1. 1 Network of Logistics Brokers in Central Europe Territories Speaker: Stefano Dondi

2. Prague - CE Cross fertilisation Workshop 24 th November 2010 KASSETTS research objectives  New ICT services to support SMEs in this field –Demand aggregation and optimal route definition –Identification of the most convenient transport solution –Preparation, exchange and translation of transport-related documents  Through a network of intermediary logistic coordinators –Working at a regional scale, collaborating with each other –Involving selected manufacturing and distribution companies –Involving selected transport service suppliers  Improvement potential on environment (and business) –+23% of average saturation index, -20% of kilometres

3. Prague - CE Cross fertilisation Workshop 24 th November 2010 Operational scenarios  Regional scenarios (one broker involved) –Manufacturing company fleet planning –Small logistic operator fleet planning –Demand aggregation and planning –Offer matching –Demand matching –Import/export of documents from legacy systems  Trans-national scenarios (2 or more brokers involved) –Joint mission computation –Joint mission completion –Multilingual document exchange

4. Prague - CE Cross fertilisation Workshop 24 th November 2010 The domain ontology  Logistic Sector Ontology –Focus on the knowledge exchanged between relevant actors –Ready in English and translated into 7 EU languages –Czech, German, Hungarian, Italian, Polish, Slovenian, Slovak –Built in OWL with an extension of PROTEGE –Facilitated web interface for term definition and translation –Export in XML format –Mapping between different XML formats with MAPFORCE ALTOVA –Automatic translation service

5. Prague - CE Cross fertilisation Workshop 24 th November 20105 WPs interrelation WP5 WP3 Stakeholder & Best practices Company selection: sectors/industries (Compatibility) transport needs from/to the KASSETTS regions/areas WP6 Pilots implementation: Implementation of real pilots tests Indication for Roadmap Media Non media communication ICT Tools

6. 6 Selected Good practices for ICT based logistic cooperation

7. Prague - CE Cross fertilisation Workshop 24 th November 2010 Research approach, methodology  Based on background projects –CORELOG: optimisation of logistic flows in the supply chain (INTERREG IIIB CADSES) –MATAARI: optimisation of logistic flows in industrial districts (INTERREG IIIB MEDDOC) –STIL: ICT services to promote on-line logistics at the regional scale (Emilia Romagna Regional Telematic Plan) –SEAMLESS: automatic translation of exchanges business documents (FP6 - IST Call 4: Strategic objective: 2.4.13 Strengthening the Integration of the ICT Research Effort in an Enlarged Europe)  A local experience to exploit and extend –The Logistic Broker, acting in the Modena province since May 2008 –Some local manufacturing companies are involved –Some local carriers are qualified as service suppliers –Twice a day planning of the aggregated demand –www.mo.brokerlogistica.net

8. Prague - CE Cross fertilisation Workshop 24 th November 2010 Considerations  Experiences focused on collaboration and, more precisely, on fair co- opetition, meaning collaboration + competition among SMEs,  MATAARI and CORELOG, report the viewpoint of manufacturers of different size (mostly SMEs) in terms of optimisation of internal fleets and demand aggregation  MATAARI introduces the need of an intermediate entity managing the aggregated demand, and CORELOG characterises the broker profile and provides its basic operational tools.  STIL is addressed to manufacturers, logistic operators and platforms, logistic brokers, to support their interaction without impacting on their legacy systems and provide them with advanced route planning tools  ICT technology plays a fundamental role as enabler of new ways of working, especially with respect to:  ensure the application of agreed collaboration rules  support planning and re-planning taking into account different policies (optimisation, balanced assignment)  allow electronic exchange of documents for mission monitoring and accounting. 8

9. 9 KASSETTS Tool for Consolidating Cargo Flows

10. Prague - CE Cross fertilisation Workshop 24 th November 201010 Platform structure Document management & exchange GUI DOM Customer workspace Carrier workspace GUI Broker workspace Regional planning Trans national planning The Broker manager One Customer One Carrier Legacy system Other Brokers

11. Prague - CE Cross fertilisation Workshop 24 th November 201011  Domain ontology translation  By means of the Ontology Manager web application  To translate vocabulary and user interface concepts and terms  Into the local language of the single Broker, if not yet available  For automatic generation of GUI in local language  Geographical information  Localities (where sites to visit are located)  Geo-clusters (territory coverage delimiting sites to visit by a single mission)  Other basic information  Companies (customers, carriers)  Users (access credentials)  Vehicle types  Mission cost distribution policy Platform initialisation GUI Broker workspace

12. Prague - CE Cross fertilisation Workshop 24 th November 201012  Start-up  CUSTOMER: Sites of interest (clients, suppliers, subcontractors)  CUSTOMER: Types of packages used  CUSTOMER: Internal fleet, if any, with truck work calendar and price list  CARRIER: Infinite capacity fleet, price list  Main activities, CUSTOMER  Issuing new transport requests  Updating internal fleet calendar  Evaluating priced transport missions  Receiving periodical pro-forma invoices  Main activities, CARRIER  Updating fleet configuration and price list  Receiving transport mission to execute  Receiving periodical pro-forma invoices User operations GUI Customer workspace Carrier workspace GUI

13. Prague - CE Cross fertilisation Workshop 24 th November 201013  Acquisition of transport requests  By using the platform web interface  By importing orders from the legacy system  Planning  Internal fleet planning (on the fleet owned by the request issuer, if any)  Extended internal fleet planning (to saturate the internal fleets)  Infinite capacity planning (optimal routes and most suited vehicle types)  Computation of mission prices according to candidate carrier price lists.  Transport mission assignment  Mission assignment to the most convenient carrier  In case of rejection, assignment to another candidate carrier Broker: regional scale GUI Regional planning

14. Prague - CE Cross fertilisation Workshop 24 th November 201014  Transport demand management  Customers can publish a demand for last-minute or special transport  Carriers can publish a demand to find out possible subcontractors  Carriers can reply to transport demands when able to satisfy them  Each transport demand expires after a given date  Transport offer management  Customers can publish an offer to complete their own fleet routes  Carriers can publish an offer to saturate empty runs  Carriers (or customers with fleet) can reply to transport offers  Each transport offer expires after a given date  Automatic generation of offers  Transport offers are automatically generated by the internal fleet planning  So as to complete each truck milk run Demand/offer matching GUI DOM GUI

15. Prague - CE Cross fertilisation Workshop 24 th November 201015  Document management  Docs are composed with the application web interface  Docs are imported and exported from/to legacy systems  Docs are sent and received between users  Docs can be private or public (accessible to counterparts)  Document exchange  When importing/exporting a format transformation occurs  When sending a document to a user associated to another Broker a language translation occurs  Format mapping and language translation are based on the Ontology Manager Doc mgt and exchange Document management & exchange

16. Prague - CE Cross fertilisation Workshop 24 th November 201016  Document management  Docs are composed with the application web interface  Docs are imported and exported from/to legacy systems  Docs are sent and received between users  Docs can be private or public (accessible to counterparts)  Document exchange  Documents are exchanged between brokers during the transnational planning  Broker A sends transport requests to Broker B (internal KASSETTS format)  Broker B replies to Broker A the computed transport mission (internal KASSETTS format)  This document exchange is transparent to the user Doc mgt and exchange

17. Prague - CE Cross fertilisation Workshop 24 th November 201017  Import scenario  Feeding the KASSETTS platform with transport requests from a legacy system  Step 1: Definition of the data schema. The customer provides the data schema of its legacy system (e.g. XSD, Excel, database)  Step 2: Definition of the mapping file. The XSLT file is generated with the conversion rules  Step 3: Preparation of the run-time service. The XSLT mapping file is imported into the KASSETTS platform, to be used at runtime. Import of documents

18. Prague - CE Cross fertilisation Workshop 24 th November 201018  Export scenario  Saving a transport invoice, a transport mission, or a CMR in the legacy system  The steps are the same as defined for the import scenario. Export of documents

19. Prague - CE Cross fertilisation Workshop 24 th November 201019 The mapping process  A manual procedure  Format mapping > first it is necessary to code the relations between fields  (1 to 1, 1 to N, M to 1 relations, functional relations)  Language mapping > second it is necessary to translate critical terms

20. Prague - CE Cross fertilisation Workshop 24 th November 2010 ROAD Brokering Models 20 BROKER L S M BASIC APPROACHOPERATOR APPROACH

21. Prague - CE Cross fertilisation Workshop 24 th November 201021 ROAD - RAIL Brokering Model Region A Region B Rail Transport Rail Node Road Transport  Trans- regional transport (medium/long distances)  This is the most common transnational transport scenario  With picking in the origin region and delivery in the destination region  Then involving the two Brokers acting in the respective regions  Also suited for regular transport services (freight bus)  And basic condition for road-rail / Co-modal or intermodal solutions  A 3-stage model  The picking stage is completely performed in the origin region  Then a long-distance journey takes place between the two regions  Finally the delivery stage is completely performed in the destination region

22. Prague - CE Cross fertilisation Workshop 24 th November 2010 Test version (English)  A test version in English is available for free tests by PPs and anybody else interested in testing the ICT platform functionality.  This version is available at the following address: http://nic.ing.unimo.it/broker-en/  User id: broker  Password: broker 22

23. 23 Network of Logistics Brokers

24. Prague - CE Cross fertilisation Workshop 24 th November 2010 The Network of Broker 24

25. Prague - CE Cross fertilisation Workshop 24 th November 2010 Network: Business and Governance model 25 Financial aspects Framework  Rules on how brokers jointly face future decisions in terms of: - Technology, - Organization - Financing  T arget group: - Started up brokers - Future brokers Legal aspects Technology aspects Soft aspects

26. Prague - CE Cross fertilisation Workshop 24 th November 201026 Possible KASSETTS network – Issues/1  Stage 1 – Involvement of customers  Broker support during setup  Suitable business model  Establishment of rules for conflict resolution  Establishment of rights and licenses for users  Establishment of regulations for software usage, billing, distribution costs and incomes Head UNIT stage 1 MACRO-plane Broker X stage 2 SME / Carrier stage 3 MICRO-plane Broker Y SME / Carrier (mixed structure) (centralized structure) Information flows

27. Prague - CE Cross fertilisation Workshop 24 th November 201027 Possible KASSETTS network – Issues/2  Stage 2 – Definition of broker  Suitable business model  Establishment of rules for conflict resolution  Establishment of regulations for distribution costs and incomes  Matching to pre-determined regions  Creation of transparent and unified prices, costs, standards, framework- conditions according to country- specific facts  Control of brokers neutrality  Agency problems  Terminability of broker execution  Cultural differences Head UNIT stage 1 MACRO-plane Broker X stage 2 SME / Carrier stage 3 MICRO-plane Broker Y SME / Carrier (mixed structure) (centralized structure) Information flows

28. Prague - CE Cross fertilisation Workshop 24 th November 201028 Possible KASSETTS network – Issues/3  Stage 3 – Definition of broker-interaction with actors and head unit  Broker support during setup  Avoidance of insufficient cooperation willingness of actors  Creation of transparent and unified prices, costs according to country- specific facts  Influence on cash flow process by brokers  Determination of exclusion criteria Head UNIT stage 1 MACRO-plane Broker X stage 2 SME / Carrier stage 3 MICRO-plane Broker Y SME / Carrier (mixed structure) (centralized structure) Information flows

29. Prague - CE Cross fertilisation Workshop 24 th November 2010 ICT Platform Use  Service hosting (during the project, after the project completion)  Privacy of data  Ownership of results  Work hypothesis for New broker:  Open approach and scalable: Knowledge dissemination, Constraint to act as a node of the network;  Work hypothesis for New services:  Open approach, favouring the diffusion of new solutions with respect of the network governance model 29

30. Prague - CE Cross fertilisation Workshop 24 th November 201030  Work hypothesis  Select the most common and useful transport scenario  Establish the mutual roles of collaborating Brokers  Identify the kind of information they have to exchange  Then develop the supporting functions and services Broker: transnational (TN) GUI DOM GUI Trans national planning

31. Prague - CE Cross fertilisation Workshop 24 th November 201031  Region-to-Region transport  This is the most common transnational transport scenario  With picking in the origin region and delivery in the destination region  Then involving the two Brokers acting in the respective regions  Also suited for regular transport services (freight bus)  And basic condition for road-rail / Co-modal solutions  A three-stage model  The picking stage is completely performed in the origin region  Then a long-distance journey takes place between the two regions  Finally the delivery stage is completely performed in the destination region Transnational transport scenario Region A Region B

32. Prague - CE Cross fertilisation Workshop 24 th November 2010 Region B Region A User Company Logistic Operator Logistic Broker FCPFCP Customer Mission assigned Carrier ICPICP DOMDOM Transport orders Orders confirmed Mission accepted User Company Logistic Operator Logistic Broker FCPFCP Customer Mission assigned Carrier ICPICP DOMDOM Transport orders Orders confirmed Mission accepted FCP = Finite Capacity Planning ICP = Infinite Capacity Planning DOM = Demand/Offer Matching Legacy system Client A comprehensive scenario 32

33. Prague - CE Cross fertilisation Workshop 24 th November 2010 Conclusion and outlook  Ontology and application services are ready –Candidate brokers are identified –Pilot sites are being selected –4 Trans. pilots with participants from 7 regions will be running –And showing the benefits of interoperating with each other  Further steps –Now the focus is on regional and transnational road transport –Demand aggregation and optimisation pave the way towards modal shift (focus: Co-modality) –Which now is typically out of the scope of the SME choices –Extending as much as possible the opportunity of electronic document exchange and translation

34. Prague - CE Cross fertilisation Workshop 24 th November 2010 Important Milestone - 5 th Project period Open Brokers Network (Core output 5.2.2): –Establishment of a transnational interoperable logistic brokers network as permanently operating and growing infrastructure. –The network includes 7 brokers in the 7 pjt regions Governance and business model (Core Output 5.3.2): –Constitution of a light and effective governance system explicitly open to new actors and to provision of new services. 4 Operational and Transnational Pilots: –validation process by executing real-life pilot actions involving companies in different regions & resulting in the joint / real definition of efficient transport solutions 34

35. Prague - CE Cross fertilisation Workshop 24 th November 201035 Stefano Dondi Viale Aldo Moro, 38 - 40127 Bologna - Italy Tel.+39 051 527 3737 Fax+39 051 527 3169 E-mail: sdondi@regione.emilia-romagna.it Contact information QR code