A talk (40-70 mins) on how the freight transport sector needs to face up to the megatrands of this age, and how these can be addressed partly through digital development.
Real-time data collection, processing and exploitation are discussed, as well as Big data.
It's not business as usual.
This is the internet happening to freight transport.
There is no "usual" anymore.
Get used to it.
How to Get Started in Social Media for Art League City
Real-time (Big) Data in Freight Transport - Meeting the global trends
1. REAL-TIME (BIG) DATA IN FREIGHT TRANSPORT -
MEETING THE GLOBAL TRENDS
Per Olof Arnäs
Chalmers University of Technology
@Dr_PO
per-olof.arnas@chalmers.se
about.me/perolofarnas
Slides: slideshare.net/poar
Image: www.simonstalenhag.se
2. Northern LEAD
Logistics Research Centre
Founded by:
Chalmers University of Technology
University of Gothenburg
Logistics and Transport Society LTS
3. Tomorrow’s logistics. We are finding the answers.
Around 70 researchers
Research centre for
sustainable logistics
solutions
Five core research
groups
Organises, facilitates,
disseminates highly relevant
logistics research
Collaboration between
Chalmers and University
of Gothenburg
4. Professors 10
Visiting Professors 6
Associate Professors 5
Post docs 6
Faculty 14
PhD students 32
Total 73
Five core
research groups
Physical
Distribution
Production
Logistics
Industrial marketing
& purchasing
Logistics &
Transport
Optimization
5. Thought
leadership
through
high quality
research
and
innovation
Challenges
and trends
Outcomes for
policy and business
Volatility and risk
Demographic
changes
Complexity and
structural
flexibility
Resource
limitations
Manufacturing
and retail
revolution
Environmental
impact
Focused areas
Urban Transport
Long Distance Transport
Purchasing of
transport
Logistics and Production Networks
Information,
planning and
control
Measurements
and measuring
Service
development in
networks
Resource
utilisation
Intermodality
6. Doing some Sisyphus work by Kalexanderson on Flickr (CC-BY,NC,SA)
5
GLOBAL
TRENDS
Source: PWC (google: pwc megatrends 2014)
7. Crowd by James Cridland on Flickr (CC-BY)
Megatrend #1
Demographic
and social
change
Source: PWC (google: pwc megatrends 2014)
8. Four Storms And A Twister by JD Hancock on Flickr (CC-BY)
Megatrend #2
Shift in
economic
power
Source: PWC (google: pwc megatrends 2014)
9. Boston Downtown at Night by Werner Kunz on Flickr (CC-BY,NC,SA)
Megatrend #3
Rapid
urbanisation
Source: PWC (google: pwc megatrends 2014)
10. ¡Rayos! by José Eugenio Gómez Rodríguez on Flickr (CC-BY,NC,SA)
Megatrend #4
Climate
change and
resource
scarcity
Source: PWC (google: pwc megatrends 2014)
14. Stage Coach Wheel by arbyreed on Flickr
Development of transportation
technology has been
fairly linear
…for the last 5500 years
15. We are in the middle of a gigantic
exponential development curve
beginning
16. A new global eco system
where new types of,
knowledge based,
industries compete with
traditional ones
http://jaysimons.deviantart.com/art/Map-of-the-Internet-1-0-427143215
17. Startups don’t compete with airlines...
by purchasing a bunch of planes
hiring a bunch of pilots
and locking up a bunch of terminals at airports.
Quote: bryce.vc/post/18404303850/the-problem-with-innovation
Image: Connecting the community, my Twitter strategy, and American Airlines at DFW by Trey Ratcliff on Flickr (CC-BY,NC,SA)
18. Startups compete with airlines by
inventing videoconferencing.
Startups don’t compete with airlines...
by purchasing a bunch of planes
hiring a bunch of pilots
and locking up a bunch of terminals at airports.
Quote: bryce.vc/post/18404303850/the-problem-with-innovation
Image: Connecting the community, my Twitter strategy, and American Airlines at DFW by Trey Ratcliff on Flickr (CC-BY,NC,SA)
21. Source: European Commission, EU Transport in Figures, Statistical Pocketbook 2012
Demand for
transport is
coupled with
economic
development
22. Passenger cars dominate modal split
Air transport is the fastest
growing mode (until 2007) Road and sea transport are
the fastest growing modes in
freight transport
Source: European
Commission, EU
Transport in Figures,
Statistical
Pocketbook 2012
23. Increasing freight transport demand
http://www.eea.europa.eu/data-and-maps/figures/freight-transport-activity-growth-for-eu-25
EU-25
24. Final energy consumption, EU-28, 2012
(% of total, based on tonnes of oil equivalent)
Source: Eurostat
29. RESOURCE UTILISATION
LOW
Source: Kent Lumsden
Safety imbalance
Variation in resource demand
Chain imbalance
Caused by the chain
Technological imbalance
E.g. mismatch in equipment
Operational imbalance
Goods and resource flow not compatible
Structural imbalance
Uneven transport demand
30. RESOURCE UTILISATION
LOW
Source: Kent Lumsden
Safety imbalance
Variation in resource demand
Chain imbalance
Caused by the chain
Technological imbalance
E.g. mismatch in equipment
Operational imbalance
Goods and resource flow not compatible
Structural imbalance
Uneven transport demand
Several of these
imbalances can be
reduced by
reducing
uncertainties
31. But the biggest problem in
transportation is time.
There is not enough of it.
Ever.
InSearchOfLostTimebybogenfreundonFlickr
32. The transport
industry does not like
real-time decisions.
At all.
Batch-handling
Zip codes Zones
Time-tables
DSC_9073.jpg by James England on Flickr (CC-BY)
33. Strategic Tactical Operational Predictive
Time horizons
Freight industry
Most (preferably all)
decisions in the
transportation industry are
made here. At the latest.
Uninformed,
ad-hoc, and
probably non
optimal,
decisions
Science
fiction
34. January February March April May June July August September October November December
10%
Nov 25
When do we start generating profit?
Profit margin =
Sales - Cost
Sales
35. January February March April May June July August September October November December
10%
Nov 25
2%
Dec 25
When do we start generating profit?
Profit margin =
Sales - Cost
Sales
36. January February March April May June July August September October November December
10%
Nov 25
1%
Dec 29
2%
Dec 25
When do we start generating profit?
Profit margin =
Sales - Cost
Sales
37.
38. Basic
data
From/To/What/When
Owner:
the
customer
Resource
alloca9on
What
vehicle?
Owner:
Traffic
controller
Cargo
informa9on
Loaded
amount
Owner:
Supplier
Proof
of
Delivery
Time/date/signature
Owner:
Driver
Pricing
Owner:
Financial
dept.
Enough
informa9on
to
create
invoice
All
of
these
steps
cost
money!
From
order
to
invoice
(transporta9on
company)
39. An
increase
in
the
number
of
orders
lead
to
increased
cost
Goal:
De-‐couple
the
dependecy
between
administa9ve
cost
and
order
volume
Number
of
orders
per
year
Total
cost
for
administra9on
of
all
orders
Handle
excep9ons
–
not
transac9ons!
40. Image: Alain Delorme, alaindelorme.com
The current
model is focused
on economy of
scale and
standardization
42. Process
improvement
Service
developm
entInfrastructure
developm
ent
Customer
controls last
mile
Faster and
better
returns
Better
delivery
experience
Secure
identification on
pickup/delivery
Distribution
of food
Home
delivery
Support
companies that
want to add E-
commerce to
their business
Collect-in-store
Local
same-day
delivery
Improved
delivery note
Delivery and
pickup during
weekends
Marketing of
the E-channel
Sustainable and
climate friendly
3PL targeted at E-
commerce
Faster, more reliable
and secure
deliveries in Europe
Better
infrastructure on
consumer side
Better
security
Source: Svensk Digital Handel 2014 Bo Zetterqvist
Areas of development
for logistics
companies in relation
to e-commerce
43. Process
improvement
Service
developm
entInfrastructure
developm
ent
Customer
controls
last mile
Faster and
better
returns
Better
delivery
experience
Secure
identification on
pickup/delivery
Distribution
of food
Home
delivery
Support
companies that
want to add E-
commerce to
their business
Collect-in-store
Local
same-day
delivery
Improved
delivery note
Delivery and
pickup during
weekends
Marketing of
the E-channel
Sustainable
and climate
friendly
3PL targeted at
E-commerce
Faster, more
reliable and
secure deliveries
in Europe
Better
infrastructure on
consumer side
Better
security
Source: Svensk Digital Handel 2014 Bo Zetterqvist
Areas of development
for logistics
companies in relation
to e-commerce
Digital
development
needed in
freight
transport
44. Customer
controls
last mile
Faster
and better
returns
Better
delivery
experience
Secure
identification
on pickup/
delivery
Collect-in-
store
Improved
delivery note
Sustainable
and climate
friendly
3PL targeted at
E-commerce
Faster, more
reliable and
secure
deliveries in
Europe
Better
security
Source: Svensk Digital Handel 2014 Bo Zetterqvist
Digital development needed in freight transport
Process improvement
Use ICT to make the system more efficient
Real-time decision making, footprinting, better digital interaction between stakeholders
Service development
Use ICT to create new services
Digital information enables new business models
Infrastructure development
Use ICT to interact with infrastructure
Location Based Intelligence etc.
45. Customer
controls
last mile
Faster
and better
returns
Better
delivery
experience
Secure
identification
on pickup/
delivery
Collect-in-
store
Improved
delivery note
Sustainable
and climate
friendly
3PL targeted at
E-commerce
Faster, more
reliable and
secure
deliveries in
Europe
Better
security
Source: Svensk Digital Handel 2014 Bo Zetterqvist
Digital development needed in freight transport
Process improvement
Use ICT to make the system more efficient
Real-time decision making, footprinting, better digital interaction between stakeholders
Service development
Use ICT to create new services
Digital information enables new business models
Infrastructure development
Use ICT to interact with infrastructure
Location Based Intelligence etc.
The freight industry has work to do…
47. Gartners Hype Cycle for Emerging Technologies
Augmenting
humans with
technology
Machines
replacing
humans
Humans and
machines
working
alongside each
other
Machines
better
understanding
humans and
the
environment
Humans better
understanding
machines
Machines and
humans
becoming
smarter
52. Business processes Infrastructure
Paperbased
Phone
Papers
Road
signs
A
nalogue
tools
R
D
S
M
onitorfuel
cosnum
ption
Digitization version 0 0.5 1.0 1.5 2.0
E-mail
Fax
TMS-
systems
Excel
Route
planning
G
PS
fornavigation
Electronically
generated
freightdocum
ents
Barcodes
RFID-tags
Simple order handling
Advanced order
handling
Openinterface
W
eb
based
UI
Platform
based
system
s
Hardware-
oriented
Datacollection
systems
(proprietary)
Communicationwith
vehicles
E-invoice
W
eb
based
booking
Route
optimisation
Thesocialweb
Openconnectivity
Integrated
prognosis
Data collection
systems (open)
Tolling
system
s
Webservices with
traffic data
Dynamic
routing
systems
Performance
BasedaccessPerformanceBasedaccess
Mashups
Multipledata
sources
Probedata
Individual
routing
inform
ation
Platooning
Platooning
Exceptions
handling
Smartgoods
Manual
Computers
Software
Functions
Distributed
decision
making
G
oods
as
bi-
directional
hyperlink
Paperbased
CC-BY Per Olof Arnäs, Chalmers
Goods Vehicle
Barcodes
RFID
Sensors
ERP systems
TMS systems
E-invoices
Cloudbased
services
Order handling
Driver support
Vehicle
economics
RDS-TMC
Road taxes
Active traffic
support
Predictive
m
aintenance
2014-10-14
54. The Action of New York City by
Trey Ratcliff on Flickr (CC-BY,NC,SA)
Need for speed
Data collection
Dataprocessing
Data
exploitation
55. En la cima! by Alejandro Juárez on Flickr (CC-BY)
3 mountaintops to climb…
56. En la cima! by Alejandro Juárez on Flickr (CC-BY)
3 data types
Mountaintop #1
Collection of data in real-time
Fixed Historical Snapshot
57. En la cima! by Alejandro Juárez on Flickr (CC-BY)
Mountaintop #1
Collection of data in real-time
5 data domains
Vehicle CargoDriver Company
Infrastructure/
facility
at least…
58. Length
Weight
Width
Height
Capacity
+ other PBS-criteria
Emissions
Fuel consumption
Route
Position
Speed
Direction
Weight
Origin
Destination
Accepted ETA
Temperature
+ other state variables
Temperature + other state
variables
Education/training
Speed (ISA)
Rest/break schedule
Traffic behaviour
Belt usage
Alco lock history
Schedule status (time to
next break etc.)
Contracts/
agreements
Previous interactions Backoffice support
Fixed Historical Snapshot
Vehicle
Cargo
Driver
Company
Infrastructure
/facility
Map
+ fixed data layers
Traffic history
Current traffic
Queue
Availability
DATA MATRIX
61. Mountaintop #3
Exploiting data in real-time
En la cima! by Alejandro Juárez on Flickr (CC-BY)
Connected. 362/365 by AndYaDontStop
on Flickr (CC-BY)
Lisa for I/O Keynote by Max Braun on
Flickr (CC-BY)
Fulham-Manchester United
24-02-2007 by vuhlser on Flickr (CC-
BY)
71. Big data in freight
transport
Film by Foursquare. Google: checkins foursquare
72. ”Fast Up-and-Coming
Movers Toward the Peak
Are Fueled by Digital
Business and Payments”
”…the market has settled
into a reasonable set of
approaches, and the new
technologies and practices
are additive to existing
solutions”
(regarding the decline of Big data on the curve)
Gartner, August 2014
Gartners Hype Cycle for Emerging Technologies
74. 2011 2013 2015
”Big data is an all-
encompassing term for
any collection of data sets
so large and complex that
it becomes difficult to
process using on-hand
data management tools or
traditional data
processing applications.”
- Wikipedia
2015
75. 892 by benmschmidt on Flickr (C)19th century shipping visualized through the logs of Matthew Fontaine Maury (1806-1873), US Navy
Shipping
movements in
the 19th century
80. Human resources
Reduction in driver
turnover, driver
assignment, using
sentiment data
analysis
Real-time capacity
availability
Inventory
management
Examples of applications in freight
(Waller and Fawcett, 2013)
Transportation
management
Optimal routing, taking
into account weather,
traffic congestion, and
driver characteristics
Time of delivery,
factoring in weather,
driver characteristics,
time of day and date
Forecasting
Waller, M. A. and Fawcett, S. E. (2013), Data Science, Predictive Analytics, and Big Data: A Revolution That Will
Transform Supply Chain Design and Management. JOURNAL OF BUSINESS LOGISTICS, 34: 77–84
89. 7Big Data Best Practice Across Industries
Usage of data in order to:
Increase Level of
Transparency
Optimize Resource
Consumption
Improve Process Quality
and Performance
Increase customers
loyalty and retention
Performing precise
customer segmentation
and targeting
Optimize customer
interaction and service
Expanding revenue
streams from existing
products
Creating new revenue
streams from entirely
new (data) products
Exploit data for: Capitalize on data by:
New
Business Models
Customer
Experience
Operational
Efficiency
Use data to:
• Increase level of
transparency
• Optimize resource
consumption
• Improve process quality
and performance
Exploit data to:
• Increase customer
loyalty and retention
• Perform precise customer
segmentation and targeting
• Optimize customer interaction
and service
Capitalize on data by:
• Expanding revenue streams
from existing products
• Creating new revenue
streams from entirely new
(data) products
New Business ModelsCustomer ExperienceOperational Efficiency
Figure 4: Value dimensions for Big Data use cases; Source: DPDHL / Detecon
DHL 2013: ”Big Data in Logistics”
90. Domain
knowledge
critical!
See for instance: Waller, M. A. and Fawcett, S. E. (2013), Data
Science, Predictive Analytics, and Big Data: A Revolution
That Will Transform Supply Chain Design and Management.
JOURNAL OF BUSINESS LOGISTICS, 34: 77–84
Data scientists -
the new superstars
"Data Science Venn Diagram" by Drew Conway - Own work. Licensed under Creative Commons Attribution-
Share Alike 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/
File:Data_Science_Venn_Diagram.png#mediaviewer/File:Data_Science_Venn_Diagram.png
91. smile! by Judy van der Velden (CC-BY,NC,SA)
Speculative
shipping
http://www.scdigest.com/ontarget/
14-01-21-1.php?cid=7767
92. http://www.scdigest.com/ontarget/
14-01-21-1.php?cid=7767
Speculative
shipping Package item(s) as a package for
eventual shipment to a delivery address
Associate unique ID with package
Select destination geographic area for
package
Ship package to selected distribution
geographic area without completely
specifying delivery address
Orders
satisfied by item(s)
received?
Package
redirected?
Determine package location
Convey delivery address, package ID to
delivery location
Assign delivery address to package
Deliver package to delivery address
Convey indication of new destination
geographic area and package ID to
current location
Yes
Yes
No
No
smile! by Judy van der Velden (CC-BY,NC,SA)
99. Private Property by Nathan O'Nions on Flickr (CC-BY)
(Freight) companies want to share
as little data as possible,
with as little friction as possible,
to get the highest utility possible
101. The Challenger by Martín Vinacur on Flickr (CC-BY)
Not all ideas age with grace
102. The Challenger by Martín Vinacur on Flickr (CC-BY)
Not everyone will want to
adopt new things…
103. Customer
controls
last mile
Faster
and better
returns
Better
delivery
experience
Secure
identification
on pickup/
delivery
Collect-in-
store
Improved
delivery note
Sustainable
and climate
friendly
3PL targeted at
E-commerce
Faster, more
reliable and
secure
deliveries in
Europe
Better
security
Source: Svensk Digital Handel 2014 Bo Zetterqvist
Digital development needed in freight transport
Process improvement
Use ICT to make the system more efficient
Real-time decision making, footprinting, better digital interaction between stakeholders
Service development
Use ICT to create new services
Digital information enables new business models
Infrastructure development
Use ICT to interact with infrastructure
Location Based Intelligence etc.
104. Customer
controls
last mile
Faster
and better
returns
Better
delivery
experience
Secure
identification
on pickup/
delivery
Collect-in-
store
Improved
delivery note
Sustainable
and climate
friendly
3PL targeted at
E-commerce
Faster, more
reliable and
secure
deliveries in
Europe
Better
security
Source: Svensk Digital Handel 2014 Bo Zetterqvist
Digital development needed in freight transport
Process improvement
Use ICT to make the system more efficient
Real-time decision making, footprinting, better digital interaction between stakeholders
Service development
Use ICT to create new services
Digital information enables new business models
Infrastructure development
Use ICT to interact with infrastructure
Location Based Intelligence etc.
The freight industry has work to do…
107. It’s not business as usual.
This is the internet
happening to freight
transport.
There is no ’usual’
anymore.
Hello Kitty Darth Vader by JD Hancock on Flickr (CC-BY)
108. It’s not business as usual.
Get used to it.
This is the internet
happening to freight
transport.
There is no ’usual’
anymore.
Hello Kitty Darth Vader by JD Hancock on Flickr (CC-BY)
109.
110. REAL-TIME (BIG) DATA IN FREIGHT TRANSPORT -
MEETING THE GLOBAL TRENDS
Per Olof Arnäs
Chalmers University of Technology
@Dr_PO
per-olof.arnas@chalmers.se
about.me/perolofarnas
Slides: slideshare.net/poar
Image: www.simonstalenhag.se