Intelligent Cargo in Efficient and Sustainable Global Logistics Operations

Florian Maurer, Jens Schumacher Vorarlberg University of Applied Sciences Harmonization of ICT in Supply Chain Management Systems: Status Quo and Advanced Approaches

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

iCargo Training Series: Overcoming the challenges of using multi-modal serviceswww.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. Upcoming event: ECITL conference, November 2014, Dortmund Logistic Service Provider A Standard: Fortras Logistic Service Provider B Standard: GEFCO Logistic Service Provider C Standard: OSL

iCargo Training Series: Overcoming the challenges of using multi-modal serviceswww.i-cargo.eu Business Problem Formulation Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu (European Union & Private) Initiatives Upcoming event: ECITL conference, November 2014, Dortmund 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 monitoring on tactical as well as strategical level, to optimize the resource management of the waterborne transport chain by enabling information exchange between vessels, lock and bridges, terminals and ports, etc. 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; to promote a mobility that is efficient, safe, secure and environmentally friendly; to establish interconnections, interoperability and continuity of logistics services lead to focused “islands” of interoperability, driven by individual stakeholder priorities

iCargo Training Series: Overcoming the challenges of using multi-modal serviceswww.i-cargo.eu Business Problem Formulation Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu eFreight Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu eFreight Upcoming event: ECITL conference, November 2014, Dortmund

iCargo Training Series: Overcoming the challenges of using multi-modal serviceswww.i-cargo.eu iCargo Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu iCargo Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu iCargo – infrastructure (business view) Upcoming event: ECITL conference, November 2014, Dortmund

iCargo Training Series: Overcoming the challenges of using multi-modal serviceswww.i-cargo.eu iCargo – infrastructure (technical view) Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu iCargo – infrastructure (technical view) Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu Trend – cooperation & collaboration Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu Trend – visibility and transparancy Upcoming event: ECITL conference, November 2014, Dortmund 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 SC management - advanced planning - develop a chains agility and flexibility e. g. preparedness on the micro-level is important

iCargo Training Series: Overcoming the challenges of using multi-modal serviceswww.i-cargo.eu iCargo – Standardization Upcoming event: ECITL conference, November 2014, Dortmund 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 serviceswww.i-cargo.eu iCargo – Outlook Upcoming event: ECITL conference, November 2014, Dortmund 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

Questions? Many thanks for your attention Upcoming event: ECITL conference, November 2014, Dortmund