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Physical internet manifesto eng version 1.11.1 2012-11-19
 

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    Physical internet manifesto eng version 1.11.1 2012-11-19 Physical internet manifesto eng version 1.11.1 2012-11-19 Presentation Transcript

    • Physical Internet Manifesto Transforming the way physical objects are moved, stored, realized, supplied and used,aiming towards greater efficiency and sustainability Professor Benoit Montreuil Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center on Enterprise Networks, Logistics and Transportation Laval University, Québec, Canada Version 1.11.1: 2012-11-19 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 1/76
    • Acknowledgements The Physical Internet Manifesto has greatly benefited from the contributions of esteemed colleagues and doctoral studentsAmerica CIRRELT Research Center: • Teodor Crainic - UQAM • Michel Gendreau - Université de Montréal • Driss Hakimi, Mustapha Lounès, Jacques Renaud, Helia Sohrabi - Université Laval CICMHE, College-Industry Council for Material Handling Education: • Russ Meller – CELDi, University of Arkansas • Kevin Gue & Jeff Smith – Auburn University • Kimberley Ellis –CELDi, Virginia Tech • Leon McGinnis – Georgia Tech • Mike Ogle – MHIAEurope • Éric Ballot, Frédéric Fontane, Shenle Pan, Rochdi Sarraj – Mines ParisTech • Rémy Glardon – EPFL • Rene De Koster – Erasmus University • Olivier Labarthe – IUT Bordeaux Montesquieu • Detlef Spee – Fraunhofer Institute for Material Flow and Logistic Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 2/76
    • Manifesto Outline Global Logistics Sustainability Grand Challenge Envisioning the Physical Internet Enabling a Logistics Web Toward Realizing the Vision Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 3/76
    • Sample of companies contributing to the Physical Internet Initiative Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 4/76
    • At face value, logistics seems to be doing great! Logistics is the backbone sustaining our lifestyleOriginal slide concept by Professor Russ Meller, CELDi, U. of Arkansas Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 5/76
    • At face value, logistics seems to be doing great! Logistics is the backbone sustaining eBusinessOriginal slide concept by Professor Russ Meller, CELDi, U. of Arkansas Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 6/76
    • At face value, logistics seems to be doing great! Container Logistics is the backbone sustaining the globalization of world tradeOriginal slide concept by Professor Russ Meller, CELDi, U. of Arkansas Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval 7 Québec, 2012-11-19, 7/76
    • Yet we have to face a harsh factLogistics inefficiency and unsustainability claim The way physical objects are moved, stored, realized, supplied and used throughout the world is economically, environmentally and socially inefficient and unsustainable Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 8/76
    • Why do we need to change ? Logistics inefficiency and unsustainability ECONOMIC Logistics: 5-15% burden on GDP of most countriesworldwide logistics costs grow faster than world trade ENVIRONMENT One of the heaviest greenhouse gas generators, energy consumers, polluters and materials wasters 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 European Commission: A Roadmap for moving to a competitive low carbon economy in Too often precarious logistic work conditions 2050, Office of the European Union, Brussels, 16p. (2011) Serveau, L.T. : Inventaire des émissions de polluants dans l’atmosphère en France. In: SECTEN, Citepa, Paris (2011) European Commission: EU energy and transport in figures. Statistical Pocketbook, (2009) Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 9/76
    • 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 10. Getting products in and out of cities is a nightmare 11. Logistics networks & supply chains are neither secure nor robust 12. Smart automation & technology are hard to justify 13. Innovation is 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 10/76
    • Logistics inefficiency & 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: 56,8% full when not empty; 42,6% average utilization 2. Empty travel is the norm rather than the exception • Vehicles & containers often return empty, or travel extra routes to find return shipments (25% of travel), and 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 (very high turnover rate); Precarious family & social life, and personal health; in general, logistic operators and material handling personnel have similar precarious positions 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. Poorly / badly used production and storage facilities • Most businesses invest in storage and/or production facilities that are lowly used most of the times, or yet badly used, dealing with products which would better be dealt elsewhere, forcing unnecessary travel Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval 11 Québec, 2012-11-19, 11/76
    • Logistics inefficiency & 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 required elsewhere; in the fresh food industry, products are wasted at an alarming rate: 12% in transit, 25% at retailRusting new cars in disused airfield 7. Products do not reach those who need them the most • This is specially true in less developed countries and disaster-crisis zones 8. Products unnecessarily move, crisscrossing the world • Products commonly travel thousands of miles-kilometers which could have been avoided by making or assembling it much nearer to point of use 9. Fast & reliable multimodal transport is still a dream  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 10. Getting products in, through and out of cities is a nightmare  Most cities are not designed and equipped for easing freight transportation, handling & storage, making the feeding of businesses and citizens in cities a nightmare Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 12/76
    • Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard 11. Logistics networks & supply chains 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 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 13/76
    • Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets Environmental Economical Societal Inefficiency and unsustainability symptoms 1 We are shipping air and packaging 2 Empty travel is the norm rather than the exception 3 Truckers have become the modern cowboys 4 Products mostly sit idle, stored where unneeded, yet so often unavailable fast where needed 5 Production and storage facilities are poorly used 6 So many products are never sold, never used 7 Products do not reach those who need them the most 8 Products unnecessarily move, crisscrossing the world 9 Fast & reliable multimodal transport is a dream 10 Getting products in and out of cities is a nightmare 11 Logistics networks & supply chains are neither secure nor robust 12 Smart automation & technology are hard to justify 13 Innovation is strangled Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 14/76
    • The Global Logistics Sustainability Grand Challenge The Global Logistics Sustainability Grand Challenge Design a system to move, store, realize, supply and use physical objects throughout the world in a manner that is economically, environmentally and socially efficient and sustainableMontreuil B. (2011) “Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge,” Logistics Research, 3(2-3), 71-87, 2011. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 15/76
    • Eliciting the Overall Goal Toward Global Logistics Efficiency and SustainabilityEnvironmental goalSustainably reduce by an order of magnitude the logistics-induced globalgreenhouse gas emission, energy consumption, pollution & materials wasteEconomic goalSustainably reduce by an order of magnitudethe global economic burden of logisticswhile unlocking huge gains in business productivitySocietal goalSustainably and significantly increase the quality of lifeof the logistics workers and the world’s populationby improving the timely accessibility and mobility of physical objects Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 16/76
    • 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 17/76
    • Meeting the IT Grand ChallengeBuilding Upon the Information Superhighway MetaphorBefore: millions of unconnected computers – inefficient and unsustainable After: millions of interconnected servers and computers to form the “Information Superhighway” Key Enabler: transmission of formatted data packets through heterogeneous equipment respecting the TCP/IP protocol Result: The Internet, the Web, the Mobile, the Apps,… An open and interconnected distributed network infrastructure Forever transforming industry, economy, culture and society at large Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 18/76
    • 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, 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 19/76
    • Exposing Key Features of the Physical Internet VisionEvolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 20/76
    • The Physical Internet (PI, π) The Physical Internet is an open global logistics system founded on physical, digital and operational interconnectivity through encapsulation, interfaces and protocols The PI enables an efficient, sustainable, adaptable and resilient Logistics WebMontreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 21/76
    • Simplified Mental Image of the Physical Internet • Open market for goods transportation (eBay-style) • Handles only “black box” modular containers • Open and shared transportation and distribution networks • Vast community of usersSeamless modular container consolidation in the Physical Internet • Supplier certification and B. Montreuil & C. Thivierge, 2011 ratings-by-users to drive logistics performance Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 22/76
    • 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 Logistics Web Physical Internet Smart Physical PacketsOriginal schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 23/76
    • Universal InterconnectivityHigh-performance logistic centers, movers and systems, making it seamless, easy, fast, reliable and cheap to interconnect physical objects through modes and routes, with an overarching aim toward universal interconnectivity Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 24/76
    • Encapsulation The Physical Internet does not deal directly with physical goods It requires theirstandardized encapsulation, such as data packets in the Digital Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 25/76
    • Physical encapsulationPhysically encapsulate goods in π-containers that are modular, ecofriendly, smartand standardized worldwide Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 26/76
    • Physical encapsulation of goods in π-containers Modular, ecofriendly, smart & standardized worldwide• Merchandise is unitized as content of a π-container and is not dealt with explicitly by PI• Modular dimensions from cargo container sizes down to tiny sizes• Conceived to be easily flowed through various transport, handling & storage modes & means• Easy to handle, store, transport, snap, interlock, load, unload, construct and dismantle, compose and decompose• Light, made of environment friendly materials, with minimal off-service footprint• Smart tag enabled, with sensors if necessary: proper identification, routing and maintaining• Various usage-adapted structural grades• Conditioning capabilities as necessary (e.g. temperature)• Sealable for security purposes Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 27/76
    • Physical encapsulation of goods in π-containers World standard modular dimensions and fixtures Illustrative potential modular dimensions YConceptual design by Benoit Montreuil and Marie-Anne Côté X ZCIRRELT, Université Laval, Québec, Canada, 2012 0,12 m 0,1 m 0,24 m 0,2 m 0,36 m 0,3 m 0,48 m 0,4 m 0,6 m 0,5 m 0,6 m 1,2 m 1,2 m 2,4 m 2,4 m 3,6 m 3,6 m 4,8 m 4,8 m 6m 6m 12 m 12 m Conceptual design illustrating É. Ballot, B. Montreuil, R.D. Meller the dimensional modularity of π-containers The illustrated π-container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 28/76
    • Physically encapsulation of goods in π-containers Easy to compose into composite containers, then to decomposeConceptual design by Benoit Montreuil and Marie-Anne CôtéCIRRELT, Université Laval, Québec, Canada, 2012 Conceptual design illustrating the composition functionality of π-containers The illustrated π-container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 29/76
    • The spatial impact of modular encapsulation Consumer Product Goods 258 case sizes Company 494 products 268 shelf packages At the case level, there is Using only of modular a net increase of 10% dimensions (<15)Here, no change inthe shape of products.The number of products by caseis allowed to vary by + or - 10%. At the pallet level,Experiment limited to cases ratherthan π-containers to focus on modularity there is a net savings of 10%!Meller, R. D., Lin, Y.-H., and Ellis, K. P., “The Impact of Standardized Metric Physical Internet Containers on the Shipping Volume of Manufacturers,”in Proceedings of the 14th IFAC Symposium on Information Control Problems in Manufacturing, Bucharest – Romania, (2012). Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 30/76
    • Design products fitting containers with minimal space waste Products designed and engineered to minimize the load and burden they generate on the Physical Internet, with their dimensions adapted to standard container dimensions, with maximal volumetric and functional density while containerized• Maximal volumetric and functional density while being in Physical Internet containers, extendable to their usage dimensions when necessary – Functional density of an object can be expressed as the ratio of its useful functionality over the product of its weight and volume• Only key components and modules have to travel extensively – Easy to be completed near point of use Source: guim.fr using locally available objects Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 31/76
    • Digital encapsulation Exploiting as best as possiblethe capabilities of smart π-containers connected to the Digital Internet and the World Wide Web,and of their embedded smart objects, for improving the performance as perceived by the clients and the overall performance of the Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 32/76
    • 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, sensors, 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 connectivityImage: http://www.globetracker.biz/GlobeTracker/News.asp of its π-containers and π-systems Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 33/76
    • Interfaces optimized foruniversal interconnectivity Physical & digital interfacesexploiting the characteristics of π-containersand standardized worldwide Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 34/76
    • Evolve from material to π-container transport, handling & storage means and systems π-containers moving and storage means and systems, A π-container π-movers equipped with innovative technologies and processes with wheels A fork-less lift snapped through exploiting the characteristics of π-containers exploiting its standard to enable their fast, cheap, easy and reliable the snapping and modular interfaces interlocking input, storage, composing, decomposing, functionalities of the π-container monitoring, protection and output through smart, sustainable and seamless π-conveyors automation and human handling In π-stores, contemporary racking can be used, however innovations in storage technologies exploiting the functional characteristics of modular π-containers In π-stores, A highly flexible plug-and-play π-conveyor are bound to be exploited exploiting the standard modular dimensions modular π-containers and interfaces of the π-containers can be stacked as in π-stores container port terminalsReference: 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 35/76
    • Logistics centers designed for the Physical Internet Transit Center facilitating the truck-to-truck transshipment of trailers along relays networks through the Physical InternetReference: Meller, R.D., B. Montreuil, C. Thivierge & Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Road-Based Transit Center, in Progress in Material Handling Research: 2012, MHIA,Charlotte, NC, to appear (2012). Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 36/76
    • Multimodal logistics centers Ocean, sea or river designed for the Physical Internet,enabling seamless, fast, cheap, safe, reliable, distributed, & multimodal transport and deployment of π-containers across the Physical Internet Physical Internet Road-Rail Hub Roadway References • Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research 2010, Edited by K. Gue et al., Material Handling Industry of America, 23 p. • Ballot É., B. Montreuil & C. Thivierge (2012) Functional Design of Physical Internet Facilities: A Road-Rail Hub, in Progress in Material Handling Research 2012, Edited by B. Montreuil et al., Material Handling Industry of America, 34 p. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 37/76
    • Logistics centers designed for the Physical Internet Enabling seamless, fast, cheap, safe, reliable, & distributed, multimodal transport and deployment of π-containers across the Physical Internet Road Hub of π-containers truck-to-truck crossdocking along a network of relays through the Physical InternetMontreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub,, in Progress in Material Handling Research: 2012, MHIA. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 38/76
    • Physical Internet Protocols Protocols optimized foruniversal interconnectivity regulating the multi-layer services of the Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 39/76
    • Standard Logistics Service Protocols Standardized multi-layered service architecture and protocols Open Logistics Interconnection ModelMontreuil B., E. Ballot & F. Fontane (2012). An Open Logistics Interconnection Model for the Physical Internet, Proceedings of INCOM 2012 Symposium, Bucharest, Romania, 2012/05/23-25. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 40/76
    • Deploy capability certificationsMulti-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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 41/76
    • Open Performance Monitoring Live open monitoring of really achieved performance of all π-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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 42/76
    • A Global System The Physical Internetis seamlessly applicable everywhere, at any scale Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 43/76
    • The Physical Internet: the same conceptual framework at any scaleIntra-center Inter-processor Network Intra-Faciilty Inter-Center Network Intra-Site Inter-Facilities Network Intra-City Inter-Site Intra-Continental Network Inter-City, Inter-State/Province Network Inter-Continental Worldwide Network Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 44/76
    • 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 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 45/76
    • Aim for webbed reliability and resilienceThe Physical Internet’s actors, movers, routes, nodes andflowing containers should interact in synergy to guarantee: – The integrity of physical objects encapsulated in π-containers – The physical and informational integrity of π-containers, π-movers, π-routes and π-nodes – The informational integrity of π-actors (humans, software 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 Logistics New Directions in Supply Chain Management, 2007 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 46/76
    • Enabling a Logistics WebThe purpose of the Physical Internet from a user perspective Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 47/76
    • From a user perspective, the Physical Internet aims to enable an efficient, sustainable, adaptable and agile Logistics Web Logistics Web Set of openly interconnected physical, digital, human, organizational and social actors and networks aiming to serve efficiently and sustainably the worldwide logistics needs of people, organizations, territories and societyMontreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 48/76
    • Physical Internet Manifesto, version 1.11Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 49/76
    • Enabling an open global mobility webFrom point-to-point or 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+ Transporting a trailer 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 50/76
    • Enabling an open global mobility webFrom point-to-point or hub-and-spoke transport to distributed multimodal transport Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 51/76
    • Illustrating Current Logistics Systems A small two-retailer two-manufacturer case Current Conceptual Networks Current Spatial FlowsAdapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 52/76
    • The Impact of Exploiting a Mobility Web Here limited to unimodal road transportCurrent Mobility Web P# : Plant; :Retail store; S# :Private distribution center P# : Plant; : Retail Store; : Open hub : Product flow : Road transport D# : Distribution center Travelled distance: -27% Fuel Consumption: -19% Average delivery time: +2% Maximum delivery time: -36% Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 53/76
    • Exploiting a Physical Internet Enabled Bimodal Mobility Web for the Consumer Goods Industry in France Road and rail transport seamlessly integrated into the PI backbone network Simulation based on product distribution flow to two top retailers in France, from their 100 top suppliers Current flows Physical Internet flows Physical Internet trafficPreliminary results using existing infrastructures, facilities, demand patterns and service levels Economical: From 4% to 26% overall cost saving Environmental: About 3 times better in terms of greenhouse gas emissions, by combining road-to-rail modal transfer and more efficient road transport Ballot É., B. Montreuil, R. Glardon (2012), Simulation de l’Internet Physique: controbution à la mesure des enjeux et à sa définition, PREDIT Research Report, France, June 2012, 96 p. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 54/76
    • 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 contractsThere are 535 000distribution centersin the U.S.A. onlyMost of them are used by a single companyMost companies use often a single DCand generally less than 20 DCsImagine the potentialif each company could deployits products through a open webincluding 535 000 open DCs in the USA Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 55/76
    • Dynamically Deploying Stock Across the Distribution Web for Efficient, Fast & Agile Customer Response Current private system Proposed open system Client order P# : Plant : Retail store S# : Private distribution center O# : Open distribution center Physical flowAdapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 56/76
    • The Added Value of Exploiting a Distribution Web When Already Exploiting a Mobility WebMobility Web Mobility Web + Distirbution Web P# : Plant; : Retail Store; : Open hub P# : Plant; : Retail Store; : Open hub D# : Distribution center : Open distribution center Travelled distance: -23% Fuel consumption: -29% Average delivery time to store: -79% Maximum delivery time to store: -71% Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 57/76
    • The Impact of Exploiting a Logistics Web Integrating Mobility and Distribution WebsPrivate Logistics Networks -42%; -44% -19%; -27% Mobility Web Fuel; Travel -29%; -23% Mobility Web + Distribution Web +16%; +15%[Average; Max]Delivery-Time-to-Store -82%; -74% -79%; -71% Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 58/76
    • Open Global Realization Web Minimize physical moves and storages by digitally transmitting knowledge and materializing products as locally as possible through the open realization web Exploiting extensively 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 59/76
    • Dynamically Outsourcing Product Realization to Certified Open Centers across the Realization Web to Enable Efficient & Agile Near Point-of-Use Product Realization Current realization network Alternative realization network Alternative realization network centered around an integrated exploiting realization web exploiting realization webmanufacturing & assembly plant for outsourcing assembly for outsourcing manufacturing & assembly OA OA OA OA OA OA OM OM OA OA OA OA OA OA OM M+A OA M OA OA OA OM OA OA OA OA OM OA OA OA OM OA OA OA OA OA OA OA Current OM Current snapshot snapshot Client M+A Integrated manufacturer + assembler OA Currently exploited open assembler OM Currently exploited open manufacturer M Manufacturer OA Currently unexploited open assembler OM Currently unexploited open manufacturer Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 60/76
    • Open Supply WebSource: 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 61/76
    • Exploiting a Supply Web Each supplier may for example sign a guaranteed X-time accessibility Tier-2 contract with each client, keeping responsibility for product delivery, deployment and realization Tier-1 Supply Web Tier-0 Realization Web Client has minimal stock Distribution WebEach client has access to a global pool Supplier leverages its clientsof π-certified suppliers and vice-versa Mobility Web for deployment pooling Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 62/76
    • A Supply Web with Myriads of π-Certified Suppliers, Open & Global Access, Standardized Contracts, Open Monitoring and Supplier RatingsMulti-tiered,from raw materialsto final productsEach exploitingthe Mobility,Distribution & Realization webs Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 63/76
    • From retail/rental networks feeding isolated clients To interconnected users exploiting an open Service Web Getting access as needed to product functionality, from product owners-usersand rentals, buying products in lesser percentage Supported by the other Logistics Web constituents Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 64/76
    • Physical Internet induced innovation π-Enabling Innovation π-Enabled Innovation Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 65/76
    • Physical Internet Induced Technological π-Enabling Innovation technologies π-Enabled technologiesFlex Conveyor from KIT/Gebhardt (Kai Furmans) GridFlow from Auburn University (Kevin Gue) Montreuil, B., Meller, R.D., et al., “Designing Facilities for the Physical Internet,” Material Handling Industry of America, Charlotte, NC, 2010-2012. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 66/76
    • Physical Internet inducedbusiness model innovation π-Enabling business Innovative business models models for commercializingPhysical Internet enabled offers by π-Enabled various parties, business addressing stakeholder revenue, models contracting, liability & insurance What are to be the π-enabled equivalents of Amazon, eBay and Google? How are the manufacturers, distributers, retailers, transporters, logistics providers and solutions providers going to evolve so as to best exploit the Physical Internet? Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 67/76
    • Physical Internet Induced Infrastructural Innovation π-Enabling The Physical Internet homogeneity in terms of infrastructures object encapsulation in π-containers should allow a much better utilization of modes & means, π-Enabled thus increasing the capacity of infrastructures infrastructures by the exploitation of standardizations, rationalizations and automations through currently unreachable innovations FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives whose implementation viability can be upgraded through alignment with the Physical Internethttp://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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 68/76
    • Realizing the VisionEvolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 69/76
    • 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 70/76
    • Physical Internet Implementation Progressive Deployment, Cohabitation and Certification The widespread development and deployment of the Physical Internetwill not be achieved overnight in a Big-Bang logic but rather in an ongoing logicof cohabitation and of progressive deployment, propelled by the actorsintegrating gradually the Physical Internet ways and finding ever more value in its usage and exploitation Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 71/76
    • 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 72/76
    • Conclusion 1/3The Physical Internet: An Instrument for Tackling the Grand Logistics Sustainability Challenge Exploiting the Internet metaphor for fostering a breakthrough logistics systemA commitment towards open universal interconnection of logistics services and resources An integrated holistic tackle on making more efficient and sustainable the way we move, store, realize, supply and use physical objects across the world A highly scalable Coopetition approach Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 73/76
    • Conclusion 2/3The Physical Internet : Not an Utopia, not a Big-Bang The Physical Internet builds on the network effect, getting ever more effective as it gathers more users It must gather critical mass, first exploiting existing infrastructures and means, then gradually fostering innovation. Even though it is to be ultimately global it will have to grow first in fertile domains, to be collaboratively supported by key leaders from industry, government and academia. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 74/76
    • Conclusion 3/3 The International Physical Internet Initiative: An Open Innovation Endeavor With this manifesto and its underlying research, a small step has been made towards meetingthe global logistics efficiency and sustainability grand challenge A lot more are needed to really shape this vision and, much more important, to give it flesh through real 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 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 75/76
    • Questions and comments are welcome,and especially collaborative project avenues Benoit.Montreuil@cirrelt.ulaval.ca www.physicalinternetinitiative.org Twitter: @physicinternet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 76/76