MODULUSHCA: IT Approach for Physical

Internet and Modular Logistics

Dr. Giancarlo Tretola

R&D Department, Meware S.r.l.

ECITIL 2013, October23-25 2013

Summary

• Foreword

• Introduction

– Physical Internet initiative

– MODULUSHCA

• IT approach in MODULUSHCA

– Scenario

– Approach

– Postal and FMCG logistics

• Conclusion

Foreword

• Modular logistic may be built upon existing

systems, integrating the current processes with

the needed data and the related operation

• The introduction of the modular containers and

the related processes may be seen as an

evolution rather than a revolution

Introduction

Physical Internet

• The most relevant research project for the

MODULUSHCA activities is the Physical Internet

Initiative

• Physical Internet is inspired to the way

information is packaged, distributed and stored

(packet switching) in the digital internet to

improve processes

• Researchers involved in the PI use the Internet

as a metaphor for a new way to move physical

objects through the supply chain

Physical Internet

• The Internet and the physical world are different,

mainly because on the internet data moves at

light speed and are “immaterial”. Data are

stored, if you lose it, you can often retrieve it and

there is no great incremental cost to ship more

data

• In the physical world, on the other hand, the

equipment move at limited speed, it is terrible to

lose a pallet, and there is an additional cost

every time someone touches an object

• A consequence of the internet metaphor for PI is

the need for a standardization in the containers

dimensions (π-container), which can allow an

automated and efficient handling of the loads

• Logistic π-network using PI approach are

composed of π-link for delivering π-container

• On this point MODULUSHCA may give a great

contribution exploiting activities already done in

the PI researches and, at same time, providing a

test bed for the PI ideas

Physical Internet

to enable more efficient flows of fast-moving consumer goods (FMCG)

− operate with developed iso-modular logistics units of adequate size

− provide a basis for a fully interconnected logistics system by 2030.

− Requirements and changes of standardized processes within open logistics networks

− exploit progress in digital and physical interconnectivity

− build on current assets & infrastructure

Objectives Consortium

Modulushca: A Practical Approach to Modular Logistic

Modular dimensions from cargo containers down to tiny sizes

Easy to handle, store, transport, interlock, load, unload, construct, dismantle, compose and decompose

Smart tag enabled, with sensors

Decomposi

on

Composi

on

MODULUSHCA New Modular Concept

IT approach in MODULUSHCA

Scenario

• Digital networks are heterogeneous (in terms of

technologies and manufacturers), yet only deal with data

• Logistics networks are not only heterogeneous but also

have to handle not only goods but also much

information, partially digitalized

• To enable seamless universal interconnectivity requires

a standard approach like was done for the Digital

Internet, OSI (Open Systems Interconnection) model

• This leads to proposing an Open Logistics

Interconnection Model (OLI) of the Physical Internet,

inspired to the OSI

Scenario: internet operation

• Internet is based on two synergic ways of operation:

• Connections point to point along the backbones with

the use of the methodology Store and Forward:

– Maintain a copy of the message until it is completely received by

the other end of the point to point channel

• The communication protocol is based on ARQ

(Automatic Repeat reQuest):

– ARQ is an error-control method for data transmission that uses

acknowledgements and timeouts to achieve reliable data

transmission over an unreliable service. If the sender does not

receive an acknowledgment, before a prefixed timeout, it re-

transmits the frame/packet until it receives an acknowledgment

or exceeds a predefined number of re-transmissions

Scenario: Differences

• Main differences are: in the Internet it is

transmitted information, so an immaterial

payload, while logistics is aimed at moving loads

of materials and the principal problems are:

– freight may be not stored and forwarded at the same

time and may not be re-sent

– freight handling is a costing operation

– bandwidth and linking is related to physical presence

of the carrier

– Items have physical parameters (weight, dimension,

etc.) and may be valuable or fragile

Approach: addressing issues

• Tracking and tracing approach for addressing

lack of store and forward and ARQ

• Logistic nodes planning have must be based

carrier availability on the links (cargo routing)

aiming at maximize cross-docking and

minimize storage

• M-Boxes modular dimension allows for optimal

filling and ease loading and unloading

Approach

• Objective: digital integration

– unique identification of the M-Boxes, unique id is key

for retrieving the related information (sender,

destination, etc.)

– allowing access to information with different access

rights for different roles,

– forwarding information along the supply chain

– locating the boxes (in space and time) in order to

trace them;

– observe events in the real word in order to bring them

in the IT world

Approach

• Integration of existing IT systems introducing

connectors and adapters for enabling interoperability

between them

• Definition of a software architecture, based on a layered

approach. Each layer deals with a specific problem.

• Moreover it is possible to consider several protocol, in

the same layer, offering different service level

• Definition of the collaboration information to be

exchanged by the partners along a modular supply

chain, in order to allow tracking, tracing and planning

Modulushca ICT Model vs PI/OLI Model

Physical Layer

Link Layer

Network Layer

Logistics Web Layer

Encapsulation Layer

Shipping Layer

Routing Layer

Client

Physical Layer

Link Layer

Network Layer

Logistics Web Layer

Encapsulation Layer

Shipping Layer

Routing Layer

Supplier

Physical Layer

I Layer

II Layer

Vision of Modulushca Architecture

Poste Italiane

P&G XYZ …

Adapter Adapter Adapter

II Layer

I Layer

Poste Logistic Network

ACME Logistic

Pacific Shipping Physical Layer

Modulushca Logistic Network

Connector Connector Connector

MODULUSHCA Architecture: Vision

• Architecture structured on 2 layers in analogy with TCP

and IP ones of TCP/IP protocol

• I Layer (MODULUSHCA Logistics Network):handles

the M-Boxes, implementing their transport, and it is

interfaced with existing logistic systems using dedicated

connectors

• II Layer (M-Box Grouping Layer): allows for

management of the transport grouping the M- Boxes,

allowing routing to be handled as a set of modular

logistics units to be delivered, it is interfaced with the

private information systems using adapters which

translate from the “actor's own IT system language" to

the "general MODULUSHCA language"

Information handling

• GS1 Global Standards for unique identification

of boxes, containers, products, location, etc.

• EPCGlobal initiative for allowing

interoperability and information exchange

• UPU Standards (a postal standard) is interesting

as an example of handling information

interchange and forwarding between “abroad”

partners, tracking and borders crossing

• Tracking of M-Boxes dynamic aggregation in

order to simplify the tracking and tracing

approach

Global identification

• SSCC (Single Shipment Container Code) identifier for

logistics units from GS1 organization

• Also other identifiers are important and helpful:

– GLN- Global location number

– GIAI – Global Individual Asset Identifier

– GTIN and SGTIN – Global Trade Item and Serial Global Trade

Item

– GSIN – Global shipment identification number

GTIN

SSCC GSIN

GLN

GLN GLN

GSIN GSIN GSIN GINC

GLN

GIAI

GIAI

GSIN GLN

EPCIS

• EPCIS (Electronic Product Code Information

Services) objective is to enable using Electronic

Product Code (EPC) data both within and across

enterprises

• EPCIS approach defines a standard interface to

enable EPC-related data to be captured and

queried using a defined set of service operations

and associated EPC-related data standards, all

combined with appropriate security mechanisms

that satisfy the needs of user companies

EPCGlobal Architecture

Postal Logistics

• The layered architecture may be related to the

actual status in Postal scenario:

– first level is managed by the T&T systems, which is

used for the handling of the single postal item

(grouping and dispatching)

– postal items are grouped in the second layer

containers and routed with support of ERP (TMS,

WMS)

II level : ERP Sap LES

Data collection

I level: Track & Trace system

Poste Italiane two layers containerization

Level II (Roll containers, baskets, pallets)

Used to handle the Boxes

Level I (Thermoplastic containers, bags e security

envelops)

“Box A” 50*30*17.5 cm max Weight 6 Kg

“Box B” 50*30*30 cm max weight 16 Kg

LSP: TMS-APS system

• TMS (Transport Management System): an application

used for handling the transport activities of an LSP

• APS (Advanced Planning & Scheduling): an application

used for handling the delivery processes and executing

them with the carriers

LSPs: 4C approach

• For enabling Interconnected Logistics, M-Boxes

and the PI, LSP need another way of using IT

systems: software should support intermodal

shipment and routing

• Each LSP will have to act as a 4C = cross

chain control centre, an IT component

enabling collaboration between TMS-APS

Systems

4C requirements

• What LSPs need:

– Independent logistic control centres (4C) able

to interact one with the other

– Open information exchange via TMS-APS

systems, using XML based approach

– Visibility on asset capacity, carriers availability

and link status

Conclusions

Conclusions

• Analysis focused on the identification of the information

needed to establish a digital interconnectivity

• In MODULUSHCA we considered two scenarios: Postal

scenario and FMCG scenario

• Poste Italiane uses grouping of items, using two “levels” of re-

usable containers; items are dispatched (common

destination items are grouped and handled as a unique meta-

item)

• Jan De Rijk works in a similar way to Poste Italiane, TMS

Booking Systems performs a regrouping of items with

common destination; their IT Systems uses a ESB, which may

be used for interconnection with ESB of other LSP

• Points of interest that have to be considered are the logistics

concepts of Cross-Docking and Storage.

Convergence

• The goal we are considering is to have the two scenarios

(FMCG and Postal) convergence, where the common

system of transport and delivery is realized using M-

Boxes

• Considering dispatching of items, M-Boxes delivery may

be accomplished handling the modular containers with a

black box approach, and tracking the box for tracking the

content

• modular container should be assembled on three levels:

physical level, electronic level and computing information

level, in order to be handled as a unique container

• Points of interest that have to be considered are the

logistics concepts of Cross-Docking and Storage.

Open points

• The ICT play a critical role in the Modulushca

and in the interconnected logistic, the challenge

is to focus on a sustainable roadmap

• Security, business and political implications are

substantial and must not be underestimated

• Standards, data sharing and collaboration

protocols have to be defined and accepted

www.modulushca.eu

Giancarlo Tretola

R&D Department

Meware S.r.l.

giancarlo.tretola@meware.it