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Special theme Planning and Logistics ERCIM NEWS Number 105 April 2016 Research and Innovation: Business Process Execution Analysis through Coverage-based Monitoring by Antonello Calabrò, Francesca Lonetti, Eda Marchetti, ISTI-CNR www.ercim.eu Also in this issue: Keynote: Trends and Challenges in Logistics and Supply Chain Management by Henk Zijm, Professor of Production and Supply Chain Management, University of Twente

Special theme Planning Logistics - Universiteit Twente

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Special theme

Planning and

Logistics

ERCIM NEWSNumber 105 April 2016

Research and Innovation:

Business Process Execution

Analysis through Coverage-based

Monitoring

by Antonello Calabrò, Francesca

Lonetti, Eda Marchetti, ISTI-CNR

www.ercim.eu

Also in this issue: Keynote:

Trends and Challenges in Logistics

and Supply Chain Management

by Henk Zijm, Professor of

Production and Supply Chain

Management, University of Twente

ERCIM News is the magazine of ERCIM. Published quarterly, it reports on

joint actions of the ERCIM partners, and aims to reflect the contribution

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ISSN 0926-4981

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Cover photo by courtesy of Electrocomponents plc.

Editorial Information

ERCIM NEWS 105 April 2016

ERCIM NEWS 105 April 2016

Keynote

3

Henk�Zijm,

Professor�of

Production�and

Supply�Chain

Management,

University�of

Twente

or management and urban planning orland-use management. In addition, dueto both political conflicts and natural dis-asters, the importance of humanitarianlogistics can hardly be overestimated.

But also consumer behaviour is changingrapidly, demonstrated for instance by therapid advance of e-commerce, with aprofound impact on both forward andreverse logistics and supply chains.Clearly, the continuous pressure on fastdelivery is only possible by an excel-lently functioning logistics network.

Fortunately, technological innovationsare expected to at least partially addresssome of these challenges. The design ofnew and lightweight (bio-)materials,miniaturization and de-materializationof products helps to diminish both theircosts and ecological footprint.Technologies like 3D-printing andmicro-machining are also a step forwardtowards mass-customization but in addi-tion have a profound logistic impact, forinstance in stimulating “local for local”production, thereby also reducing so-called anticipation (safety) stocks,because they allow production at theplace and time needed.

But also the impact of robotics willchange the logistics landscape consider-ably, as it did already in automotiveassembly lines and automatic storageand retrieval systems, assisted by digitaldynamic identification systems such asRFID, and all controlled by innovativewarehouse management systems.Similar developments are found at con-tainer terminal sites in both seaports andinland harbors. Without exception, suchsystems rely heavily on smart sensor andactuator systems, evolving towards theso-called Internet of Things (IoT). Thesame IoT is currently innovating bothpassenger and freight transport rapidly;vehicle transportation in 2050 is foreseento be largely unmanned transportation.

But technological innovation is only apart of the story; at least equally impor-tant is the development of smart busi-ness models based on joint responsibili-ties and fair allocation of revenuesinstead of on individual profit maxi-

mization. Complex modern supplychains are first and foremost character-ized by the fact that many stakeholdersare involved in shaping its ultimate man-ifestation, not only shippers and logisticservice providers but also the financialsector and governmental agencies, andultimately the customer. Such systemsrequire adequate planning and controlmechanisms, including distributedarchitectures, cloud computing solu-tions, cognitive computing and agent-based decision support systems. Therecent attention for data driven models(big data analytics) marks an importantfurther step towards full-blown auto-mated decision architectures.

Multi-stakeholder systems aiming atcooperation between essentiallyautonomous companies require toolsthat essentially draw on game-theoret-ical concepts. But the key idea - estab-lished in the Nash equilibrium theory -that players may have to give up theirindividual optimal solution in order toachieve an overall stable equilibriumsolution is still hard to accept in partic-ular for private companies that wereused to concentrate on their individualprofits. This is perhaps the biggesthurdle to be taken to arrive at sustain-able logistics; it involves not only smartbusiness solutions but more important achange of mind. and indeed trust in thevalue of collaboration.

A similar change of mind is requested toimplement ideas of re-use of products orcomponents, both via (electronic)second markets or directly from disman-tling disposed products in closed loopsupply chains, as an example of the cir-cular economy. Also, the rising attentionfor sharing economy concepts (as e.g. incar sharing, cloud computing, musicstreaming) may have important conse-quences for supply chain design, plan-ning and control in that the focus will atleast partially switch from deliveringproducts to delivering services.

Trends and Challenges in Logistics

and Supply Chain Management

by Henk Zijm

In today’s global economies, logistics isa key facilitator of trade, and hence animportant factor in rising prosperity andwelfare. Natural resources are scarce andnot evenly distributed in terms of typeand geographical location in the world.Logistic chains enable the distribution ofmaterials, food and products from thelocations where they are extracted, har-vested or produced to people’s homesand nearby stores. At the same time, cur-rent logistics systems are fundamentallyunsustainable, due to the emission ofhazardous materials (CO2, NOx, particu-late matter), congestion, stench, noiseand the high price that has to be paid interms of infrastructural load. Things areeven getting worse: while the EuropeanCommission has set (not achieved) tar-gets to reduce Greenhouse GasEmissions (GGE) in 2015 to 60 % ascompared to 1990, the percentage oftransport related GGE increased from 25 % in 1990 to 36 % today.

The still growing world populationstresses the need to further increase pro-ductivity while at the same time dimin-ishing the ecological and societal foot-print. This requires a quality upgrade ofthe human resource pool by better educa-tion and training, including lifelonglearning programs. Productivity can alsobe improved by better support tools,easier access to relevant information, andfurther automation of both technicalprocesses (i.e. robotics) and decisionmaking (artificial intelligence). The sametools might also help to reduce border-crossing logistics systems’ vulnerabilityto crime and illicit acts, such as theft,organized immigration crime (humantrafficking) and customs law violations.

The continuing urbanization poses a fur-ther challenge. The development ofwealth in Asia and Latin America hasresulted in a huge shift from agriculturaland nomadic forms of living to urbanlife. More and more cities with over tenmillion inhabitants have emerged,requiring different modes of transportand logistics systems than availabletoday. There is an increasing interde-pendency between supply chain design