The Physical Internet from the flow of information to physical flows. Sergio Barbarino P&G ALICE Executive Board

Transcription

1 The Physical Internet from the flow of information to physical flows Sergio Barbarino P&G ALICE Executive Board

2 A Company of Leading Brands

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4 CONTENT 1) Introduction. 2) WHY do we need the Physical Internet. 3) HOW do we get to the Physical Internet. 4) WHAT has been done on the Physical Internet.

5 WHY DO WE NEED THE PHYSICAL INTERNET?

6 LOGISTICS COST VS TOTAL PRODUCT COST Efficiency, trends and innovations Trends Flow exponential growth (even if they will not reach the sky) Shipments fragmentation Shipment median weight divided by 4,5 from 160 kg in 1988 to 30 kg in 2004 Source IFSTTAR 2013 Source: Centre for sustainable transportation Canada A no cost illusion for the consumers Expectations: better services and economic support to growth How to take advantage of economy of scale when each shipment are going smaller? How to mitigate the environmental effects? Decoupling / economic activity? How to cope with the demand and without a new physical infrastructure?

7 billion euro ASSET UTILIZATION Transport inefficiency is a 160 Billions loss and 1.3% of EU27 CO2 footprint!!! 100% 10 YEARS: ZERO IMPROVEMENT ON LOAD FACTORS % % % 60% 50% 40% 30% 20% %Road efficiency %Load Factor %empty truck (km) % 20 0% FRANS CRUIJSSEN - CO3 PROJECT 0

8 WASTE IN THE SUPPLY CHAIN

9 THE LAST MILE - BUT NOT THE LEAST CO 2 emitted by supermarket shopping Consumer trip (transport between home & store) Packaging (store - shopping bag) Retailer operations (store/ DC /transport) Manufacturer operations (DC/ transport) Source: LCA study, P. van Loon, J. Dewaele, L. Deketele - Heriot-Watt University / P&G 30 items/shopping basket - UK B&M supermarket - typical (average) travel behavior (distance, transport mode)

10 HOW DO WE FIX THIS? THE PHYSICAL INTERNET!

11 The future belongs to those who believe in the beauty of their dreams. Eleanor Roosevelt When you make a choice, you change the future. Deepak Chopra The best way to predict your future is to create it Abraham Lincoln

12 A NEW PARADIGM - THE PHYSICAL INTERNET 12

13 THE PHYSICAL INTERNET BUILDING BLOCKS Source: Montreuil (2012). π-concept Positioning the Physical Internet. 13

14 Key attributes Vision THE PHYSICAL INTERNET BUILDING BLOCKS create a more efficient, sustainable supply chain by using new modular load units & smoother supply chain interfaces New modular load unit concept Smoother interfaces along the supply chain Modular dimensions from cargo container size to tiny Modular box system Optimised space Open networks & pooled resources Less network complexity Easy to handle, transport, store, interlock, load, construct, dismantle & decompose Smart tag enabled + sensors Standard sizes & dimensions Unit loads along entire supply chain Common communication, planning & monitoring Interconnected comms Modular logistics units New handling & storage technologies Co-operative logistics networks Potential PI savings: 22% freight km 50% CO 2 15% efficiency 20% loading Smooth interfaces along the supply chain - Within inter plant operations - During trans-shipment Save CO 2

15 A generalization of containerization THE EXPECTED IMPACT Montreuil, B., Meller, R. D. and Ballot, E. (2010). Towards a Physical Internet : the impact on logistics facilities and material handling systems design and innovation. In: AL., K. G. E. (ed.) Progress in Material Handling Research. Material Handling Industry of America 15

16 THE EXPECTED IMPACT The benefit of standard: the maritime container example Cost evolution Source The Box, HAROPA & JB Hunt 16

17 WHAT IS BEING DONE FOR THE PHYSICAL INTERNET?

18 A European perspective: ALICE ETP Create a framework for a more consistent approach of logistics issues The goal Efficiency gain by a factor 2 or 3! A more resilient network A better use of infrastructure and means A call for innovation Obstacles Not urgent Too many standards New business models A lot of investments in logistics assets E. Ballot 1st April