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  • 1. Logistics in the Cloud:The future of supply chain management Prof. Dr. J. Rod Franklin, P.E. Vice President, Product Development Kuehne + Nagel Management AG Adjunct Professor of Logistics The Kuehne Logistics University
  • 2. Agenda• The Current State • Collaboration issues • Key requirements • How?• Cloud Logistics • Cloud Computing – a quick overview • Logistics in the Cloud• The FInest Project • FInest and Cloud Logistics • Project Motivation • The FInest Consortium • Core Modules • Envisioned Service • Supply Chain Management in the Cloud – An example• Summary and Questions 2
  • 3. Collaboration IssuesPressing problems Limited visibility of T&L processes and critical events hampers business network efficiency and effectiveness Closed logistic supply chains hinder agile inter- organizational information exchange and collaboration and access Highly manual processes are employed to address a lack of standards, legal and governmental regulations, contract management and poor integration between partners 3
  • 4. Key RequirementsRequirement 1 Efficient support for inter-organizational collaboration and contracting in cooperative business networksRequirement 2 Seamless integration of information and data along with real-world data acquisition 4
  • 5. But how? Project Motivation • Existing ICT solutions insufficient to dynamically establish collaborative T&L networks, leading to closed supply chains • Closed supply chains disadvantages SMEs in participating in large collaborative T&L networks • Limited visibility on T&L processes and critical events, as well as lack of global standards for information exchange hampers business network efficiency and effectiveness Future Internet + Generic Enablers • Project Aims • Build Collaboration & Integration Platform for international T&L networks, by exploiting generic enablers of the Future Internet Core Platform • Preparing for the demonstration and evaluation in large-scale trials with real-world use case scenarios Domain-specific Capabilities for • Efficient inter-organizational collaboration in cooperative business networks that operate in agile and dynamic environments and involve a multitude of stakeholders • Seamless integration of information and data in heterogeneous IT landscapes along with embedded facilities for real-world data acquisition and integration 5
  • 6. Cloud Logistics• To understand what cloud logistics is you need to understand cloud based computing 6
  • 7. Cloud Logistics• Cloud computing can be defined as Cloud Computing Explained follows: • An approach to computing that provides computation, software, data access, and storage services that do not require end- user knowledge of the physical location and configuration of the system that delivers the services. Parallels to this concept can be drawn with the electricity grid, wherein end-users consume power without needing to understand the component devices or infrastructure required to provide the service. Source: Wikipedia• The benefits of this approach are: • Scalability • Flexibility • Cost • Maintenance Infrastructure as a Service: hosted hardware and management • Integration services for the physical components needed to run • Virtualization (device location applications Platform as a Service: facilities for developing and deploying independence) cloud based applications Software as a Service: cloud based business applications 7
  • 8. Cloud Logistics• Cloud logistics is simply the use of cloud based logistics applications and information management services to manage supply chains 8
  • 9. The FInest Project• FInest is a cloud logistics project based on the use of Future Internet services• FInest addresses current transport and logistics issues associated with: • Collaboration • Integration • Visibility • Planning • Contracting • Sense and respond (proactive event management) 9
  • 10. Consortium 11 partners, 6 countries, 2 SMEs, 1 public body 10
  • 11. FInest Core Modules •Global view & coordination of logistics processes Business •Service-oriented inter-organizational collaboration Collaboration manager, targeted to different T&L stakeholders •Semi-automated e-contract selection and management eContracting •Creation of more dynamic marketplaces to seamless support e- contracting (e.g., spot contracting) •Event-driven monitoring, across domains & modality, providingProactive Event end-to-end visibility of logistic processes Monitoring •Proactive event processing driven by contract management and transport planning & triggering transport re-planningTransport (Re-) •Dynamic transport (re-)planning facilities, automatically Planning exploiting real-world data
  • 12. Envisioned Service Web Mobile Email Front-End FI PPP Core Platform T&L Service-based Communication Layer Collaboration & Integration Business Platform eContracting Collaboration Proactive Event Transport (Re-) Monitoring Planning Back-End SaaS Integration Layer Domain- Smart Items Legacy systems and 3rd party services specific Generic capabilities Enablers 12
  • 13. Illustrative Examplelogistics process BCM provides global view on overall process Real-world • Based on the real situation, the TPM plans the transport and creates a plan • BCM imports this plan and converts it to the BCM create transport plan TPM internal FInest Platform contract representation, based internal representation contract info. on Collaboration 11 44 status ECM Objects 33 • Based on the 22 up- events to monitor …… date plan, BCM registers events EPM events to monitor (e.g., ship arrival in • EPM events Ålesund to update the are used internal model (e.g., ship arrived) InvolvedStakeholders • Stakeholders access this information to get up-to-date view Port of NCL Authorities on the logistics process Ålesund T&F • Encapsulation in Collaboration • Each CO represents a certain part of the log. process Objects ensures non-disclosure of • Stakeholders can only access particular data 13 confidential data
  • 14. Summary and Questions• Cloud computing offers significant advantages for “on demand” distributed collaboration• Cloud based logistics provides a means to rapidly assemble and manage logistics services• Collaboration “in the cloud” levels the playing field for customers, service providers and regulatory agencies The Future of Supply Chain Management is in the Clouds 14
  • 15. THANK YOU! 15