This document summarizes a presentation on the Physical Internet concept. It discusses how current freight transport is inefficient, with little improvement in load factors and road efficiency over 10 years. It then outlines the EU vision for more sustainable freight by 2050, including reducing oil dependence and carbon emissions. The Physical Internet concept is presented as a way to improve efficiency by using standardized containers and open logistics networks, with potential to reduce costs and emissions through pooled resources. Key enablers include IT systems, collaboration between organizations, and standardized protocols. Overall the Physical Internet is framed as a way to optimize freight transport networks rather than a single solution.

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

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

6. Inefficiency and Unsustainability
Symptoms

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

10. In China

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

15. The ALICE Roadmap

16. PI is Predicted to Reduce Costs and
Emission Levels – and Reorganise Flows

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

19. Standard Logistics Service Protocols

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

26. More Information
www.etp-alice.org
www.physicalinternetinitiative.org

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

29. The Physical Internet

30. Source: Luo Hao Shenzhen University

35. The future of logistics…open networks?
35
+

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

40. Information Systems for
Interconnected Logistics

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