physical internet manifesto version 1.11 2012 11-07 bm

Québec, 2012-11-07, 1/75

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

Version 1.11: 2012-‐11-‐07

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Acknowledgements The Physical Internet Manifesto has greatly benefited from

the contribuQons of esteemed colleagues and doctoral students America ü CIRRELT Research Center:

•  Teodor Crainic -‐ UQAM •  Michel Gendreau -‐ Université de Montréal •  Driss Hakimi, Mustapha Lounès, Jacques Renaud, Jacques Renaud -‐ Université Laval

ü CICMHE, College-‐Industry Council for Material Handling EducaQon: •  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 Ins<tute for Material Flow and Logis<c

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Manifesto Outline

? Global LogisQcs Sustainability Grand Challenge ? Envisioning the Physical Internet ? Enabling a LogisQcs Web

? Toward Realizing the Vision

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Sample of companies contribuQng to the Physical Internet IniQaQve

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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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Logistics is the backbone sustaining eBusiness At face value, logistics seems to be doing great!


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7

Container Logistics is the backbone

sustaining the

globalization of world trade

At face value, logistics

seems to be doing great!


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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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ECONOMIC LogisQcs: 5-‐15% burden on GDP of most countries

worldwide logisQcs costs grow faster than world trade

ENVIRONMENT One of the heaviest greenhouse gas generators,

energy consumers, polluters and materials wasters Growing negaQve contribuQon

while naQons’ goals aims for heavy reducQons SOCIAL

Lack of fast, reliable and affordable accessibility and mobility of physical objects for the vast majority of the world’s populaQon Too oden precarious logisQc work condiQons

LogisQcs inefficiency and unsustainability Why do we need to change ?

European Commission: A Roadmap for moving to a compe<<ve 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. Sta<s<cal Pocketbook, (2009)

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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 excepQon 3.   Truckers have become the modern cowboys 4.   Products mostly sit idle, stored where unneeded, yet so oden unavailable fast where

needed 5.   ProducQon and storage faciliQes 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 mulQmodal transport is a dream 10.   Gekng products in and out of ciQes is a nightmare 11.   LogisQcs networks & supply chains are neither secure nor robust 12.   Smart automaQon & technology are hard to jusQfy 13.   InnovaQon 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 & unsustainability symptoms Leading Us Toward Hibng the Wall Real Hard

11

1.   We are shipping air and packaging •  Trucks and containers are oden half empty at departure, with a large chunk of the non-‐empQness being filled by packaging: 56,8% full when not empty; 42,6% average uQlizaQon

2.   Empty travel is the norm rather than the excepQon •  Vehicles & containers oden return empty, or travel extra routes to find return shipments (25% of travel), and loaded vehicles get empQer and empQer 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 oden away from home for long duraQons (very high turnover rate); Precarious family & social life, and personal health; in general, logisQc operators and material handling personnel have similar precarious posiQons

4.   Products mostly sit idle, stored where unneeded yet so oden unavailable fast where needed

•  Manufacturers, distributors, retailers and users are all storing products oden in vast quanQQes through their networks of warehouses and distribuQon centers, yet service levels and response Qmes to local users are constraining and unreliable

5.   Poorly / badly used producQon and storage faciliQes •  Most businesses invest in storage and/or producQon faciliQes that are lowly used most of the Qmes, or yet badly used, dealing with products which would beper be dealt elsewhere, forcing unnecessary travel

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6.   So many products are never sold, never used •  A significant porQon of consumer products that are made never reach the right market on Qme, 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 mulQmodal transport is sQll a dream �  Even though there are great examples, in general synchronizaQon is so poor, interfaces so badly designed, that mulQmodal routes are most oden Qme-‐and-‐cost inefficient and risky

10.  Gekng products in, through and out of ciQes is a nightmare �  Most ciQes are not designed and equipped for easing freight transportaQon, handling & storage, making the feeding of businesses and ciQzens in ciQes a nightmare

RusQng new cars in disused airfield


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11.  LogisQcs networks & supply chains are neither secure nor robust

•  There is extreme concentraQon of operaQons in a limited number of centralized producQon and distribuQon faciliQes, with travel along a narrow set of high-‐traffic route

•  This makes the logisQc 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 automaQon & technology are hard to jusQfy •  Vehicles, handling systems and operaQonal faciliQes 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 jusQfy smart connecQve (e.g. RFID) technologies, systemic handling and transport automaQon, as well as smart collaboraQve piloQng sodware

13.   InnovaQon is strangled •  InnovaQon is boplenecked by lack of generic standards & protocols, transparency, modularity and systemic open infrastructure.

•  This makes breakthrough innovaQon so tough, jusQfying a focus on marginal epsilon innovaQon


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

Econom

ical

Environm

ental

Societal

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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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 LogisQcs Sustainability Grand Challenge

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Elici<ng the Overall Goal Toward Global Logis<cs 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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The Digital Internet ExploiQng the InformaQon Highway Metaphor

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

it relied on a physical transport and logisQcs metaphor: Building the informaQon highway

Decades ago the informaQon & communicaQons technology community was stuck in a huge inefficient and unsustainable tangle

due to millions of unconnected computers

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Before: millions of unconnected computers – inefficient and unsustainable Ader: millions of interconnected servers and computers to form

the “InformaQon Superhighway”

Key Enabler: transmission of formaped data packets through heterogeneous equipment respecQng 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

MeeQng the IT Grand Challenge Building Upon the InformaQon Superhighway Metaphor

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

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

the Physical Internet iniQaQve aims to exploit the Internet metaphor

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

breakthrough soluQon to global problems associated with the way

we move, handle, 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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Exposing Key Features of the Physical Internet Vision

Evolving towards a worldwide Physical Internet

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The Physical Internet is an open global logisQcs system founded on physical, digital

and operaQonal interconnecQvity

through encapsulaQon, interfaces and protocols

The PI enables

an efficient, sustainable, adaptable and resilient

LogisQcs Web

The Physical Internet (PI, π)

Universal*interconnec.vity*Physical* Digital*Opera.onal*

Encapsula.on* Interfaces* Protocols*

Open* Global* System*

Founda.ons*of*the*Physical*Internet*Economical* Environmental* Societal*

Efficiency* Sustainability*

Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*

Move* Store* Realize* Supply* Use*Physical*Objects*

Logis.cs*Web*

Innova.on*Business*Technology* Infrastructure*

Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Founda<ons, In: Service Orienta<on in Holonic and Mul< Agent Manufacturing and Robo<cs, edited by T. Borangiu et al., Springer.

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•  Open market for goods transportaQon (eBay-‐style)

•  Handles only “black box” modular containers

•  Open and shared transportaQon and distribuQon networks

•  Vast community of users •  Supplier cerQficaQon and

raQngs-‐by-‐users to drive logisQcs performance

Simplified Mental Image of the Physical Internet

Seamless modular container consolida<on in the Physical Internet B. Montreuil & C. Thivierge, 2011

Adapted from a contribu<on of Professor Russ Meller from CELDi, U. of Arkansas

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Positioning the Physical Internet

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

World Wide Web (WWW) Digital Internet

Digital InformaQon Packets

Open LogisQcs Web Physical Internet Smart Physical Packets

ConnecQng Physical Objects through WWW

Internet of Things Smart Networked Objects

Smart Grid Energy Internet

Energy Packets

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Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


Universal InterconnecQvity

High-‐performance logisQc 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 interconnecQvity

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Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


EncapsulaQon The Physical Internet does not deal directly with physical goods

It requires their

standardized encapsulaQon, such as data packets in the Physical Internet

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Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


Physical encapsulaQon

Physically encapsulate goods in π-‐containers that are modular, ecofriendly, smart

and standardized worldwide

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Physically encapsulation of goods in π-containers Modular, ecofriendly, smart & standardized worldwide

Decomposi)on+

Composi)on+

•  Merchandise is uniQzed as content of a π-‐container and is not dealt with explicitly by PI •  Modular dimensions from cargo container sizes down to Qny 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 idenQficaQon, rouQng and maintaining •  Various usage-‐adapted structural grades •  CondiQoning capabiliQes as necessary (e.g. temperature) •  Sealable for security purposes

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Physically encapsulation of goods in π-containers World standard modular dimensions and fixtures

É. Ballot, B. Montreuil, R.D. Meller

Concep

tual design by Ben

oit M

ontreu

il and Marie-‐Ann

e Cô

té

CIRR

ELT, Université

Laval, Q

uébe

c, Canada, 2012

X

Y

Z 0,12 m 0,24 m 0,36 m 0,48 m 0,6 m

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

0,1 m 0,2 m 0,3 m 0,4 m 0,5 m 0,6 m 1,2 m 2,4 m 3,6 m 4,8 m 6 m 12 m

IllustraQve potenQal modular

dimensions

Conceptual design illustraQng the dimensional modularity of π-‐containers

The illustrated π-‐container design has a strictly conceptual and func<onal: it has no prescrip<ve technical design and engineering intent

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Physically encapsulation of goods in π-containers Easy to compose into composite containers, then to decompose

Concep

tual design by Ben

oit M

ontreu

il and Marie-‐Ann

e Cô

té

CIRR

ELT, Université

Laval, Q

uébe

c, Canada, 2012

Conceptual design illustraQng the composiQon funcQonality

of π-‐containers

The illustrated π-‐container design has a strictly conceptual and func<onal: it has no prescrip<ve technical design and engineering intent

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Consumer Product Goods Company 494 products 268 shelf packages

258 case sizes

At the pallet level, there 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 spaQal impact of modular encapsulaQon

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 Informa;on Control Problems in Manufacturing, Bucharest – Romania, (2012).

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•  Maximal volumetric and funcQonal density while being in Physical Internet containers, extendable to their usage dimensions when necessary

–  FuncQonal density of an object can be expressed as the raQo of its useful funcQonality 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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Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


Digital encapsulaQon ExploiQng as best as possible

the capabiliQes 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 and the Internet of Things

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

F  The Internet of Things is about enabling ubiquitous connecQon with physical objects equipped with smart connecQve technology (RFID, GPS, sensors, 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 connecQvity of its π-‐containers and π-‐systems

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Interfaces opQmized for universal interconnecQvity

Physical & digital interfaces exploiQng the characterisQcs

of π-‐containers and standardized worldwide






Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


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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 innovaQve technologies and processes exploiQng the characterisQcs of π-‐containers to enable their fast, cheap, easy and reliable input, storage, composing, decomposing,

monitoring, protecQon and output through smart, sustainable and seamless

automaQon and human handling

π-‐stores

π-‐movers A fork-‐less lis exploi<ng the snapping and interlocking func<onali<es of the π-‐container

A π-‐container equipped with wheels snapped through its standard modular interfaces

A highly flexible plug-‐and-‐play π-‐conveyor exploi<ng 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 innovaQons

in storage technologies exploiQng the funcQonal

characterisQcs 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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LogisQcs 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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Water&

Road&

Roadway

MulQmodal logisQcs centers designed for the Physical Internet, enabling seamless, fast, cheap, safe, reliable, & distributed, mulQmodal

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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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, mul<modal transport and deployment of π-‐containers across the Physical Internet

LogisQcs 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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Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


Physical Internet Protocols

Protocols opQmized for universal interconnecQvity

regulaQng the mulQ-‐layer services of the Physical Internet

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L1#Physical#Layer#

L2#Link#Layer#

L3#Network#Layer#

L4#Rou9ng#Layer#

L5#Shipping#Layer#

L6#Encapsula9on#Layer#

L7#Logis9cs#Web#Layer#

Purchase#order#with#delivery#requirements#Supplier#

Order#monitoring#

Shipment#&#πJcontainer#assignment#&#monitoring#

L7#Logis9cs#Web#Layer#

…#

Physical#characteris9cs#of#products:#Weight,(Volume,(Temperature,(Hazard5Level(GeoJcharacteris9cs#of#order:#Single(vs.(mul<ple(des<na<ons,(Single(vs.(mul<ple(sourcing(loca<ons(TimeJcharacteris9cs#of#order:#Delivery(<me(specifica<ons(

Encapsula9on#characteris9cs:(Number(and(types(of(π5containers((Assignment(of(products(to(π5containers((

Client#

Shipments#characteris9cs:#Number(of(shipments(Assignment(of(π5containers(to(shipments(Logis<cs(service(class(for(each(shipment(

Rou9ng#characteris9cs:#Target(route(for(each(shipment,(defined(as(sequences(of(segments/nodes,(with(<ming(specifica<ons(

Transport/handling#characteris9cs:(Assignment(of(π5containers(to(π5means(Assignment(of(π5means(to(π5links(

Move#characteris9cs:(Genera<on(of(loading,(moving,(sor<ng,(storing,(retrieving(and(unloading(orders(

πJcontainer#and#πJmeans##state/defect#monitoring#&#move#order#tracking#

Route#assignment#&#monitoring#for#each#shipment#&#πJcontainer#

Network#state#monitoring#Route#segment##

assignment#&#monitoring#

Valida9on#&#monitoring#of#each#flow#link#state#&#

route#segment#move#orders#

Data#transmiVed#to#the#lower#layer#

Data#transmiVed#to#the#upper#layer#

Standard LogisQcs Service Protocols

Open LogisQcs Interconnexion Model

Standardized mulQ-‐layered

service architecture and protocols

Montreuil B., E. Ballot & F. Fontane (2012). An Open Logis;cs Interconnec;on Model for the Physical Internet, Proceedings of INCOM 2012 Symposium, Bucharest, Romania, 2012/05/23-‐25. "

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Deploy capability cerQficaQons

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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Live open monitoring of really achieved performance of all π-‐cerQfied actors and enQQes,

on key performance indices on criQcal 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 sQmulate conQnuous improvement

Open informaQon is to be provided in respect of confidenQality of specific transacQons

Open Performance Monitoring

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Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


A Global System

The Physical Internet is seamlessly applicable

everywhere, at any scale

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Équipement 1!

Équipement 4!

Équipement 5!Équipement 3!

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Centre 1!

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The Physical Internet: the same conceptual framework at any scale Intra-‐center Inter-‐processor Network Intra-‐Faciilty Inter-‐Center Network Intra-‐Site Inter-‐FaciliQes Network

Intra-‐City Inter-‐Site Network

Intra-‐ConQnental Inter-‐City, Inter-‐State/Province Network Inter-‐ConQnental Worldwide Network

Québec, 2012-11-07, 45/75


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 mulQplicaQon 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 automaQcally 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

Québec, 2012-11-07, 46/75


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 informaQonal integrity of π-‐containers, π-‐movers, π-‐routes and π-‐nodes

–  The informaQonal integrity of π-‐actors (humans, sodware 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

Québec, 2012-11-07, 47/75


Enabling a LogisQcs Web

The purpose of the Physical Internet from a user perspec<ve

Québec, 2012-11-07, 48/75







Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


LogisQcs Web Set of openly interconnected physical, digital, human, organizaQonal and social actors and networks

aiming to serve efficiently and sustainably

the worldwide logisQcs needs of people, organizaQons, 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 Founda<ons, In: Service Orienta<on in Holonic and Mul< Agent Manufacturing and Robo<cs, edited by T. Borangiu et al., Springer.

Québec, 2012-11-07, 49/75


Mobility Web Moving goods & people

Interconnected open unimodal & mul;modal infrastructures, movers, hubs and transits

DistribuQon Web Deploying, storing

products Interconnected open warehouses

& distribu;on centers

RealizaQon Web Realizing products

Interconnected open produc;on, personalising & retrofit centers

Supply Web Supplying goods

Interconnected open suppliers and subcontractors

Service Web Enabling and sharing

access and usage of services rendered by goods & people

Interconnected open users and service providers

LogisQcs Web Set of openly interconnected physical, digital, human, organizational and social agents and networks

aiming to serve efficiently and sustainably the logistics needs of people, organizations, territories and society

Port%

Mari)me%route%

Highway%

Road%

Railroad%

Open%π9Port%

Open%π9store%&%π9distributor%zone%Air%route%

Open%π9factory%zone% Open%mul)modal%π9hub%&%π9transit%zone%

Open%unimodal%π9hub%&%π9transit%zone%

Québec, 2012-11-07, 50/75


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

20

20-401 81

90 90

71

70

70 44

44

44 40

40

40

40

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

Québec, 2012-11-07, 51/75


Truck&trailer,transport, Local,transport, Train,transport, Ship,transport,

Hub, Source/des8na8on,

!Mul8&segment,routes!taken!by!the!modular,containers!

from!a!single!shipment!out!of!the!source!through!the!open,mul8modal,Mobility,Web!

to!their!individual!des7na7on!!

Enabling an open global mobility web From point-‐to-‐point or hub-‐and-‐spoke transport to distributed mulQmodal transport

Québec, 2012-11-07, 52/75


IllustraQng Current LogisQcs Systems A small two-‐retailer two-‐manufacturer case

Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simula<ng a Physical Internet Enabled Logis<cs Web: the Case of Mass Distribu<on in France, ISERC 2012, 2012/-‐5/19-‐23

D1

D2a

D2b

PA1

PA2

PB

DA

DB

: usine; : Magasin de détail; : centre de distribution privé P# S#

: Flux de produits : Route de transport terrestre

Current Conceptual Networks Current SpaQal Flows

Manufacturer B

Retailer 2

PB

D2a

DB

D2b

S2a S2f S2j

Manufacturer A PA1

DA

D1

S1a S1e Retailer 1

PA2

S2e …" …" …"

Québec, 2012-11-07, 53/75


The Impact of ExploiQng a Mobility Web Here limited to unimodal road transport

D1

D2a

D2b

PA1

PA2

PB

DA

DB



D1 PA1

PA2

PB

DA

DB

D2b

D2a

: usine; : centre de distribution; : Magasin de détail; : hub ouvert D# P#

Travelled distance: -27% Fuel Consumption: -19%

Average delivery time: +2% Maximum delivery time: -36%

Current Mobility Web

Québec, 2012-11-07, 54/75


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 exisQng infrastructures, faciliQes, demand paperns and service levels Economical: From 4% to 26% overall cost saving

Environmental: About 3 Qmes beper in terms of greenhouse gas emissions, by combining road-‐to-‐rail modal transfer and more efficient road transport

ExploiQng 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

SimulaQon based on product distribuQon flow to two top retailers in France, from their 100 top suppliers

Québec, 2012-11-07, 55/75


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

Québec, 2012-11-07, 56/75


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"

PB

S2a S2e S2f S1a S1e

PA1 PA1

S2j

…" …"

O1" O2" O3"

O4" O5" O1"

Manufacturer B

Retailer 2

PB

D2a

DB

D2b

S2a S2f S2j

Manufacturer A PA1

DA

D1

S1a S1e Retailer 1

PA2

S2e …" …" …"

Client order

Physical flow : Plant : Retail store : Private distribution center : Open distribution center P# S# O#

Québec, 2012-11-07, 57/75


Travelled distance: -23% Fuel consumption: -29%

Average delivery time to store: -79% Maximum delivery time to store: -71%

Mobility Web

PA1

PA2

PB

: usine; : Magasin de détail; : hub ouvert; : centre de distribution ouvert P#

Mobility Web + DisQrbuQon Web

D 1 P A 1

P A 2

P B

DA D B

D 2b

D 2a

: us i ne ; : c e nt re de di s t ri but i on; : M a ga s i n de dé t a i l ; : hub ouve rt D # P #

The Added Value of Exploiting a Distribution Web When Already Exploiting a Mobility Web

Québec, 2012-11-07, 58/75


D1

D2a

D2b

PA1

PA2

PB

DA

DB



The Impact of ExploiQng a LogisQcs Web IntegraQng Mobility and DistribuQon Webs

D1 PA1

PA2

PB

DA

DB

D2b

D2a

: usine; : centre de distribution; : Magasin de détail; : hub ouvert D# P#

[Average; Max] Delivery-Time-to-Store

Mobility Web

PA1

PA2

PB

: usine; : Magasin de détail; : hub ouvert; : centre de distribution ouvert P#

Mobility Web + DistribuQon Web

Private LogisQcs Networks

-82%; -74%

+16%; +15%

-79%; -71%

-19%; -27%

-29%; -23%

-42%; -44%

Fuel; Travel

Québec, 2012-11-07, 59/75


Minimize physical moves and storages by digitally transmikng knowledge

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

ExploiQng extensively knowledge-‐based dematerializaQon of products and their materializaQon 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 producQon centers capable of locally realizing (make, assemble, finish) for clients a wide variety of products

from digitally transmiped specificaQons, local physical objects and, if needed,

criQcal physical objects brought in from faraway sources

Open Global RealizaQon Web

Québec, 2012-11-07, 60/75


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 realizaQon network centered around an integrated manufacturing & assembly plant

AlternaQve realizaQon network exploiQng realizaQon web for outsourcing assembly

AlternaQve realizaQon network exploiQng realizaQon 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

Québec, 2012-11-07, 61/75


Open Supply Web

Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked opera<ons, Proc. of SOHOMA 2011

Québec, 2012-11-07, 62/75


Distribu<on Web Mobility Web

Realiza<on Web

Tier-‐0

Tier-‐1

Tier-‐2

Each supplier may for example sign a guaranteed X-‐<me accessibility

contract with each client, keeping responsibility for

product delivery, deployment and realiza<on

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

Québec, 2012-11-07, 63/75


A Supply Web with Myriads of π-Certified Suppliers, Open & Global Access, Standardized Contracts,

Open Monitoring and Supplier Ratings Mul;-‐;ered, from raw materials to final products

Each exploi;ng the Mobility, Distribu;on & Realiza;on webs

Québec, 2012-11-07, 64/75







Mobility*Web*

Distribu.on*Web*

Realiza.on*Web*

Supply*Web*

Service*Web*


Logis.cs*Web*


π-‐Enabling InnovaQon

π-‐Enabled InnovaQon

Physical Internet induced innovaQon

Québec, 2012-11-07, 65/75


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 InnovaQon

π-‐Enabling technologies

π-‐Enablied technologies

Québec, 2012-11-07, 66/75


Physical Internet induced business model innovaQon

InnovaQve business models for commercializing

Physical Internet enabled offers by various parQes,

addressing stakeholder revenue, contracQng, 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-‐Enablied business models

Québec, 2012-11-07, 67/75


Physical Internet Induced Infrastructural Innovation

The Physical Internet homogeneity in terms of object encapsulaQon in π-‐containers should allow a much beper uQlizaQon

of modes & means, thus increasing the capacity of infrastructures

by the exploitaQon of standardizaQons, raQonalizaQons and automaQons

through currently unreachable innovaQons

π-‐Enabling infrastructures

π-‐Enablied infrastructures

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

FoodTubes and CargoCap: Examples of currently contemplated infrastructural iniQaQves whose implementaQon viability can be upgraded through alignment with the Physical Internet

Québec, 2012-11-07, 68/75


Realizing the Vision

Evolving towards a worldwide Physical Internet

Québec, 2012-11-07, 69/75


The Physical Internet Global systemic sustainable vision

sQmulaQng and aligning acQon around the world

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

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

a unifying, challenging and sQmulaQng framework

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

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

Québec, 2012-11-07, 70/75


Physical Internet ImplementaQon Progressive Deployment, CohabitaQon and CerQficaQon

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 cohabitaQon and of progressive deployment, propelled by the actors

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

exploitaQon

Québec, 2012-11-07, 71/75


F A smooth transiQon starQng with rethinking and retrofikng phases, then moving toward more transformaQve phases

F The Physical Internet can consQtute itself progressively through the mulQ-‐level cerQficaQon of: –  Protocols –  Containers –  Handling and storage technologies, distribuQon centers, producQon centers, train staQons, ports, mulQmodal hubs

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

Physical Internet ImplementaQon Progressive Deployment, CohabitaQon and CerQficaQon

Québec, 2012-11-07, 72/75


Conclusion The Physical Internet: An Instrument for Tackling

the Grand LogisQcs Sustainability Challenge

ExploiQng the Internet metaphor for fostering a breakthrough logisQcs system

A commitment towards open universal interconnecQon of logisQcs services and resources

An integrated holisQc 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-‐operaQve approach

1/3

Québec, 2012-11-07, 73/75


The Physical Internet builds on the network effect, gekng ever more effecQve as it gathers more users

It must gather criQcal mass, first exploiQng exisQng infrastructures and means,

then gradually fostering innovaQon.

Even though it is to be ulQmately global it will have to grow first in ferQle domains,

to be collaboraQvely supported by key leaders from industry, government and academia.

Conclusion The Physical Internet: Not an Utopia, not a Big-‐Bang

2/3

Québec, 2012-11-07, 74/75


Conclusion The InternaQonal Physical Internet IniQaQve:

An Open InnovaQon Endeavor With this manifesto and its underlying research, a small step has been made towards meeQng

the global logisQcs 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 iniQaQves and projects

so as to really influence in a posiQve way our collecQve future

This requires a lot of collaboraQon between academia, industry and governments across localiQes, countries and conQnents

Your help is welcome!

3/3

Québec, 2012-11-07, 75/75


Questions and comments are welcome, and especially collaborative project avenues

[email protected]

www.physicalinterneQniQaQve.org

Twiper: @physicinternet

physical internet manifesto version 1.11 2012 11-07 bm

Documents

physical internet manifesto

way physical objects

enterprise networks

russ meller celdi

shenle pan

frdric fontane

collegeindustry council

material handling educaqon