physical internet manifesto 1.10 2011 06-28 english bm

2011-06-28, 1/51

Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval

Physical Internet Manifesto

Transforming the way physical objects are handled, moved, stored, realized, supplied and used, aiming towards global logisHcs efficiency and sustainability

Professor Benoit Montreuil

Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center

on Enterprise Networks, Logis<cs and Transporta<on Laval University, Québec, Canada

Version 1.10: 2011-‐06-‐28

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Acknowledgements The Physical Internet Manifesto has greatly benefited from

the contribuHon of esteemed colleagues America ü CIRRELT Research Center:

•  Teodor Crainic -‐ UQAM •  Michel Gendreau -‐ Université de Montréal •  Olivier Labarthe, Mustapha Lounès & Jacques Renaud -‐ Université Laval

ü CICMHE, College-‐Industry Council for Material Handling EducaHon: •  Russ Meller – University of Arkansas •  Kevin Gue & Jeff Smith – Auburn University •  Kimberley Ellis – Virginia Tech •  Leon McGinnis – Georgia Tech •  Mike Ogle – MHIA

Europe •  Éric Ballot, Frédéric Fontane – Mines ParisTech •  Rémy Glardon – EPFL •  Rene De Koster – Erasmus University •  Detlef Spee – Fraunhofer Ins<tute for Material Flow and Logis<c

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Macroscopic PosiHoning CLAIM

The way physical objects are moved, handled, stored, realized, supplied and used

throughout the world is neither efficient nor sustainable

economically, environmentally and socially

GOAL Enabling the global efficiency and sustainability

of physical object movement, handling, storage, realiza<on, supply & usage

VISION Evolving towards a worldwide Physical Internet

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Inspiration for the Physical Internet Vision

•  A great front page one-liner –  Interesting yet mainstream supply chain articles –  Nothing like what I perceived

a Physical Internet should be •  I rapidly got passionate about the question

What should or could be a full blown Physical Internet?

–  What would be its key features? –  What capabilities would it offer that are not

achievable today? •  Another question surfaced rapidly:

Why would we need a Physical Internet?

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Logistics inefficiency and unsustainability claim

The way physical objects are moved, handled, stored, realized, supplied and used throughout the world is inefficient and unsustainable

economically, environmentally and socially

Why Do we need a Physical Internet ?

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ECONOMIC LogisHcs: 10-‐20% burden on GDP of most countries

The worldwide logisHcs cost grows faster than world trade

ENVIRONMENT One of the heaviest polluters, energy consumer and greenhouse gas generators Growing negaHve contribuHon while naHons’ goals aims for heavy reducHons

SOCIAL Lack of fast, reliable and affordable accessibility and mobility

of physical objects for the vast majority of the world’s populaHon Too ocen precarious logisHc work condiHons

LogisHcs inefficiency and unsustainability

Why do we need to change ?

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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 or a joke 10.  Getting products in and out of cities is a nightmare 11.  Networks 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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Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard

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

2.  Empty travel is the norm rather than the exception –  Vehicles and containers often return empty,

or travel extra routes to find return shipments –  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

–  Their family and social life is precarious, as well as their personal health

–  In general, logistic operators and material handling personnel have similar precarious positions

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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.  Production and storage facilities are poorly or badly used

–  Most businesses invest in storage and/or production facilities which are lowly used most of the times, or yet badly used, dealing with products which would better be dealt elsewhere, forcing a lot of unnecessary travel


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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

7.  Products do not reach those who need them the most

–  This is specially true in less developed countries and disaster-crisis zones

RusHng new cars in disused airfield


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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 a dream or a joke

–  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


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10. Getting products in and out of cities is a nightmare

–  Most cities are not designed and equipped for easing freight transportation, handling and storage, making the feeding of businesses and users in cities a nightmare

11. Networks 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


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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


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Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets

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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 and pollution

Economic goal Sustainably reduce by an order of magnitude the global economic burden of logistics while unlocking huge gains in business productivity

Note: Logistics is hereafter used in its broad sense notably including transportation, handling, storage, supply, realization (production, assembly, finishing, personalizing, recycling) and usage

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The Digital Internet ExploiHng the InformaHon Highway Metaphor

When looking for a way to conceptualize how it should transform itself,

it relied on a physical transport and logisHcs metaphor: Building the informaHon highway

Decades ago the informaHon & communicaHons technology community was stuck in a huge inefficient and unsustainable tangle

due to millions of unconnected computers

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They have achieved their goal and went farther, reshaping completely the way

digital compuHng and communicaHon are now performed They have invented the Internet, leading the way to the World-‐Wide Web

They have enabled the building of an open distributed networked infrastructure

that is currently revoluHonizing so many facets of our societal and economic reality

The Digital Internet Expanding Beyond the InformaHon Highway Metaphor

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The Essence of the Digital Internet

The Digital Internet is about the interconnecHon between networks

in a way transparent for the user, so allowing the transmission of

formafed data packets in a standard way

permigng them to transit through heterogeneous equipment

respecHng the TCP/IP protocol

References: Kurose J., Ross K. and Wesley A. “Computer Networking: A Top Down Approach Featuring the Internet”, 3rd edi<on., July 2004. Parziale L., Bri] D.T., Davis C., Forrester J., Liu W., Ma]hews C. and Rosselot N. “TCP-‐IP Tutorial and Technical Overview”, 2006. h]p://www.redbooks.ibm.com/redbooks/pdfs/gg243376.pdf “Interconnec<on of access networks, MANs and WANs “, h]p://images.google.ca/imgres?imgurl=h]p://www.exfo.com/

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The Physical Internet IniHaHve Using the Digital Internet as a Metaphor for the Physical World

Even though there are fundamental differences between the physical world and the informaHon world,

the Physical Internet iniHaHve aims to exploit the Internet metaphor

so as to propose a vision for a sustainable and progressively deployable

breakthrough soluHon to global problems associated with the way

we move, handle, store, realize, supply and use physical objects all around the world


How do we propose to meet the Logistics Grand Challenge ?

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Exposing Key Features of the Physical Internet Vision

Evolving towards a worldwide Physical Internet

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What is the Physical Internet?

An open global logistics system leveraging mobility & supply network

interconnectivity enabled by a standard set of

collaborative protocols, modular containers and smart interfaces

for increased efficiency and sustainability

Current version of a working definition for the Physical Internet, jointly developed by Benoit Montreuil, Eric Ballot and Russ Meller

Physical Internet: PI, π

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Positioning the Physical Internet

World Wide Web (WWW) Digital Internet

Digital informaHon Packets

Open Supply Web Physical Internet Smart Physical Packets

ConnecHng Physical objects through WWW Internet of Things Smart Networked Objects

Smart Grid Energy Internet

Energy Packets

Original schema<cs from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinterne<ni<a<ve.org

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Key Features of the Physical Internet Vision

1.   Aim toward universal interconnecHvity 2.   Aim for a unified mulH-‐scale conceptual framework 3.   Aim for webbed reliability and resilience of networks 4.   Encapsulate merchandises in world-‐standard green modular containers 5.   Evolve from material to container handling & storage systems 6.   Exploit smart networked containers embedding smart objects 7.   AcHvate and exploit an open global mobility web 8.   AcHvate and exploit an open global supply web 9.   Deploy capability cerHficaHons and open performance monitoring 10.   Design products figng containers with minimal space waste 11.   Minimize physical moves and storages by digitally transmigng knowledge

and materializing products as locally as possible 12.   SHmulate business model innovaHon 13.   Enable open infrastructural innovaHon


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1. Aim toward universal interconnecHvity

High-‐performance logisHc centers, movers and systems, making it fast, cheap, easy and reliable

to interconnect physical objects through modes and routes,

with an overarching aim toward universal interconnecHvity

What are the design aims of the Physical Internet?

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2. Aim for a unified mulH-‐scale conceptual framework

Intra-‐Center Inter-‐Processor Network


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Intra-‐Facility Inter-‐Center Network



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Intra-‐Site Inter-‐Facility Network



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π-‐transits & π-‐hubs Intra-‐City Inter-‐Site Network

Toward π-enabled!sustainable!city logistics!



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Québec, Canada

North eastern states, U.S.A.

Intra-‐State Inter-‐City Network

π-‐transits & π-‐hubs



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3. 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 mulHplicaHon 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 automaHcally as possible

Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logis<cs New Direc<ons in Supply Chain Management, 2007


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3. 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 informaHonal integrity of π-‐containers, π-‐movers, π-‐routes and π-‐nodes

–  The informaHonal integrity of π-‐actors (humans, socware 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 Logis<cs New Direc<ons in Supply Chain Management, 2007


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4. Encapsulate merchandises in world-‐standard green modular containers

•  Merchandise is uniHzed as content of a π-‐container and is not dealt with explicitly by the Physical Internet

•  Modular dimensions from cargo container sizes down to Hny sizes •  Conceived to be easily flowed through various

transport, handling and storage modes and means •  Easy to handle, store, transport, interlock, load, unload, construct

and dismantle, compose and decompose •  Environment friendly materials with minimal off-‐service footprint •  Smart tag enabled, with sensors if necessary, to allow their proper

idenHficaHon, rouHng and maintaining •  Various usage-‐adapted structural grades •  CondiHoning capabiliHes (e.g. temperature) as necessary •  Sealable for security purposes

What are the enabling constituents of the Physical Internet?

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π-Containers modularized and standardized worldwide in terms of dimensions, functions and fixtures

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Easy to load, unload, handle, store, transport, seal, snap, interlock, construct, dismantle, panel, compose and decompose

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.


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Key features of π-containers

36

Snappable

Reusable Recyclable

Easy-‐to-‐dismantle

Traceable, Routable

Securable Modular

Factory

Clients (retail shelves)

Original drawing by Eric Ballot, Mines ParisTech,2011-‐06-‐27, adapted by Benoit Montreuil


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5. Evolve from material to π-‐container transport, handling & storage means and systems

π-container 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



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F  π-‐container handling and storage systems: –  Enable fast and reliable input and output performance –  Have seamless interfacing with vehicles and systems

moving products in and out, as well as client socware systems for tracking and interfacing with the containers

–  Monitor and protect the integrity of π-‐containers –  Secure the containers to the desired level –  Provide an open live documentaHon of their specified performance and

capabiliHes and of their demonstrated performance and capabiliHes, updated through ongoing operaHons

F  This applies in currently-labeled distribution centers, crossdocking centers, train stations, multimodal hubs, seaports, airports, and so on

5. Evolve from material to π-‐container transport, handling & storage means and systems


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6. Exploit smart networked containers embedding smart objects

ExploiHng as best as possible the capabiliHes of smart π-‐containers

connected to the Digital Internet and the World Wide Web, and of their embedded smart objects,

for improving performance as perceived by the clients and overall performance of the Physical Internet


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Physical Internet and the Internet of Things

Image: http://www.globetracker.biz/GlobeTracker/News.asp

F  The Internet of Things is about enabling ubiquitous connecHon with physical objects equipped with smart connecHve technology (RFID, GPS, Internet, etc.), making the objects ever smarter and enabling distributed self-‐control of objects through networks

F  The Physical Internet is to exploit as best as possible the Internet of Things to enable the ubiquitous connecHvity of its π-‐containers and π-‐systems

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Multi-segment travel 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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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

7. Enabling an open global mobility web From point-to-point hub-and-spoke transport to distributed multimodal transport

What are the targets of the Physical Internet?

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Transporta<on between nodes + Handling within nodes : About Moving Objects An interconnected set of open unimodal & mul3modal hubs, transits & ports

42

7. Enabling an open global mobility web


MariHme route Highway Road

Railroad Open mulHmodal π-‐hub & π-‐transit zone Open unimodal π-‐hub & π-‐transit zone

Open π-‐Port Air route

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π-‐Transit sites allowing distributed

mulH-‐segment transport through the Physical Internet

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Road-‐Water π-‐Hub designed for enabling distributed

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8. AcHvate and exploit an Open Global Supply Web An open supply web composed of an open distribuHon web

coupled to an open realizaHon web enabling producers, distributors and retailers

to dynamically deploy their π-‐container-‐embedded products in mulHple geographically dispersed centers,

realizing and deploying them for fast, efficient and reliable response delivery

to distributed stochasHc demand for their products, services and/or soluHons

References: Montreuil B., Labarthe, O., Hakimi, D., Larcher, A., & Audet, M. Supply Web Mapper. Proceedings of Industrial Engineering and Systems Management, Conference, IESM, , Conference Montréal, Canada, May 13-‐15, 2009 Hakimi D., B. Montreuil, O. Labarthe, “Supply Web: Concept and Technology”, 7th Annual Interna<onal Symposium on Supply Chain Management, Conference Toronto, Canada, October 28-‐30, 2009Montreuil, B., Hakimi, D. , B. Montreuil, O. Labarthe, ”Supply Web Agent-‐Based Simula<on Plakorm” Proceedings of the 3rd Interna<onal Conference on Informa<on Systems, Logis<cs and Supply Chain Crea<ng value through green supply chains, ILS 2010 – Casablanca (Morocco), April 14-‐16<.

Enabling Physical Equivalents of!Intranets, Virtual Private Networks,!Cloud Computing and Cloud Storage!


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Open DistribuHon Web An interconnected set of open warehouses and distribu3on centers

46


Port MariHme route

Highway

Road Railroad

Open π-‐Port Open π-‐store & π-‐distributor zone

Air route

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Reference: 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 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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Open distribution web with a high density of open DCs available to many other clients

Factories: 4 Firm dedicated DCs: 0 Group dedicated DCs: 0 Open DCs used: 60+ Mean lead time: 0 Max lead time: 0

Factories: 4 Firm dedicated DCs: 0 Group dedicated DCs: 3 Mean lead time: 1,48 Max lead time: 3

Factories: 4 Firm dedicated DCs: 0 Group dedicated DCs: 16 Mean lead time: 1,08 Max lead time: 3

Factories: 4 Firm dedicated DCs:

16 Mean lead time: 1,75 Max lead time: 3

Factory: 1 Firm dedicated DCs: 4 Mean lead time: 1,73 Max lead time: 3




Shared distribution web with independently implemented DCs

Shared distribution web with jointly implemented DCs

Independent private distribution networks

* Lead times induced by transport from DC to client region

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Open RealizaHon Web An interconnected set of open produc3on, personaliza3on & retrofit centers,

indeed of open factories of any type

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Port MariHme route

Highway

Road Railroad

Open π-‐factory zone

Air route


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Open Supply Web The union of open distribu3on web & open realiza3on web

50

Port MariHme route

Highway

Road Railroad

Open π-‐Port Open π-‐store & π-‐distributor zone Open π-‐factory zone Air route


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Open Supply Web What are the targets of the Physical Internet?

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Open supply web with a high density of open DCs available to many other clients and shared factories among the four firms

Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 0 Open DCs used: 60+ Mean DC-to-region lead time: 0 Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 2 Max factory-to-DC lead time: 4

Open supply web with a high density of open distribution and production centers available to many other clients

Firm dedicated factories: 0 Group shared factories: 0 Open factories used: 64+ Firm dedicated DCs: 0 Group dedicated DCs: 0 Open DCs used: 64+ Mean DC-to-region lead time: 0 Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 0 Max factory-to-DC lead time: 0

* Inter-‐region transport induced lead 3mes

Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 16 Mean DC-to-region lead time: 1,08 Max DC-to-region lead time: 3 Mean factory-to-DC lead time: 1,11 Max factory-to-DC lead time: 3

Shared supply web with shared factories and independently implemented shared DCs

Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 3 Mean DC-to-region lead time: 1,48 Max DC-to-region lead time: 3 Mean factory-to-DC lead time: 0,83 Max factory-to-DC lead time: 3

Shared supply web with shared factories and jointly implemented shared DCs

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Open LogisHcs Web The union of Open Mobility Web and Open Supply Web

53

Port

MariHme route Highway

Road Railroad

Open π-‐Port Open π-‐store & π-‐distributor zone Open π-‐factory zone

Open mulHmodal π-‐hub & π-‐transit zone

Open unimodal π-‐hub & π-‐transit zone Air route


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Open RealizaHon

web

Open Mobility web

Open DistribuHon

web

Open Mobility Web

Open Supply Web

Open Produc3on, Personaliza3on & Retrofit Centers

Open Distribu3on Centers

& Warehouses

Open Unimodal & Mul3modal

Hubs & Transits

Open LogisHcs Web

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Live open monitoring of really achieved performance of all PI 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

9. Deploy capability cerHficaHons and open performance monitoring

How can stakeholders help the Physical Internet thrive?

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9. Deploy capability cerHficaHons and open performance monitoring

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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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 funcHonal density

while containerized

Reference: Seliger G., “Sustainability in Manufacturing -‐ Recovery of Resources in Product and Material Cycles” (Ed. by Günther Seliger, Sringer Verlag, 2007

10. Design products figng containers with minimal space waste


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F  Product dimensions adapted to the standard container dimensions –  So that the packaged product fits in a small footprint container

F  In order to avoid moving and storing air, products should be designed and engineered so as to have maximal volumetric density while being in Physical Internet containers, extendable to their usage dimensions when necessary

F  Products should be designed so that only key components and modules have to travel extensively through the Physical Internet: –  Easy to be completed near point of use using locally available objects

F  Products having to move through the Physical Internet should be as funcHonally dense as possible when in the containers –  FuncHonal density of an object can be expressed as the raHo of its useful

funcHonality over the product of its weight and volume

10. Design products figng containers with minimal space waste


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11. Minimize physical moves and storages by digitally transmigng knowledge

and materializing products as locally as possible through the open realizaHon web

Exploiting extensively the 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


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12. Stimulate business model innovation

Innovative business models for commercializing

Physical Internet enabled offers by various parties, including revenue models for the various actors

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?

How are business and the Physical Internet synergizing each other?

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RemuneraHng the Players F In the Digital Internet, the transmission of informaHon

is remunerated mostly through bundled flat fees due to the quasi nil marginal costs

F In the Physical Internet, the transmission of a container generates non negligible costs for each of the operators having taken charge of some part of the transmission

F It is thus necessary to define business models for commercializing offers as well as operator revenue models –  There currently exist examples paving the way to realize this, notably in the

airline industry

12. Stimulate business model innovation

How are business and the Physical Internet synergizing each other?

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Systemic coherence and means interoperability must enable the transparent usage of

heavy handling, storage and transport means currently exisHng or to come in the future,

that are currently so hard to use, reducing their potenHal posiHve environmental impact

The Physical Internet homogeneity in terms of container modules encapsulaHng objects

should allow a much befer uHlizaHon of means, thus increasing the capacity of infrastructures

by the exploitaHon of standardizaHons, raHonalizaHons and automaHons

through currently unreachable innovaHons

13. Enable Open Infrastructural Innovation

How are infrastructures and the Physical Internet synergizing each other?

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FoodTubes and CargoCap: Examples of currently contemplated infrastructural iniHaHves in line with the Physical Internet

h]p://www.cargocap.com/content/what-‐is-‐cargocap

h]p://www.ilookforwardto.com/2010/12/foodtubes-‐really-‐fast-‐food-‐delivered-‐in-‐a-‐physical-‐Internet-‐of-‐underground-‐pipes.html h]p://www.cargocap.com/content/what-‐is-‐cargocap

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Key Features of the Physical Internet Vision

1.   Aim toward universal interconnecHvity 2.   Aim for a unified mulH-‐scale conceptual framework 3.   Aim for webbed reliability and resilience of networks 4.   Encapsulate merchandises in world-‐standard green modular containers 5.   Evolve from material to container handling & storage systems 6.   Exploit smart networked containers embedding smart objects 7.   AcHvate and exploit an open global mobility web 8.   AcHvate and exploit an open global supply web 9.   Deploy capability cerHficaHons and open performance monitoring 10.   Design products figng containers with minimal space waste 11.   Minimize physical moves and storages by digitally transmigng knowledge

and materializing products as locally as possible 12.   SHmulate business model innovaHon 13.   Enable open infrastructural innovaHon


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Realizing the Vision

Evolving towards a worldwide Physical Internet

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The Physical Internet Global systemic sustainable vision

sHmulaHng and aligning acHon around the world

Individual iniHaHves by businesses, industries and governments are necessary but are not sufficient

There is a need for a macroscopic, holisHc, systemic vision offering

a unifying, challenging and sHmulaHng framework

There is a need for an interlaced set of global and local iniHaHves

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 ImplementaHon Progressive Deployment, CohabitaHon and CerHficaHon

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 cohabitaHon and of progressive deployment, propelled by the actors

integraHng gradually the Physical Internet ways and finding ever more value in its usage and exploitaHon

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F A smooth transiHon starHng with rethinking and retrofigng phases, then moving toward more transformaHve phases

F The Physical Internet can consHtute itself progressively through the mulH-‐level cerHficaHon of: –  Protocols –  Containers – Handling and storage technologies, distribuHon centers, producHon centers, train staHons, ports, mulHmodal hubs

–  InformaHon systems (e.g. reservaHon, smart labels, portals) – Urban zones and regions, inter-‐country borders

Physical Internet ImplementaHon Progressive Deployment, CohabitaHon and CerHficaHon

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Conclusion (1/2)

This manifesto has outlined a bold paradigm breaking vision for the future of

how we handle, store, transport, realize, supply and use physical objects across the world It proposes to exploit the Internet,

which has revoluHonized the digital world, as an underlying metaphor for steering innovaHon

in the physical sphere The outlined Physical Internet does not aim

to copy the Digital Internet, but to inspire the creaHon of

a bold systemic wide encompassing vision capable of providing real efficient and sustainable soluHons

to the problems created by our past and current ways and by our vision toward which we should aim

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With this manifesto and its underlying research, a small step has been made

A lot more are needed to really shape this vision

and, much more important, to give it flesh through real iniHaHves and projects

so as to really influence in a posiHve way our collecHve future

This requires a lot of collaboraHon between academia, industry and governments across localiHes, countries and conHnents

Your help is welcome

Conclusion (2/2)

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Questions and comments are welcome

Questions et commentaires sont les bienvenus

Fragen und Kommentare sind willkommen

Las preguntas y los comentarios son bienvenidos

[email protected]

www.physicalinterneHniHaHve.org

physical internet manifesto 1.10 2011 06-28 english bm

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