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Impacts of Information and Communication Technology on Urban Logistics System

Ryuichi Yoshimoto

2001 1

Shippers (S)

Logistics service

providers (L)

Consumers (C)

Governments (G)

Business

B2C

C2B

S2L L2S

B2G

G2B

C2G G2C

S2S

L2L

C2C

G2G

Fig.1 Stakeholders in logistics system 2001 2

Fig. 2 ICT and urban logistics system

Internet (mobile)

ITS

B2B, B2C transaction

(e-commerce)

S2L, L2L transaction (e-logistics)

Logistics operations

(e-fleet mgnt)

2001 3

Fig. 3 Mobile communication media between drivers and dispatchers in Trucking Carriers

0 10 20 30 40 50 60 70 80

42.1

4.4 Public phone

23.9

9.3 Multi-channel access

56.8 72.9 Mobile phone

19.2 17.3

Specialized radio

26.8 7.0

Pager

0.1 0.5

Satellite comm.

Upper 1996

Lower 2000

(Survey year)

%

2001 4

B2C 824 billion yen 135% up

B2B 21,600 billion yen 50%up Mobile commerce

59 billion yen 1300% up

E-commerce 22,400 billion yen 52% up Fig. 4 E-commerce in Japan in 2000

Internet contents

Contents exclusive for IMPs

Internet (including extra-net)

Internet Mobile Phone

(IMP) net

Desk-top personal computers

Mobile phone

Note-book personal computers

IMPs with micro-browsers

2001 5

Tracking i-mode

Shipping charge estimation

2001 6

Fig.9 Impacts of ICT on urban logistics system

(e-commerce)

(e-logistics)

(e-fleet management)

Freight-ton

Ton-km

Vehicle-km

Vehicle-km in urban area

More efficient transaction Internet EDI (B2B) Cyber mall (B2C)

More customized products Information sharing (B2B) One-to-one marketing (B2C)

New business model Reverse auction (C2B) Auction(C2C)

More efficient transaction Logistics EDI (S2L) Courier, 3PL, 4PL (L2S)

Advanced logistics market Matching cargoes and trucks (S2L, L2L) Shipping charge estimation (L2S)

More efficient logistics operation Optimized routing (L2L) Cargo tracking (L2S)

More value Added products

Substituting Shopping time

Global procurement

Direct delivery

JIT delivery

Outsourcing logistics

Urban consolidation

Optimizing routing

Internet

ITS

&

+

+

+

+

+

+

+ +

-

-

- - - -

2001 7

Table 2 Modal shares by trip purpose in Tokyo in 1998 trip purpose modal share (%)

rail bus car two- wheeler

foot

Tokyo Metropolitan Area

commuting 46 2 32 13 7

(34 million pop) shopping, leisure 13 3 34 21 29

Central Tokyo commuting 73 2 9 10 6 (8 million pop) shopping, leisure 23 3 12 23 39

2001 8


(e-commerce)

(e-logistics)


Freight-ton

Ton-km

Vehicle-km










Global procurement

Direct delivery

JIT delivery


Urban consolidation

Optimizing routing

Internet

ITS

&

+

+

+

+

+

+

+ +

-

-

- - - -

2001 9

Table 3 Freight traffic in terms of vehicle-km, ton-km and ton in Japan

freight traffic in vehicle-km(billionv-km)

share ofcommercialtrucks (%)

share ofprivatetrucks (%)

1980 141 19.0 81.0 178 5,3171985 146 23.7 76.3 205 5,0481990 170 28.4 71.6 274 6,1131995 182 33.0 67.0 294 6,0161998 179 35.2 64.8 300 5,8191999 181 36.2 63.8 307 5,863

freight trafficin ton-km(billion t-km)

freight trafficin ton(million ton)

2001 10

19.0 23.7 28.4 33.0 36.2

81.0 76.3 71.6 67.0 63.8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1985 1990 1995 1999

Share of freight transport vehicle-km by commercial and private

commercial truck

private truck

2001 11

8.5 8.9 10.2 12.4 14.5

76.4 78.5 76.1 71.1 66.4

13.7 11.4 12.6 15.6 17.8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1985 1990 1994 1999

commercial vehicle ordinary size

Private vehicle small-size

max. loading weight < 4 ton

Private vehicle ordinary-size

max. loading weight > 4 ton

commercial vehicle small size 1.3% in 1999

Share of intra-prefecture* freight transport vehicle-km by commercial and private, small and ordinary

*Note: there are 47 prefectures in Japan.

2001 12


(e-commerce)

(e-logistics)


Freight-ton

Ton-km

Vehicle-km










Global procurement

Direct delivery

JIT delivery


Urban consolidation

Optimizing routing

Internet

ITS

&

+

+

+

+

+

+

+ +

-

-

- - - -

2001 13

Internet Mobile Phone

Packet Communication Network

INTERNET

INTERNET

InternetServiceProvider

FreightCarrier X

FreightCarrier Y

FreightCarrier Z

Web Server

Information SharingOn Delivery Status

Fig. 6 Sharing information on delivery status with Internet Mobile Phones

2001 14

Access to the Web server

Vehicle IDDelivery StatusDelivery Order

1:Send 0:End

Select from pull down menuand send a message

WaitingLoading/unloadingDeparture

Fig. 7 Interface of i-mode phone

2001 15

2001 16


(e-commerce)

(e-logistics)


Freight-ton

Ton-km

Vehicle-km










Global procurement

Direct delivery

JIT delivery


Urban consolidation

Optimizing routing

Internet

ITS

&

+

+

+

+

+

+

+ +

-

-

- - - -

2001 17

Congestion Normal Figure 8 Traffic Information on Tokyo Metropolitan Expressway (Source: ATIS, i-mode, 2001) 2001 18

Table 5 Policies on City Logistics

Transportation Information Regulations Standardization Pricing SubsidiesLand use Digital map,

GPSZoning forlogistics activities

Property tax

Transportnetworks

Ring roads,Direct links toports & airports,Undergroundfreight system

Road trafficinformationsystem,Electronic tollcollection

Truck routecontrol, Vehicleand timerestriction

Road pricing Subsidies forintermodaltransport

Terminals (Urban logisticsplatform)

(Berth guidancesystem)

Standards forintermodalterminals

Subsidies forcooperativefacilities

Loading/unloading

On-road parkingspace, (Off-roadparking space)

(Reservation onparking space)

Compulsoryloading spaces,Loading time

Parking chargedifferentiation

Subsidies for off-road parkingfacilities

Vehicles/containers

(Electric vehicles,Vehicles withhandlingequipments)

(Fleetmanagementsystem,Matching systembetween cargoesand vehicles)

Emission control,Loading ratiocontrol,Compulsory useof low emissionvehicles

Standardizedcontainers,pallets, electronictags, in-vehicleunits

Vehicle weighttax, Fuel tax,Environmentaltax

Subsidies for lowemission vehiclesVehicle sharing

Cargoes (Cargo tracking,Order entrysystem)

(EDI, AIDC) Subsidies forcooperativedelivery

Note:（）expected to be introduced by the private sector

Infrastructure provision Regulations/guidelines Economic instruments

2001 19

Conclusions 1. Increase of e-commerce and mobile-commerce 2. Direct home delivery increases vehicle-km 3. Vehicle-km reduced by e-logistics and e-fleet management 4. Internet Mobile Phones and Intelligent

Transport Systems work 5. Information infrastructure by the

governments 2001 20

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