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Internet of Things 
International Forum Logistics and the Internet of Things 
IoT International Forum 
Berlin, November 2011 
Prof. Dr. Michael ten Hompel
Internet of Things 
International Forum Data and Facts about Fraunhofer IML 
■ Founded in 1981 
■ About 200 scientists · 250 student assistants · 3 chairs at TU Dortmund 
■ Turnover > 20 million € · 50% from industry · trade and services 
■ Branches and project centers: Hamburg · Frankfurt · Prien (near Munic) 
■ Cooperation with: HSG St. Gallen (Switzerland) · Georgia Tech (USA) 
IoT Forum 2011 
Folie 1 
Lisbon (Portugal) · Shanghai (China) · Rio de Janeiro (Brazil)
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 2 
EfficiencyCluster LogisticsRuhr 
■ 100 Mio. Euro for development and innovation in 
logistics and supply chain management! 
■ 40 Mio. founded by Federal Ministry of Education 
and Research 
■ 120 Companies 
■ 11 Research institutions 
■ 30 Joined projects 
■ 4 Associated projects 
■ 100 Innovations und Patents 
■ 4000 Jobs in logistics and SCM
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 3 
Logistics as Industry in Germany 
■ Logistics is Germany‘s third biggest industry 
■ 2.8 million people work in logistics² 
(7 % of total employees) 
■ 220 billion Euro turnover in 2011 
First place in Europe with just about a third of the 
turnover 
■ Approximately 5 % growth in turnover in 2011² 
■ Education 
■ 11,600 university graduates per year³ 
(BA and MA with logistics reference – mainly economists 
and engineers) 
■ 1.300 of which with (main) studies in logistics. 
■ Germany is the world‘s leading logistics market 
²Log.Letter 11, BVL 2010 
³Forschungsagenda Logistik, DVZ 2010
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 4 
Logistics today 
Today, logistics is said to be a premium industry. 
Germany is logistics world champion. 
■ World Bank study: «Connecting to Compete» 2010 
Logistics analyzes and shapes economic systems based 
on the division of labor as objects in network flows. 
■ Position paper of BVL's Scientific Advisory Board 
The scramble for the world has begun! 
…and logistics is playing a decisive role. 
■ The container is the symbol of a globalized world. 
[Stefan Aust]
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 5 
Actually, what is logistics? 
To move human beings and things. 
■ All along, human kind has sought to set things in motion. 
■ Logistics endeavors to shape and organize this motion 
efficiently, reasonably and in a target-oriented way. 
■ Logistics conceives networks in the space of which things 
are set in motion. Places and human beings are connected 
by flows of information, commodities and goods. 
■ Logistics transforms things being thought into motion. It 
unites the virtual with the physical world.
IoT Forum 2011 
Internet of Things 
International Forum Logistics is complex 
■ Over the past 10 years the amount of (intra)logistic information has 
Folie 6 
increased by a factor of 1,000. 
■ In 2000 the entire internet data amounted to 21 Terabyte. 
■ At the same time the computer performance 
increased by a factor of 30-50. 
Bild: ® setcookie auf www.pixelio.de
Internet and social network 
Much faster communication in much shorter time 
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 7 
■ In 2010, 107 tr. mails were sent. 
■ This equals 15,000 mails for every person in the 
world.² 
■ 2 billion people are able to receive mails 
■ Spam-rate 89.1%³ 
■ At the end of 2009, the number of users of social 
networks (800 Million) outreached the number of e-mail 
users.³ 
■ The next generation: 
■ 98% are members of studiVZ (German young) 
■ 93% are online every day 
■ 7,7 Million get a daily tweet of Lady Gaga 
²107Bio. Mails an 2 Mrd. User p.a. 
2010 [Spiegel online 18.1.2011] 
³MessageLabs Intelligence 2010
IoT Forum 2011 
Internet of Things 
International Forum 
70,0% 
60,0% 
50,0% 
40,0% 
30,0% 
20,0% 
10,0% 
Folie 8 
38,0% 39,5% 
17% growth of e-commerce 
(Germany 2011) 
46,9% 
53,3% 
60,4% 
66,4% 
0,0% 
2006 2007 2008 2009 2010 2011 
Infratest im Auftrag von BVH, Paypal; E-Commerce-Studie 2011 
Pressekonferenz im Juni 2011 
݁ െ ܿ݋݉݉݁ݎܿ݁ 
݈݉ܽ݅ ݋ݎ݀݁ݎ ܾݑݏ݅݊݁ݏݏ 
∗ 100 ሾ%ሿ
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 9 
The result: The logistical triad 
flexible · convertible · automated 
■ Flexibility 
■ Modification of a system within the planned boundaries. 
■ Flexibility of goods · of throughput · of layout 
■ Changeability 
■ Modification, variation and expansion of a system beyond the 
planned boundaries². 
■ Awareness of environment 
■ Active, purposeful response (e.g. adaptation) 
■ Independent acting (artificial intelligence) 
■ Real time capability 
■ Evolution into an indefinite future based on incomplete 
information 
■ Versus automation 
²Günthner, W.; Heinecker, M.; Wilke, M.: Materialflusssysteme für 
wandelbare Fabrikstrukturen. IIndustrie Management, 18(5):8–10, 2002
IoT Forum 2011 
Internet of Things 
International Forum Exponential Growth 
Folie 10
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 11 
Just some bits of information: 
That‘s how we see our world
IoT Forum 2011 
Internet of Things 
International Forum How we should see our world 
Folie 12
Internet of Things 
International Forum RFID combines virtual and material world 
IoT Forum 2011 
Folie 13 
Fotomontage auf Basis eines Fotos von 
® Oliver Haja auf www.pixelio.de
Internet of Things 
International Forum smaRTI – smart reusable transport items 
IoT Forum 2011 
Folie 14 
Realtime interbranch 
processes, based on smart 
reusable transport items 
(smaRTIs) 
Based on intelligent 
carriers in three different 
industries: FMCG, Air- 
Cargo and Postal 
Cloud-based event 
repository, to gather 
comprehensive supply 
chain information 
Hybrid AutoID-processes, 
that support 
simple barcode scans, 
up to complex RTLS-Systems 
or end-user 
devices like the iPhone. 
Bild: © Antje Delater auf www.pixelio.de 
EffizienzClusters LogistikRuhr - Gefördert durch:
Internet of Things 
International Forum Smart air freight containers (smartULD) 
IoT Forum 2011 
Folie 15 
■ DyCoNet smartULDs… 
■ …use energy harvesting 
■ …collect environmental 
data with sensors 
■ …trigger alarms 
autonomously 
■ …build local networks of 
charge carriers via short 
range wireless (SRW) 
■ …interact with IT-networks 
(e.g. ULD management) 
■ …order transports to a 
destination (loading 
devices, aircrafts) 
EffizienzClusters LogistikRuhr - Gefördert durch: 
ULD Management 
smartULDs 
GSM / 
UMTS 
SRW (ZigBee, 802.15.4) 
Internet
Internet of Things 
International Forum Philosophy of the Internet of Things 
IoT Forum 2011 
Folie 16 
■ The trend is going from 
hierarchical to mesh-like 
structures 
■ Modularization of 
mechanical components 
■ Distribution of control 
functions over the system 
■ Every entity is represented 
by a software agent 
■ This leads to: 
■ decentralization 
■ internet of things 
(not only) in logistics 
Classical material flow control 
Internet of Things
IoT Forum 2011 
Internet of Things 
International Forum Evolution – learning from nature 
Folie 17 
Photo: © Echino auf www.pixelio.de 
und LinogistiX
Cellular intralogistics and transport system 
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 18 
■ The cellular intralogistics anticipates individualization 
and elevates it to a method. 
The philosophy of the "Logistics on Demand" is 
transferred to the physical material flow: 
■ Stiff and conventional materials handling systems are 
dismantled. 
■ Autonomous vehicles and modules (cells) substitute 
conveyors and cooperate like the cells of an organism. 
■ Each cell provides a service – e. g. transporting a 
container from a source to a destination. 
■ The classic material flow system will be replaced by co-operating 
cells (entities). 
■ This leads to a maximum of flexibility and dynamism.
IoT Forum 2011 
Internet of Things 
International Forum The ideal logistic space is empty 
Folie 19 
the workstations - logistical “feeding grounds” 
Diese Entwicklung wurde gefördert durch: 
the warehouse - logistical “anthill”
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 20 
There is a method to individuality! 
Internet of Things - Cellular Intralogistics 
Diese Entwicklung wurde gefördert durch: 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant 
ant
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 21 
Individuality is methodical! 
Internet of Things-Cellular Intralogistics 
Diese Entwicklung wurde gefördert durch:
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 22 
Video Individuality is methodical! 
Internet of Things-Cellular Intralogistics 
Diese Entwicklung wurde gefördert durch:
Multishuttle™ – Cellular intralogistics 
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 23 
■ Agent-based control system 
■ Decentralized control concept using autonomy and 
swarm intelligence 
■ Autonomous access towards a destination 
■ Communication with sensor nodes and WiFi by IEEE 
802.15.4 and IEEE 802.11 
■ Hybrid sensor concept including radio detection and 
ranging sensors 
■ Intelligent decentralized localization and collision 
detection 
■ Save interaction with 
■ People and non-automated vehicles like fork lift trucks etc. 
■ Order management by Logistics Mall + SAP 
Diese Entwicklung wurde gefördert durch:
Way by Odometry 
Way by MC particle filter 
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 24 
Particle filters for 
positioning · navigation · tracking 
Particle 
Real position 
LogiMAT 2011 - Dipl.-Ing. Andreas Kamagaew 
sequ. Monte Carlo and Kalman filter for Gaussian distribution
IoT Forum 2011 
Internet of Things 
International Forum Modelling a new world 
Folie 25 
Internet of Services 
logistics mall 
Normative level 
Batch execution 
Self-organization 
Software as a Service & SOA 
Internet of Things 
Cellular Intralogistics 
Operational level 
Real time capabilities 
Self-control 
MultiShuttle™
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 26 
Logistics Mall 
Service-oriented architectures in logistics
IoT Forum 2011 
Internet of Things 
International Forum 
Folie 27 
Logistics Mall 
Service-oriented architectures in logistics 
TEIL II
Internet of Things 
International Forum Logistics and the Internet of Things 
IoT International Forum 
Berlin, November 2011 
Prof. Dr. Michael ten Hompel

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logistics and the internet of things

  • 1. Internet of Things International Forum Logistics and the Internet of Things IoT International Forum Berlin, November 2011 Prof. Dr. Michael ten Hompel
  • 2. Internet of Things International Forum Data and Facts about Fraunhofer IML ■ Founded in 1981 ■ About 200 scientists · 250 student assistants · 3 chairs at TU Dortmund ■ Turnover > 20 million € · 50% from industry · trade and services ■ Branches and project centers: Hamburg · Frankfurt · Prien (near Munic) ■ Cooperation with: HSG St. Gallen (Switzerland) · Georgia Tech (USA) IoT Forum 2011 Folie 1 Lisbon (Portugal) · Shanghai (China) · Rio de Janeiro (Brazil)
  • 3. IoT Forum 2011 Internet of Things International Forum Folie 2 EfficiencyCluster LogisticsRuhr ■ 100 Mio. Euro for development and innovation in logistics and supply chain management! ■ 40 Mio. founded by Federal Ministry of Education and Research ■ 120 Companies ■ 11 Research institutions ■ 30 Joined projects ■ 4 Associated projects ■ 100 Innovations und Patents ■ 4000 Jobs in logistics and SCM
  • 4. IoT Forum 2011 Internet of Things International Forum Folie 3 Logistics as Industry in Germany ■ Logistics is Germany‘s third biggest industry ■ 2.8 million people work in logistics² (7 % of total employees) ■ 220 billion Euro turnover in 2011 First place in Europe with just about a third of the turnover ■ Approximately 5 % growth in turnover in 2011² ■ Education ■ 11,600 university graduates per year³ (BA and MA with logistics reference – mainly economists and engineers) ■ 1.300 of which with (main) studies in logistics. ■ Germany is the world‘s leading logistics market ²Log.Letter 11, BVL 2010 ³Forschungsagenda Logistik, DVZ 2010
  • 5. IoT Forum 2011 Internet of Things International Forum Folie 4 Logistics today Today, logistics is said to be a premium industry. Germany is logistics world champion. ■ World Bank study: «Connecting to Compete» 2010 Logistics analyzes and shapes economic systems based on the division of labor as objects in network flows. ■ Position paper of BVL's Scientific Advisory Board The scramble for the world has begun! …and logistics is playing a decisive role. ■ The container is the symbol of a globalized world. [Stefan Aust]
  • 6. IoT Forum 2011 Internet of Things International Forum Folie 5 Actually, what is logistics? To move human beings and things. ■ All along, human kind has sought to set things in motion. ■ Logistics endeavors to shape and organize this motion efficiently, reasonably and in a target-oriented way. ■ Logistics conceives networks in the space of which things are set in motion. Places and human beings are connected by flows of information, commodities and goods. ■ Logistics transforms things being thought into motion. It unites the virtual with the physical world.
  • 7. IoT Forum 2011 Internet of Things International Forum Logistics is complex ■ Over the past 10 years the amount of (intra)logistic information has Folie 6 increased by a factor of 1,000. ■ In 2000 the entire internet data amounted to 21 Terabyte. ■ At the same time the computer performance increased by a factor of 30-50. Bild: ® setcookie auf www.pixelio.de
  • 8. Internet and social network Much faster communication in much shorter time IoT Forum 2011 Internet of Things International Forum Folie 7 ■ In 2010, 107 tr. mails were sent. ■ This equals 15,000 mails for every person in the world.² ■ 2 billion people are able to receive mails ■ Spam-rate 89.1%³ ■ At the end of 2009, the number of users of social networks (800 Million) outreached the number of e-mail users.³ ■ The next generation: ■ 98% are members of studiVZ (German young) ■ 93% are online every day ■ 7,7 Million get a daily tweet of Lady Gaga ²107Bio. Mails an 2 Mrd. User p.a. 2010 [Spiegel online 18.1.2011] ³MessageLabs Intelligence 2010
  • 9. IoT Forum 2011 Internet of Things International Forum 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% Folie 8 38,0% 39,5% 17% growth of e-commerce (Germany 2011) 46,9% 53,3% 60,4% 66,4% 0,0% 2006 2007 2008 2009 2010 2011 Infratest im Auftrag von BVH, Paypal; E-Commerce-Studie 2011 Pressekonferenz im Juni 2011 ݁ െ ܿ݋݉݉݁ݎܿ݁ ݈݉ܽ݅ ݋ݎ݀݁ݎ ܾݑݏ݅݊݁ݏݏ ∗ 100 ሾ%ሿ
  • 10. IoT Forum 2011 Internet of Things International Forum Folie 9 The result: The logistical triad flexible · convertible · automated ■ Flexibility ■ Modification of a system within the planned boundaries. ■ Flexibility of goods · of throughput · of layout ■ Changeability ■ Modification, variation and expansion of a system beyond the planned boundaries². ■ Awareness of environment ■ Active, purposeful response (e.g. adaptation) ■ Independent acting (artificial intelligence) ■ Real time capability ■ Evolution into an indefinite future based on incomplete information ■ Versus automation ²Günthner, W.; Heinecker, M.; Wilke, M.: Materialflusssysteme für wandelbare Fabrikstrukturen. IIndustrie Management, 18(5):8–10, 2002
  • 11. IoT Forum 2011 Internet of Things International Forum Exponential Growth Folie 10
  • 12. IoT Forum 2011 Internet of Things International Forum Folie 11 Just some bits of information: That‘s how we see our world
  • 13. IoT Forum 2011 Internet of Things International Forum How we should see our world Folie 12
  • 14. Internet of Things International Forum RFID combines virtual and material world IoT Forum 2011 Folie 13 Fotomontage auf Basis eines Fotos von ® Oliver Haja auf www.pixelio.de
  • 15. Internet of Things International Forum smaRTI – smart reusable transport items IoT Forum 2011 Folie 14 Realtime interbranch processes, based on smart reusable transport items (smaRTIs) Based on intelligent carriers in three different industries: FMCG, Air- Cargo and Postal Cloud-based event repository, to gather comprehensive supply chain information Hybrid AutoID-processes, that support simple barcode scans, up to complex RTLS-Systems or end-user devices like the iPhone. Bild: © Antje Delater auf www.pixelio.de EffizienzClusters LogistikRuhr - Gefördert durch:
  • 16. Internet of Things International Forum Smart air freight containers (smartULD) IoT Forum 2011 Folie 15 ■ DyCoNet smartULDs… ■ …use energy harvesting ■ …collect environmental data with sensors ■ …trigger alarms autonomously ■ …build local networks of charge carriers via short range wireless (SRW) ■ …interact with IT-networks (e.g. ULD management) ■ …order transports to a destination (loading devices, aircrafts) EffizienzClusters LogistikRuhr - Gefördert durch: ULD Management smartULDs GSM / UMTS SRW (ZigBee, 802.15.4) Internet
  • 17. Internet of Things International Forum Philosophy of the Internet of Things IoT Forum 2011 Folie 16 ■ The trend is going from hierarchical to mesh-like structures ■ Modularization of mechanical components ■ Distribution of control functions over the system ■ Every entity is represented by a software agent ■ This leads to: ■ decentralization ■ internet of things (not only) in logistics Classical material flow control Internet of Things
  • 18. IoT Forum 2011 Internet of Things International Forum Evolution – learning from nature Folie 17 Photo: © Echino auf www.pixelio.de und LinogistiX
  • 19. Cellular intralogistics and transport system IoT Forum 2011 Internet of Things International Forum Folie 18 ■ The cellular intralogistics anticipates individualization and elevates it to a method. The philosophy of the "Logistics on Demand" is transferred to the physical material flow: ■ Stiff and conventional materials handling systems are dismantled. ■ Autonomous vehicles and modules (cells) substitute conveyors and cooperate like the cells of an organism. ■ Each cell provides a service – e. g. transporting a container from a source to a destination. ■ The classic material flow system will be replaced by co-operating cells (entities). ■ This leads to a maximum of flexibility and dynamism.
  • 20. IoT Forum 2011 Internet of Things International Forum The ideal logistic space is empty Folie 19 the workstations - logistical “feeding grounds” Diese Entwicklung wurde gefördert durch: the warehouse - logistical “anthill”
  • 21. IoT Forum 2011 Internet of Things International Forum Folie 20 There is a method to individuality! Internet of Things - Cellular Intralogistics Diese Entwicklung wurde gefördert durch: ant ant ant ant ant ant ant ant ant ant ant ant ant ant ant
  • 22. IoT Forum 2011 Internet of Things International Forum Folie 21 Individuality is methodical! Internet of Things-Cellular Intralogistics Diese Entwicklung wurde gefördert durch:
  • 23. IoT Forum 2011 Internet of Things International Forum Folie 22 Video Individuality is methodical! Internet of Things-Cellular Intralogistics Diese Entwicklung wurde gefördert durch:
  • 24. Multishuttle™ – Cellular intralogistics IoT Forum 2011 Internet of Things International Forum Folie 23 ■ Agent-based control system ■ Decentralized control concept using autonomy and swarm intelligence ■ Autonomous access towards a destination ■ Communication with sensor nodes and WiFi by IEEE 802.15.4 and IEEE 802.11 ■ Hybrid sensor concept including radio detection and ranging sensors ■ Intelligent decentralized localization and collision detection ■ Save interaction with ■ People and non-automated vehicles like fork lift trucks etc. ■ Order management by Logistics Mall + SAP Diese Entwicklung wurde gefördert durch:
  • 25. Way by Odometry Way by MC particle filter IoT Forum 2011 Internet of Things International Forum Folie 24 Particle filters for positioning · navigation · tracking Particle Real position LogiMAT 2011 - Dipl.-Ing. Andreas Kamagaew sequ. Monte Carlo and Kalman filter for Gaussian distribution
  • 26. IoT Forum 2011 Internet of Things International Forum Modelling a new world Folie 25 Internet of Services logistics mall Normative level Batch execution Self-organization Software as a Service & SOA Internet of Things Cellular Intralogistics Operational level Real time capabilities Self-control MultiShuttle™
  • 27. IoT Forum 2011 Internet of Things International Forum Folie 26 Logistics Mall Service-oriented architectures in logistics
  • 28. IoT Forum 2011 Internet of Things International Forum Folie 27 Logistics Mall Service-oriented architectures in logistics TEIL II
  • 29.
  • 30. Internet of Things International Forum Logistics and the Internet of Things IoT International Forum Berlin, November 2011 Prof. Dr. Michael ten Hompel