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www.sustainableroadfreight.org
The Physical Internet:
Is it all PI in the Sky
Dr Andrew Palmer
Centre for Sustainable Road Freight
SCL Event, Whittlebury Hall 30th September 2015
Centre for Sustainable Road Freight:
A Unique Collaboration…
OperationsTechnology
Policy
SMMT*
Low Carbon Vehicle
Partnership*
Cambridge University
Engineering Department
Internationally leading
capability in heavy
vehicle engineering
Heriot-Watt
University
A world leader
in logistics
CILT*
Department for
Transport *
Transport for
London*
* Advisory Committee Member
0
20
40
60
80
100
120
140
160
180
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
billioneuro
Over 10 years, Zero Improvement in
Road Freight Efficiency
% Load factor
% Empty truck (km)
% Road efficiency
The EU Vision
EU Transport Policy Vision (EC 2011):
 Reduce Europe's dependence on imported oil
 Cut carbon emissions in transport by 60% by 2050
 Modal shift: 30% off road by 2030 – 50 % by 2050
 Multi-modal: European corridor network (low carbon/green)
 CO2-free movement of goods in major urban centres by 2030
White Paper 2011: Roadmap to a Single European Transport
Area - Towards a competitive and resource efficient transport
system
Inefficiency and Unsustainability
Symptoms
Future Supply Chain 2016
• Global Commerce Initiative & Capgemini
• Joint work of 24 major FMCG companies
• New sustainable supply chain architecture:
collaborative warehousing and distribution
The Physical Internet
Source: Physical Internet Manifesto, Montreuil,B, 2012
Source: Gary Forger, MHI
In the USA
In China
ETP - ALICE
Optimal use of assets
and infrastructure
resources
Horizontal and
vertical pooling
of resources
Open
Integrated
networks
Modular logistic units
system
Create a more efficient, sustainable supply network by using Horizontal
and Vertical Collaboration & smoother supply chain interfaces
Visionenablers
Physical Internet
Secure information
sharing
ALICE themes
 Sustainable, safe & secure supply chains
 Corridors, hubs & synchromodality
 Information systems
 Collaboration between supply chains
 Urban freight
Alignment & convergence
leading to the physical internet
The ALICE Π movie
The ALICE Roadmap
PI is Predicted to Reduce Costs and
Emission Levels – and Reorganise Flows
π: Main Innovations
 The π container (“physical encapsulation”) and handling material
 Open market for transportation
 Standards logistics service protocols (OLI model)
 Interfaces between manufacturing and services
 Capability certification & performance monitoring
Optimised space Open networks &
pooled resources
Less network
complexity
Modular box
system
Modular dimensions from
cargo container size to tiny
Vision
Source: Physical Internet Manifesto, Montreuil,B, 2012
Standard Logistics Service Protocols
Source: Physical Internet Manifesto, Montreuil,B, 2012
Source: Physical Internet Manifesto, Montreuil,B, 2012
Towards an Effective Roadmap:
ICT Implications
Towards an Effective Roadmap:
Collaboration Factors
• Operational
 Synergy
 Products
 Transport
 Processes
• Corporate environment
 Culture
 Managerial philosophy
 Key people
 Environmental attitudes
• Collaboration climate
 Business objectives
 Level of trust
 Resources
• Components of collaboration
 Joint planning
 Communications/systems
 Financials
 Risk sharing
 Entry & exit rules
 Contracts
Conclusion
A lot more is needed to really shape this
vision and to give it flesh through real
initiatives and projects so as to positively
influence our collective future
The Physical Internet : Not a Utopia, not a Big-Bang
Source: Physical Internet Manifesto, Montreuil,B, 2012
More Information
www.etp-alice.org
www.physicalinternetinitiative.org
www.sustainableroadfreight.org
The Physical Internet:
Is it all PI in the Sky
Thank You
SCL Event, Whittlebury Hall 30th September 2015
Scope of the Decarbonisation Effort
Logistics System Design
Vehicle Maintenance
Driving
Vehicle Loading
Vehicle Routing and Scheduling
Vehicle
Technology
Supply Chain Structure
emissions per
vehicle-km
total
emissions
total
vehicle-kms
The Physical Internet
Source: Luo Hao Shenzhen University
The future of logistics…open networks?
35
+
Sustainable, Safe and Secure
Supply Chains
 Sustainability
 Enabling IT
 Product system redesign
 Flow efficiency
 Functional/circular
economy
 Security
 Enabling IT
 Risk management
concepts
 Collaboration and
recognition
Corridors, Hubs and
Synchromodality
Supply chain networks
• New demands of shippers
• EU as Hinterland of global chains
Transport services network
• Seamless exchange between modes
• ICT driven planning, booking, operations
Infrastructure network
• Hubs’ role in EU network
• Role of technology in integration
ICT
Business
Models Technology
Information Systems for
Interconnected Logistics
Global Supply Network
Coordination and Collaboration
 Collaborative transport network design and operation
 Design approaches for collaborative networks
 Real time supply network optimization
 Order and transport planning alignment in open networks
 Overcoming data sharing issues
 Integration of flexible manufacturing and open logistics networks
 Understanding flexible manufacturing needs
 Re-designing logistics networks
 Drivers and enablers for collaboration and coordination
kg
m3
Capacity cube
Capacityweight
Urban Freight Research
 Integrating freight activities in city transport
 Business models and new services
 Safety and security
 Cleaner and more efficient vehicles
ALICE – Expected Impacts from PI
P&G TINA CUBE
Mixing light & Heavy Products
Light goods: Only 25% of
weight limit
Heavy goods: Only 40%
of volume limit
Source: ALICE / P&G

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SCL Event - Dr Andrew Palmer - Cranfield University - The Physical Internet - Is it all PI in the Sky

  • 1. www.sustainableroadfreight.org The Physical Internet: Is it all PI in the Sky Dr Andrew Palmer Centre for Sustainable Road Freight SCL Event, Whittlebury Hall 30th September 2015
  • 2. Centre for Sustainable Road Freight: A Unique Collaboration… OperationsTechnology Policy SMMT* Low Carbon Vehicle Partnership* Cambridge University Engineering Department Internationally leading capability in heavy vehicle engineering Heriot-Watt University A world leader in logistics CILT* Department for Transport * Transport for London* * Advisory Committee Member
  • 3.
  • 4. 0 20 40 60 80 100 120 140 160 180 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 billioneuro Over 10 years, Zero Improvement in Road Freight Efficiency % Load factor % Empty truck (km) % Road efficiency
  • 5. The EU Vision EU Transport Policy Vision (EC 2011):  Reduce Europe's dependence on imported oil  Cut carbon emissions in transport by 60% by 2050  Modal shift: 30% off road by 2030 – 50 % by 2050  Multi-modal: European corridor network (low carbon/green)  CO2-free movement of goods in major urban centres by 2030 White Paper 2011: Roadmap to a Single European Transport Area - Towards a competitive and resource efficient transport system
  • 7. Future Supply Chain 2016 • Global Commerce Initiative & Capgemini • Joint work of 24 major FMCG companies • New sustainable supply chain architecture: collaborative warehousing and distribution
  • 8. The Physical Internet Source: Physical Internet Manifesto, Montreuil,B, 2012
  • 9. Source: Gary Forger, MHI In the USA
  • 11. ETP - ALICE Optimal use of assets and infrastructure resources Horizontal and vertical pooling of resources Open Integrated networks Modular logistic units system Create a more efficient, sustainable supply network by using Horizontal and Vertical Collaboration & smoother supply chain interfaces Visionenablers Physical Internet Secure information sharing
  • 12. ALICE themes  Sustainable, safe & secure supply chains  Corridors, hubs & synchromodality  Information systems  Collaboration between supply chains  Urban freight Alignment & convergence leading to the physical internet
  • 13. The ALICE Π movie
  • 14.
  • 16. PI is Predicted to Reduce Costs and Emission Levels – and Reorganise Flows
  • 17.
  • 18. π: Main Innovations  The π container (“physical encapsulation”) and handling material  Open market for transportation  Standards logistics service protocols (OLI model)  Interfaces between manufacturing and services  Capability certification & performance monitoring Optimised space Open networks & pooled resources Less network complexity Modular box system Modular dimensions from cargo container size to tiny Vision Source: Physical Internet Manifesto, Montreuil,B, 2012
  • 20.
  • 21. Source: Physical Internet Manifesto, Montreuil,B, 2012
  • 22. Source: Physical Internet Manifesto, Montreuil,B, 2012
  • 23. Towards an Effective Roadmap: ICT Implications
  • 24. Towards an Effective Roadmap: Collaboration Factors • Operational  Synergy  Products  Transport  Processes • Corporate environment  Culture  Managerial philosophy  Key people  Environmental attitudes • Collaboration climate  Business objectives  Level of trust  Resources • Components of collaboration  Joint planning  Communications/systems  Financials  Risk sharing  Entry & exit rules  Contracts
  • 25. Conclusion A lot more is needed to really shape this vision and to give it flesh through real initiatives and projects so as to positively influence our collective future The Physical Internet : Not a Utopia, not a Big-Bang Source: Physical Internet Manifesto, Montreuil,B, 2012
  • 27. www.sustainableroadfreight.org The Physical Internet: Is it all PI in the Sky Thank You SCL Event, Whittlebury Hall 30th September 2015
  • 28. Scope of the Decarbonisation Effort Logistics System Design Vehicle Maintenance Driving Vehicle Loading Vehicle Routing and Scheduling Vehicle Technology Supply Chain Structure emissions per vehicle-km total emissions total vehicle-kms
  • 30. Source: Luo Hao Shenzhen University
  • 31.
  • 32.
  • 33.
  • 34.
  • 35. The future of logistics…open networks? 35 +
  • 36.
  • 37.
  • 38. Sustainable, Safe and Secure Supply Chains  Sustainability  Enabling IT  Product system redesign  Flow efficiency  Functional/circular economy  Security  Enabling IT  Risk management concepts  Collaboration and recognition
  • 39. Corridors, Hubs and Synchromodality Supply chain networks • New demands of shippers • EU as Hinterland of global chains Transport services network • Seamless exchange between modes • ICT driven planning, booking, operations Infrastructure network • Hubs’ role in EU network • Role of technology in integration ICT Business Models Technology
  • 41. Global Supply Network Coordination and Collaboration  Collaborative transport network design and operation  Design approaches for collaborative networks  Real time supply network optimization  Order and transport planning alignment in open networks  Overcoming data sharing issues  Integration of flexible manufacturing and open logistics networks  Understanding flexible manufacturing needs  Re-designing logistics networks  Drivers and enablers for collaboration and coordination kg m3 Capacity cube Capacityweight
  • 42. Urban Freight Research  Integrating freight activities in city transport  Business models and new services  Safety and security  Cleaner and more efficient vehicles
  • 43. ALICE – Expected Impacts from PI
  • 44. P&G TINA CUBE Mixing light & Heavy Products Light goods: Only 25% of weight limit Heavy goods: Only 40% of volume limit Source: ALICE / P&G