.

Company City Square Feet Square Meters

Bass Pro Shops Macon 600,000 55,742

Citi Trends Fashion Savannah 155,000 14,400

Fred's Dublin 600,000 55,742

Icon H & F Savannah 600,000 55,742

Kmart-Sears Savannah 200,000 18,581

Oneida Pembroke 500,000 46,452

Target Savannah 2,100,000 195,096

Tire Rack Midway 250,000 23,226

Wal-Mart Statesboro 2,000,000 185,806

Savannah

Port

Hyperconnecting Port and Hinterland LogisticsBeyond stating radii of reachability within X hours:

Implementing an hyperconnected logistics system easing seamless flow

of goods/containers from/to the port to/from network of DCs and Factories

Georgia Port Authority

Ports in Savannah and Brunswick

Inner port in Southern Georgia

Forthcoming inner port in NW Georgia



Hyperconnecting Maritime Logistics and CorridorsPorts as gateway nodes enabling synchromodal flows through corridor networks



Source: karbelmultimedia.com, bizjournal.com,

vladiyaampliaciondelcanal.blogspot.com

Ports: Hyperconnecting Global Logistics Enablers

Expanding throughput capability

for flow between Asia

and Eastern Americas

New generation of huge

post-panamax ships:

Requiring huge space-time

consolidation of containers

Hyperconnecting

the canal region

to enable multimodal flows

serving inner Americas



-Enabling Innovation

-Enabled Innovation

Physical Internet Induced Innovation

Technological Innovation

Infrastructural Innovation

Business Model Innovation

Cultural Innovation

Legislative Innovation

Process Innovation



Paradigm-breaking Physical Internet vision getting momentum

European Commissiondeclares Logistics to be

an European Technology Platform

ALICE: Alliance for LogisticsInnovation

through Collaboration in Europe

The Physical Internetis the 2030-2050 strategiclogistics vision for Europe



Pillars of Economy and Societyin the Emerging Hyperconnected Era

Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto,www.physicalinterneinitiative.orgRead also: Rifkin J. (2014), Zero Marginal Cost Society.

World Wide Web (WWW)

Digital InternetDigital Information Packets

Logistics Web

Physical InternetSmart Physical Packets

Connecting Physical Objects through WWW

Internet of ThingsSmart Networked Objects

Smart Grid

Energy

Internet

Energy

Packets



Conclusion

Tackling the Grand Challenge To Efficiently and Sustainably Move, Store, Realize, Supply & Use Physical Objects

The proposed Physical Internet is a highly scalable co-operative approach based on open universal interconnection

Not a Utopia, not a Big-BangGet critical mass by exploiting existing infrastructures and means,then get momentum through large scale adoption & innovation

An Open Research and Innovation EndeavourWorldwide multi-stakeholder academia-industry-government collaboration

to making interconnected logistics & supply chain happen

Wealth of Opportunitiesfor Hyperconnected Businesses, Industries and Regions

Paradigm shifting avenues in logistics, supply chain,production, transportation, warehousing, material handling,

business design, strategy & economic development



Questions, comments and ideasare most welcome

Prof. Benoit MontreuilCoca-Cola Chair in Material Handling & DistributionDirector, Physical Internet CenterGeorgia Institute of [email protected]+1 404 894 9139

Physical Internet Center, Georgia Tech

www.physicalinternetinitiative.org

physique, vers une logistique hyperconnectée qui … conference 2015/1-panel1-sept...disruptive...

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