Digitization of the transport industry

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A talk about the digital revolution and its effects in the freight industry.

A talk about the digital revolution and its effects in the freight industry.

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  • 1. Digitization of the transport industry More than digital pieces of paper ! ! Per Olof Arnäs Chalmers @Dr_PO per-olof.arnas@chalmers.se about.me/perolofarnas
  • 2. CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on
  • 3. 1989 CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on
  • 4. 1989 Map on the wall with pushpins Delivery notes (3 carbon sheets) Radio Telephone Pens in various colours CC-­‐BY  Per  Olof  Arnäs Prices, phone numbers etc. Technology  Management  and  Economics   Logis4kcs  and  Transporta4on Calculator Cardfile of customers, tank sizes etc.
  • 5. 1989 Ca 100 customers in west Sweden 6 tanker trucks (7 partitions per vehicle) Products: Gasoline 95 Gasoline 96 Gasoline 98 Diesel Diesel, colored 8-10 Pricing (yesterday’s orders) 10-12 Call and receive tomorrow’s orders 13-17 Planning A FULL TIME JOB! CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on
  • 6. Digitization of the transport industry More than digital pieces of paper ! ! Per Olof Arnäs Chalmers @Dr_PO per-olof.arnas@chalmers.se about.me/perolofarnas
  • 7. The Internet first became available for Swedish consumers around 1993 + = A (bad and expensive) mix between Teletext and the Yellow Pages Not very pretty Few people with computers
  • 8. 15 years later, in 2008, Google Flu Trends was launched Based on what people google and where their computer is located www.google.org Ten days ahead of the official flu tracker
  • 9. How  will  we  use  the  technology  in  10  years? lm a st o We have no idea. ! The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
  • 10. How  will  we  use  the  technology  in  10  years? lm a st o We have no idea. ! ...and neither does she, but she will be dissatisfied with stuff that we think are pure science fiction and almost magic. The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
  • 11. The Transport industry 3 things: Per Olof Arnäs Carbon-free transport by Stéfan on Flickr
  • 12. …physical 3d boxes by crystaljingsr on Flickr
  • 13. …public CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on Traffic Jam by Giorgio Minguzzi on Flickr
  • 14. …analogue 542 miles by Jason on Flickr CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on
  • 15. Development of transportation technology has been fairly linear …for the last 5500 years Per Olof Arnäs Stage Coach Wheel by arbyreed on Flickr
  • 16. inning beg We are in the middle of a gigantic exponential development curve
  • 17. A new global eco system where new types of, knowledge based, industries compete with traditional ones
  • 18. Startups don’t compete with airlines... by purchasing a bunch of hiring a bunch of and locking up a bunch of planes pilots terminals at airports. Miniature Airport by disparkys on Flickr http://bryce.vc/post/18404303850/the-problem-with-innovation
  • 19. Startups don’t compete with airlines... by purchasing a bunch of hiring a bunch of and locking up a bunch of planes pilots terminals at airports. Startups compete with airlines by inventing videoconferencing. Miniature Airport by disparkys on Flickr (CC-BY,SA) http://bryce.vc/post/18404303850/the-problem-with-innovation
  • 20. Addicted to dead trees
  • 21. Physical flow Original? Copy? Ownership Consignor Consignee
  • 22. In Search Of Lost Time by bogenfreund on Flickr The biggest problem in transportation is time. There is not enough of it. Ever.
  • 23. Time horizons Strategic Tactical Operational Prognosis Realtime! We are approaching this boundary …and we are starting to move past it!
  • 24. Digitization fronts Goods Vehicle Business process Infrastructure
  • 25. Digitization fronts Goods Vehicle Order handling   Driver support   Vehicle economics Barcodes   RFID   Sensors ERP systems   TMS systems   E-invoices   Cloudbased services RDS-TMC   Road taxes   Active traffic support Business process Infrastructure
  • 26. What happens when access to real-time data increases? Strategic Tactical Operational Prognosis Infrastructure Business processes Vehicles Goods not quite clear on the concept by woodleywonderworks on Flickr (CC-BY)
  • 27. t a iz it ig D n io Incre asing good s volu mes Opportunities New techn olog y al tic oli P st re te in Quad Aces by fitzsean on Flickr
  • 28. We produce vast amounts of data Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr
  • 29. All the time. Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr
  • 30. Gartners Hype Cycle for Emerging Technologies Augmenting humans with technology Machines better understanding humans and the environment Machines replacing humans Humans and machines working alongside each other Humans better understanding machines Machines and humans becoming smarter Source: Gartner August 2013 http://www.gartner.com/newsroom/id/2575515
  • 31. Gartners Hype Cycle for Emerging Technologies Source: Gartner August 2013 http://www.gartner.com/newsroom/id/2575515
  • 32. Gartners Hype Cycle for Emerging Technologies ? Source: Gartner August 2013 http://www.gartner.com/newsroom/id/2575515
  • 33. So… What are we doing about all this?
  • 34. Northern LEAD 
 Logistics Research Centre Founded by: Chalmers University of Technology University of Gothenburg Logistics and Transport Society LTS
  • 35. What we do Northern LEAD coordinates and supports logistics research at Chalmers and University of Gothenburg in order to increase volume, quality and 
 relevance of the research stairs by Denis Jacquerye on Flickr
  • 36. Tomorrow’s logistics. We are finding the answers. Around 70 researchers Five core research groups Collaboration between Chalmers and University of Gothenburg Research centre for sustainable logistics solutions Organises, facilitates, disseminates highly relevant logistics research
  • 37. This high quality research contributes to … a sustainable logistics development …gives companies competitive advantages …and benefits society Green Leaf of a Bio Plant in Nature by epSos .de on Flickr
  • 38. Five core research groups Industrial marketing & purchasing Logistics & Transport Physical Distribution Professors Visiting Professors Associate Professors Post docs Faculty PhD students Total 10 6 5 6 14 32 73 Production Logistics Optimization
  • 39. Challenges and trends Environmental impact Focused areas Logistics and Production Networks Outcomes for policy and business Long Distance Transport Resource limitations Urban Transport Demographic changes Manufacturing and retail revolution Complexity and structural flexibility Volatility and risk Purchasing of transport Information, planning and control Service development in networks Intermodality Resource utilisation Measurements and measuring Thought leadership through high quality research and innovation
  • 40. Project proposal: Smart access/guidance control
  • 41. Project proposal: Smart access/guidance control
  • 42. Project proposal: Smart access/guidance control
  • 43. Project proposal: Smart access/guidance control
  • 44. Project proposal: Smart access/guidance control
  • 45. Project proposal: Smart access/guidance control
  • 46. Project proposal: Smart access/guidance control
  • 47. haring Data s Exp del andi iver ng y fr ont ic am uts yn tc D or sh Foliate d transp ortatio n netwo rk nd by Sta ents shipm S me o r he ot Realtime applications nt V2I Intellige ication ommun c Super Cat by Photo Extremist on Flickr oon lat g P kin par
  • 48. Not all ideas age with grace
  • 49. Someone must do the work
  • 50. Not everyone will want to adopt new things…
  • 51. …or change habits
  • 52. From order to invoice Basic data From/To/What/When Owner: the customer Resource allocation What vehicle?
 Owner: Traffic controller Cargo information Loaded amount Owner: Supplier Proof of Delivery Time/date/signature Owner: Driver Pricing Owner: Financial dept. Enough information to create invoice All of these steps cost money!
  • 53. An increase in the number of orders lead to increased cost Total cost for administration of all orders Goal: De-couple the dependecy between administative cost and order volume Handle exceptions – not transactions! Number of orders per year
  • 54. 2 hours 4 hours 2 hours 1989:A FULL TIME JOB! CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on
  • 55. 0 hours 1-2 hours 0 hours 2013: TWO HOURS. MAX. CC-­‐BY  Per  Olof  Arnäs Technology  Management  and  Economics   Logis4kcs  and  Transporta4on
  • 56. How  will  we  use  the  technology  in  10  years? so e m We have no idea. ! ! Per Olof Arnäs per-olof.arnas@chalmers.se about.me/perolofarnas @Dr_PO Slides published on slideshare.net/poar The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
  • 57. Kolla gärna in min crowdsourcade logistikblogg Logistikfokus.se (Sveriges första och troligtvis enda)