Future ICT and Predictions in the Road Transport Industry

1. Future ICT and Predictions in the Road Transport Industry ARTSA 30 October 2003 Kim Hassall (Assoc Prof Centre for Freight & Logistics Research Director ATA Council)

2. Elements of ICT and Transport Related Telecommunications (6 Areas) • Planning Support Software: • Consignment Barcoding , (the current ALC position) • Vehicle telemetry and its operations and future regulatory impacts • The current generation of Telecommunications • The Internet and what it has meant to Transport, and logistics • What things are on the horizon ??

3. What’s to Consider in Transport (ICT) Information & Computing Technology? • Planning Support Software: • Depot Location placement (gravity based models) • Optimal Dock numbers for a Depot or a DC • Distribution Centre layout (High Productivity Terminals) Simulation packages ( easier ) • Electronic diaries, reporting systems etc...

4. Future: Planning software: MAJOR developments…. • Watch for METAHEURISTIC SCHEDULERS (major changes are in the wind) • dynamic scheduling approaches for large scale redeployment • impact of meta heuristics (5% to 15% depending on windows and business rules) • 5 world records were broken last year with MH Algorithms. (Watch this space)

5. Barcode applications • Consignment Barcoding: • Australian Logistics Council Position along with the respective freight councils, and NOIE is: • EAN UCC for consignment, for SSCC and other applications; • Australian position already taken to APEC, the UPU and WCO • Don’t develop new barcode standards!!! • The promotion for ALC recommendation will start soon…..

6. Vehicle Telemetry: Several Streams of Use • Vehicle Telemetry, GPS (GPRS): Broadcast data flows have several applications: • Hi Tech Vehicle maintenance monitoring • GPS for tracking selected cargoes ($$$, reefer etc) • very specialised dynamic scheduling (re-routed courier application, even military applications)

7. Vehicle Telemetry: Regulatory and Enforcement • Regulatory applications: • Urban traffic flow access management (OECD report) • Tollway/Congestion flow entry pricing • NRTC’s Intelligent Access Project: Regulated trips routes can be audited - large productivity gains • NRTC’s PBS project - certain high productivity vehicles may similarly require GPS for an operations audit trail.

8. Vehicle Telemetry: Regulatory & Enforcement options • Enforcement applications: • Cutting edge GPS (or even current) can radically change the face of enforcement. • 3 strikes and your out may be better with 2 strikes and a GPS with big fines for no usage. • GPS exception reporting can change the nature of on road enforcement. • One could re think the Safety-Cam program (speeding and driving hours). • Again an Exception based operations audit trail.

9. Future: Telecommunications for transport regulation: Punting on the regulators… • Ought GPS get mandated for enforcement and IAP and even PBS access regimes? • Costs $2600 + $1 per day to $85 per week lease and send. • Passenger vehicles can have full telemetry for $40 US but cheaper without MP3 and CD Rom • The regulatory report by exception will change the face of transport regulation…

10. Transport and Logistics Telecommunications: • What is my need ??? • The greatest is knowing what you need • What Telecommunications based Transport ITC system should I use? • Understand what you need and that ITC for its own sake is often overkill. • IT and Telecomms do actually cost….!!!

11. E-Transport and e-Logistics and the Internet: • What has Internet done for the T&L sectors?: • The internet is becoming the microscope for the logistics chain. - Very large interest in revamping logistics since 1995 • Information on contract deliveries, link to link (carrier) measurement, KPIs and T&T are all happening. • Standardisation of Barcoding and T&T may be a while off but the tools will get there. (Again it is horses for courses.)

12. Future: Telecommunications for transport applications: What can be expected… • Web based GPRS will get cheaper (quicker reports) • Where can PDAs and scanning and mobile comms really go? (Greater Courier Impact) • Cost of 3G to the user ?? Extra capacity available... • Truck RFID read -RFID equivalent to unique identifier • Smart GPS “may” emerge (costs already vary widely) • Non standards barcoding may bring 1 day’s demurrage

13. Future:e-Transport and e-Logistics and the Internet: What will customers want from the internet for B2C and possibly B2B? • Stable e-market places. Urban logistics will change gradually and become more efficient • Personal and contract transaction security. • Advance international customs clearances where necessary - - - barcoding dependant? • More varied delivery strategies (12 new ones identified..) • More Track and Trace on “specific / selected” items • Finally get EDI and Barcoding effective! However, there is much more than just the invoice !!!

14. Transport and Logistics Telecommunications: • Telecommunications in Transport: • Courier operations have come a long way with multi technological tools. Scanner/Mobile/SMS/Wireless to Internet downloads and report generation mechanisms • Warehousing LANs are getting cheaper and allowing more accurate RFID. • Will truck RFID compete against fixed GPS?

15. Realistic Future e-Transport possibilities: More possibilities: • Regulatory audit expectations from GPS or internet based GPRS applications; • A rethink on hours for urban transport operations (many minimisation problems) • Smarter application of Truck RFID and GPS at the depot level will save resources;

16. Future:e-Transport and e-Logistics and the Internet: Interesting possibilities: • A global internet based “public domain” track and trace system for customers and carriers that may be looking for minimalist Track & Trace capability. • A global “public domain” logistics contract performance monitoring and reporting system. Measured by two parties against a set of agreed Business rules. (E2E FMT) • Meta heuristics: delivering more power for medium and large scheduling problems over the web at an inter modal level. More profitable fleets. Change the mix of insourced vs outsourced; comes with good and bad news