1. Sergio Barbarino Research Fellow P&G Supply Network Innovation Center.
And what happens inside the Containers? Port Logistics in the Physical Internet Era
Sergio Barbarino
Research Fellow P&G
Supply Network Innovation Center.

3. Physical
Internet

4. Sustainable Supply Chains
What do the stakeholders want in Transport and Logistics?
PEOPLE / Consumers
Get and use the products they want, when they want them.
E-commerce, Store and shelf availability, full visibility, sustainability
Increase satisfaction
PLANET / Society
Increase economic growth with reduction of environmental impact
Reduction of energy utilization
Increased sustainability
PROFIT / SHIPPERS ( Manufacturers/ retailers/ trade) and Logistic Service Providers
Increase customer satisfaction (B-to-B and B-to-C)
Increase service level
Reduce cost
Reduce environmental impacts in the supply chain
Full asset utilization

7. Systemic Approach: Systems of Systems
Further develop implementation plans for the roadmaps and monitoring
Follow up past & current projects and best practices: what has been accomplished, which services and products introduced in the market and how this relates to the roadmaps.
Deeper analysis in the sense of what changes the roadmaps will imply, which are the barriers and what can trigger the change industry take up (including economic aspects).

8. TRANSPORT COLLABORATION
But just Data crunching is not enough….You also need to agree how to share the costs and the benefits of the collaboration.
End 2012 the Economy Nobel Prize went to Mr . Shapley that has solved the issue of cost/benefit allocation using collaborative game theory
We have developed the concept to a ready applicable framework in the project CO3. and we are now working on a vision for a totally open and efficient Logistic network: the Physical Internet

9. Load efficiency is tough if you stay alone
This is bad for both profitability and environment
Full, but only 25% of weight limit
60% empty, but at weight limit

10. Laundry and/or Shampoo
“Cube-Fill” Concept
Potato Chips
Volume 90%
Weight 20%
Diapers
Volume 90%
Weight 20%
Laundry and/or Shampoo
Volume 57%
Weight 100%
Container Limit = 87m3 & 24 tonnes
Overall efficiency = 80% weight & 80% volume

11. CargoStream: making collaboration easy
DATA SHARING PLATFORM
That’s where CargoStream comes in. CargoStream acts as a data sharing platform where all actors can share their data with the community in the way they want.
Shippers will share transport needs via a copy of their transport instructions.
Logistic Service providers will be able to offer their services via Apps on the platform
Terminals and operators will share their schedules, their lanes, their timetables
Value Added Service Providers or Optimizers will give insights on possible matches between overlapping volume of different shippers
SHIPPERS
LOGISTICS SERVICE PROVIDERS
INTERMODAL OPERATORS
VALUE ADDED
SERVICE PROVIDERS
TERMINALS AND RAIL, BARGE OR SHORTSEA OPERATORS
OPTIMIZERS, 4PL

12. SYNCHROMODALITY FROM A ONE LEAD TIME MODEL WITH PLANT STOCK
TO A MULTIPLE LEADTIME MODEL WITH PIPELINE STOCK

13. Current best industry practice
Ship the stable demand via reliable slow mode
About 20-30% of freight volume
*Dong, C., Boute, R., McKinnon, A., and Verelst, M., Investigating synchromodality from a supply chain perspective. Unpublished working paper.
+ Gijsbrechts, J., Boute, R., Synchronization of intermodal freight shipments in the sharing economy. Unpublished working paper.

14. With synchromodality a breakthrough modal shift
Total logistics costs (transportation and inventory) optimization allows to increase slow mode shift from 20-30% to 60-70%

15. OBOR opportunity
Historically P&G has been focused on Product Innovation (i.e. Synthetic Detergent, Diapers, Toothpaste with Fluoride, etc).
We also pioneered commercial innovation (i.e. Soap Operas, Marketing, Joint Business Planning).
Now we are adding a third plank to ensure holistic approach. We call this Supply Innovation.
It is how we are innovation our Supply Network capabilities. The following slides show the Supply Innovation strategy, strategic themes, and examples of innovations within this area.
In P&G R&D terms this is equivalent to a Supply Chain Transformative Platform Team (TPT)
Arrival first DB Schenker Rail freight train Zhengzhou to Hamburg-Billwerder, 2 August Left-right: Y. Konuspayev (Caspian embassy); A. Hedderich (chairman management DB Schenker Rail); K. Fleckenstein (MEP); Dr. R. Grube (DB chairman); Yi Ma (major of Zhengzhou); F. Horch (Senator transport Hamburg).

16. Eurasian Freight Corridors – A Synchromodal Opportunity
Freight traffic China-Europe
~ 90% Sea/40 days
< 10% Air/1 day
~ 1% Railway/ ~15 days
~ 30 freight trains per week

17. International PI Conference

18. Use your capacity, share your assets
MAY THE LOAD BE WITH YOU