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CC-BY PER OLOF ARNÄS UNSOLVED PROBLEMS IN FREIGHT TRANSPORT CLIMBING THE THREE MOUNTAINTOPS OF REAL-TIME DATA Per Olof Arnäs Chalmers University of Technology @Dr_PO [email protected] about.me/perolofarnas Slides: slideshare.net/poar En la cima! by Alejandro Juárez on Flickr (CC-BY)
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Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Jan 27, 2015

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Technology

Per Olof Arnäs

The current paradigm in freight transport is based on economies of scale, batch handling and standardization. In order to make the transport system more efficient, the industry may need to enter the real-time data world where informed decisions must be made in seconds on a large scale.
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Page 1: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS

UNSOLVED PROBLEMS IN FREIGHT TRANSPORTCLIMBING THE THREE MOUNTAINTOPS OF REAL-TIME DATA

Per Olof Arnäs Chalmers University of Technology @Dr_PO [email protected] about.me/perolofarnas Slides: slideshare.net/poar

En la cima! by Alejandro Juárez on Flickr (CC-BY)

Page 2: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Northern LEAD Logistics Research Centre

Founded by: Chalmers University of Technology

University of Gothenburg Logistics and Transport Society LTS

Page 3: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

Page 4: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

Page 5: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

Page 6: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Per Olof Arnäs

The Transportindustry

3 things:

Carbon-free transport by Stéfan on Flickr

Page 7: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

…physical

3d boxes by crystaljingsr on Flickr

Page 8: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

…public

Traffic Jam by Giorgio Minguzzi on Flickr

Page 9: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

…analogue

542 miles by Jason on Flickr

Page 10: Unsolved problems in freight transport - climbing the three mountaintops of real-time data
Page 11: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Per Olof Arnäs Stage Coach Wheel by arbyreed on Flickr

Development of transportation technology has been

fairly linear

…for the last 5500 years

Page 12: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

We are in the middle of a gigantic exponential development curve

beginning

Page 13: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

A new global eco system where new types of, knowledge based, industries

compete with traditional ones

Page 14: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

Page 15: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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.

Page 16: Unsolved problems in freight transport - climbing the three mountaintops of real-time data
Page 17: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

RESOURCE UTILISATION LOW

Page 18: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Safety imbalance Variation in resource demand

Chain imbalance Caused by the chain

Technological imbalance E.g. mismatch in equipment

Operational imbalance Goods and resource flow not compatible

Structural imbalance Uneven transport demand

Page 19: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Safety imbalance Variation in resource demand

Chain imbalance Caused by the chain

Technological imbalance E.g. mismatch in equipment

Operational imbalance Goods and resource flow not compatible

Structural imbalance Uneven transport demand

Several of these imbalances can be

reduced by reducing uncertainties

Page 20: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

In S

ea

rch

Of

Lo

st T

ime

by

bo

ge

nfr

eu

nd

on

Flic

kr

But the biggest problem in transportation is time.

There is not enough of it.

Ever.

Page 21: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The transport industry does not like real-time

decisions.

At all.DSC_9073.jpg by James England on Flickr (CC-BY)

Page 22: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The transport industry does not like real-time

decisions.

At all.

Batch-handlingZip codes

Zones

Time-tables

DSC_9073.jpg by James England on Flickr (CC-BY)

Page 23: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Image: Alain Delorme, alaindelorme.com

The current model is focused on economy of

scale and standardization

Page 24: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Image: Alain Delorme, alaindelorme.com

The current model is focused on economy of

scale and standardization

Page 25: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The current paradigm

Page 26: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

So…

What are we doing about

all this?

Page 27: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

Page 28: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

http://www.gartner.com/newsroom/id/2575515Source: Gartner August 2013

Gartners Hype Cycle for Emerging Technologies

Page 29: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

http://www.gartner.com/newsroom/id/2575515

?

Source: Gartner August 2013

Gartners Hype Cycle for Emerging Technologies

Transportation/logistics?

Page 30: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Opportunities

Digitization Increasing goods volumes

New technology

Political

interest

Quad Aces by fitzsean on Flickr

Page 31: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

ICT MaturityApp

"Multi-Touch" by DaveLawler on Flickr (CC-BY)

Page 32: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

smile! by Judy van der Velden (CC-BY,NC,SA)

Speculative shipping

http://www.scdigest.com/ontarget/14-01-21-1.php?cid=7767

Page 33: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

smile! by Judy van der Velden (CC-BY,NC,SA)

Speculative shipping

http://www.scdigest.com/ontarget/14-01-21-1.php?cid=7767

Package item(s) as a package for eventual shipment to a delivery address

Associate unique ID with package

Select destination geographic area for package

Ship package to selected distribution geographic area without completely

specifying delivery address

Orders satisfied by item(s)

received?

Package redirected?Determine package location

Convey delivery address, package ID to delivery location

Assign delivery address to package

Deliver package to delivery address

Convey indication of new destination geographic area and package ID to

current location

Yes

Yes

No

No

Page 34: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

smile! by Judy van der Velden (CC-BY,NC,SA)

Speculative shipping

http://www.scdigest.com/ontarget/14-01-21-1.php?cid=7767

Package item(s) as a package for eventual shipment to a delivery address

Associate unique ID with package

Select destination geographic area for package

Ship package to selected distribution geographic area without completely

specifying delivery address

Orders satisfied by item(s)

received?

Package redirected?Determine package location

Convey delivery address, package ID to delivery location

Assign delivery address to package

Deliver package to delivery address

Convey indication of new destination geographic area and package ID to

current location

Yes

Yes

No

No

Page 35: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS

Strategic Tactical Operational Predictive

Time horizons

We are approaching this boundary

…and we are starting to move past it!

Real-time!

Page 36: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Digitization frontsGoods Vehicle

Business process

Infra-structure

Page 37: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

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

Page 38: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS

Business processes

Infra- structure

Paper based Phone

Papers

Road signsAnalogue

tools

RDS

Monitor fuel

cosnumption

Digitization version 0 0.5 1.0 1.5 2.0

E-m

ail

Fax

TMS

-

systems

Excel

Route planning

GPS for n

avigatio

n

Electro

nically

genera

ted

freig

ht docum

ents

Barcodes

RFI

D-t

ags

Simple order handling

Advanced order handling

Open interface

Web based U

I

Platform

based

systems

Hardw

are-

oriented

Data collection

systems

(prop

rietary)

Com

munication

with vehicles

E-invoice

Web based

bookingRoute

optimisation

Th

e so

cia

l web

Open connectivity

Integrated

prognosis

Data collection

systems (open)

Tolling

systems

Webservices

with traffic data

Dyn

amic

ro

utin

g sy

stem

s

Pe

rform

an

ce

Ba

sed

ac

ce

ss

Pe

rfo

rma

nc

e

Ba

sed

ac

ce

ss

Mas

hups

Mul

tiple

dat

a so

urce

s

Pro

be

dat

a

Individual

routin

g

inform

ation

Platooning

PlatooningExceptions handling

Sm

art g

ood

s

Manual

Computers

Software

Functions

Dis

trib

uted

deci

sion

m

akin

g

Goods as bi-

directio

nal

hyperlink

Paper based

CC-BY Per Olof Arnäs, Chalmers

Goods Vehicle

Page 39: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Goods

Vehicles

Business processes

Infrastructure

Stra-tegic

Tac-tical

Opera-tional

Pre-dictiveWhat happens

when access to real-time data increases?

not quite clear on the concept by woodleywonderworks on Flickr (CC-BY)

Page 40: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The Action of New York City by Trey Ratcliff on Flickr (CC-BY,NC,SA)

Need for speed

Page 41: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The Action of New York City by Trey Ratcliff on Flickr (CC-BY,NC,SA)

Need for speed

Data collection

Data processing Data

exploitation

Page 42: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

3 mountaintops to climb…

Page 43: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

Fixed Historical

3 data types

Mountaintop #1

Collection of data in real-time

Snapshot

Page 44: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

5 data domains

Vehicle CargoDriver CompanyInfrastructure/

facility

at leas

t…

Mountaintop #1

Collection of data in real-time

Page 45: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Length Weight WidthHeight

Capacity + other PBS-criteria

EmissionsFuel consumption

Route

Position Speed

Direction

Weight Origin

Destination Accepted ETA

Temperature + other state variables

Temperature + other state variables

Education/training

Speed (ISA) Rest/break schedule

Traffic behaviour Belt usage

Alco lock history

Schedule status (time to next break etc.)

Contracts/ agreements Previous interactions Backoffice support

Fixed Historical Snapshot

Vehicle

Cargo

Driver

Company

Infrastructure/facility

Map + fixed data layers Traffic history

Current traffic Queue

Availability

DATA MATRIX

Page 46: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

Mountaintop #2

Processing of data in real-time

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

Page 47: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

Mountaintop #2

Processing of data in real-time

Page 48: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

Mountaintop #3

Exploiting data in real-time

Connected. 362/365 by AndYaDontStop on Flickr (CC-BY)

Lisa for I/O Keynote by Max Braun on Flickr (CC-BY)

Fulham-Manchester United 24-02-2007 by

vuhlser on Flickr (CC-BY)

Page 49: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS En la cima! by Alejandro Juárez on Flickr (CC-BY)

Mountaintop #3

Exploiting data in real-time

Boeing-KC-97 Stratotanker by x-ray delta one on Flickr (CC-BY)

Page 50: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CASES (MANY)

Page 51: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CASES (MANY MORE)

Page 52: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Challenges

The Challenger by Martín Vinacur on Flickr (CC-BY)

Page 53: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Company

Difficulties increase with scale

The Challenger by Martín Vinacur on Flickr (CC-BY)

Page 54: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Company

Supply chain, simple

The Challenger by Martín Vinacur on Flickr (CC-BY)

Page 55: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Company

Supply chain, simple

Supply chain, complex

The Challenger by Martín Vinacur on Flickr (CC-BY)

Page 56: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

Company

Supply chain, simple

Supply chain, complex

Eco system

The Challenger by Martín Vinacur on Flickr (CC-BY)

Page 57: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The Challenger by Martín Vinacur on Flickr (CC-BY)

Not all ideas age with grace

Page 58: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The Challenger by Martín Vinacur on Flickr (CC-BY)

Someone must do the work

Page 59: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

The Challenger by Martín Vinacur on Flickr (CC-BY)

Not everyone will want to adopt new things…

Page 60: Unsolved problems in freight transport - climbing the three mountaintops of real-time data
Page 61: Unsolved problems in freight transport - climbing the three mountaintops of real-time data

CC-BY PER OLOF ARNÄS

UNSOLVED PROBLEMS IN FREIGHT TRANSPORTCLIMBING THE THREE MOUNTAINTOPS OF REAL-TIME DATA

Per Olof Arnäs Chalmers University of Technology @Dr_PO [email protected] about.me/perolofarnas Slides: slideshare.net/poar

En la cima! by Alejandro Juárez on Flickr (CC-BY)