The Physical Internet: Shaping a Global Hyperconnected Logistics Infrastructure Professor Benoit Montreuil Coca-Cola Chair in Material Handling and Distribution Physical Internet Center Supply Chain & Logistics Institute H. Milton Stewart School of Industrial & Systems Engineering Georgia Institute of Technology IPIC 2020, International Physical Internet Conference, Shenzhen, China 2020/11/18 Hyperconnected global logistics system enabling seamless open asset sharing and flow consolidation through standardized encapsulation, modularization, protocols and interfaces to improve the capability, efficiency and sustainability of serving humanity’s demand for physical objects Hyperconnected: Components and actors intensely interconnected on multiple layers, ultimately anytime, anywhere Interconnectivity layers: digital, physical, operational, business, legal and personal Image source: clyderathbone.com Definition by B. Montreuil, International Physical Internet Conference, Keynote Presentation, July 2015; IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 2/27 Hyperconnected Supply Chain Infrastructure Hyperconnected Logistics Infrastructure Information & Energy Transportation Communications Infrastructure Infrastructure Infrastructure Smart Grid, Fuel & Charging Distribution Roads, Ports, Railways, … Digital Internet, Internet-of-Things IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 3/27 Easy*to*Handle,* Smart*&*Connected* EcoDfriendly* Store*&*Transport* • Uniquely*idenBfiable* • Light*&*thin* • Private nest in an open space • Robust*&*reliable* • CommunicaBons*capable* • Reusable*and/or*recyclable* • • Snap*and*interlock* • State*memory* • Minimal*offDservice*footprint* Used throughout the Physical Internet • Load*and*unload* • Reasoning&capabili4es& • DisBnct*structural*grades* • Owned by producer, pooler, • Seal*and*unseal* • Compose*&* logistic service provider, or user decompose* Encapsulating goods in • CondiBoning*capable* Standard* standardized modular • Transacted on the spot as pertinent • Cleanable* Modular* containers • No need to return to source • Panel&(pub&+&info)& • Reused numerous times ID# Clients* (Retail*shelves,*Homes)* • Drastically eases handling activities Factories* Products*ever*beJer* designed*for*encapsulaBon* Packaging Containers Handling Containers Transport Containers Mobile Racks (Packs) (Totes, Boxes) (Pods) (unitizing handling containers Modular fit in pods Same footprint as boxes Modular fit in Boxes Modular fit in Pods Modular fit in certified vehicles-carriers 1,2; 0,8; 0,6; 0,4; 0,3; 0,2; 0,1 Boxes: 1,2; 0,8; 0,6 – ε meters 12; 6; 4,8; 3,6; 2,4; 1,2 meters – ε - δ meters Totes: 0,6; 0,4; 0,3; 0,2; 0,1 – ε’ meters IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 4/27 Ordered objects on their way to destination ShowCasing Production Consolidating Trying Fabs CrossdoCking PurChasing Sorting, Swapping PiCking Deployment Transshipping Returning Making Centers Retail stores Dis/Assembling Smart Lockers ReCyCling Logistics Click-&-Collect Drives ProCessing Objects not yet Hubs requested by customer / user, prepositioned for Factories convenient demand fulfilment Customer Assembly centers Transit Hubs Personalization Centers Warehouses, Depots Crossdocking Hubs Interfaces 3D Printing Centers Mixing Centers Delivery Hubs Recycling Centers Distribution Centers Airports, Railyards, Ports FulFillment Centers Multimodal Hubs IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 5/27 Driver Swapping Carrier Swapping (semi-trailer, railcar…) Tractor Swapping (e.g. trucks needing to recharge) Transport Container Transshipment (unimodal or intermodal) TrActor parking, fueling, charging, servicing Carrier parking, servicing Driver waiting, eAting, resting, cleaning Container parking, servicing IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 6/27 Handling Container & Rack Crossdocking Goods De/Containerization & Sorting Transport Containers Hub Handling Container Reshuffling Transport Containers IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 7/27 Parts Distribu<on Factory/Supplier Center Ship-From-Store-to-Home (SFS2H) Product Point-of-Sale Factory/Supplier Store Ship-From-Store-to-Me (SFS2M) Logis<cs Pick-at-Store (P@S) Mixing Center Pick-at-Drive (P@D) Center Drive Materials Fulfillment Factory/Supplier Center Pick-at-Locker (P@L) Locker Me Ship-to-Me (S2M) Produc<on capabili<es Home Ship-to-Home (S2H) Plant: Core manufacturing & assembly Complex packaging, personalizing & 3D prin4ng DC & FC: Pro packaging, personalizing & 3D prin4ng MC: Complex packaging, personalizing & 3D prin4ng Drive & Store: Simple-Pro 3D prin4ng Crossdocking Hubs, depicted conceptually, not meaning that visi4ng them is mandatory Home: Consumer manual assembly or 3D prin4ng Even though a single instance of each type of facility/en4ty is drawn, a networked combina4on of them may engaged in producing and flowing an order All lines are bilateral to emphasize the flow of purchased and returned goods All lines indicate a flow that may be instan4ated using mul4ple modes and being crossdocked/ transshipped through mul4ple hubs BM! Expected Convenient and Reliable Delivery or Pickup with Minutes, Hours, maybe a few Days With Minimal Stock Smartly Flowed and Deployed Between Suppliers and Customers Montreuil B. (2017). Omnichannel Business-to-Consumer Logistics and Supply Chains: Towards Hyperconnected Networks and Facilities, Progress in Material Handling Research Vol. 14, Ed. K. Ellis et al., MHI, Charlotte, NC, USA. CMO Innovation, 2015-09-02, http://www.enterpriseinnovation.net/sponsor-article/art-and-science-omni-channel-retailing http://www.wilsonperumal.com/blog/can-97-of-retailers-be-wrong-about-omni-channel-commerce/ IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 8/27 OMNISOURCE TRANSPORTATION Smart Dynamic Leveraging Smart Dedicated Contracts On-Demand Fleet with Spot Market (Own & Partners) Service Crowdsourcing Providers Multimodal Transport Multi-Size Vehicle-Carrier Coping with Time and Price Sensitivity of Customers Demand Variability and Uncertainty Economic, Environmental & Societal Sustainability IPIC 2020, B. MONTREUIL, PHYSICAL INTERNET: SHAPING A HYPERCONNECTED LOGISTICS INFRASTRUCTURE NOVEMBER 18, 2020 9/27 World Block Block Region Region Region Region Area Area Area Area Area Area Area Area Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Area Area Area Area Area Area Area Area Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Region 4 / 28 Region Region 4 / 28 Region Area Area Area Area Area Area Area Area Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Area Area Area Area Area Area Area Area Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Cell Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone