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2012-04-05, 1/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Manifesto
Transforming the way physical objects are handled, moved, stored, realized, supplied and used,
aiming towards global logistics efficiency and sustainability
Professor Benoit Montreuil
Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center
on Enterprise Networks, Logistics and Transportation Laval University, Québec, Canada
Version 1.10.1: 2012-04-05
2012-04-05, 2/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Acknowledgements The Physical Internet Manifesto has greatly benefited from
the contribution of esteemed colleagues America
CIRRELT Research Center:
• Teodor Crainic - UQAM
• Michel Gendreau - Université de Montréal
• Olivier Labarthe, Mustapha Lounès & Jacques Renaud - Université Laval
CICMHE, College-Industry Council for Material Handling Education:
• Russ Meller – University of Arkansas
• Kevin Gue & Jeff Smith – Auburn University
• Kimberley Ellis – Virginia Tech
• Leon McGinnis – Georgia Tech
• Mike Ogle – MHIA
Europe
• Éric Ballot, Frédéric Fontane – Mines ParisTech
• Rémy Glardon – EPFL
• Rene De Koster – Erasmus University
• Detlef Spee – Fraunhofer Institute for Material Flow and Logistic
2012-04-05, 3/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Macroscopic Positioning
CLAIM The way physical objects are
moved, handled, stored, realized, supplied and used throughout the world
is neither efficient nor sustainable economically, environmentally and socially
GOAL Enabling the global efficiency and sustainability
of physical object movement, handling, storage, realization, supply & usage
VISION Evolving towards a worldwide Physical Internet
2012-04-05, 4/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Inspiration for the Physical Internet Vision
• A great front page one-liner
– Interesting yet mainstream supply chain articles
– Nothing like what I perceived a Physical Internet should be
• I rapidly got passionate about the question What should or could be a full blown Physical Internet?
– What would be its key features?
– What capabilities would it offer that are not achievable today?
• Another question surfaced rapidly: Why would we need a Physical Internet?
2012-04-05, 5/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency and unsustainability claim
The way physical objects are moved, handled, stored, realized, supplied and used throughout the world is inefficient and unsustainable
economically, environmentally and socially
Why Do we need a Physical Internet ?
2012-04-05, 6/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
ECONOMIC Logistics: 10-20% burden on GDP of most countries
The worldwide logistics cost grows faster than world trade
ENVIRONMENT One of the heaviest polluters, energy consumer and greenhouse gas generators
Growing negative contribution while nations’ goals aims for heavy reductions
SOCIAL Lack of fast, reliable and affordable accessibility and mobility
of physical objects for the vast majority of the world’s population
Too often precarious logistic work conditions
Logistics inefficiency and unsustainability
Why do we need to change ?
2012-04-05, 7/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
1. We are shipping air and packaging 2. Empty travel is the norm rather than the exception 3. Truckers have become the modern cowboys 4. Products mostly sit idle, stored where unneeded,
yet so often unavailable fast where needed 5. Production and storage facilities are poorly used 6. So many products are never sold, never used 7. Products do not reach those who need them the most 8. Products unnecessarily move, crisscrossing the world 9. Fast & reliable multimodal transport is a dream or a joke 10. Getting products in and out of cities is a nightmare 11. Networks are neither secure nor robust 12. Smart automation & technology are hard to justify 13. Innovation is strangled
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
2012-04-05, 8/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
1. We are shipping air and packaging – Trucks and containers are often half empty at departure,
with a large chunk of the non-emptiness being filled by packaging
2. Empty travel is the norm rather than the exception – Vehicles and containers often return empty,
or travel extra routes to find return shipments
– Loaded vehicles get emptier and emptier as their route unfolds from delivery point to delivery point
3. Truckers have become the modern cowboys – So many are always on the road,
so often away from home for long durations
– Their family and social life is precarious, as well as their personal health
– In general, logistic operators and material handling personnel have similar precarious positions
2012-04-05, 9/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
4. Products mostly sit idle, stored where unneeded, yet so often unavailable fast where needed – Manufacturers, distributors, retailers and users
are all storing products, often in vast quantities through their networks of warehouses and distribution centers, yet service levels and response times to local users are constraining and unreliable
5. Production and storage facilities are poorly or badly used – Most businesses invest in storage and/or production
facilities which are lowly used most of the times, or yet badly used, dealing with products which would better be dealt elsewhere, forcing a lot of unnecessary travel
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2012-04-05, 10/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
6. So many products are never sold, never used – A significant portion of consumer products that are
made never reach the right market on time, ending up unsold and unused while there would have been required elsewhere
7. Products do not reach those who need them the most – This is specially true in less developed countries and
disaster-crisis zones
Rusting new cars in disused airfield
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2012-04-05, 11/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
8. Products unnecessarily move, crisscrossing the world – Products commonly travel
thousands of miles-kilometers which could have been avoided by making or assembling it much nearer to point of use
9. Fast & reliable multimodal transport is a dream or a joke – Even though there are great examples, in
general synchronization is so poor, interfaces so badly designed, that multimodal routes are most often time and cost inefficient and risky
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2012-04-05, 12/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
10. Getting products in and out of cities is a nightmare – Most cities are not designed and equipped
for easing freight transportation, handling and storage, making the feeding of businesses and users in cities a nightmare
11. Networks are neither secure nor robust – There is extreme concentration of operations in a
limited number of centralized production and distribution facilities, with travel along a narrow set of high-traffic route
– This makes the logistic networks and supply chains of so many businesses, unsecure in face of robbery and terrorism acts, and not robust in face of natural disasters and demand crises
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2012-04-05, 13/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
12. Smart automation & technology are hard to justify – Vehicles, handling systems and operational facilities
have to deal with so many types of materials, shapes and unit loads, with each player independently and locally deciding on his piece of the pie
– Hard to justify smart connective (e.g. RFID) technologies, systemic handling and transport automation, as well as smart collaborative piloting software
13. Innovation is strangled – Innovation is bottlenecked by lack of generic standards
& protocols, transparency, modularity and systemic open infrastructure
– This makes breakthrough innovation so tough, justifying a focus on marginal epsilon innovation
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2012-04-05, 14/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets
2012-04-05, 15/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Eliciting the Overall Goal Toward Global Logistics Efficiency and Sustainability
Societal goal Sustainably and significantly increase the quality of life of the logistics workers and the world’s population by improving the timely accessibility and mobility of physical objects
Environmental goal Sustainably reduce by an order of magnitude the logistics-induced global greenhouse gas emission, energy consumption and pollution
Economic goal Sustainably reduce by an order of magnitude the global economic burden of logistics while unlocking huge gains in business productivity
Note: Logistics is hereafter used in its broad sense notably including transportation, handling, storage,
supply, realization (production, assembly, finishing, personalizing, recycling) and usage
2012-04-05, 16/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
The Digital Internet Exploiting the Information Highway Metaphor
When looking for a way to conceptualize how it should transform itself,
it relied on a physical transport and logistics metaphor: Building the information highway
Decades ago the information & communications technology community was stuck in a huge inefficient and unsustainable tangle
due to millions of unconnected computers
2012-04-05, 17/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
They have achieved their goal and went farther, reshaping completely the way
digital computing and communication are now performed
They have invented the Internet, leading the way to the World-Wide Web
They have enabled the building of an open distributed networked infrastructure
that is currently revolutionizing so many facets of our societal and economic reality
The Digital Internet Expanding Beyond the Information Highway Metaphor
2012-04-05, 18/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
The Essence of the Digital Internet
The Digital Internet is about the interconnection between networks
in a way transparent for the user, so allowing the transmission of
formatted data packets in a standard way
permitting them to transit through heterogeneous equipment
respecting the TCP/IP protocol
References: Kurose J., Ross K. and Wesley A. “Computer Networking: A Top Down Approach Featuring the Internet”, 3rd edition., July 2004. Parziale L., Britt D.T., Davis C., Forrester J., Liu W., Matthews C. and Rosselot N. “TCP-IP Tutorial and Technical Overview”, 2006. http://www.redbooks.ibm.com/redbooks/pdfs/gg243376.pdf “Interconnection of access networks, MANs and WANs “, http://images.google.ca/imgres?imgurl=http://www.exfo.com/
2012-04-05, 19/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet Initiative Using the Digital Internet as a Metaphor for the Physical World
Even though there are fundamental differences between the physical world and the information world,
the Physical Internet initiative aims to exploit the Internet metaphor
so as to propose a vision for a sustainable and progressively deployable
breakthrough solution to global problems associated with the way
we move, handle, store, realize, supply and use physical objects all around the world
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
How do we propose to meet
the Logistics Grand Challenge?
2012-04-05, 20/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Exposing Key Features of the Physical Internet Vision
Evolving towards a worldwide Physical Internet
2012-04-05, 21/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
What is the Physical Internet?
An open global logistics system based on the physical, digital and operational
interconnectivity enabled by
the encapsulation, protocols and interfaces
Current version of a working definition for the Physical Internet, jointly developed by Benoit Montreuil, Eric Ballot and Russ Meller
Physical Internet: PI, π
2012-04-05, 22/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Positioning the Physical Internet
World Wide Web (WWW)
Digital Internet Digital information Packets
Open Supply Web
Physical Internet Smart Physical Packets
Connecting Physical objects through WWW
Internet of Things Smart Networked Objects
Smart Grid
Energy Internet
Energy Packets
Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org
2012-04-05, 23/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Key Features of the Physical Internet Vision
1. Aim toward universal interconnectivity 2. Aim for a unified multi-scale conceptual framework 3. Aim for webbed reliability and resilience of networks
4. Encapsulate merchandises in world-standard green modular containers 5. Evolve from material to container handling & storage systems 6. Exploit smart networked containers embedding smart objects
7. Activate and exploit an open global mobility web 8. Activate and exploit an open global supply web 9. Deploy capability certifications and open performance monitoring
10. Design products fitting containers with minimal space waste 11. Minimize physical moves and storages by digitally transmitting knowledge
and materializing products as locally as possible
12. Stimulate business model innovation 13. Enable open infrastructural innovation
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
2012-04-05, 24/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
1. Aim toward universal interconnectivity
High-performance logistic centers, movers and systems, making it fast, cheap, easy and reliable
to interconnect physical objects through modes and routes,
with an overarching aim toward universal interconnectivity
What are the design aims of the Physical Internet?
2012-04-05, 25/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
2. Aim for a unified multi-scale conceptual framework
Intra-Center Inter-Processor Network
What are the design aims of the Physical Internet?
2012-04-05, 26/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Intra-Facility Inter-Center Network
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2012-04-05, 27/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Intra-Site Inter-Facility Network
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2012-04-05, 28/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
-transits & -hubs Intra-City Inter-Site Network
Toward -enabled
sustainable
city logistics
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2012-04-05, 29/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, Canada
North eastern states, U.S.A.
Intra-State Inter-City Network
-transits & -hubs
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2012-04-05, 30/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2012-04-05, 31/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
3. Aim for webbed reliability and resilience
The overall Physical Internet network of networks should warrant its own reliability
and that of the physical objects flowing through it
Network webbing and the multiplication of nodes should allow the Physical Internet to insure its own robustness
and resilience to unforeseen events
For example, if a node or a part of a network fails, the traffic should be easily reroutable,
as automatically as possible
Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
What are the design aims of the Physical Internet?
2012-04-05, 32/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
3. Aim for webbed reliability and resilience
The Physical Internet’s actors, movers, routes, nodes and flowing containers should interact in synergy to guarantee:
– The integrity of physical objects encapsulated in -containers
– The physical and informational integrity of -containers, -movers, -routes and -nodes
– The informational integrity of -actors (humans, software agents)
– The robustness of client-focused performance in delivering and storing -containers. Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
What are the design aims of the Physical Internet?
2012-04-05, 33/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
4. Encapsulate merchandises in world-standard green modular containers
• Merchandise is unitized as content of a -container and is not dealt with explicitly by the Physical Internet
• Modular dimensions from cargo container sizes down to tiny sizes • Conceived to be easily flowed through various
transport, handling and storage modes and means • Easy to handle, store, transport, interlock, load, unload, construct and
dismantle, compose and decompose • Environment friendly materials with minimal off-service footprint • Smart tag enabled, with sensors if necessary, to allow their proper
identification, routing and maintaining • Various usage-adapted structural grades • Conditioning capabilities (e.g. temperature) as necessary • Sealable for security purposes
What are the enabling constituents of the Physical Internet?
2012-04-05, 34/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
-Containers modularized and standardized worldwide in terms of dimensions, functions and fixtures
! "#$%&'&(&)&*+& ! "#$%&'&(&)&*++&
! "#$%&'&(&)&*, +&
X
Y
Z
Illustrative
modular
dimensions
0,12 m
0,24 m
0,36 m
0,48 m
0,6 m
1,2 m
2,4 m
3,6 m
4,8 m
6 m
12 m
B. Montreuil, B. Gilbert
What are the enabling constituents of the Physical Internet?
2012-04-05, 35/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Decomposi
on
Composi
on
-Containers designed for the Physical Internet Easy to load, unload, handle, store, transport, seal, snap, interlock, construct,
dismantle, panel, compose and decompose
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
What are the enabling constituents of the Physical Internet?
2012-04-05, 36/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Key features of -containers
Snappable
Reusable Recyclable
Easy-to-dismantle
Traceable, Routable
Securable
Original drawing by Eric Ballot, Mines ParisTech,2011-06-27, adapted by Benoit Montreuil
What are the enabling constituents of the Physical Internet?
2012-04-05, 37/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
-container moving and storage means and systems, with innovative technologies and processes exploiting the characteristics of -containers to enable their fast, cheap, easy and reliable
input, storage, composing, decomposing, monitoring, protection and output
through smart, sustainable and seamless automation and human handling
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
5. Evolve from material to -container transport, handling & storage means and systems
What are the enabling constituents of the Physical Internet?
2012-04-05, 38/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
-container handling and storage systems: – Enable fast and reliable input and output performance – Have seamless interfacing with vehicles and systems
moving products in and out, as well as client software systems for tracking and interfacing with the containers
– Monitor and protect the integrity of -containers – Secure the containers to the desired level – Provide an open live documentation of their specified performance
and capabilities and of their demonstrated performance and capabilities, updated through ongoing operations
This applies in currently-labeled distribution centers, crossdocking centers, train stations, multimodal hubs, seaports, airports, and so on
What are the enabling constituents of the Physical Internet?
5. Evolve from material to -container transport, handling & storage means and systems
2012-04-05, 39/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
6. Exploit smart networked containers embedding smart objects
Exploiting as best as possible the capabilities of smart -containers
connected to the Digital Internet and the World Wide Web,
and of their embedded smart objects, for improving performance as perceived by the clients
and overall performance of the Physical Internet
What are the enabling constituents of the Physical Internet?
2012-04-05, 40/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet and the Internet of Things
Image: http://www.globetracker.biz/GlobeTracker/News.asp
The Internet of Things is about enabling ubiquitous connection with physical objects equipped with smart connective technology (RFID, GPS, Internet, etc.), making the objects ever smarter and enabling distributed self-control of objects through networks
The Physical Internet is to exploit as best as possible the Internet of Things to enable the ubiquitous connectivity of its -containers and -systems
2012-04-05, 41/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Multi-segment travel
from Quebec to Los Angeles
Québec
Montréal
Alexandria Bay, US border
Syracuse
Buffalo
Cleveland
Columbus
Indianapolis
St-Louis
Springfield
Tulsa
Oklahoma City
Amarillo
Albuquerque
Flagstaff
Needles
Barstow
Los Angeles
20
20-401
81
90
90
71
70
70
44
44
44
40
40
40
40
40
15-10
Distance travelled one-way: 5030 km 5030 km Drivers: 1 17 Trucks: 1 17 Trailer: 1 1 One-way driving time (h): 48 51+ Return driving time (h): 48+ 51+ Total time at transit points (h): 0 9 Total trailer trip time from Quebec to LA (h): 120 60+ Total trailer trip time from LA to Quebec (h): 120+ 60+ Total trailer round trip time (h): 240+ 120+ Average driving time per driver (h): 96+ 6 Average trip time per driver (h): 240+ 6,5
Current P2P
Proposed Distributed
7. Activate and exploit an open global mobility web From point-to-point hub-and-spoke transport to distributed multimodal transport
What are the targets of the Physical Internet?
2012-04-05, 42/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Transportation between nodes + Handling within nodes : About Moving Objects
An interconnected set of open unimodal & multimodal hubs, transits & ports
7. Activate and exploit an open global mobility web
Maritime route Highway
Road
Railroad
Open multimodal π-hub & π-transit zone
Open unimodal π-hub & π-transit zone
Open π-Port Air route
What are the targets of the Physical Internet?
2012-04-05, 43/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
-transit sites allowing distributed
multi-segment transport through the Physical
Internet
:π-containers
:π-carrier
:π-vehicle
:π-bay
B1
B2
B3
B4
B5
B6
B7
B8
B9
B10
C1
C2
C3
C4
C5
C6
C7
C8
C9
V12
V8
V13
V6
Status of ! -carr iers currently in ! -transit"
! -carr ier ! -bay I ncoming deposit Outgoing pickup estimation
! -vehicle T ime ! -vehicle T ime (min, mode, max)
C1 B2 V1 04:35 V14 (06:04, 06:05, 06:15)
C2 B10 V3 05:15 V15 (06:05, 06:09, 06:12)
C3 B7 V4 05:20 V13 (06:04, 06:07, 06:10)
C4 B9 V6 05:35 V11 (06:02, 06:02, 06:02)
C5 B3 V8 05:45 V12 (06:01, 06:01, 06:01)
C6 B4 V9 05:48 V16 (06:10, 06:12, 06:18)
C7 B6 V11 05:55 V19 (06:15, 06:20, 06:30)
C8 B1 V12 05:58 V18 (06:10, 06:15, 06:20)
C9 B10 V13 06:00 V25 (06:20, 06:30, 06:45)
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
7. Activate and exploit an open global mobility web
2012-04-05, 44/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Water
Road
Road-Water -hub designed for enabling
distributed multi-segment intermodal transport
of -containers through the Physical Internet
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
7. Activate and exploit an open global mobility web
Ocean, Sea or River
2012-04-05, 45/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
8. Activate and exploit an Open Global Supply Web
An open supply web composed of an open distribution web coupled to an open realization web
enabling producers, distributors and retailers to dynamically deploy their -container-embedded products
in multiple geographically dispersed centers, realizing and deploying them
for fast, efficient and reliable response delivery to distributed stochastic demand
for their products, services and/or solutions
References: Montreuil B., Labarthe, O., Hakimi, D., Larcher, A., & Audet, M. Supply Web Mapper. Proceedings of Industrial Engineering and Systems Management, Conference, IESM, , Conference Montréal, Canada, May 13-15, 2009 Hakimi D., B. Montreuil, O. Labarthe, “Supply Web: Concept and Technology”, 7th Annual International Symposium on Supply Chain Management, Conference Toronto, Canada, October 28-30, 2009Montreuil, B.,
Hakimi, D. , B. Montreuil, O. Labarthe, ”Supply Web Agent-Based Simulation Platform” Proceedings of the 3rd International Conference on Information Systems, Logistics and Supply Chain Creating value through green supply chains, ILS 2010 – Casablanca (Morocco), April 14-16<.
Enabling Physical Equivalents of
Intranets, Virtual Private Networks,
Cloud Computing and Cloud Storage
What are the targets of the Physical Internet?
2012-04-05, 46/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone
Air route
What are the targets of the Physical Internet?
Open Distribution Web About Deploying Objects
An interconnected set of open warehouses and distribution centers
2012-04-05, 47/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Reference: Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
Most companies design, run and optimize
independently
their private distribution networks,
investing in DCs
or engaging in long-term leases or contracts
There are 535 000
distribution centers
in the U.S.A. only
Most of them are used by a single company
Most companies use less than 20 DCs
Imagine the potential
if each company could deploy
its products through a open web
including 535 000 open DCs in the USA
Activate and exploit
an Open Global
Distribution Web
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply web with a high density of open DCs
available to many other clients
Firm dedicated factories: 4
Firm dedicated DCs: 0
Group shared DCs: 0
Open DCs used: 60+
D2C max: 0 mean: 0,00
F2D max: 12 mean: 4,75
Firm dedicated factories: 4
Firm dedicated DCs: 0
Group shared DCs: 3
D2C max: 3 mean: 1,48
F2D max: 10 mean: 4,39
Firm dedicated factories: 4
Firm dedicated DCs: 0
Group shared DCs: 16
D2C max: 3 mean: 1,08
F2D max: 9 mean: 4,36
Factories: 4
Firm dedicated DCs:16
D2C max: 3 mean: 1,75
F2D max: 9 mean: 3,92
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,73
F2D max: 8 mean: 4,11
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,78
F2D max: 7 mean: 3,00
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,75
F2D max: 7 mean: 3,69
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,73
F2D max: 9 mean: 4,88
Shared supply web with independently
implemented DCs
Shared supply web with jointly
implemented DCs
Independent private
supply networks
Inter-region transport induced lead timesF2D: Factory to DC lead time
D2C: DC to client region lead time
1
2
3
4
3
2
4
1
1
2
3
4
3
2
4
1
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Port
Maritime route
Highway
Road
Railroad
Open π-factory zone
Air route
What are the targets of the Physical Internet?
Open Realization Web About making, assembling, personalizing & retrofitting objects
An interconnected set of open production, personalization & retrofit centers, indeed of open factories of any type
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Open Supply Web The union of open distribution web & open realization web
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone
Open π-factory zone Air route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
+
vs
=
Supplynetwork2
Supplynetwork1
SupplyWeb1U2
Opensupplywebexploitedby1and2
+
=
≠
Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked operations, Proc. of SOHOMA 2011
What are the targets of the Physical Internet?
Open Supply Web
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply web with a high density of open DCs available to many other clients and shared factories among the four firms
Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 0 Open DCs used: 60+ Mean DC-to-region lead time: 0 Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 2 Max factory-to-DC lead time: 4
Open supply web with a high density of open distribution and production centers available to many other clients
Firm dedicated factories: 0 Group shared factories: 0 Open factories used: 64+ Firm dedicated DCs: 0 Group dedicated DCs: 0 Open DCs used: 64+ Mean DC-to-region lead time: 0 Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 0 Max factory-to-DC lead time: 0
* Inter-region transport induced lead times
Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 16 Mean DC-to-region lead time: 1,08 Max DC-to-region lead time: 3 Mean factory-to-DC lead time: 1,11 Max factory-to-DC lead time: 3
Shared supply web with shared factories
and independently implemented shared DCs
Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 3 Mean DC-to-region lead time: 1,48 Max DC-to-region lead time: 3 Mean factory-to-DC lead time: 0,83 Max factory-to-DC lead time: 3
Shared supply web with shared factories
and jointly implemented shared DCs
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Open Logistics Web The union of Open Mobility Web and Open Supply Web
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone Open π-factory zone
Open multimodal π-hub & π-transit zone
Open unimodal π-hub & π-transit zone
Air route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Open Realization web
Open Distribution web
Open Mobility Web
Open Supply Web
About making, assembling, personalizing & retrofitting objects
An interconnected set of open warehouses and distribution
centers
An interconnected set of Open Unimodal & Multimodal Hubs, Transits & Ports
Open Logistics
Web
An interconnected set of open production, personalization &
retrofit centers, indeed of open factories of any type
About Deploying Objects
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone Air route
Open π-factory zone Open multimodal π-hub & π-transit zone
Open unimodal π-hub & π-transit zone
Transportation between nodes + Handling within nodes : About Moving Objects
The union of open distribution
web & open realization web
The union of Open Mobility Web and Open
Supply Web
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Live open monitoring of really achieved performance of all PI certified actors and entities,
on key performance indices on critical facets such as speed, service level, reliability, safety and security
Such live performance tracking is openly available worldwide
to enable fact-based decision making and stimulate continuous improvement
Open information is to be provided in respect
of confidentiality of specific transactions
9. Deploy capability certifications and open performance monitoring
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Multi-level Physical Internet capability certification of containers, handling systems, vehicles,
information systems ports, distribution centers, roads, cities and regions, protocols and processes,
and so on
How can stakeholders help the Physical Internet thrive?
9. Deploy capability certifications and open performance monitoring
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Products designed and engineered to minimize the load and burden
they generate on the Physical Internet, with their dimensions adapted
to standard container dimensions, with maximal volumetric and functional density
while containerized
Reference: Seliger G., “Sustainability in Manufacturing - Recovery of Resources in Product and Material Cycles” (Ed. by Günther Seliger, Sringer Verlag, 2007
10. Design products fitting containers with minimal space waste
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Product dimensions adapted to the standard container dimensions – So that the packaged product fits in a small footprint container
In order to avoid moving and storing air, products should be designed and engineered so as to have maximal volumetric density while being in Physical Internet containers, extendable to their usage dimensions when necessary
Products should be designed so that only key components and modules have to travel extensively through the Physical Internet: – Easy to be completed near point of use using locally available objects
Products having to move through the Physical Internet should be as functionally dense as possible when in the containers – Functional density of an object can be expressed as the ratio of its useful
functionality over the product of its weight and volume
10. Design products fitting containers with minimal space waste
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
11. Minimize physical moves and storages by digitally transmitting knowledge
and materializing products as locally as possible through the open realization web
Exploiting extensively the knowledge-based dematerialization of products
and their materialization in physical objects at point of use
As it will gain maturity, the Physical Internet is expected to be connected to
ever more open distributed flexible production centers capable of locally realizing (make, assemble, finish) for clients
a wide variety of products from digitally transmitted specifications,
local physical objects and, if needed, critical physical objects brought in from faraway sources
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
12. Stimulate business model innovation
Innovative business models for commercializing
Physical Internet enabled offers by various parties, including revenue models for the various actors
What are to be the -enabled equivalents of
Amazon, eBay and Google?
How are the manufacturers, distributers, retailers,
transporters, logistics providers and solutions providers
going to evolve so as to best exploit the Physical Internet?
How are business and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Remunerating the Players
In the Digital Internet, the transmission of information is remunerated mostly through bundled flat fees due to the quasi nil marginal costs
In the Physical Internet, the transmission of a container generates non negligible costs for each of the operators having taken charge of some part of the transmission
It is thus necessary to define business models for commercializing offers as well as operator revenue models
– There currently exist examples paving the way to realize this, notably in the airline industry
12. Stimulate business model innovation
How are business and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Systemic coherence and means interoperability must enable the transparent usage of
heavy handling, storage and transport means currently existing or to come in the future,
that are currently so hard to use, reducing their potential positive environmental impact
The Physical Internet homogeneity in terms of
container modules encapsulating objects should allow a much better utilization of means,
thus increasing the capacity of infrastructures by the exploitation of
standardizations, rationalizations and automations through currently unreachable innovations
13. Enable Open Infrastructural Innovation
How are infrastructures and the Physical Internet
synergizing each other?
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives in line with the Physical Internet
http://www.ilookforwardto.com/2010/12/foodtubes-really-fast-food-delivered-in-a-physical-Internet-of-underground-pipes.html http://www.cargocap.com/content/what-is-cargocap
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Key Features of the Physical Internet Vision
1. Aim toward universal interconnectivity 2. Aim for a unified multi-scale conceptual framework 3. Aim for webbed reliability and resilience of networks
4. Encapsulate merchandises in world-standard green modular containers 5. Evolve from material to container handling & storage systems 6. Exploit smart networked containers embedding smart objects
7. Activate and exploit an open global mobility web 8. Activate and exploit an open global supply web 9. Deploy capability certifications and open performance monitoring
10. Design products fitting containers with minimal space waste 11. Minimize physical moves and storages by digitally transmitting knowledge
and materializing products as locally as possible
12. Stimulate business model innovation 13. Enable open infrastructural innovation
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet addressing logistics inefficiency and unsustainability symptoms
1 2 3 4 5 6 7 8 9 10 11 12 13
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1 We are shipping air and packaging
2 Empty travel is the norm rather than the exception
3 Truckers have become the modern cowboys
4Products mostly sit idle, stored where unneeded, yet
so often unavailable fast where needed
5 Production and storage facilities are poorly used
6 So many products are never sold, never used
7 Products do not reach those who need them the most
8Products unnecessarily move, crisscrossing the
world
9Fast and reliable intermodal transport is still a dream
or a joke
10Getting products in, through and out of cities is a
nightmare
11 Networks are neither secure nor robust
12 Smart automation and technology are hard to justify
13 Innovation is strangled
Inefficiency and unsustainability
symptoms
Key Features of the Physical Internet
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Realizing the Vision
Evolving towards a worldwide Physical Internet
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet Global systemic sustainable vision
stimulating and aligning action around the world
Individual initiatives by businesses, industries and governments are necessary but are not sufficient
There is a need for a macroscopic, holistic, systemic vision offering
a unifying, challenging and stimulating framework
There is a need for an interlaced set of global and local initiatives
towards this vision, building on the shoulders of current assets and projects,
to help evolve from the current globally inefficient and unsustainable state
to a desired globally efficient and sustainable state
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Implementation Progressive Deployment, Cohabitation and Certification
The widespread development and deployment
of the Physical Internet
will not be achieved overnight in a Big-Bang logic
but rather in an ongoing logic
of cohabitation and of progressive deployment,
propelled by the actors
integrating gradually the Physical Internet ways
and finding ever more value in its usage and exploitation
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
A smooth transition starting with rethinking and retrofitting phases, then moving toward more transformative phases
The Physical Internet can constitute itself progressively through the multi-level certification of: – Protocols
– Containers
– Handling and storage technologies, distribution centers, production centers, train stations, ports, multimodal hubs
– Information systems (e.g. reservation, smart labels, portals)
– Urban zones and regions, inter-country borders
Physical Internet Implementation Progressive Deployment, Cohabitation and Certification
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Conclusion (1/2)
This manifesto has outlined a bold paradigm breaking vision for the future of
how we handle, store, transport, realize, supply and use physical objects across the world
It proposes to exploit the Internet, which has revolutionized the digital world,
as an underlying metaphor for steering innovation in the physical sphere
The outlined Physical Internet does not aim to copy the Digital Internet,
but to inspire the creation of a bold systemic wide encompassing vision
capable of providing real efficient and sustainable solutions to the problems created by our past and current ways
and by our vision toward which we should aim
2012-04-05, 71/72
Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
With this manifesto and its underlying research, a small step has been made
A lot more are needed to really shape this vision and, much more important,
to give it flesh through real initiatives and projects so as to really influence in a positive way
our collective future
This requires a lot of collaboration between academia, industry and governments
across localities, countries and continents
Your help is welcome
Conclusion (2/2)
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Physical Internet Manifesto, version 1.10.1 Professor Benoit Montreuil, CIRRELT, Université Laval
Questions and comments are welcome
Questions et commentaires sont les bienvenus
Fragen und Kommentare sind willkommen
Las preguntas y los comentarios son bienvenidos
www.physicalinternetinitiative.org