The transportation industry faces a number of challenges in the near future. This presentation describes the transportation system from different points of view and suggests that the future can be described in four areas: Connected Vehicle, Connected Goods, Connected Business and Connected Infrastructure.

1. Future
challenges
in
transporta6on
(and
logis6cs)
Per
Olof
Arnäs,
PhD
TRB
Sverige
per-­‐olof.arnas@trb.se
www.trb.se
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

2. How
much
of
the
goods
transported
by
the
haulage
industry
are
loaded
on
pallets?
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Source:
SIKA
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

3. How
much
of
the
traffic
work*
are
dedicated
to
the
transport
of
pallets?
* Traffic work = Vehicle km
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Source:
SIKA
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

4. How
much
of
the
transport
work*
are
dedicated
to
the
transport
of
pallets?
* Transport work = tonne km
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Source:
SIKA
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

5. Number
of
trucks
equipped
to
transport
pallets
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Source:
SIKA
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

6. Feel
free
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this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

7. What
do
all
the
other
trucks
do?
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Source:
SIKA
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

8. A
resource-­‐
and
competence
center
16
partners
Turnover
13.5
bn
SEK
(1.4
bn
euro)
7
900
vehicles:
5
900
trucks
2
000
heavy
duty
machines
10
500
employees
Almost
20%
of
the
Swedish
haulage
industry
2,5
million
orders
for
80
000
customers
Owns
more
than
30
terminals
and
80
quarries
Alltransport
GDL
MLT
Norrköping
Helsingborg
Uppsala
ALWEX
GKF
Frakt
Närkefrakt
Växjö/Alvesta
Kris6anstad
Örebro
BDX
GLC
Samfrakt
Norrbocen
Göteborg
Kalmar
Bilfrakt.se
LBC
Frakt
Sundfrakt
Skelleeeå/Umeå
Karlstad
Sundsvall
Centralen
LBC
Varberg
Trollhäcan
Varberg
FORIA
MaserFrakt
Södertälje
Borlänge
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free
to
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this
using
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hashtag
Updated 2010-02-02
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

9. LBC-­‐companies
Regionally
focused
Owned
by
hauliers
One-­‐stop
shopping
Construc6on
industry
Waste
management
and
recycling
Tradi6onal
goods
transport
Tank
and
bulk
Forest
transports
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free
to
tweet
about
Industrial
transports
this
using
the
hashtag
3PL-­‐services
(storing,
kilng
etc.)
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

10. Focal
areas
The
work
of
TRB
is
closely
related
to
issues
relevant
for
the
single
haulage
company
Environmental
issues
Logis6cs
Fuel
and
supplies
IT
Procurement
Educa6on
Safety
issues
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this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

11. Haulage
companies
own
vehicles
that
are
used
by…
2
…transport
companies
that
service…
1
4
…customers
that
own…
3
…flows
that
are
controlled
by…
…logis6cs
principles
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se
#drpolecture
5
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12. Fuel
economy
Security
Alco
lock
Cer6ficates
Maintenance
Safety
Rules
and
regula6ons
U6lisa6on
Mobile
IT-­‐systems
ISA
–
Intelligent
Speed
Adapta6on
ROI
Second
hand
value
Selec6on
of
fuel
Driver
Educa6on
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

13. The
role
of
a
vehicle
in
the
informa6on
system
Today,
most
of
this
communicaMon
Data
consumer:
is
carried
out
by
phone,
paper,
and
• Order
data
pencil.
• Traffic
data
In
the
70’s,
radio
communicaMon
was
used,
nothing
of
note
• AdministraMve
data
has
happened
otherwise…
Data
producer:
To
meet
future
customer
requirements,
all
of
• Order
data
• Traffic
data
this
communicaMon
needs
to
be
electronic
• AdministraMve
data
• OperaMon
data
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

14. Utlilisa6on
System
integra6on
Educa6on
Service
Level
Resource
alloca6on
Route
op6misa6on
Environmental
repor6ng
Mobile
IT-­‐systems
Transport
Management
Customer
contacts
RFID
Security
Safety
Track
and
Trace
Cer6ficates
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

15. This
mechanism
is
The
customer
pays
for
transport
work.
fundamental
Measured
in
tonne
km.
to
all
transport
opera6ons!
The
transport
company
wants
to
maximise
the
amount
of
transport
work
and
minimise
the
amount
of
traffic
work
tonne
km
The
haulier’s
costs
are
vehicle
km
driven
by
traffic
work.
MAX
Measured
in
vehicle
km.
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

16. From
order
to
invoice
(transporta6on
company)
Basic
data
From/To/What/When
Owner:
the
customer
Resource
alloca6on
What
vehicle?
Owner:
Traffic
controller
Cargo
informa6on
Loaded
amount
Owner:
Supplier
Proof
of
Delivery
Time/date/signature
Owner:
Driver
Pricing
Owner:
Financial
dept.
Enough
informa6on
to
create
invoice
All
of
these
steps
cost
money!
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

17. An
increase
in
the
number
of
orders
lead
to
increased
cost
Total
cost
for
administra6on
of
all
orders
Goal:
De-­‐couple
the
dependecy
between
administa6ve
cost
and
order
volume
Handle
excep6ons
–
not
transac6ons!
Number
of
orders
per
year
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

18. Cabotage
”Cabotage
is
the
transport
of
goods
or
passengers
between
two
points
in
the
same
country.”
(Wikipedia)
Sweden
has
a
rela6vely
high
salary
level
compared
to
several
of
the
nearby
countries
such
as
the
Bal6c
states
and
Poland
As
soon
as
value
added
service
elements
are
introduced
in
the
end
points,
Mainly
FTL
–
low
barrier
cabotage
becomes
more
difficult
The
simple
reposi6oning
of
a
semi-­‐trailer
LTL
only
requires
a
trailer
truck
and
a
GPS
Consumer
contact
Construc6on
industry
Etc.
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Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

19. Four
strategies
to
reduce
the
environmental
footprint
of
transporta6on
Use
less
fuel
Educa6on
Feedback/follow-­‐up
system
U6lise
vehicles
more
efficiently
Planning
systems
Informa6on
sharing
throughout
the
chain
Use
alterna6ve
sources
of
energy
Limited
availability
Warran6es
from
engine
manufacturers
Reduce
distances
in
6me
Resolve
conges6on
Use
low-­‐intensity
periods
Redirect
traffic
dynamically
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free
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Image:
Aspen
Petroleum
this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

20. Lot
sizing
Transport
Quality
Environmental
repor6ng
Price
Stock
levels
Service
level
System
integra6on
Reliability
Environmental
footprint
Security
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free
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this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

21. Central
warehouse
–
tradi6onal
layout
• Manufacturers
deliver
to
the
same
warehouse
• Sales
offices
have
their
own
warehouses
close
to
their
markets
• Sales
offices
order
from
the
central
warehouse
• Several
transportaMon
companies
involved
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

22. Example,
decentralised
system
• A
customer
in
Östersund
(middle
of
Sweden)
orders
products
before
15.00
day
0.
The
warehouse
is
in
Helsingborg
(south
of
Sweden).
• Delivery
within
44
hours
(before
11
day
2)
• Day
0:
– Order
registra6on
• Day
1:
– Picking
– Prepare
shipment
– Pick
up
by
hauler
– Line-­‐based
transport
to
des6na6on
terminal
• Dag
2:
– Distribu6on
to
consignor
before
11
o’clock
15:00
11:00
44
h
Day
0
Day
1
Day
2
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free
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this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

23. Central
warehouse
–
new
layout
• Manufacturers
deliver
to
the
same
warehouse
• Sales
offices
collect
orders
and
work
the
market
• The
central
warehouse
delivers
directly
to
the
customer
• Probably
only
one
transportaMon
company
involved
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free
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

24. Example,
centralised
system
• The
same
customer
in
Östersund
order
products
before
15
day
0.
The
warehouse
is
in
Brussels.
• Delivery
is
s6ll
carried
out
within
44
hours
(before
11
day
2)
• Day
0:
– Customer
orders
electronically.
The
order
is
sent
directly
to
the
forklie
in
the
central
warehouse.
– Picking
is
instantaneous
– Shipment
prepared
for
the
”Sweden
line”
– Pick
up
by
hauler,
transport
to
transshipment
loca6on
in
Sweden
(ca
16
h)
• Day
1:
– Transshipment
at
line-­‐based
terminal
– Line-­‐based
transport
to
receiving
terminal
• Day
2:
– Distribu6on
to
consignor
before
11
o’clock
15:00
11:00
44
h
Dag
0
Dag
1
Dag
2
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

25. Width
Lot
sizing
Length
Repe66veness
Uniqueness
Goods
Heterogeneity
Goods
or
products
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Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

26. What
makes
some
goods
heterogeneous?
Low/high
density
Poor
stowability
FOUR
DIMENSIONS
Extended
liability
Difficulty
of
handling
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free
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this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

27. Time
Informa6on
Coordina6on
Planning
Handling
Control
Tower
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free
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this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

28. Deep fry
Production
Wholesaler,
”Supply chain manager”
Customer
order
point/Warehouse
Fries
Resellers
Counter
Customers
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free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

29. Transport
Vehicles/
Goods
vessels
Traffic
The
haulage
industry
mainly
focuses
on
the
vehicles
Ways
and
terminals
Feel
free
to
tweet
about
Sjöstedt,
L.
(2005)
A
conceptual
framework
for
analysing
policy
maker's
and
industry
roles
and
this
using
the
hashtag
perspec6ves
in
the
context
of
sustainable
goods
transporta6on
In
Barriers
to
sustainable
transport
:
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
Rietveld,
P.
and
Stough,
R.
(Eds)
Spon,
London,
pp.
198-­‐222.
ins0tu0ons,
regula0on
and
sustainability
www.trb.se

30. Transport
buying
companies
tradiMonally
focus
on
products
and
their
movements
Products
Sourcing
och
distribuMon
FaciliMes
LocaMon
LokalisaMon
Land
use
Feel
free
to
tweet
about
Sjöstedt,
L.
(2005)
A
conceptual
framework
for
analysing
policy
maker's
and
industry
roles
and
this
using
the
hashtag
perspec6ves
in
the
context
of
sustainable
goods
transporta6on
In
Barriers
to
sustainable
transport
:
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
Rietveld,
P.
and
Stough,
R.
(Eds)
Spon,
London,
pp.
198-­‐222.
ins0tu0ons,
regula0on
and
sustainability
www.trb.se

31. Transport
Vehicles/
Goods
vessels
Products
Traffic
Sourcing
and
distribuMon
Ways
and
terminals
FaciliMes
LocaMons
LocalisaMon
Land
use
Feel
free
to
tweet
about
Sjöstedt,
L.
(2005)
A
conceptual
framework
for
analysing
policy
maker's
and
industry
roles
and
this
using
the
hashtag
10-­‐10-­‐11
:
31
perspec6ves
in
the
context
of
sustainable
goods
transporta6on
In
Barriers
to
sustainable
transport
:
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
Rietveld,
P.
and
Stough,
R.
(Eds)
Spon,
London,
pp.
198-­‐222.
ins0tu0ons,
regula0on
and
sustainability
www.trb.se

32. Haulage
companies
own
vehicles
that
are
used
by…
…transport
companies
that
service…
…customers
that
own…
…flows
that
are
controlled
by…
…logis6cs
principles
Feel
free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

33. How
will
the
future
play
out
for
6
transporta6on
companies?
It
is
Mme
to
connect
the
various
enMMes
to
each
other
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free
to
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about
this
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hashtag
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

34. Feel
free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

35. Connected|Vehicle
Seamless
communica6on
First:
WiFi,
3G/4G,
GPRS,
Satellite,
RFID
etc.
Replace
current
data
with
electronic
alterna6ve
Then:
Create
new
func6onality
that
uses
the
new
infrastructure
GIS-­‐services
Vehicle
management
Infotainment
”Run6me”
cost/revenue
6cker
Subscribe
to
vehicle
func6onality
as
needed,
e.g.
extra
horse
powers
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free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

36. Connected|Business
When
data
becomes
readily
available,
data
mining
becomes
possible
Visualisa6ons
and
mash-­‐ups
to
assist
decision
making
Large-­‐scale
and
frequent
route-­‐
and
load
op6misa6ons
Feel
free
to
tweet
about
this
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

37. Connected|Goods
The
goods
will
be
able
to
True
distributed
decision
inherit
and
process
the
making
state
of
their
load
carrier
The
RFID
technology
The
goods
will,
by
their
own
taken
to
the
next
step
accord,
be
able
to
change
route
and
otherwise
affect
their
movement
Feel
free
to
tweet
about
this
using
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hashtag
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©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

38. Connected|Infrastructure
Dynamic
road
pricing
Conges6on
control
Slot
management
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free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

39. And
finally…
The
Internet
became
accesible
for
Swedish
consumers
15
years
ago
A
(bad
and
expensive)
mix
between
Teletext
and
the
Yellow
Pages
Not
very
precy
Only
nerds
owned
computers
Feel
free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

40. And
finally…
Today,
15
years
later,
we
have
sites
like
Google
Flu
Trends
Based
on
what
people
google
and
where
their
computer
is
located
Two
weeks
ahead
of
the
official
flu
tracker
www.google.org
Feel
free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

41. How
will
we
use
the
technology
in
15
years?
Feel
free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se

42. Thank
you!
Per
Olof
Arnäs
per-­‐olof.arnas@trb.se
www.trb.se
twiger.com/Dr_PO
Feel
free
to
tweet
about
this
using
the
hashtag
#drpolecture
©
Per
Olof
Arnäs,
TRB
Sverige,
@Dr_PO
www.trb.se