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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, Québec, Canada

                    Version 1.11.1: 2012-11-19




                                                           Physical Internet Manifesto, version 1.11
                                               Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                          Québec, 2012-11-19, 1/76
Acknowledgements
                The Physical Internet Manifesto has greatly benefited from
              the contributions of esteemed colleagues and doctoral students
America
 CIRRELT Research Center:
  • Teodor Crainic - UQAM
  • Michel Gendreau - Université de Montréal
  • Driss Hakimi, Mustapha Lounès, Jacques Renaud, Helia Sohrabi - Université 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
   •   Éric Ballot, Frédéric Fontane, Shenle Pan, Rochdi Sarraj – Mines ParisTech
   •   Rémy Glardon – EPFL
   •   Rene De Koster – Erasmus University
   •   Olivier Labarthe – IUT Bordeaux Montesquieu
   •   Detlef Spee – Fraunhofer Institute for Material Flow and Logistic

                                                                                Physical Internet Manifesto, version 1.11
                                                                    Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                               Québec, 2012-11-19, 2/76
Manifesto Outline

 Global Logistics Sustainability Grand Challenge
 Envisioning the Physical Internet
 Enabling a Logistics Web
 Toward Realizing the Vision


                                             Physical Internet Manifesto, version 1.11
                                 Professor Benoit Montreuil, CIRRELT, Université Laval
                                                            Québec, 2012-11-19, 3/76
Sample of companies contributing to
   the Physical Internet Initiative




                                   Physical Internet Manifesto, version 1.11
                       Professor Benoit Montreuil, CIRRELT, Université Laval
                                                  Québec, 2012-11-19, 4/76
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



                                                                                     Physical Internet Manifesto, version 1.11
                                                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                    Québec, 2012-11-19, 5/76
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



                                                                                     Physical Internet Manifesto, version 1.11
                                                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                    Québec, 2012-11-19, 6/76
At face value,
                  logistics
           seems to be doing great!



            Container Logistics
             is the backbone
                 sustaining
                    the
               globalization
              of world trade

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



                                                                                     Physical Internet Manifesto, version 1.11
                                                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                              7     Québec, 2012-11-19, 7/76
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


                                               Physical Internet Manifesto, version 1.11
                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                              Québec, 2012-11-19, 8/76
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
              ENVIRONMENT
  One of the heaviest greenhouse gas generators,
 energy consumers, polluters and materials wasters
          Growing negative contribution
   while nations’ goals aims for heavy reductions
                     SOCIAL
         Lack of fast, reliable and affordable
    accessibility and mobility of physical objects
   for the vast majority of the world’s population       European Commission: A Roadmap for moving to a competitive low carbon economy in

    Too often precarious logistic work conditions        2050, Office of the European Union, Brussels, 16p. (2011)
                                                         Serveau, L.T. : Inventaire des émissions de polluants dans l’atmosphère en France. In:
                                                         SECTEN, Citepa, Paris (2011)
                                                         European Commission: EU energy and transport in figures. Statistical Pocketbook, (2009)




                                                                             Physical Internet Manifesto, version 1.11
                                                                 Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                           Québec, 2012-11-19, 9/76
Inefficiency and unsustainability symptoms
                         Leading Us Toward Hitting the Wall Real Hard
      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
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


                                                                                                              Physical Internet Manifesto, version 1.11
                                                                                                  Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                Québec, 2012-11-19, 10/76
Logistics inefficiency & unsustainability symptoms
        Leading Us Toward Hitting the Wall Real Hard
              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
              2. Empty travel is the norm rather than the exception
                • 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
              3. Truckers have become the modern cowboys
                • 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
              4. Products mostly sit idle, stored where unneeded
                 yet so often unavailable fast where needed
                • 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
              5. Poorly / badly used production and storage facilities
                • 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
                                                      Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                         11

                                                                                Québec, 2012-11-19, 11/76
Logistics inefficiency & unsustainability symptoms
                            Leading Us Toward Hitting the Wall Real Hard
                                       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

Rusting new cars in disused airfield   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-and-
                                          cost 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


                                                                                             Physical Internet Manifesto, version 1.11
                                                                                 Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                           Québec, 2012-11-19, 12/76
Logistics inefficiency & unsustainability symptoms
        Leading Us Toward Hitting the Wall Real Hard
            11. Logistics networks & supply chains are neither secure nor
                robust
              • There is extreme concentration of operations in a limited number of centralized
                production and distribution facilities, with travel along a narrow set of high-
                traffic 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


                                                                  Physical Internet Manifesto, version 1.11
                                                      Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                Québec, 2012-11-19, 13/76
Mapping inefficiency & unsustainability symptoms
                to economical, environmental and societal facets




                                                                                                                     Environmental
                                                                                                        Economical



                                                                                                                                     Societal
                  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


                                                                                   Physical Internet Manifesto, version 1.11
                                                                       Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                  Québec, 2012-11-19, 14/76
The Global Logistics Sustainability Grand Challenge
 The Global Logistics Sustainability Grand Challenge
                                      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.



                                                                                                               Physical Internet Manifesto, version 1.11
                                                                                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                 Québec, 2012-11-19, 15/76
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 world’s population
by improving the timely accessibility and mobility of physical objects



                                                            Physical Internet Manifesto, version 1.11
                                                Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                          Québec, 2012-11-19, 16/76
The Digital Internet
     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




                                                     Physical Internet Manifesto, version 1.11
                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                   Québec, 2012-11-19, 17/76
Meeting the IT Grand Challenge
Building Upon the Information Superhighway Metaphor




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

                                                           Physical Internet Manifesto, version 1.11
                                               Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                         Québec, 2012-11-19, 18/76
The Physical Internet Initiative
         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



                                                                                                              Physical Internet Manifesto, version 1.11
                                                                                                  Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                Québec, 2012-11-19, 19/76
Exposing Key Features
    of the Physical Internet Vision




Evolving towards a worldwide Physical Internet

                                         Physical Internet Manifesto, version 1.11
                             Professor Benoit Montreuil, CIRRELT, Université Laval
                                                       Québec, 2012-11-19, 20/76
The Physical Internet
                      (PI, π)
        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.



                                                                                                                                        Physical Internet Manifesto, version 1.11
                                                                                                                            Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                 Québec, 2012-11-19, 21/76
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
Seamless modular container consolidation in the Physical Internet
                                                                      • Supplier certification and
              B. Montreuil & C. Thivierge, 2011                         ratings-by-users to drive
                                                                        logistics performance
                                                         Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas


                                                                                                Physical Internet Manifesto, version 1.11
                                                                                    Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                               Québec, 2012-11-19, 22/76
Positioning the Physical Internet

                     World Wide Web (WWW)
                         Digital Internet
                      Digital Information Packets


                                                                                                Smart Grid
           Connecting Physical Objects through WWW
                                                                                                 Energy
                      Internet of Things                                                        Internet
                       Smart Networked Objects

                                                                                              Energy Packets
                         Open Logistics Web
                       Physical Internet
                         Smart Physical Packets

Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org


                                                                                       Physical Internet Manifesto, version 1.11
                                                                           Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                      Québec, 2012-11-19, 23/76
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



                                                 Physical Internet Manifesto, version 1.11
                                     Professor Benoit Montreuil, CIRRELT, Université Laval
                                                               Québec, 2012-11-19, 24/76
Encapsulation
   The Physical Internet
   does not deal directly
    with physical goods
       It requires their
standardized encapsulation,
   such as data packets in
     the Digital Internet



                                          Physical Internet Manifesto, version 1.11
                              Professor Benoit Montreuil, CIRRELT, Université Laval
                                                        Québec, 2012-11-19, 25/76
Physical encapsulation

Physically encapsulate goods
       in π-containers
     that are modular,
     ecofriendly, smart
and standardized worldwide




                                           Physical Internet Manifesto, version 1.11
                               Professor Benoit Montreuil, CIRRELT, Université Laval
                                                         Québec, 2012-11-19, 26/76
Physical encapsulation of goods in π-containers
       Modular, ecofriendly, smart & standardized worldwide
• Merchandise is unitized as content of a π-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




                                                                          Physical Internet Manifesto, version 1.11
                                                              Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                        Québec, 2012-11-19, 27/76
Physical encapsulation of goods in π-containers
                                                               World standard modular dimensions and fixtures
                                                                                                                                                                                         Illustrative potential
                                                                                                                                                                                                modular
                                                                                                                                                                                              dimensions
                                                                                                                                                                                                  Y
Conceptual design by Benoit Montreuil and Marie-Anne Côté




                                                                                                                                                                                                                                X

                                                                                                                                                                                         Z
CIRRELT, Université Laval, Québec, Canada, 2012




                                                                                                                                                                                             0,12 m                 0,1 m
                                                                                                                                                                                             0,24 m                 0,2 m
                                                                                                                                                                                             0,36 m                 0,3 m
                                                                                                                                                                                             0,48 m                 0,4 m
                                                                                                                                                                                             0,6 m                  0,5 m
                                                                                                                                                                                                                    0,6 m
                                                                                                                                                                                              1,2 m                 1,2 m
                                                                                                                                                                                              2,4 m                 2,4 m
                                                                                                                                                                                              3,6 m                 3,6 m
                                                                                                                                                                                              4,8 m                 4,8 m
                                                                                                                                                                                               6m                    6m
                                                                                                                                                                                              12 m                  12 m
                                                                       Conceptual design illustrating                                                                                        É. Ballot, B. Montreuil, R.D. Meller
                                                                       the dimensional modularity
                                                                       of π-containers
                                                            The illustrated π-container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent


                                                                                                                                                                   Physical Internet Manifesto, version 1.11
                                                                                                                                                       Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                                     Québec, 2012-11-19, 28/76
Physically encapsulation of goods in π-containers
                  Easy to compose into composite containers, then to decompose
Conceptual design by Benoit Montreuil and Marie-Anne Côté
CIRRELT, Université Laval, Québec, Canada, 2012




                                                                                                                                                                     Conceptual design illustrating
                                                                                                                                                                     the composition functionality
                                                                                                                                                                            of π-containers


                                                            The illustrated π-container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent


                                                                                                                                                                   Physical Internet Manifesto, version 1.11
                                                                                                                                                       Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                                     Québec, 2012-11-19, 29/76
The spatial impact of modular encapsulation
                                                                                                                                      Consumer Product Goods
               258 case sizes                                                                                                         Company
                                                                                                                                      494 products
                                                                                                                                      268 shelf packages

                                                                                                                                   At the case level, there is
                                                                          Using only of modular                                    a net increase of 10%
                                                                            dimensions (<15)




Here, no change in
the shape of products.
The number of products by case
is allowed to vary by + or - 10%.                                                                                                     At the pallet level,
Experiment limited to cases rather
than π-containers to focus on modularity                                                                                              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).



                                                                                                                                      Physical Internet Manifesto, version 1.11
                                                                                                                          Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                         Québec, 2012-11-19, 30/76
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                                 Source: guim.fr
     using locally available objects

                                                               Physical Internet Manifesto, version 1.11
                                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                             Québec, 2012-11-19, 31/76
Digital encapsulation
    Exploiting as best as possible
the capabilities of smart π-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


                                                     Physical Internet Manifesto, version 1.11
                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                   Québec, 2012-11-19, 32/76
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
Image: http://www.globetracker.biz/GlobeTracker/News.asp
                                                             of its π-containers and π-systems


                                                                                          Physical Internet Manifesto, version 1.11
                                                                              Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                        Québec, 2012-11-19, 33/76
Interfaces optimized for
universal interconnectivity

 Physical & digital interfaces
exploiting the characteristics
       of π-containers
and standardized worldwide




                                             Physical Internet Manifesto, version 1.11
                                 Professor Benoit Montreuil, CIRRELT, Université Laval
                                                           Québec, 2012-11-19, 34/76
Evolve from material to π-container
                      transport, handling & storage means and systems
                                                                                                    π-containers moving and storage means and systems,
                                                             A π-container
    π-movers                                                 equipped                                    with innovative technologies and processes
                                                             with wheels
     A fork-less lift                                        snapped through
                                                                                                        exploiting the characteristics of π-containers
     exploiting                                              its standard                               to enable their fast, cheap, easy and reliable
     the snapping and                                        modular interfaces
     interlocking                                                                                         input, storage, composing, decomposing,
     functionalities
     of the π-container                                                                                      monitoring, protection and output
                                                                                                          through smart, sustainable and seamless
    π-conveyors                                                                                               automation and human handling

                                                                                                                        In π-stores,
                                                                                                     contemporary racking can be
                                                                                                       used, however innovations
                                                                                                           in storage technologies
                                                                                                         exploiting the functional
                                                                                                                    characteristics
                                                                                                          of modular π-containers                                                              In π-stores,
                          A highly flexible plug-and-play π-conveyor                                    are bound to be exploited
                          exploiting the standard modular dimensions                                                                                                                           modular π-containers
                          and interfaces of the π-containers                                                                                                                                   can be stacked as in
                                                                                                                                                        π-stores                               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.




                                                                                                                                                             Physical Internet Manifesto, version 1.11
                                                                                                                                                 Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                                             Québec, 2012-11-19, 35/76
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).




                                                                                                                                                           Physical Internet Manifesto, version 1.11
                                                                                                                                               Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                                          Québec, 2012-11-19, 36/76
Multimodal logistics centers                                     Ocean, sea or river

 designed for the Physical Internet,
enabling seamless, fast, cheap, safe,
 reliable, distributed, & multimodal
      transport and deployment
            of π-containers
     across the Physical Internet




      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 É., 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.




                                                        Physical Internet Manifesto, version 1.11
                                            Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                        Québec, 2012-11-19, 37/76
Logistics centers designed for the Physical Internet
        Enabling seamless, fast, cheap, safe, reliable, & distributed, multimodal transport and
                      deployment of π-containers across the Physical Internet




                                  Road Hub of π-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.




                                                                                                                                                     Physical Internet Manifesto, version 1.11
                                                                                                                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                                    Québec, 2012-11-19, 38/76
Physical Internet
     Protocols
 Protocols optimized for
universal interconnectivity
        regulating
 the multi-layer services
 of the Physical Internet




                     Physical Internet Manifesto, version 1.11
         Professor Benoit Montreuil, CIRRELT, Université Laval
                                   Québec, 2012-11-19, 39/76
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.




                                                                                                                                      Physical Internet Manifesto, version 1.11
                                                                                                                          Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                       Québec, 2012-11-19, 40/76
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



                                              Physical Internet Manifesto, version 1.11
                                  Professor Benoit Montreuil, CIRRELT, Université Laval
                                                            Québec, 2012-11-19, 41/76
Open Performance Monitoring

   Live open monitoring of really achieved performance
            of all π-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



                                                     Physical Internet Manifesto, version 1.11
                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                   Québec, 2012-11-19, 42/76
A Global System
  The Physical Internet
is seamlessly applicable
      everywhere,
      at any scale




                    Physical Internet Manifesto, version 1.11
        Professor Benoit Montreuil, CIRRELT, Université Laval
                                  Québec, 2012-11-19, 43/76
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                Intra-Continental
            Network           Inter-City, Inter-State/Province Network        Inter-Continental Worldwide Network




                                                                                      Physical Internet Manifesto, version 1.11
                                                                          Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                    Québec, 2012-11-19, 44/76
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


                                                                                                                    Physical Internet Manifesto, version 1.11
                                                                                                        Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                            Québec, 2012-11-19, 45/76
Aim for webbed reliability and resilience

The Physical Internet’s actors, movers, routes, nodes and
flowing containers should interact in synergy to guarantee:
   – The integrity of physical objects encapsulated in π-containers
   – The physical and informational integrity
     of π-containers, π-movers, π-routes and π-nodes
   – The informational integrity of π-actors
     (humans, software agents)
   – The robustness of client-focused performance in delivering and
     storing π-containers.

     Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007



                                                                                                                         Physical Internet Manifesto, version 1.11
                                                                                                             Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                  Québec, 2012-11-19, 46/76
Enabling a Logistics Web




The purpose of the Physical Internet
      from a user perspective
                                     Physical Internet Manifesto, version 1.11
                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                   Québec, 2012-11-19, 47/76
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.



                                                                                                                                        Physical Internet Manifesto, version 1.11
                                                                                                                            Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                                 Québec, 2012-11-19, 48/76
Physical Internet Manifesto, version 1.11
Professor Benoit Montreuil, CIRRELT, Université Laval
                          Québec, 2012-11-19, 49/76
Enabling an open global mobility web
From point-to-point or hub-and-spoke transport to distributed multimodal transport



                                                                                                                         Québec
                                                                                                                    20
                                                                                                              Montréal
                                                                                                           20-401
                                                                                                      81
                                                                                                         Alexandria Bay, US border
                                                                                                90
                                                                                                   Syracuse
                                                                                           90 Buffalo
                                                                                     71 Cleveland
                                                                               70
                                                                                  Columbus
                                                                        70
                                                                           Indianapolis
                                                                  44 St-Louis
                                                        44    Springfield                                          Current Proposed
                                                      Tulsa                                                              P2P   Distributed
                                                 44
                                                                       Distance travelled one-way:                  5030 km    5030 km
                                           40 Oklahoma City
                                                                       Drivers:                                            1         17
                                       40 Amarillo
                                                                       Trucks:                                             1         17
                               40   Albuquerque
                                                                       Trailer:                                            1          1
                         40  Flagstaff                                 One-way driving time (h):                          48       51+
                   40 Needles                                          Return driving time (h):                         48+        51+
                Barstow                                                Total time at transit points (h):                   0          9
        15-10
                                                                       Total trailer trip time from Quebec to LA (h):   120        60+
      Los Angeles
                                                                       Total trailer trip time from LA to Quebec (h): 120+         60+
                                                                       Total trailer round trip time (h):              240+       120+
          Transporting a trailer                                       Average driving time per driver (h):             96+           6
      from Quebec to Los Angeles                                       Average trip time per driver (h):               240+         6,5



                                                                                               Physical Internet Manifesto, version 1.11
                                                                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                             Québec, 2012-11-19, 50/76
Enabling an open global mobility web
From point-to-point or hub-and-spoke transport to distributed multimodal transport




                                                               Physical Internet Manifesto, version 1.11
                                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                             Québec, 2012-11-19, 51/76
Illustrating Current Logistics Systems
               A small two-retailer two-manufacturer case




       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



                                                                                                                              Physical Internet Manifesto, version 1.11
                                                                                                                  Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                      Québec, 2012-11-19, 52/76
The Impact of Exploiting a Mobility Web
                      Here limited to unimodal road transport
Current                                                                                                     Mobility Web




 P# : Plant;      :Retail store;   S# :Private distribution center   P# : Plant;      : Retail Store;       : Open hub
               : Product flow                 : Road transport               D# : Distribution center

                                                 Travelled distance: -27%
                                                 Fuel Consumption: -19%
                                                Average delivery time: +2%
                                               Maximum delivery time: -36%

                                                                                     Physical Internet Manifesto, version 1.11
                                                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                        Québec, 2012-11-19, 53/76
Exploiting a Physical Internet Enabled Bimodal Mobility Web
                   for the Consumer Goods Industry in France
      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




           Current flows               Physical Internet flows         Physical Internet traffic
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 É., B. Montreuil, R. Glardon (2012), Simulation de l’Internet Physique: controbution à la mesure des enjeux et à sa définition, PREDIT Research Report, France, June 2012, 96 p.




                                                                                                                                   Physical Internet Manifesto, version 1.11
                                                                                                                       Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                             Québec, 2012-11-19, 54/76
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



                                                                                 Physical Internet Manifesto, version 1.11
                                                                     Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                    Québec, 2012-11-19, 55/76
Dynamically Deploying Stock Across the Distribution Web
          for Efficient, Fast & Agile Customer Response
    Current private system                                                                                                       Proposed open system




              Client order
                                          P# : Plant                  : Retail store            S# : Private distribution center               O# : Open distribution center
               Physical flow

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




                                                                                                                                      Physical Internet Manifesto, version 1.11
                                                                                                                          Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                                               Québec, 2012-11-19, 56/76
The Added Value of Exploiting a Distribution Web
      When Already Exploiting a Mobility Web
Mobility Web                                                          Mobility Web + Distirbution Web




     P# : Plant;      : Retail Store;    : Open hub            P# : Plant;       : Retail Store;     : Open hub
              D# : Distribution center                                       : Open distribution center
                                               Travelled distance: -23%
                                               Fuel consumption: -29%
                                          Average delivery time to store: -79%
                                          Maximum delivery time to store: -71%

                                                                                Physical Internet Manifesto, version 1.11
                                                                    Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                               Québec, 2012-11-19, 57/76
The Impact of Exploiting a Logistics Web
    Integrating Mobility and Distribution Webs
Private Logistics Networks
                                                                             -42%; -44%
                                            -19%; -27%
                             Mobility Web                         Fuel; Travel
                                                                          -29%; -23%
                                                          Mobility Web + Distribution Web




 +16%; +15%

[Average; Max]
Delivery-Time-to-Store       -82%; -74%

  -79%; -71%

                                                              Physical Internet Manifesto, version 1.11
                                                  Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                            Québec, 2012-11-19, 58/76
Open Global Realization Web
            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

                                                           Physical Internet Manifesto, version 1.11
                                               Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                         Québec, 2012-11-19, 59/76
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                   Alternative realization network                          Alternative realization network
 centered around an integrated                     exploiting realization web                               exploiting realization web
manufacturing & assembly plant                     for outsourcing assembly                        for outsourcing manufacturing & assembly

                                                                               OA                                              OA     OA
                                                            OA        OA                                              OA                   OM
                                                                                                                 OM
                                                                     OA                                                       OA
                                                                                    OA                                                     OA
                                                      OA                                                       OA
                                                                                                                                    OM
                M+A                                        OA             M                                         OA
                                                                                                                                                OA
                                                                                         OA
                                                                                                                         OM
                                                                                         OA                                                      OA
                                                           OA                                                       OA                     OM
                                                                              OA                                                    OA
                                                                                              OA                    OM                                OA
                                                                                     OA                                                         OA
                                                                OA                                                       OA
                                                                              OA                                                    OA
                                                                                      Current                                              OM         Current
                                                                                     snapshot                                                        snapshot


 Client   M+A   Integrated manufacturer + assembler    OA Currently exploited open assembler                 OM Currently exploited open manufacturer

           M    Manufacturer                           OA Currently unexploited open assembler               OM Currently unexploited open manufacturer




                                                                                                               Physical Internet Manifesto, version 1.11
                                                                                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                    Québec, 2012-11-19, 60/76
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



                                                                                                                Physical Internet Manifesto, version 1.11
                                                                                                    Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                    Québec, 2012-11-19, 61/76
Exploiting a Supply Web                                              Each supplier may for example
                                                              sign a guaranteed X-time accessibility
                                             Tier-2
                                                                          contract with each client,
                                                                          keeping responsibility for
                                                                      product delivery, deployment
                                                                                    and realization
                                 Tier-1

                          Supply
                           Web
                                             Tier-0




                                          Realization Web
                                                                             Client has minimal stock
                                           Distribution Web
Each client has access to a global pool                                   Supplier leverages its clients
of π-certified suppliers and vice-versa    Mobility Web                       for deployment pooling

                                                                           Physical Internet Manifesto, version 1.11
                                                               Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                         Québec, 2012-11-19, 62/76
A Supply Web with Myriads of π-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

                                               Physical Internet Manifesto, version 1.11
                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                             Québec, 2012-11-19, 63/76
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



                                              Physical Internet Manifesto, version 1.11
                                  Professor Benoit Montreuil, CIRRELT, Université Laval
                                                            Québec, 2012-11-19, 64/76
Physical Internet induced
       innovation


     π-Enabling
     Innovation


         π-Enabled
        Innovation




                                        Physical Internet Manifesto, version 1.11
                            Professor Benoit Montreuil, CIRRELT, Université Laval
                                                      Québec, 2012-11-19, 65/76
Physical Internet
                                                    Induced
                                                 Technological                                        π-Enabling
                                                  Innovation                                         technologies


                                                                                                                 π-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.




                                                                                               Physical Internet Manifesto, version 1.11
                                                                                   Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                           Québec, 2012-11-19, 66/76
Physical Internet induced
business model innovation                                 π-Enabling
                                                           business
   Innovative business models                              models
       for commercializing
Physical Internet enabled offers by                              π-Enabled
          various parties,                                        business
 addressing stakeholder revenue,                                  models
 contracting, liability & insurance

          What are to be the π-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?


                                                      Physical Internet Manifesto, version 1.11
                                          Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                    Québec, 2012-11-19, 67/76
Physical Internet Induced
              Infrastructural Innovation
                                                                                                                           π-Enabling
   The Physical Internet homogeneity in terms of                                                                         infrastructures
        object encapsulation in π-containers
       should allow a much better utilization
                 of modes & means,                                                                                                   π-Enabled
   thus increasing the capacity of infrastructures                                                                                infrastructures
      by the exploitation of standardizations,
          rationalizations and automations
    through currently unreachable innovations
      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



                                                                                                                        Physical Internet Manifesto, version 1.11
                                                                                                            Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                                                                                              Québec, 2012-11-19, 68/76
Realizing the Vision




Evolving towards a worldwide Physical Internet

                                         Physical Internet Manifesto, version 1.11
                             Professor Benoit Montreuil, CIRRELT, Université Laval
                                                       Québec, 2012-11-19, 69/76
The Physical Internet
               Global systemic sustainable vision
        stimulating and aligning action around the world
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

                                                    Physical Internet Manifesto, version 1.11
                                        Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                  Québec, 2012-11-19, 70/76
Physical Internet Implementation
   Progressive Deployment, Cohabitation and Certification

 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

                                                  Physical Internet Manifesto, version 1.11
                                      Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                Québec, 2012-11-19, 71/76
Physical Internet Implementation
      Progressive Deployment, Cohabitation and Certification

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

                                                       Physical Internet Manifesto, version 1.11
                                           Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                     Québec, 2012-11-19, 72/76
Conclusion                                                  1/3
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


                                                Physical Internet Manifesto, version 1.11
                                    Professor Benoit Montreuil, CIRRELT, Université Laval
                                                              Québec, 2012-11-19, 73/76
Conclusion                                                    2/3
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.

                                                     Physical Internet Manifesto, version 1.11
                                         Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                   Québec, 2012-11-19, 74/76
Conclusion                                                   3/3
     The International Physical Internet Initiative:
            An Open Innovation Endeavor
        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!

                                                      Physical Internet Manifesto, version 1.11
                                          Professor Benoit Montreuil, CIRRELT, Université Laval
                                                                    Québec, 2012-11-19, 75/76
Questions and comments are welcome,
and especially collaborative project avenues



     Benoit.Montreuil@cirrelt.ulaval.ca

    www.physicalinternetinitiative.org

         Twitter: @physicinternet



                                         Physical Internet Manifesto, version 1.11
                             Professor Benoit Montreuil, CIRRELT, Université Laval
                                                       Québec, 2012-11-19, 76/76

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Physical internet manifesto eng version 1.11.1 2012-11-19

  • 1. 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, Québec, Canada Version 1.11.1: 2012-11-19 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 1/76
  • 2. Acknowledgements The Physical Internet Manifesto has greatly benefited from the contributions of esteemed colleagues and doctoral students America CIRRELT Research Center: • Teodor Crainic - UQAM • Michel Gendreau - Université de Montréal • Driss Hakimi, Mustapha Lounès, Jacques Renaud, Helia Sohrabi - Université 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 • Éric Ballot, Frédéric Fontane, Shenle Pan, Rochdi Sarraj – Mines ParisTech • Rémy Glardon – EPFL • Rene De Koster – Erasmus University • Olivier Labarthe – IUT Bordeaux Montesquieu • Detlef Spee – Fraunhofer Institute for Material Flow and Logistic Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 2/76
  • 3. Manifesto Outline  Global Logistics Sustainability Grand Challenge  Envisioning the Physical Internet  Enabling a Logistics Web  Toward Realizing the Vision Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 3/76
  • 4. Sample of companies contributing to the Physical Internet Initiative Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 4/76
  • 5. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 5/76
  • 6. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 6/76
  • 7. At face value, logistics seems to be doing great! Container Logistics is the backbone sustaining the globalization of world trade Original slide concept by Professor Russ Meller, CELDi, U. of Arkansas Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval 7 Québec, 2012-11-19, 7/76
  • 8. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 8/76
  • 9. 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 ENVIRONMENT One of the heaviest greenhouse gas generators, energy consumers, polluters and materials wasters Growing negative contribution while nations’ goals aims for heavy reductions SOCIAL Lack of fast, reliable and affordable accessibility and mobility of physical objects for the vast majority of the world’s population European Commission: A Roadmap for moving to a competitive low carbon economy in Too often precarious logistic work conditions 2050, Office of the European Union, Brussels, 16p. (2011) Serveau, L.T. : Inventaire des émissions de polluants dans l’atmosphère en France. In: SECTEN, Citepa, Paris (2011) European Commission: EU energy and transport in figures. Statistical Pocketbook, (2009) Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 9/76
  • 10. Inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard 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 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 10/76
  • 11. Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard 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 2. Empty travel is the norm rather than the exception • 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 3. Truckers have become the modern cowboys • 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 4. Products mostly sit idle, stored where unneeded yet so often unavailable fast where needed • 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 5. Poorly / badly used production and storage facilities • 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 Professor Benoit Montreuil, CIRRELT, Université Laval 11 Québec, 2012-11-19, 11/76
  • 12. Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard 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 Rusting new cars in disused airfield 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-and- cost 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 12/76
  • 13. Logistics inefficiency & unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard 11. Logistics networks & supply chains are neither secure nor robust • There is extreme concentration of operations in a limited number of centralized production and distribution facilities, with travel along a narrow set of high- traffic 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 13/76
  • 14. Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets Environmental Economical Societal 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 14/76
  • 15. The Global Logistics Sustainability Grand Challenge The Global Logistics Sustainability Grand Challenge 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 15/76
  • 16. 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 world’s population by improving the timely accessibility and mobility of physical objects Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 16/76
  • 17. The Digital Internet 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 17/76
  • 18. Meeting the IT Grand Challenge Building Upon the Information Superhighway Metaphor 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 18/76
  • 19. The Physical Internet Initiative 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 19/76
  • 20. Exposing Key Features of the Physical Internet Vision Evolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 20/76
  • 21. The Physical Internet (PI, π) 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 21/76
  • 22. 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 Seamless modular container consolidation in the Physical Internet • Supplier certification and B. Montreuil & C. Thivierge, 2011 ratings-by-users to drive logistics performance Adapted from a contribution of Professor Russ Meller from CELDi, U. of Arkansas Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 22/76
  • 23. Positioning the Physical Internet World Wide Web (WWW) Digital Internet Digital Information Packets Smart Grid Connecting Physical Objects through WWW Energy Internet of Things Internet Smart Networked Objects Energy Packets Open Logistics Web Physical Internet Smart Physical Packets Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 23/76
  • 24. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 24/76
  • 25. Encapsulation The Physical Internet does not deal directly with physical goods It requires their standardized encapsulation, such as data packets in the Digital Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 25/76
  • 26. Physical encapsulation Physically encapsulate goods in π-containers that are modular, ecofriendly, smart and standardized worldwide Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 26/76
  • 27. Physical encapsulation of goods in π-containers Modular, ecofriendly, smart & standardized worldwide • Merchandise is unitized as content of a π-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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 27/76
  • 28. Physical encapsulation of goods in π-containers World standard modular dimensions and fixtures Illustrative potential modular dimensions Y Conceptual design by Benoit Montreuil and Marie-Anne Côté X Z CIRRELT, Université Laval, Québec, Canada, 2012 0,12 m 0,1 m 0,24 m 0,2 m 0,36 m 0,3 m 0,48 m 0,4 m 0,6 m 0,5 m 0,6 m 1,2 m 1,2 m 2,4 m 2,4 m 3,6 m 3,6 m 4,8 m 4,8 m 6m 6m 12 m 12 m Conceptual design illustrating É. Ballot, B. Montreuil, R.D. Meller the dimensional modularity of π-containers The illustrated π-container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 28/76
  • 29. Physically encapsulation of goods in π-containers Easy to compose into composite containers, then to decompose Conceptual design by Benoit Montreuil and Marie-Anne Côté CIRRELT, Université Laval, Québec, Canada, 2012 Conceptual design illustrating the composition functionality of π-containers The illustrated π-container design has a strictly conceptual and functional purpose: it has no prescriptive technical design and engineering intent Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 29/76
  • 30. The spatial impact of modular encapsulation Consumer Product Goods 258 case sizes Company 494 products 268 shelf packages At the case level, there is Using only of modular a net increase of 10% dimensions (<15) Here, no change in the shape of products. The number of products by case is allowed to vary by + or - 10%. At the pallet level, Experiment limited to cases rather than π-containers to focus on modularity 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). Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 30/76
  • 31. 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 Source: guim.fr using locally available objects Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 31/76
  • 32. Digital encapsulation Exploiting as best as possible the capabilities of smart π-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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 32/76
  • 33. 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 Image: http://www.globetracker.biz/GlobeTracker/News.asp of its π-containers and π-systems Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 33/76
  • 34. Interfaces optimized for universal interconnectivity Physical & digital interfaces exploiting the characteristics of π-containers and standardized worldwide Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 34/76
  • 35. Evolve from material to π-container transport, handling & storage means and systems π-containers moving and storage means and systems, A π-container π-movers equipped with innovative technologies and processes with wheels A fork-less lift snapped through exploiting the characteristics of π-containers exploiting its standard to enable their fast, cheap, easy and reliable the snapping and modular interfaces interlocking input, storage, composing, decomposing, functionalities of the π-container monitoring, protection and output through smart, sustainable and seamless π-conveyors automation and human handling In π-stores, contemporary racking can be used, however innovations in storage technologies exploiting the functional characteristics of modular π-containers In π-stores, A highly flexible plug-and-play π-conveyor are bound to be exploited exploiting the standard modular dimensions modular π-containers and interfaces of the π-containers can be stacked as in π-stores 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 35/76
  • 36. 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). Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 36/76
  • 37. Multimodal logistics centers Ocean, sea or river designed for the Physical Internet, enabling seamless, fast, cheap, safe, reliable, distributed, & multimodal transport and deployment of π-containers across the Physical Internet 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 É., 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 37/76
  • 38. Logistics centers designed for the Physical Internet Enabling seamless, fast, cheap, safe, reliable, & distributed, multimodal transport and deployment of π-containers across the Physical Internet Road Hub of π-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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 38/76
  • 39. Physical Internet Protocols Protocols optimized for universal interconnectivity regulating the multi-layer services of the Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 39/76
  • 40. 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 40/76
  • 41. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 41/76
  • 42. Open Performance Monitoring Live open monitoring of really achieved performance of all π-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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 42/76
  • 43. A Global System The Physical Internet is seamlessly applicable everywhere, at any scale Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 43/76
  • 44. 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 Intra-Continental Network Inter-City, Inter-State/Province Network Inter-Continental Worldwide Network Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 44/76
  • 45. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 45/76
  • 46. Aim for webbed reliability and resilience The Physical Internet’s actors, movers, routes, nodes and flowing containers should interact in synergy to guarantee: – The integrity of physical objects encapsulated in π-containers – The physical and informational integrity of π-containers, π-movers, π-routes and π-nodes – The informational integrity of π-actors (humans, software agents) – The robustness of client-focused performance in delivering and storing π-containers. Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 46/76
  • 47. Enabling a Logistics Web The purpose of the Physical Internet from a user perspective Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 47/76
  • 48. 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 48/76
  • 49. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 49/76
  • 50. Enabling an open global mobility web From point-to-point or hub-and-spoke transport to distributed multimodal transport Québec 20 Montréal 20-401 81 Alexandria Bay, US border 90 Syracuse 90 Buffalo 71 Cleveland 70 Columbus 70 Indianapolis 44 St-Louis 44 Springfield Current Proposed Tulsa P2P Distributed 44 Distance travelled one-way: 5030 km 5030 km 40 Oklahoma City Drivers: 1 17 40 Amarillo Trucks: 1 17 40 Albuquerque Trailer: 1 1 40 Flagstaff One-way driving time (h): 48 51+ 40 Needles Return driving time (h): 48+ 51+ Barstow Total time at transit points (h): 0 9 15-10 Total trailer trip time from Quebec to LA (h): 120 60+ Los Angeles Total trailer trip time from LA to Quebec (h): 120+ 60+ Total trailer round trip time (h): 240+ 120+ Transporting a trailer Average driving time per driver (h): 96+ 6 from Quebec to Los Angeles Average trip time per driver (h): 240+ 6,5 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 50/76
  • 51. Enabling an open global mobility web From point-to-point or hub-and-spoke transport to distributed multimodal transport Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 51/76
  • 52. Illustrating Current Logistics Systems A small two-retailer two-manufacturer case 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 52/76
  • 53. The Impact of Exploiting a Mobility Web Here limited to unimodal road transport Current Mobility Web P# : Plant; :Retail store; S# :Private distribution center P# : Plant; : Retail Store; : Open hub : Product flow : Road transport D# : Distribution center Travelled distance: -27% Fuel Consumption: -19% Average delivery time: +2% Maximum delivery time: -36% Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 53/76
  • 54. Exploiting a Physical Internet Enabled Bimodal Mobility Web for the Consumer Goods Industry in France 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 Current flows Physical Internet flows Physical Internet traffic 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 É., B. Montreuil, R. Glardon (2012), Simulation de l’Internet Physique: controbution à la mesure des enjeux et à sa définition, PREDIT Research Report, France, June 2012, 96 p. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 54/76
  • 55. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 55/76
  • 56. Dynamically Deploying Stock Across the Distribution Web for Efficient, Fast & Agile Customer Response Current private system Proposed open system Client order P# : Plant : Retail store S# : Private distribution center O# : Open distribution center Physical flow 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 56/76
  • 57. The Added Value of Exploiting a Distribution Web When Already Exploiting a Mobility Web Mobility Web Mobility Web + Distirbution Web P# : Plant; : Retail Store; : Open hub P# : Plant; : Retail Store; : Open hub D# : Distribution center : Open distribution center Travelled distance: -23% Fuel consumption: -29% Average delivery time to store: -79% Maximum delivery time to store: -71% Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 57/76
  • 58. The Impact of Exploiting a Logistics Web Integrating Mobility and Distribution Webs Private Logistics Networks -42%; -44% -19%; -27% Mobility Web Fuel; Travel -29%; -23% Mobility Web + Distribution Web +16%; +15% [Average; Max] Delivery-Time-to-Store -82%; -74% -79%; -71% Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 58/76
  • 59. Open Global Realization Web 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 59/76
  • 60. 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 Alternative realization network Alternative realization network centered around an integrated exploiting realization web exploiting realization web manufacturing & assembly plant for outsourcing assembly for outsourcing manufacturing & assembly OA OA OA OA OA OA OM OM OA OA OA OA OA OA OM M+A OA M OA OA OA OM OA OA OA OA OM OA OA OA OM OA OA OA OA OA OA OA Current OM Current snapshot snapshot Client M+A Integrated manufacturer + assembler OA Currently exploited open assembler OM Currently exploited open manufacturer M Manufacturer OA Currently unexploited open assembler OM Currently unexploited open manufacturer Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 60/76
  • 61. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 61/76
  • 62. Exploiting a Supply Web Each supplier may for example sign a guaranteed X-time accessibility Tier-2 contract with each client, keeping responsibility for product delivery, deployment and realization Tier-1 Supply Web Tier-0 Realization Web Client has minimal stock Distribution Web Each client has access to a global pool Supplier leverages its clients of π-certified suppliers and vice-versa Mobility Web for deployment pooling Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 62/76
  • 63. A Supply Web with Myriads of π-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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 63/76
  • 64. 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 64/76
  • 65. Physical Internet induced innovation π-Enabling Innovation π-Enabled Innovation Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 65/76
  • 66. Physical Internet Induced Technological π-Enabling Innovation technologies π-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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 66/76
  • 67. Physical Internet induced business model innovation π-Enabling business Innovative business models models for commercializing Physical Internet enabled offers by π-Enabled various parties, business addressing stakeholder revenue, models contracting, liability & insurance What are to be the π-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? Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 67/76
  • 68. Physical Internet Induced Infrastructural Innovation π-Enabling The Physical Internet homogeneity in terms of infrastructures object encapsulation in π-containers should allow a much better utilization of modes & means, π-Enabled thus increasing the capacity of infrastructures infrastructures by the exploitation of standardizations, rationalizations and automations through currently unreachable innovations 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 68/76
  • 69. Realizing the Vision Evolving towards a worldwide Physical Internet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 69/76
  • 70. The Physical Internet Global systemic sustainable vision stimulating and aligning action around the world 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 70/76
  • 71. Physical Internet Implementation Progressive Deployment, Cohabitation and Certification 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 71/76
  • 72. Physical Internet Implementation Progressive Deployment, Cohabitation and Certification 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 72/76
  • 73. Conclusion 1/3 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 Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 73/76
  • 74. Conclusion 2/3 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. Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 74/76
  • 75. Conclusion 3/3 The International Physical Internet Initiative: An Open Innovation Endeavor 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! Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 75/76
  • 76. Questions and comments are welcome, and especially collaborative project avenues Benoit.Montreuil@cirrelt.ulaval.ca www.physicalinternetinitiative.org Twitter: @physicinternet Physical Internet Manifesto, version 1.11 Professor Benoit Montreuil, CIRRELT, Université Laval Québec, 2012-11-19, 76/76