Freight Transport Management Lecture Slides 2009 - Flash Content Excluded

Intelligent Transport
Systems
Lecture 2 – Logistics & Freight
Management
TNK052/TNSL06
Lars Backåker
PhD. Student ITN/KTS Linköping University
Lars Backåker
• Firefighter, Military Services Agency Skövde
•
• Communication and Transport Systems, LIU
Norrköping
•
• Operations Management and Logistics,
Eindhoven
•
• Inventory Record Accuracy, Volvo CE
Eskilstuna
•
• Research Assistant, LIU Norrköping
Lars Backåker Ph.D Student
•
2009-08-13
ITN/KTS Linköping University
2
Slide colours
New chapter Chapter content Example / Literature

2009-08-13 3
Agenda

2009-08-13 4
Part 1
• Introduction

2009-08-13 5
Purpose
• Provide insights and voke interest
into possibilities of ITS-applications
within the logistic area
•
•
•
•

2009-08-13 6
Learning outcomes
• Basic knowledge about available
technologies
• Benefits of ITS within Logistics
• Drawbacks and complexities
(Technology)
• Ongoing research
• Cases studies (possibilities)
•
2009-08-13 7
Definitions
• Intelligent Transport Systems (ITS)
• “ITS are the marriage of information and
communication technologies with the vehicles
and networks that move people and goods.
Intelligent because they bring extra knowledge
to travellersand operators”
•
• Logistics
• ”Logistics is the process of strategically
managing the procurement, movement and
storage of materials, parts and finished
inventory (and related information flows)
through the organization and its marketing
Large scope
channels -> Total
in such a waycost that current and future
Christophers M. Logistics and Supply Chain
Management
http://www.infrastructure.gov.au/department/annual_report/2001_2002/
since 1960are maximized through the cost-
profitability Glossary.aspx
2009-08-13 8
effective fulfilment of orders.”
The need for ITS
• Increased complexity of supply
chains
•
• Continiously increasing transport
volumes
•
• Increased demand and specific
requirements from end-customers
http://nui.epp.eurostat.ec.europa.eu/nui/show.do?
dataset=tran_hv_frtra&lang=en
2009-08-13 9
Missions & Visions
and logistics
ability and market share.”
performance, grid reliability and productivity whilst saving energy and lowering environmental impact.
port-related products
product, systems andoffering.
and service services of superior quality, safety and environmental
omers – particularly those that are global brands – have increasingly rigorous expectations of their supp
A lot
and skilled people and of companies
offering employees anset up high
attractive, expectations
global work environment.
siness ethics are at the core of our market offering and our own operations.
on themself
ering highest quality express and logistics solutions based on strong local expertise combined with the
tomers to use electrical power efficiently, to increase industrial productivity and to lower environmenta
Volvo ABB DH
Group Group L
2009-08-13 10
Consider…
Leadtime
reduction
Bullwhip Demand
fluctations
effect Inventory
Fuel levels
efficiency
Prevent theft and
Supply chain counterfieting
synchronization
Gods
High delivery
precision tracking
Sufficient inventory record
Total cost accuracy
reduction

2009-08-13 11
ITS enables
• ITS enables superior track and trace
applications
•
• ITS enables visibility and transparency
through out supply chains
•
• ITS enables real time monitoring and
support applications
•
• ITS enables reduced energy
consumptions and reduced
environmental impacts
2009-08-13
12
Visibility & Transparency
Example
• Cisco
• 1999: Increase in demand for
computer network products
•
• 2001: Demand suddenly drops

2009-08-13 13
Part 2
• Technologies

2009-08-13 14
Technologies
• Well known and since long time ago
Do you remember the definition?
established techniques enables

”…information and commuication technol
Intelligent Transport Systems:

– Barcodes
– Radio Frequency Identification (RFID)
– Global Positioning System (GPS)
– Global System for Mobile
Communications (GSM)
– General Packet Radio Services (GPRS)
– Databases (Storage capabilities)
2009-08-13 – Etc.
15
Hardware and Software
• To establish an ITS system the software
is just as important as the hardware
•
• When hardware is combined with
”intelligent software” limitations
becomes few
•
• For now, several applications/systems
associated with freight management
and logistic processes in general are
constructed within a diversity of areas
•
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16
Intelligent software Example

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Literature
• More information
• Article 3
•
• Content
• Transportation Quality Monitor Using
Sensor Active RFID
•
• Authors
• Kohei and Masashi
• Lars Backåker Ph.D Student
2009-08-13 18
•
Barcodes
• Barcodes and related numbering standards
are still the most widely accepted method
for product identification (mechanized
inventory)
•
• Major numbering standards:

– UPC (Universial Product Code)
– EAN (European Article Numbering)
•
• Barcodes offers a relative low cost for

tagging products, which makes it
economically defencible, even when
attatched on ”non-returned” products,
boxes and loading
2009-08-13 units ending up wasted19
Barcodes
• Reading data from barcodes requires
line-of-sight
•
• However, if in line-of-sight, scanners in
more expensive segments can read
barcodes from a distance of several
meters
•
• Briefly, data in barcodes is stored using
different line patterns and can be
2009-08-13 20
read using infra-scanners
Radio Frequency
Identification
• Description
• Electronic identification and
positioning technique. RFID is
considered to be a epic leap in
functionality and performance in
comparison to barcode technology.
•
• Especially since RFID can operate

without line-of-sight, making it
perfect for supply chain activities
•2009-08-13 ITN/KTS Linköping University
21
Radio Frequency
Identification
• Technology
• In general the system consists of
several transponders and fixed
data readers communicating by the
use of electromagnetic waves.
•
• The
trantransponder
pon (a.k.a tag) has
both
s thed possibility
tran to transmitt
pon and
respond. s d
2009-08-13 22
Radio Frequency
Identification
• Tag types
• Today there are two types of tags
known as active tags and passive
tags.
•
Kaul C. and Korten S.

(2008)
Lars Backåker Ph.D Student Shepard S. (2005)
2009-08-13 23
Literature
• Article 4, 5 and 9
•
• Content
• Impacts of RFID on supply chain
dynamics and costs.
•
• Authors
• Lee, Cheng and Leung
• Ustundag and Tanyas
• Coltman and Gadh
•2009-08-13 Lars Backåker Ph.D Student
24
Addional technologies
• GSM
• GPRS
• Wireless networking
• GPS

2009-08-13 25
Challenge One
(ITS – System Overview)
Raw Production Distributi Retaile

materials unit on rs
centers

2009-08-13 26
Well known issues of ITS
within Logistics
• Logistic activities puts special requirements on the
implementation of RFID equipment :
– Housing for tags
– Data encryption
– Personal integrity
•
• Also the placement of ITS equipment is crucial for keeping

down unnecesary maintain costs introduced with the ruff
handling of e.g loading units
•
• ROI is considered to be low and sharing investments cost

between actors is allways a major concern
•
• Barcodes can only be written once but read as many

times wanted (write-once-read-many)
•

2009-08-13 – 27
Wal-Mart Example
• 2003 : Implementation decision

•
• 2005: Reported massive investment
costs and no financial benefits
•
• 2007: 4 distribution centers running
RFID, mentioned to experience
benefits of the implemenation
• S. Mueller and C. Tinnefeld
(2007)
2009-08-13 28
•
• Example of possibilities

2009-08-13 29
Overview
• The following ITS case studies are
briefly presented:
– Farm Management
– Distribution
– Food Processing Industry
– Flight Industry
– Forest Industry
– Further projects of interest
–
2009-08-13
– Lars Backåker Ph.D Student
30
Farm Management
• Description
• ITS-systems for increased
effectiveness of diary farm
production
•
• Logistic activities
– Material administration
– Production planning and monitoring
– Quality control
2009-08-13 31
• ITN/KTS Linköping University
Farm Management
• Need for ITS
– Positioning of animals is a crucial
functionality for production efficiency
– Animal identification key issue for
automated processes
– Constant monitoring of individual animal
data
– Automatic alerts, feeding, production loggs
etc.
•
• Electronic storage of individual cow
data. SystemsITN/KTS
2009-08-13 where cows can be
Linköping University
32
Farm Management Example
Data can be added manually from a interface or automatically using sensors
Identify Monitor cow Automatic Automatic

cows data recording of feeding
Activi
immediately on production according to

ty
display volumes (milk milk production

litres) data, weight
etc.
PDA-unit PDA-unit/PC RFID tags in RFID tags in
equiped
Technolo
connected combination combination

with RFID- (wireless/wired with different with different
reader ) to database type of type of
gy
sensors sensors,
databases and
IS

2009-08-13 33
Literature
• Article 1
•
• Content
• Two Australian case studies
conducted for analyzing RFID-impacts
on diary farms
•
• Authors
• Trevarthen and Katina
•
2009-08-13
34
Distribution
• Description
• ITS-systems for increased safety
and reduced environmental impact in
distribution processes
•
– Quality assurance (e.g correct
temperature)
– Product protection
2009-08-13
• 35
Distribution
• Need for ITS
– Energy consumption must be reduced
– Big focus on driver safety
– Vehicle and gods theft prevention is
important
•
• Several projects on driving safety and
advance driving assistance systems
(ADAS), technologies for car theft
prevention and navigation
2009-08-13 36
Distribution Example
Provide route Monitor fuel Vehicle theft Managing

guidance and efficiencey and and damage vehicle
Activi
delivery provide driving prevention distance, speed

ty
information recommendatio etc. while

ns driving
Invehicle GPS E.g PDA-unit Advance ABS, ACC, ISA

unit
Technolo
with software sensoring and

and sensors alert systems
for eco-driving
gy

2009-08-13 37
Food Processing Industry
• Description
• ITS-systems for food traceability
and monitoring throughout the
supply chain
–
– Quality control => Safety issue!
•2009-08-13 ITN/KTS Linköping University
38
• Need for ITS
– Customers want to know what they are
eating and the have knowledge about
the foods origin
– Effective inventory management
requires visibility
– High quality of food is becoming crucial
for good business (e.g monitoring
temperature)
•
• Information sharing and traceability
possibilities across full range of supply
chains members to increase safety and
2009-08-13
39
Example
All the way down to individual cuts
Identification of Inventory Tracing food Monitoring of

individual management backwards and food quality
Activi
animals according to forwards in (temperature,

ty
already at current stock supply chain box sealing

farmer levels etc.)
RFID-tagging RFID provides Databases RFID

with a
Technolo
accurate with logged equipment

diversity of information information configured
system about actual from RFID-tags with relevant
gy
configurations inventory sensors, PDA-

levels units and
databases
E. Abad a, F. Palacio b, M. Nuin c, A. González de Zárate c, A. Juarros a, J.M. Gómez b,
S. Marco b (2009)

2009-08-13 40
Literature
• Article 2, 6 and 7
•
• Content
• Introducing networked RFID and real time
monitoring in supply chains
•
• Authors
• Asimakopoulos, Louvros and Triantafillou
• P. Jones
• Osvald and Zadnik Stirn
•2009-08-13 Lars Backåker Ph.D Student
41
Flight Industry
• Description
• ITS-systems within the flight
industry to increase customer service
–
– Freight management (luggage)
•

2009-08-13 42
Flight Industry
• Need for ITS
– Traceability
– Visibility (inventory management)
– Positioning
– Identification
•
• Impacts and benefits of RFID-
systems for total baggage control
•
2009-08-13 43
Flight Industry Example
Luggage Luggage Monitoring Sending

markup tracking luggage information to
Activi
delivery customers
concering
ty
process
dealys and
arrival times
RFID, PDA/PC RFID can Databases RFID in
interface
Technolo
provide with logged combination

accurate information with
information from RFID-tags mobilphones,
gy
about current database

luggage technology,
position SMS

2009-08-13 44
Literature
• Article 8
•
• Content
• Tells the story of Delta Airlines and their
struggling to stay in business. Also puts
barcode technology in relation to RFID
technology
•
• Authors
• Wyld, Jones and Totten
•
2009-08-13 45
Forest Industry
• Description
• ITS-systems all the way from forest
harvesting to finished products
–
– Backtracing (origin of timber)
– Positioning and mapping of harvester
advancement
2009-08-13 46
Forest Industry
• Need for ITS
– Traceability
– Visibility (inventory management)
– Monitoring (e.g temperature)
•
• Informations sharing and
traceability possibilities across full
range of supply chains members
•
2009-08-13 47
Forest Industry Example
Manual or Forwarder is Wood piles are Material

highly collecting wood transported to administration
Activi
mechanized piles the production in production

and delivery
ty
harvesting unit
process
RFID-tags, Fixed RFID- RFID, ADAS- RFID,

PDA-units and
Technolo
readers on the systems, GPS databases

attachment loading unit of navigation etc.
devices the forwarder
gy

2009-08-13 48
Literature
• Article 10
•
• Content
• Case studie of RFID implementation
within the forest industry. Possibilites
and complexities
•
• Authors
• S. Korten and C . Kaul
•
2009-08-13 49
Further projects of
interest
occured due to products beeing missplaced
Secure Inventory Levels

• MIT The Lunar Network (Supply
Chain)
(Correct product at the right place in the ri
•
Interplanetary Supply Chains (
http://spacelogistics.mit.edu/research.htm )
• C - I. Hsu, H - H. Shih, W - C. Wang

• Applying RFID to Reduce Delay in Import Cargo Customs
Clearance Process
http://spacelogistics.mit.edu/commer
ibility• is essential for succes! cial.htm
t inventory levels, are products intact and ready to use)

2009-08-13 50
Challenge Two
(Logistic Activities witin harbours)

2009-08-13 51
•
• Summary

2009-08-13 52
Final Thoughts
• Barcodes still has the advantage of
being inexpensive, which makes
them preferable for non-returnable
and consumable products
•
• Though, RFID (when costs are cut)
will enable several additional
functionalities and opportunities
within the logistic area compared to
barcodes
2009-08-13
53
Final Thoughts
• Therefore, RFID is suitable for e.g
container tracking, tracing and
sensing
•
• Especially when loading units are
reused (circled) in the supply chain
•
• Concerning choice of tag types the
passive once are still prefered by
the industry
2009-08-13
54
Final Thoughts
• If you are to believe journalists, the
implementation rate of RFID is
slower and lower than expected
• [Link]
•
• Research activity within the area of

ITS is greater than ever and the ITS
World congress is held here in
Stockholm in late September
2009-08-13 55
Interpretati
ons?
Feedba Commen
ck?
Reasoni ts?
Addition
ng?
Insigh als? Notic
ts? e?
Note
s?
Criticis
m?
Reflectio
ns?
Questio
ns?
Relatio
ns?
Revie
w?
Issue
s?
Point
s?

2009-08-13 56
Summary of literature
1. A. Trevarthen, K. Michael
• The RFID-Enabled Diary Farm: Towards Total Farm Management
• 2. G. Asimakopoulos, S. Louvros, V. Triantafillou
• METATRO: A Real Time RFID Enabled Haulage Monitoring System for Perishable Comestibles
• 3. K. Mizuno, M. Shimizu
• Transportation Quality Monitor Using Sensor Active RFID
• 4. Y. M. Lee, F. Cheng, Y. T. Leung
• Exploring the Impact of RFID on Supply Chain Dynamics
• 5. A. Ustundag, M. Tanyas
• The Impacts of Radio Frequency Identification (RFID) Technology on Supply Chain Costs
• 6. P. Jones
• Networked RFID for use in the Food Chain
• 7. A. Osvald, L. Z. Stirn
• A Vehicle Routing Algoritm for the Distribution of Fresh Vegetables and Similar Perishable Food
• 8. D. C. Wyld, M. A. Jones, J. W. Totten
• Where is my Suitcase? RFID and Airline Customer Service
• 9. T. Coltman, R. Gadh
• RFID and Supply Chain Managemnet: Introduction to the Special
• 10. S. Korten, C. Kaul
• Application of RFID (Radio Frequency Identification) in the Timber Supply Chain
•
•
2009-08-13
•
57
•

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New chapter Chapter content Example / Literature

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

established techniques enables

Intelligent Transport Systems:

Lars Backåker Ph.D Student

• Major numbering standards:

• Barcodes offers a relative low cost for

• Especially since RFID can operate

Kaul C. and Korten S.

Lars Backåker Ph.D Student

Raw Production Distributi Retaile

Lars Backåker Ph.D Student

• Also the placement of ITS equipment is crucial for keeping

• ROI is considered to be low and sharing investments cost

• Barcodes can only be written once but read as many

Lars Backåker Ph.D Student

• 2003 : Implementation decision

Lars Backåker Ph.D Student

Data can be added manually from a interface or automatically using sensors

Identify Monitor cow Automatic Automatic

immediately on production according to

display volumes (milk milk production

connected combination combination

Lars Backåker Ph.D Student

Provide route Monitor fuel Vehicle theft Managing

delivery provide driving prevention distance, speed

information recommendatio etc. while

Invehicle GPS E.g PDA-unit Advance ABS, ACC, ISA

with software sensoring and

Lars Backåker Ph.D Student

All the way down to individual cuts

Identification of Inventory Tracing food Monitoring of

animals according to forwards in (temperature,

already at current stock supply chain box sealing

RFID-tagging RFID provides Databases RFID

accurate with logged equipment

configurations inventory sensors, PDA-

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Luggage Luggage Monitoring Sending

provide with logged combination

about current database

Lars Backåker Ph.D Student

Manual or Forwarder is Wood piles are Material

mechanized piles the production in production

RFID-tags, Fixed RFID- RFID, ADAS- RFID,

readers on the systems, GPS databases

Lars Backåker Ph.D Student

Secure Inventory Levels

• C - I. Hsu, H - H. Shih, W - C. Wang

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

Lars Backåker Ph.D Student

• Research activity within the area of

Lars Backåker Ph.D Student