Advanced Cargo Transport Information Services Platform

1. Advanced Cargo Transport Information Services Platform Sdoukopoulos Lefteris, Anagnostopoulou Afroditi, Boile Maria, Rikkou Konstantinos, Theofanis Sotiris, Georgakopoulos Christos, Voulkas Giorgos, Pallis Petros, Todi Theodora, Eliadis Giorgos

2. Overview of the presentation • The “ACTIS” project – general information • Background • State-of-the-art and practice (platforms and algorithms) • The “ACTIS” platform • Conclusions and next steps

3. The “ACTIS” project Project details • Funding programme: NSRF Cooperation 2011 • Project partners: CERTH/HIT, Apopsi S.A., Eliadis Transport S.A. • Duration: Oct 2013 – Oct 2015 Scope • Introduce into the Greek market, a novel and technologically advanced freight platform enhanced with innovative capabilities and services • The developed platform is expected to provide an operational tool for companies seeking and companies providing freight transport services • The project provided the opportunity to broaden and deepen current knowledge and scientific background on road freight operations with emphasis on freight transport systems and services.

4. Background • The financial crisis and the current business environment have resulted in an increased interest of shippers to collaborate in order to reduce transport and distribution costs • During 2009 – 2011, several non competing but also competing companies, in the US and the EU, developed synergies regarding their transport operations which resulted in significant benefits for them and reduced operational costs

5. Background • The trucking industry has become increasingly sophisticated regarding the use of new technological solutions • Internet-based platforms have been developed aiming to further enhance the efficiency of trucking operations

6. Freight exchange platforms • Introduced in Japan (1990) – large developments in USA (2000) and EU (2005) – are emerging in China, India, Korea (2010) • Emerged as a result of advances in information technology – B2B and B2C hubs facilitating product and information exchange thus supporting the negotiation, contracting and settlement processes • Loadboards at first – evolved into matching systems (B2B and B2C solutions) aiming to match the demand from shippers / customers with the available truck capacity of freight carriers over the internet • Load and vehicle matching is based on certain criteria and algorithms that each platform has developed based on their users’ needs and requirements • Cargo brokerage systems may further improve the performance of the freight transport system

7. Freight exchange platforms Functionalities that may be offered: • Cargo load and truck capacity availability search which may be facilitated through the use of matching algorithms • Routing applications • Fleet management applications • Monitoring and control of transactions • Services for LTL shipments • Intermodal transport services (in some cases)

8. Matching algorithms • Models: Winner Determination Problem • Solution approaches proposed: • Sophisticated solution procedures (memory structures, operators and efficient search mechanisms) • Population-based metaheuristic algorithms • Models: Set Partitioning Problem, Carrier’s Optimal Bid Generation (COBG) • Solution approaches proposed: • Exact methods • Approximation algorithms • Optimal strategy: the absence of pre-existing commitments Shipper Carrier

9. Matching algorithms Observations • The most important issues of matching systems are to obtain efficient allocations maximizing revenue considering several criteria and automating the decision making • Selection criteria proposed only for shippers based on: • Route i.e. frequency, capacity, etc. • Cost • Service level i.e. delay, reliability, etc. and based on the influence level i.e. strategic, operational, tactical

10. The “ACTIS” Platform Development process - approach • The development of the “ACTIS” platform followed the sprint plan as defined by the SCRUM framework • Users’ needs and requirements were collected through targeted workshops • Priorities were defined and the corresponding operations were developed • Associated partners provided their feedback regarding the system’s functionalities, design, strengths and weaknesses

11. The “ACTIS” Platform Users’ needs and requirements Registration process • All users should be asked to sign a declaration confirming that all the information inserted into the platform is true. • A users’ certification process should be established (the information inserted into the platform should be cross-checked with other sources) • For special cargo, the respective certificates should be provided • All certificates must be sent to the platform’s administrator • All the aforementioned information should be visible on the users profile Users’ evaluation • The evaluation of the platform’s users should be conducted utilizing a rating system – no free text option and provision of additional comments • Users should be evaluated only after completing a freight transport service

12. The “ACTIS” Platform Users’ needs and requirements Search functions • Search for available cargo load or truck capacity should be undertaken based on location, type (of cargo and truck) and date • Cargo and truck availability should be indicated according to location, type and date • The most preferable option (in terms of cost and time) for shippers or carriers regarding truck or cargo availability respectively should be indicated respecting however any constraints that might have been set by each respective user Services • Estimation of the truck operating cost for a specific freight trip (which will only serve information purposes and will not be binding) • Estimation of the total travel time for a specific freight trip (with the ability to recalculate the travel time in case an accident or delays occur)

13. The “ACTIS” Platform Users’ needs and requirements Updates • Sending an SMS or e-mail to the platform’s users updating them regarding any new information in the system • Monitoring of the freight trip through the use of GPS • Updates regarding the actual starting time of a freight transport service and provision of additional relevant information Payment • Receive a guarantee from the shipper as insurance of the freight transport fee Other services • History of transactions for all users • Information regarding the road transport network (conditions, incidents, etc.), legal issues, etc.

14. The “ACTIS” Platform Platform architecture

15. The “ACTIS” Platform Platform services • Cargo management: users can access their cargo offers and provide relevant information and specific details • Offer management: users can manage their offers for transport services • Service evaluation: users (both shippers and carriers) can evaluate the offered transport service • Profile management: users can create and edit their profiles / accounts. The profile includes information about the company and each user (shipper / carrier) has access to the corresponding services • Webpage: the interface of the platform which also provides news and updates about the transport sector

16. Conclusions • Freight exchange platforms can provide several opportunities to shippers and carriers and minimize existing inefficiencies Develop synergies for their transport operations Reduce “empty” vehicle kilometers for carriers • Access to a larger number of customers (not only large but also smaller companies) • Wider range of alternatives to choose from (available cargo and trucks) • Better coordination and consolidation of transport activities • Reduced transport and administrative costs • Increased productivity and environmental sustainability

17. Next steps • The “ACTIS” platform will be established as a commercial product • A detailed business plan has been prepared and the project partners are finalizing the management structure • The approach that was followed in the development process of the platform enables to easily integrate new functions / services responding to the market’s requirements • The “ACTIS” associated partners ensure that there is an adequate number of users for initiating the commercial use of the platform thus facilitating the registration of new users

18. Next steps • The “ACTIS” platform is expected to provide a number of added-value services including: • Matching of different loads for a specific truck (LTL case with optimal routing) • Real-time fuel consumption monitoring • Estimation of GHG emissions • Estimation of travel time and truck operating cost for a specific trip • Truck location monitoring • Drivers’ performance • Traffic conditions • Routing and re-routing (e.g. in case of incidents) • Optimal truck operation • Fleet management

19. Acknowledgement

20. Thank you for your attention !! Any questions ?