A talk about the digitization of the freight transport industry. Technologies like 3D printing, wearable tech and big data are revolutionizing the industry.
We are building The Matrix in the transport industry
1. Digitization of the
transport industry
We are building The Matrix
!
!
Per Olof Arnäs
Chalmers
@Dr_PO
per-olof.arnas@chalmers.se
about.me/perolofarnas
4. …public
CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
Traffic Jam by Giorgio Minguzzi on Flickr
5. …analogue
542 miles by Jason on Flickr
CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
6. CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
7. 1989
CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
8. 1989
Map on the wall with pushpins
Delivery notes
(3 carbon sheets)
Radio
Telephone
Pens in various
colours
CC-‐BY
Per
Olof
Arnäs
Prices, phone
numbers etc.
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
Calculator
Cardfile of
customers, tank
sizes etc.
9. 1989
Ca 100 customers
in west Sweden
6 tanker trucks
(7 partitions per vehicle)
Products:
Gasoline 95
Gasoline 96
Gasoline 98
Diesel
Diesel, colored
8-10 Pricing (yesterday’s orders)
10-12 Call and receive tomorrow’s orders
13-17 Planning
A FULL TIME JOB!
CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
10. The Internet first became available for
Swedish consumers around 1993
+
=
A (bad and expensive) mix between
Teletext and the Yellow Pages
Not very pretty
Few people with
computers
11. 15 years later, in 2008, Google Flu
Trends was launched
Based on what
people google and
where their
computer is located
www.google.org
Ten days ahead
of the official flu
tracker
12. How
will
we
use
the
technology
in
10
years?
lm
a
st
o
We have no idea.
!
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
13. How
will
we
use
the
technology
in
10
years?
lm
a
st
o
We have no idea.
!
...and neither does she,
but she will be dissatisfied
with stuff that we think are
pure science fiction and
almost magic.
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
18. A new global eco system where new
types of, knowledge based, industries
compete with traditional ones
19. Startups don’t
compete with airlines...
by purchasing a bunch of
hiring a bunch of
and locking up a bunch of
planes
pilots
terminals at airports.
Miniature Airport by disparkys on Flickr
http://bryce.vc/post/18404303850/the-problem-with-innovation
20. Startups don’t
compete with airlines...
by purchasing a bunch of
hiring a bunch of
and locking up a bunch of
planes
pilots
terminals at airports.
Startups compete with airlines by
inventing videoconferencing.
Miniature Airport by disparkys on Flickr (CC-BY,SA)
http://bryce.vc/post/18404303850/the-problem-with-innovation
22. CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
30. Digitization fronts
Goods
Vehicle
Order handling
Driver support
Vehicle economics
Barcodes
RFID
Sensors
ERP systems
TMS systems
E-invoices
Cloudbased
services
RDS-TMC
Road taxes
Active traffic support
Business
process
Infrastructure
31. ata
s
gn
be d
si
d
Ro
a
S
Pro
ed
as
rb
Pa
pe
D
R
Route
optimisat
ion
ing
n
too
Pla
2.0
M
Mu ash
up
lti
so ple d s
urc at
es a
na
vi
fo
r
PS
G
es
rvic ata
se
Web raf fic d
t
with
ng
lli ms
To ste
sy
Dy
n
ro am
uti ic
sy
ste ng
ms
ga
tio
l
Ex
c
ha eptio
nd
lin ns
g
1.5
n
RF
ID tag
s
ec
fr tro
ei n
gh ic
t d ally
oc g
um en
e
Pa
en ra
pe
ts ted
rb
as
ed
Di
s
de tribu
ma cisio ted
kin n
g
Sma
El
ce
Ex
W
e
bo b ba
ok se
in d
g
nce
Performa
cess
Based ac
ail
pl Rou
an te
ni
ng
g
e
gu
lo ls
na oo
t
A
E-m
STM ms
te
sys
Fax
e
oic
inv
E-
ity
tiv
ec
nn
co
en
Op
eb
cial w
ion
icat
mun les
Com h vehic
wit
o
The s
In
pr teg
og ra
no ted
si
s
1.0
ni n
0.5
too
Pla
e
on rs
Ph ape
P
0
n
ctio
olle
a c tems )
y
Dat
sys rietar
op
( pr
are
rdw d
Ha iente
or
Manual
UI
Computers
d
se
Sim
p
han le ord
dlin er
g
Digitization version
Business
processes
Pl
a
ba tfo
sy s r
st ed m
em
s
B
Vehicle
Perfor
Based mance
acces
s
Software
l
ue n
r f tio
ito p
on um
M sn
co
rt g
ood
s
Adv
anc
han ed ord
dlin
er
g
ba
es
d
co
ar
co Da
sy llec ta
s t
(o tem ion
pe s
n)
eb
W
bi
s al
a
ds tion nk
oo c li
G ire er
d yp
h
Goods
O
int pen
erf
ac
e
Functions
l
ua
id
iv ting ion
d
In rou at
rm
fo
in
Infra-
structure
CC-BY Per Olof Arnäs, Chalmers
32. What happens
when access to
real-time data
increases?
Strategic
Tactical
Operational
Prognosis
Infrastructure
Business
processes
Vehicles
Goods
not quite clear on the concept by woodleywonderworks on Flickr (CC-BY)
44. Association is done in realtime and is
reported instantly
The shipment is
associated with Vehicle 18
and Shipment 2345
If you subscribe to
one, you subscribe
to all of them
45. But… does this mean that all pallets will
have onboard computers now?
46. But… does this mean that all pallets will
have onboard computers now?
No, of course not.
47. But… does this mean that all pallets will
have onboard computers now?
No, of course not.
It is enough that it has a digitally
readable identity, like a RFID tag
48. But… does this mean that all pallets will
have onboard computers now?
No, of course not.
It is enough that it has a digitally
readable identity, like a RFID tag
All logic is located in the reader
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by mikael altemark on Flickr
SETI by Paulo Alegria on Flickr
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Vehic
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V
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Operational data, not secret
Secret data
PubSub
This is not a social media megaphone
by mikael altemark on Flickr
SETI by Paulo Alegria on Flickr
Publish
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SETI by Paulo Alegria on Flickr
New data
Combine
Operational data, not secret
Secret data
PubSub
This is not a social media megaphone
by mikael altemark on Flickr
Subscribe
55. Dialogue between vehicle
and infrastructure
Access control
Journey
planning data
CC-‐BY
Per
Olof
Arnäs
Probe data
Graphic Conversation by Marc Wathieu on Flickr
57. Increase efficiency
by sharing data
Bottle-neck planning
Optimize infrastructure use
CC-‐BY
Per
Olof
Arnäs
Matchmaking
Optimize vehicle use
58. Gartners Hype Cycle for Emerging Technologies
Augmenting
humans with
technology
Machines
better
understanding
humans and
the
environment
Machines
replacing
humans
Humans and
machines
working
alongside each
other
Humans better
understanding
machines
Machines and
humans
becoming
smarter
Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515
59. Gartners Hype Cycle for Emerging Technologies
Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515
60. Gartners Hype Cycle for Emerging Technologies
Transportation/
logistics?
?
Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515
61. bi
s al
a
ds tion nk
oo c li
G ire er
d yp
h
co Da
sy llec ta
s t
(o tem ion
pe s
n)
Some trends that we are
very interested in
ed
as
rb
Pa
pe
D
M
Mu ash
up
lti
so ple d s
urc at
es a
na
vi
fo
r
PS
G
Dy
n
ro am
uti ic
sy
ste ng
ms
ga
tio
n
R
2.0
Perfor
Based mance
acces
s
ec
fr tro
ei n
gh ic
t d ally
oc g
um en
e
Pa
en ra
pe
ts ted
rb
as
ed
RF
ID tag
s
Sma
El
S
Pro
be d
s
gn
si
d
Ro
a
ata
1.5
l
ua
id
iv ting ion
d
In rou at
rm
fo
in
Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr
ing
n
too
Pla
nce
Performa
cess
Based ac
3D Printing
Route
optimisat
ion
g
l
es
rvic ata
se
Web raf fic d
t
with
ng
lli ms
To ste
sy
ni n
ce
Ex
pl Rou
an te
ni
ng
Ex
c
ha eptio
nd
lin ns
g
too
Pla
e
gu
lo ls
na oo
t
ail
STM ms
te
sys
In
pr teg
og ra
no ted
si
s
1.0
Big data
Fax
W
e
bo b ba
ok se
in d
g
n
ctio
olle
a c tems )
y
Dat
sys rietar
op
( pr
e
on rs
Ph ape
P
0.5
e
oic
inv
E-
ity
tiv
Ora by cskk on Flickr (CC-BY)
0
A
E-m
ion
icat
mun les
Com h vehic
wit
ec
nn
co
en
Op
eb
cial w
o
The s
Wearable tech
are
rdw d
Ha iente
or
Manual
UI
Computers
d
se
Sim
p
han le ord
dlin er
g
Digitization version
Business
processes
Pl
a
ba tfo
sy s r
st ed m
em
s
B
l
ue n
r f tio
ito p
on um
M sn
co
rt g
ood
s
Software
Vehicle
ba
Adv
anc
han ed ord
dlin
er
g
eb
W
es
d
co
ar
Di
s
de tribu
ma cisio ted
kin n
g
Goods
Lisa for I/O Keynote by Max Braun on Flickr (CC-BY)
O
int pen
erf
ac
e
Functions
Infra-
structure
CC-BY Per Olof Arnäs, Chalmers
62. Wearable tech
Lisa for I/O Keynote by Max Braun on Flickr (CC-BY)
We are becoming cyborgs
More than just
entertainment
Physical interaction with
the digital eco system
72. Northern LEAD
Logistics Research Centre
Founded by:
Chalmers University of Technology
University of Gothenburg
Logistics and Transport Society LTS
73. What we do
Northern LEAD coordinates and supports logistics
research at Chalmers and University of Gothenburg
in order to increase volume, quality and
relevance of the research
stairs by Denis Jacquerye on Flickr
74. Tomorrow’s logistics. We are finding the answers.
Around 70 researchers
Five core research
groups
Collaboration between
Chalmers and University
of Gothenburg
Research centre for
sustainable logistics
solutions
Organises, facilitates,
disseminates highly
relevant logistics
research
75. Five core
research groups
Industrial marketing
& purchasing
Logistics &
Transport
Physical
Distribution
Professors
Visiting Professors
Associate Professors
Post docs
Faculty
PhD students
Total
10
6
5
6
14
32
73
Production
Logistics
Optimization
76. Challenges
and trends
Environmental
impact
Focused areas
Logistics and Production Networks
Outcomes for
policy and
business
Long Distance Transport
Resource
limitations
Urban Transport
Demographic
changes
Manufacturing
and retail
revolution
Complexity and
structural
flexibility
Volatility and risk
Purchasing of
transport
Information,
planning and
control
Service
development in
networks
Intermodality
Resource
utilisation
Measurements
and measuring
Thought leadership
through
high quality
research and
innovation
86. haring
Data s
Exp
del andi
iver
ng
y fr
ont
ic
am uts
yn tc
D or
sh
Foliate
d
transp
ortatio
n
netwo
rk
nd by
Sta
ents
shipm
S
me
o
r
he
ot
Realtime
applications
nt V2I
Intellige
ication
ommun
c
Super Cat by Photo Extremist on Flickr
oon
lat g
P
kin
par
93. From order to invoice
Basic data
From/To/What/When
Owner: the customer
Resource allocation
What vehicle?
Owner: Traffic controller
Cargo information
Loaded amount
Owner: Supplier
Proof of Delivery
Time/date/signature
Owner: Driver
Pricing
Owner: Financial dept.
Enough information to create invoice
All of these steps cost money!
94. An increase in the number of
orders lead to increased cost
Total cost for
administration of
all orders
Goal: De-couple the
dependecy between
administative cost and
order volume
Handle exceptions –
not transactions!
Number of orders per year
95. 2 hours
4 hours
2 hours
1989:A FULL TIME JOB!
CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
96. 0 hours
1-2 hours
0 hours
2013: TWO HOURS. MAX.
CC-‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
97. How
will
we
use
the
technology
in
10
years?
so
e
m
We have no idea.
!
!
Per Olof Arnäs
per-olof.arnas@chalmers.se
about.me/perolofarnas
@Dr_PO
Slides published on slideshare.net/poar
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)
98. Exklusiv förhandsvisning av ny design som kommer inom kort!
Exclusive preview of the new design that will be released shortly!
Kolla gärna in min
crowdsourcade
logistikblogg
Logistikfokus.se
(Sveriges första och
troligtvis enda)
Be sure to check out my crowdsourced
logistics blog Logistikfokus.se
(Sweden’s first and probably the only
one)
Yes, It’s in Swedish but Google Translate
works wonders these days ;-)