Physical internet manifesto 1.9 2011 04-21 english bm
Physical internet manifesto eng version 1.11.1 2012-11-14 bm_ml
1. Physical Internet Manifesto
Transforming the way physical objects
are moved, stored, realized, supplied and used,
aiming towards greater 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 1.11.1: 2012-11-14
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 1/76
2. Acknowledgements
The Physical Internet Manifesto has greatly benefited from
the contributions of esteemed colleagues and doctoral students
America
CIRRELT Research Center:
• Teodor Crainic - UQAM
• Michel Gendreau - Université de Montréal
• Driss Hakimi, Mustapha Lounès, Jacques Renaud, Helia Sohrabi - Université Laval
CICMHE, College-Industry Council for Material Handling Education:
• Russ Meller – CELDi, University of Arkansas
• Kevin Gue & Jeff Smith – Auburn University
• Kimberley Ellis –CELDi, Virginia Tech
• Leon McGinnis – Georgia Tech
• Mike Ogle – MHIA
Europe
• Éric Ballot, Frédéric Fontane, Shenle Pan, Rochdi Sarraj – Mines ParisTech
• Rémy Glardon – EPFL
• Rene De Koster – Erasmus University
• Olivier Labarthe – IUT Bordeaux Montesquieu
• Detlef Spee – Fraunhofer Institute for Material Flow and Logistic
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 2/76
3. Manifesto Outline
Global Logistics Sustainability Grand Challenge
Envisioning the Physical Internet
Enabling a Logistics Web
Toward Realizing the Vision
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 3/76
4. Sample of companies contributing to
the Physical Internet Initiative
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 4/76
5. At face value, logistics seems to be doing great!
Logistics is the backbone sustaining our lifestyle
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 5/76
6. At face value, logistics seems to be doing great!
Logistics is the backbone sustaining eBusiness
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 6/76
7. At face value,
logistics
seems to be doing great!
Container Logistics
is the backbone
sustaining
the
globalization
of world trade
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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8. Yet we have to face a harsh fact
Logistics inefficiency and unsustainability claim
The way physical objects are
moved, stored, realized, supplied and used
throughout the world
is economically, environmentally and socially
inefficient and unsustainable
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 8/76
9. Why do we need to change ?
Logistics inefficiency and unsustainability
ECONOMIC
Logistics: 5-15% burden on GDP of most countries
worldwide logistics costs grow faster than world trade
ENVIRONMENT
One of the heaviest greenhouse gas generators,
energy consumers, polluters and materials wasters
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 European Commission: A Roadmap for moving to a competitive low carbon economy in
Too often precarious logistic work conditions 2050, Office of the European Union, Brussels, 16p. (2011)
Serveau, L.T. : Inventaire des émissions de polluants dans l’atmosphère en France. In:
SECTEN, Citepa, Paris (2011)
European Commission: EU energy and transport in figures. Statistical Pocketbook, (2009)
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 9/76
10. 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
10. Getting products in and out of cities is a nightmare
11. Logistics networks & supply chains 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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 10/76
11. Logistics inefficiency & 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: 56,8% full when not empty;
42,6% average utilization
2. Empty travel is the norm rather than the exception
• Vehicles & containers often return empty, or travel extra routes to find
return shipments (25% of travel), and 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
(very high turnover rate); Precarious family & social life, and personal health;
in general, logistic operators and material handling personnel have similar
precarious positions
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. Poorly / badly used production and storage facilities
• Most businesses invest in storage and/or production facilities that are lowly
used most of the times, or yet badly used, dealing with products which
would better be dealt elsewhere, forcing unnecessary travel
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12. Logistics inefficiency & unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
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; in the fresh food industry, products are wasted at an
alarming rate: 12% in transit, 25% at retail
Rusting new cars in disused airfield 7. Products do not reach those who need them the most
• This is specially true in less developed countries and disaster-crisis zones
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 still a dream
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
10. Getting products in, through and out of cities is a nightmare
Most cities are not designed and equipped for easing freight transportation,
handling & storage, making the feeding of businesses and citizens
in cities a nightmare
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 12/76
13. Logistics inefficiency & unsustainability symptoms
Leading Us Toward Hitting the Wall Real Hard
11. Logistics networks & supply chains 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
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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 13/76
14. Mapping inefficiency & unsustainability symptoms
to economical, environmental and societal facets
Environmental
Economical
Societal
Inefficiency and unsustainability symptoms
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
10 Getting products in and out of cities is a nightmare
11 Logistics networks & supply chains are neither secure nor robust
12 Smart automation & technology are hard to justify
13 Innovation is strangled
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 14/76
15. The Global Logistics Sustainability Grand Challenge
The Global Logistics Sustainability Grand Challenge
Design a system
to move, store, realize, supply and use
physical objects throughout the world
in a manner that is
economically, environmentally and socially
efficient and sustainable
Montreuil B. (2011) “Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge,” Logistics Research, 3(2-3), 71-87, 2011.
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 15/76
16. Eliciting the Overall Goal Toward
Global Logistics Efficiency and Sustainability
Environmental goal
Sustainably reduce by an order of magnitude the logistics-induced global
greenhouse gas emission, energy consumption, pollution & materials waste
Economic goal
Sustainably reduce by an order of magnitude
the global economic burden of logistics
while unlocking huge gains in business productivity
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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 16/76
17. The Digital Internet
Exploiting the Information Highway Metaphor
Decades ago the information & communications technology community
was stuck in a huge inefficient and unsustainable tangle
due to millions of unconnected computers
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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 17/76
18. Meeting the IT Grand Challenge
Building Upon the Information Superhighway Metaphor
Before: millions of unconnected computers – inefficient and unsustainable
After: millions of interconnected servers and computers to form
the “Information Superhighway”
Key Enabler: transmission of formatted data packets through
heterogeneous equipment respecting the TCP/IP protocol
Result: The Internet, the Web, the Mobile, the Apps,…
An open and interconnected distributed network infrastructure
Forever transforming industry, economy, culture and society at large
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 18/76
19. 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, 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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 19/76
20. Exposing Key Features
of the Physical Internet Vision
Evolving towards a worldwide Physical Internet
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 20/76
21. The Physical Internet
(PI, π)
The Physical Internet is an
open global logistics system
founded on physical, digital
and operational
interconnectivity
through encapsulation,
interfaces and protocols
The PI enables
an efficient, sustainable,
adaptable and resilient
Logistics Web
Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer.
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 21/76
22. Simplified Mental Image
of the Physical Internet
• Open market for goods
transportation (eBay-style)
• Handles only “black box”
modular containers
• Open and shared
transportation and
distribution networks
• Vast community of users
Seamless modular container consolidation in the Physical Internet
• Supplier certification and
B. Montreuil & C. Thivierge, 2011 ratings-by-users to drive
logistics performance
Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 22/76
23. Positioning the Physical Internet
World Wide Web (WWW)
Digital Internet
Digital Information Packets
Smart Grid
Connecting Physical Objects through WWW
Energy
Internet of Things Internet
Smart Networked Objects
Energy Packets
Open Logistics Web
Physical Internet
Smart Physical Packets
Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 23/76
24. Universal
Interconnectivity
High-performance logistic centers,
movers and systems,
making it seamless, easy, fast,
reliable and cheap
to interconnect physical objects
through modes and routes,
with an overarching aim toward
universal interconnectivity
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 24/76
25. Encapsulation
The Physical Internet
does not deal directly
with physical goods
It requires their
standardized encapsulation,
such as data packets in
the Digital Internet
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 25/76
26. Physical encapsulation
Physically encapsulate goods
in π-containers
that are modular,
ecofriendly, smart
and standardized worldwide
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 26/76
27. Physical encapsulation of goods in π-containers
Modular, ecofriendly, smart & standardized worldwide
• Merchandise is unitized as content of a π-container and is not dealt with explicitly by PI
• Modular dimensions from cargo container sizes down to tiny sizes
• Conceived to be easily flowed through various transport, handling & storage modes & means
• Easy to handle, store, transport, snap, interlock, load, unload, construct and dismantle,
compose and decompose
• Light, made of environment friendly materials, with minimal off-service footprint
• Smart tag enabled, with sensors if necessary: proper identification, routing and maintaining
• Various usage-adapted structural grades
• Conditioning capabilities as necessary (e.g. temperature)
• Sealable for security purposes
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 27/76
28. Physical encapsulation of goods in π-containers
World standard modular dimensions and fixtures
Illustrative potential
modular
dimensions
Y
Conceptual design by Benoit Montreuil and Marie-Anne Côté
X
Z
CIRRELT, Université Laval, Québec, Canada, 2012
0,12 m 0,1 m
0,24 m 0,2 m
0,36 m 0,3 m
0,48 m 0,4 m
0,6 m 0,5 m
0,6 m
1,2 m 1,2 m
2,4 m 2,4 m
3,6 m 3,6 m
4,8 m 4,8 m
6m 6m
12 m 12 m
Conceptual design illustrating É. Ballot, B. Montreuil, R.D. Meller
the dimensional modularity
of π-containers
The illustrated π-container design has a strictly conceptual and functional: it has no prescriptive technical design and engineering intent
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 28/76
29. Physically encapsulation of goods in π-containers
Easy to compose into composite containers, then to decompose
Conceptual design by Benoit Montreuil and Marie-Anne Côté
CIRRELT, Université Laval, Québec, Canada, 2012
Conceptual design illustrating
the composition functionality
of π-containers
The illustrated π-container design has a strictly conceptual and functional: it has no prescriptive technical design and engineering intent
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 29/76
30. The spatial impact of modular encapsulation
Consumer Product Goods
258 case sizes Company
494 products
268 shelf packages
At the case level, there is
Using only of modular a net increase of 10%
dimensions (<15)
Here, no change in
the shape of products.
The number of products by case
is allowed to vary by + or - 10%. At the pallet level,
Experiment limited to cases rather
than π-containers to focus on modularity there is a net savings of 10%!
Meller, R. D., Lin, Y.-H., and Ellis, K. P., “The Impact of Standardized Metric Physical Internet Containers on the Shipping Volume of Manufacturers,”
in Proceedings of the 14th IFAC Symposium on Information Control Problems in Manufacturing, Bucharest – Romania, (2012).
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 30/76
31. Design products fitting containers with minimal space waste
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
• Maximal volumetric and functional density
while being in Physical Internet containers,
extendable to their usage dimensions when necessary
– Functional density of an object can be expressed
as the ratio of its useful functionality
over the product of its weight and volume
• Only key components and modules
have to travel extensively
– Easy to be completed near point of use Source: guim.fr
using locally available objects
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 31/76
32. Digital encapsulation
Exploiting as best as possible
the capabilities of smart π-containers
connected to the Digital Internet
and the World Wide Web,
and of their embedded smart objects,
for improving the performance
as perceived by the clients
and the overall performance
of the Physical Internet
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 32/76
33. Physical Internet and the Internet of Things
The Internet of Things is about enabling
ubiquitous connection with physical objects
equipped with smart connective technology
(RFID, GPS, sensors, 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
Image: http://www.globetracker.biz/GlobeTracker/News.asp
of its π-containers and π-systems
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 33/76
34. Interfaces optimized for
universal interconnectivity
Physical & digital interfaces
exploiting the characteristics
of π-containers
and standardized worldwide
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 34/76
35. Evolve from material to π-container
transport, handling & storage means and systems
π-containers moving and storage means and systems,
A π-container
π-movers equipped with innovative technologies and processes
with wheels
A fork-less lift snapped through
exploiting the characteristics of π-containers
exploiting its standard to enable their fast, cheap, easy and reliable
the snapping and modular interfaces
interlocking input, storage, composing, decomposing,
functionalities
of the π-container monitoring, protection and output
through smart, sustainable and seamless
π-conveyors automation and human handling
In π-stores,
contemporary racking can be
used, however innovations
in storage technologies
exploiting the functional
characteristics
of modular π-containers In π-stores,
A highly flexible plug-and-play π-conveyor are bound to be exploited
exploiting the standard modular dimensions modular π-containers
and interfaces of the π-containers can be stacked as in
π-stores container port terminals
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.
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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36. Logistics centers designed for the Physical Internet
Transit Center
facilitating the
truck-to-truck
transshipment
of trailers along
relays networks
through the
Physical Internet
Reference: Meller, R.D., B. Montreuil, C. Thivierge & Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Road-Based Transit Center, in Progress in Material Handling Research: 2012, MHIA,
Charlotte, NC, to appear (2012).
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 36/76
37. Multimodal logistics centers Ocean, sea or river
designed for the Physical Internet,
enabling seamless, fast, cheap, safe,
reliable, distributed, & multimodal
transport and deployment
of π-containers
across the Physical Internet
Physical Internet Road-Rail Hub Roadway
References
• 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 2010, Edited by K. Gue et al., Material
Handling Industry of America, 23 p.
• Ballot É., B. Montreuil & C. Thivierge (2012)
Functional Design of Physical Internet Facilities: A Road-Rail Hub,
in Progress in Material Handling Research 2012, Edited by B. Montreuil et al.,
Material Handling Industry of America, 34 p.
Physical Internet Manifesto, version 1.11
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Québec, 2012-11-07, 37/76
38. Logistics centers designed for the Physical Internet
Enabling seamless, fast, cheap, safe, reliable, & distributed, multimodal transport and
deployment of π-containers across the Physical Internet
Road Hub of π-containers truck-to-truck crossdocking
along a network of relays through the Physical Internet
Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub,, in Progress in Material Handling Research: 2012, MHIA.
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 38/76
39. Physical Internet
Protocols
Protocols optimized for
universal interconnectivity
regulating
the multi-layer services
of the Physical Internet
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 39/76
40. Standard Logistics Service Protocols
Standardized
multi-layered
service architecture
and protocols
Open Logistics Interconnection Model
Montreuil B., E. Ballot & F. Fontane (2012). An Open Logistics Interconnection Model for the Physical Internet, Proceedings of INCOM 2012 Symposium, Bucharest, Romania, 2012/05/23-25.
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 40/76
41. Deploy capability certifications
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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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42. Open Performance Monitoring
Live open monitoring of really achieved performance
of all π-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
Physical Internet Manifesto, version 1.11
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Québec, 2012-11-07, 42/76
43. A Global System
The Physical Internet
is seamlessly applicable
everywhere,
at any scale
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 43/76
44. The Physical Internet: the same conceptual framework at any scale
Intra-center Inter-processor Network Intra-Faciilty Inter-Center Network Intra-Site Inter-Facilities Network
Intra-City Inter-Site Intra-Continental
Network Inter-City, Inter-State/Province Network Inter-Continental Worldwide Network
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 44/76
45. 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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 45/76
46. 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 π-containers
– The physical and informational integrity
of π-containers, π-movers, π-routes and π-nodes
– The informational integrity of π-actors
(humans, software agents)
– The robustness of client-focused performance in delivering and
storing π-containers.
Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
Physical Internet Manifesto, version 1.11
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47. Enabling a Logistics Web
The purpose of the Physical Internet
from a user perspective
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 47/76
48. From a user perspective, the Physical Internet aims
to enable an efficient, sustainable, adaptable and agile Logistics Web
Logistics Web
Set of openly interconnected
physical, digital, human,
organizational and social
actors and networks
aiming to serve
efficiently and sustainably
the worldwide logistics needs
of people, organizations,
territories and society
Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer.
Physical Internet Manifesto, version 1.11
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49. Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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50. Enabling an open global mobility web
From point-to-point or hub-and-spoke transport to distributed multimodal transport
Québec
20
Montréal
20-401
81
Alexandria Bay, US border
90
Syracuse
90 Buffalo
71 Cleveland
70
Columbus
70
Indianapolis
44 St-Louis
44 Springfield Current Proposed
Tulsa P2P Distributed
44
Distance travelled one-way: 5030 km 5030 km
40 Oklahoma City
Drivers: 1 17
40 Amarillo
Trucks: 1 17
40 Albuquerque
Trailer: 1 1
40 Flagstaff One-way driving time (h): 48 51+
40 Needles Return driving time (h): 48+ 51+
Barstow Total time at transit points (h): 0 9
15-10
Total trailer trip time from Quebec to LA (h): 120 60+
Los Angeles
Total trailer trip time from LA to Quebec (h): 120+ 60+
Total trailer round trip time (h): 240+ 120+
Transporting a trailer from Average driving time per driver (h): 96+ 6
from Quebec to Los Angeles Average trip time per driver (h): 240+ 6,5
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 50/76
51. Enabling an open global mobility web
From point-to-point or hub-and-spoke transport to distributed multimodal transport
Physical Internet Manifesto, version 1.11
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52. Illustrating Current Logistics Systems
A small two-retailer two-manufacturer case
Current Conceptual Networks Current Spatial Flows
Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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53. The Impact of Exploiting a Mobility Web
Here limited to unimodal road transport
Current Mobility Web
P# : Plant; :Retail store; S# :Private distribution center P# : Plant; : Retail Store; : Open hub
: Product flow : Road transport D# : Distribution center
Travelled distance: -27%
Fuel Consumption: -19%
Average delivery time: +2%
Maximum delivery time: -36%
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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54. Exploiting a Physical Internet Enabled Bimodal Mobility Web
for the Consumer Goods Industry in France
Road and rail transport seamlessly integrated into the PI backbone network
Simulation based on product distribution flow to two top retailers in France, from their 100 top suppliers
Current flows Physical Internet flows Physical Internet traffic
Preliminary results using existing infrastructures, facilities, demand patterns and service levels
Economical: From 4% to 26% overall cost saving
Environmental: About 3 times better in terms of greenhouse gas emissions,
by combining road-to-rail modal transfer and more efficient road transport
Ballot É., B. Montreuil, R. Glardon (2012), Simulation de l’Internet Physique: controbution à la mesure des enjeux et à sa définition, PREDIT Research Report, France, June 2012, 96 p.
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Professor Benoit Montreuil, CIRRELT, Université Laval
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55. Activate and exploit
an Open Global
Distribution Web
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 often a single DC
and generally 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
Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
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56. Dynamically Deploying Stock Across the Distribution Web
for Efficient, Fast & Agile Customer Response
Current private system Proposed open system
Client order
P# : Plant : Retail store S# : Private distribution center O# : Open distribution center
Physical flow
Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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57. The Added Value of Exploiting a Distribution Web
When Already Exploiting a Mobility Web
Mobility Web Mobility Web + Distirbution Web
P# : Plant; : Retail Store; : Open hub P# : Plant; : Retail Store; : Open hub
D# : Distribution center : Open distribution center
Travelled distance: -23%
Fuel consumption: -29%
Average delivery time to store: -79%
Maximum delivery time to store: -71%
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 57/76
58. The Impact of Exploiting a Logistics Web
Integrating Mobility and Distribution Webs
Private Logistics Networks
-42%; -44%
-19%; -27%
Mobility Web Fuel; Travel
-29%; -23%
Mobility Web + Distribution Web
+16%; +15%
[Average; Max]
Delivery-Time-to-Store -82%; -74%
-79%; -71%
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, 2012-11-07, 58/76
59. Open Global Realization Web
Minimize physical moves and storages
by digitally transmitting knowledge
and materializing products as locally as possible
through the open realization web
Exploiting extensively 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
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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60. Dynamically Outsourcinging Product Realization
to Certified Open Centers across the Realization Web
to Enable Efficient & Agile
Near Point-of-Use Product Realization
Current realization network Alternative realization network Alternative realization network
centered around an integrated exploiting realization web exploiting realization web
manufacturing & assembly plant for outsourcing assembly for outsourcing manufacturing & assembly
OA OA OA
OA OA OA OM
OM
OA OA
OA OA
OA OA
OM
M+A OA M OA
OA
OA
OM
OA OA
OA OA OM
OA OA
OA OM OA
OA OA
OA OA
OA OA
Current OM Current
snapshot snapshot
Client M+A Integrated manufacturer+assembler OA Currently exploited open assembler OM Currently exploited open manufacturer
M Manufacturer OA Currently unexploited open assembler OM Currently unexploited open manufacturer
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61. Open Supply Web
Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked operations, Proc. of SOHOMA 2011
Physical Internet Manifesto, version 1.11
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62. Exploiting a Supply Web Each supplier may for example
sign a guaranteed X-time accessibility
Tier-2
contract with each client,
keeping responsibility for
product delivery, deployment
and realization
Tier-1
Supply
Web
Tier-0
Realization Web
Client has minimal stock
Distribution Web
Each client has access to a global pool Supplier leverages its clients
of π-certified suppliers and vice-versa Mobility Web for deployment pooling
Physical Internet Manifesto, version 1.11
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63. A Supply Web with Myriads of π-Certified Suppliers,
Open & Global Access, Standardized Contracts,
Open Monitoring and Supplier Ratings
Multi-tiered,
from raw materials
to final products
Each exploiting
the Mobility,
Distribution & Realization webs
Physical Internet Manifesto, version 1.11
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64. From retail/rental networks
feeding isolated clients
To interconnected users
exploiting
an open Service Web
Getting access as needed
to product functionality,
from product owners-users
and rentals, buying products in
lesser percentage Supported by the other
Logistics Web constituents
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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65. Physical Internet induced
innovation
π-Enabling
Innovation
π-Enabled
Innovation
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66. Physical Internet
Induced
Technological π-Enabling
Innovation technologies
π-Enabled
technologies
Flex Conveyor from KIT/Gebhardt (Kai Furmans)
GridFlow from Auburn University (Kevin Gue) Montreuil, B., Meller, R.D., et al., “Designing Facilities for the Physical Internet,” Material
Handling Industry of America, Charlotte, NC, 2010-2012.
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67. Physical Internet induced
business model innovation π-Enabling
business
Innovative business models models
for commercializing
Physical Internet enabled offers by π-Enabled
various parties, business
addressing stakeholder revenue, models
contracting, liability & insurance
What are to be the π-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?
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68. Physical Internet Induced
Infrastructural Innovation
π-Enabling
The Physical Internet homogeneity in terms of infrastructures
object encapsulation in π-containers
should allow a much better utilization
of modes & means, π-Enabled
thus increasing the capacity of infrastructures infrastructures
by the exploitation of standardizations,
rationalizations and automations
through currently unreachable innovations
FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives
whose implementation viability can be upgraded through alignment 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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69. Realizing the Vision
Evolving towards a worldwide Physical Internet
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70. 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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71. 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
Physical Internet Manifesto, version 1.11
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72. Physical Internet Implementation
Progressive Deployment, Cohabitation and Certification
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 Manifesto, version 1.11
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73. Conclusion 1/3
The Physical Internet: An Instrument for Tackling
the Grand Logistics Sustainability Challenge
Exploiting the Internet metaphor
for fostering a breakthrough logistics system
A commitment towards open universal interconnection
of logistics services and resources
An integrated holistic tackle
on making more efficient and sustainable
the way we move, store, realize, supply and use
physical objects across the world
A highly scalable co-operative approach
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
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74. Conclusion 2/3
The Physical Internet: Not an Utopia, not a Big-Bang
The Physical Internet builds on the network effect,
getting ever more effective as it gathers more users
It must gather critical mass,
first exploiting existing infrastructures and means,
then gradually fostering innovation.
Even though it is to be ultimately global
it will have to grow first in fertile domains,
to be collaboratively supported by key leaders
from industry, government and academia.
Physical Internet Manifesto, version 1.11
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75. Conclusion 3/3
The International Physical Internet Initiative:
An Open Innovation Endeavor
With this manifesto and its underlying research,
a small step has been made towards meeting
the global logistics efficiency and sustainability grand challenge
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!
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76. Questions and comments are welcome,
and especially collaborative project avenues
Benoit.Montreuil@cirrelt.ulaval.ca
www.physicalinternetinitiative.org
Twitter: @physicinternet
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