Future Proof Smart Logistics

Big challenges in logistics

The logistics sector is facing an increasing number of challenges that are exacerbated by the expected growth of freight transport of up to 20% in 2030:

1. A rapid and strong reduction in emissions is urgently needed considering that the transport sector is the only sector with growing green house gas emissions;
2. Security of supply is challenged by disruptions, such as climate related events and geopolitical tensions;
3. The current logistics system has to deal with increasing levels of scarcity of transport infrastructure, energy and workforce.

Individual companies are not able to deal with these challenges which is recognised by the logistics sector itself, but effective and feasible solutions are not available.

Solution: Asset sharing in systems of connected logistics networks

To address these challenges and provide the logistics sector the required action perspective, a system change in logistics is needed by "doing more with less” through sharing assets in systems of connected logistics networks (in line with Physical Internet concepts supported by ETP-ALICE). To realise this, the sector needs to shift from individual planning of own assets within single networks towards collaborative planning of shared assets in open connected logistics networks.

Potential benefits for logistics companies, Dutch industry and governments

Several research studies have shown that with this solution efficiency gains of more than 25% can be reached. Besides, logistics companies can improve reliability and sustainability of the logistics services they offer to their clients. Altogether logistics companies can boost their competitive position and earning power and at the same time address the big challenges mentioned before.

As the logistics sector supports all other sectors, companies in all industries will benefit from improved logistics services leading to better earning capacity of Dutch industry. IT service providers will benefit by incorporating the knowledge into their products offering better services. Moreover, society gains through a substantial contribution to sustainability (reduced emissions) and accessibility (less congestion) goals set by Dutch and European governments.

Applied research: Activities and aimed result

It is well known from existing research that horizontal (and vertical) collaboration is quite difficult in the logistics sector. However, given the urgency of the mentioned challenges, also being enforced by upcoming legislation (such as road pricing), it is no longer a nice to have, but a must have for logistics companies which is more and more acknowledged by larger number of logistics companies.

Trust between collaborating companies is a very important factor for the success of the proposed solution. Therefore, both from organisational and technological perspective innovations are developed and applied to gain, confirm and safeguard trust over time. Activities will focus on the following innovations on multiple levels:

1. Organisation (multilateral scalable horizontal (and vertical) collaboration);
2. Digital technologies (trusted, easy accessible data sharing solutions);
3. Logistics (data driven decentral planning algorithms);
4. System-of-systems integration and alignment (fit of subsystems into an ecosystem).

In the Future Proof Smart Logistics Programme TNO will work towards a working integrated and scalable solution together with logistics companies, knowledge institutes and governments. This reference solution will be used to show the value, the impact it can have and to prepare further scaling to higher number of involved companies and scaling to other domains. In collaboration with strategic partners we foresee the further development and roll-out of the solution in business operations.

Joint action of companies, knowledge institutes and governments

As the aimed solution requires a different way of working with a large potential impact on the logistics sector, a transition to a new system is needed from the current way of working to a new way of working amongst a large number of companies. To support this, a transition organisation will be initiated to organise the required cooperation between companies, knowledge institutes and governments as a joint effort.

The goal of this transition organisation is to act as a one-stop-shop for the sector to develop, integrate and maintain the knowledge to build solutions and to give support in the implementation in logistics operations with relevant stakeholders.

In cooperation with:

• TNO units Mobility and Built Environment (MBE), ICT, Strategy and Policy (ISP) and Defence, Safety and Security (DSS)
• Participating knowledge partners: University Twente, Nyenrode Business University, IMEC (BE)
• Participating logistics companies (through collaboration with Next Level Logistics program Logistics Community Brabant): Barge Terminal Tilburg (BTT), Oosterhoutse Containter Terminal (OCT)
• Members advisory group: Port of Rotterdam (PoR), European Shipper Council (ESC), Georgia Tech (USA), Topsector Logistiek, Ministerie van Infrastructuur en Waterstaat, European Technologie Platform ALICE (Alliance for Logistics Innovation through Collaboration in Europe); supported by Transport en Logistiek Nederland (TLN) and evofenedex.

During the programme, the collaboration will be expanded with other willing and leading companies, governments and knowledge institutes.

Also want to collaborate?

We are actively looking for shippers, logistics service providers and logistics planning software partners to work with us in the programme. Besides we seek strategic partners to further develop the technology and to support in the aforementioned system transition. We are looking forward to discuss possibilities for collaboration with you. Please contact our expert.