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Physical internet manifesto 1.10.1 2011 04-05 english bm Physical internet manifesto 1.10.1 2011 04-05 english bm Presentation Transcript

  • Physical Internet Manifesto Transforming the way physical objects are handled, moved, stored, realized, supplied and used,aiming towards global logistics efficiency and sustainability Professor Benoit Montreuil Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center on Enterprise Networks, Logistics and Transportation Laval University, Québec, Canada Version 1.10.1: 2012-04-05 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 1/72
  • Acknowledgements The Physical Internet Manifesto has greatly benefited from the contribution of esteemed colleaguesAmerica CIRRELT Research Center: • Teodor Crainic - UQAM • Michel Gendreau - Université de Montréal • Olivier Labarthe, Mustapha Lounès & Jacques Renaud - Université Laval CICMHE, College-Industry Council for Material Handling Education: • Russ Meller – University of Arkansas • Kevin Gue & Jeff Smith – Auburn University • Kimberley Ellis – Virginia Tech • Leon McGinnis – Georgia Tech • Mike Ogle – MHIAEurope • Éric Ballot, Frédéric Fontane – Mines ParisTech • Rémy Glardon – EPFL • Rene De Koster – Erasmus University • Detlef Spee – Fraunhofer Institute for Material Flow and Logistic Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 2/72
  • Macroscopic Positioning 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 sustainabilityof physical object movement, handling, storage, realization, supply & usage VISION Evolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 3/72
  • 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 4/72
  • Why Do we need a Physical Internet ? Logistics inefficiency and unsustainability claim The way physical objects aremoved, handled, stored, realized, supplied and usedthroughout the world is inefficient and unsustainable economically, environmentally and socially Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 5/72
  • Why do we need to change ? Logistics inefficiency and unsustainability ECONOMIC Logistics: 10-20% burden on GDP of most countries The worldwide logistics cost grows faster than world trade ENVIRONMENTOne of the heaviest polluters, energy consumer and greenhouse gas generators Growing negative contribution while nations’ goals aims for heavy reductions SOCIAL Lack of fast, reliable and affordable accessibility and mobility of physical objects for the vast majority of the world’s population Too often precarious logistic work conditions Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 6/72
  • 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 strangledMontreuil 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 7/72
  • 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 8/72
  • 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 9/72
  • 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 Rusting 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 10/72
  • 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 11/72
  • 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 12/72
  • 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 13/72
  • Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 14/72
  • 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 objectsNote: 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 15/72
  • The Digital Internet Exploiting the Information Highway MetaphorDecades ago the information & communications 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 logistics metaphor: Building the information highway Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 16/72
  • The Digital InternetExpanding Beyond the Information Highway Metaphor They have achieved their goal and went farther, reshaping completely the way digital computing and communication are now performedThey 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 revolutionizing so many facets of our societal and economic reality Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 17/72
  • The Essence of the Digital Internet The Digital Internet is about the interconnection between networks in a way transparent for the user, so allowing the transmission of formatted data packets in a standard way permitting them to transit through heterogeneous equipment respecting the TCP/IP protocolReferences: Kurose J., Ross K. and Wesley A. “Computer Networking: A Top Down Approach Featuring the Internet”, 3rd edition., July 2004. Parziale L., Britt D.T., Davis C., Forrester J., Liu W., Matthews C. and Rosselot N. “TCP-IP Tutorial and Technical Overview”, 2006. http://www.redbooks.ibm.com/redbooks/pdfs/gg243376.pdf “Interconnection of access networks, MANs and WANs “, http://images.google.ca/imgres?imgurl=http://www.exfo.com/ Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 18/72
  • How do we propose to meet the Logistics Grand Challenge? The Physical Internet Initiative Using the Digital Internet as a Metaphor for the Physical World Even though there are fundamental differences between the physical world and the information world, the Physical Internet initiative aims to exploit the Internet metaphor so as to propose a vision for a sustainable and progressively deployable breakthrough solution to global problems associated with the way we move, handle, store, realize, supply and use physical objects all around the worldMontreuil 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 19/72
  • Exposing Key Features of the Physical Internet VisionEvolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 20/72
  • What is the Physical Internet? An open global logistics systembased on the physical, digital and operational interconnectivity enabled by the encapsulation, protocols and interfaces Physical Internet: PI, πCurrent version of a working definition for the Physical Internet, jointly developed by Benoit Montreuil, Eric Ballot and Russ Meller Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 21/72
  • Positioning the Physical Internet World Wide Web (WWW) Digital Internet Digital information Packets Smart Grid Connecting Physical objects through WWW Energy Internet of Things Internet Smart Networked Objects Energy Packets Open Supply Web Physical Internet Smart Physical PacketsOriginal schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 22/72
  • Key Features of the Physical Internet Vision 1. Aim toward universal interconnectivity 2. Aim for a unified multi-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. Activate and exploit an open global mobility web 8. Activate and exploit an open global supply web 9. Deploy capability certifications and open performance monitoring 10. Design products fitting containers with minimal space waste 11. Minimize physical moves and storages by digitally transmitting knowledge and materializing products as locally as possible 12. Stimulate business model innovation 13. Enable open infrastructural innovationMontreuil 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 23/72
  • What are the design aims of the Physical Internet? 1. Aim toward universal interconnectivity High-performance logistic 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 interconnectivity Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 24/72
  • What are the design aims of the Physical Internet?2. Aim for a unified multi-scale conceptual framework Intra-Center Inter-Processor Network Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 25/72
  • What are the design aims of the Physical Internet?2. Aim for a unified multi-scale conceptual framework Intra-Facility Inter-Center Network Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 26/72
  • What are the design aims of the Physical Internet?2. Aim for a unified multi-scale conceptual framework Intra-Site Inter-Facility Network Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 27/72
  • What are the design aims of the Physical Internet?2. Aim for a unified multi-scale conceptual framework -transits & -hubsIntra-CityInter-SiteNetwork Toward -enabled sustainable city logistics Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 28/72
  • What are the design aims of the Physical Internet?2. Aim for a unified multi-scale conceptual framework Québec, CanadaIntra-State -transits & -hubs Inter-City Network North eastern states, U.S.A. Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 29/72
  • What are the design aims of the Physical Internet?2. Aim for a unified multi-scale conceptual framework Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 30/72
  • What are the design aims of the Physical Internet? 3. Aim for webbed reliability and resilienceThe overall Physical Internet network of networks should warrant its own reliabilityand that of the physical objects flowing through it Network webbing and the multiplication of nodesshould 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 automatically as possible Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 31/72
  • What are the design aims of the Physical Internet? 3. Aim for webbed reliability and resilience The Physical Internet’s actors, movers, routes, nodes andflowing containers should interact in synergy to guarantee: – The integrity of physical objects encapsulated in -containers – The physical and informational integrity of -containers, -movers, -routes and -nodes – The informational integrity of -actors (humans, software agents) – The robustness of client-focused performance in delivering and storing -containers. Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 32/72
  • What are the enabling constituents of the Physical Internet? 4. Encapsulate merchandises in world-standard green modular containers• Merchandise is unitized as content of a -container and is not dealt with explicitly by the Physical Internet• Modular dimensions from cargo container sizes down to tiny 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 identification, routing and maintaining• Various usage-adapted structural grades• Conditioning capabilities (e.g. temperature) as necessary• Sealable for security purposes Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 33/72
  • What are the enabling constituents of the Physical Internet?-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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 34/72
  • What are the enabling constituents of the Physical Internet? -Containers designed for the Physical Internet Easy to load, unload, handle, store, transport, seal, snap, interlock, construct, dismantle, panel, compose and decompose Composi on Decomposi onReference: 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 35/72
  • What are the enabling constituents of the Physical Internet? Key features of -containers Securable Traceable, Routable Snappable Easy-to-dismantle Reusable RecyclableOriginal drawing by Eric Ballot, Mines ParisTech,2011-06-27, adapted by Benoit Montreuil Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 36/72
  • What are the enabling constituents of the Physical Internet? 5. Evolve from material to -containertransport, handling & storage means and systems -container moving and storage means and systems, with innovative technologies and processes exploiting the characteristics of -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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 37/72
  • What are the enabling constituents of the Physical Internet? 5. Evolve from material to -container transport, handling & storage means and systems-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 software systems for tracking and interfacing with the containers – Monitor and protect the integrity of -containers – Secure the containers to the desired level – Provide an open live documentation of their specified performance and capabilities and of their demonstrated performance and capabilities, updated through ongoing operations This applies in currently-labeled distribution centers, crossdocking centers, train stations, multimodal hubs, seaports, airports, and so on Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 38/72
  • What are the enabling constituents of the Physical Internet? 6. Exploit smart networked containers embedding smart objects Exploiting as best as possible the capabilities of smart -containersconnected 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 39/72
  • Physical Internet and the Internet of Things  The Internet of Things is about enabling ubiquitous connection with physical objects equipped with smart connective technology (RFID, GPS, Internet, etc.), making the objects ever smarter and enabling distributed self- control of objects through networks  The Physical Internet is to exploit as best as possible the Internet of Things to enable the ubiquitous connectivity of its -containers and -systemsImage: http://www.globetracker.biz/GlobeTracker/News.asp Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 40/72
  • What are the targets of the Physical Internet? 7. Activate and exploit an open global mobility webFrom 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 40 Oklahoma City Distance travelled one-way: 5030 km 5030 km 40 Amarillo Drivers: 1 17 40 Albuquerque Trucks: 1 17 Trailer: 1 1 40 Flagstaff One-way driving time (h): 48 51+ 40 Needles Return driving time (h): 48+ 51+ Barstow 15-10 Total time at transit points (h): 0 9 Los Angeles Total trailer trip time from Quebec to LA (h): 120 60+ Total trailer trip time from LA to Quebec (h): 120+ 60+ Multi-segment travel Total trailer round trip time (h): 240+ 120+ 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 41/72
  • What are the targets of the Physical Internet?7. Activate and exploit an open global mobility webTransportation between nodes + Handling within nodes : About Moving Objects An interconnected set of open unimodal & multimodal hubs, transits & portsAir route Road Open π-PortMaritime route Highway Open multimodal π-hub & π-transit zone Railroad Open unimodal π-hub & π-transit zone Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 42/72
  • V12 C8 B1 7. Activate and exploit an V8 C5 C1 B2 B3 open global mobility web C6 B4 B5 V13 C9 C7 B6 C3 B7 B8 -transit sites V6 C4 C2 B9 B10 allowing distributed : π-containers multi-segment transport : π-carrier through the Physical : π-vehicle : π-bay Internet Status of ! -car r ier s cur rently in ! -tr ansit" I ncoming deposit Outgoing pickup estimation ! -car r ier ! -bay ! -vehicle T ime ! -vehicle T ime (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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 43/72
  • Ocean, Sea or River Water 7. Activate and exploit an open global mobility web Road-Water -hub designed for enabling distributed multi-segment intermodal transport of -containers through the Physical Internet RoadReference: 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 44/72
  • What are the targets of the Physical Internet? 8. Activate and exploit an Open Global Supply Web An open supply web composed of an open distribution web coupled to an open realization web enabling producers, distributors and retailers to dynamically deploy their -container-embedded products in multiple geographically dispersed centers, realizing and deploying them for fast, efficient and reliable response delivery to distributed stochastic demand for their products, services and/or solutions Enabling Physical Equivalents of Intranets, Virtual Private Networks, Cloud Computing and Cloud StorageReferences: 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 International Symposium on Supply Chain Management, Conference Toronto, Canada, October 28-30, 2009Montreuil, B., Hakimi, D. , B. Montreuil, O. Labarthe, ”Supply Web Agent-Based Simulation Platform” Proceedings of the 3rd International Conference on Information Systems, Logistics and Supply Chain Creating value through green supply chains, ILS 2010 – Casablanca (Morocco), April 14-16<. Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 45/72
  • What are the targets of the Physical Internet? Open Distribution Web About Deploying Objects An interconnected set of open warehouses and distribution centersPort Road Open π-PortMaritime route Railroad Open π-store & π-distributor zoneAir route Highway Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 46/72
  • 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 USAReference: Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 47/72
  • 1 3Factories: 4Firm dedicated DCs: 16D2C max: 3 mean: 1,75F2D max: 9 mean: 3,92 2 4I ndependent Factory: 1 Factory: 1 Factory: 1 Factory: 1private Firm dedicated DCs: 4 Firm dedicated DCs: 4 Firm dedicated DCs: 4 Firm dedicated DCs: 4 D2C max: 3 mean: 1,73 D2C max: 3 mean: 1,78 D2C max: 3 mean: 1,75 D2C max: 3 mean: 1,73supply networks F2D max: 8 mean: 4,11 F2D max: 7 mean: 3,00 F2D max: 7 mean: 3,69 F2D max: 9 mean: 4,88Shared supply web Shared supply webwith independently with jointly 1 1implemented DCs 3 3 implemented DCs Firm dedicated factories: 4 Firm dedicated factories: 4 Firm dedicated DCs: 0 Firm dedicated DCs: 0 2 2 Group shared DCs: 16 Group shared DCs: 3 D2C max: 3 mean: 1,08 4 4 D2C max: 3 mean: 1,48 F2D max: 9 mean: 4,36 F2D max: 10 mean: 4,39 Open supply web 1 Firm dedicated factories: 4 with a high density of open DCs Firm dedicated DCs: 0 3 Group shared DCs: 0 available to many other clients Open DCs used: 60+ 2 Inter-region transport induced lead times 4 D2C max: 0 mean: 0,00 F2D: Factory to DC lead time F2D max: 12 mean: 4,75 D2C: DC to client region lead time Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 48/72
  • What are the targets of the Physical Internet? Open Realization Web About making, assembling, personalizing & retrofitting objects An interconnected set of open production, personalization & retrofit centers, indeed of open factories of any typePort Road Open π-factory zoneMaritime route RailroadAir route Highway Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 49/72
  • What are the targets of the Physical Internet? Open Supply Web The union of open distribution web & open realization webPort Road Open π-PortMaritime route Railroad Open π-store & π-distributor zoneAir route Highway Open π-factory zone Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 50/72
  • What are the targets of the Physical Internet? Open Supply Web Supply network 2 + + Supply Open supply web network 1 = = exploited by 1 and 2 Supply ≠vs Web 1U2Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked operations, Proc. of SOHOMA 2011 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 51/72
  • 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 Firm dedicated DCs: 0Open supply web Group shared DCs: 0with a high density of open DCs Open DCs used:available to many other clients 60+ Mean DC-to-region lead time: 0and shared factories among the four firms Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 2 Max factory-to-DC lead time: Firm dedicated factories: 4 0 Group shared factories: 0 Open supply web Open factories used: with a high density of 64+ Firm dedicated DCs: 0 open distribution and production centers Group dedicated DCs: 0 available to many other clients Open DCs used: 64+ Mean DC-to-region lead time: 0* Inter-region transport induced lead times Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 0 Max factory-to-DC lead time: 0 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 52/72
  • What are the targets of the Physical Internet? Open Logistics Web The union of Open Mobility Web and Open Supply WebPort Air route Open multimodal π-hub & π-transit zoneMaritime route Road Open unimodal π-hub & π-transit zone Open π-PortHighway Railroad Open π-store & π-distributor zone Open π-factory zone Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 53/72
  • Open Realization web About making, assembling, personalizing & retrofitting objects An interconnected set of open production, personalization & Open Supply retrofit centers, indeed of Web open factories of any type The union of open distribution Open Distribution web web & open Open About Deploying Objects realization web Logistics An interconnected set of open Web warehouses and distribution centers The union of Open Mobility Web and Open Supply Web Open Mobility Web Transportation between nodes + Handling within nodes : About Moving Objects An interconnected set of Open Unimodal & Multimodal Hubs, Transits & PortsPort Road Open π-PortMaritime route Railroad Open π-factory zone Open multimodal π-hub & π-transit zoneAir route Highway Open π-store & π-distributor zone Open unimodal π-hub & π-transit zone Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 54/72
  • How can stakeholders help the Physical Internet thrive? 9. Deploy capability certifications 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 securitySuch 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 55/72
  • How can stakeholders help the Physical Internet thrive? 9. Deploy capability certifications and open performance monitoringMulti-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 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 56/72
  • How can stakeholders help the Physical Internet thrive? 10. 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 containerizedReference: Seliger G., “Sustainability in Manufacturing - Recovery of Resources in Product and Material Cycles” (Ed. by Günther Seliger, Sringer Verlag, 2007 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 57/72
  • How can stakeholders help the Physical Internet thrive?10. Design products fitting containers with minimal space waste Product dimensions adapted to the standard container dimensions – So that the packaged product fits in a small footprint container 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 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 Products having to move through the Physical Internet should be as functionally dense as possible when in the containers – Functional density of an object can be expressed as the ratio of its useful functionality over the product of its weight and volume Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 58/72
  • How can stakeholders help the Physical Internet thrive? 11. Minimize physical moves and storages by digitally transmitting knowledge and materializing products as locally as possible through the open realization 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 toever 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 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 59/72
  • How are business and the Physical Internet synergizing each other? 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 -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? Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 60/72
  • How are business and the Physical Internet synergizing each other? 12. Stimulate business model innovation Remunerating the Players In the Digital Internet, the transmission of information is remunerated mostly through bundled flat fees due to the quasi nil marginal costs 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 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 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 61/72
  • How are infrastructures and the Physical Internet synergizing each other?13. Enable Open Infrastructural Innovation Systemic coherence and means interoperability must enable the transparent usage of heavy handling, storage and transport means currently existing or to come in the future, that are currently so hard to use,reducing their potential positive environmental impact The Physical Internet homogeneity in terms of container modules encapsulating objects should allow a much better utilization of means, thus increasing the capacity of infrastructures by the exploitation of standardizations, rationalizations and automations through currently unreachable innovations Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 62/72
  • FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives in line with the Physical Internet http://www.ilookforwardto.com/2010/12/foodtubes-really-fast-food-delivered-in-a-physical-Internet-of-underground-pipes.html http://www.cargocap.com/content/what-is-cargocap Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 63/72
  • Key Features of the Physical Internet Vision 1. Aim toward universal interconnectivity 2. Aim for a unified multi-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. Activate and exploit an open global mobility web 8. Activate and exploit an open global supply web 9. Deploy capability certifications and open performance monitoring 10. Design products fitting containers with minimal space waste 11. Minimize physical moves and storages by digitally transmitting knowledge and materializing products as locally as possible 12. Stimulate business model innovation 13. Enable open infrastructural innovationMontreuil 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 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 64/72
  • Physical Internet addressing logistics inefficiency and unsustainability symptoms Key Features of the Physical Internet 1 2 3 4 5 6 7 8 9 10 11 12 13 Exploit smart networked containers embedding Design products fitting containers with minimal Activate and exploit an open global supply web Evolve from material to container handling & Encapsulate merchandises in world-standard Activate and exploit an open global mobility materializing products as locally as possible Aim for webbed reliability and resilience of Minimize physical moves and storages and Deploy capability certifications and open Aim for a unified multi-scale conceptual Aim toward universal interconnectivity Enable open infrastructural innovation Stimulate business model innovation green modular containers performance monitoring Inefficiency and unsustainability storage systems smart objects space waste framework networks symptoms web 1 We are shipping air and packaging 2 Empty travel is the norm rather than the exception 3 Truckers have become the modern cowboys Products mostly sit idle, stored where unneeded, yet 4 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 Products unnecessarily move, crisscrossing the 8 world Fast and reliable intermodal transport is still a dream 9 or a joke Getting products in, through and out of cities is a 10 nightmare 11 Networks are neither secure nor robust 12 Smart automation and technology are hard to justify 13 Innovation is strangled Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 65/72
  • Realizing the VisionEvolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 66/72
  • The Physical Internet Global systemic sustainable vision stimulating and aligning action around the worldIndividual initiatives by businesses, industries and governments are necessary but are not sufficient There is a need for a macroscopic, holistic, systemic vision offering a unifying, challenging and stimulating framework There is a need for an interlaced set of global and local initiatives 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 Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 67/72
  • Physical Internet Implementation Progressive Deployment, Cohabitation and Certification 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 cohabitation and of progressive deployment, propelled by the actors integrating gradually the Physical Internet waysand finding ever more value in its usage and exploitation Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 68/72
  • Physical Internet Implementation Progressive Deployment, Cohabitation and CertificationA smooth transition starting with rethinking and retrofitting phases, then moving toward more transformative phasesThe Physical Internet can constitute itself progressively through the multi-level certification of: – Protocols – Containers – Handling and storage technologies, distribution centers, production centers, train stations, ports, multimodal hubs – Information systems (e.g. reservation, smart labels, portals) – Urban zones and regions, inter-country borders Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 69/72
  • 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 revolutionized the digital world, as an underlying metaphor for steering innovation in the physical sphere The outlined Physical Internet does not aim to copy the Digital Internet, but to inspire the creation of a bold systemic wide encompassing visioncapable of providing real efficient and sustainable solutions to the problems created by our past and current ways and by our vision toward which we should aim Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 70/72
  • Conclusion (2/2) 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 initiatives and projects so as to really influence in a positive way our collective future This requires a lot of collaboration between academia, industry and governments across localities, countries and continents Your help is welcome Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 71/72
  • Questions and comments are welcome Questions et commentaires sont les bienvenus Fragen und Kommentare sind willkommenLas preguntas y los comentarios son bienvenidos Benoit.Montreuil@cirrelt.ulaval.ca www.physicalinternetinitiative.org Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval 2012-04-05, 72/72