its for city logistics and the physical internet mpf cvo... · its for city logistics and the...

ITS for City Logistics and the Physical Internet

Teodor Gabriel [email protected]

Benoît Montreuil

Canada Research Chairin Enterprise Engineering

[email protected]

ITS Society of Canada, ACGM Québec, June 10-13, 2012

Logistics & Transportation = Essential

� To most economic and social activities�No transportation = No human society as we know it

�No logistics = No economy as we know it

� Supply the population for work and play

� Supply homes, stores, firms, offices, institutions, ...

© Teodor Gabriel Crainic & Benoit Montreuil 2012

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� Supply homes, stores, firms, offices, institutions, ...

� Support supply chains and industries

� Keep cities clean

� Maintain and repair homes, buildings, facilities ,… and the appliances and machines within

� Major source of employment

Major Disturbing & Disrupting Factor

� Significant

�Part of traffic & traffic-related problems

�Negative impact on the environment

� Usage of trucks is on the rise, urban and interurban

� Many empty or lightly loaded vehicles


� Many empty or lightly loaded vehicles

� Packaging takes up a lot of space

� The worldwide cost of logistics (5% - 15% of GNP) is rising faster than world trade

� “Everybody” builds production, assembly & storage facilities, but these are poorly used from a global point of view

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General Observations

� Cities are polluted and congested

� Intercity routes are congested with too many trucks

� We need a greener way of life & sustainable mobility

� The way physical objects are moved, handled, stored, realized, supplied and used throughout the world is


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realized, supplied and used throughout the world is inefficient and unsustainable economically, environmentally, and socially

� Our transportation and logistics systems are globally not efficient, nor sustainable

� The problems will not go away …

What Can We Do ?

� Innovate for now and for the future

� Change the way things are perceived, planned, and done

� “New” organizational strategies/models

�Addressing the negative aspects

�Fostering efficient & sustainable


�Fostering efficient & sustainable

transportation & logistics systems

� Without penalizing the economic development

� City Logistics & Physical Internet initiatives

�Many concepts in common & common goals

� ITS as major success factor

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The City Logistics Metaphor


� Current/classic distribution: Many vehicles dedicated to

small (single) numbers of shippers / shipments / consignees

⇒ Many empty vehicles or lightly loaded

Using Proven Strategy in Logistics, Long-haul Transportation, Passenger Transportation, …


� Consolidation (& coordination)

Distribution centres

City Logistics Fundamental Ideas

� Stop considering each shipment/company/vehicle

individually

� Rather as components of an integrated logistics system

� Consolidation and coordination

Coordination of shippers and carriers (& consignees)


�Coordination of shippers and carriers (& consignees)

�Consolidation of several shipments

from different shippers and carriers,

into the same

improved, more energy efficient, green vehicles

� Optimize this logistics system

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Customer

CDC: City

Distribution

Center

Single-Tier, Single-CDC City Logistics


City freighter - route

Empty vehicle

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Two-Tier City Logistics

CDC


CDC

Satellite CDC

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City freighter - route

Two-Tier City Logistics


Urban vehicle - route

Empty vehicle

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City Logistics for Large or Sensitive Urban Areas

� Most display a two-tier structure

� Several not necessarily integrated sub-systems

� Many have access to some public infrastructure (light rail

lines, parking lots, …) even for private initiatives

Dedicated transportation modes (underground) proposed


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� Dedicated transportation modes (underground) proposed

� A few initiatives to use dynamically available

transportation & storage capacity

� In all cases, one disconnects

the actual mean of transportation/delivery

from the carrier/shipper/3PL originally contracted

The Physical Internet Metaphor

� Digital Internet

�From numerous unconnected computers to

�The information highway to

�The Internet & the World Wide Web

� Interconnected independent networks


� Interconnected independent networks

in a transparent way for the user,

� Transmission of standard formatted information flows

Data packets

� Seamless transit through heterogeneous equipment

respecting standard protocols (TCP/IP)

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The Physical Internet Concept

� Physical Internet (PI, π)

�From numerous more or less unconnected production,

logistics, storage, transportation systems to

�An open logistics & transportation system

�Separating flow and store/move management


�Separating flow and store/move management� Interconnected independent networks

in a transparent way for the user

� Transmission of standard formatted physical flows:

modular containers

� Seamless transit through heterogeneous storage and

intermodal facilities & transportation networks

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Logistics & Transportation Web

Realization WebRealizing products

Interconnected open production,

personalising & retrofit centers

Supply Web Supplying goods

Interconnected open

suppliers and subcontractors

Openly interconnected physical, human, organizational,

social, and digital stakeholders and networks


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Mobility WebMoving goods & people

Interconnected open unimodal

& multimodal infrastructures,

movers, hubs and transits

Distribution WebDeploying, storing

products

Interconnected open warehouses

& distribution centers

suppliers and subcontractors

Service WebEnabling and sharing

access and usage

of services rendered

by goods & people

Interconnected open

users and service providers

Équipement 1

Équipement 4

Équipement 5 Équipement 3

Station

d’arr

ivée

Station

de dép

art

Centre 1

Équipement 6 Équipement 2

Intra-Centre Inter-Processors Intra-installation Inter-Centres Intra-Site Inter-Installations

Intra-City Inter-Site Intra-Continental

Scalable Framework


Intra-City Inter-SiteCity Logistics

Intra-ContinentalInter-City, Inter-State/Province Inter-Continental Worldwide Network

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Modular & Standard ππππ-Containers

Decomposi

on

Composi

on


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Smart Physical Internet & City Logistics

� Many converging objectives, concepts, means, &

challenges

� Joining the concepts: PI-enabled CL

� Vision for better, more efficient & profitable

transportation & logistics systems and better cities


transportation & logistics systems and better cities

�Fully loaded vehicles

�Less vehicle/cargo/crew-km

�Less congestion & polluting emissions

�On-time delivery

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Smart Physical Internet & City Logistics (2)

� Integrated network of independent systems

� Use the best cargo storage, vehicles & routing given

�The current state of the integrated network

�The particular characteristics of supply & demand

Separate management of flow routing/storage from that


� Separate management of flow routing/storage from that

of the logistics & transportation facilities and movers

� Consolidate & coordinate

� Use all and any transportation/facility mode available

(and innovate some more)

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Smart Physical Internet & City Logistics (3)

� ITS = Major enabling & success factor

� Provides the physical, electronic & intelligence

infrastructure supporting advanced planning,

management & control of intra and inter-city

transportation


transportation

� Challenges

�Deployment

� Integration people and freight

� Integration transport & logistics

�Even more intelligence

� (Business, legal, organizational models/frameworks)

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Your questions and comments are welcome

Your collaboration is precious


[TeodorGabriel.Crainic,Benoit.Montreuil]@CIRRELT.ca

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www.physicalinternetinitiative.org

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