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Practice paper

Improving logistics by interconnecting services in a Physical Internet: Potential benefits, barriers and developments

Eric Ballot, Fernando Liesa and Rod Franklin
Journal of Supply Chain Management, Logistics and Procurement, 1 (2), 178-192 (2018)
https://doi.org/10.69554/DIHW4166

Abstract

Sustainability and efficiency of logistics operation in a world with fast-evolving demand from mass distribution to ecommerce and home delivery raise significant challenges. Among solutions, collaboration is often cited but remains marginal. To overcome current limits a new concept was introduced several years ago: the Physical Internet (PI) — in other words, the universal interconnection of logistics services. Initial research has shown a large potential for improvement by switching from current organisations to more interconnected ones. The concept attracted attention from researchers and professionals and several results, industry roadmaps and first applications are now available. This paper reviews the main contributions on the subject by detailing impact levels, examines the potential of new technologies in the PI framework and identifies avenues for further research efforts to overcome current barriers, particularly from business models.

Keywords: logistic services; Physical Internet (PI); sustainability; routing; pricing; roadmap

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Author's Biography

Eric Ballot is Professor of supply chain management and industrial engineering at MINES ParisTech — PSL. He is also a director of the Centre de Gestion Scientifique — i3 UMR CNRS 9217, where he is Head Professor of the industrial management and supply chain programme. Since 2015 he has been a visiting professor at Hong Kong University. He serves as a board member of several institutions, including the National Urban Logistics Research programme, GS1 innovation, AIRL and ALICE ETP, and was appointed an accredited expert by the Appeal Court of Paris in 2002. Eric has led many research projects both within the industry (Airbus, Renault, Danone) and with international academic partners such as EPFL and Georgia Tech. Eric is the author of several research papers and book chapters. His research has been recognised at conferences and been awarded research prizes (IESM, ILS, PREDIT). Eric is the director of the Physical Internet Chaire, leading the Physical Internet initiative in Europe with several projects funded in France and one at European level.

Fernando Liesa is Secretary General at Alliance for Logistics Innovation through Collaboration in Europe (ALICE) since its creation in 2013. ALICE is the European technology platform on logistics, recognised as such by the European Commission, responsible for setting up the medium–long-term vision for logistics and supply management and building consensus on the research and innovation agenda towards Physical Internet (2030) and Zero Emissions Logistics (2050). Fernando holds a PhD from the University of Zaragoza (Spain). He has worked in the field of knowledge transfer and research management linked to chemical engineering, process industries, manufacturing and logistics and supply chain management. Fernando worked for Zaragoza Logistics Center (MIT Global SCALE Network) from 2006 to 2014 as Knowledge Transfer Director and from 2007 to 2014 as General Manager of the Spanish Center of Competence in Logistics, CNC-LOGISTICA. From 2014 to 2016 he worked for ENIDE, a consulting and technology SME in the field of mobility and logistics. He has coordinated and participated in several national and European research and innovation projects. Fernando cooperated with the European Intermodal Research Advisory Council in the definition of the Intermodal Strategic Agenda 2010–30. He is an appointed member of the Digital Transport and Logistics Forum (DGMOVE) launched in 2015 by the European Commission.

Rod Franklin is the Managing and Academic Director of Executive Education and Adjunct Professor of Logistics at the Kuehne Logistics University. In his roles at Kuehne Logistics University he oversees the development of academic programmes for the university’s Executive Education organisation, and teaches classes in innovation, operations, decision and data analysis, game theory, mathematical modelling and critical thinking to graduate students and logistics professionals. His research focuses on supply chain efficiency, sustainable operations, data analytics, the Physical Internet and application of digital technologies to supply chain management. Rod’s research has received funding from the European Union, industry, other universities and international logistics organisations.

Citation

Ballot, Eric, Liesa, Fernando and Franklin, Rod (2018, September 1). Improving logistics by interconnecting services in a Physical Internet: Potential benefits, barriers and developments. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 1, Issue 2. https://doi.org/10.69554/DIHW4166.

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cover image, Journal of Supply Chain Management, Logistics and Procurement
Journal of Supply Chain Management, Logistics and Procurement
Volume 1 / Issue 2
© Henry Stewart
Publications LLP

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