Planning in Transport and Logistics Future Internet Solutions for Improved Integration and Collaboration

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1 Planning in Transport and Logistics Future Internet Solutions for Improved Integration and Collaboration Prof. Dr. Rod Franklin, P.E. Vice President, Product Development Kuehne + Nagel Management AG Adjunct Professor of Logistics Academic Director, Executive Education The Kühne Logistics University

2 Agenda Project Background A Gentle Introduction to the Cloud Project Motivation The FInest Project Objectives, Vision and Requirements High Level Architecture An Example Summary and Questions 2

3 Part I Project Background 3

4 Cloud computing one definition Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider attention. (National Institute for Standards and Technology) 4

5 Key characteristics (NIST) 1. On-demand self service A user can provision computing capabilities as needed automatically without requiring human interaction with each service s provider 2. Broad network access Capabilites are available over the entwork and accessed through standard mechanisms that promote use by any client platform 3. Resource pooling Pooling of provider resources to serve multiple consumers using a «multi-tenant» model 4. Rapid elasticity Resources can be rapidly and flexibly provisioned to scale up or down quickly based on demand 5. Measured service Resource useage is automatically monitored and metered so that users and providers can control and report on use 5

6 Service models 1. Software as a Service (SaaS) software running on a cloud infrastructure that can be used by a consumer and paid for in a «by the drink» manner (e.g., salesforce.com) 2. Platform as a Service (PaaS) tools and frameworks for development and deployment of user developed software on a provider s infrastructure (e.g., force.com and Azure) 3. Infrastructure as a Service (IaaS) tools and frameworks for provisioning processing, storage, networking and other computing resources to handle user software requirements 6

7 Types of deployment models Private clouds cloud infrastructure is used by only one organization Community clouds cloud infrastructure is shared by several organizations with similar needs Public clouds cloud infrastructure is provided to anyone willing to pay for it (e.g., Amazon EC2) Hybrid clouds two or more of the above cloud types are operated in a connected manner to enable rapid scaling based on demand 7

8 So why the cloud? Turns fixed costs into variable costs Provides an «all you can eat» approach to demand management Provides infrastructure providers with scale economies for hardware and software Facilitates access from anywhere by any device Provides «immediate» access to compute resources and software Provides seamless access to new technologies without infrastructure training and investment 8

9 Why cloud logistics? Transport and Logistics operations involve multiple service providers Forwarder Agents Carriers Transport and Logistics Business Networks Several stakeholders involved that need to collaborate (exchange info, communicate, and coordinate activities) Shipper Banks Desired End-2-End Visibility New Services & Apps Collaboration & Communication High-Quality Customer Applications Insurances Customs Authorities Ports Consignee Large, growing, and evolving industries, often international, highly dynamic environments Highly fragmented IT landscapes Challenges (due to insufficient ICT solutions) Limited Visibility of processes and critical events; hampers business efficiency and effectiveness Closed supply chains hinder agile interorganizational information exchange, collaboration, and access for SMEs Business requires that ICT solutions provide: Highly manual processes, lack of standards, legal and governmental regulations ( tons of paper ) seamless B2B Collaboration services (information exchange, communication, coordination of activities) rapid and easy development of customized solutions at minimal costs quick formation and evolution of open business networks 9

10 Collaboration in the cloud The Problem: current ICT approaches hamper Collaborative Business Networks Collaborative Business Networks := networks / supply chains of several organizations (companies, authorities,..) that need to work together to do business (exchange information, communicate, coordinate activities); various industries and domains, e.g.: Production (Food, Goods,..), Transportation and Logistics, etc. Business efficiency and effectiveness of individual stakeholders hampered by existing ICT support for inter-organizational collaboration(mostly manual by Phone / Fax / ; due to high fragmentation, etc.) Domain Users Require: a novel ICT infrastructure allowing for seamless B2B collaboration, highquality IT enabled solutions at minimal time and costs, and evolution of dynamic and open business networks The Solution: Cloud Collaboration, a Future Internet Enabled Business Model for Business Collaboration in the Cloud Main features: easy and seamless real-time business collaboration, high-quality solutions based on cloud services and apps, all-you-need-in-1-place, social networking for business networks Business Model: facilitate future business ecosystems with benefits for Consumers / Users: easy and sophisticated collaboration with business partners based on high-quality solutions that are rapidly developed at minimal costs and that overcome current deficiencies ICT Providers: pathway to future business software on the cloud 10

11 Part II The FInest Project 11

12 Project objectives The FInest Platform provides a B2B Collaboration Space in the Cloud enabling the efficient and effective management of transport and logistics processes based on the collaboration of business partners (information exchange, communication, coordination) Business benefits for users (Transport and Logistics Stakeholders) o o o Promote services and find business partners Utilize available on-demand solutions for business execution management; for this, the FInest Core Modules (BCM, EPM, TPM, ECM) provide ICT solutions for essential tasks Rapidly develop customized ICT solutions for individual business purposes at minimal cost Facilitate a business ecosystem of users and service providers o o o IT Service and Solution Providerscan offer / distribute novel ICT solutions via the platform Platform Operator(s)can operate the platform, serving as the broker between users (Transport and Logistics Stakeholders) External Value Added Service Providerscan develop novel services, solutions, and apps and distribute them through the platform Based on a next generation (business) software cloud provisioning model o o Building on top of FI-WARE (EU Future Internet Platform as a Service Initiative) Platform concept and technologies are also applicable to other domains 12

13 The FInest concept 13

14 Benefits of the concept For Consumers (i.e., Stakeholders working in Collaborative Business Networks) Substantially higher business efficiency and effectiveness by reduction of manual efforts Facilitates the optimization of current business processes (internal + partner interaction) Enables novel business opportunities in open and evolving business networks Cost efficiencyimprovement through reduced development time for customized applications Front End Customized End-User Cockpits Business Partner & Network Mgt. multi-device & ubiq. Access Security, Privacy, Trust Services & Apps Integration Store & Financial Bus. System & Standards Interaction & Interoperability Data Int. & Mediation Re-use, Config., Mash- Up External Systems ICT Providers: infrastructure and insights for profitable On-Demand business Software and Solution Providers: infrastructure for offering existing and new solutions in the Cloud Cloud Operators: new infrastructure and business model for successful operation of Cloud Systems Value Added Service Providers: novel business opportunities (e.g. for App Developers, Consultants,..) 14

15 Design Parameters Module and platform design requirements No Requirement Desired Capability 1 Pre-planning and cost estimation plan with live data and estimating costs automatically based on contracts / offers 2 Collaboration and communication seamlessintegration of business partners without complex integration projects, including easy data sharing 3 Planning and re-planning planning and re- planning tools to make quick and costeffective decision in case of process deviation even on short notice 4 Resource management effective planning to utilize (optimize) capacities, workload and time, schedules,etc. 5 Monitoring of operations through out the logistics process operational monitoring to crosscheck planned and actual being able to react quickly in case of deviations 6 Visibility of shipments through out the logistics process Real-time overview on progress and deviations of overall process, notifications and individualized views for each stakeholder Basis for design of components (capabilities and interfaces) 15

16 High Level Architecture Front End Customizable Web Portal (using Gadgets á la igoogle) Access-based / Firewalls for Gadgets E-Contracting Module (ECM) Transport Planning Module (TPM) Back End (Re-)planning trigger Transport execution plan Final status & data of completed transport process List of matching contract s (long-/short-term) Access-control to legacy systems Messaging (SMS, , ) Business Collaboration Module (BCM) Artifact-centric security for BCOs Information about actual bookings and booking changes Retrieval of offers and demands on spotmarketplaces Notifications and request for actions Events about transport process Service-based System Integration User-and Identity Management & Access- Control Situations to monitor / rules (e.g., ETA of transport leg) Event Processing Module (EPM) Events (from IoS & Legacy: EDI etc.) Secure Network Connections IoSand IoT Monitoring Events (from IoT) Profiles of potential business partners ( dating ;-) Detected Situation (e.g., SLA violation / timing violation/ proof of delivery) Core Modules Secure Storage & Backup

17 FInest An Illustrative Example Real-world logistics process (Use Case 1) FInest Platform BCM internal representation create update BCM provides global view of overall process transport plan contract contract info. status events to monitor events TPM ECM EPM Based on the real situation, the TPM plans the transport and creates a plan BCM imports this plan and converts it to the internal representation, based on Collaboration Objects Based on the plan, BCM registers events to monitor (e.g., ship arrival in Ålesund Involved Stakeholders Port of Ålesund T&F Authorities NCL Each CO represents a certain part of the log. process Stakeholders can only access particular data EPM events are used to update the internal model (e.g., ship arrived) Stakeholders access this information to get up-to-date view on the logistics process Encapsulation in Collaboration Objects ensures non-disclosure of 17 confidential data

18 Part III Summary and Questions 18

19 Summary Cloud computing offers a potentially game changing approach to managing highly distributed business operations B2B collaboration services based on the cloud paradigm can overcome many inefficiencies in distributed supply chain operations The FInestproject builds on the cloud computing paradigm and emerging collaboration models to implement a novel B2B collaboration service for distributed transport and logistics operations management 19

20

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