OTM-ppt

Intelligent Cargo for Efficient, Safe and Environment-Friendly Logistics

Fulvio Sansone

Business Development Director

TRA2008 Ljubljana April 21-24, 2008

TRA2008 – Ljubljana April 21-24, 2008

Agenda

• The Vision

• The Need for Intelligent Cargo

• EURIDICE Objectives

• Concepts and Technologies

• Progress on State of the Art

• Conclusions


“In five years time, most of the goods flowing through European freight corridors will be ‘intelligent’, i.e.: self-aware, context-aware and connected through a global telecommunication network to support a wide range of information services for logistic operators, industrial users and public authorities.”

• Self-awareness means the ability of cargo to interact with the surrounding environment to actively notify its presence, identity and requirements.

• Context-awareness means intelligent ad hoc combination of information from all the involved stakeholders (shippers, logistic services providers, infrastructures and authorities), based on the current cargo position and status.

• Connectivity of moving goods means their constant availability as service consumers or providers by exploiting at need the mobile and fixed network infrastructures available along the route.

The Vision


The Need for Intelligent Cargo

1. Logistic processes show limited sharing of information on• Goods movements, status and authorisations• 62% of carriers handle call-off management manually• 90% of of communications on rush orders handled by

fax/phone

2. Limited ICT support to predict and handle unexpected events

• Information flow currently pushed by back-office• Limited relevant information at check, consolidation points

=> Inability to fully synchronise logistic planning and execution processes


• EURIDICE is an Integrated Project funded by EU’s Seventh Framework Programme ICT for Transport Area

• The basic concept of EURIDICE is to build an information services platform centered on the individual cargo item and on its interaction with the surrounding environment and the user

EURIDICE ProjectEURopean Inter-Disciplinary research on Intelligent Cargo for Efficient safe and environment-friendly

logistics (FP7-ICT-2007-216271)


• Supporting the interaction of individual cargo items with the environment and users on the field• Fixed and mobile Web Service infrastructure• On-the-fly service orchestration• Distributed and centralised data analysis and trend detection• Interoperable platform to expose and use intelligent cargo

information

• Improving logistic performances • Developing collaborative business models for an intelligent

cargo infrastructure • Realizing more secure and environment friendly transports

EURIDICE Objectives


EURIDICE Architecture

MobileDevice

CargoItem

Vehicle

Fie

ld U

sers

Ba

ck-o

ffice

Use

rs

Stakeholders Systems

Industry(ERP, SCM,SCE, WMS)

LogistcOperators

(Transportation Planning,Monitoring, Track & Trace)

Authorities& Infrastructures

(Control, AuthorizationTerminal Management)

Mo

bile

Ap

plic

atio

ns

Cargo Connectivity

Cargo Intelligence

Services Platform

RFID Rx / Tx GNSS Rx GPRS Rx/Tx WLAN Rx/Tx

short range (ZigBee, WiBree)

Software-definedRadio Technologies

Anomaly detection

Knowledge Discovery

Authentication& Authorisation

Security

OrchestrationInfrastructure

servicesFixed servicesMobile services

Ca

rgo

Ag

en

tsData processing

Distributed data analysis

Event prediction Trend detection


• Address simultaneously the logistics, business and public policy aspects of freight transportation, by dynamically combining services at increasing levels of interaction:

• Immediate proximity servicesRFID-based and barcode-based identification services, mobile user services, vehicle services, site services

• supply chain services shipper services, carrier and operators services, producer services

• freight corridor services infrastructure services, public authorities services

• Support, “on the fly”, combination of these different categories of services

The Platform


How it works

RFID

Car

rier

Ser

vice

s

Site services

Vehicl

e

Servic

es

Mobile U

ser

services

Positioning

Services

GPS,Galileo

Car

rier

Ser

vice

s

Shipper servi

ces Infrastructure

Services

Producer services

Public Authorities services

Example: Check/Inspectionat land terminal

RFID

Car

rier

Ser

vice

s

Site services

Vehicl

e

Servic

es

Mobile U

ser

services

Positioning

Services

GPS,Galileo

Car

rier

Ser

vice

s

Shipper servi

ces Infrastructure

Services

Producer services

Public Authorities services

Certify originand transit rights

Identify shipment

Qualify content

Verify customs authorisationsCargo-centric Information

Services InfrastructureUser and context

specific interaction

ServicesCombination

on the fly


EURIDICE Main Concepts

Cargo Connectivity• Identification through RFID or barcode• Positioning through GNSS (GPS or Galileo) devices, as

well as GPRS-based localization. • Mobile devices embedded into a pan-European network

infrastructure Cargo Service Infrastructure• Mobile and fixed services support, allowing hybrid setup of

mobile (field user) and fixed (back-office) use cases,• identification, context information and the related

information services.• Orchestration, supporting the combination of services for

specific cargo management scenarios.


Cargo Intelligence• Semantic web and domain ontologies, for automated

knowledge discovery and identification of services• Advanced context technologies, for combination of item,

vehicle and user IDs with automatically-detected conditions• Distributed intelligent agents, for optimization, anomaly and

threats detection (alerting) and distributed real-time decisions support.

• Analysis of collected cargo data based on deep and shallow reasoning methods, query and reporting, online analytical processing (OLAP), statistical analysis, data, text and web mining, time series analysis

EURIDICE Main Concepts


EURIDICE Partnership

The Euridice Consortium• The Consortium, coordinated by Insiel (Italy),

brings together 22 partners from 9 countries among them:• mobile and wireless technology • RFID• application software • ICT • business consultancy • logistics


Project Overview

Dissemina-tion and

Outreach(WP33)

Framework Architecture

(WP11)

P1 Intelligent Cargo Integration Framework

Domain Knowledge

(WP12)

Services Authoring, Orchestra-tion (WP14)

P3 Impact Creation

P0 Program Management, Coordination, Performance Monitoring

P2 Pilot Applications

Industry/Distribution applications (WP23)

Business Modelling

(WP31)

Training(WP32)

Exploitation(WP34)

Cargo Intelligence

(WP13)

Obj 1.1 Network infrastructure for intelligent cargo

Obj 1.2 Fixed and mobile web services infrastructure

Obj 1.3 "On the fly" combination of services for cargo/context interaction

Bu

sin

es

s a

nd

So

ciet

al

Ob

jec

tiv

es

Pilo

ts A

sses

sme

nt (

WP

22)

Obj 2.1 More flexible and efficient supply chains

Obj 2.2 More efficient, transparent and cost-effective intermodal transport

Obj 3.1 Public-private partnership models for intelligent cargo infrastructure

Intermodal transport (WP24)

Logistic Operators (WP25)

Authorities and Infrastructures (WP26)Obj 3.2 More secure and environment friendly transport chains

Pla

tfo

rm I

nteg

ratio

n (

WP

21)

Obj 1.5 Interoperability platform for intelligent cargo users

Obj 1.4 Distributed and centralized analysis, prediction and detection

S/T

Ob

ject

ive

s


Progress on State of the Art

• Service Oriented Architecture for logistics based on a distributed computing environment• Mobile terminals invoke and host Web Services• Dynamic orchestration of services• Issues with small-footprint implementation, limited

scalability, intermittent connection, QoS

• Cargo Intelligence• Local decision making by use of mobile Agents• Distributed data mining• Anomaly detection based on context and problem

knowledge


Conclusions: How the Future will Look Like

MobileDevice

CargoItem

Vehicle

Fie

ld U

sers

Ba

ck-o

ffic

e U

sers

Stakeholders Systems

Industry(ERP, SCM,SCE, WMS)

LogistcOperators

(Transportation Planning,Monitoring, Track & Trace)

Authorities& Infrastructures

(Control, AuthorizationTerminal Management)

Mob

ile A

pplic

atio

ns

Cargo Connectivity

Cargo Intelligence

Services Platform

RFID Rx / Tx GNSS Rx GPRS Rx/Tx WLAN Rx/Tx

short range (ZigBee, WiBree)

Software-definedRadio Technologies

Anomaly detection

Knowledge Discovery

Authentication& Authorisation

Security

OrchestrationInfrastructure

servicesFixed servicesMobile services

Car

goA

gent

s

Data processing Distributed data

analysis

Event prediction Trend detection

State-of-the-Art Transportation MgmtContinuous Planning

Event Management

CarrierAnalysis

On-TimePerformance

CustomerSatisfaction

Consolidate Loads / Moves


SelectModes & Carriers

SelectModes & Carriers Book /

TenderBook /Tender

Track &Trace

Track &Trace

Audit / Settle

Audit / Settle


… and what will bring us

• More flexible and efficient supply chains through the integration of intelligent cargo concepts into leading logistic operators and industrial organizations.

• Increased efficiency, transparency and cost-effectiveness of inter-modal transport.

• More secure and environmental friendly transport chains through the adoption of intelligent cargo to support modal shift, co-modality and door-to-door inter-modal services


Back up Slides


Introduction: Oracle At-a-Glance

• $18 Billion Revenue, FY07

• 275,000 total customers

• 220,000 database customers

• 37,500 applications customers

• 19,500 partners

• 74,000 employees

• >16,000 employees in Europe

Largest enterprise software vendor, founded in 1977, HQ in Redwood Shores, CA with operations in 145 countries


Oracle Solutions: Overview

• DatabaseDatabase• Real Application ClustersReal Application Clusters• PartitioningPartitioning• OLAP and data miningOLAP and data mining• SecuritySecurity• SpatialSpatial• Oracle Lite Oracle Lite • TimesTenTimesTen

DatabaseDatabase

• Application ServerApplication Server• SOA/IntegrationSOA/Integration• Business IntelligenceBusiness Intelligence• Content ManagementContent Management• Identity ManagementIdentity Management• Data HubsData Hubs• Collaboration Services Collaboration Services • Java Development toolsJava Development tools• Enterprise Performance Enterprise Performance

ManagementManagement

MiddlewareMiddleware

• E-Business SuiteE-Business Suite• PeopleSoft EnterprisePeopleSoft Enterprise• SiebelSiebel• JD EdwardsJD Edwards• Oracle RetailOracle Retail• i-Flexi-Flex• Communications Billing Communications Billing • UtilitiesUtilities• ProfitLogicProfitLogic• Transportation MgmTransportation Mgm

ApplicationsApplications


The project will integrate and further develop technological components and approaches in several ways:

• adapting and integrating state-of-the-art identification, communication and networking technology (i.e. RFID tags readers/writers; barcode readers; GPRS localization systems; mobile devicers; software defined radio technologies) into an Intelligent Cargo Integration Framework (ICIF)

• realizing the Cargo Intelligence through a set of intelligent services, application programs and technologies (i.e. semantic web and domain ontologies; advanced context technologies; distributed intelligent agents; time series analysis for forecasting and trend detection)

• using interoperability standards and infrastructures to connect the data concerning a specified cargo item with back-office users and consumers

EURIDICE Technology


“76% of logistics managers at major companies couldn’t trace the products en route or get updates.”

Tracking • Real-time shipmentstatus checking

• Exception managementand notifications

Billing &Settlement • Freight payment

and audit

• Cost allocation

Book / Tender • Full visibility to tender status

• Direct link from system to carrier

• Load consolidation and route planning

• Mode & service provider selection

Planning &Optimization

Transportation Management At-a-Glance


Increased Demand for Comprehensive Transportation Mgmt Solutions

Business Pressures

……ImpactImpact

• Transportation costs (6% of GDP) growing at an increasing rate

• Expansion, consolidation, and globalization of outsourcing suppliers

Shipper Pressures…Shipper Pressures…• Capacity shortages of

drivers, railcars, ocean slots, and ports

• Increased regulation on hours of service rulesand security procedures

• Escalating fuel costs

• Shrinking margins dueto commoditization of basic services

• Escalating end-customer expectations

• Globalization driving complex global supply chains

• Lean initiatives and increased volatility increasing supply risks

• Shrinking margins dueto commoditization of basic services

Carrier Pressures…Carrier Pressures…


Shipper

TradingPartners

TransportationProviders

Carriers 3PLs Customs Brokers

Contract MfgrsSuppliers

Forwarders

• Lack of unified logistics process control and visibility

• Long planning cycles with decisions based on outdated data

• Paper and time intensive processes

• Poor use of automation for exception recognition and resolution

Customers

Manual Processes

Fragmented Organizations

Planning Execution

Operational Challenges


An Example of Existing State-of-the-Art Solution:

Transportation Management


Settlement Execution

Plan & OptimiseOrder Mgt

Global Data Model

Oracle Transportation Management

VisibilityEvent Mgt


Service Providers Trading PartnersInternal Systems

Oracle Transportation Mgmt

OrderMgmt

Warehouse & Inv Mgmt

Financials

• Tender Offer• Tender

Response• Ship Status• Invoice

• Planned Shipment• Order Status• ASN• Order / Release

Information

100% Web-Based Highly Configurable Global Business Support

• Orders• Product

Location• Item Master

• Planned Shipment

• Confirmed Shipment

• Payment Vouchers

• Invoice Check and Match

Continuous Planning

Event Management

CarrierAnalysis

On-TimePerformance

CustomerSatisfaction

Oracle Transportation Management





Book /Tende

r

Book /Tende

r

Track &Trace

Track &Trace

Audit / Settle

Audit / Settle


High PerformanceTransportationOptimization

Global TransportationCollaborationand Execution

Logistics Automationwith ExceptionManagement

Complete LogisticsNetwork Visibility*

Global, Local, andCentral Logistics

Management

*Currently re-implementing analytic capabilities using Oracle technology

Oracle Transportation ManagementProvides…








Management


- Container and trailer optimization & configuration- Shipment assignment, stringing & continuous moves- Fleet sizing & assignment (execution, strategic)

- International shipping- Facility resource balancing- Bid collaboration and optimization

Support a Wide Range of Optimization Needs

• Route

• Mode• Route

• ModeOptimizedDecisionsOptimizedDecisions

• Timing

• Equipment

• Timing

• Equipment

• Multi-Leg Multi-Mode Consolidation

• Common Leg Consolidation

• Multi Stop Consolidation

• Multi-Tier Networks

• LTL Consolidation

• Continuous Moves

Algorithms

• Consolidation

• Service Provider

• Consolidation

• Service Provider

Engines& Rules

• Service Time Calculation

• 3-Dimensional Container Optimization

• Itineraries & Profiles

• Carrier Capacity

• Throughput

• Rating

Shipment Planning and OptimizationMaximize Fulfillment Service, Minimize Transportation Costs

All capabilities and dates are for planning purposes only and may not be used in any contract


Shipment Planning and Optimization

• Dynamic Routing &Consolidationthroughout Network

• Intermediate Facilitiesfor Consolidation

- Consolidation poolsand cross-docks

• Dynamic Optimization- When to use pool vs. by-

pass- Consolidation from pool

• One order can involve multiple shipments, parties, and modes

• Optimization can be performed for unlimitedlegs and modes

SupplierSupplier

ConsolidPool

ConsolidPool DC 1DC 1

Mul

tiple

Ord

ers

SupplierSupplier

SupplierSupplier

DC 2DC 2

Consolidated Multi-Stop Shipment

DCDCPortPort PortPort

(Guangzhou) (Chicago)(Hong Kong) (Los Angeles)

SupplierSupplier

Example: Multi-Tier Distribution

Example: Multi-Leg, Multi-ModeChina – US Order








Management



Transportation ExecutionTightly Link Your Processes with Service Providers

• Intermodal Support: Ocean, Air, LTL, TL, Rail• Electronic (EDI), Internet, and wireless communication• Share forecast, tender shipments, shipment status, delivery confirmation• Automated dock scheduling and partner collaboration

YourCompany

ServiceProvider

Internet: Picked-up

Wireless: En route

Internet: Delivered

EDI 204: Load Tender

Review &Approve Shipment

Review &Approve Shipment

TenderTender Accept TenderAccept Tender Pick-upPick-up TransportTransport DeliverDeliver

Seamless Trading Partner CollaborationExtend Capabilities to Service Suppliers and Customers

PUS = Pick-Up Schedule= Flow of information= Flow of goods

Transportation Management

Supplier

CustomerReceiving

LSP Cross-DockLSP Regional DC

Pickconfirmshortage

Shipconfirmshortage

Ship confirmation Route & PUS data

• Send pick confirmation• View PUS• Confirm ship quantity• Generate bar code labels

• Review shipment status• Cross-dock manifesting• Status updates

CustomerMaterialsControl

• Request pick-up• Raise supplementary PUS• View PUS status

• Allocate equipment• Review shipment status• Control execution• Shipment management• Linehaul manifesting• Status updates

• Maintain fixed route data• Plan daily fixed routes

• Enter supplementary PUS• Append supplementary to planLSP

Planner

Alerts

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract




Logistics Automation

with ExceptionManagement




Management



Standardized, Packaged Integrationsvia Web Services Orchestrated by BPEL XSL

BPEL

XML /

XSL

XML /

XSL

BPEL

WebServices

Orders

Shipments

Events

WebServices

Invoices

Allocations

Accruals

Foundation: Global Logistics IntegrationLeverage Fusion Middleware

EBSOM / WMS /

Inv Mgmt

EBS Purchasing

OracleRetail

OtherERP / SCM

EBS Financials

OtherFinancials

OracleTMS


OEM Plant Dealer 1

Order: 1 VIN

Dealer 1

Dealer 2

(Yokohama) (Los Angeles)OEMPlant

PortPort PortPort

Alert! … Delayed in customs

Automated Action …Split shipment of vehicles

Alert! … Dealer msg “Partial Ship”

Automated Action … 1) Order and routing change2) Expedite replenishment order

• Receive Proactive Notifications and Rapidly Adjust to Unforeseen Delays

• Utilize Event Management to Trigger Automated “Corrective Action” Flows

A Simple Order…

…Really Looks Like This

Example: Vehicle Distribution Mgmt








Management



PlanningLevel

ExecutionLevel

Dashboard Level

Across…

…the entire supply chain: from raw materials to point-of-sale

…all roles: suppliers, planners, service providers, customers, management

…all phases: before (planning), during (execution), after (improvement)

Manufacturer

Customer

Consolidator

Shipper

Complete Logistics Network Visibility


Multi-Tenant Configuration and Security

• Access role-based info, including specific views for trading partners

• Prevent other users from accessing non-privileged info or takingnon-authorized actions via role-based security

• Provides the ability to expand without having to buy another system

Business 2

Business

n

Business 1

Top Level UsersFull Visibility

DomainUsers

PartitionedVisibility

ParentCompany

ConfigureSoftware

for SpecificLook & Feel

…

Provide SimpleAccess toContextualInformation


Global Logistics Network

ReceivingManagerNotification: Shipment has left Port of

Bombay

Vendor 1

Vendor 2

Vendor n

Port ofBombay

Port ofSingapore

Port ofAntwerp

Warehouse 1

Warehouse 2

Warehouse n

Carrier Carrier

What customer POs need to be consolidated into these outbound shipments?

ForwarderLogisticsPlanner

What are the BOL #s and container #s for these POs?

Alert:

Shipment’s ETA is 12 hours behind schedule

Show me all styles / colors / sizes and the corresponding quantities in a container

OTM-ppt

Documents

operators services

vehicle services

information services

mobile user services

logistic services providers

intelligent cargo information

e se r

s e e ur