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Network of Logistics Brokers
in Central Europe Territories
Speaker: Stefano Dondi
Prague - CE Cross fertilisation Workshop 24th November 2010
KASSETTS research objectives
New ICT services to support SMEs in this field– Demand aggregation and optimal route definition
– Identification of the most convenient transport solution
– Preparation, exchange and translation of transport-related documents
Through a network of intermediary logistic coordinators– Working at a regional scale, collaborating with each other
– Involving selected manufacturing and distribution companies
– Involving selected transport service suppliers
Improvement potential on environment (and business)– +23% of average saturation index, -20% of kilometres
Prague - CE Cross fertilisation Workshop 24th November 2010
Operational scenarios
Regional scenarios (one broker involved)– Manufacturing company fleet planning
– Small logistic operator fleet planning
– Demand aggregation and planning
– Offer matching
– Demand matching
– Import/export of documents from legacy systems
Trans-national scenarios (2 or more brokers involved)– Joint mission computation
– Joint mission completion
– Multilingual document exchange
Prague - CE Cross fertilisation Workshop 24th November 2010
The domain ontology
Logistic Sector Ontology– Focus on the knowledge exchanged between relevant actors
– Ready in English and translated into 7 EU languages
– Czech, German, Hungarian, Italian, Polish, Slovenian, Slovak
– Built in OWL with an extension of PROTEGE
– Facilitated web interface for term definition and translation
– Export in XML format
– Mapping between different XML formats with MAPFORCE ALTOVA
– Automatic translation service
Prague - CE Cross fertilisation Workshop 24th November 2010 5
WPs interrelation
WP5
Stakeholder & Best practices
Company selection:• sectors/industries
(Compatibility)• transport needs from/to the
KASSETTS regions/areasWP6
Pilots implementation:• Implementation of real
pilots tests• Indication for Roadmap
•Media•Non media communication
• ICT Tools
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Selected Good Selected Good
practices for ICT based practices for ICT based
logistic cooperationlogistic cooperation
Prague - CE Cross fertilisation Workshop 24th November 2010
Research approach, methodology
Based on background projects– CORELOG: optimisation of logistic flows in the supply chain
(INTERREG IIIB CADSES)– MATAARI: optimisation of logistic flows in industrial districts (INTERREG IIIB MEDDOC)– STIL: ICT services to promote on-line logistics at the regional scale
(Emilia Romagna Regional Telematic Plan)– SEAMLESS: automatic translation of exchanges business documents
(FP6 - IST Call 4: Strategic objective: 2.4.13 Strengthening the Integration of the ICT Research Effort in an Enlarged Europe)
A local experience to exploit and extend– The Logistic Broker, acting in the Modena province since May 2008– Some local manufacturing companies are involved– Some local carriers are qualified as service suppliers– Twice a day planning of the aggregated demand– www.mo.brokerlogistica.net
Prague - CE Cross fertilisation Workshop 24th November 2010
Considerations
Experiences focused on collaboration and, more precisely, on fair co-opetition, meaning collaboration + competition among SMEs,
MATAARI and CORELOG, report the viewpoint of manufacturers of different size (mostly SMEs) in terms of optimisation of internal fleets and demand aggregation
MATAARI introduces the need of an intermediate entity managing the aggregated demand, and CORELOG characterises the broker profile and provides its basic operational tools.
STIL is addressed to manufacturers, logistic operators and platforms, logistic brokers, to support their interaction without impacting on their legacy systems and provide them with advanced route planning tools
ICT technology plays a fundamental role as enabler of new ways of working, especially with respect to: ensure the application of agreed collaboration rules support planning and re-planning taking into account different policies (optimisation,
balanced assignment) allow electronic exchange of documents for mission monitoring and accounting.
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9
KASSETTS ToolKASSETTS Toolfor Consolidating Cargo for Consolidating Cargo
FlowsFlows
Prague - CE Cross fertilisation Workshop 24th November 2010 10
Platform structure
Document management & exchangeDocument management & exchange
GU
IG
UI
DOM DOMDOM DOMC
ust
om
erw
ork
spa
ce
Cu
sto
mer
wo
rksp
ace Carrier
wo
rkspa
ceC
arrierw
orksp
ace
GU
IG
UI
GUIGUI
Broker workspaceBroker workspace
Regionalplanning
Regionalplanning
Transnationalplanning
Transnationalplanning
The Broker manager
One Customer One Carrier
Legacy system Other Brokers
Prague - CE Cross fertilisation Workshop 24th November 2010 11
Domain ontology translation By means of the Ontology Manager web application To translate vocabulary and user interface concepts and terms Into the local language of the single Broker, if not yet available For automatic generation of GUI in local language
Geographical information Localities (where sites to visit are located) Geo-clusters (territory coverage delimiting sites to visit by a single mission)
Other basic information Companies (customers, carriers) Users (access credentials) Vehicle types Mission cost distribution policy
Platform initialisation
GUIGUI
Broker workspaceBroker workspace
Prague - CE Cross fertilisation Workshop 24th November 2010 12
Start-up CUSTOMER: Sites of interest (clients, suppliers, subcontractors) CUSTOMER: Types of packages used CUSTOMER: Internal fleet, if any, with truck work calendar and price list CARRIER: Infinite capacity fleet, price list
Main activities, CUSTOMER Issuing new transport requests Updating internal fleet calendar Evaluating priced transport missions Receiving periodical pro-forma invoices
Main activities, CARRIER Updating fleet configuration and price list Receiving transport mission to execute Receiving periodical pro-forma invoices
User operations
GU
IG
UI
Cu
sto
mer
wo
rksp
ace
Cu
sto
mer
wo
rksp
ace
Carrier
wo
rkspace
Carrier
wo
rkspace
GU
IG
UI
Prague - CE Cross fertilisation Workshop 24th November 2010 13
Acquisition of transport requests By using the platform web interface By importing orders from the legacy system
Planning Internal fleet planning (on the fleet owned by the request issuer, if any) Extended internal fleet planning (to saturate the internal fleets) Infinite capacity planning (optimal routes and most suited vehicle types) Computation of mission prices according to candidate carrier price lists.
Transport mission assignment Mission assignment to the
most convenient carrier In case of rejection, assignment
to another candidate carrier
Broker: regional scale
GUIGUI
Regionalplanning
Regionalplanning
Prague - CE Cross fertilisation Workshop 24th November 2010 14
Transport demand management Customers can publish a demand for last-minute or special transport Carriers can publish a demand to find out possible subcontractors Carriers can reply to transport demands when able to satisfy them Each transport demand expires after a given date
Transport offer management Customers can publish an offer to complete their own fleet routes Carriers can publish an offer to saturate empty runs Carriers (or customers with fleet) can reply to transport offers Each transport offer expires after a given date
Automatic generation of offers Transport offers are automatically
generated by the internal fleet planning So as to complete each truck milk run
Demand/offer matching
GU
IG
UI
DOM DOM
GU
IG
UI
GUIGUI
Prague - CE Cross fertilisation Workshop 24th November 2010 15
Document management Docs are composed with the application web interface Docs are imported and exported from/to legacy systems Docs are sent and received between users Docs can be private or public (accessible to counterparts)
Document exchange When importing/exporting a format transformation occurs When sending a document to a user associated to another Broker
a language translation occurs Format mapping and language translation
are based on the Ontology Manager
Doc mgt and exchange
Document management & exchangeDocument management & exchange
Prague - CE Cross fertilisation Workshop 24th November 2010 16
Document management Docs are composed with the application web interface Docs are imported and exported from/to legacy systems Docs are sent and received between users Docs can be private or public (accessible to counterparts)
Document exchange Documents are exchanged between brokers during the transnational planning Broker A sends transport requests to Broker B (internal KASSETTS format) Broker B replies to Broker A the computed transport mission (internal KASSETTS format) This document exchange is transparent to the user
Doc mgt and exchange
Prague - CE Cross fertilisation Workshop 24th November 2010 17
Import scenario Feeding the KASSETTS platform with transport requests from a legacy system
Step 1: Definition of the data schema. The customer provides the data schema of its legacy system (e.g. XSD, Excel, database)
Step 2: Definition of the mapping file. The XSLT file is generated with the conversion rules Step 3: Preparation of the run-time service. The XSLT mapping file is imported into the
KASSETTS platform, to be used at runtime.
Import of documents
KASSETTS GLOB
XML Legacy ITXSLT mapping
Prague - CE Cross fertilisation Workshop 24th November 2010 18
Export scenario Saving a transport invoice, a transport mission, or a CMR in the legacy system
The steps are the same as defined for the import scenario.
Export of documents
XSLT mapping XML Legacy IT
KASSETTS GLOB
Prague - CE Cross fertilisation Workshop 24th November 2010 19
The mapping process
A manual procedure Format mapping > first it is necessary to code the relations between fields (1 to 1, 1 to N, M to 1 relations, functional relations) Language mapping > second it is necessary to translate critical terms
Prague - CE Cross fertilisation Workshop 24th November 2010
ROAD Brokering Models
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BROKER
L S M
BASIC APPROACH OPERATOR APPROACH
Prague - CE Cross fertilisation Workshop 24th November 2010 21
ROAD - RAIL Brokering Model
Region A
Region B
Rail Transport
Rail Node
Rail Node
Road Transport Road
Transport
Trans- regional transport (medium/long distances) This is the most common transnational transport scenario With picking in the origin region and delivery in the destination region Then involving the two Brokers acting in the respective regions Also suited for regular transport services (freight bus) And basic condition for road-rail / Co-modal or intermodal solutions
A 3-stage model The picking stage is completely performed in the origin region Then a long-distance journey takes place between the two regions Finally the delivery stage is completely performed in the destination region
Prague - CE Cross fertilisation Workshop 24th November 2010
Test version (English)
A test version in English is available for free tests by PPs and anybody else interested in testing the ICT platform functionality.
This version is available at the following address:
http://nic.ing.unimo.it/broker-en/ User id: broker Password: broker
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Network of Logistics Network of Logistics
BrokersBrokers
Prague - CE Cross fertilisation Workshop 24th November 2010
The Network of Broker
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Prague - CE Cross fertilisation Workshop 24th November 2010
Network: Business and Governance model
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Financial aspects
Framework
Rules on how brokers jointly face future decisions in terms of:
- Technology, - Organization- Financing
Target group:- Started up brokers- Future brokers
Legal aspects
Technologyaspects
Soft aspects
Prague - CE Cross fertilisation Workshop 24th November 2010 26
Possible KASSETTS network – Issues/1
Stage 1 – Involvement of customers Broker support during setup Suitable business model Establishment of rules for conflict
resolution Establishment of rights and licenses
for users Establishment of regulations for
software usage, billing, distribution costs and incomes
Head UNITHead UNIT
stage 1stage 1
MACRO-planeMACRO-plane
Broker Xstage 2stage 2
SME / SME / Carrier Carrier
stage 3stage 3
MICRO-planeMICRO-plane
Broker Y
SME / SME / Carrier Carrier
(mixed structure)
(centralized structure)
Information flows
Information flows
Prague - CE Cross fertilisation Workshop 24th November 2010 27
Possible KASSETTS network – Issues/2
Stage 2 – Definition of broker Suitable business model Establishment of rules for conflict
resolution Establishment of regulations for
distribution costs and incomes Matching to pre-determined regions Creation of transparent and unified
prices, costs, standards, framework-conditions according to country-specific facts
Control of brokers neutrality Agency problems Terminability of broker execution Cultural differences
Head UNITHead UNIT
stage 1stage 1
MACRO-planeMACRO-plane
Broker Xstage 2stage 2
SME / SME / Carrier Carrier
stage 3stage 3
MICRO-planeMICRO-plane
Broker Y
SME / SME / Carrier Carrier
(mixed structure)
(centralized structure)
Information flows
Information flows
Prague - CE Cross fertilisation Workshop 24th November 2010 28
Possible KASSETTS network – Issues/3
Stage 3 – Definition of broker-interaction with actors and head unit
Broker support during setup Avoidance of insufficient cooperation
willingness of actors Creation of transparent and unified
prices, costs according to country-specific facts
Influence on cash flow process by brokers
Determination of exclusion criteria
Head UNITHead UNIT
stage 1stage 1
MACRO-planeMACRO-plane
Broker Xstage 2stage 2
SME / SME / Carrier Carrier
stage 3stage 3
MICRO-planeMICRO-plane
Broker Y
SME / SME / Carrier Carrier
(mixed structure)
(centralized structure)
Information flows
Information flows
Prague - CE Cross fertilisation Workshop 24th November 2010
ICT Platform Use
Service hosting (during the project, after the project completion)
Privacy of data Ownership of results Work hypothesis for New broker:
Open approach and scalable: Knowledge dissemination, Constraint to act as a node of the network;
Work hypothesis for New services: Open approach, favouring the diffusion of new solutions with respect of
the network governance model
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Prague - CE Cross fertilisation Workshop 24th November 2010 30
Work hypothesis Select the most common and useful transport scenario Establish the mutual roles of collaborating Brokers Identify the kind of information they have to exchange Then develop the supporting functions and services
Broker: transnational (TN)
GU
IG
UI
DOM DOMDOM DOM
GU
IG
UI
GUIGUI
Transnationalplanning
Transnationalplanning
Prague - CE Cross fertilisation Workshop 24th November 2010 31
Region-to-Region transport This is the most common transnational transport scenario With picking in the origin region and delivery in the destination region Then involving the two Brokers acting in the respective regions Also suited for regular transport services (freight bus) And basic condition for road-rail / Co-modal solutions
A three-stage model The picking stage is completely performed in the origin region Then a long-distance journey takes place between the two regions Finally the delivery stage is completely performed in the destination region
Transnational transport scenario
Region A
Region B
Prague - CE Cross fertilisation Workshop 24th November 2010
Region B
Region A
User Company
Logistic Operator
LogisticBroker
FCP
Customer
Mission assigned
Carrier
ICP
DOM
Transportorders
Ordersconfirmed
Mission accepted
User Company
Logistic Operator
LogisticBroker
FCP
Customer
Mission assigned
Carrier
ICP
DOM
Transportorders
Ordersconfirmed
Mission accepted
FCP = Finite Capacity PlanningICP = Infinite Capacity Planning DOM = Demand/Offer Matching
Legacy system
Client
A comprehensive scenario
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Prague - CE Cross fertilisation Workshop 24th November 2010
Conclusion and outlook
Ontology and application services are ready– Candidate brokers are identified
– Pilot sites are being selected
– 4 Trans. pilots with participants from 7 regions will be running
– And showing the benefits of interoperating with each other
Further steps– Now the focus is on regional and transnational road transport
– Demand aggregation and optimisation pave the way towards modal shift (focus: Co-modality)
– Which now is typically out of the scope of the SME choices
– Extending as much as possible the opportunity of electronic document exchange and translation
Prague - CE Cross fertilisation Workshop 24th November 2010
Important Milestone - 5th Project period
• Open Brokers Network (Core output 5.2.2):– Establishment of a transnational interoperable logistic brokers network
as permanently operating and growing infrastructure.
– The network includes 7 brokers in the 7 pjt regions
• Governance and business model (Core Output 5.3.2):– Constitution of a light and effective governance system explicitly open to
new actors and to provision of new services.
• 4 Operational and Transnational Pilots:– validation process by executing real-life pilot actions involving
companies in different regions & resulting in the joint / real definition of efficient transport solutions
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Prague - CE Cross fertilisation Workshop 24th November 2010 35
Stefano Dondi
Viale Aldo Moro, 38 - 40127 Bologna - ItalyTel. +39 051 527 3737Fax +39 051 527 3169
E-mail: [email protected]
Contact information
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