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Network of Logistics Brokers in Central Europe Territories

Network of Logistics Brokers in Central Europe Territories. Speaker: Stefano Dondi. New ICT services to support SMEs in this field Demand aggregation and optimal route definition Identification of the most convenient transport solution

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Network of Logistics Brokers in Central Europe Territories

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  1. Network of Logistics Brokersin Central Europe Territories Speaker: Stefano Dondi

  2. 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 KASSETTS research objectives

  3. 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 Operational scenarios

  4. 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 The domain ontology

  5. WPs interrelation • Stakeholder & Best practices • Media • Non media communication WP5 WP3 • Company selection: • sectors/industries (Compatibility) • transport needs from/to the KASSETTS regions/areas • ICT Tools WP6 • Pilots implementation: • Implementation of real pilots tests • Indication for Roadmap

  6. Selected Good practices for ICT based logistic cooperation

  7. Based on background projects CORELOG: optimisation of logistic flows in the supply chain (INTERREGIIIBCADSES) MATAARI: optimisation of logistic flows in industrial districts (INTERREGIIIBMEDDOC) 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 Research approach, methodology

  8. Considerations • Experiencesfocused on collaboration and, more precisely, on fair co-opetition, meaningcollaboration + competitionamongSMEs, • MATAARI and CORELOG, report the viewpointofmanufacturersofdifferentsize (mostlySMEs) in termsofoptimisationofinternalfleets and demandaggregation • MATAARIintroduces the needofanintermediate entitymanaging the aggregateddemand, and CORELOGcharacterises the broker profileand providesitsbasicoperationaltools. • STILisaddressedtomanufacturers, logisticoperators and platforms, logisticbrokers, tosupporttheirinteractionwithoutimpacting on theirlegacysystems and providethemwithadvancedroute 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 exchangeofdocuments for missionmonitoring and accounting.

  9. KASSETTS Toolfor Consolidating Cargo Flows

  10. GUI The Broker manager GUI DOM DOM GUI Broker workspace Regionalplanning Transnationalplanning Customerworkspace Carrierworkspace One Carrier One Customer Document management & exchange Other Brokers Legacy system Platform structure

  11. GUI Broker workspace Platform initialisation • 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 Ready

  12. GUI GUI Customerworkspace Carrierworkspace User operations • 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 Ready

  13. GUI Regionalplanning Broker: regional scale • 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 Ready

  14. GUI GUI DOM DOM GUI Demand/offer matching • 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 Ready

  15. Document management & exchange Doc mgt and exchange • 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 Ready

  16. Doc mgt and exchange • 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 16

  17. Import of documents • 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. 17

  18. Export of documents • 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. 18

  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 19

  20. BROKER ROAD Brokering Models L S M BASIC APPROACH OPERATOR APPROACH

  21. ROAD - RAIL Brokering Model • 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 Region B Rail Node Road Transport Road Transport Rail Transport Rail Node Region A

  22. 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

  23. Network of Logistics Brokers

  24. The Network of Broker

  25. Network: Business and Governance model • Rules on how brokers jointly face future decisions in terms of: • Technology, • Organization • Financing • Target group: • Started up brokers • Future brokers Framework Legal aspects Technology aspects Soft aspects Financial aspects

  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 stage 1 MICRO-plane Information flows (centralized structure) Broker X stage 2 Information flows MACRO-plane (mixed structure) Broker Y stage 3 SME / Carrier SME / Carrier Head UNIT

  27. Possible KASSETTS network – Issues/2 stage 1 • 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 MICRO-plane Information flows (centralized structure) Broker X stage 2 Information flows MACRO-plane (mixed structure) Broker Y stage 3 SME / Carrier SME / Carrier Head UNIT

  28. Possible KASSETTS network – Issues/3 stage 1 MICRO-plane Information flows (centralized structure) • 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 Broker X stage 2 Information flows MACRO-plane (mixed structure) Broker Y stage 3 SME / Carrier SME / Carrier Head UNIT

  29. 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

  30. GUI GUI DOM DOM GUI Transnationalplanning Broker: transnational (TN) • 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

  31. Region B Region A Transnational transport scenario • 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 31

  32. Region A Transportorders Mission assigned LogisticBroker Carrier Carrier Logistic Operator Logistic Operator Ordersconfirmed Mission accepted FCP ICP DOM Customer User Company Customer User Company Legacy system FCP = Finite Capacity Planning ICP = Infinite Capacity Planning DOM = Demand/Offer Matching Client Region B Transportorders Mission assigned LogisticBroker Ordersconfirmed Mission accepted FCP ICP DOM A comprehensive scenario 32

  33. 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 Conclusion and outlook

  34. 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

  35. Contact information Stefano Dondi Viale Aldo Moro, 38 - 40127 Bologna - Italy Tel. +39 051 527 3737 Fax +39 051 527 3169 E-mail: sdondi@regione.emilia-romagna.it QR code

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