Innovation and technology in multi-modal supply chains - PDF Document

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  1. Innovation and technology in multi-modal supply chains Lóri Tavasszy 16-4-2018 Delft University of Technology Challenge the future

  2. Contents • Innovations • Mass-individualized logistics services • Network integration and synchronisation • Transport technology • Digitalisation in logistics planning and operations • Implications for multimodal supply chains • Multimodality provides opportunities for network integration • Also, significant effect on overall network resilience • However, preconditions of ICT systems and transport technology to be met • Balancing efficiency and resilience – some thoughts 2

  3. Context: global growth & diversity of trade The Economist after UN, 2015 3

  4. Mass-individualisation & global chains Long lead time (days-weeks) market region Europe BTS BTO world EDC Customized product C FOP Standard product 3D RFD BTS BTS: built to stock BTO: built to order RFD: rapid fulfillment depot FOP: flexible order production EDC: European distribution center 3D: home or fab shop production BTS Adapted from Vermunt, 2000 Short lead time (< 1day) 4

  5. Mass-individualization is enabled by collaboration Tavasszy et al., 2012 5

  6. Hybrid supply networks Future Air Cargo Entry Points to Warehouse Network - FY01, 1 Entry Points Current Air Cargo Entry Points to Warehouse Network - FY98, 13 Entry Points Hubs Hubs SC Warehouses OLD Sony Europe - Proposed Shipping Routes FY01 - 4 Ports Hubs SC Warehouses Helsinki NEW Copenhagen Rotterdam Southampton Antwerp Le Havre Koper Genoa Barcelona Source: Groothedde, 2005 6

  7. Hybrid supply networks (2) China EU hub EU dest 7 Bron: TNO / SeaconAZ project

  8. Collaboration is enabled by decreasing transaction costs (π) €/unit Total Transactions Logistics # of partners Effect of ICT on logistics costs • Number of links = n2-n • Optimal number of partners depends on balance of economies of scale and transaction costs • ICT reduces transaction costs 8 8

  9. Efficiency increase potential Are we at peak efficiency in road transport? • When measured in weight: no (43%) • In m2 or m3: very close… • Consolidation opportunities across modes of transport will be important Source: Davydenko et al., 2015 9

  10. Transport technology innovations 10

  11. Transport technology: directions • Autonomy • Trucks and platoons • Rail AGV • Waterborne • Drones • Warehousing • Integration • Flexible chassis systems • Terminal technology • Foldable containers • Modularization • Propulsion • Electrification • Space travel • Maglev • Sail ships Strong reduction of transport costs promised Many legal barriers Interfacing with non-automated systems? How to manage mixed regimes? Can we exploit digitalization for resilience? Reducing asset intensity of systems Critical for functioning of intermodal systems Transshipment still a major cost burden Low feasibility under regular conditions Disruption risk not part of business models Major changes imminent but uncertain Energy transition is leading change Transition in transport system is vulnerable Niche vs. mass solutions 11

  12. Integration: from multimodal to intermodal 12

  13. Intermodal networks & robustness Network A Network B Robustness is a measure of a system's ability to keep a certain functionality despite changes in the behaviour of its components or its environment . Here: measured in number of challenges before disconnected (Van Dam, 2017) 13

  14. Result: hubs are key for network robustness Combining road and waterways networks via terminals almost doubles network robustness Ro = road; Ra = Rail; Wa = Waterways; T = Terminals 14

  15. How to advance TEN-T from corridors to a real network? hubs corridor 15

  16. ALICE roadmap for hubs, corridors & synchromodality 16

  17. Benefits of synchromodality price price T0-T9: Routes along Terminals 1-9 Road only truck T7 T1 T8 T2 Rail only rail T3 T9 Waterways only T4 waterways T5 T6 time time Synchromodality allows differentiation of services to customer classes, by using degrees of freedom in the (combined) deployment of transport modes. This carries opportunities for cost reduction and revenue increase. 17

  18. Physical vs information flows (after: MSc thesis Anton Delawari, TUD) 18

  19. Promise of digitalization 10 mini-revolutions… 1. Computing Power 2. Size of Computers 3. Automation 4. Ubiquity 5. Artificial Intelligence 6. Collaborative Computing 7. Digitalization of Admin 8. Data Availability 9. Data Governance 10. Distributed systems …how do these find application in multimodal transport? 19

  20. Transport modes-in-the-loop Analytics As A Service Control Towers Situational Awareness (AR/VR) • • • Brains: Apps and Humans Brains: Apps and Humans Data space Control Dynamic data Dynamic data Sensing Autonomous Transport Modes Autonomous Transport Modes Cloud/fog computing Exchange platforms Blockchain Smart Contracts Data Brokers • • • • • 20

  21. Forwarders’ dis-intermediation headache 21

  22. Social value of innovation new business value (bn USD, by 2025) logistics cost reduction emission and congestion Data analytics 600 -- -- Control Towers 210 -- -- Trade Facilitation 170 600 -55 Crowdsourcing 310 800 180 Autonomous Transport -- 50 -- Shared Warehousing -- 500 70 (WEF, 2016) Total 1290 1950 195 • Focus of impact: collaboration & control • External cost reduction is limited • Distributive effects? 22

  23. Innovation impacts on resilience • Critical links: higher utilization results in less slack in the system (higher failure probability) and higher scale (stronger failure impact). • There are many links that could mitigate this risk, but balance is unclear customization shippers - + + - scale collaboration + - + resilience utilization slack carriers + - asset intensity - control + redundancy, responsiveness + + technology 23

  24. Conclusions • Main service innovation: mass-individualised logistics services • Supporting innovations involve • Network integration and synchronisation • Transport technologies • ICT applications • Network integration: • Potential mostly across modes • Multimodal  intermodal  synchromodal • Transport technologies • Integration challenge to achieve efficiency impact • Automation & propulsion may affect resilience • ICT • Reduces interaction costs and allows operational control • Accelerator for above innovations for eventual balance of efficiency vs. resilience improvement • Overall: many claims for impacts of innovation, but no evidence 24