Transportation - Fundamentals and future

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

Feel free to tweet about this using the hashtag #drpolecture

Transporta7on Fundamentals and Future from a

Transporta@on Company Perspec@ve

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

@Dr_PO



Image: Connected. 362/365 by AndYaDontStop on Flickr.com

Image: fruit salad by fishbone1 on Flickr.com



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 Kris7anstad

Närkefrakt Örebro

BDX Norrboben

GLC Göteborg

Samfrakt Kalmar

Bilfrakt.se Skelledeå/Umeå

LBC Frakt Karlstad

Sundfrakt Sundsvall

Centralen Trollhäban

LBC Varberg Varberg

FORIA Södertälje

MaserFrakt Borlänge



LBC-‐companies

Owned by hauliers

Regionally focused

One-‐stop shopping Construc7on industry Waste management and recycling Tradi7onal 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 Logis7cs Fuel and supplies IT Procurement Educa7on Safety issues



Haulage companies own vehicles that are used by…

…transport companies that service…

…customers that own…

…flows that are controlled by…

…logis7cs principles

1 2

3 4

5



Maintenance

ROI

U7lisa7on

Fuel economy

Second hand value

Alco lock

ISA – Intelligent Speed Adapta7on

Cer7ficates

Driver Educa7on

Rules and regula7ons

Safety

Security Selec7on of fuel

Mobile IT-‐systems



Utlilisa7on

Cer7ficates

Educa7on

Customer contacts

Environmental repor7ng

Resource alloca7on

Route op7misa7on

Transport Management

Service Level

Security

Safety

Mobile IT-‐systems

System integra7on

Track and Trace

RFID

Sustainability

Reliability



Service level

Transport Quality

Price

Reliability

Environmental footprint

Lot sizing

Stock levels

System integra7on

Environmental repor7ng

Security



Uniqueness

Length

Goods or products?

Goods Heterogeneity

Width

Repe77veness



Informa7on

Handling

Coordina7on

Planning Time

Control Tower



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 opera7ons!

vehicle km

tonne km

MAX

The

Transport Equa7on



vehicle km

tonne km

MAX

Transport Equa7on =



What signifies a ”good transport”

Image: que? by M i x y on Flickr.com



Transport Quality? No delays

Expected result

Low cost

No damages to goods

All stakeholders sa7sfied

No thed/pilfering

Low environmental footprint

No traffic accidents

High profitability



Stakeholders

Images: shoppers-‐mexico by Jungle Jim's Interna@onal Market on Flickr.com

city of lights by paul (dex) busy @ work on Flickr.com

Consignor

Driver Haulage company Society

Consignee

Transport buyer

Transport company



Transport Quality

Security

Sustainability Reliability

Safety

Cost



Transport Quality

Security + Safety + Reliability + Sustainability Cost



Transport Quality

Security + Safety + Reliability + Sustainability Cost

Security x Safety x Reliability x Sustainability Cost



Security

Image: Hijacking by pasukaru76 on Flickr.com

Protec7on against crime

Hijacking

Thed from terminal

Vandalism

Thed from vehicle

Rest stops

Alarm systems

Surveillance

Security x Safety x Reliability x Sustainability

Cost



Safety

Image: Day 96 by pasukaru76 on Flickr.com

Safety against injury

ISO 39001

ISA-‐systems

Alcolock

Seat belt usage

Load securing

Vehicle maintenance

”Zero vision”

Security x Safety x Reliability x Sustainability

Cost



Reliability

Image: Trooper with iPod by bfishadow on Flickr.com

Delivery windows

Disturbance handling

Informa7on sharing

Devia7ons repor7ng

Regularity

Redundancy

Control Tower

Service level Security x Safety x Reliability x Sustainability

Cost



Sustainability

Image: Lego explorer by jonathanb1989 on Flickr.com

Eco-‐driving

Energy usage

Choice of fuel

Choice of engine

CSR Traffic work

Choice of sub-‐contractor

Emissions

Load ra7o Security x Safety x Reliability x Sustainability

Cost



Four strategies to reduce the environmental footprint of transporta7on

Use less fuel Educa7on Feedback/follow-‐up system

U7lise vehicles more efficiently Planning systems

Informa7on sharing throughout the chain

Use alterna7ve sources of energy Limited availability Warran7es from engine manufacturers Reduce distances in 7me

Resolve conges7on Use low-‐intensity periods

Redirect traffic dynamically

Image: Aspen Petroleum



Transport Quality Transport Quality is a complex term

A systems perspec7ve is needed

Image Apples & Oranges – they don´t compare by TheBusyBrain on Flickr.com




Transport Quality Transport Quality is a complex term

A systems perspec7ve is needed






Transport Quality =

vehicle km

tonne km

MAX

Transport Equa7on =




Trends

Image: Crystal Ball by deanfotos66 on Flickr.com

Centralisa7on Storage Decisions

Electronic transac7on handling Devia7ons instead of transac7ons Cabotage

Easy to compete with standardised transport services

Sustainability/CSR A central management issue

Consolida7on Fewer and larger players

”Toyota-‐84” LEAN is applied in several areas, e.g. construc7on

Customer focus Demand Chain vs Supply Chain

Ver7cal integra7on Transporta7on companies extend service scope



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

Sweden has a rela7vely high salary level compared to several of the nearby countries such

as the Bal7c states and Poland

Mainly FTL – low barrier The simple reposi7oning 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 Construc7on industry Etc.



Central warehouse – tradi7onal 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 transporta@on companies involved

Trend: Centralisa7on



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 registra7on

•  Day 1:

–  Picking

–  Prepare shipment

–  Pick up by hauler

–  Line-‐based transport to des7na7on terminal

•  Dag 2: –  Distribu7on 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 transporta7on company involved




Example, centralised system •  The same customer in Östersund order products before 15 day 0. The warehouse is in

Brussels. •  Delivery is s7ll carried out within 44 hours (before 11 day 2)

•  Day 0:

–  Customer orders electronically. The order is sent directly to the forklid in the central warehouse.

–  Picking is instantaneous

–  Shipment prepared for the ”Sweden line”

–  Pick up by hauler, transport to transshipment loca7on in Sweden (ca 16 h)

•  Day 1: –  Transshipment at line-‐based terminal –  Line-‐based transport to receiving terminal

•  Day 2: –  Distribu7on to consignor before 11 o’clock

Day 0 Day 1 Day 2

15:00 11:00 44 h




From order to invoice (transporta7on company)

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

Resource alloca7on What vehicle? Owner: Traffic controller

Cargo informa7on Loaded amount Owner: Supplier

Proof of Delivery Time/date/signature Owner: Driver

Pricing Owner: Financial dept.

Enough informa7on to create invoice

All of these steps cost money!

Trend: Electronic transac7ons



Goal: De-‐couple the dependecy between administa7ve cost and order volume

Number of orders per year

Total cost for administra7on of

all orders

An increase in the number of orders lead to increased cost

Handle excep7ons – not transac7ons!

Trend: Electronic transac7ons



Transport

Traffic

Goods Vehicles/ vessels

Ways and terminals

Sjöstedt, L. (2005) A conceptual framework for analysing policy maker's and industry roles and perspec7ves in the context of sustainable goods transporta7on 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

Trend: Ver7cal integra7on



Lokalisa@on Land use

Sourcing och distribu@on

Products

Loca@on Facili@es


Transport buying companies tradi@onally focus on products and their movements



Feel free to tweet about this using the hashtag #drpolecture 10-‐11-‐07 : 45

Transport

Traffic

Goods Vehicles/ vessels

Ways and terminals

Localisa@on Land use

Sourcing and distribu@on

Products

Loca@ons Facili@es





How can the transporta7on industry meet these trends?

So…




It is 7me to connect the various parts and areas!



Connected|Vehicle Seamless communica7on WiFi, 3G/4G, GPRS, Satellite, RFID etc.

First:

Replace current data with electronic alterna7ve

Then: Create new func7onality that uses the new infrastructure

GIS-‐services Vehicle management

Infotainment ”Run7me” cost/revenue 7cker

Subscribe to vehicle func7onality as needed, e.g. extra horse powers



The role of a vehicle in the informa7on system

Data consumer: • Order data • Traffic data • Administra@ve data

Data producer: • Order data • Traffic data • Administra@ve data • Opera@on data

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

To meet future customer requirements, all of this communica@on needs to be electronic



Connected|Business

When data becomes readily available, data

mining becomes possible Visualisa7ons and mash-‐ups to assist decision making

Large-‐scale and frequent route-‐ and load op7misa7ons New channels of

communica7on Wide contact surface to the surrounding world

Direct contact and dialougue with customers and other stakeholders



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 level

True distributed decision making



Connected|Infrastructure

Slot management

Conges7on control

Dynamic road pricing

Disturbance management

Handling of permits

Decision support data





Transport Quality =

vehicle km

tonne km

MAX

Transport Equa7on =


Transport Future: Connected Goods Vehicle Business Infrastructure



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

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

Not very preby

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] @Dr_PO

Image: The Girl and the iPad by niclindh on Flickr.com (CC-BY,NC,SA)

Transportation - Fundamentals and future

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Transcript of Transportation - Fundamentals and future