Future challenges in transportation (handels 20101011).pptx

www.trb.se © Per Olof Arnäs, TRB Sverige, @Dr_PO

Feel free to tweet about this using the hashtag #drpolecture

Future challenges in transporta6on

(and logis6cs)

Per Olof Arnäs, PhD TRB Sverige per-‐[email protected]

www.trb.se



How much of the goods transported by the haulage industry are loaded on pallets?

Source: SIKA



How much of the traffic work* are dedicated to the transport of pallets?

* Traffic work = Vehicle km

Source: SIKA



How much of the transport work* are dedicated to the transport of pallets?

* Transport work = tonne km

Source: SIKA



Number of trucks equipped to transport pallets

Source: SIKA



What do all the other trucks do?

Source: SIKA



A resource-‐ and competence center 16 partners Turnover 13.5 bn SEK (1.4 bn euro) 7 900 vehicles: 5 900 trucks 2 000 heavy duty machines

10 500 employees Almost 20% of the Swedish haulage industry 2,5 million orders for 80 000 customers Owns more than 30 terminals and 80 quarries

Updated 2010-02-02

Alltransport Norrköping

GDL Helsingborg

MLT Uppsala

ALWEX Växjö/Alvesta

GKF Frakt Kris6anstad

Närkefrakt Örebro

BDX Norrbocen

GLC Göteborg

Samfrakt Kalmar

Bilfrakt.se Skelleeeå/Umeå

LBC Frakt Karlstad

Sundfrakt Sundsvall

Centralen Trollhäcan

LBC Varberg Varberg

FORIA Södertälje

MaserFrakt Borlänge



LBC-‐companies

Owned by hauliers

Regionally focused

One-‐stop shopping Construc6on industry Waste management and recycling Tradi6onal goods transport Tank and bulk Forest transports Industrial transports 3PL-‐services (storing, kilng etc.)



Focal areas The work of TRB is closely related to issues relevant for the single haulage company Environmental issues Logis6cs Fuel and supplies IT Procurement Educa6on Safety issues



Haulage companies own vehicles that are used by…

…transport companies that service…

…customers that own…

…flows that are controlled by…

…logis6cs principles

1 2

3 4

5



Maintenance

ROI

U6lisa6on

Fuel economy

Second hand value

Alco lock

ISA – Intelligent Speed Adapta6on

Cer6ficates

Driver Educa6on

Rules and regula6ons

Safety

Security

Selec6on of fuel

Mobile IT-‐systems



The role of a vehicle in the informa6on system

Data consumer: • Order data • Traffic data • AdministraMve data

Data producer: • Order data • Traffic data • AdministraMve data • OperaMon data

Today, most of this communicaMon is carried out by phone, paper, and pencil. In the 70’s, radio communicaMon was used, nothing of note has happened otherwise…

To meet future customer requirements, all of this communicaMon needs to be electronic



Utlilisa6on

Cer6ficates

Educa6on

Customer contacts

Environmental repor6ng

Resource alloca6on

Route op6misa6on

Transport Management

Service Level

Security Safety

Mobile IT-‐systems

System integra6on

Track and Trace RFID



The customer pays for transport work. Measured in tonne km.

The haulier’s costs are driven by traffic work.

Measured in vehicle km.

The transport company wants to maximise the amount of transport work and minimise the amount of traffic work

This mechanism is

fundamental to all transport opera6ons!

vehicle km

tonne km

MAX



From order to invoice (transporta6on company)

Basic data From/To/What/When Owner: the customer

Resource alloca6on What vehicle? Owner: Traffic controller

Cargo informa6on Loaded amount Owner: Supplier

Proof of Delivery Time/date/signature Owner: Driver

Pricing Owner: Financial dept.

Enough informa6on to create invoice

All of these steps cost money!



Goal: De-‐couple the dependecy between administa6ve cost and order volume

Number of orders per year

Total cost for administra6on of

all orders

An increase in the number of orders lead to increased cost

Handle excep6ons – not transac6ons!



Cabotage ”Cabotage is the transport of goods or passengers between two points in the same country.” (Wikipedia)

Sweden has a rela6vely high salary level compared to several of the nearby countries such

as the Bal6c states and Poland

Mainly FTL – low barrier The simple reposi6oning of a semi-‐trailer

only requires a trailer truck and a GPS

As soon as value added service elements are introduced in the end points, cabotage becomes more difficult LTL Consumer contact Construc6on industry Etc.



Four strategies to reduce the environmental footprint of transporta6on

Use less fuel Educa6on Feedback/follow-‐up system

U6lise vehicles more efficiently Planning systems

Informa6on sharing throughout the chain

Use alterna6ve sources of energy Limited availability Warran6es from engine manufacturers

Reduce distances in 6me Resolve conges6on

Use low-‐intensity periods Redirect traffic dynamically

Image: Aspen Petroleum



Service level

Transport Quality

Price

Reliability Environmental footprint

Lot sizing

Stock levels

System integra6on

Environmental repor6ng

Security



Central warehouse – tradi6onal layout

•  Manufacturers deliver to the same warehouse

•  Sales offices have their own warehouses close to their markets

•  Sales offices order from the central warehouse

•  Several transportaMon companies involved



Example, decentralised system

•  A customer in Östersund (middle of Sweden) orders products before 15.00 day 0. The warehouse is in Helsingborg (south of Sweden).

•  Delivery within 44 hours (before 11 day 2)

•  Day 0: –  Order registra6on

•  Day 1: –  Picking –  Prepare shipment –  Pick up by hauler –  Line-‐based transport to des6na6on terminal

•  Dag 2: –  Distribu6on to consignor before 11 o’clock

Day 0 Day 1 Day 2

15:00 11:00 44 h



Central warehouse – new layout

•  Manufacturers deliver to the same warehouse

•  Sales offices collect orders and work the market

•  The central warehouse delivers directly to the customer

•  Probably only one transportaMon company involved



Example, centralised system

•  The same customer in Östersund order products before 15 day 0. The warehouse is in Brussels.

•  Delivery is s6ll carried out within 44 hours (before 11 day 2) •  Day 0:

–  Customer orders electronically. The order is sent directly to the forklie in the central warehouse. –  Picking is instantaneous

–  Shipment prepared for the ”Sweden line” –  Pick up by hauler, transport to transshipment loca6on in Sweden (ca 16 h)

•  Day 1: –  Transshipment at line-‐based terminal

–  Line-‐based transport to receiving terminal

•  Day 2: –  Distribu6on to consignor before 11 o’clock

Dag 0 Dag 1 Dag 2

15:00 11:00 44 h



Lot sizing

Uniqueness

Length

Goods or products Goods Heterogeneity

Width

Repe66veness



What makes some goods heterogeneous?

Difficulty of handling

Poor stowability

Extended liability

Low/high density

FOUR

DIMENSIONS



Informa6on

Handling

Coordina6on Planning

Time

Control Tower



Counter

Customer order point/Warehouse

Resellers

Customers

Production

Wholesaler, ”Supply chain manager”

Frie

s D

eep fry



Transport

Traffic

Goods Vehicles/ vessels

Ways and terminals

Sjöstedt, L. (2005) A conceptual framework for analysing policy maker's and industry roles and perspec6ves in the context of sustainable goods transporta6on In Barriers to sustainable transport : ins0tu0ons, regula0on and sustainability Rietveld, P. and Stough, R. (Eds) Spon, London, pp. 198-‐222.

The haulage industry mainly focuses on the vehicles



LokalisaMon Land use

Sourcing och distribuMon

Products

LocaMon FaciliMes


Transport buying companies tradiMonally focus on products and their movements


Feel free to tweet about this using the hashtag #drpolecture 10-‐10-‐11 : 31

Transport

Traffic

Goods Vehicles/ vessels

Ways and terminals

LocalisaMon Land use

Sourcing and distribuMon

Products

LocaMons FaciliMes




Haulage companies own vehicles that are used by…

…transport companies that service…

…customers that own…

…flows that are controlled by…

…logis6cs principles



How will the future play out for transporta6on companies?

It is Mme to connect the various enMMes to each other

6



Connected|Vehicle Seamless communica6on WiFi, 3G/4G, GPRS, Satellite, RFID etc.

First:

Replace current data with electronic alterna6ve

Then: Create new func6onality that uses the new infrastructure

GIS-‐services Vehicle management

Infotainment ”Run6me” cost/revenue 6cker

Subscribe to vehicle func6onality as needed, e.g. extra horse powers



Connected|Business

When data becomes readily available, data

mining becomes possible Visualisa6ons and mash-‐ups to assist decision making

Large-‐scale and frequent route-‐ and load op6misa6ons



Connected|Goods The goods will be able to inherit and process the state of their load carrier

The goods will, by their own accord, be able to change route and otherwise affect their movement

The RFID technology taken to the next step

True distributed decision making



Connected|Infrastructure

Slot management

Conges6on control

Dynamic road pricing



And finally… The Internet became accesible for Swedish consumers 15 years ago

A (bad and expensive) mix between Teletext and the Yellow Pages

Not very precy

Only nerds owned computers



And finally… Today, 15 years later, we have

sites like Google Flu Trends Based on what people google and where their computer is located

Two weeks ahead of the official flu tracker

www.google.org



How will we use the technology in 15 years?



Thank you!

Per Olof Arnäs per-‐[email protected]

www.trb.se twiger.com/Dr_PO

Future challenges in transportation (handels 20101011).pptx

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