www.sustainableroadfreight.org

The Physical Internet:

Is it all PI in the Sky

Dr Andrew Palmer

Centre for Sustainable Road Freight

SCL Event, Whittlebury Hall 30th September 2015

Centre for Sustainable Road Freight: A Unique Collaboration…

OperationsTechnology

Policy

SMMT*

Low Carbon Vehicle Partnership*

Cambridge University Engineering DepartmentInternationally leading capability in heavy vehicle engineering

Heriot-Watt University

A world leader in logistics

CILT*

Department for Transport *

Transport for London*

* Advisory Committee Member

0

20

40

60

80

100

120

140

160

180

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

bil

lio

n e

uro

% Load factor

% Load factor (estimated)

% Road efficieny

% empty running (km)

Cost of inefficiency

Over 10 years, Zero Improvement in

Road Freight Efficiency

% Load factor

% Empty truck (km)

% Road efficiency

The EU Vision

EU Transport Policy Vision (EC 2011):

Reduce Europe's dependence on imported oil

Cut carbon emissions in transport by 60% by 2050

Modal shift: 30% off road by 2030 – 50 % by 2050

Multi-modal: European corridor network (low carbon/green)

CO2-free movement of goods in major urban centres by 2030

White Paper 2011: Roadmap to a Single European Transport

Area - Towards a competitive and resource efficient transport

system

Inefficiency and Unsustainability Symptoms

Future Supply Chain 2016

• Global Commerce Initiative & Capgemini

• Joint work of 24 major FMCG companies

• New sustainable supply chain architecture:

collaborative warehousing and distribution

The Physical Internet

Source: Physical Internet Manifesto, Montreuil,B, 2012

Source: Gary Forger, MHI

In the USA

In China

ETP - ALICE

Optimal use of assets and infrastructure

resources

Horizontal and vertical pooling

of resources

Open Integrated networks

Modular logistic unitssystem

Create a more efficient, sustainable supply network by using Horizontal and Vertical Collaboration & smoother supply chain interfaces

Vis

ion

enab

lers

Physical Internet

Secure informationsharing

ALICE themes

Sustainable, safe & secure supply chains

Corridors, hubs & synchromodality

Information systems

Collaboration between supply chains

Urban freight

Alignment & convergenceleading to the physical internet

The ALICE Π movie

The ALICE Roadmap

PI is Predicted to Reduce Costs and

Emission Levels – and Reorganise Flows

π: Main Innovations

The π container (“physical encapsulation”) and handling material

Open market for transportation

Standards logistics service protocols (OLI model)

Interfaces between manufacturing and services

Capability certification & performance monitoring

Optimised space Open networks & pooled resources

Less networkcomplexity

Modular boxsystem

Modular dimensions from cargo container size to tiny

Vis

ion

Source: Physical Internet Manifesto, Montreuil,B, 2012

Standard Logistics Service Protocols

Source: Physical Internet Manifesto, Montreuil,B, 2012

Source: Physical Internet Manifesto, Montreuil,B, 2012

Towards an Effective Roadmap:

ICT Implications

Towards an Effective Roadmap:

Collaboration Factors

• Operational Synergy

Products

Transport

Processes

• Corporate environment Culture

Managerial philosophy

Key people

Environmental attitudes

• Collaboration climate Business objectives

Level of trust

Resources

• Components of collaboration Joint planning

Communications/systems

Financials

Risk sharing

Entry & exit rules

Contracts

Conclusion

A lot more is needed to really shape this

vision and to give it flesh through real

initiatives and projects so as to positively

influence our collective future

The Physical Internet : Not a Utopia, not a Big-Bang

Source: Physical Internet Manifesto, Montreuil,B, 2012

More Information

www.etp-alice.org

www.physicalinternetinitiative.org

www.sustainableroadfreight.org

The Physical Internet:

Is it all PI in the Sky

Thank You

SCL Event, Whittlebury Hall 30th September 2015

Scope of the Decarbonisation Effort

Logistics System Design

Vehicle Maintenance

Driving

Vehicle Loading

Vehicle Routing and Scheduling

Vehicle

Technology

Supply Chain Structure

emissions per vehicle-km

total emissions

totalvehicle-kms

The Physical Internet

Source: Luo Hao Shenzhen University

The future of logistics…open networks?

35

+

Sustainable, Safe and SecureSupply Chains

Sustainability

Enabling IT

Product system redesign

Flow efficiency

Functional/circular

economy

Security

Enabling IT

Risk management

concepts

Collaboration and

recognition

Corridors, Hubs andSynchromodality

Supply chain networks

• New demands of shippers

• EU as Hinterland of global chains

Transport services network

• Seamless exchange between modes

• ICT driven planning, booking, operations

Infrastructure network

• Hubs’ role in EU network

• Role of technology in integration

ICTBusinessModels Technology

Information Systems forInterconnected Logistics

Global Supply NetworkCoordination and Collaboration

Collaborative transport network design and operation

Design approaches for collaborative networks

Real time supply network optimization

Order and transport planning alignment in open networks

Overcoming data sharing issues

Integration of flexible manufacturing and open logistics networks

Understanding flexible manufacturing needs

Re-designing logistics networks

Drivers and enablers for collaboration and coordination

kg

m3Capacity cube

Cap

acity we

ight

Urban Freight Research

Integrating freight activities in city transport

Business models and new services

Safety and security

Cleaner and more efficient vehicles

ALICE – Expected Impacts from PI

P&G TINA CUBE

Mixing light & Heavy Products

Light goods: Only 25% ofweight limit

Heavy goods: Only 40% of volume limit

Source: ALICE / P&G