EMBRACING COMPLEXITY IN GLOBAL SUPPLY CHAINS GLOBAL SUPPLY CHAIN & LOGISTICS SUMMIT T I M B R O W N M A N A G I N G D I R E C TO R S U P P LY C H A I N & LO G I S T I C S I N S T I T U T E
SUPPLY CHAIN & LOGISTICS INSTITUTE Our Fundamental Pillars
Industry Project Support Sponsored Research Contracts Donation-Supported Projects Capstone & Class Projects PhD Projects MS Analytics, MS SCE – Capstones BSIE – Senior Design Graduate Class Projects
WORLD POPULATION GROWTH (UN)
GLOBAL URBAN POPULATION GROWTH
FUNDAMENTAL CHANGE IN COMMERCE • Diminishing role of retail stores • Delivery of product directly to consumers • Product “definition” includes a service element o When can I get it? • Last mile logistics o Increased complexity!
U.S. E-COMMERCE SALES AS % OF RETAIL SALES
THE AMAZON EFFECT
RAPID FULFILLMENT: SUPPLY CHAIN IMPACT More, smaller DCs (multi-channel facilities), • closer to population centers • Loss of economies of scale => higher total inventory Urban inventory => higher holding costs • • Rapid fulfillment => decrease in efficiency • Real-time congestion information => increased efficiency Historic customer data => • anticipatory/predictive logistics => increased efficiency • Larger carbon footprint
DATA SCIENCES TRENDS CONVERGENCE OF THREE KEY ENABLERS Advances in Computing (Hardware) • Extreme performance via GPU computing • Very small and inexpensive Advances in Algorithms (Software) • New generation of Machine Learning algorithms • Deep Learning and Reinforcement Learning Advances in Sensor Technology (Data) • High-performance and inexpensive sensors • Large amounts of data Courtesy Benoit Montreuil
ADDITIVE MANUFACTURING PROXIMITY PRINTING OF PARTS ON DEMAND hackedgadgets.com MetalFab1 3D Printer: 1.1 M€ • Easy to distribute, near-point-of-use • Inbound Materials Logistics is critical www.shellypalmer.com 3dprint.com Courtesy Benoit Montreuil
AUTONOMOUS TRANSPORTATION PUSH TOWARD DRIVERLESS VEHICLES AND MOBILE ROBOTS www.foxnews.com TechOn – http://techon.nikkeibp.co.jp/english/NEWS_EN/20130227/268437/ - See more at: theloadstar.co.uk http://www.capfalcon.net/2013/03/23/road-convoy-this-is-an-autonomous-driving-of-4-trucks-in- formation/#sthash.392DvjGq.dpuf Autonomous Autonomous Delivery Droids & Drones Cars & Delivery Vehicles Trucks, Platoons/Convoys Courtesy Benoit Montreuil
INTRALOGISTICS AUTOMATION & ROBOTICS TRENDS FROM HARD STORAGE/RETRIEVAL AUTOMATION TO SMART. MOBILE & SCALABLE FULFILLMENT Amazon FC– Rack on Kiva system shuttles www.businesswire.com Voice & Light Picking Robot-to-human & automated Mobile robots Collaborative robots Voice recognition order fulfillment Robotic order Human robot interfaces Human augmentation sequencing & unitizing Courtesy Benoit Montreuil
BLOCKCHAIN IN THE SUPPLY CHAIN REVERSE SUPPLY CHAINS, Issues and Analysis, Edited by Surendra M. Gupta
HARSH CLAIM The way physical objects are moved, stored, realized, supplied and used throughout the world is economically, environmentally and socially inefficient and unsustainable Lifestyle E-Commerce World Trade Courtesy Benoit Montreuil
PHYSICAL INTERNET CONCEPT • Open market goods transport, storage, realization, processing • “Black box” modular containers: transport handling & packaging • New generation handling, transportation and storage • Protocols for seamless open asset sharing & consolidation • Critical mass: vast community of users • Service provider certification and ratings-by-users • Continuous tracking & monitoring • Smart, fact-based proactive, distributed decisions By Benoit Montreuil & Russ Meller
ORDER-OF-MAGNITUDE IMPROVEMENTS Without containers With containers Handling cost / 14 Maritime trip cost / 4.5 Trucking cost / 1.5 Sea shipping evolution over 50 years Original drawing by Benoit Montreuil & Eric Ballot 2014-09-13
ENCAPSULATING GOODS Protect the encapsulated d objects Original drawing by Benoit Montreuil & Eric Ballot 2014-09-13
CONTAINERS AT ALL SCALES 12m Transport Containers 6m Modular fit in π -certified vehicles 4.8m 3.6m 2.4m 1.2m 1.2m 0.8m 0.6m Handling Containers 0.4m π -Boxes 0.3m 0.2m Modular fit in transport containers 0.1m 1.2m 0.6m 0.48m 0.36m Packaging Containers 0.24m π -Packs 0.12m Modular fit in handling containers Montreuil B.. E. Ballot. W. Tremblay (2015). Modular Design of Physical Internet Transport. Handling and Packaging Containers . Progress in Material Handling Research Vol. 13 . Ed. J. Smith et al.. MHI. Charlotte. NC. USA. to appear.
HYPERCONNECTED LOGISTICS FACILITIES New generation of logistics facilities enabling seamless, fast, cheap, safe, reliable, distributed, multimodal transport and deployment of π -containers across the Physical Internet Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2014). Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub , p. 379-431; Ballot, E., B. Montreuil & C. Thivierge (2014). Functional Design of Physical Internet Facilities: A Road-Rail Hub, p. 28-61; In Progress in Material Handling Research Vol. 12 , Ed. B. Montreuil, A. Carrano, K. Gue, R. de Koster, M. Ogle & J. Smith, MHI, Charlotte, NC, USA.
HYPERCONNECTING TRANSPORTATION Illustrated through semi-trailer transport from Québec City to Los Angeles Québec 20 Montréal 20-401 Alexandria Bay, US border 81 Syracuse 90 Buffalo 90 Cleveland 71 Columbus 70 Indianapolis 70 St-Louis 44 Springfield Proposed 44 Current Inter- Tulsa 44 P2P connected Oklahoma City 40 Distance travelled one-way: 5030 km 5030 km Amarillo Drivers: 1 17 40 Trucks: 1 17 Albuquerque 40 Trailer: 1 1 Flagstaff 40 One-way driving time (h): 48 51+ Needles 40 Return driving time (h): 48+ 51+ Barstow Total time at transit points (h): 0 9 15-10 Total trailer trip time from Quebec to LA (h): 120 60+ Los Angeles Total trailer trip time from LA to Quebec (h):120+ 60+ Total trailer round trip time (h): 240+ 120+ Average driving time per driver (h): 96+ 6 Average trip time per driver (h): 240+ 6.5
HYPERCONNECTED CROWDSOURCED DELIVERY Courtesy Benoit Montreuil
HYPERCONNECTED CROWDSOURCED DELIVERY Having people carry modular containers Using public transit. bicycles. cars. vans… in town or across regions Exploiting smartphone–based apps Pickup packs at hub near departure Deliver them at hub near arrival, making money Others carry them further toward destination Expanding for freight way beyond current capabilities of Uber for people
THANK YOU timbrown@gatech.edu
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