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Presentation in the workshop: e-freight, IT Approach for Physical Internet and Modular, by Giancarlo Tretola, Physical Internet and Modular logistic may be built upon existing systems, integrating the current processes with the needed data and the related operation. The introduction of the modular containers and the related processes may be seen as an evolution rather than a revolution of the IT supporting Systems, ECITL 13 - Zaragoza.
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MODULUSHCA: IT Approach for Physical
Internet and Modular Logistics
Dr. Giancarlo Tretola
R&D Department, Meware S.r.l.
ECITIL 2013, October23-25 2013
Summary
• Foreword
• Introduction
– Physical Internet initiative
– MODULUSHCA
• IT approach in MODULUSHCA
– Scenario
– Approach
– Postal and FMCG logistics
• Conclusion
Foreword
• Modular logistic may be built upon existing
systems, integrating the current processes with
the needed data and the related operation
• The introduction of the modular containers and
the related processes may be seen as an
evolution rather than a revolution
Introduction
Physical Internet
• The most relevant research project for the
MODULUSHCA activities is the Physical Internet
Initiative
• Physical Internet is inspired to the way
information is packaged, distributed and stored
(packet switching) in the digital internet to
improve processes
• Researchers involved in the PI use the Internet
as a metaphor for a new way to move physical
objects through the supply chain
Physical Internet
• The Internet and the physical world are different,
mainly because on the internet data moves at
light speed and are “immaterial”. Data are
stored, if you lose it, you can often retrieve it and
there is no great incremental cost to ship more
data
• In the physical world, on the other hand, the
equipment move at limited speed, it is terrible to
lose a pallet, and there is an additional cost
every time someone touches an object
• A consequence of the internet metaphor for PI is
the need for a standardization in the containers
dimensions (π-container), which can allow an
automated and efficient handling of the loads
• Logistic π-network using PI approach are
composed of π-link for delivering π-container
• On this point MODULUSHCA may give a great
contribution exploiting activities already done in
the PI researches and, at same time, providing a
test bed for the PI ideas
Physical Internet
to enable more efficient flows of fast-moving consumer goods (FMCG)
− operate with developed iso-modular logistics units of adequate size
− provide a basis for a fully interconnected logistics system by 2030.
− Requirements and changes of standardized processes within open logistics networks
− exploit progress in digital and physical interconnectivity
− build on current assets & infrastructure
Objectives Consortium
Modulushca: A Practical Approach to Modular Logistic
Modular dimensions from cargo containers down to tiny sizes
Easy to handle, store, transport, interlock, load, unload, construct, dismantle, compose and decompose
Smart tag enabled, with sensors
Decomposi
on
Composi
on
MODULUSHCA New Modular Concept
IT approach in MODULUSHCA
Scenario
• Digital networks are heterogeneous (in terms of
technologies and manufacturers), yet only deal with data
• Logistics networks are not only heterogeneous but also
have to handle not only goods but also much
information, partially digitalized
• To enable seamless universal interconnectivity requires
a standard approach like was done for the Digital
Internet, OSI (Open Systems Interconnection) model
• This leads to proposing an Open Logistics
Interconnection Model (OLI) of the Physical Internet,
inspired to the OSI
Scenario: internet operation
• Internet is based on two synergic ways of operation:
• Connections point to point along the backbones with
the use of the methodology Store and Forward:
– Maintain a copy of the message until it is completely received by
the other end of the point to point channel
• The communication protocol is based on ARQ
(Automatic Repeat reQuest):
– ARQ is an error-control method for data transmission that uses
acknowledgements and timeouts to achieve reliable data
transmission over an unreliable service. If the sender does not
receive an acknowledgment, before a prefixed timeout, it re-
transmits the frame/packet until it receives an acknowledgment
or exceeds a predefined number of re-transmissions
Scenario: Differences
• Main differences are: in the Internet it is
transmitted information, so an immaterial
payload, while logistics is aimed at moving loads
of materials and the principal problems are:
– freight may be not stored and forwarded at the same
time and may not be re-sent
– freight handling is a costing operation
– bandwidth and linking is related to physical presence
of the carrier
– Items have physical parameters (weight, dimension,
etc.) and may be valuable or fragile
Approach: addressing issues
• Tracking and tracing approach for addressing
lack of store and forward and ARQ
• Logistic nodes planning have must be based
carrier availability on the links (cargo routing)
aiming at maximize cross-docking and
minimize storage
• M-Boxes modular dimension allows for optimal
filling and ease loading and unloading
Approach
• Objective: digital integration
– unique identification of the M-Boxes, unique id is key
for retrieving the related information (sender,
destination, etc.)
– allowing access to information with different access
rights for different roles,
– forwarding information along the supply chain
– locating the boxes (in space and time) in order to
trace them;
– observe events in the real word in order to bring them
in the IT world
Approach
• Integration of existing IT systems introducing
connectors and adapters for enabling interoperability
between them
• Definition of a software architecture, based on a layered
approach. Each layer deals with a specific problem.
• Moreover it is possible to consider several protocol, in
the same layer, offering different service level
• Definition of the collaboration information to be
exchanged by the partners along a modular supply
chain, in order to allow tracking, tracing and planning
Modulushca ICT Model vs PI/OLI Model
Physical Layer
Link Layer
Network Layer
Logistics Web Layer
Encapsulation Layer
Shipping Layer
Routing Layer
Client
Physical Layer
Link Layer
Network Layer
Logistics Web Layer
Encapsulation Layer
Shipping Layer
Routing Layer
Supplier
Physical Layer
I Layer
II Layer
Vision of Modulushca Architecture
Poste Italiane
P&G XYZ …
Adapter Adapter Adapter
II Layer
I Layer
Poste Logistic Network
ACME Logistic
Pacific Shipping Physical Layer
Modulushca Logistic Network
Connector Connector Connector
MODULUSHCA Architecture: Vision
• Architecture structured on 2 layers in analogy with TCP
and IP ones of TCP/IP protocol
• I Layer (MODULUSHCA Logistics Network):handles
the M-Boxes, implementing their transport, and it is
interfaced with existing logistic systems using dedicated
connectors
• II Layer (M-Box Grouping Layer): allows for
management of the transport grouping the M- Boxes,
allowing routing to be handled as a set of modular
logistics units to be delivered, it is interfaced with the
private information systems using adapters which
translate from the “actor's own IT system language" to
the "general MODULUSHCA language"
Information handling
• GS1 Global Standards for unique identification
of boxes, containers, products, location, etc.
• EPCGlobal initiative for allowing
interoperability and information exchange
• UPU Standards (a postal standard) is interesting
as an example of handling information
interchange and forwarding between “abroad”
partners, tracking and borders crossing
• Tracking of M-Boxes dynamic aggregation in
order to simplify the tracking and tracing
approach
Global identification
• SSCC (Single Shipment Container Code) identifier for
logistics units from GS1 organization
• Also other identifiers are important and helpful:
– GLN- Global location number
– GIAI – Global Individual Asset Identifier
– GTIN and SGTIN – Global Trade Item and Serial Global Trade
Item
– GSIN – Global shipment identification number
GTIN
SSCC GSIN
GLN
GLN GLN
GSIN GSIN GSIN GINC
GLN
GIAI
GIAI
GSIN GLN
EPCIS
• EPCIS (Electronic Product Code Information
Services) objective is to enable using Electronic
Product Code (EPC) data both within and across
enterprises
• EPCIS approach defines a standard interface to
enable EPC-related data to be captured and
queried using a defined set of service operations
and associated EPC-related data standards, all
combined with appropriate security mechanisms
that satisfy the needs of user companies
EPCGlobal Architecture
Postal Logistics
• The layered architecture may be related to the
actual status in Postal scenario:
– first level is managed by the T&T systems, which is
used for the handling of the single postal item
(grouping and dispatching)
– postal items are grouped in the second layer
containers and routed with support of ERP (TMS,
WMS)
II level : ERP Sap LES
Data collection
I level: Track & Trace system
Poste Italiane two layers containerization
Level II (Roll containers, baskets, pallets)
Used to handle the Boxes
Level I (Thermoplastic containers, bags e security
envelops)
“Box A” 50*30*17.5 cm max Weight 6 Kg
“Box B” 50*30*30 cm max weight 16 Kg
LSP: TMS-APS system
• TMS (Transport Management System): an application
used for handling the transport activities of an LSP
• APS (Advanced Planning & Scheduling): an application
used for handling the delivery processes and executing
them with the carriers
LSPs: 4C approach
• For enabling Interconnected Logistics, M-Boxes
and the PI, LSP need another way of using IT
systems: software should support intermodal
shipment and routing
• Each LSP will have to act as a 4C = cross
chain control centre, an IT component
enabling collaboration between TMS-APS
Systems
4C requirements
• What LSPs need:
– Independent logistic control centres (4C) able
to interact one with the other
– Open information exchange via TMS-APS
systems, using XML based approach
– Visibility on asset capacity, carriers availability
and link status
Conclusions
Conclusions
• Analysis focused on the identification of the information
needed to establish a digital interconnectivity
• In MODULUSHCA we considered two scenarios: Postal
scenario and FMCG scenario
• Poste Italiane uses grouping of items, using two “levels” of re-
usable containers; items are dispatched (common
destination items are grouped and handled as a unique meta-
item)
• Jan De Rijk works in a similar way to Poste Italiane, TMS
Booking Systems performs a regrouping of items with
common destination; their IT Systems uses a ESB, which may
be used for interconnection with ESB of other LSP
• Points of interest that have to be considered are the logistics
concepts of Cross-Docking and Storage.
Convergence
• The goal we are considering is to have the two scenarios
(FMCG and Postal) convergence, where the common
system of transport and delivery is realized using M-
Boxes
• Considering dispatching of items, M-Boxes delivery may
be accomplished handling the modular containers with a
black box approach, and tracking the box for tracking the
content
• modular container should be assembled on three levels:
physical level, electronic level and computing information
level, in order to be handled as a unique container
• Points of interest that have to be considered are the
logistics concepts of Cross-Docking and Storage.
Open points
• The ICT play a critical role in the Modulushca
and in the interconnected logistic, the challenge
is to focus on a sustainable roadmap
• Security, business and political implications are
substantial and must not be underestimated
• Standards, data sharing and collaboration
protocols have to be defined and accepted