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A talk about the digitization of the freight transport industry. Technologies like 3D printing, wearable tech and big data are revolutionizing the industry.
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Digitization of the transport industry
We are building The Matrix !!
Per Olof Arnäs Chalmers
@Dr_PO [email protected]
about.me/perolofarnas
Technology Management and Economics Logis4kcs and Transporta4onCC-‐BY Per Olof Arnäs
…public
Traffic Jam by Giorgio Minguzzi on Flickr
Technology Management and Economics Logis4kcs and Transporta4onCC-‐BY Per Olof Arnäs
…analogue
542 miles by Jason on Flickr
Technology Management and Economics Logis4kcs and Transporta4onCC-‐BY Per Olof Arnäs
1989Map on the wall with pushpins
Delivery notes (3 carbon sheets)
Pens in various colours
Prices, phone numbers etc.
Cardfile of customers, tank
sizes etc.
Telephone
Calculator
Radio
Technology Management and Economics Logis4kcs and Transporta4onCC-‐BY Per Olof Arnäs
1989
Ca 100 customers in west Sweden
6 tanker trucks (7 partitions per vehicle)
8-10 Pricing (yesterday’s orders) 10-12 Call and receive tomorrow’s orders 13-17 Planning
Products: Gasoline 95 Gasoline 96 Gasoline 98
Diesel Diesel, colored
A FULL TIME JOB!
+ =
The Internet first became available for Swedish consumers around 1993
A (bad and expensive) mix between Teletext and the Yellow Pages
Not very pretty
Few people with computers
15 years later, in 2008, Google Flu Trends was launched
Based on what people google and where their computer is located
Ten days ahead of the official flu
tracker
www.google.org
How will we use the technology in 10 years?
We have no idea. !
almost
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
How will we use the technology in 10 years?
We have no idea. !
...and neither does she, but she will be dissatisfied with stuff that we think are
pure science fiction and almost magic.
almost
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
Per Olof Arnäs Stage Coach Wheel by arbyreed on Flickr
Development of transportation technology has been
fairly linear
…for the last 5500 years
A new global eco system where new types of, knowledge based, industries
compete with traditional ones
http://bryce.vc/post/18404303850/the-problem-with-innovation
Startups don’t compete with airlines...
by purchasing a bunch of planeshiring a bunch of pilots
and locking up a bunch of terminals at airports.
Miniature Airport by disparkys on Flickr
Startups compete with airlines by
inventing videoconferencing.
http://bryce.vc/post/18404303850/the-problem-with-innovation
Startups don’t compete with airlines...
Miniature Airport by disparkys on Flickr (CC-BY,SA)
by purchasing a bunch of planeshiring a bunch of pilots
and locking up a bunch of terminals at airports.
In S
ea
rch
Of
Lo
st T
ime
by
bo
ge
nfr
eu
nd
on
Flic
kr
The biggest problem in transportation is time.
There is not enough of it.
Ever.
Strategic Tactical Operational Prognosis
Time horizons
We are approaching this boundary
…and we are starting to move past it!
Realtime!
Goods Vehicle
Business process
Infra-structure
Barcodes RFID
Sensors
ERP systems TMS systems
E-invoices Cloudbased
services
Order handling Driver support Vehicle economics
RDS-TMC Road taxes Active traffic support
Digitization fronts
Business processes
Infra- structure
Paper based Phone
Papers
Road signsAnalogue
tools
RDS
Monitor fuel
cosnumption
Digitization version 0 0.5 1.0 1.5 2.0
E-m
ail
Fax
TMS
-
systems
Excel
Route planning
GPS for n
avigatio
n
Electro
nically
genera
ted
freig
ht docum
ents
Barcodes
RFI
D-t
ags
Simple order handling
Advanced order handling
Open interface
Web based U
I
Platform
based
systems
Hardw
are-
oriented
Data collection
systems
(prop
rietary)
Com
munication
with vehicles
E-invoice
Web based
bookingRoute
optimisation
Th
e so
cia
l web
Open connectivity
Integrated
prognosis
Data collection
systems (open)
Tolling
systems
Webservices
with traffic data
Dyn
amic
ro
utin
g sy
stem
s
Pe
rform
an
ce
Ba
sed
ac
ce
ss
Pe
rfo
rma
nc
e
Ba
sed
ac
ce
ss
Mas
hups
Mul
tiple
dat
a so
urce
s
Pro
be
dat
a
Individual
routin
g
inform
ation
Platooning
PlatooningExceptions handling
Sm
art g
ood
s
Manual
Computers
Software
Functions
Dis
trib
uted
deci
sion
m
akin
g
Goods as bi-
directio
nal
hyperlink
Paper based
CC-BY Per Olof Arnäs, Chalmers
Goods Vehicle
Goods
Vehicles
Business processes
Infrastructure
Stra-tegic
Tac-tical
Opera-tional
Prog-nosisWhat happens
when access to real-time data increases?
not quite clear on the concept by woodleywonderworks on Flickr (CC-BY)
140 characters Hyperlinked @-names
RealtimeUnilateral
subscriptionHyperlinked #-tags
Automagical geocoding
When the shipment passes a reader, the message is sent automatically
The shipment reports often
Whoever is interested can keep track
Association is done in realtime and is reported instantly
The shipment is associated with Vehicle 18
and Shipment 2345
If you subscribe to one, you subscribe
to all of them
But… does this mean that all pallets will have onboard computers now?
No, of course not.
It is enough that it has a digitally readable identity, like a RFID tag
But… does this mean that all pallets will have onboard computers now?
No, of course not.
It is enough that it has a digitally readable identity, like a RFID tag
All logic is located in the reader
SubscriptionSubscription
Subscription
Subscription
My own data
Combine
Remix
MashupCreate value
SE
TI b
y P
au
lo A
leg
ria
on
Flic
kr
SubscripAon
Publish
PubSub
SubscriptionSubscription
Subscription
Subscription
SE
TI b
y P
au
lo A
leg
ria
on
Flic
krT
his is n
ot a
soc
ial m
ed
ia m
eg
ap
ho
ne
b
y mika
el a
ltem
ark o
n F
lickr
SubscripAon
Publish
PubSub
SubscriptionSubscription
Subscription
Subscription
SE
TI b
y P
au
lo A
leg
ria
on
Flic
krT
his is n
ot a
soc
ial m
ed
ia m
eg
ap
ho
ne
b
y mika
el a
ltem
ark o
n F
lickr
Operational data, not secret
Secret data
Order information
Customer information
Vehicle/Vessel ETA
Vehicle/Vessel position
Facility accessability
SubscripAon
Publish
PubSub
SubscriptionSubscription
Subscription
Subscription
SE
TI b
y P
au
lo A
leg
ria
on
Flic
krT
his is n
ot a
soc
ial m
ed
ia m
eg
ap
ho
ne
b
y mika
el a
ltem
ark o
n F
lickr
Operational data, not secret
Secret data
Publish
Publish
Publish
Publish
SubscripAon
Publish
PubSub
SubscriptionSubscription
Subscription
Subscription
SE
TI b
y P
au
lo A
leg
ria
on
Flic
krT
his is n
ot a
soc
ial m
ed
ia m
eg
ap
ho
ne
b
y mika
el a
ltem
ark o
n F
lickr
Operational data, not secret
Secret data
Publish
Publish
Publish
Publish
New data
Subscribe
Combine
SE
TI b
y P
au
lo A
leg
ria
on
Flic
krT
his is n
ot a
soc
ial m
ed
ia m
eg
ap
ho
ne
b
y mika
el a
ltem
ark o
n F
lickr
Benefits in transportation
Dialogue between vehicle and
infrastructureFootprinting Increase efficiency by
sharing data
CC-‐BY Per Olof Arnäs
Dialogue between vehicle and infrastructure
Access control
Probe dataJourney planning data
Graphic Conversation by Marc Wathieu on Flickr
Footprinting
Environmental
Energy use
Infrastructure use
Economical
...and 100! by MarcelGermain on Flickr
CC-‐BY Per Olof Arnäs
Increase efficiency by sharing data Matchmaking
Bottle-neck planningOptimize vehicle use
Optimize infrastructure use
http://www.gartner.com/newsroom/id/2575515Source: Gartner August 2013
Augmenting humans with technology
Machines replacing humans
Humans and machines working
alongside each other
Machines better
understanding humans and
the environment
Humans better understanding
machines
Machines and humans
becoming smarter
Gartners Hype Cycle for Emerging Technologies
http://www.gartner.com/newsroom/id/2575515Source: Gartner August 2013
Gartners Hype Cycle for Emerging Technologies
http://www.gartner.com/newsroom/id/2575515
?
Source: Gartner August 2013
Gartners Hype Cycle for Emerging Technologies
Transportation/logistics?
Business processes
Infra- structure
Paper based Phone
Papers
Road signsAnalogue
tools
RDS
Monitor fuel
cosnumption
Digitization version 0 0.5 1.0 1.5 2.0
E-m
ail
Fax
TMS
-
systems
Excel
Route planning
GPS for n
avigatio
n
Electro
nically
genera
ted
freig
ht docum
ents
Barcodes
RFI
D-t
ags
Simple order handling
Advanced order handling
Open interface
Web based U
I
Platform
based
systems
Hardw
are-
oriented
Data collection
systems
(prop
rietary)
Com
munication
with vehicles
E-invoice
Web based
bookingRoute
optimisation
Th
e so
cia
l web
Open connectivity
Integrated
prognosis
Data collection
systems (open)
Tolling
systems
Webservices
with traffic data
Dyn
amic
ro
utin
g sy
stem
s
Pe
rform
an
ce
Ba
sed
ac
ce
ss
Pe
rfo
rma
nc
e
Ba
sed
ac
ce
ss
Mas
hups
Mul
tiple
dat
a so
urce
s
Pro
be
dat
a
Individual
routin
g
inform
ation
Platooning
PlatooningExceptions handling
Sm
art g
ood
s
Manual
Computers
Software
Functions
Dis
trib
uted
deci
sion
m
akin
g
Goods as bi-
directio
nal
hyperlink
Paper based
CC-BY Per Olof Arnäs, Chalmers
Goods VehicleSome trends that we are very interested in
Lis
a fo
r I/
O K
eyn
ote
by
Ma
x B
rau
n o
n F
lickr
(C
C-B
Y)
Lo
ca
ls an
d To
urists #1
(GT
WA
#2): L
on
do
n b
y Eric
Fisch
er o
n F
lickr
Ora by cskk on Flickr (CC-BY)
Wearable tech Big data
3D Printing
Lis
a fo
r I/
O K
eyn
ote
by
Ma
x B
rau
n o
n F
lickr
(C
C-B
Y)
Wearable tech
We are becoming cyborgs
Physical interaction with the digital eco system
More than just entertainment
Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr
So what can we do with all this
data?
Waze is based on the fact that everybody running the app automagically delivers data. No central ”traffic control”!
Crowdsourced
traffic- and map
data
Many-to-many communication
Example of data sharing that works
Free for
consumers
Capacity radar Matchmaking
ETA-projectionsBottle
neck
status
Data layers that could be applied in freight
Opportunities
Digitization Increasing goods volumes
New technology
Political
interest
Quad Aces by fitzsean on Flickr
Northern LEAD Logistics Research Centre
Founded by: Chalmers University of Technology
University of Gothenburg Logistics and Transport Society LTS
Northern LEAD coordinates and supports logistics research at Chalmers and University of Gothenburg in order to increase volume, quality and relevance of the research
What we do
stairs by Denis Jacquerye on Flickr
Tomorrow’s logistics. We are finding the answers.
Around 70 researchersResearch centre for sustainable logistics
solutionsFive core research
groups Organises, facilitates, disseminates highly
relevant logistics researchCollaboration between
Chalmers and University of Gothenburg
Physical Distribution
Production Logistics
Industrial marketing & purchasing
Logistics & Transport
Optimization
Professors 10 Visiting Professors 6 Associate Professors 5 Post docs 6 Faculty 14 PhD students 32 Total 73
Five core research groups
Thought leadership through
high quality research and
innovation
Challenges and trends
Outcomes for policy and business
Volatility and risk
Demographic changes
Complexity and structural flexibility
Resource limitations
Manufacturing and retail revolution
Environmental impact
Focused areas
Urban Transport
Long Distance Transport
Purchasing of transport
Logistics and Production Networks
Information, planning and
control
Measurements and measuring
Service development in
networks
Resource utilisation
Intermodality
Realtime applications
Expanding delivery front
Stand by
shipments
Dynamic
shortcuts
Platoon
parking
Foliated transportation network
Intelligent V2I
communication
Some o
ther
Super Cat by Photo Extremist on Flickr
Data sharing
Basic data From/To/What/When Owner: the customer
Resource allocation What vehicle?Owner: Traffic controller
Cargo information Loaded amount Owner: Supplier
Proof of Delivery Time/date/signature Owner: Driver
Pricing Owner: Financial dept.
Enough information to create invoice
All of these steps cost money!
From order to invoice
Goal: De-couple the dependecy between administative cost and order volume
Number of orders per year
Total cost for administration of
all orders
An increase in the number of orders lead to increased cost
Handle exceptions – not transactions!
Technology Management and Economics Logis4kcs and Transporta4onCC-‐BY Per Olof Arnäs
1989:A FULL TIME JOB!
2 hours
4 hours
2 hours
Technology Management and Economics Logis4kcs and Transporta4onCC-‐BY Per Olof Arnäs
2013: TWO HOURS. MAX.
0 hours
1-2 hours
0 hours
How will we use the technology in 10 years?
We have no idea.
!
!Per Olof Arnäs
about.me/perolofarnas @Dr_PO
Slides published on slideshare.net/poar
some
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
Kolla gärna in min crowdsourcade logistikblogg Logistikfokus.se
(Sveriges första och troligtvis enda)
Be sure to check out my crowdsourced logistics blog Logistikfokus.se
(Sweden’s first and probably the only one)
Yes, It’s in Swedish but Google Translate works wonders these days ;-)
Exklusiv förhandsvisning av ny design som kommer inom kort!
Exclusive preview of the new design that will be released shortly!