Intelligent Cargo in Efficient and Sustainable Global Logistics Operations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations WP 1 - Common Framework Alignment and Specification iCargo Project Review, December 5 th,

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Provide common foundations (including semantics) for cooperative planning, execution and completion of co-modal, low-carbon freight transport, taking into account: i.The viewpoint and requirements of the different private and public involved stakeholders; ii.On-going industry and standardization activities; iii.Relevant physical and logical entities that need to be included in the iCargo common framework. WP 1 Objective 3

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations 5 business level innovations 4 Overall goal: support new logistics services to: Synchronize vehicle movements and logistics operations across various modes and actors to lower CO2 emissions, Adapt to changing conditions through dynamic planning methods involving intelligent cargo, vehicle and infrastructure systems and Combine services, resources and information from different stakeholders, taking part in an open freight management ecosystem. (from the DoW) 1. Collaborative planning 2. Logistic chain composition based on services 3. Re-planning of logistic chains by the client 4. Optimization of the use of resources in the logistic chain by logistic service providers 5. Monitoring the environmental footprint Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Objective – Pooling and sharing resources Outlook – Cooperating partners in a specific business community publishes availability of services and demand. – Based on this visibility, organizations can decide to cooperate, e.g. combining shipments Effect – Lower cost and emissions 1. Collaborative planning 5 Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations iCargo will provide mechanisms to support collaborative planning to support pooling and sharing resources. It will be implemented as a 'call for collaboration'. In the ecosystem, prior to booking a door-to-door service, the (future) availability of services and demand is published by cooperating partners in a specific business community. Based on this visibility, organizations can decide to cooperate, e.g. by combining shipments. In this way iCargo supports new service-offerings and potential savings in terms of more efficient bundling of demand and supply. Savings include both cost savings and a reduction of the environmental footprint. 1. Collaborative planning 6 Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Objective – «Amadeus for Freight» without a central database holding all services Outlook – A distributed eCatalogue of logistics services that may be searched and services composed into appropriate chains automatically Effect – Automatically providing the possible logistic chains for a certain shipment, composed of the available transport services. 2. Logistic chain composition 7

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations iCargo will automatically provide the possible logistic chains, composed of the available transport services. iCargo will provide mechanisms to be able to select the best door-to-door logistic chain for a particular shipment, by composing the logistic chain based on the available transport services at a specific moment in time and the specific goals a customer might have. In co-modal transport, the chain consists of multiple – orchestrated – transport services. Goals not only include the physical characteristics of the shipment (cargo, amount, destination, etc.), but also performance and pricing criteria. Within iCargo these criteria include environmental data - customers should be able to select the ‘greenest’ logistic chain. 2. Logistic chain composition 8 Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Objective – Provide ways to re-plan and change the logistic chain as goals change. Outlook – Reusing all available capabilities for planning “on the fly” Effect – Ensuring the best possible execution at all times 3. Re-planning of logistic chains 9

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations In these cases iCargo will provide ways for the client to re-plan and change the logistic chain as goals change. Sometimes, it can be necessary to re-plan a specific logistic chain. This is the case when the initial goals of the shipment have changed. For example: New performance requirements: a faster transport means is required or there is an opportunity for more environmental friendly but slower transport means (e.g. inland waterways instead of road). Onward transport: the final destination was unknown at the initial planning (e.g. cargo was planned to go to a warehouse, but the final destination is now known). Changes in volumes, e.g. by combining shipments. 3. Re-planning of logistic chains 10 Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Objective – Provide the best possible resource utilisation. Outlook – Logistic service providers are able to really be “situational aware”. Effect – Reduced cost – Reduced emissions 4. Optimising the use of resources 11

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations iCargo will provide ways for logistic service providers to become more situational aware. Logistic service providers want to optimize the use of their transport means/resources prior to and during the execution of services. Examples could include: Combining shipments from multiple consignees Handling exceptions (e.g. delays) Synchronizing movements (e.g. in transshipment) Service providers should have more information about (operational data of) the actors in their environment - especially actors that provide the previous or next part of a particular chain. Having this information, the process can be optimized accordingly (e.g. synchronizing the ETA of one leg and the ETD of the next leg in the chain to minimize hold-ups at transshipment points). 4. Optimization of the use of resources 12 Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Objective – Measure environmental performance from both shippers’ and logistics service providers’ point of view. (iCargo concentrates on CO 2 ) Outlook – The environmental performance of all door-to- door transport operations is measured and reported Effect – Environmental visibility in transport 5. Monitoring environmental performance 13

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations The iCargo project aims to provide ways for logistic service providers to gather data relevant to the environmental footprint from the logistic chain and share this with their customers for reporting purposes. This will improve the visibility of the environmental footprint. iCargo will support different ways of calculating the environmental footprint, as they are currently under development or being standardized in different countries, industries and on a European level. Several initiatives, such as GreenFreight Europe and others, try to improve this situation by standardizing the reporting templates for logistic service providers. There is still a challenge for logistic service providers to gather the data required for these templates. This data comes from various sources inside and outside the organization of the transport service provider. Examples include vehicle data, mileage, fuel consumption, load factors, etc. 5. Monitoring the environmental footprint 14 Business level innovations

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations How are these BLI’s implemented? iCargo provides business applications to implement the business level innovations (WP3). generic components to support data exchange between organizations and intelligent cargo object (WP2). an infrastructure (hybrid service network) for implementing these applications and components (WP4). Overall scenario In the business ecosystem an organization has to connect to others in order to do business. To make this connection, it has to make interoperability agreements covering aspects like the technologies and standards used and the type of interactions supported. Organizational level: an organization publishes its business services. These services describe the logistic services offered and/or requested. Service level: Based on these services a logistic chain can be composed. iCargo allows for the comparison of different chains, composed of services by different providers. Transaction level: After a chain is composed, operational planning needs to take place. For instance, a specific booking is required. In these transactions more detailed information about the planned execution of a service is exchanged. Monitoring level: Entities in the logistic chain provide a lot of data, which might include measurements, signals, etc. This data needs to be interpreted (to become meaningful to business) and distributed to the organizations that are involved in the related services. For example: the position of a truck might trigger a delay message to (multiple) clients with cargo on that particular truck.

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Execution LSP 1 Cargo Item-x1 Services BSD 2 Transaction TEP Organisation LSP 2 LSC 1 LSC 2 Interoperability agreements TSD 1 Actual 3 CS 2 ActuaL 1 BSD 1 Logistic Chain Composition based on services TEP 44-5 Order X-YYY Order X-YYY Operational planning Truck 99-aa2 TS Execution and monitoring TS GII From profiles to services From services to transactions From plans to entities

Intelligent Cargo in Efficient and Sustainable Global Logistics Operations Common Framework 17 Built on the UN/CEFACT core components Promoted for international standardisation