Digitization of the transport industry

More than digital pieces of paper !!

Per Olof Arnäs Chalmers

@Dr_PO per-olof.arnas@chalmers.se

about.me/perolofarnas

Technology  Management  and  Economics  Logis4kcs  and  Transporta4onCC-­‐BY  Per  Olof  Arnäs

Technology  Management  and  Economics  Logis4kcs  and  Transporta4onCC-­‐BY  Per  Olof  Arnäs

1989

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!

Digitization of the transport industry

More than digital pieces of paper !!

Per Olof Arnäs Chalmers

@Dr_PO per-olof.arnas@chalmers.se

about.me/perolofarnas

+ =

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

The Transportindustry

3 things:

Carbon-free transport by Stéfan on Flickr

…physical

3d boxes by crystaljingsr on Flickr

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

Per Olof Arnäs Stage Coach Wheel by arbyreed on Flickr

Development of transportation technology has been

fairly linear

…for the last 5500 years

We are in the middle of a gigantic exponential development curve

beginning

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.

Addicted to dead trees

Physical flow

Original? Copy?

Ownership

Consignor

Consignee

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!

Digitization frontsGoods Vehicle

Business process

Infra-structure

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

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)

Opportunities

Digitization Increasing goods volumes

New technology

Political

interest

Quad Aces by fitzsean on Flickr

Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr

We produce vast amounts of data

Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr

All the time.

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

So…

What are we doing about

all this?

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

Green Leaf of a Bio Plant in Nature by epSos .de on Flickr

This high quality research

contributes to

… a sustainable logistics development

…gives companies

competitive advantages

…and benefits society

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

Project proposal: Smart access/guidance control

Project proposal: Smart access/guidance control

Project proposal: Smart access/guidance control

Project proposal: Smart access/guidance control

Project proposal: Smart access/guidance control

Project proposal: Smart access/guidance control

Project proposal: Smart access/guidance control

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

Not all ideas age with grace

Someone must do the work

Not everyone will want to adopt new things…

…or change habits

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

per-olof.arnas@chalmers.se

about.me/perolofarnas @Dr_PO

Slides published on slideshare.net/poar

some

The girl and the iPad by Niclas Lindh on Flickr (CC-BY)

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