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2011-10-29, 1/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Manifesto
Transforming the way physical objects are handled, moved, stored, realized, supplied and used, aiming towards global logisHcs efficiency and sustainability
Professor Benoit Montreuil
Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center
on Enterprise Networks, Logis<cs and Transporta<on Laval University, Québec, Canada
Version 1.10: 2011-‐10-‐29
2011-10-29, 2/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Acknowledgements The Physical Internet Manifesto has greatly benefited from
the contribuHon of esteemed colleagues America ü CIRRELT Research Center:
• Teodor Crainic -‐ UQAM • Michel Gendreau -‐ Université de Montréal • Olivier Labarthe, Mustapha Lounès & Jacques Renaud -‐ Université Laval
ü CICMHE, College-‐Industry Council for Material Handling EducaHon: • Russ Meller – University of Arkansas • Kevin Gue & Jeff Smith – Auburn University • Kimberley Ellis – Virginia Tech • Leon McGinnis – Georgia Tech • Mike Ogle – MHIA
Europe • Éric Ballot, Frédéric Fontane – Mines ParisTech • Rémy Glardon – EPFL • Rene De Koster – Erasmus University • Detlef Spee – Fraunhofer Ins<tute for Material Flow and Logis<c
2011-10-29, 3/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Macroscopic PosiHoning CLAIM
The way physical objects are moved, handled, stored, realized, supplied and used
throughout the world is neither efficient nor sustainable
economically, environmentally and socially
GOAL Enabling the global efficiency and sustainability
of physical object movement, handling, storage, realiza<on, supply & usage
VISION Evolving towards a worldwide Physical Internet
2011-10-29, 4/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Inspiration for the Physical Internet Vision
• A great front page one-liner – Interesting yet mainstream supply chain articles – Nothing like what I perceived
a Physical Internet should be • I rapidly got passionate about the question
What should or could be a full blown Physical Internet?
– What would be its key features? – What capabilities would it offer that are not
achievable today? • Another question surfaced rapidly:
Why would we need a Physical Internet?
2011-10-29, 5/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency and unsustainability claim
The way physical objects are moved, handled, stored, realized, supplied and used throughout the world is inefficient and unsustainable
economically, environmentally and socially
Why Do we need a Physical Internet ?
2011-10-29, 6/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
ECONOMIC LogisHcs: 10-‐20% burden on GDP of most countries
The worldwide logisHcs cost grows faster than world trade
ENVIRONMENT One of the heaviest polluters, energy consumer and greenhouse gas generators Growing negaHve contribuHon while naHons’ goals aims for heavy reducHons
SOCIAL Lack of fast, reliable and affordable accessibility and mobility
of physical objects for the vast majority of the world’s populaHon Too oben precarious logisHc work condiHons
LogisHcs inefficiency and unsustainability
Why do we need to change ?
2011-10-29, 7/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
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 or a joke 10. Getting products in and out of cities is a nightmare 11. Networks 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
2011-10-29, 8/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency and 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
2. Empty travel is the norm rather than the exception – Vehicles and containers often return empty,
or travel extra routes to find return shipments – 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
– Their family and social life is precarious, as well as their personal health
– In general, logistic operators and material handling personnel have similar precarious positions
2011-10-29, 9/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
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. Production and storage facilities are poorly or badly used
– Most businesses invest in storage and/or production facilities which are lowly used most of the times, or yet badly used, dealing with products which would better be dealt elsewhere, forcing a lot of unnecessary travel
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2011-10-29, 10/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
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
7. Products do not reach those who need them the most
– This is specially true in less developed countries and disaster-crisis zones
RusHng new cars in disused airfield
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2011-10-29, 11/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
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 a dream or a joke
– 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
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2011-10-29, 12/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
10. Getting products in and out of cities is a nightmare
– Most cities are not designed and equipped for easing freight transportation, handling and storage, making the feeding of businesses and users in cities a nightmare
11. Networks 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
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2011-10-29, 13/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
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
Logistics inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
2011-10-29, 14/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Econom
ical
Environm
ental
Societal
1 We0are0shipping0air0and0packaging2 Empty0travel0is0the0norm0rather0than0the0exception3 Truckers0have0become0the0modern0cowboys
4 Products0mostly0sit0idle,0stored0where0unneeded,0yet0so0often0unavailable0fast0where0needed
5 Production0and0storage0facilities0are0poorly0used6 So0many0products0are0never0sold,0never0used7 Products0do0not0reach0those0who0need0them0the0most8 Products0unnecessarily0move,0crisscrossing0the0world9 Fast0&0reliable0intermodal0transport0is0still0a0dream0or0a0joke10 Getting0products0in0and0out0of0cities0is0a0nightmare11 Networks0are0neither0secure0nor0robust12 Smart0automation0&0technology0are0hard0to0justify13 Innovation0is0strangled
Unsustainability0symptoms
Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets
2011-10-29, 15/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Eliciting the Overall Goal Toward Global Logistics Efficiency and Sustainability
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
Environmental goal Sustainably reduce by an order of magnitude the logistics-induced global greenhouse gas emission, energy consumption and pollution
Economic goal Sustainably reduce by an order of magnitude the global economic burden of logistics while unlocking huge gains in business productivity
Note: Logistics is hereafter used in its broad sense notably including transportation, handling, storage, supply, realization (production, assembly, finishing, personalizing, recycling) and usage
2011-10-29, 16/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Digital Internet ExploiHng the InformaHon Highway Metaphor
When looking for a way to conceptualize how it should transform itself,
it relied on a physical transport and logisHcs metaphor: Building the informaHon highway
Decades ago the informaHon & communicaHons technology community was stuck in a huge inefficient and unsustainable tangle
due to millions of unconnected computers
2011-10-29, 17/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
They have achieved their goal and went farther, reshaping completely the way
digital compuHng and communicaHon are now performed They have invented the Internet, leading the way to the World-‐Wide Web
They have enabled the building of an open distributed networked infrastructure
that is currently revoluHonizing so many facets of our societal and economic reality
The Digital Internet Expanding Beyond the InformaHon Highway Metaphor
2011-10-29, 18/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Essence of the Digital Internet
The Digital Internet is about the interconnecHon between networks
in a way transparent for the user, so allowing the transmission of
formaeed data packets in a standard way
permifng them to transit through heterogeneous equipment
respecHng the TCP/IP protocol
References: Kurose J., Ross K. and Wesley A. “Computer Networking: A Top Down Approach Featuring the Internet”, 3rd edi<on., July 2004. Parziale L., Bri] D.T., Davis C., Forrester J., Liu W., Ma]hews C. and Rosselot N. “TCP-‐IP Tutorial and Technical Overview”, 2006. h]p://www.redbooks.ibm.com/redbooks/pdfs/gg243376.pdf “Interconnec<on of access networks, MANs and WANs “, h]p://images.google.ca/imgres?imgurl=h]p://www.exfo.com/
2011-10-29, 19/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet IniHaHve Using the Digital Internet as a Metaphor for the Physical World
Even though there are fundamental differences between the physical world and the informaHon world,
the Physical Internet iniHaHve aims to exploit the Internet metaphor
so as to propose a vision for a sustainable and progressively deployable
breakthrough soluHon to global problems associated with the way
we move, handle, 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
How do we propose to meet the Logistics Grand Challenge ?
2011-10-29, 20/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Exposing Key Features of the Physical Internet Vision
Evolving towards a worldwide Physical Internet
2011-10-29, 21/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
What is the Physical Internet?
An open global logistics system founded on
physical, digital and operational interconnectivity enabled by
encapsultation, protocols and smart interfaces for increased efficiency and sustainability
Current version of a working definition for the Physical Internet, jointly developed by Benoit Montreuil, Eric Ballot and Russ Meller
Physical Internet: PI, π
2011-10-29, 22/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Positioning the Physical Internet World Wide Web (WWW) Digital Internet
Digital informaHon Packets
Open Supply Web Physical Internet Smart Physical Packets
ConnecHng Physical objects through WWW
Internet of Things Smart Networked Objects
Smart Grid Energy Internet
Energy Packets
Original schema<cs from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinterne<ni<a<ve.org
2011-10-29, 23/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Key Features of the Physical Internet Vision
1. Aim toward universal interconnecHvity 2. Aim for a unified mulH-‐scale conceptual framework 3. Aim for webbed reliability and resilience of networks 4. Encapsulate merchandises in world-‐standard green modular containers 5. Evolve from material to container handling & storage systems 6. Exploit smart networked containers embedding smart objects 7. AcHvate and exploit an open global mobility web 8. AcHvate and exploit an open global supply web 9. Deploy capability cerHficaHons and open performance monitoring 10. Design products fifng containers with minimal space waste 11. Minimize physical moves and storages by digitally transmifng knowledge
and materializing products as locally as possible 12. SHmulate business model innovaHon 13. Enable open infrastructural innovaHon
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
2011-10-29, 24/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
1. Aim toward universal interconnecHvity
High-‐performance logisHc centers, movers and systems, making it fast, cheap, easy and reliable
to interconnect physical objects through modes and routes,
with an overarching aim toward universal interconnecHvity
What are the design aims of the Physical Internet?
2011-10-29, 25/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
2. Aim for a unified mulH-‐scale conceptual framework
Intra-‐Center Inter-‐Processor Network
What are the design aims of the Physical Internet?
2011-10-29, 26/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Intra-‐Facility Inter-‐Center Network
2. Aim for a unified mulH-‐scale conceptual framework
What are the design aims of the Physical Internet?
2011-10-29, 27/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Intra-‐Site Inter-‐Facility Network
2. Aim for a unified mulH-‐scale conceptual framework
What are the design aims of the Physical Internet?
2011-10-29, 28/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
π-‐transits & π-‐hubs Intra-‐City Inter-‐Site Network
Toward π-enabled!sustainable!city logistics!
2. Aim for a unified mulH-‐scale conceptual framework
What are the design aims of the Physical Internet?
2011-10-29, 29/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, Canada
North eastern states, U.S.A.
Intra-‐State Inter-‐City Network
π-‐transits & π-‐hubs
2. Aim for a unified mulH-‐scale conceptual framework
What are the design aims of the Physical Internet?
2011-10-29, 30/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
2. Aim for a unified mulH-‐scale conceptual framework
What are the design aims of the Physical Internet?
2011-10-29, 31/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
3. 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 mulHplicaHon 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 automaHcally as possible
Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logis<cs New Direc<ons in Supply Chain Management, 2007
What are the design aims of the Physical Internet?
2011-10-29, 32/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
3. 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 informaHonal integrity of π-‐containers, π-‐movers, π-‐routes and π-‐nodes
– The informaHonal integrity of π-‐actors (humans, sobware 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 Logis<cs New Direc<ons in Supply Chain Management, 2007
What are the design aims of the Physical Internet?
2011-10-29, 33/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
4. Encapsulate merchandises in world-‐standard green modular containers
• Merchandise is uniHzed as content of a π-‐container and is not dealt with explicitly by the Physical Internet
• Modular dimensions from cargo container sizes down to Hny sizes • Conceived to be easily flowed through various
transport, handling and storage modes and means • Easy to handle, store, transport, interlock, load, unload, construct
and dismantle, compose and decompose • Environment friendly materials with minimal off-‐service footprint • Smart tag enabled, with sensors if necessary, to allow their proper
idenHficaHon, rouHng and maintaining • Various usage-‐adapted structural grades • CondiHoning capabiliHes (e.g. temperature) as necessary • Sealable for security purposes
What are the enabling constituents of the Physical Internet?
2011-10-29, 34/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
π-Containers modularized and standardized worldwide in terms of dimensions, functions and fixtures
!"#$%&'&(&)&*+& !"#$%&'&(&)&*++&
!"#$%&'&(&)&*,+&
X
Y
Z Illustrative modular
dimensions 0,12 m 0,24 m 0,36 m 0,48 m 0,6 m 1,2 m 2,4 m 3,6 m 4,8 m 6 m
12 m
B. Montreuil, B. Gilbert
What are the enabling constituents of the Physical Internet?
2011-10-29, 35/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Decom
posi)o
n+
Compo
si)o
n+π-‐Containers designed for the Physical Internet
Easy to load, unload, handle, store, transport, seal, snap, interlock, construct, dismantle, panel, compose and decompose
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.
What are the enabling constituents of the Physical Internet?
2011-10-29, 36/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Key features of π-containers
Snappable
Reusable Recyclable
Easy-‐to-‐dismantle
Traceable, Routable
Securable Modular
Factory
Clients (retail shelves)
Original drawing by Eric Ballot, Mines ParisTech,2011-‐06-‐27, adapted by Benoit Montreuil
What are the enabling constituents of the Physical Internet?
2011-10-29, 37/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
5. Evolve from material to π-‐container transport, handling & storage means and systems
π-container moving and storage means and systems, with innovative technologies and processes exploiting the characteristics of π-containers to enable their fast, cheap, easy and reliable
input, storage, composing, decomposing, monitoring, protection and output
through smart, sustainable and seamless automation and human handling
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.
What are the enabling constituents of the Physical Internet?
2011-10-29, 38/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
F π-‐container handling and storage systems: – Enable fast and reliable input and output performance – Have seamless interfacing with vehicles and systems
moving products in and out, as well as client sobware systems for tracking and interfacing with the containers
– Monitor and protect the integrity of π-‐containers – Secure the containers to the desired level – Provide an open live documentaHon of their specified performance and
capabiliHes and of their demonstrated performance and capabiliHes, updated through ongoing operaHons
F This applies in currently-labeled distribution centers, crossdocking centers, train stations, multimodal hubs, seaports, airports, and so on
5. Evolve from material to π-‐container transport, handling & storage means and systems
What are the enabling constituents of the Physical Internet?
2011-10-29, 39/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
6. Exploit smart networked containers embedding smart objects
ExploiHng as best as possible the capabiliHes of smart π-‐containers
connected to the Digital Internet and the World Wide Web, and of their embedded smart objects,
for improving performance as perceived by the clients and overall performance of the Physical Internet
What are the enabling constituents of the Physical Internet?
2011-10-29, 40/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet and the Internet of Things
Image: http://www.globetracker.biz/GlobeTracker/News.asp
F The Internet of Things is about enabling ubiquitous connecHon with physical objects equipped with smart connecHve technology (RFID, GPS, Internet, etc.), making the objects ever smarter and enabling distributed self-‐control of objects through networks
F The Physical Internet is to exploit as best as possible the Internet of Things to enable the ubiquitous connecHvity of its π-‐containers and π-‐systems
2011-10-29, 41/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Multi-segment travel from Quebec to Los Angeles
Québec
Montréal Alexandria Bay, US border
Syracuse Buffalo
Cleveland Columbus
Indianapolis St-Louis
Springfield Tulsa
Oklahoma City Amarillo
Albuquerque Flagstaff
Needles Barstow
Los Angeles
20
20-401 81
90 90
71
70
70 44
44
44 40
40
40
40
40
15-10
Distance travelled one-way: 5030 km 5030 km Drivers: 1 17 Trucks: 1 17 Trailer: 1 1 One-way driving time (h): 48 51+ Return driving time (h): 48+ 51+ Total time at transit points (h): 0 9 Total trailer trip time from Quebec to LA (h): 120 60+ Total trailer trip time from LA to Quebec (h): 120+ 60+ Total trailer round trip time (h): 240+ 120+ Average driving time per driver (h): 96+ 6 Average trip time per driver (h): 240+ 6,5
Current P2P
Proposed Distributed
7. Enabling an efficient and sustainable Mobility Web From point-to-point hub-and-spoke transport to distributed multimodal transport
What are the targets of the Physical Internet?
2011-10-29, 42/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Transporta<on between nodes + Handling within nodes : About Moving Objects An interconnected set of open unimodal & mul3modal hubs, transits, ports, roads and ways
7. Enabling an efficient and sustainable Mobility Web
What are the targets of the Physical Internet?
MariHme route Highway Road
Railroad Open mulHmodal π-‐hub & π-‐transit zone Open unimodal π-‐hub & π-‐transit zone
Open π-‐Port Air route
2011-10-29, 43/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
π-‐Transit sites allowing distributed
mulH-‐segment transport through the Physical Internet
:"π$containers"
:"π$carrier"
:"π$vehicle"
:"π$bay"
B1#
B2#
B3#
B4#
B5#
B6#
B7#
B8#
B9#
B10#
C1#
C2#
C3#
C4#
C5#
C6#
C7#
C8#
C9#
V12#
V8#
V13#
V6#
Status of !-carriers currently in !-transit"
!-carrier !-bay Incoming deposit Outgoing pickup estimation !-vehicle Time !-vehicle Time (min, mode, max)
C1 B2 V1 04:35 V14 (06:04, 06:05, 06:15) C2 B10 V3 05:15 V15 (06:05, 06:09, 06:12) C3 B7 V4 05:20 V13 (06:04, 06:07, 06:10) C4 B9 V6 05:35 V11 (06:02, 06:02, 06:02) C5 B3 V8 05:45 V12 (06:01, 06:01, 06:01) C6 B4 V9 05:48 V16 (06:10, 06:12, 06:18) C7 B6 V11 05:55 V19 (06:15, 06:20, 06:30) C8 B1 V12 05:58 V18 (06:10, 06:15, 06:20) C9 B10 V13 06:00 V25 (06:20, 06:30, 06:45)
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.
7. Enabling an efficient and sustainable Mobility Web
2011-10-29, 44/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Water&
Road&
Road-‐Water π-‐Hub designed for enabling distributed
mulH-‐segment intermodal transport
of π-‐containers through the Physical Internet
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.
7. Enabling an efficient and sustainable Mobility Web
2011-10-29, 45/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
8. Enabling an efficient and sustainable Supply Web
An open global supply web composed of a DistribuHon Web coupled to a RealizaHon Web
enabling producers, distributors and retailers to dynamically deploy their π-‐container-‐embedded products
in mulHple geographically dispersed centers, realizing and deploying them
for fast, efficient and reliable response delivery to distributed stochasHc demand
for their products, services and/or soluHons
References: Montreuil B., Labarthe, O., Hakimi, D., Larcher, A., & Audet, M. Supply Web Mapper. Proceedings of Industrial Engineering and Systems Management, Conference, IESM, , Conference Montréal, Canada, May 13-‐15, 2009 Hakimi D., B. Montreuil, O. Labarthe, “Supply Web: Concept and Technology”, 7th Annual Interna<onal Symposium on Supply Chain Management, Conference Toronto, Canada, October 28-‐30, 2009Montreuil, B., Hakimi, D. , B. Montreuil, O. Labarthe, ”Supply Web Agent-‐Based Simula<on Plakorm” Proceedings of the 3rd Interna<onal Conference on Informa<on Systems, Logis<cs and Supply Chain Crea<ng value through green supply chains, ILS 2010 – Casablanca (Morocco), April 14-‐16<.
Enabling Physical Equivalents of!Intranets, Virtual Private Networks,!Cloud Computing and Cloud Storage!
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
DistribuHon Web About Deploying Objects
An interconnected set of open warehouses and distribu3on centers
What are the targets of the Physical Internet?
Port MariHme route
Highway
Road Railroad
Open π-‐Port Open π-‐store & π-‐distributor zone
Air route
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Reference: Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
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 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
Enabling an efficient and sustainable
Distribution Web
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply web !with a high density of open DCs !available to many other clients"
Firm dedicated factories: "4"Firm dedicated DCs: "0"Group shared DCs: "0"Open DCs used: "60+""D2C max: 0 "mean: 0,00"F2D max: 12 "mean: 4,75"
Firm dedicated factories: "4"Firm dedicated DCs: "0"Group shared DCs: "3"D2C max: 3 "mean: 1,48"F2D max: 10 "mean: 4,39"
Firm dedicated factories: "4"Firm dedicated DCs: "0"Group shared DCs: "16"D2C max: 3 "mean: 1,08"F2D max: 9 "mean: 4,36"
Factories: "4"Firm dedicated DCs:"16"D2C max: 3 "mean: 1,75"F2D max: 9 "mean: 3,92"
Factory: "1"Firm dedicated DCs: "4"D2C max: 3 "mean: 1,73"F2D max: 8 "mean: 4,11"
Factory: "1"Firm dedicated DCs: "4"D2C max: 3 "mean: 1,78"F2D max: 7 "mean: 3,00"
Factory: "1"Firm dedicated DCs: "4"D2C max: 3 "mean: 1,75"F2D max: 7 "mean: 3,69"
Factory: "1"Firm dedicated DCs: "4"D2C max: 3 "mean: 1,73!F2D max: 9 "mean: 4,88"
Shared supply web !with independently!implemented DCs"
Shared supply web !with jointly !implemented DCs"
Independent!private!supply networks"
Inter-region transport induced lead times!F2D: Factory to DC lead time!
D2C: DC to client region lead time!
1"
2"
3"
4"
3"
2"4"
1"
1"
2"
3"
4"
3"
2"4"
1"
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
RealizaHon Web About making, assembling, personalizing & retrofifng objects
An interconnected set of open produc3on, personaliza3on & retrofit centers, indeed of open factories of any type
Port MariHme route
Highway
Road Railroad
Open π-‐factory zone
Air route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Supply Web The union of open distribu3on web & open realiza3on web
Port MariHme route
Highway
Road Railroad
Open π-‐Port Open π-‐store & π-‐distributor zone Open π-‐factory zone Air route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply web What are the targets of the Physical Internet?
+
vs
=
Supply&network&2&
Supply&network&1&
Supply&Web&1U2&
Open&supply&web&exploited&by&1&and&2&
+&
=&
≠&
Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked opera<ons, Proc. of SOHOMA 2011
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply web with a high density of open DCs available to many other clients and shared factories among the four firms
Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 0 Open DCs used: 60+ Mean DC-to-region lead time: 0 Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 2 Max factory-to-DC lead time: 4
Open supply web with a high density of open distribution and production centers available to many other clients
Firm dedicated factories: 0 Group shared factories: 0 Open factories used: 64+ Firm dedicated DCs: 0 Group dedicated DCs: 0 Open DCs used: 64+ Mean DC-to-region lead time: 0 Max DC-to-region lead time: 0 Mean factory-to-DC lead time: 0 Max factory-to-DC lead time: 0
* Inter-‐region transport induced lead 3mes
Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 16 Mean DC-to-region lead time: 1,08 Max DC-to-region lead time: 3 Mean factory-to-DC lead time: 1,11 Max factory-to-DC lead time: 3
Shared supply web with shared factories and independently implemented shared DCs
Firm dedicated factories: 0 Group shared factories: 4 Firm dedicated DCs: 0 Group shared DCs: 3 Mean DC-to-region lead time: 1,48 Max DC-to-region lead time: 3 Mean factory-to-DC lead time: 0,83 Max factory-to-DC lead time: 3
Shared supply web with shared factories and jointly implemented shared DCs
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
LogisHcs Web The union of Mobility Web and Supply Web
Port
MariHme route Highway
Road Railroad
Open π-‐Port Open π-‐store & π-‐distributor zone Open π-‐factory zone
Open mulHmodal π-‐hub & π-‐transit zone
Open unimodal π-‐hub & π-‐transit zone
Air route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
RealizaHon Web
DistribuHon Web
Mobility Web
Supply Web
Open Produc3on, Personaliza3on & Retrofit Centers
Open Distribu3on Centers
& Warehouses
Open Unimodal & Mul3modal
Hubs & Transits
LogisHcs Web
Port%
Mari)me%route%Highway%
Road%Railroad%
Open%π9Port%Open%π9store%&%π9distributor%zone% Open%π9factory%zone%
Open%mul)modal%π9hub%&%π9transit%zone%
Open%unimodal%π9hub%&%π9transit%zone%Air%route%
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Live open monitoring of really achieved performance of all PI 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
9. Deploy capability cerHficaHons and open performance monitoring
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
9. Deploy capability cerHficaHons and open performance monitoring
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
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
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 funcHonal density
while containerized
Reference: Seliger G., “Sustainability in Manufacturing -‐ Recovery of Resources in Product and Material Cycles” (Ed. by Günther Seliger, Sringer Verlag, 2007
10. Design products fifng containers with minimal space waste
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
F Product dimensions adapted to the standard container dimensions – So that the packaged product fits in a small footprint container
F In order to avoid moving and storing air, products should be designed and engineered so as to have maximal volumetric density while being in Physical Internet containers, extendable to their usage dimensions when necessary
F Products should be designed so that only key components and modules have to travel extensively through the Physical Internet: – Easy to be completed near point of use using locally available objects
F Products having to move through the Physical Internet should be as funcHonally dense as possible when in the containers – FuncHonal density of an object can be expressed as the raHo of its useful
funcHonality over the product of its weight and volume
10. Design products fifng containers with minimal space waste
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
11. Minimize physical moves and storages by digitally transmifng knowledge
and materializing products as locally as possible through the open realizaHon web
Exploiting extensively the 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
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
12. Stimulate business model innovation
Innovative business models for commercializing
Physical Internet enabled offers by various parties, including revenue models for the various actors
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?
How are business and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
RemuneraHng the Players F In the Digital Internet, the transmission of informaHon
is remunerated mostly through bundled flat fees due to the quasi nil marginal costs
F In the Physical Internet, the transmission of a container generates non negligible costs for each of the operators having taken charge of some part of the transmission
F It is thus necessary to define business models for commercializing offers as well as operator revenue models – There currently exist examples paving the way to realize this, notably in the
airline industry
12. Stimulate business model innovation
How are business and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Systemic coherence and means interoperability must enable the transparent usage of
heavy handling, storage and transport means currently exisHng or to come in the future,
that are currently so hard to use, reducing their potenHal posiHve environmental impact
The Physical Internet homogeneity in terms of container modules encapsulaHng objects
should allow a much beeer uHlizaHon of means, thus increasing the capacity of infrastructures
by the exploitaHon of standardizaHons, raHonalizaHons and automaHons
through currently unreachable innovaHons
13. Enable Open Infrastructural Innovation
How are infrastructures and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
FoodTubes and CargoCap: Examples of currently contemplated infrastructural iniHaHves in line with the Physical Internet
h]p://www.ilookforwardto.com/2010/12/foodtubes-‐really-‐fast-‐food-‐delivered-‐in-‐a-‐physical-‐Internet-‐of-‐underground-‐pipes.html h]p://www.cargocap.com/content/what-‐is-‐cargocap
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Key Features of the Physical Internet Vision
1. Aim toward universal interconnecHvity 2. Aim for a unified mulH-‐scale conceptual framework 3. Aim for webbed reliability and resilience of networks 4. Encapsulate merchandises in world-‐standard green modular containers 5. Evolve from material to container handling & storage systems 6. Exploit smart networked containers embedding smart objects 7. AcHvate and exploit an open global mobility web 8. AcHvate and exploit an open global supply web 9. Deploy capability cerHficaHons and open performance monitoring 10. Design products fifng containers with minimal space waste 11. Minimize physical moves and storages by digitally transmifng knowledge
and materializing products as locally as possible 12. SHmulate business model innovaHon 13. Enable open infrastructural innovaHon
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
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet addressing logisHcs inefficiency and unsustainability symptoms
1 2 3 4 5 6 7 8 9 10 11 12 13
Objects(encap
sulated(in(world(
stan
dard(m
odular(con
tainers
Universal(intercon
nectivity
Containe
r(han
dling(an
d(storage(
system
s
Smart(n
etworked(containe
rs(
embe
dding(sm
art(o
bjects
Distrib
uted
(multi=segm
ent(
interm
odal(tran
sport
Unifie
d(multi=tie
r(con
ceptua
l(fram
ework
Ope
n(glob
al(su
pply(web
Prod
uct(d
esign(for(con
tainerization
Prod
uct(m
aterialization(ne
ar(to
(po
int(o
f(use
Ope
n(pe
rforman
ce(m
onito
ring(an
d(capa
bility(certificatio
n
Web
bed(reliability(an
d(resilience(of(
netw
orks
Busine
ss(m
odel(inno
vatio
n
Ope
n(infrastructural(inn
ovation
1 We$are$shipping$air$and$packaging
2Empty$travel$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
5Production$and$storage$facilities$are$poorly$used
6 So$many$products$are$never$sold,$never$used
7Products$do$not$reach$those$who$need$them$the$most
8Products$unnecessarily$move,$crisscrossing$the$world
9Fast$&$reliable$intermodal$transport$is$still$a$dream$or$a$joke
10Getting$products$in$and$out$of$cities$is$a$nightmare
11 Networks$are$neither$secure$nor$robust
12Smart$automation$&$technology$are$hard$to$justify
13 Innovation$is$strangled
Physical(Internet(Characteristics
Unsustainability(symptoms
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Realizing the Vision
Evolving towards a worldwide Physical Internet
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet Global systemic sustainable vision
sHmulaHng and aligning acHon around the world
Individual iniHaHves by businesses, industries and governments are necessary but are not sufficient
There is a need for a macroscopic, holisHc, systemic vision offering
a unifying, challenging and sHmulaHng framework
There is a need for an interlaced set of global and local iniHaHves
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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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet ImplementaHon Progressive Deployment, CohabitaHon and CerHficaHon
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 cohabitaHon and of progressive deployment, propelled by the actors
integraHng gradually the Physical Internet ways and finding ever more value in its usage and exploitaHon
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
F A smooth transiHon starHng with rethinking and retrofifng phases, then moving toward more transformaHve phases
F The Physical Internet can consHtute itself progressively through the mulH-‐level cerHficaHon of: – Protocols – Containers – Handling and storage technologies, distribuHon centers, producHon centers, train staHons, ports, mulHmodal hubs
– InformaHon systems (e.g. reservaHon, smart labels, portals) – Urban zones and regions, inter-‐country borders
Physical Internet ImplementaHon Progressive Deployment, CohabitaHon and CerHficaHon
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Conclusion (1/2)
This manifesto has outlined a bold paradigm breaking vision for the future of
how we handle, store, transport, realize, supply and use physical objects across the world It proposes to exploit the Internet,
which has revoluHonized the digital world, as an underlying metaphor for steering innovaHon
in the physical sphere The outlined Physical Internet does not aim
to copy the Digital Internet, but to inspire the creaHon of
a bold systemic wide encompassing vision capable of providing real efficient and sustainable soluHons
to the problems created by our past and current ways and by our vision toward which we should aim
2011-10-29, 71/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
With this manifesto and its underlying research, a small step has been made
A lot more are needed to really shape this vision
and, much more important, to give it flesh through real iniHaHves and projects
so as to really influence in a posiHve way our collecHve future
This requires a lot of collaboraHon between academia, industry and governments across localiHes, countries and conHnents
Your help is welcome
Conclusion (2/2)
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Questions and comments are welcome
Questions et commentaires sont les bienvenus
Fragen und Kommentare sind willkommen
Las preguntas y los comentarios son bienvenidos
Benoit.Montreuil@cirrelt.ulaval.ca
www.physicalinterneHniHaHve.org
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