www.i-cargo.eu

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations

Harmonization of ICT in Supply Chain Management Systems: Status Quo and Advanced Approaches

Florian Maurer, Jens Schumacher

Vorarlberg University of Applied Sciences

www.i-cargo.eu

Content

• • • • Status Quo & Business Problem Formulation (European Union) Initiatives EU Research Project „Intelligent Cargo“ Harmonization and Standardization iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

Status Quo

• Transport Logistics and Supply Chain Management requires reliable and continous exchange of data and information • Not all systems are able to send/receive data i. they are proprietary (island applications) ii. not able to process information and interpret data • Huge amount of communication standards, e. g.

Logistic Service Provider A

Standard: Fortras iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund

Logistic Service Provider B

Standard: GEFCO

Logistic Service Provider C

Standard: OSL www.i-cargo.eu

Business Problem Formulation

• Data and Information Fragmentation i. horizontal: Intermodality – different needs in Information Exchange (AIR, SEA, ROAD, RAIL, RIVER) e. g.

iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

(European Union & Private) Initiatives

Several initiatives in logistics and SC management, e. g.

• • • IATA … to take the paper out of air cargo and

to build and implement an end-to-end paperless transportation process for the air cargo industry

where paper documents are replaced with the exchange of electronic data • e-Maritime …

to foster the use of advanced information technologies

for working and doing business in the maritime transport sector RIS …

to optimize traffic and transport processes

, to provide local and regional traffic information for safety

lead to focused “islands” of interoperability,

transport chain

by enabling information exchange between vessels, lock and bridges, terminals and ports, etc.

driven by individual stakeholder priorities

TAF TSI … sets the functional and technical standards for

exchanging information between infrastructure managers, railway undertakings and other stakeholders

. The aim of TAF TSI is to contribute to an interoperable and cost-efficient information exchange system for Europe that enables the provision of high quality journey information • ITS …

to deploy ITS and to support innovative freight transport services

continuity of logistics services ; to promote a mobility that is efficient, safe, secure and environmentally friendly; to establish interconnections, interoperability and iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

Business Problem Formulation

• Data and Information Fragmentation i. horizontal: Intermodality – different needs in Information Exchange (AIR, SEA, ROAD, RAIL, RIVER) ii. vertical: Specialization (Standards) • Will (need, and force) for harmonization (to exchange data and information) … but missing technology iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

eFreight

• eFreight is an industry-wide initiative funded by the European Commission • aims to develop • a

standard framework (common framework)

for freight information exchange (in cooperation with presently active major initiatives) covering all transport modes • and all stakeholders in door-to-door logistic chains an

European Single Transport Document

for carriage of goods with all the necessary legislative support, irrespective of mode • • a Single Window (single access point) for administrative procedures in all modes a

simple, harmonized border crossings

for all modes of transport for EU member • states a simple

procedures and the necessary infrastructure for establishing secure and efficient transport corridors

between Europe, USA, and Asia iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

eFreight

iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo

• Intelligent Cargo in Efficient and Sustainable Global Logistics Operations (iCargo) is a 42 month European Union

research project

in Intelligent Transport Systems (ITS) and aims at supporting the

evolution of the logistic industry towards a mature business ecosystem

• Logistics industry will evolve into a business ecosystem where SC stakeholders

combining their resources and capabilities

• iCargo Common Framework extends the Common Framework for ICT in Transport and Logistics and implements functions as … Collaborative planning Logistic chain composition Re-planning of logistic chains Monitoring of the environmental footprint • iCargo allows business ecosystem members

to collect, share and harmonize status information

through the different execution systems and devices operating along the logistic chain iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo

• The overall goal is

to synchronize vehicle movements, adapt changing conditions and to combine services, resources and information

from different stakeholders • iCargo consists of three main kinds of users and three supporting roles. Thereby, each role concentrates on its core capabilities, relying on other members of the ecosystem to provide complementary products and services Logistics Service Client

(responsible for purchasing of logistics services),

Freight Service Integrator

(responsible for providing of combined logistics services),

Logistics Service Provider

(responsible for providing of transport and logistics services),

Information Service Integrator

(responsible for providing of the information infrastructure),

Transportation Network Manager

(3rd level party which provides traffic and infrastructure status information),

Transport Regulator

(ensures that all services are completed according to existing rules and regulations – nothing is possible without leadership from the top of the organization)

iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo – infrastructure (business view)

iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo – infrastructure (technical view)

• iCargo ecosystem infrastructure is a

virtual structure

that supports systems and processes in transport logistics. It connects existing networks, systems and devices to allow automated searching and matching of the offered services • iCargo ecosystem is

decentralized and adopts an open approach

. There is no central authority that governs its operation • provides the

fundament for cooperation and collaboration

as well as continuous interaction and information exchange between iCargo ecosystem members • support the supply chain stakeholders

to plan, execute and monitor logistics business processes

• iCargo ecosystem infrastructure bases on the

concept of semantic interoperability

(capability to run business processes seamlessly across organizational boundaries respectively the ability of two or more systems to exchange information and to use the information that has been exchanged) iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo – infrastructure (technical view)

• three layers which are the application and services, generic components and the IT infrastructure: Application and services are interfaces to the users ERP system Generic components represent the ICT view and enable a user to use and define semantically enabled exchange protocols Ontologies: to execute technical components and have been acknowledged as a powerful means to foster collaboration Access points: standardized semantically enabled interfaces; support collaboration in the ecosystem Semantic gateways: responsible for converting data from one data source to another IT infrastructure is about data storage, management and authorization iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

Trend – cooperation & collaboration

• Several institutions (e. g. WEF) highlight that

supply chain cooperation and collaboration is an emerging need and trend

; the willingness to work in partnerships is imperative in many supply chains iCargo leads to an

increased cooperation and collaboration

between specialized logistics stakeholders and customers; iCargo is able to

collect data from different systems and provide them for and from different stakeholder in a harmonized way

iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

Trend – visibility and transparancy

• A chain with cooperation and collaboration provides SC

visibility and transparency

;

Invisible and intransparent SC’s are more

risky than one with free information flows.

The iCargo concept of semantics and ontologies refers to a

seamless and complete data exchange which enhances network-wide data and information visibility

and transparency. The iCargo access points act as sentinels, which provide quality information.

-

Visibility and transparency

allow … - a shift from

reactive to proactive advanced planning

SC management - develop a chains

agility and flexibility

e. g. preparedness on the micro-level is important Logistic Services Shipper Authority Cargo Field user Vehicle Infrastructure Origin Cooperative freight business ecosystem Dynamic multi-actor plans Interoperable cargo, vehicle and infrastructure Real-time automated event management Planner Forwarder Customs Carrier Shipment Truck Pallet Terminal Carrier Container Terminal Ship Container Field operator Truck Distributor Distr.

Center Local Carrier Package Distrib.

Planner Truck Traffic Mgmt Package Infra structure Destination Shipment from factory Long haul transport Road transport In-city delivery iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo – Standardization

• Standardization as tool for harmonization leads to the ability of

stronger co-ordination of business processes, automation of routine or complex functions

, etc. within a supply chain iCargo takes this into account and

integrates existing standards and technologies

where possible. In iCargo, ecosystem members can rely on a harmonized process and data quality.

iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

iCargo – Outlook

• • All work packages are in progress Specific action: Implementation of the pilots 1) SCAR – Sea-City-Air-Rail 2) Green Corridor between Sweden and European Continent 3) Logistics Service Providers – Shippers cooperation iCargo Training Series: Overcoming the challenges of using multi-modal services Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu

Many thanks for your attention Questions?

Upcoming event: ECITL conference, 05-07 November 2014, Dortmund www.i-cargo.eu