Physical Internet Manifesto

Physical Internet Manifesto
Transforming the way physical objects are moved, stored, realized, supplied and used, aiming towards greater efficiency and sustainability
Professor Benoit Montreuil
Canada Research Chair in Enterprise Engineering CIRRELT Interuniversity Research Center on Enterprise Networks, Logistics and Transportation Laval University, Qubec, Canada
Version 1.11.1 : 2012-11-28
Physical Internet Manifesto, version 1.11.1 Professor Benoit Montreuil, CIRRELT, Universit Laval
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America
The Physical Internet Manifesto has greatly benefited from the contributions of esteemed colleagues and doctoral students
Acknowledgements
CIRRELT Research Center: Teodor Crainic - UQAM Michel Gendreau - Universit de Montral Driss Hakimi, Mustapha Louns, Jacques Renaud, Helia Sohrabi - Universit Laval CICMHE, College-Industry Council for Material Handling Education: Russ Meller CELDi, University of Arkansas Kevin Gue & Jeff Smith Auburn University Kimberley Ellis CELDi, Virginia Tech Leon McGinnis Georgia Tech Mike Ogle MHIA
Europe
ric Ballot, Frdric Fontane, Shenle Pan, Rochdi Sarraj Mines ParisTech Rmy Glardon EPFL Rene De Koster Erasmus University Olivier Labarthe IUT Bordeaux Montesquieu Detlef Spee Fraunhofer Institute for Material Flow and Logistic
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Manifesto Outline
Global Logistics Sustainability Grand Challenge Envisioning the Physical Internet Enabling a Logistics Web Toward Realizing the Vision
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Sample of companies contributing to the Physical Internet Initiative
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At face value, logistics seems to be doing great!
Logistics is the backbone sustaining our lifestyle
Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas
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Logistics is the backbone sustaining eBusiness
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Container Logistics is the backbone sustaining the globalization of world trade

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Yet we have to face a harsh fact
Logistics inefficiency and unsustainability claim
The way physical objects are moved, stored, realized, supplied and used throughout the world is economically, environmentally and socially inefficient and unsustainable
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Why do we need to change ?
Logistics inefficiency and unsustainability

ECONOMIC
Logistics: 5-15% burden on GDP of most countries worldwide logistics costs grow faster than world trade One of the heaviest greenhouse gas generators, energy consumers, polluters and materials wasters Growing negative contribution while nations goals aims for heavy reductions
ENVIRONMENT
SOCIAL
Lack of fast, reliable and affordable accessibility and mobility of physical objects for the vast majority of the worlds population Too often precarious logistic work conditions
European Commission: A Roadmap for moving to a competitive low carbon economy in 2050, Office of the European Union, Brussels, 16p. (2011) Serveau, L.T. : Inventaire des missions de polluants dans latmosphre en France. In: SECTEN, Citepa, Paris (2011) European Commission: EU energy and transport in figures. Statistical Pocketbook, (2009)
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Inefficiency and unsustainability symptoms

Leading Us Toward Hitting the Wall Real Hard
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. We are shipping air and packaging Empty travel is the norm rather than the exception Truckers have become the modern cowboys Products mostly sit idle, stored where unneeded, yet so often unavailable fast where needed Production and storage facilities are poorly used So many products are never sold, never used Products do not reach those who need them the most Products unnecessarily move, crisscrossing the world Fast & reliable multimodal transport is a dream Getting products in and out of cities is a nightmare Logistics networks & supply chains are neither secure nor robust Smart automation & technology are hard to justify Innovation is strangled
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
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Logistics inefficiency & unsustainability symptoms

1. We are shipping air and packaging
Trucks and containers are often half empty at departure, with a large chunk of the non-emptiness being filled by packaging: 56,8% full when not empty; 42,6% average utilization Vehicles & containers often return empty, or travel extra routes to find return shipments (25% of travel), and loaded vehicles get emptier and emptier as their route unfolds from delivery point to delivery point So many are always on the road, so often away from home for long durations (very high turnover rate); Precarious family & social life, and personal health; in general, logistic operators and material handling personnel have similar precarious positions
2. Empty travel is the norm rather than the exception 3. Truckers have become the modern cowboys
4. Products mostly sit idle, stored where unneeded yet so often unavailable fast where needed
5. Poorly / badly used production and storage facilities
Manufacturers, distributors, retailers and users are all storing products often in vast quantities through their networks of warehouses and distribution centers, yet service levels and response times to local users are constraining and unreliable Most businesses invest in storage and/or production facilities that are lowly used most of the times, or yet badly used, dealing with products which would better be dealt elsewhere, forcing unnecessary travel
Physical Internet Manifesto, version 1.11.1 11 Professor Benoit Montreuil, CIRRELT, Universit Laval
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6. So many products are never sold, never used
A significant portion of consumer products that are made never reach the right market on time, ending up unsold and unused while there would have been required elsewhere; in the fresh food industry, products are wasted at an alarming rate: 12% in transit, 25% at retail
Unsold cars in the UK
7. Products do not reach those who need them the most

This is specially true in less developed countries and disaster-crisis zones
8. Products unnecessarily move, crisscrossing the world

Products commonly travel thousands of miles-kilometers which could have been avoided by making or assembling it much nearer to point of use
9. Fast & reliable multimodal transport is still a dream

Even though there are great examples, in general synchronization is so poor,
interfaces so badly designed, that multimodal routes are most often time-andcost inefficient and risky
10. Getting products in, through and out of cities is a nightmare

Most cities are not designed and equipped for easing freight transportation,
handling & storage, making the feeding of businesses and citizens in cities a nightmare
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robust
11. Logistics networks & supply chains are neither secure nor
There is extreme concentration of operations in a limited number of centralized production and distribution facilities, with travel along a narrow set of hightraffic route This makes the logistic networks and supply chains of so many businesses, unsecure in face of robbery and terrorism acts, and not robust in face of natural disasters and demand crises
12. Smart automation & technology are hard to justify

Vehicles, handling systems and operational facilities have to deal with so many types of materials, shapes and unit loads, with each player independently and locally deciding on his piece of the pie Hard to justify smart connective (e.g. RFID) technologies, systemic handling and transport automation, as well as smart collaborative piloting software
13. Innovation is strangled

Innovation is bottlenecked by lack of generic standards & protocols, transparency, modularity and systemic open infrastructure. This makes breakthrough innovation so tough, justifying a focus on marginal epsilon innovation
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Mapping inefficiency & unsustainability symptoms

to economical, environmental and societal facets
Inefficiency and unsustainability symptoms
1 We are shipping air and packaging 2 Empty travel is the norm rather than the exception 3 Truckers have become the modern cowboys 4 Products mostly sit idle, stored where unneeded, yet so often unavailable fast where needed 5 Production and storage facilities are poorly used 6 So many products are never sold, never used 7 Products do not reach those who need them the most 8 Products unnecessarily move, crisscrossing the world 9 Fast & reliable multimodal transport is a dream 10 Getting products in and out of cities is a nightmare 11 Logistics networks & supply chains are neither secure nor robust 12 Smart automation & technology are hard to justify 13 Innovation is strangled
Environmental Economical Societal
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The Global Logistics Grand Challenge Challenge The Global Logistics Sustainability Sustainability Grand
Design a system to move, store, realize, supply and use physical objects throughout the world in a manner that is economically, environmentally and socially efficient and sustainable
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, 3(2-3), 71-87, 2011.
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Eliciting the Overall Goal Toward Global Logistics Efficiency and Sustainability
Environmental goal
Sustainably reduce by an order of magnitude the logistics-induced global greenhouse gas emission, energy consumption, pollution & materials waste
Economic goal
Sustainably reduce by an order of magnitude the global economic burden of logistics while unlocking huge gains in business productivity
Societal goal
Sustainably and significantly increase the quality of life of the logistics workers and the worlds population by improving the timely accessibility and mobility of physical objects
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Exploiting the Information Highway Metaphor

Decades ago the information & communications technology community was stuck in a huge inefficient and unsustainable tangle due to millions of unconnected computers When looking for a way to conceptualize how it should transform itself, it relied on a physical transport and logistics metaphor: Building the information highway
The Digital Internet
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Building Upon the Information Superhighway Metaphor
Meeting the IT Grand Challenge
Before: millions of unconnected computers inefficient and unsustainable After: millions of interconnected servers and computers to form the Information Superhighway Key Enabler: transmission of formatted data packets through heterogeneous equipment respecting the TCP/IP protocol Result: The Internet, the Web, the Mobile, the Apps, An open and interconnected distributed network infrastructure Forever transforming industry, economy, culture and society at large
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Using the Digital Internet as a Metaphor for the Physical World

Even though there are fundamental differences between the physical world and the information world, the Physical Internet initiative aims to exploit the Internet metaphor so as to propose a vision for a sustainable and progressively deployable breakthrough solution to global problems associated with the way we move, store, realize, supply and use physical objects all around the world
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research, currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
The Physical Internet Initiative
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Exposing Key Features of the Physical Internet Vision
Evolving towards a worldwide Physical Internet

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The Physical Internet (PI, )

The Physical Internet is an open global logistics system founded on physical, digital and operational interconnectivity through encapsulation, interfaces and protocols The PI enables an efficient, sustainable, adaptable and resilient Logistics Web
Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer.
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Simplified Mental Image of the Physical Internet

Open market for goods transportation (eBay-style) Handles only black box modular containers Open and shared transportation and distribution networks Vast community of users Supplier certification and ratings-by-users to drive logistics performance
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Seamless modular container consolidation in the Physical Internet B. Montreuil & C. Thivierge, 2011
Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas
Positioning the Physical Internet

World Wide Web (WWW)
Digital Information Packets
Digital Internet
Connecting Physical Objects through WWW
Smart Grid
Internet of Things
Smart Networked Objects
Energy Internet
Energy Packets
Physical Internet
Smart Physical Packets
Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org Physical Internet Manifesto, version 1.11.1 Professor Benoit Montreuil, CIRRELT, Universit Laval
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Open Logistics Web
Universal Interconnectivity
High-performance logistic centers, movers and systems, making it seamless, easy, fast, reliable and cheap to interconnect physical objects through modes and routes, with an overarching aim toward universal interconnectivity
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Encapsulation
The Physical Internet does not deal directly with physical goods It requires their standardized encapsulation, such as data packets in the Digital Internet
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Physical encapsulation
Physically encapsulate goods in -containers that are modular, ecofriendly, smart and standardized worldwide
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Physical encapsulation of goods in -containers Modular, ecofriendly, smart & standardized worldwide
Merchandise is unitized as content of a -container and is not dealt with explicitly by PI Modular dimensions from cargo container sizes down to tiny sizes Conceived to be easily flowed through various transport, handling & storage modes & means Easy to handle, store, transport, snap, interlock, load, unload, construct and dismantle, compose and decompose Light, made of environment friendly materials, with minimal off-service footprint Smart tag enabled, with sensors if necessary: proper identification, routing and maintaining Various usage-adapted structural grades Conditioning capabilities as necessary (e.g. temperature) Sealable for security purposes
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Physical encapsulation of goods in -containers World standard modular dimensions and fixtures
Illustrative potential modular dimensions Y Conceptual design by Benoit Montreuil and Marie-Anne Ct CIRRELT, Universit Laval, Qubec, Canada, 2012
X Z 0,12 m 0,24 m 0,36 m 0,48 m 0,6 m 1,2 m 2,4 m 3,6 m 4,8 m 6m 12 m 0,1 m 0,2 m 0,3 m 0,4 m 0,5 m 0,6 m 1,2 m 2,4 m 3,6 m 4,8 m 6m 12 m
Conceptual design illustrating the dimensional modularity of -containers
. Ballot, B. Montreuil, R.D. Meller
The illustrated -container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent
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Physically encapsulation of goods in -containers Easy to compose into composite containers, then to decompose
Conceptual design by Benoit Montreuil and Marie-Anne Ct CIRRELT, Universit Laval, Qubec, Canada, 2012
Conceptual design illustrating the composition functionality of -containers

The illustrated -container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent
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The spatial impact of modular encapsulation

258 case sizes Consumer Product Goods Company 494 products 268 shelf packages At the case level, there is a net increase of 10%
Using only of modular dimensions (<15)
Here, no change in the shape of products. The number of products by case is allowed to vary by + or - 10%. Experiment limited to cases rather than -containers to focus on modularity
At the pallet level, there is a net savings of 10%!
Meller, R. D., Lin, Y.-H., and Ellis, K. P., The Impact of Standardized Metric Physical Internet Containers on the Shipping Volume of Manufacturers, in Proceedings of the 14th IFAC Symposium on Information Control Problems in Manufacturing, Bucharest Romania, (2012).
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Design products fitting containers with minimal space waste

Products designed and engineered to minimize the load and burden they generate on the Physical Internet, with their dimensions adapted to standard container dimensions, with maximal volumetric and functional density while containerized Maximal volumetric and functional density while being in Physical Internet containers, extendable to their usage dimensions when necessary Functional density of an object can be expressed as the ratio of its useful functionality over the product of its weight and volume Only key components and modules have to travel extensively Easy to be completed near point of use using locally available objects
Source: guim.fr
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Digital encapsulation
Exploiting as best as possible the capabilities of smart -containers connected to the Digital Internet and the World Wide Web, and of their embedded smart objects, for improving the performance as perceived by the clients and the overall performance of the Physical Internet
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Physical Internet and the Internet of Things

The Internet of Things is about enabling ubiquitous connection with physical objects equipped with smart connective technology (RFID, GPS, sensors, Internet, etc.), making the objects ever smarter and enabling distributed self-control of objects through networks The Physical Internet is to exploit as best as possible the Internet of Things to enable the ubiquitous connectivity of its -containers and -systems
Image: http://www.globetracker.biz/GlobeTracker/News.asp
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Interfaces optimized for universal interconnectivity

Physical & digital interfaces exploiting the characteristics of -containers and standardized worldwide
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Evolve from material to -container transport, handling & storage means and systems
-movers
A fork-less lift exploiting the snapping and interlocking functionalities of the -container A -container equipped with wheels snapped through its standard modular interfaces
-conveyors
-containers moving and storage means and systems, with innovative technologies and processes exploiting the characteristics of -containers to enable their fast, cheap, easy and reliable input, storage, composing, decomposing, monitoring, protection and output through smart, sustainable and seamless automation and human handling
In -stores, contemporary racking can be used, however innovations in storage technologies exploiting the functional characteristics of modular -containers are bound to be exploited
A highly flexible plug-and-play -conveyor exploiting the standard modular dimensions and interfaces of the -containers
-stores
In -stores, modular -containers can be stacked as in container port terminals
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
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Logistics centers designed for the Physical Internet
Transit Center facilitating the truck-to-truck transshipment of trailers along relays networks through the Physical Internet
Reference: Meller, R.D., B. Montreuil, C. Thivierge & Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Road-Based Transit Center, in Progress in Material Handling Research: 2012, MHIA, Charlotte, NC, to appear (2012).
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Multimodal logistics centers designed for the Physical Internet, enabling seamless, fast, cheap, safe, reliable, distributed, & multimodal transport and deployment of -containers across the Physical Internet
Ocean, sea or river
Physical Internet Road-Rail Hub
Roadway
References Montreuil, B., R.D. Meller, E. Ballot (2010) Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation, in Progress in Material Handling Research 2010, Edited by K. Gue et al., Material Handling Industry of America, 23 p. Ballot ., B. Montreuil & C. Thivierge (2012) Functional Design of Physical Internet Facilities: A Road-Rail Hub, in Progress in Material Handling Research 2012, Edited by B. Montreuil et al., Material Handling Industry of America, 34 p.
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Logistics centers designed for the Physical Internet

Enabling seamless, fast, cheap, safe, reliable, & distributed, multimodal transport and deployment of -containers across the Physical Internet
Road Hub of -containers truck-to-truck crossdocking along a network of relays through the Physical Internet
Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2012), Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub,, in Progress in Material Handling Research: 2012, MHIA.
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Physical Internet Protocols

Protocols optimized for universal interconnectivity regulating the multi-layer services of the Physical Internet
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Standard Logistics Service Protocols
Standardized multi-layered service architecture and protocols
Open Logistics Interconnection Model

Montreuil B., E. Ballot & F. Fontane (2012). An Open Logistics Interconnection Model for the Physical Internet, Proceedings of INCOM 2012 Symposium, Bucharest, Romania, 2012/05/23-25.
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Deploy capability certifications

Multi-level Physical Internet capability certification of containers, handling systems, vehicles, information systems ports, distribution centers, roads, cities and regions, protocols and processes, and so on
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Open Performance Monitoring

Live open monitoring of really achieved performance of all -certified actors and entities, on key performance indices on critical facets such as speed, service level, reliability, safety and security Such live performance tracking is openly available worldwide to enable fact-based decision making and stimulate continuous improvement Open information is to be provided in respect of confidentiality of specific transactions
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A Global System
The Physical Internet is seamlessly applicable everywhere, at any scale
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The Physical Internet: the same conceptual framework at any scale

Intra-center Inter-processor Network Intra-Faciilty Inter-Center Network Intra-Site Inter-Facilities Network
Intra-City Inter-Site Network
Intra-Continental Inter-City, Inter-State/Province Network
Inter-Continental Worldwide Network
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Aim for webbed reliability and resilience

The overall Physical Internet network of networks should warrant its own reliability and that of the physical objects flowing through it
Network webbing and the multiplication of nodes should allow the Physical Internet to insure its own robustness and resilience to unforeseen events For example, if a node or a part of a network fails, the traffic should be easily reroutable, as automatically as possible
Reference: Peck H., Supply chain vulnerability, risk and resilience, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
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Aim for webbed reliability and resilience

The Physical Internets actors, movers, routes, nodes and flowing containers should interact in synergy to guarantee:
The integrity of physical objects encapsulated in -containers The physical and informational integrity of -containers, -movers, -routes and -nodes The informational integrity of -actors (humans, software agents) The robustness of client-focused performance in delivering and storing -containers.
Reference: Peck H., Supply chain vulnerability, risk and resilience, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
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Enabling a Logistics Web
The purpose of the Physical Internet from a user perspective

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From a user perspective, the Physical Internet aims to enable an efficient, sustainable, adaptable and agile Logistics Web
Logistics Web
Set of openly interconnected physical, digital, human, organizational and social actors and networks aiming to serve efficiently and sustainably the worldwide logistics needs of people, organizations, territories and society
Montreuil B., R.D. Meller & E. Ballot (2012). Physical Internet Foundations, In: Service Orientation in Holonic and Multi Agent Manufacturing and Robotics, edited by T. Borangiu et al., Springer.
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From point-to-point or hub-and-spoke transport to distributed multimodal transport
Enabling an open global mobility web
Qubec
20
44 44 40
Montral Alexandria Bay, US border 81 Syracuse 90 Buffalo 90 71 Cleveland Columbus 70 Indianapolis 70 44 St-Louis Current Proposed Springfield
20-401
Tulsa
P2P
Distributed
40 40
Oklahoma City Amarillo 40 Albuquerque
15-10
Flagstaff 40 Needles Barstow
Los Angeles
Transporting a trailer from Quebec to Los Angeles
Distance travelled one-way: 5030 km Drivers: 1 Trucks: 1 Trailer: 1 One-way driving time (h): 48 Return driving time (h): 48+ Total time at transit points (h): 0 Total trailer trip time from Quebec to LA (h): 120 Total trailer trip time from LA to Quebec (h): 120+ Total trailer round trip time (h): 240+ Average driving time per driver (h): 96+ Average trip time per driver (h): 240+
5030 km 17 17 1 51+ 51+ 9 60+ 60+ 120+ 6 6,5
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From point-to-point or hub-and-spoke transport to distributed multimodal transport
Enabling an open global mobility web
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A small two-retailer two-manufacturer case
Illustrating Current Logistics Systems
Current Conceptual Networks
Current Spatial Flows
Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23
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The Impact of Exploiting a Mobility Web

Here limited to unimodal road transport
Current Mobility Web
P# : Plant;
:Retail store; : Product flow
S# :Private distribution center : Road transport
P# : Plant;
: Retail Store;
: Open hub
D# : Distribution center
Travelled distance: -27% Fuel Consumption: -19% Average delivery time: +2% Maximum delivery time: -36%
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Road and rail transport seamlessly integrated into the PI backbone network
Simulation based on product distribution flow to two top retailers in France, from their 100 top suppliers
Exploiting a Physical Internet Enabled Bimodal Mobility Web for the Consumer Goods Industry in France
Physical Internet traffic Current flows Physical Internet flows Preliminary results using existing infrastructures, facilities, demand patterns and service levels Economical: From 4% to 26% overall cost saving Environmental: About 3 times better in terms of greenhouse gas emissions,
by combining road-to-rail modal transfer and more efficient road transport
Ballot ., B. Montreuil, R. Glardon (2012), Simulation de lInternet Physique: controbution la mesure des enjeux et sa dfinition, PREDIT Research Report, France, June 2012, 96 p.
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Activate and exploit an Open Global Distribution Web

Most companies design, run and optimize independently their private distribution networks, investing in DCs or engaging in long-term leases or contracts
There are 535 000 distribution centers in the U.S.A. only

Most of them are used by a single company Most companies use often a single DC and generally less than 20 DCs Imagine the potential if each company could deploy its products through a open web including 535 000 open DCs in the USA
Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
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Dynamically Deploying Stock Across the Distribution Web for Efficient, Fast & Agile Customer Response
Current private system Proposed open system
Client order Physical flow P# : Plant : Retail store S# : Private distribution center
O# : Open distribution center
Adapted from: Hakimi D., B. Montreuil & E. Ballot (2012), Simulating a Physical Internet Enabled Logistics Web: the Case of Mass Distribution in France, ISERC 2012, 2012/-5/19-23
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Mobility Web
The Added Value of Exploiting a Distribution Web When Already Exploiting a Mobility Web
Mobility Web + Distirbution Web
: Retail Store; P# : Plant; D# : Distribution center
: Open hub
P# : Plant;
: Retail Store; : Open hub : Open distribution center
Travelled distance: -23% Fuel consumption: -29% Average delivery time to store: -79% Maximum delivery time to store: -71%
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The Impact of Exploiting a Logistics Web Integrating Mobility and Distribution Webs
Private Logistics Networks -19%; -27% Mobility Web
-42%; -44%
Fuel; Travel
-29%; -23% Mobility Web + Distribution Web
+16%; +15%
[Average; Max] Delivery-Time-to-Store
-82%; -74%
-79%; -71%
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Minimize physical moves and storages by digitally transmitting knowledge and materializing products as locally as possible through the open realization web
Exploiting extensively knowledge-based dematerialization of products and their materialization in physical objects at point of use As it will gain maturity, the Physical Internet is expected to be connected to ever more open distributed flexible production centers capable of locally realizing (make, assemble, finish) for clients a wide variety of products from digitally transmitted specifications, local physical objects and, if needed, critical physical objects brought in from faraway sources
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Open Global Realization Web
Dynamically Outsourcing Product Realization to Certified Open Centers across the Realization Web to Enable Efficient & Agile Near Point-of-Use Product Realization
Current realization network centered around an integrated manufacturing & assembly plant Alternative realization network exploiting realization web for outsourcing assembly
OA OA OA OA OA OM OA OA OA OA OA OA OA Current snapshot OA OA OM OA OM OA OA OM OA OA OM Current snapshot OM OA OA
Alternative realization network exploiting realization web for outsourcing manufacturing & assembly
OA OA OA OA OM OA
M+A
OA
OA
OA
OA
Client
M+A M
Integrated manufacturer + assembler Manufacturer
OA Currently exploited open assembler OA Currently unexploited open assembler
OM Currently exploited open manufacturer OM Currently unexploited open manufacturer
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Open Supply Web
Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked operations, Proc. of SOHOMA 2011
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Exploiting a Supply Web

Tier-2
Tier-1 Supply Web
Each supplier may for example sign a guaranteed X-time accessibility contract with each client, keeping responsibility for product delivery, deployment and realization
Tier-0
Realization Web
Each client has access to a global pool of -certified suppliers and vice-versa
Distribution Web Mobility Web
Client has minimal stock Supplier leverages its clients for deployment pooling
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A Supply Web with Myriads of -Certified Suppliers, Open & Global Access, Standardized Contracts, Open Monitoring and Supplier Ratings
Multi-tiered, from raw materials to final products
Each exploiting the Mobility, Distribution & Realization webs

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From retail/rental networks feeding isolated clients
To interconnected users exploiting an open Service Web

Getting access as needed to product functionality, from product owners-users and rentals, buying products in lesser percentage
Supported by the other Logistics Web constituents
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Physical Internet induced innovation

-Enabling Innovation -Enabled Innovation
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Physical Internet Induced Technological Innovation
-Enabling technologies -Enabled technologies
Flex Conveyor from KIT/Gebhardt (Kai Furmans)
GridFlow from Auburn University (Kevin Gue)
Montreuil, B., Meller, R.D., et al., Designing Facilities for the Physical Internet, Material Handling Industry of America, Charlotte, NC, 2010-2012.
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Physical Internet induced business model innovation

Innovative business models for commercializing Physical Internet enabled offers by various parties, addressing stakeholder revenue, contracting, liability & insurance
-Enabling business models -Enabled business models
What are to be the -enabled equivalents of Amazon, eBay and Google? How are the manufacturers, distributers, retailers, transporters, logistics providers and solutions providers going to evolve so as to best exploit the Physical Internet?
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Physical Internet Induced Infrastructural Innovation

The Physical Internet homogeneity in terms of object encapsulation in -containers should allow a much better utilization of modes & means, thus increasing the capacity of infrastructures by the exploitation of standardizations, rationalizations and automations through currently unreachable innovations
-Enabling infrastructures -Enabled infrastructures
FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives whose implementation viability can be upgraded through alignment with the Physical Internet
http://www.ilookforwardto.com/2010/12/foodtubes-really-fast-food-delivered-in-a-physical-Internet-of-underground-pipes.html http://www.cargocap.com/content/what-is-cargocap
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Realizing the Vision
Evolving towards a worldwide Physical Internet

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Global systemic sustainable vision stimulating and aligning action around the world
The Physical Internet
Individual initiatives by businesses, industries and governments are necessary but are not sufficient There is a need for a macroscopic, holistic, systemic vision offering a unifying, challenging and stimulating framework There is a need for an interlaced set of global and local initiatives towards this vision, building on the shoulders of current assets and projects, to help evolve from the current globally inefficient and unsustainable state to a desired globally efficient and sustainable state
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Progressive Deployment, Cohabitation and Certification
Physical Internet Implementation
The widespread development and deployment of the Physical Internet will not be achieved overnight in a Big-Bang logic but rather in an ongoing logic of cohabitation and of progressive deployment, propelled by the actors integrating gradually the Physical Internet ways and finding ever more value in its usage and exploitation
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Progressive Deployment, Cohabitation and Certification
Physical Internet Implementation
A smooth transition starting with rethinking and retrofitting phases, then moving toward more transformative phases The Physical Internet can constitute itself progressively through the multi-level certification of:
Protocols Containers Handling and storage technologies, distribution centers, production centers, train stations, ports, multimodal hubs Information systems (e.g. reservation, smart labels, portals) Urban zones and regions, inter-country borders
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The Physical Internet: An Instrument for Tackling the Grand Logistics Sustainability Challenge
Exploiting the Internet metaphor for fostering a breakthrough logistics system A commitment towards open universal interconnection of logistics services and resources An integrated holistic tackle on making more efficient and sustainable the way we move, store, realize, supply and use physical objects across the world A highly scalable Coopetition approach
Conclusion
1/3
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The Physical Internet : Not an Utopia, not a Big-Bang

The Physical Internet builds on the network effect, getting ever more effective as it gathers more users It must gather critical mass, first exploiting existing infrastructures and means, then gradually fostering innovation. Even though it is to be ultimately global it will have to grow first in fertile domains, to be collaboratively supported by key leaders from industry, government and academia.
Conclusion
2/3
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The International Physical Internet Initiative: An Open Innovation Endeavor
Conclusion
3/3
With this manifesto and its underlying research, a small step has been made towards meeting the global logistics efficiency and sustainability grand challenge A lot more are needed to really shape this vision and, much more important, to give it flesh through real initiatives and projects so as to really influence in a positive way our collective future This requires a lot of collaboration between academia, industry and governments across localities, countries and continents Your help is welcome!
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Questions and comments are welcome, and especially collaborative project avenues
Benoit.Montreuil@cirrelt.ulaval.ca www.physicalinternetinitiative.org Twitter: @physicinternet
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Physical Internet Manifesto - ENG - Version 1.11.1 2012-11-28

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Version 1.11.1 : 2012-11-28

Sample of companies contributing to the Physical Internet Initiative

At face value, logistics seems to be doing great!

Logistics is the backbone sustaining our lifestyle

Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas

At face value, logistics seems to be doing great!

Logistics is the backbone sustaining eBusiness

Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas

At face value, logistics seems to be doing great!

Container Logistics is the backbone sustaining the globalization of world trade

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Yet we have to face a harsh fact

Logistics inefficiency and unsustainability claim

Why do we need to change ?

Logistics inefficiency and unsustainability

Inefficiency and unsustainability symptoms

Logistics inefficiency & unsustainability symptoms

5. Poorly / badly used production and storage facilities

Logistics inefficiency & unsustainability symptoms

7. Products do not reach those who need them the most

8. Products unnecessarily move, crisscrossing the world

9. Fast & reliable multimodal transport is still a dream

10. Getting products in, through and out of cities is a nightmare

Logistics inefficiency & unsustainability symptoms

12. Smart automation & technology are hard to justify

13. Innovation is strangled

Mapping inefficiency & unsustainability symptoms

Exploiting the Information Highway Metaphor

The Digital Internet

Building Upon the Information Superhighway Metaphor

Meeting the IT Grand Challenge

Using the Digital Internet as a Metaphor for the Physical World

The Physical Internet Initiative

Exposing Key Features of the Physical Internet Vision

Evolving towards a worldwide Physical Internet

The Physical Internet (PI, )

Simplified Mental Image of the Physical Internet

Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas

Positioning the Physical Internet

Connecting Physical Objects through WWW

Open Logistics Web

Conceptual design illustrating the dimensional modularity of -containers

. Ballot, B. Montreuil, R.D. Meller

Conceptual design illustrating the composition functionality of -containers

The spatial impact of modular encapsulation

Using only of modular dimensions (<15)

At the pallet level, there is a net savings of 10%!

Design products fitting containers with minimal space waste

Physical Internet and the Internet of Things

Interfaces optimized for universal interconnectivity

In -stores, modular -containers can be stacked as in container port terminals

Logistics centers designed for the Physical Internet

Ocean, sea or river

Physical Internet Road-Rail Hub

Logistics centers designed for the Physical Internet

Physical Internet Protocols

Standard Logistics Service Protocols

Standardized multi-layered service architecture and protocols

Open Logistics Interconnection Model

Deploy capability certifications

Open Performance Monitoring