1. 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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 1/51

2. 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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 2/51

3. 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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 3/51

4. 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?
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 4/51

5. Why Do we need a Physical Internet ?
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 5/51

6. Why do we need to change ?
LogisHcs
inefficiency
and
unsustainability
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 6/51

7. 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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 7/51

8. 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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 8/51

9. Logistics inefficiency and unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 9/51

10. Logistics inefficiency and unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
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
RusHng
new
cars
in
disused
airfield
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 10/51

11. Logistics inefficiency and unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 11/51

12. Logistics inefficiency and unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 12/51

13. Logistics inefficiency and unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 13/51

14. Mapping
inefficiency
&
unsustainability
symptoms
to
economical,
environmental
and
societal
facets
!$)&*#$%+$,'(
!"#$#%&"'(
O$1<1,'&$'=&(&,8018%3,#%1
-#"&+,'(
. /+0'*+012&33&$40'&*0'$503'"6'4&$4
7 !%3,80,*')+(0&10,2+0$#*%0*',2+*0,2'$0,2+0+9"+3,&#$
: ;*<"6+*102')+0=+"#%+0,2+0%#5+*$0"#>=#81
@*#5<",10%#1,(801&,0&5(+A01,#*+50>2+*+0<$$++5+5A08+,01#0#B,+$0
?
<$')'&('=(+0B'1,0>2+*+0$++5+5
C @*#5<",&#$0'$501,#*'4+0B'"&(&,&+10'*+03##*(80<1+5
D -#0%'$803*#5<",10'*+0$+)+*01#(5A0$+)+*0<1+5
E @*#5<",105#0$#,0*+'"20,2#1+0>2#0$++50,2+%0,2+0%#1,
F @*#5<",10<$$+"+11'*&(80%#)+A0"*&11"*#11&$40,2+0>#*(5
G H'1,0I0*+(&'=(+0&$,+*%#5'(0,*'$13#*,0&101,&((0'05*+'%0#*0'0J#6+
.K L+,,&$403*#5<",10&$0'$50#<,0#B0"&,&+10&10'0$&42,%'*+
.. M+,>#*610'*+0$+&,2+*01+"<*+0$#*0*#=<1,
.7 -%'*,0'<,#%',&#$0I0,+"2$#(#480'*+02'*50,#0J<1,&B8
.: N$$#)',&#$0&101,*'$4(+5
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 14/51

15. Eliciting the Overall Goal Toward
Global Logistics Efficiency and Sustainability
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
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
Note: Logistics is hereafter used in its broad sense notably including transportation, handling, storage,
supply, realization (production, assembly, finishing, personalizing, recycling) and usage
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 15/51

16. The
Digital
Internet
ExploiHng
the
InformaHon
Highway
Metaphor
Decades
ago
the
informaHon
&
communicaHons
technology
community
was
stuck
in
a
huge
inefficient
and
unsustainable
tangle
due
to
millions
of
unconnected
computers
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 16/51

17. The
Digital
Internet
Expanding
Beyond
the
InformaHon
Highway
Metaphor
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 17/51

18. 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/
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 18/51

19. How do we propose to meet
the Logistics Grand Challenge ?
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
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 19/51

20. Exposing
Key
Features
of
the
Physical
Internet
Vision
Evolving
towards
a
worldwide
Physical
Internet
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 20/51

21. 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
Physical Internet: PI, π
Current version of a working definition for the Physical Internet, jointly developed by Benoit Montreuil, Eric Ballot and Russ Meller
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 21/51

22. Positioning the Physical Internet
World
Wide
Web
(WWW)
Digital
Internet
Digital
informaHon
Packets
Smart
Grid
ConnecHng
Physical
objects
through
WWW
Energy
Internet
of
Things
Internet
Smart
Networked
Objects
Energy
Packets
Open
Supply
Web
Physical
Internet
Smart
Physical
Packets
Original
schema<cs
from
Benoit
Montreuil,
2010,
Physical
Internet
Manifesto,
www.physicalinterne<ni<a<ve.org
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 22/51

23. 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
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 23/51

24. What are the design aims of the Physical Internet?
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 24/51

25. What are the design aims of the Physical Internet?
2.
Aim
for
a
unified
mulH-­‐scale
conceptual
framework
Intra-­‐Center
Inter-­‐Processor
Network
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 25/51

26. What are the design aims of the Physical Internet?
2.
Aim
for
a
unified
mulH-­‐scale
conceptual
framework
Intra-­‐Facility
Inter-­‐Center
Network
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 26/51

27. What are the design aims of the Physical Internet?
2.
Aim
for
a
unified
mulH-­‐scale
conceptual
framework
Intra-­‐Site
Inter-­‐Facility
Network
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 27/51

28. What are the design aims of the Physical Internet?
2.
Aim
for
a
unified
mulH-­‐scale
conceptual
framework
Intra-­‐City
π-­‐transits
&
π-­‐hubs
Inter-­‐Site
Network
Toward π-enabled!
sustainable!
city logistics!
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 28/51

29. What are the design aims of the Physical Internet?
2.
Aim
for
a
unified
mulH-­‐scale
conceptual
framework
Québec,
Canada
Intra-­‐State
π-­‐transits
&
π-­‐hubs
Inter-­‐City
Network
North
eastern
states,
U.S.A.
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 29/51

30. What are the design aims of the Physical Internet?
2.
Aim
for
a
unified
mulH-­‐scale
conceptual
framework
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 30/51

31. What are the design aims of the Physical Internet?
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 31/51

32. What are the design aims of the Physical Internet?
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 32/51

33. What are the enabling constituents of the Physical Internet?
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 33/51

34. What are the enabling constituents of the Physical Internet?
π-Containers modularized and standardized worldwide
in terms of dimensions, functions and fixtures
Y
X
Z
Illustrative
modular
dimensions
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
6m
12 m !"#$%&'&(&)&*,+&
B. Montreuil, B. Gilbert
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 34/51

35. What are the enabling constituents of the Physical Internet?
π-­‐Containers
designed
for
the Physical Internet
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.
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 35/51

36. What are the enabling constituents of the Physical Internet?
Key features of π-containers
Securable
Modular
Traceable,
Routable
Factor
y
Snappable
Client
s
(reta
Easy-­‐to-­‐dismantle
il
shel
ve s)
Reusable
Recyclable
Original
drawing
by
Eric
Ballot,
Mines
ParisTech,2011-­‐06-­‐27,
adapted
by
Benoit
Montreuil
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 36/51
36

37. What are the enabling constituents of the Physical Internet?
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
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.
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 37/51

38. What are the enabling constituents of the Physical Internet?
5.
Evolve
from
material
to
π-­‐container
transport,
handling
&
storage
means
and
systems
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 38/51

39. What are the enabling constituents of the Physical Internet?
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 39/51

40. Physical Internet and the Internet of Things
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
Image: http://www.globetracker.biz/GlobeTracker/News.asp
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 40/51

41. What are the targets of the Physical Internet?
7. Enabling an open global mobility web
From point-to-point hub-and-spoke transport to distributed multimodal transport
Québec
20
Montréal
20-401
81
Alexandria Bay, US border
90
Syracuse
90 Buffalo
71 Cleveland
70
Columbus
70
Indianapolis
44 St-Louis
44 Springfield Current Proposed
Tulsa P2P Distributed
44
Distance travelled one-way: 5030 km 5030 km
40 Oklahoma City
Drivers: 1 17
40 Amarillo
Trucks: 1 17
40 Albuquerque Trailer: 1 1
40 Flagstaff One-way driving time (h): 48 51+
40 Needles Return driving time (h): 48+ 51+
Barstow Total time at transit points (h): 0 9
15-10
Total trailer trip time from Quebec to LA (h): 120 60+
Los Angeles
Total trailer trip time from LA to Quebec (h): 120+ 60+
Total trailer round trip time (h): 240+ 120+
Multi-segment travel Average driving time per driver (h): 96+ 6
from Quebec to Los Angeles Average trip time per driver (h): 240+ 6,5
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 41/51

42. What are the targets of the Physical Internet?
7. Enabling an open global mobility web
Transporta<on
between
nodes
+
Handling
within
nodes
:
About
Moving
Objects
An
interconnected
set
of
open
unimodal
&
mul3modal
hubs,
transits
&
ports
Air
route
Road
Open
π-­‐Port
MariHme
route
Highway
Open
mulHmodal
π-­‐hub
&
π-­‐transit
zone
Railroad
Open
unimodal
π-­‐hub
&
π-­‐transit
zone
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 42/51
42

43. ."$# -*# !"#
-"# !$#
7. Enabling an open global .*# -'# !%#
mobility web -(# !&#
."%# -+# !'#
-)# !(#
-%# !)#
!*#
.(# -&# !+#
π-­‐Transit
sites
-$# !",#
allowing
distributed
!"#$%&'()*'+,-"
mulH-­‐segment
transport
!"#$%),,*+,"
through
the
Physical
Internet
!"#$.+/*%0+"
!"#$1)2"
Status of !-carriers currently in !-transit"
Incoming deposit Outgoing pickup estimation
!-carrier !-bay
!-vehicle Time !-vehicle Time (min, mode, max)
C1 B2 V1 04:35 V14 (06:04, 06:05, 06:15)
C2 B10 V3 05:15 V15 (06:05, 06:09, 06:12)
C3 B7 V4 05:20 V13 (06:04, 06:07, 06:10)
C4 B9 V6 05:35 V11 (06:02, 06:02, 06:02)
C5 B3 V8 05:45 V12 (06:01, 06:01, 06:01)
C6 B4 V9 05:48 V16 (06:10, 06:12, 06:18)
C7 B6 V11 05:55 V19 (06:15, 06:20, 06:30)
C8 B1 V12 05:58 V18 (06:10, 06:15, 06:20)
C9 B10 V13 06:00 V25 (06:20, 06:30, 06:45)
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.
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 43/51

44. !"#$%&
7. Enabling an open global
mobility web
Road-­‐Water
π-­‐Hub
designed
for
enabling
distributed
mulH-­‐segment
intermodal
transport
of
π-­‐containers
through
the
Physical
Internet
'(")&
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.
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 44/51

45. What are the targets of the Physical Internet?
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
Enabling Physical Equivalents of!
Intranets, Virtual Private Networks,!
Cloud Computing and Cloud Storage!
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<.
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 45/51

46. What are the targets of the Physical Internet?
Open
DistribuHon
Web
An
interconnected
set
of
open
warehouses
and
distribu3on
centers
Port
Road
Open
π-­‐Port
MariHme
route
Railroad
Open
π-­‐store
&
π-­‐distributor
zone
Air
route
Highway
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 46/51
46

47. What are the targets of the Physical Internet?
Activate and exploit
an Open Global
Distribution Web
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
Reference: Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 47/51

48. 1
Factories: 4 3
Firm dedicated DCs:
16
Mean lead time: 1,75 2
Max lead time: 3 4
Independent Factory: 1 Factory: 1 Factory: 1 Factory: 1
private Firm dedicated DCs: 4 Firm dedicated DCs: 4 Firm dedicated DCs: 4 Firm dedicated DCs: 4
Mean lead time: 1,73 Mean lead time: 1,78 Mean lead time: 1,75 Mean lead time: 1,73
distribution Max lead time: 3 Max lead time: 3 Max lead time: 3 Max lead time: 3
networks
Shared distribution web Shared distribution web
with independently with jointly
1 1
implemented DCs 3 3 implemented DCs
Factories: 4 Factories: 4
Firm dedicated DCs: 0 Firm dedicated DCs: 0
2 2
Group dedicated DCs: 16 Group dedicated DCs: 3
Mean lead time: 1,08 4 4 Mean lead time: 1,48
Max lead time: 3 Max lead time: 3
1 Factories: 4
3 Firm dedicated DCs: 0
Open distribution web Group dedicated DCs: 0
with a high density of open DCs Open DCs used: 60+
Mean lead time: 0
available to many other clients 2
4 Max lead time: 0
* Lead times induced by transport from DC to client region
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 48/51

49. What are the targets of the Physical Internet?
Open
RealizaHon
Web
An
interconnected
set
of
open
produc3on,
personaliza3on
&
retrofit
centers,
indeed
of
open
factories
of
any
type
Port
Road
Open
π-­‐factory
zone
MariHme
route
Railroad
Air
route
Highway
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 49/51
49

50. What are the targets of the Physical Internet?
Open
Supply
Web
The
union
of
open
distribu3on
web
&
open
realiza3on
web
Port
Road
Open
π-­‐Port
MariHme
route
Railroad
Open
π-­‐store
&
π-­‐distributor
zone
Air
route
Highway
Open
π-­‐factory
zone
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 50/51
50

51. What are the targets of the Physical Internet?
Open
Supply
Web
!"##$%&'()*+,-&.&
9&
+
:&
!"##$%& 3#('&4"##$%&*(1&
'()*+,-&/& = (5#$+6)(7&1%&/&8'7&.&
!"##$%&
;&vs
0(1&
/2.&
Source:
Ballot
E.,
O.
Guodet
&
B.
Montreuil
(2011),
Physical
Internet
enabled
open
hub
network
design
for
distributed
networked
opera<ons,
Proc.
of
SOHOMA
2011
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 51/51

52. Shared supply web Shared supply web
with shared factories with shared factories
and independently implemented shared DCs and jointly implemented shared DCs
Firm dedicated factories: 0 Firm dedicated factories: 0
Group shared factories: 4 Group shared factories: 4
Firm dedicated DCs: 0 Firm dedicated DCs: 0
Group shared DCs: 16 Group shared DCs: 3
Mean DC-to-region lead time: 1,08 Mean DC-to-region lead time: 1,48
Max DC-to-region lead time: 3 Max DC-to-region lead time: 3
Mean factory-to-DC lead time: 1,11 Mean factory-to-DC lead time: 0,83
Max factory-to-DC lead time: 3 Max factory-to-DC lead time: 3
Firm dedicated factories: 0
Group shared factories: 4
Open supply web Firm dedicated DCs: 0
Group shared DCs: 0
with a high density of open DCs Open DCs used: 60+
available to many other clients Mean DC-to-region lead time: 0
Max DC-to-region lead time: 0
and shared factories Mean factory-to-DC lead time: 2
among the four firms Max factory-to-DC lead time: 4
Firm dedicated factories: 0
Group shared factories: 0
Open factories used: 64+
Open supply web Firm dedicated DCs: 0
with a high density of Group dedicated DCs: 0
open distribution and production centers Open DCs used: 64+
Mean DC-to-region lead time: 0
available to many other clients 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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 52/51

53. What are the targets of the Physical Internet?
Open
LogisHcs
Web
The
union
of
Open
Mobility
Web
and
Open
Supply
Web
Port
Air
route
Open
mulHmodal
π-­‐hub
&
π-­‐transit
zone
MariHme
route
Road
Open
unimodal
π-­‐hub
&
π-­‐transit
zone
Open
π-­‐Port
Highway
Railroad
Open
π-­‐store
&
π-­‐distributor
zone
Open
π-­‐factory
zone
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 53/51
53

54. Open
RealizaHon
web
Open
Produc3on,
Personaliza3on
&
Retrofit
Centers
Open
Supply
Open
DistribuHon
Web
Open
web
LogisHcs
Open
Distribu3on
Centers
Web
&
Warehouses
Open
Mobility
Open
web
Open
Mobility
Unimodal
&
Mul3modal
Web
Hubs
&
Transits
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 54/51

55. How can stakeholders help the Physical Internet thrive?
9.
Deploy
capability
cerHficaHons
and
open
performance
monitoring
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
Physical
Internet
Manifesto,
version
1.10
Professor
Benoit
Montreuil,
CIRRELT,
Université
Laval
2011-06-28, 55/51