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CVO & Intermodal Freight: ITS Benefits for BusinessCourtesy of Michael Wolfe. Used with permission. Michael Wolfe 1.212, Introduction to ITS, Lecture 11 Massachusetts Institute of Technology March 17, 2003 |
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Making Sense at the Intersection of Supply Chain Systems FreightOperations Tracking & Monitoring Technologies Business Economics Security |
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Objectives and OutlinePut CVO in context Major challenge of Intransit Visibility Key technologies Business benefits for freight operations Intermodal freight security Technology trend that will change best practices Looking ahead to Dynamic Flow Control |
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Putting CVO in Context |
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The Big Picture on CVO & Freight |
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Evolution of CVOTraditional ITSA approach Emphasis on public-private interfaces Electronic credentialing Regional automated oversize/overweight permitting Transitional IFTWG approach Emphasis on intermodal freight Enhance fleet operations Improve customer service Emerging CWG approach Emphasis on security balanced with efficiency |
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Supply Chain IntegrationMajor trend knits together shipper, carrier, and receiver information systems & business processes Competition & financial incentives drive it New information & communication technologies make it feasible Inefficiency anywhere in the supply chain affects everyone in the supply chain Try replacing “inefficiency” with “vulnerability” |
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The Really Big PictureInfo. Tech. Revolution Deregulation set the stage to exploit IT |
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CVO Also Feeds Intransit VisibilityITV Quality data on status of goods & equipment in trans. pipeline Accuracy Timeliness Completeness Security ITV--a buzzword that began in DoD and moved to industry |
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The ITV Challenge |
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ITV is a Long-term ChallengeLaments and complaints Operators: “Where’s my equipment?” Customers: “Where’s my stuff?” Nested freight relationships hinder data quality Every shipment is a chain of transactions |
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Nested Freight RelationshipsConveyance Container Pallet Multipack Part Every shipment is a chain of nested transactions that should be transparent (Courtesy of Michael Wolfe.) All rights reserved. May be reproduced with credit to the North River Consulting Group. |
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Modern Stack Train Loader(Courtesy of Michael Wolfe.) |
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Clifford Maersk 6600 TEU, 245 Knots, 1999 (Courtesy of Michael Wolfe.) |
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Loading Chassis for Drayage and Linehaul(Courtesy of Michael Wolfe.) |
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The Dromedary Drayman(Courtesy of Michael Wolfe.) |
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Focus on Automatic Identification Technologies (AIT) |
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CVO-Related TechnologiesAIT Source data automation Data exchange EDI and Internet Data integration |
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Automated Identification TechnologiesBar code Linear and 2D Contact technologies E.g., Smart cards, mag stripes, laser optical Non-contact technologies E.g., Radio frequency, digital video |
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The Macro Trend in Freight ID is Towards Automatic SurveillanceRFID tag readers, 1995 Location tracking, 1988 Two-way digital comm., 1988 Cell phones, >1985 Pay phones, ~1930’s Telegraphs, >1844 |
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Auto ID TechnologiesConveyance Bar code & 2D labels RF tags, DSRC GPS capability Container Bar code & 2D labels Optical cards, tags, labels RF tags Pallet •Bar code & 2D labels •Optical cards, tags •RF tags Multipack •Bar code, 2D labels •Optical cards, tags •Embedded RF tags Part •Bar code, 2D label •Inscribed part # •Embedded RF tags (Courtesy of Michael Wolfe.) |
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Best Practices in Freight ID Today“License plate” identifiers on the freight linked in multiple data bases Customer data bases hold contents information Carriers track equipment location Transaction confirmations passed via EDI or internet |
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Best Practices by NicheSpecifics vary by market niche Barcodes-and-databases Retail and resupply “Dumb” RFID tags and smart networks Railroads, few container operators Satellite transponders and smart networks Long haul truckers Retail and resupply Railroads, few container operators Long-haul truckers |
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Approaches to Location TrackingChoke point or signpost reports Fixed readers Short range communications Tag must pass close to a reader Mobile reporting Long-range communications Location identification Can include 2 way digital communications |
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Tagging vsTracking Conveyance Bar code & 2D labels RF tags, DSRC GPS capability Container Bar code & 2D labels Optical cards, tags, labels RF tags Pallet •Bar code & 2D labels •Optical cards, tags •RF tags Multipack •Bar code, 2D labels •Optical cards, tags •Embedded RF tags Part •Bar code, 2D label •Inscribed part # •Embedded RF tags (Courtesy of Michael Wolfe.) |
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Benefits of Real-Time Location Tracking and Status Reporting |
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Approaches to Location TrackingChoke point or signpost reports Fixed readers Short range communications Tag must pass close to a reader Mobile reporting Long-range communications Location identification Can include 2 way digital communications |
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Uses of Real -Time Location TrackingRole Play: You’re the chief planner in a major transportation company The CEO has to give a speech about real-time location tracking Your job is to outline the key benefits Notes |
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Value of Real -Time Location Tracking1. Efficiency and productivity 2. Service quality 3. Shipment and service integrity |
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1. Efficiency and ProductivityReduce errors, wasted effort, and re-work Save process and cycle time Save labor hours Optimize assignment of equipment and people Improve quality of life for operators Optimize across functional areas Operations, maintenance, labor relations Reduce slack capacity and inventory |
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2. Service QualityImprove reliability Better schedule adherence Increase operational flexibility Advance warning of disruptions More ability to respond to priority changes Ability to divert shipments en route Improve user and customer confidence |
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3. Shipment and Service IntegrityBetter cargo security Less theft of services Mitigate some losses in progress Enhance safety Reduce insurance premiums |
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More Excerpts from the AIT Business Benefits Model |
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AIT Capabilities, Benefits, and UsersAIT capabilities, properly implemented, yield business benefits Benefit matrices vary among classes of users What does the benefit matrix look like for major sets of AIT users? What specific capabilities drive the realization of benefits? |
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AIT Capabilities, Benefits, and UsersThe North River AIT Business Benefit Model™ includes all three dimensions |
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Dimension 1: Five Capabilities Produce Benefits1. Read an RFID tag--or other device recording an implicit transaction 2. Carry detailed data on a read/write tag 3. Record sensor input data on the r/w tag such as temperature, load/empty,door open 4. Mobile location determination 5. Long range communication Backup slides illustrate all 5 |
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Dimension 2: Three Types of Business Benefits1. Efficiency and productivity 2. Service quality 3. Shipment and service integrity |
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The North River AIT Business Benefit Matrix ™ |
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AIT Benefits Vary by UserAIT benefits are not uniform across types of industries, nor within industries There are typical patterns within industries, especially within segments Sophisticated vs. less sophisticated firms |
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Applying the Model to Different Types of IndustryShippers Manufacturers, distributors, retailers Transportation carriers Container operators, air freight, railroads, truckers Transportation-based service providers include Refuse haulers, cement delivery, package delivery |
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Dimension 3: The Type or Class of UserBackup slides fill in matrices |
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Intermodal Freight and Security |
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Three Views of Supply Chain SecurityContainerization magnifies security risks Security measures threaten efficiency Supply chain tools can improve security while improving efficiency Technology can support both goals when well conceived and well executed! |
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Requirements for Supply Chain SecurityAssured integrity of conveyance loading and documentation Significantly reduced risk of tampering in transit Accurate, complete, and timely information about shipments |
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Improve Visibility and ControlThis is the most common recommendation to improve both security and productivity There are major institutional and technical challenges |
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Visibility Discussion is ConfusingVisibility of what? Visibility of items and assets By what means? Event-driven data and integrated systems In what timeframes? Timeliness keyed to needs From what sources? Data from shippers, carriers, and third parties |
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Technology Developments That Will Change Best Business Practices |
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Powerful, long-term trend in information technology will move usbeyond ‘license plate’ barcodes-and-databases Continuing improvement in form, function, integration, reliability, and cost of information technology components What Will Change the Business Model for Supply Chain Management? |
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Key Developments to WatchCheaper real-time ID and tracking Auto-networking tags Multi-mode readers “Productizing” of system integration Effective hybridization Cheaper real-time ID and tracking |
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Cheaper Real-Time TrackingBetter technology and growing volume produce dramatic cost improvements GPS and other GLS Low Earth Orbit satcom Dual mode commo with satcom backup Phone location technologies Prime new applications will start with tracking untethered trailers and chassis |
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Cost Trend in Real-time Transportation Monitoring-Qualcomm truck system, ~$2500 -Vantage trailer tracking, ~$700 -SkyBitz location monitor, ~$400 -E-911 cell phones, ? These are illustrative examples Costs are negotiable--volume is a big factor Monthly communication costs are also important The capabilities are very different |
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If Supply Chains are to be. . Speedy Nimble Precise Secure ...then cheaper real-time tracking and monitoring will play an increasingly important and--eventually--ubiquitous role |
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Looking Ahead to Dynamic Flow Control |
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Looking AheadExploiting multiple technologies for Dynamic Flow Control ITS/CVO Supply Chain Integration ITV is necessary but not sufficient |
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Moving Beyond ITVWorldwide Stock Posture Worldwide Transport Asset Status |
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Moving Beyond ITV: Dynamic Distribution Flow ControlWorldwide Stock Posture Worldwide Transport Asset Status |
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Five Elements of Dynamic Flow Control1. Near real-time stock posture data 2. Near real-time transport asset status data 3. Near real-time transportation network condition data 4. Powerful analytic capabilities Threshold capability monitors Supply chain performance monitors Near-optimal alternative generators Course of action feasibility estimators 5. Timely ability to affect or control operation |
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For More InformationPapers by Mike Wolfe “Trends in Freight Identification Technology” “Freight Transportation Security and Productivity”* “Technology to Enhance Freight Transportation Security and Productivity”* www.itsa.org. Jump to CVO and Intermodal Application pages Links to other sites *www.ops.fhwa.dot.gov/freight/transportation_security.htm |
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Thank you for your attentionMike Wolfe |
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Backup Slides: -Capabilities That Produce Benefits -Benefit Matricesby Type of User |
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Capabilities that Produce Benefits1. Read an RFID tag--or other device recording an implicit transaction 2. Carry detailed data on a read/write tag 3. Record sensor input data on the r/w tag such as temperature, load/empty,door open 4. Mobile location determination 5. Long range communication |
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Confirm the Passing of a Tag: The Simplest ApplicationOn Board User Sites Delivers Accurate & Timely Data! RFID Tags & Other AIT |
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Adding Detailed Shipment Data: The DoD ApplicationOn Board User Sites Active Data-Rich RFID Details Available When Needed |
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Collecting Data During Shipment: Adding Richness and ValueOn Board User Sites Active Data-Rich Tags Readers Capture Event Data |
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Capturing the Data That was Collected During ShipmentOn Board User Sites Audit Trails for Users Sensors & Devices GPS Location Data Active Data-Rich Tags |
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Long Range Communication: Access Anywhere, Any TimeOn Board Sensors & Devices Location Data Optional Active Data-Rich Tags Wide Area Communication |
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Long Range Communications Enables Real-Time ResponseOn Board User Sites Sensors & Devices GPS or GLS Location Data Wide Area Communication Event-Driven Commo & Real-Time Response |
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Applying the Model to Different Types of IndustryShippers Manufacturers, distributors, retailers Transportation carriers Container operators, air freight, railroads, truckers Transportation-based service providers include Refuse haulers, cement delivery, package delivery |
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Dimension 3: The Type or Class of User |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Shippers |
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Benefit Matrix for Typical Transportation Carriers Gray Shading ShowsDifferences with Shippers |
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Benefit Matrix for Typical Trans-based Service Providers Gray Shading Shows Differences with Transportation Carriers |
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