Network of Logistics Brokers in Central Europe Territories

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Network of Logistics Brokers

in Central Europe Territories

Speaker: Stefano Dondi

Prague - CE Cross fertilisation Workshop 24th November 2010

KASSETTS research objectives

New ICT services to support SMEs in this field– Demand aggregation and optimal route definition

– Identification of the most convenient transport solution

– Preparation, exchange and translation of transport-related documents

Through a network of intermediary logistic coordinators– Working at a regional scale, collaborating with each other

– Involving selected manufacturing and distribution companies

– Involving selected transport service suppliers

Improvement potential on environment (and business)– +23% of average saturation index, -20% of kilometres


Operational scenarios

Regional scenarios (one broker involved)– Manufacturing company fleet planning

– Small logistic operator fleet planning

– Demand aggregation and planning

– Offer matching

– Demand matching

– Import/export of documents from legacy systems

Trans-national scenarios (2 or more brokers involved)– Joint mission computation

– Joint mission completion

– Multilingual document exchange


The domain ontology

Logistic Sector Ontology– Focus on the knowledge exchanged between relevant actors

– Ready in English and translated into 7 EU languages

– Czech, German, Hungarian, Italian, Polish, Slovenian, Slovak

– Built in OWL with an extension of PROTEGE

– Facilitated web interface for term definition and translation

– Export in XML format

– Mapping between different XML formats with MAPFORCE ALTOVA

– Automatic translation service

Prague - CE Cross fertilisation Workshop 24th November 2010 5

WPs interrelation

WP5

Stakeholder & Best practices

Company selection:• sectors/industries

(Compatibility)• transport needs from/to the

KASSETTS regions/areasWP6

Pilots implementation:• Implementation of real

pilots tests• Indication for Roadmap

•Media•Non media communication

• ICT Tools

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Selected Good Selected Good

practices for ICT based practices for ICT based

logistic cooperationlogistic cooperation


Research approach, methodology

Based on background projects– CORELOG: optimisation of logistic flows in the supply chain

(INTERREG IIIB CADSES)– MATAARI: optimisation of logistic flows in industrial districts (INTERREG IIIB MEDDOC)– STIL: ICT services to promote on-line logistics at the regional scale

(Emilia Romagna Regional Telematic Plan)– SEAMLESS: automatic translation of exchanges business documents

(FP6 - IST Call 4: Strategic objective: 2.4.13 Strengthening the Integration of the ICT Research Effort in an Enlarged Europe)

A local experience to exploit and extend– The Logistic Broker, acting in the Modena province since May 2008– Some local manufacturing companies are involved– Some local carriers are qualified as service suppliers– Twice a day planning of the aggregated demand– www.mo.brokerlogistica.net


Considerations

Experiences focused on collaboration and, more precisely, on fair co-opetition, meaning collaboration + competition among SMEs,

MATAARI and CORELOG, report the viewpoint of manufacturers of different size (mostly SMEs) in terms of optimisation of internal fleets and demand aggregation

MATAARI introduces the need of an intermediate entity managing the aggregated demand, and CORELOG characterises the broker profile and provides its basic operational tools.

STIL is addressed to manufacturers, logistic operators and platforms, logistic brokers, to support their interaction without impacting on their legacy systems and provide them with advanced route planning tools

ICT technology plays a fundamental role as enabler of new ways of working, especially with respect to: ensure the application of agreed collaboration rules support planning and re-planning taking into account different policies (optimisation,

balanced assignment) allow electronic exchange of documents for mission monitoring and accounting.

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KASSETTS ToolKASSETTS Toolfor Consolidating Cargo for Consolidating Cargo

FlowsFlows


Platform structure

Document management & exchangeDocument management & exchange

GU

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DOM DOMDOM DOMC

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Broker workspaceBroker workspace

Regionalplanning

Regionalplanning

Transnationalplanning


The Broker manager

One Customer One Carrier

Legacy system Other Brokers


Domain ontology translation By means of the Ontology Manager web application To translate vocabulary and user interface concepts and terms Into the local language of the single Broker, if not yet available For automatic generation of GUI in local language

Geographical information Localities (where sites to visit are located) Geo-clusters (territory coverage delimiting sites to visit by a single mission)

Other basic information Companies (customers, carriers) Users (access credentials) Vehicle types Mission cost distribution policy

Platform initialisation

GUIGUI

Broker workspaceBroker workspace


Start-up CUSTOMER: Sites of interest (clients, suppliers, subcontractors) CUSTOMER: Types of packages used CUSTOMER: Internal fleet, if any, with truck work calendar and price list CARRIER: Infinite capacity fleet, price list

Main activities, CUSTOMER Issuing new transport requests Updating internal fleet calendar Evaluating priced transport missions Receiving periodical pro-forma invoices

Main activities, CARRIER Updating fleet configuration and price list Receiving transport mission to execute Receiving periodical pro-forma invoices

User operations

GU

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Carrier

wo

rkspace

Carrier

wo

rkspace

GU

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Acquisition of transport requests By using the platform web interface By importing orders from the legacy system

Planning Internal fleet planning (on the fleet owned by the request issuer, if any) Extended internal fleet planning (to saturate the internal fleets) Infinite capacity planning (optimal routes and most suited vehicle types) Computation of mission prices according to candidate carrier price lists.

Transport mission assignment Mission assignment to the

most convenient carrier In case of rejection, assignment

to another candidate carrier

Broker: regional scale

GUIGUI

Regionalplanning

Regionalplanning


Transport demand management Customers can publish a demand for last-minute or special transport Carriers can publish a demand to find out possible subcontractors Carriers can reply to transport demands when able to satisfy them Each transport demand expires after a given date

Transport offer management Customers can publish an offer to complete their own fleet routes Carriers can publish an offer to saturate empty runs Carriers (or customers with fleet) can reply to transport offers Each transport offer expires after a given date

Automatic generation of offers Transport offers are automatically

generated by the internal fleet planning So as to complete each truck milk run

Demand/offer matching

GU

IG

UI

DOM DOM

GU

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UI

GUIGUI


Document management Docs are composed with the application web interface Docs are imported and exported from/to legacy systems Docs are sent and received between users Docs can be private or public (accessible to counterparts)

Document exchange When importing/exporting a format transformation occurs When sending a document to a user associated to another Broker

a language translation occurs Format mapping and language translation

are based on the Ontology Manager

Doc mgt and exchange

Document management & exchangeDocument management & exchange


Document management Docs are composed with the application web interface Docs are imported and exported from/to legacy systems Docs are sent and received between users Docs can be private or public (accessible to counterparts)

Document exchange Documents are exchanged between brokers during the transnational planning Broker A sends transport requests to Broker B (internal KASSETTS format) Broker B replies to Broker A the computed transport mission (internal KASSETTS format) This document exchange is transparent to the user

Doc mgt and exchange


Import scenario Feeding the KASSETTS platform with transport requests from a legacy system

Step 1: Definition of the data schema. The customer provides the data schema of its legacy system (e.g. XSD, Excel, database)

Step 2: Definition of the mapping file. The XSLT file is generated with the conversion rules Step 3: Preparation of the run-time service. The XSLT mapping file is imported into the

KASSETTS platform, to be used at runtime.

Import of documents

KASSETTS GLOB

XML Legacy ITXSLT mapping


Export scenario Saving a transport invoice, a transport mission, or a CMR in the legacy system

The steps are the same as defined for the import scenario.

Export of documents

XSLT mapping XML Legacy IT

KASSETTS GLOB


The mapping process

A manual procedure Format mapping > first it is necessary to code the relations between fields (1 to 1, 1 to N, M to 1 relations, functional relations) Language mapping > second it is necessary to translate critical terms


ROAD Brokering Models

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BROKER

L S M

BASIC APPROACH OPERATOR APPROACH


ROAD - RAIL Brokering Model

Region A

Region B

Rail Transport

Rail Node

Rail Node

Road Transport Road

Transport

Trans- regional transport (medium/long distances) This is the most common transnational transport scenario With picking in the origin region and delivery in the destination region Then involving the two Brokers acting in the respective regions Also suited for regular transport services (freight bus) And basic condition for road-rail / Co-modal or intermodal solutions

A 3-stage model The picking stage is completely performed in the origin region Then a long-distance journey takes place between the two regions Finally the delivery stage is completely performed in the destination region


Test version (English)

A test version in English is available for free tests by PPs and anybody else interested in testing the ICT platform functionality.

This version is available at the following address:

http://nic.ing.unimo.it/broker-en/ User id: broker Password: broker

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Network of Logistics Network of Logistics

BrokersBrokers


The Network of Broker

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Network: Business and Governance model

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Financial aspects

Framework

Rules on how brokers jointly face future decisions in terms of:

- Technology, - Organization- Financing

Target group:- Started up brokers- Future brokers

Legal aspects

Technologyaspects

Soft aspects


Possible KASSETTS network – Issues/1

Stage 1 – Involvement of customers Broker support during setup Suitable business model Establishment of rules for conflict

resolution Establishment of rights and licenses

for users Establishment of regulations for

software usage, billing, distribution costs and incomes

Head UNITHead UNIT

stage 1stage 1

MACRO-planeMACRO-plane

Broker Xstage 2stage 2

SME / SME / Carrier Carrier

stage 3stage 3

MICRO-planeMICRO-plane

Broker Y


(mixed structure)

(centralized structure)

Information flows

Information flows



Stage 2 – Definition of broker Suitable business model Establishment of rules for conflict

resolution Establishment of regulations for

distribution costs and incomes Matching to pre-determined regions Creation of transparent and unified

prices, costs, standards, framework-conditions according to country-specific facts

Control of brokers neutrality Agency problems Terminability of broker execution Cultural differences

Head UNITHead UNIT

stage 1stage 1




stage 3stage 3


Broker Y


(mixed structure)


Information flows

Information flows



Stage 3 – Definition of broker-interaction with actors and head unit

Broker support during setup Avoidance of insufficient cooperation

willingness of actors Creation of transparent and unified

prices, costs according to country-specific facts

Influence on cash flow process by brokers

Determination of exclusion criteria

Head UNITHead UNIT

stage 1stage 1




stage 3stage 3


Broker Y


(mixed structure)


Information flows

Information flows


ICT Platform Use

Service hosting (during the project, after the project completion)

Privacy of data Ownership of results Work hypothesis for New broker:

Open approach and scalable: Knowledge dissemination, Constraint to act as a node of the network;

Work hypothesis for New services: Open approach, favouring the diffusion of new solutions with respect of

the network governance model

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Work hypothesis Select the most common and useful transport scenario Establish the mutual roles of collaborating Brokers Identify the kind of information they have to exchange Then develop the supporting functions and services

Broker: transnational (TN)

GU

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Region-to-Region transport This is the most common transnational transport scenario With picking in the origin region and delivery in the destination region Then involving the two Brokers acting in the respective regions Also suited for regular transport services (freight bus) And basic condition for road-rail / Co-modal solutions

A three-stage model The picking stage is completely performed in the origin region Then a long-distance journey takes place between the two regions Finally the delivery stage is completely performed in the destination region

Transnational transport scenario

Region A

Region B


Region B

Region A

User Company

Logistic Operator

LogisticBroker

FCP

Customer

Mission assigned

Carrier

ICP

DOM

Transportorders

Ordersconfirmed

Mission accepted

User Company

Logistic Operator

LogisticBroker

FCP

Customer

Mission assigned

Carrier

ICP

DOM

Transportorders

Ordersconfirmed

Mission accepted

FCP = Finite Capacity PlanningICP = Infinite Capacity Planning DOM = Demand/Offer Matching

Legacy system

Client

A comprehensive scenario

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Conclusion and outlook

Ontology and application services are ready– Candidate brokers are identified

– Pilot sites are being selected

– 4 Trans. pilots with participants from 7 regions will be running

– And showing the benefits of interoperating with each other

Further steps– Now the focus is on regional and transnational road transport

– Demand aggregation and optimisation pave the way towards modal shift (focus: Co-modality)

– Which now is typically out of the scope of the SME choices

– Extending as much as possible the opportunity of electronic document exchange and translation


Important Milestone - 5th Project period

• Open Brokers Network (Core output 5.2.2):– Establishment of a transnational interoperable logistic brokers network

as permanently operating and growing infrastructure.

– The network includes 7 brokers in the 7 pjt regions

• Governance and business model (Core Output 5.3.2):– Constitution of a light and effective governance system explicitly open to

new actors and to provision of new services.

• 4 Operational and Transnational Pilots:– validation process by executing real-life pilot actions involving

companies in different regions & resulting in the joint / real definition of efficient transport solutions

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Stefano Dondi

Viale Aldo Moro, 38 - 40127 Bologna - ItalyTel. +39 051 527 3737Fax +39 051 527 3169

E-mail: [email protected]

Contact information

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