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Transcript of Physical internet manifesto 1.10 2011 08-19 english bm
2011-08-19, 1/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet Manifesto
Transforming the way physical objectsare handled, moved, stored, realized, supplied and used,
aiming towards global logistics efficiency and sustainability
Professor Benoit Montreuil
Canada Research Chair in Enterprise EngineeringCIRRELT Interuniversity Research Center
on Enterprise Networks, Logistics and TransportationLaval University, Québec, Canada
Version 1.10: 2011-08-19
2011-08-19, 2/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
AcknowledgementsThe Physical Internet Manifesto has greatly benefited from
the contribution of esteemed colleaguesAmerica
CIRRELT Research Center:CIRRELT Research Center:
• Teodor Crainic - UQAM
• Michel Gendreau - Université de Montréal
• Olivier Labarthe, Mustapha Lounès & Jacques Renaud - Université Laval
CICMHE, CollegeCICMHE, College--Industry Council for Material Handling Education:Industry Council for Material Handling Education:
• Russ Meller – University of Arkansas
• Kevin Gue & Jeff Smith – Auburn University
• Kimberley Ellis – Virginia Tech
• Leon McGinnis – Georgia Tech
• Mike Ogle – MHIA
Europe
• Éric Ballot, Frédéric Fontane – Mines ParisTech
• Rémy Glardon – EPFL
• Rene De Koster – Erasmus University
• Detlef Spee – Fraunhofer Institute for Material Flow and Logistic
2011-08-19, 3/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Macroscopic Positioning
CLAIMThe way physical objects are
moved, handled, stored, realized, supplied and usedthroughout the world
is neither efficient nor sustainableeconomically, environmentally and socially
GOALEnabling the global efficiency and sustainability
of physical object movement, handling, storage, realization, supply & usage
VISIONEvolving towards a worldwide Physical Internet
2011-08-19, 4/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Inspiration for the Physical Internet Vision
• A great front page one-liner
– Interesting yet mainstream supply chain articles
– Nothing like what I perceiveda Physical Internet should be
• I rapidly got passionate about the questionWhat should or could be a full blownPhysical Internet?
– What would be its key features?
– What capabilities would it offer that are not achievable today?
• Another question surfaced rapidly:Why would we need a Physical Internet?
2011-08-19, 5/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency and unsustainability claim
The way physical objects aremoved, handled, stored, realized, supplied and used throughout the world is inefficient and unsustainable
economically, environmentally and socially
Why Do we need a Physical Internet ?
2011-08-19, 6/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
ECONOMICLogistics: 10-20% burden on GDP of most countries
The worldwide logistics cost grows faster than world trade
ENVIRONMENTOne of the heaviest polluters, energy consumer and greenhouse gas generators
Growing negative contribution while nations’ goals aims for heavy reductions
SOCIALLack of fast, reliable and affordable accessibility and mobility
of physical objects for the vast majority of the world’s population
Too often precarious logistic work conditions
Logistics inefficiency and unsustainability
Why do we need to change ?
2011-08-19, 7/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Inefficiency and unsustainability symptoms Leading Us Toward Hitting the Wall Real Hard
1. We are shipping air and packaging2. Empty travel is the norm rather than the exception3. Truckers have become the modern cowboys
4. Products mostly sit idle, stored where unneeded,yet so often unavailable fast where needed
5. Production and storage facilities are poorly used
6. So many products are never sold, never used7. Products do not reach those who need them the most8. Products unnecessarily move, crisscrossing the world
9. Fast & reliable multimodal transport is a dream or a joke10. Getting products in and out of cities is a nightmare11. Networks are neither secure nor robust
12. Smart automation & technology are hard to justify13. Innovation is strangled
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
2011-08-19, 8/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Logistics inefficiency and unsustainability symptomsLeading Us Toward Hitting the Wall Real Hard
1. We are shipping air and packaging– Trucks and containers are often half empty at departure,
with a large chunk ofthe non-emptiness being filled by packaging
2. Empty travel is the norm rather than the exception– Vehicles and containers often return empty,
or travel extra routes to find return shipments
– Loaded vehicles get emptier and emptier as their route unfolds from delivery point to delivery point
3. Truckers have become the modern cowboys– So many are always on the road,
so often away from home for long durations
– Their family and social life is precarious,as well as their personal health
– In general, logistic operators and material handling personnel have similar precarious positions
2011-08-19, 9/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
4. Products mostly sit idle,stored where unneeded, yet so often unavailable fast where needed
– Manufacturers, distributors, retailers and usersare all storing products, often in vast quantitiesthrough their networks of warehouses and distribution centers,yet service levels and response times to local users are constraining and unreliable
5. Production and storage facilitiesare poorly or badly used
– Most businesses invest in storage and/or production facilities which are lowly usedmost of the times, or yet badly used,dealing with products whichwould better be dealt elsewhere,forcing a lot of unnecessary travel
Logistics inefficiency and unsustainability symptomsLeading Us Toward Hitting the Wall Real Hard
2011-08-19, 10/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
6. So many products are never sold, never used– A significant portion of consumer products that are
made never reach the right market on time, ending up unsold and unused while there would have been required elsewhere
7. Products do not reach thosewho need them the most
– This is specially true in less developed countries and disaster-crisis zones
Rusting new cars in disused airfieldRusting new cars in disused airfield
Logistics inefficiency and unsustainability symptomsLeading Us Toward Hitting the Wall Real Hard
2011-08-19, 11/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
8. Products unnecessarily move, crisscrossing the world– Products commonly travel
thousands of miles-kilometerswhich could have been avoidedby making or assembling itmuch nearer to point of use
9. Fast & reliable multimodal transportis a dream or a joke– Even though there are great examples, in
general synchronization is so poor, interfaces so badly designed,that multimodal routes are most often time and cost inefficient and risky
Logistics inefficiency and unsustainability symptomsLeading Us Toward Hitting the Wall Real Hard
2011-08-19, 12/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
10. Getting products in and out of citiesis a nightmare
– Most cities are not designed and equippedfor easing freight transportation, handling and storage,making the feeding of businesses and users in cities a nightmare
11. Networks are neither secure nor robust– There is extreme concentration of operations in a
limited number of centralized production and distribution facilities, with travel alonga narrow set of high-traffic route
– This makes the logistic networks and supply chains of so many businesses, unsecure in face of robbery and terrorism acts, and not robustin face of natural disasters and demand crises
Logistics inefficiency and unsustainability symptomsLeading Us Toward Hitting the Wall Real Hard
2011-08-19, 13/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
12. Smart automation & technologyare hard to justify– Vehicles, handling systems and operational facilities
have to deal with so many types of materials, shapes and unit loads, with each player independently and locally deciding on his piece of the pie
–– Hard to justify smart connective (e.g. RFID) Hard to justify smart connective (e.g. RFID) technologies, systemic handling and transport technologies, systemic handling and transport automation, as well as smart collaborative piloting automation, as well as smart collaborative piloting softwaresoftware
13. Innovation is strangled– Innovation is bottlenecked by lack of generic standards
& protocols, transparency, modularity and systemic open infrastructure
– This makes breakthrough innovation so tough,justifying a focus on marginal epsilon innovation
Logistics inefficiency and unsustainability symptomsLeading Us Toward Hitting the Wall Real Hard
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Economical
Environmental
Societal
1 Weareshippingairandpackaging2 Emptytravelisthenormratherthantheexception3 Truckershavebecomethemoderncowboys
4Productsmostlysitidle,storedwhereunneeded,yetsooften
unavailablefastwhereneeded5 Productionandstoragefacilitiesarepoorlyused6 Somanyproductsareneversold,neverused7 Productsdonotreachthosewhoneedthemthemost8 Productsunnecessarilymove,crisscrossingtheworld9 Fast&reliableintermodaltransportisstilladreamorajoke10 Gettingproductsinandoutofcitiesisanightmare11 Networksareneithersecurenorrobust12 Smartautomation&technologyarehardtojustify13 Innovationisstrangled
Unsustainabilitysymptoms
Mapping inefficiency & unsustainability symptoms to economical, environmental and societal facets
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Eliciting the Overall Goal TowardGlobal Logistics Efficiency and Sustainability
Societal goalSustainably and significantly increase the quality of lifeof the logistics workers and the world’s populationby improving the timely accessibility and mobility of physical objects
Environmental goalSustainably reduce by an order of magnitude the logistics-inducedglobal greenhouse gas emission, energy consumption and pollution
Economic goalSustainably reduce by an order of magnitudethe global economic burden of logisticswhile unlocking huge gains in business productivity
Note: Logistics is hereafter used in its broad sense notably including transportation, handling, storage,
supply, realization (production, assembly, finishing, personalizing, recycling) and usage
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Digital InternetExploiting the Information Highway Metaphor
When looking for a wayto conceptualize how it should transform itself,
it relied on a physical transport and logistics metaphor:Building the information highway
Decades ago the information & communications technology communitywas stuck in a huge inefficient and unsustainable tangle
due to millions of unconnected computers
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
They have achieved their goal and went farther,reshaping completely the way
digital computing and communication are now performed
They have invented the Internet, leading the way to the World-Wide Web
They have enabled the building ofan open distributed networked infrastructure
that is currently revolutionizingso many facets of our societal and economic reality
The Digital InternetExpanding Beyond the Information Highway Metaphor
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Essence of the Digital Internet
The Digital Internet is aboutthe interconnection between networks
in a way transparent for the user,so allowing the transmission of
formatted data packetsin a standard way
permitting them to transit throughheterogeneous equipment
respecting the TCP/IP protocol
References: References: Kurose J., Ross K. and Wesley A. “Computer Networking: A Top Down Approach Featuring the Internet”, 3rd edition., July 2004.Kurose J., Ross K. and Wesley A. “Computer Networking: A Top Down Approach Featuring the Internet”, 3rd edition., July 2004.ParzialeParziale L., Britt D.T., Davis C., Forrester J., Liu W., Matthews C. and L., Britt D.T., Davis C., Forrester J., Liu W., Matthews C. and RosselotRosselot N. “TCPN. “TCP--IP Tutorial and Technical Overview”, 2006. IP Tutorial and Technical Overview”, 2006. http://www.redbooks.ibm.com/redbooks/pdfs/gg243376.pdfhttp://www.redbooks.ibm.com/redbooks/pdfs/gg243376.pdf“Interconnection of access networks, MANs and WANs “, “Interconnection of access networks, MANs and WANs “, http://images.google.ca/imgres?imgurl=http://www.exfo.com/ http://images.google.ca/imgres?imgurl=http://www.exfo.com/
2011-08-19, 19/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical Internet InitiativeUsing the Digital Internet as a Metaphor for the Physical World
Even though there are fundamental differencesbetween the physical world and the information world,
the Physical Internet initiative aims to exploit the Internet metaphor
so as to propose a vision fora sustainable and progressively deployable
breakthrough solutionto global problems associated with the way
we move, handle, store, realize, supply and usephysical objects all around the world
Montreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
How do we propose to meet
the Logistics Grand Challenge?
2011-08-19, 20/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Exposing Key Featuresof the Physical Internet Vision
Evolving towards a worldwide Physical Internet
2011-08-19, 21/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
What is the Physical Internet?
An open global logistics systemleveraging mobility & supply network
interconnectivityenabled by a standard set of
collaborative protocols, modular containersand smart interfaces
for increased efficiency and sustainability
Current version of a working definition for the Physical Internet, jointly developed by Benoit Montreuil, Eric Ballot and Russ Meller
Physical Internet: PI, π
2011-08-19, 22/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Positioning the Physical Internet
World Wide Web (WWW)
Digital InternetDigital information Packets
Open Supply Web
Physical InternetSmart Physical Packets
Connecting Physical objects through WWW
Smart Networked Objects
Connecting Physical objects through WWW
Internet of ThingsSmart Networked Objects
Smart Grid
Energy Internet
Energy Packets
Original schematics from Benoit Montreuil, 2010, Physical Internet Manifesto, www.physicalinternetinitiative.org
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Key Featuresof the Physical Internet Vision
1. Aim toward universal interconnectivity
2. Aim for a unified multi-scale conceptual framework
3. Aim for webbed reliability and resilience of networks
4. Encapsulate merchandises in world-standard green modular containers
5. Evolve from material to container handling & storage systems
6. Exploit smart networked containers embedding smart objects
7. Activate and exploit an open global mobility web
8. Activate and exploit an open global supply web
9. Deploy capability certifications and open performance monitoring
10. Design products fitting containers with minimal space waste
11. Minimize physical moves and storages by digitally transmitting knowledgeand materializing products as locally as possible
12. Stimulate business model innovation
13. Enable open infrastructural innovationMontreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
2011-08-19, 24/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
1. Aim toward universal interconnectivity
High-performance logistic centers, movers and systems, making it fast, cheap, easy and reliable
to interconnect physical objectsthrough modes and routes,
with an overarching aim toward universal interconnectivity
What are the design aims of the Physical Internet?
2011-08-19, 25/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
2. Aim for a unified multi-scale conceptual framework
Intra-Center Inter-Processor Network
What are the design aims of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Intra-Facility Inter-Center Network
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Intra-Site Inter-Facility Network
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
-transits & transits & -hubshubsIntra-City Inter-Site Network
Toward -enabled
sustainable
city logistics
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2011-08-19, 29/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Québec, CanadaQuébec, Canada
North eastern states,North eastern states,U.S.A.U.S.A.
Intra-State Inter-City Network
-transits & transits & -hubshubs
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
2011-08-19, 30/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
2. Aim for a unified multi-scale conceptual framework
What are the design aims of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
3. Aim for webbed reliability and resilience
The overall Physical Internet network of networksshould warrant its own reliability
and that of the physical objects flowing through it
Network webbing and the multiplication of nodesshould allow the Physical Internet to insure its own robustness
and resilience to unforeseen events
For example, if a node or a part of a network fails,the traffic should be easily reroutable,
as automatically as possible
Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
What are the design aims of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
3. Aim for webbed reliability and resilience
The Physical Internet’s actors, movers, routes, nodes and flowing containers should interact in synergy to guarantee:
– The integrity of physical objects encapsulated in -containers
– The physical and informational integrityof -containers, -movers, -routes and -nodes
– The informational integrity of -actors(humans, software agents)
– The robustness of client-focused performance in delivering and storing -containers.Reference: Peck H., “Supply chain vulnerability, risk and resilience”, Chap. 14 in Global Logistics New Directions in Supply Chain Management, 2007
What are the design aims of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
4. Encapsulate merchandisesin world-standard green modular containers
• Merchandise is unitized as content of a -container andis not dealt with explicitly by the Physical Internet
• Modular dimensions from cargo container sizes down to tiny sizes• Conceived to be easily flowed through various
transport, handling and storage modes and means• Easy to handle, store, transport, interlock, load, unload, construct and
dismantle, compose and decompose• Environment friendly materials with minimal off-service footprint• Smart tag enabled, with sensors if necessary, to allow their proper
identification, routing and maintaining• Various usage-adapted structural grades• Conditioning capabilities (e.g. temperature) as necessary• Sealable for security purposes
What are the enabling constituents of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
-Containers modularized and standardized worldwidein terms of dimensions, functions and fixtures
! "#$%&'&(&)&*+& ! "#$%&'&(&)&*++&
! "#$%&'&(&)&*, +&
X
Y
Z
Illustrative
modular
dimensions
0,12 m
0,24 m
0,36 m
0,48 m
0,6 m
1,2 m
2,4 m
3,6 m
4,8 m
6 m
12 m
B. Montreuil, B. Gilbert
What are the enabling constituents of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Decomposi
on
Composi
on
-Containers designed for the Physical InternetEasy to load, unload, handle, store, transport, seal, snap, interlock, construct,
dismantle, panel, compose and decompose
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010)Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation,in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
What are the enabling constituents of the Physical Internet?
2011-08-19, 36/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Key features of -containers
Snappable
ReusableRecyclable
Easy-to-dismantle
Traceable,Routable
Securable
Original drawing by Eric Ballot, Mines ParisTech,2011-06-27, adapted by Benoit Montreuil
What are the enabling constituents of the Physical Internet?
2011-08-19, 37/72
Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
-container moving and storage means and systems,with innovative technologies and processesexploiting the characteristics of -containersto enable their fast, cheap, easy and reliable
input, storage, composing, decomposing,monitoring, protection and output
through smart, sustainable and seamlessautomation and human handling
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010)Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation,in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
5. Evolve from material to -containertransport, handling & storage means and systems
What are the enabling constituents of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
-container handling and storage systems:– Enable fast and reliable input and output performance– Have seamless interfacing with vehicles and systems
moving products in and out, as well as client software systems for tracking and interfacing with the containers
– Monitor and protect the integrity of -containers– Secure the containers to the desired level– Provide an open live documentation of their specified performance
and capabilities and of their demonstrated performance and capabilities, updated through ongoing operations
This applies in currently-labeled distribution centers, crossdocking centers, train stations, multimodal hubs, seaports, airports, and so on
What are the enabling constituents of the Physical Internet?
5. Evolve from material to -containertransport, handling & storage means and systems
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
6. Exploit smart networked containersembedding smart objects
Exploiting as best as possiblethe capabilities of smart -containers
connected to the Digital Internet and the World Wide Web,and of their embedded smart objects,
for improving performance as perceived by the clientsand overall performance of the Physical Internet
What are the enabling constituents of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet and the Internet of Things
Image: http://www.globetracker.biz/GlobeTracker/News.asp
The Internet of Things is about enabling ubiquitous connection with physical objects equipped with smart connective technology (RFID, GPS, Internet, etc.), making the objects ever smarter and enabling distributed self-control of objects through networks
The Physical Internet is to exploit as best as possible the Internet of Thingsto enable the ubiquitous connectivityof its -containers and -systems
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Multi-segment travel
from Quebec to Los Angeles
Québec
Montréal
Alexandria Bay, US border
Syracuse
Buffalo
Cleveland
Columbus
Indianapolis
St-Louis
Springfield
Tulsa
Oklahoma City
Amarillo
Albuquerque
Flagstaff
Needles
Barstow
Los Angeles
20
20-401
81
90
90
71
70
70
44
44
44
40
40
40
40
40
15-10
Distance travelled one-way: 5030 km 5030 kmDrivers: 1 17Trucks: 1 17Trailer: 1 1One-way driving time (h): 48 51+Return driving time (h): 48+ 51+Total time at transit points (h): 0 9Total trailer trip time from Quebec to LA (h): 120 60+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
CurrentP2P
ProposedDistributed
7. Activate and exploit an open global mobility webFrom point-to-point hub-and-spoke transport to distributed multimodal transport
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Transportation between nodes + Handling within nodes : About Moving Objects
An interconnected set of open unimodal & multimodal hubs, transits & ports
7. Activate and exploit an open global mobility web
Maritime route Highway
Road
Railroad
Open multimodal π-hub & π-transit zone
Open unimodal π-hub & π-transit zone
Open π-PortAir route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
-transit sitesallowing distributed
multi-segment transportthrough the Physical
Internet
:π-containers
:π-carrier
:π-vehicle
:π-bay
B1
B2
B3
B4
B5
B6
B7
B8
B9
B10
C1
C2
C3
C4
C5
C6
C7
C8
C9
V12
V8
V13
V6
Status of ! -carr iers currently in ! -transit"
! -carr ier ! -bay I ncoming deposit Outgoing pickup estimation
! -vehicle T ime ! -vehicle T ime (min, mode, max)
C1 B2 V1 04:35 V14 (06:04, 06:05, 06:15)
C2 B10 V3 05:15 V15 (06:05, 06:09, 06:12)
C3 B7 V4 05:20 V13 (06:04, 06:07, 06:10)
C4 B9 V6 05:35 V11 (06:02, 06:02, 06:02)
C5 B3 V8 05:45 V12 (06:01, 06:01, 06:01)
C6 B4 V9 05:48 V16 (06:10, 06:12, 06:18)
C7 B6 V11 05:55 V19 (06:15, 06:20, 06:30)
C8 B1 V12 05:58 V18 (06:10, 06:15, 06:20)
C9 B10 V13 06:00 V25 (06:20, 06:30, 06:45)
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010)Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation,in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
7. Activate and exploit an open global mobility web
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Water
Road
Road-Water -hubdesigned for enabling
distributed multi-segment intermodal transport
of -containers throughthe Physical Internet
Reference: Montreuil, B., R.D. Meller, E. Ballot (2010)Towards a physical internet: the impact on logistics facilities and material handling systems design and innovation,in Progress in Material Handling Research, Edited by K. Gue et al., Material Handling Industry of America, 23 p., 2010.
7. Activate and exploit an open global mobility web
Ocean, Sea or River
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
8. Activate and exploit an Open Global Supply Web
An open supply web composed of an open distribution web coupled to an open realization web
enabling producers, distributors and retailersto dynamically deploy their -container-embedded products
in multiple geographically dispersed centers,realizing and deploying them
for fast, efficient and reliable response deliveryto distributed stochastic demand
for their products, services and/or solutions
References: References: Montreuil B., Labarthe, O., Hakimi, D., Larcher, A., & Audet, M. Supply Web Mapper. Proceedings of Industrial EnginMontreuil B., Labarthe, O., Hakimi, D., Larcher, A., & Audet, M. Supply Web Mapper. Proceedings of Industrial Engineering and Systems Management, Conference, IESM, , Conference Montréal, Canada, May 13eering and Systems Management, Conference, IESM, , Conference Montréal, Canada, May 13--15, 2009 15, 2009 Hakimi D., B. Montreuil, O. Labarthe, “Supply Web: Concept and Technology”, 7th Annual International Symposium on Supply ChaiHakimi D., B. Montreuil, O. Labarthe, “Supply Web: Concept and Technology”, 7th Annual International Symposium on Supply Chain Mn Management, Conference Toronto, Canada, October 28anagement, Conference Toronto, Canada, October 28--30, 2009Montreuil, B., 30, 2009Montreuil, B., Hakimi, D. , B. Montreuil, O. Labarthe, ”Supply Web AgentHakimi, D. , B. Montreuil, O. Labarthe, ”Supply Web Agent--Based Simulation Platform” Proceedings of the 3rd International ConfBased Simulation Platform” Proceedings of the 3rd International Conference on Information Systems, Logistics and Supply Chain Creating value through green erence on Information Systems, Logistics and Supply Chain Creating value through green supply chains, ILS 2010 supply chains, ILS 2010 –– Casablanca (Morocco), April 14Casablanca (Morocco), April 14--16<.16<.
Enabling Physical Equivalents of
Intranets, Virtual Private Networks,
Cloud Computing and Cloud Storage
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone
Air route
What are the targets of the Physical Internet?
Open Distribution WebAbout Deploying Objects
An interconnected set of open warehouses and distribution centers
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Reference: Montreuil and Sohrabi, From Private Supply Networks to Open Supply Webs, IERC 2010
Most companies design, run and optimize
independently
their private distribution networks,
investing in DCs
or engaging in long-term leases or contracts
There are 535 000
distribution centers
in the U.S.A. only
Most of them are used by a single company
Most companies use less than 20 DCs
Imagine the potential
if each company could deploy
its products through a open web
including 535 000 open DCs in the USA
Activate and exploit
an Open Global
Distribution Web
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply web with a high density of open DCs
available to many other clients
Firm dedicated factories: 4
Firm dedicated DCs: 0
Group shared DCs: 0
Open DCs used: 60+
D2C max: 0 mean: 0,00
F2D max: 12 mean: 4,75
Firm dedicated factories: 4
Firm dedicated DCs: 0
Group shared DCs: 3
D2C max: 3 mean: 1,48
F2D max: 10 mean: 4,39
Firm dedicated factories: 4
Firm dedicated DCs: 0
Group shared DCs: 16
D2C max: 3 mean: 1,08
F2D max: 9 mean: 4,36
Factories: 4
Firm dedicated DCs:16
D2C max: 3 mean: 1,75
F2D max: 9 mean: 3,92
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,73
F2D max: 8 mean: 4,11
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,78
F2D max: 7 mean: 3,00
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,75
F2D max: 7 mean: 3,69
Factory: 1
Firm dedicated DCs: 4
D2C max: 3 mean: 1,73
F2D max: 9 mean: 4,88
Shared supply web with independently
implemented DCs
Shared supply web with jointly
implemented DCs
Independent private
supply networks
Inter-region transport induced lead timesF2D: Factory to DC lead time
D2C: DC to client region lead time
1
2
3
4
3
2
4
1
1
2
3
4
3
2
4
1
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Port
Maritime route
Highway
Road
Railroad
Open π-factory zone
Air route
What are the targets of the Physical Internet?
Open Realization WebAbout making, assembling, personalizing & retrofitting objects
An interconnected set of open production, personalization & retrofit centers,indeed of open factories of any type
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open Supply WebThe union of open distribution web & open realization web
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone
Open π-factory zoneAir route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
+
vs
=
Supplynetwork2
Supplynetwork1
SupplyWeb1U2
Opensupplywebexploitedby1and2
+
=
≠
Source: Ballot E., O. Guodet & B. Montreuil (2011), Physical Internet enabled open hub network design for distributed networked operations, Proc. of SOHOMA 2011
What are the targets of the Physical Internet?
Open Supply Web
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open supply webwith a high density of open DCsavailable to many other clients
and shared factories among the four firms
Firm dedicated factories: 0Group shared factories: 4Firm dedicated DCs: 0Group shared DCs: 0Open DCs used: 60+Mean DC-to-region lead time: 0Max DC-to-region lead time: 0Mean factory-to-DC lead time: 2Max factory-to-DC lead time: 4
Open supply webwith a high density of
open distribution and production centersavailable to many other clients
Firm dedicated factories: 0Group shared factories: 0Open factories used: 64+Firm dedicated DCs: 0Group dedicated DCs: 0Open DCs used: 64+Mean DC-to-region lead time: 0Max DC-to-region lead time: 0Mean factory-to-DC lead time: 0Max factory-to-DC lead time: 0* Inter-region transport induced lead times
Firm dedicated factories: 0Group shared factories: 4Firm dedicated DCs: 0Group shared DCs: 16Mean DC-to-region lead time: 1,08Max DC-to-region lead time: 3Mean factory-to-DC lead time: 1,11Max factory-to-DC lead time: 3
Shared supply webwith shared factories
and independently implemented shared DCs
Firm dedicated factories: 0Group shared factories: 4Firm dedicated DCs: 0Group shared DCs: 3Mean DC-to-region lead time: 1,48Max DC-to-region lead time: 3Mean factory-to-DC lead time: 0,83Max factory-to-DC lead time: 3
Shared supply webwith shared factories
and jointly implemented shared DCs
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Open Logistics WebThe union of Open Mobility Web and Open Supply Web
Port
Maritime route
Highway
Road
Railroad
Open π-Port
Open π-store & π-distributor zone Open π-factory zone
Open multimodal π-hub & π-transit zone
Open unimodal π-hub & π-transit zone
Air route
What are the targets of the Physical Internet?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
OpenRealization
web
OpenDistribution
web
Open MobilityWeb
OpenSupplyWeb
Open Production,Personalization &Retrofit Centers
OpenDistribution Centers
& Warehouses
OpenUnimodal & Multimodal
Hubs & Transits
OpenLogistics
Web
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Live open monitoring of really achieved performanceof all PI certified actors and entities,
on key performance indices on critical facetssuch as speed, service level, reliability, safety and security
Such live performance tracking is openly available worldwide to enable fact-based decision making
and stimulate continuous improvement
Open information is to be provided in respectof confidentiality of specific transactions
9. Deploy capability certifications andopen performance monitoring
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Multi-level Physical Internet capability certificationof containers, handling systems, vehicles,
information systemsports, distribution centers,roads, cities and regions,protocols and processes,
and so on
How can stakeholders help the Physical Internet thrive?
9. Deploy capability certifications andopen performance monitoring
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Products designed and engineeredto minimize the load and burden
they generate on the Physical Internet,with their dimensions adapted
to standard container dimensions,with maximal volumetric and functional density
while containerized
Reference: Seliger G., “Sustainability in Manufacturing - Recovery of Resources in Product and Material Cycles” (Ed. by Günther Seliger, Sringer Verlag, 2007
10. Design products fitting containerswith minimal space waste
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Product dimensions adapted to the standard container dimensions– So that the packaged product fits in a small footprint container
In order to avoid moving and storing air, products should be designed and engineered so as to have maximal volumetric density while being in Physical Internet containers, extendable to their usage dimensions when necessary
Products should be designed so that only key components and modules have to travel extensively through the Physical Internet:– Easy to be completed near point of use using locally available objects
Products having to move through the Physical Internet should be as functionally dense as possible when in the containers– Functional density of an object can be expressed as the ratio of its useful
functionality over the product of its weight and volume
10. Design products fitting containers with minimal space waste
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
11. Minimize physical moves and storagesby digitally transmitting knowledge
and materializing products as locally as possiblethrough the open realization web
Exploiting extensivelythe knowledge-based dematerialization of products
and their materialization in physical objects at point of use
As it will gain maturity,the Physical Internet is expected to be connected to
ever more open distributed flexible production centers capable of locally realizing (make, assemble, finish) for clients
a wide variety of productsfrom digitally transmitted specifications,
local physical objects and, if needed,critical physical objects brought in from faraway sources
How can stakeholders help the Physical Internet thrive?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
12. Stimulate business model innovation
Innovative business modelsfor commercializing
Physical Internet enabled offers by various parties,including revenue models for the various actors
What are to be the -enabled equivalents of
Amazon, eBay and Google?
How are the manufacturers, distributers, retailers,
transporters, logistics providers and solutions providers
going to evolve so as to best exploit the Physical Internet?
How are business and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Remunerating the Players
In the Digital Internet, the transmission of informationis remunerated mostly through bundled flat feesdue to the quasi nil marginal costs
In the Physical Internet, the transmission of a container generates non negligible costs for each of the operators having taken charge of some part of the transmission
It is thus necessary to define business models for commercializing offers as well as operator revenue models
– There currently exist examples paving the way to realize this, notably in the airline industry
12. Stimulate business model innovation
How are business and the Physical Internet synergizing each other?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Systemic coherence and means interoperabilitymust enable the transparent usage of
heavy handling, storage and transport meanscurrently existing or to come in the future,
that are currently so hard to use,reducing their potential positive environmental impact
The Physical Internet homogeneity in terms ofcontainer modules encapsulating objects
should allow a much better utilization of means,thus increasing the capacity of infrastructures
by the exploitation ofstandardizations, rationalizations and automations
through currently unreachable innovations
13. Enable Open Infrastructural Innovation
How are infrastructures and the Physical Internet
synergizing each other?
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
FoodTubes and CargoCap: Examples of currently contemplated infrastructural initiatives in line with the Physical Internet
http://www.ilookforwardto.com/2010/12/foodtubes-really-fast-food-delivered-in-a-physical-Internet-of-underground-pipes.htmlhttp://www.cargocap.com/content/what-is-cargocap
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Key Featuresof the Physical Internet Vision
1. Aim toward universal interconnectivity
2. Aim for a unified multi-scale conceptual framework
3. Aim for webbed reliability and resilience of networks
4. Encapsulate merchandises in world-standard green modular containers
5. Evolve from material to container handling & storage systems
6. Exploit smart networked containers embedding smart objects
7. Activate and exploit an open global mobility web
8. Activate and exploit an open global supply web
9. Deploy capability certifications and open performance monitoring
10. Design products fitting containers with minimal space waste
11. Minimize physical moves and storages by digitally transmitting knowledgeand materializing products as locally as possible
12. Stimulate business model innovation
13. Enable open infrastructural innovationMontreuil B. (2011) Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge, Logistics Research,
currently available as online publication, 2011-02-12, http://www.springerlink.com/content/g362448hw8586774/fulltext.pdf
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet addressing logistics inefficiency and unsustainability symptoms
1 2 3 4 5 6 7 8 9 10 11 12 13
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1 We are shipping air and packaging
2 Empty travel is the norm rather than the exception
3 Truckers have become the modern cowboys
4Products mostly sit idle, stored where unneeded, yet
so often unavailable fast where needed
5 Production and storage facilities are poorly used
6 So many products are never sold, never used
7 Products do not reach those who need them the most
8Products unnecessarily move, crisscrossing the
world
9Fast and reliable intermodal transport is still a dream
or a joke
10Getting products in, through and out of cities is a
nightmare
11 Networks are neither secure nor robust
12 Smart automation and technology are hard to justify
13 Innovation is strangled
Inefficiency and unsustainability
symptoms
Key Features of the Physical Internet
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Realizing the Vision
Evolving towards a worldwide Physical Internet
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
The Physical InternetGlobal systemic sustainable vision
stimulating and aligning action around the world
Individual initiatives by businesses, industries and governmentsare necessary but are not sufficient
There is a need fora macroscopic, holistic, systemic vision offering
a unifying, challenging and stimulating framework
There is a need foran interlaced set of global and local initiatives
towards this vision,building on the shoulders of current assets and projects,
to help evolvefrom the current globally inefficient and unsustainable state
to a desired globally efficient and sustainable state
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Physical Internet ImplementationProgressive Deployment, Cohabitation and Certification
The widespread development and deployment
of the Physical Internet
will not be achieved overnight in a Big-Bang logic
but rather in an ongoing logic
of cohabitation and of progressive deployment,
propelled by the actors
integrating gradually the Physical Internet ways
and finding ever more value in its usage and exploitation
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
A smooth transitionstarting with rethinking and retrofitting phases,then moving toward more transformative phases
The Physical Internet can constitute itself progressively through the multi-level certification of:– Protocols
– Containers
– Handling and storage technologies, distribution centers,production centers, train stations, ports, multimodal hubs
– Information systems (e.g. reservation, smart labels, portals)
– Urban zones and regions, inter-country borders
Physical Internet ImplementationProgressive Deployment, Cohabitation and Certification
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Conclusion(1/2)
This manifesto has outlined a bold paradigm breaking visionfor the future of
how we handle, store, transport, realize, supply and usephysical objects across the world
It proposes to exploit the Internet,which has revolutionized the digital world,
as an underlying metaphor for steering innovationin the physical sphere
The outlined Physical Internet does not aimto copy the Digital Internet,
but to inspire the creation ofa bold systemic wide encompassing vision
capable of providing real efficient and sustainable solutionsto the problems created by our past and current ways
and by our vision toward which we should aim
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
With this manifesto and its underlying research,a small step has been made
A lot more are needed to really shape this visionand, much more important,
to give it flesh through real initiatives and projectsso as to really influence in a positive way
our collective future
This requires a lot of collaborationbetween academia, industry and governments
across localities, countries and continents
Your help is welcome
Conclusion(2/2)
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Physical Internet Manifesto, version 1.10 Professor Benoit Montreuil, CIRRELT, Université Laval
Questions and comments are welcome
Questions et commentaires sont les bienvenus
Fragen und Kommentare sind willkommen
Las preguntas y los comentarios son bienvenidos
www.physicalinternetinitiative.org