OVERALL SCHEME
Module M1 COMPANY MANAGEMENT
Module M2 PHYSICAL INTERNET
Module M3 SUPPLY CHAIN DIGITALISATION
Module M4 ANALYTICS. GLOBAL, MANUFACTURING AND LOGISTICS KPIS
digitalization
in logistics
M2. PHYSICAL INTERNET
M2. PHYSICAL INTERNET
2.1. Physical Internet, Definition And Topics
2.2. Horizontal Collaboration
2.3. Systems & Technologies For Interconnected Logistics
2.4. Global Supply Network Coordination And Collaboration
INDEX
2.1. Physical Internet,
Definition And Topics
2.1.1. Introduction to Physical
Internet
2.1.2. Objetives of the
transformation of logistics
2.1.3. Introduction to Physical
Internet Themes
In response to the Paris Agreement, more and more governments, associations,
and businesses are setting bold climate targets.
Within these goals, the ambition of the European Union is to become a climate
neutral continent by 2050, thus being the first in the world to achieve this.
To achieve this, a series of plans and actions have been created, which in terms
of logistics have resulted in the European project related to the physical Internet.
PHYSICAL INTERNET: INTRODUCTION
Source: https://www.etp-logistics.eu/
The PI builds on the extensive and systemic consolidation of flows and the network of networks
concepts. The Physical Internet proposes a full consolidation of logistics flows from independent
shippers (e.g. extended pooling and shared networks).
Sources: https://www.etp-logistics.eu/
https://www.mecalux.es/
PHYSICAL INTERNET: DEFINITION
The Physical Internet is probably the most ambitious concept towards efficiency and sustainability in
transport logistics. It stands for a far-reaching transition of freight transport and logistics so assets
and resources can be used in a much more efficient way.
Additionally, and to deliver customer value, the Physical Internet proposes to pool resources and
assets in open, connected, and shared networks (i.e. connecting existing (company) networks,
capabilities and resources) so they can be used seamlessly by network users and partners.
Source: https://www.etp-logistics.eu/
PHYSICAL INTERNET: DEFINITION
Getting rid of the inefficient,
oversized packaging
Available transport capacity
A quarter of all road
journey legs run unloaded.
Return flows
Often inefficient due to
seasonality in products
and markets.
Storage and distribution
facilities
Transshipment between
modes is neither time nor cost
efficient
Operational inefficiencies
Around 40% of the transport
costs incurred by a product
are accrued in the last mile
Last-mile delivery
logistics
Is dominant despite
environmental impacts although
drivers are in short supply.
Road transport
Creating a Physical Internet would help
overcome the following challenges:
Source: https://www.mecalux.es/
The European Union, through the
SENSE Project, developed a roadmap
to achieve these objectives. It should
be remembered that the final goal is to
be a climate neutral continent in 2050.
This roadmap is divided into blocks of
years and five lines of action.
Step 1
Step 5
Step 3
Step 4
Step 2
PROJECT SENSE
Fuente: https://www.etp-logistics.eu/
Fuente: https://www.etp-logistics.eu/
PI ROADMAP
Therefore, the logistics of the future, from global to urban, will be based on an open global system
that allows assets and resources to be interconnected in logistics networks, facilitating their use to
maximum capacity and productivity, while increasing agility and the resilience of supply chains.
We call this vision the Physical Internet (PI) and it will support the
affordable transition of assets to zero-emission logistics.
CONCLUSIONS
INDEX
2.1. Physical Internet,
Definition And Topics
2.1.1. Introduction to Physical
Internet
2.1.2. Objectives of the
transformation of logistics
2.1.3. Introduction to Physical
Internet Themes
DIGITAL TRANSFORMATION involves the implementation of new technologies in all areas of a
company to improve efficiency. This implies that digital transformation in logistics represents the
integration of new digital capabilities in areas such as storage, order preparation or transportation,
among others, and integration with the different actors involved in the entire process.
DIGITAL TRANSFORMATION
Two out of three organizations surveyed
in the 2022 MHI Annual Industry
Report, plan to spend more than $1
million in the next two years in the
digitalization of the supply chain.
Technology aims to achieve automated and
intelligent management of a company's
documentation, the organization of its
procedures or workflows, among others.
Source: https://www.mecalux.es/
Main technologies that are linked to digital
transformation in logistics
DIGITAL TWINS
It is possible to test the
operation of the new
organization, in a
digital environment,
before changing the
way it operates in
reality.
ROBOTICS
In intralogistics
operations, machines
and automatic systems
coexist with operators in
the execution of their
tasks
IoT
Examples of this are RFID
tags and
motion detectors
integrated into automatic
systems.
CLOUD
It allows you to reduce
the initial investment,
increase the security
of your data and be
able to access it at
any time.
IA
Artificial intelligence has
made massive data
analysis possible in
different areas of the
supply chain
Main technologies that are linked to digital
transformation in logistics
Source: https://www.mecalux.es/
ZERO EMISSIONS 2050
"In order to prevent the worst climate
damages, global net human-caused
emissions of carbon dioxide (CO2) need
to fall by about 45 percent from 2010
levels by 2030, reaching net zero
around 2050" (netzeroclimate.org)
How do we achieve this through logistics?
How logistics will lead us to the ZERO
EMISSIONS goal?
The ALICE platform proposes to achieve
these changes through PHYSICAL
INTERNET that will support the
affordable transition of assets towards
zero-emission logistics
Source: https://www.etp-logistics.eu/
Synchronized, Smart and Seamless Network
Optimization
Corridors, hubs and synchromodality
Disruptive Supply Models
Connected Intermodal Services
Global Supply Network Coordination and
Collaboratrion
Collaboration between companies in
the same sector and often even
competing companies
Horizontal
Collaboration
Integration throughout the entire
supply chain from origin to
customer
Vertical
Collaboration
Urban Logistics
If something has changed in recent
years and has endangered low
emissions models, it has been the
exponential increase in urban logistics
due to fast and highly atomized
delivery models.
Urban Logistics
Advanced analysis models of routes
and predictive demand models
allow companies to anticipate
market demands with their
logistics models. The use of the last mile
will be much more
sustainable and
integrated within
urban mobility systems.
Systems & Technologies for Interconnected
Logistics
To ensure the correct work of the communication
in the logistics chains, interoperable networks
must be available between them and allow
complete visibility of the data and therefore of the
product throughout the entire logistics chain.
This challenge will require technological solutions
such as blockchain t, as well as cybersecurity to
prevent data leaks outside the network itself.
Sustainable, safe and Secure Supply chains
1
Social
3
Environmental
2
Economic
4
Security
Sustainable, safe and Secure: The 4 areas
We can only face
the challenges of
efficient logistics
from a global
perspective
It’s not a concept
of the economic
integrity of each
country, but
rather a concept
of economies of
scale.
Major strategic
and structural
decisions must
be made by all
parties involved
The technological
tools are already
available, but their
degree of
adoption is still
not high enough
INDEX
2.1. Physical Internet,
Definition And Topics
2.1.1. Introduction to Physical
Internet
2.1.2. Objectives of the
transformation of logistics
2.1.3. Introduction to Physical
Internet Themes
â—ŹHorizontal Collaboration
â—ŹSystems & Technologies For Interconnected Logistics
â—ŹGlobal Supply Network Coordination And Collaboration
Horizontal collaboration
A recent trend in supply chain management, called horizontal collaboration, sees companies
join forces to perform their distribution jointly
The principle behind this trend is straightforward: companies can achieve higher efficiency
levels by forming a coalition and carrying out a joint operational plan
Source: https://www.uantwerpen.be/
Horizontal collaboration
The ambition of this Roadmap is the
achievement of EU wide co-modal
transport services within a well
synchronized and smart network,
supported by corridors and hubs,
providing optimal support to supply
chains.
Source: https://www.etp-logistics.eu/
Horizontal collaboration
Sources: https://www.etp-logistics.eu/
Example of Spanish wine producer:
Using Horizontal collaboration on the
Physical Internet
Horizontal collaboration
Source: https://www.etp-logistics.eu/
It involves a step change from
the current system towards the vision
of the Physical intenet by
sinchroninzing the full range of
services between modes and with
shippers, exploting hub capacity and
flexibility, aligning equipment and
services on corridors and hubs, and
integrating these into resilient
networks.
Horizontal collaboration
Source: https://www.etp-logistics.eu/
Corridors, Hubs, Synchromodality
European projects
Transportation challenges
Systems & Technologies For Interconnected Logistics
The aim is to identify and define research and innovation challenges including the
development of technologies and tools that facilitate the closure of existing gaps in current
ICT systems and data sharing capabilities and supply chains.
Source: https://www.etp-logistics.eu/
PI
Fully functional and operating open logistics networks
Fully visible supply chain
Interoperability between networks and IT applications
2040
2030
2020
2050
Systems & Technologies For Interconnected Logistics
Source: https://www.etp-logistics.eu/
Artificial Intelligence
Data sharing, DTLF and eFTI
5G for logistics application
Global supply network coordination and collaboration
Source: https://www.etp-logistics.eu/
The ambition of roadmap global supply network coordination and collaboration is to realize
supply chain networks that are operated as a whole.
Global supply network coordination and collaboration
Source: https://www.etp-logistics.eu/
Global supply network coordination and collaboration
Source: https://www.etp-logistics.eu/
Phisical Internet
Open global supply netowrks
Integration of the manufacturing logistics
Full horizotal collaboration
2040
2030
2020
2050
Global supply network coordination and collaboration
Business Process Models
Business areas and KPIs
Innovative Management Models
Data and optimization of business results
Source: https://www.etp-logistics.eu/
PHYSICALINTERNET DEFINITION AND TOPICS -EN

PHYSICALINTERNET DEFINITION AND TOPICS -EN

  • 2.
    OVERALL SCHEME Module M1COMPANY MANAGEMENT Module M2 PHYSICAL INTERNET Module M3 SUPPLY CHAIN DIGITALISATION Module M4 ANALYTICS. GLOBAL, MANUFACTURING AND LOGISTICS KPIS
  • 3.
  • 4.
    M2. PHYSICAL INTERNET 2.1.Physical Internet, Definition And Topics 2.2. Horizontal Collaboration 2.3. Systems & Technologies For Interconnected Logistics 2.4. Global Supply Network Coordination And Collaboration
  • 5.
    INDEX 2.1. Physical Internet, DefinitionAnd Topics 2.1.1. Introduction to Physical Internet 2.1.2. Objetives of the transformation of logistics 2.1.3. Introduction to Physical Internet Themes
  • 6.
    In response tothe Paris Agreement, more and more governments, associations, and businesses are setting bold climate targets. Within these goals, the ambition of the European Union is to become a climate neutral continent by 2050, thus being the first in the world to achieve this. To achieve this, a series of plans and actions have been created, which in terms of logistics have resulted in the European project related to the physical Internet. PHYSICAL INTERNET: INTRODUCTION Source: https://www.etp-logistics.eu/
  • 7.
    The PI buildson the extensive and systemic consolidation of flows and the network of networks concepts. The Physical Internet proposes a full consolidation of logistics flows from independent shippers (e.g. extended pooling and shared networks). Sources: https://www.etp-logistics.eu/ https://www.mecalux.es/ PHYSICAL INTERNET: DEFINITION
  • 8.
    The Physical Internetis probably the most ambitious concept towards efficiency and sustainability in transport logistics. It stands for a far-reaching transition of freight transport and logistics so assets and resources can be used in a much more efficient way. Additionally, and to deliver customer value, the Physical Internet proposes to pool resources and assets in open, connected, and shared networks (i.e. connecting existing (company) networks, capabilities and resources) so they can be used seamlessly by network users and partners. Source: https://www.etp-logistics.eu/ PHYSICAL INTERNET: DEFINITION
  • 9.
    Getting rid ofthe inefficient, oversized packaging Available transport capacity A quarter of all road journey legs run unloaded. Return flows Often inefficient due to seasonality in products and markets. Storage and distribution facilities Transshipment between modes is neither time nor cost efficient Operational inefficiencies Around 40% of the transport costs incurred by a product are accrued in the last mile Last-mile delivery logistics Is dominant despite environmental impacts although drivers are in short supply. Road transport Creating a Physical Internet would help overcome the following challenges: Source: https://www.mecalux.es/
  • 10.
    The European Union,through the SENSE Project, developed a roadmap to achieve these objectives. It should be remembered that the final goal is to be a climate neutral continent in 2050. This roadmap is divided into blocks of years and five lines of action. Step 1 Step 5 Step 3 Step 4 Step 2 PROJECT SENSE Fuente: https://www.etp-logistics.eu/
  • 11.
  • 12.
    Therefore, the logisticsof the future, from global to urban, will be based on an open global system that allows assets and resources to be interconnected in logistics networks, facilitating their use to maximum capacity and productivity, while increasing agility and the resilience of supply chains. We call this vision the Physical Internet (PI) and it will support the affordable transition of assets to zero-emission logistics. CONCLUSIONS
  • 14.
    INDEX 2.1. Physical Internet, DefinitionAnd Topics 2.1.1. Introduction to Physical Internet 2.1.2. Objectives of the transformation of logistics 2.1.3. Introduction to Physical Internet Themes
  • 15.
    DIGITAL TRANSFORMATION involvesthe implementation of new technologies in all areas of a company to improve efficiency. This implies that digital transformation in logistics represents the integration of new digital capabilities in areas such as storage, order preparation or transportation, among others, and integration with the different actors involved in the entire process. DIGITAL TRANSFORMATION Two out of three organizations surveyed in the 2022 MHI Annual Industry Report, plan to spend more than $1 million in the next two years in the digitalization of the supply chain.
  • 16.
    Technology aims toachieve automated and intelligent management of a company's documentation, the organization of its procedures or workflows, among others. Source: https://www.mecalux.es/ Main technologies that are linked to digital transformation in logistics
  • 17.
    DIGITAL TWINS It ispossible to test the operation of the new organization, in a digital environment, before changing the way it operates in reality. ROBOTICS In intralogistics operations, machines and automatic systems coexist with operators in the execution of their tasks IoT Examples of this are RFID tags and motion detectors integrated into automatic systems. CLOUD It allows you to reduce the initial investment, increase the security of your data and be able to access it at any time. IA Artificial intelligence has made massive data analysis possible in different areas of the supply chain Main technologies that are linked to digital transformation in logistics Source: https://www.mecalux.es/
  • 18.
    ZERO EMISSIONS 2050 "Inorder to prevent the worst climate damages, global net human-caused emissions of carbon dioxide (CO2) need to fall by about 45 percent from 2010 levels by 2030, reaching net zero around 2050" (netzeroclimate.org) How do we achieve this through logistics?
  • 19.
    How logistics willlead us to the ZERO EMISSIONS goal? The ALICE platform proposes to achieve these changes through PHYSICAL INTERNET that will support the affordable transition of assets towards zero-emission logistics Source: https://www.etp-logistics.eu/
  • 20.
    Synchronized, Smart andSeamless Network Optimization Corridors, hubs and synchromodality Disruptive Supply Models Connected Intermodal Services
  • 21.
    Global Supply NetworkCoordination and Collaboratrion Collaboration between companies in the same sector and often even competing companies Horizontal Collaboration Integration throughout the entire supply chain from origin to customer Vertical Collaboration
  • 22.
    Urban Logistics If somethinghas changed in recent years and has endangered low emissions models, it has been the exponential increase in urban logistics due to fast and highly atomized delivery models.
  • 23.
    Urban Logistics Advanced analysismodels of routes and predictive demand models allow companies to anticipate market demands with their logistics models. The use of the last mile will be much more sustainable and integrated within urban mobility systems.
  • 24.
    Systems & Technologiesfor Interconnected Logistics To ensure the correct work of the communication in the logistics chains, interoperable networks must be available between them and allow complete visibility of the data and therefore of the product throughout the entire logistics chain. This challenge will require technological solutions such as blockchain t, as well as cybersecurity to prevent data leaks outside the network itself.
  • 25.
    Sustainable, safe andSecure Supply chains
  • 26.
    1 Social 3 Environmental 2 Economic 4 Security Sustainable, safe andSecure: The 4 areas We can only face the challenges of efficient logistics from a global perspective It’s not a concept of the economic integrity of each country, but rather a concept of economies of scale. Major strategic and structural decisions must be made by all parties involved The technological tools are already available, but their degree of adoption is still not high enough
  • 28.
    INDEX 2.1. Physical Internet, DefinitionAnd Topics 2.1.1. Introduction to Physical Internet 2.1.2. Objectives of the transformation of logistics 2.1.3. Introduction to Physical Internet Themes
  • 29.
    â—ŹHorizontal Collaboration â—ŹSystems &Technologies For Interconnected Logistics â—ŹGlobal Supply Network Coordination And Collaboration
  • 30.
    Horizontal collaboration A recenttrend in supply chain management, called horizontal collaboration, sees companies join forces to perform their distribution jointly The principle behind this trend is straightforward: companies can achieve higher efficiency levels by forming a coalition and carrying out a joint operational plan Source: https://www.uantwerpen.be/
  • 31.
    Horizontal collaboration The ambitionof this Roadmap is the achievement of EU wide co-modal transport services within a well synchronized and smart network, supported by corridors and hubs, providing optimal support to supply chains. Source: https://www.etp-logistics.eu/
  • 32.
    Horizontal collaboration Sources: https://www.etp-logistics.eu/ Exampleof Spanish wine producer: Using Horizontal collaboration on the Physical Internet
  • 33.
    Horizontal collaboration Source: https://www.etp-logistics.eu/ Itinvolves a step change from the current system towards the vision of the Physical intenet by sinchroninzing the full range of services between modes and with shippers, exploting hub capacity and flexibility, aligning equipment and services on corridors and hubs, and integrating these into resilient networks.
  • 34.
    Horizontal collaboration Source: https://www.etp-logistics.eu/ Corridors,Hubs, Synchromodality European projects Transportation challenges
  • 35.
    Systems & TechnologiesFor Interconnected Logistics The aim is to identify and define research and innovation challenges including the development of technologies and tools that facilitate the closure of existing gaps in current ICT systems and data sharing capabilities and supply chains. Source: https://www.etp-logistics.eu/ PI Fully functional and operating open logistics networks Fully visible supply chain Interoperability between networks and IT applications 2040 2030 2020 2050
  • 36.
    Systems & TechnologiesFor Interconnected Logistics Source: https://www.etp-logistics.eu/ Artificial Intelligence Data sharing, DTLF and eFTI 5G for logistics application
  • 37.
    Global supply networkcoordination and collaboration Source: https://www.etp-logistics.eu/ The ambition of roadmap global supply network coordination and collaboration is to realize supply chain networks that are operated as a whole.
  • 38.
    Global supply networkcoordination and collaboration Source: https://www.etp-logistics.eu/
  • 39.
    Global supply networkcoordination and collaboration Source: https://www.etp-logistics.eu/ Phisical Internet Open global supply netowrks Integration of the manufacturing logistics Full horizotal collaboration 2040 2030 2020 2050
  • 40.
    Global supply networkcoordination and collaboration Business Process Models Business areas and KPIs Innovative Management Models Data and optimization of business results Source: https://www.etp-logistics.eu/