Lecture Notes in Logistics Series Editors: Uwe Clausen · Michael ten Hompel · Robert de Souza Henk Zijm · Matthias Klumpp Alberto Regattieri · Sunderesh Heragu Editors Operations, Logistics and Supply Chain Management Lecture Notes in Logistics Series editors Uwe Clausen, Dortmund, Germany Michael ten Hompel, Dortmund, Germany Robert de Souza, Singapore, Singapore More information about this series at http://www.springer.com/series/11220 Henk Zijm Matthias Klumpp Alberto Regattieri Sunderesh Heragu • • Editors Operations, Logistics and Supply Chain Management 123 Editors Henk Zijm Department of Industrial Engineering and Business Information Systems University of Twente Enschede, Overijssel, The Netherlands Matthias Klumpp FOM University of Applied Sciences Essen, Nordrhein-Westfalen, Germany Alberto Regattieri Department of Industrial Engineering University of Bologna Bologna, Italy Sunderesh Heragu Industrial Engineering and Management Oklahoma State University Stillwater, OK, USA and University of Duisburg-Essen Essen, Nordrhein-Westfalen, Germany ISSN 2194-8917 ISSN 2194-8925 (electronic) Lecture Notes in Logistics ISBN 978-3-319-92446-5 ISBN 978-3-319-92447-2 (eBook) https://doi.org/10.1007/978-3-319-92447-2 Library of Congress Control Number: 2018943727 © Springer International Publishing AG, part of Springer Nature 2019 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents Part I Introductory Chapters Objectives, Educational Developments and Structure of the Book Matthias Klumpp, Henk Zijm, Sunderesh Heragu and Alberto Regattieri Perspectives on Operations Management Developments and Research Henk Zijm, Sunderesh Heragu, Matthias Klumpp and Alberto Regattieri Operations, Logistics and Supply Chain Management: Definitions and Objectives Henk Zijm, Matthias Klumpp, Sunderesh Heragu and Alberto Regattieri Part II 15 27 Key Domains of Supply Chains Purchasing and Supply Management Holger Schiele 45 Manufacturing Systems Henk Zijm 75 Marketing Concepts and Instruments in Supply Chain Management Thomas Neukirchen, Oliver Gansser and Matthias Klumpp 97 International Trade, Global Supply Chains and Compliance 131 Albert W Veenstra v vi Contents Part III Overarching Topics Information Technology 165 J Rod Franklin Actionable Sustainability in Supply Chains 191 Árni Halldórsson 10 Human Resource and Knowledge Management 205 Matthias Klumpp, Sascha Bioly and Thomas Neukirchen Part IV Functions in Production and Logistics 11 Inbound Logistics 233 Stefan Minner 12 Manufacturing Planning and Control Systems 251 Henk Zijm and Alberto Regattieri 13 Packaging Logistics 273 Alberto Regattieri, Giulia Santarelli and Francesco Piana 14 Outbound Logistics and Distribution Management 305 Matthias Klumpp and Sunderesh Heragu 15 Warehousing 331 Sunderesh Heragu 16 Closed Loop Supply Chain Management 353 Erwin A van der Laan Part V Models for Operations, Logistics and Supply Chain Management 17 Location Analysis and Network Design 379 Mark S Daskin and Kayse Lee Maass 18 Process Engineering and Optimization 399 Marcello Braglia, Marco Frosolini, Roberto Gabbrielli and Leonardo Marrazzini 19 Advanced Production Planning and Scheduling Systems 417 Henk Zijm and Marco Schutten 20 Stochastic Inventory Models 441 Henk Zijm 21 Transportation Management 469 Wouter van Heeswijk, Martijn Mes and Marco Schutten Contents vii 22 Maintenance Service Logistics 493 Joachim Arts, Rob Basten and Geert-Jan van Houtum Part VI New Developments and Special Topics 23 Additive Manufacturing and Its Impact on the Supply Chain 521 Henk Zijm, Nils Knofius and Matthieu van der Heijden 24 Future Technologies in Intralogistics and Material Handling 545 Kai Furmans, Zäzilia Seibold and Andreas Trenkle 25 Supply Chain Security 575 Gerwin Zomer 26 Trends in E-commerce, Logistics and Supply Chain Management 593 Gregor Sandhaus 27 Multi-agent Systems 611 Martijn Mes and Berry Gerrits 28 Artificial Intelligence Applications 637 Matthias Klumpp 29 Advanced Green Logistics Strategies and Technologies 663 Tim Gruchmann 30 Automatic Identification Technology 687 Michael ten Hompel, Mojtaba Masoudinejad, Omar Bousbiba and Moritz Roidl 31 The Physical Internet 719 Eric Ballot Editors and Contributors About the Editors Henk Zijm is a full professor in Production and Supply Chain Management at the Department of Industrial Engineering and Business Information Systems at the University of Twente since 1990 Previously, he has been project manager at Philips Electronics in Eindhoven, and professor in Operations Management at the Eindhoven University of Technology At the University of Twente, he served among others as Director of the Centre for Telematics and Information Technology, Dean of the Faculty of Electrical Engineering, Mathematics and Computer Science, and Rector Magnificus (Vice Chancellor) Professor Zijm is also a past president of ISIR (the International Society for Inventory Research, Budapest) In 2010, he was appointed as scientific director of the Dutch Institute for Advanced Logistics (DINALOG), a national institute responsible for executing the Dutch government imposed innovation program on logistics and supply chain management Between 2014 and 2016 he also served as vice-chair of the European Technology Platform for Logistics, which helps to design roadmaps that drive the Horizon 2020 research and innovation program in Transport and Logistics.Professor Zijm has published more than 120 articles in international refereed scientific journals and is the (co-) author of three books He has been a consultant to a wide variety of industrial organisations in the Netherlands and in Europe Matthias Klumpp is a full professor in logistics at FOM University of Applied Sciences Essen and research group leader in production and logistics at the University of Duisburg-Essen and the Fraunhofer Institute for Material Flow and Logistics in Dortmund (Germany) His research is addressing primarily topics regarding artificial intelligence and digital business concepts, sustainability as well as qualification and training in the supply chain and logistics field He has held several visiting and policy positions e.g at the Dalle Molle Institute for Artificial Intelligence (University of Lugano, Switzerland), University of Twente (Netherlands), European University Institute (Florence School of Regulation) and ix x Editors and Contributors for the ESCO Expert Group on Qualification in Logistics for the European Commission (Brussels, Belgium) Alberto Regattieri is a full professor in Logistics and Head of the Management Engineering Master Course at the University of Bologna (Italy) His current research interests include the optimal design of manufacturing systems, innovative approaches to design and manage Supply Chains, Industrial Logistics, control and maintenance of industrial plants He is/was responsible of several research projects in co-operation with - and funded by - the European Commission, private and public companies, universities and international research centers regarding supply chain and logistics fields He published more than 170 scientific papers Sunderesh Heragu is Regents professor and head of the School of Industrial Engineering and Management at Oklahoma State University where he holds the Donald and Cathey Humphreys Chair Previously, he was the Duthie Chair in Engineering Logistics and Director of the Logistics and Distribution Institute (LoDI) at the University of Louisville He has also served as Professor at Rensselaer Polytechnic Institute, Assistant Professor in State University of New York, Plattsburgh, and held visiting appointments at: State University of New York, Buffalo; Technical University of Eindhoven, the Netherlands; University of Twente, the Netherlands; and IBM’s Thomas J Watson Research Center in Yorktown Heights, NY He is the author of Facilities Design (now in its 4th edition) and has authored or co-authored over two hundred and fifty articles He has served as Principal investigator or co-investigator on research projects totaling over $20 million funded by federal agencies such as the Department of Homeland Security, National Science Foundation, Defense Logistics Agency and private companies such as General Electric Dr Heragu is a Fellow of the Institute of Industrial and Systems Engineers (IISE) and has received IISE’s highest research award, the David F Baker Distinguished Research award, as well as IISE’s Award for Technical Innovation in Industrial Engineering Contributors Joachim Arts is an associate professor at the University of Luxembourg His research interests are in the application of operations research to problems in maintenance, inventory, and logistics He often collaborates with industrial partners such as the Netherlands Railways, ASML, and Philips He was a visiting scholar at the MIT Sloan School of Management and the MIT Operations Research Center He is a recipient of the EURO doctoral dissertation award and a Prins Bernhard Cultuurfonds Fellow Eric Ballot is a full professor in Production and Supply Chain Management at MINES ParisTech—PSL He is also director of the Centre de Gestion Scientifique since 2017, visiting professor at the University of Hong Kong since 2015 and holds many auxiliary positions, including Scientific President of the French urban logistics research program, and vice-chair working group of the European 720 FMCG current flows in France E Ballot FMCG flows simulated with Physical Internet Fig 31.1 Flows comparison between two networks organization to serve the same demand with identical sources of supply and customers connection of all logistics services (Ballot et al 2014; Mervis 2014) The complete journey is achieved by the combination of several services provided by several suppliers and shared with others, but with each participant following its own objective To illustrate the concept let us consider an example A manufacturer of consumer goods ships its products to its warehouses located in major geographic areas From there all products from its brands are shipped to distribution centers of each retailer Then each retailer ships to its shops This is the classical supply chain organization In the Physical Internet there is no need to possess or rent the warehouses for years The products are shipped to several open hubs towards the markets and continuously replenished according to the needs Shared transportation means move the products encapsulated in containers towards the markets When a retailer requires a product, it is allocated from the best source of supply The supply chains boundary between the supplier and the merchant could vary according to the product and the distribution channel Figure 31.1 illustrates the impact on Fast Moving Consumer Goods (FMCG) logistics distribution networks in France More than 100 supply chains from suppliers to two retailers’ distribution centers are used with more than 2.5 million pallets of physical flows, left side An optimization algorithm was used to localize hubs and consolidate flows (Sarraj et al 2014) The result is an interconnected network, on the right side, with less flows and more shared resources for each service and alternate services to reach all consignees The associated operations management and stakes are described in the next sections This new organization can be more complex to operate It requires a new competition and collaboration set-up with the fear of losing control for shippers compared to internal operations However, some trends in actual logistics operation as illus- 31 The Physical Internet 721 trated by the case study and the global stakes associated to the Physical Internet may overcome such obstacles and mental barriers 31.2 Trends in Logistics Demand and Consequences (Basic) The first trend is naturally the growth of flows Year after year, outside of the economic crisis period, there is a growth of flows At the European level, with a moderate economic growth compared to other continents, European forecasts indicate that freight (expressed in ton-km) might double in 2050 compared to 2010 (International Transport Forum 2016) It will have a huge impact on the utilization of the infrastructure, and increase congestion and green-house gas (GHG) emissions At the international level with globalization and specialization of plants, the International Transport Forum forecasted, that the volumes of international trade could quadruple (in ton-km) in 2050 compared to 2010 in the baseline scenario, while the GHG emissions related to the traffic might triple (International Energy Agency 2009) In addition, with the shift from mass production to just-in-time and mass distribution to multi-channels shipment sizes are drastically reducing If in the past a single industrial firm could use a full train to supply a plant, it is no longer the case barring a few exceptions in the heavy industry Even trucks are more and more difficult to fill The development of e-commerce has fragmented the demand, and has reduced the size of shipments, making them even smaller It is hard to find evidences about shipment size, as it is not included in official statistics However, a survey in France showed a reduction factor of 4.5 in median weight between 1998 and 2004 and before the explosion of e-commerce business (Gaubert and Guerrero 2013) The reduction of shipment size leads to another factor not very well known, the reduction of freight density in the packaged goods compared to raw materials As a result, sustainability is a major issue The environmental footprint and shadow costs (externalities) will be higher than ever By externalities one might think about GHG emissions and global warming, but it is not the only negative impact of logistics on the environment If we focus on transportation alone, the indirect costs of congestion, especially in cities, accidents, air pollution and noise could generate for the society a cost of the same order of magnitude as the direct cost (Essen et al 2011) In addition, logistics also utilizes other natural resources such as energy, water, and wood for packaging and land utilization by warehouses Confronted with this sustainability challenge, the European Commission set several emission targets for 2030 and 2050 with lower and higher bounds (European Commission 2011) If we compare targets in terms of CO2 emissions and more generally environmental footprint, even a major shift to electric vehicle will not be sufficient according to the International Energy Agency Figure 31.2 clearly depicts one of the sustainability challenges, GHG emissions reduction 722 E Ballot Fig 31.2 GHG emissions target established by EC for freight transportation (European Commission 2011) Fig 31.3 Efficiency of a truck fleet (McKinnon et al 2003) 31.3 Stakes Associated with the Physical Internet (Basic) Reducing emissions and congestion is a hard problem if one looks only at it from an engineering point of view Another way to look at it is how we utilize resources within an organization In a famous study done in 2003 Alan Mc Kinnon followed a fleet of trucks and the result after data processing is quite impressive, see Fig 31.3 and McKinnon et al (2003) Over 24 h, the efficiency is equivalent to a truck running at nominal speed during only h 24 (Ballot and Fontane 2007) 31 The Physical Internet 723 100000 gCO2 / t.km 10000 1000 100 10 10 15 20 25 t Fig 31.4 Reduction of emissions with change of transportation mean (Joumard 1999) Of course it will never be possible to reach 100% of efficiency over 24 h However there is much room for improvement in different areas such as synchronization to reduce waiting time, consolidation of flows to reduce empty trips and loss of capacity or more efficient handling to speed-up loading and unloading (see also Chap 21) The fact is that with our current fragmented organizational structure it is not possible to significantly overshoot this efficiency This is amply demonstrated by the almost stable empty trip rate and load fill rate seen in the industry (European Environment Agency 2017) A second method to reduce the transportation impact significantly is to shift from a transportation mode to a bigger one to take advantage of economies of scale Figure 31.4 represents on a logarithmic scale not only the influence of fill rate but also how the consolidation of flows helps to lower emissions with the utilization of a larger vehicle (Joumard 1999) The same applies to modal shift with trains and barges with even better emissions reduction per ton Despite efforts made by the supply chain professional, inefficiencies remain at a very high level The simulation study mentioned above and validated by industrial partners on current performance, showed several significant results for exactly the same service level (Sarraj et al 2014; Yang et al 2016) (Table 31.1) The aim of the Physical Internet is to enable much more efficient logistics operations by the generalization of pooling, by a new concentration of flows for better service, better revenue for operators and reduced environmental footprint 724 E Ballot Table 31.1 Physical Internet main effects on current logistics key performance indicators Key performance indicator Physical Internet performance (%) Transportation mean fill rate 85 Modal shift (train) >50 CO2 emissions (French electricity production mix) −60 Traveled distance to reach destination Delivery lead-time (transportation only) −15 −12 Inventory level (same service level) −40 31.4 Start-up: A Case Study (Basic) The Physical Internet may look somehow disruptive compared to existing logistics operations How to start? From where? Several start-ups have already proposed solutions inspired by the concept Several domains are quite active: business language, software, communication tools, handling equipment and marketplaces The focus is put here on a new type of logistics service, routing with a Collaborative Routing Center or CRC in short The CRC proposes to route pallets of FMCG products from many suppliers to many retailers A direct shipment takes place from the warehouse of each supplier to each distribution center When it makes sense, several shipments for several retailers are dynamically bundled from a single (or several) manufacturers to the CRC The CRC, for a fixed per unit transshipment fee, sorts units received and fills trucks towards the retailers The CRC could operate near the suppliers or near the distribution points or both If the foreseen fill rate of a transportation means is not sufficient for a shipper for a direct shipment, customers are added until full capacity is reached If a shipper for a given destination reaches a full truckload, the CRC is skipped The CRC is therefore a pay per use pooling solution utilized by shippers when it is in their best interest without any change in their supply chain, with one exception: the order quantity per customer (Fig 31.5) The CRC started operations in the southeast of France near Marseilles at the end of 2015 after several months of experimentation A different logistics services provider can operate each CRC as long as it is compliant with rules defined in an operational charter 31 The Physical Internet 725 Fig 31.5 A single CRC between origins and destinations with a consolidation factor of (each lane contains 3× the load of the initial network with × lanes) In 2016, six new CRCs were opened providing national coverage in France One major key performance indicator of the CRC is the truckload In 2016 with limited flows and customers, the fill rate was on average 87%—a major improvement compared to previous LTL or FTL operations The next steps are: extension of the geographic coverage and development of new functionalities such as reverse logistics or storage and multimodal operations One of the investors in CRCs operates a multimodal network based on swap containers as shown in Fig 31.6 This new service in conjunction with biogas trucks, operated in the same network, has the potential to drastically reduce GHG emissions 31.5 Key Components of the Physical Internet (Advanced) To interconnect two logistics services many aspects are involved The emphasis is put here on three main components: physical with containers, information sharing and marketplace mechanisms 726 E Ballot Fig 31.6 Moving a swap container from the train to a truck 31.5.1 Physical Aspect: Containers In an “open” network where many services are reachable, it is important to protect the goods, business confidentiality and improve handling productivity The maritime container provides a very inspiring example for inland logistics With its standardized size, its unique identification number and the twist lock handling system, the maritime container revolutionized maritime shipping Figure 31.7 shows the cost reduction especially in port transit and handling coming for its standard design While about sizes are enough to cover the vast majority of maritime needs, the situation is a bit more complex inland With different vehicle sizes and the need to ship quantities, two types of containers of modular dimensions were identified: transportation containers and handling containers Transportation containers, like maritime containers, ensure the interface with the transportation mean and protection against external elements The handling containers look more like boxes with specific features: modular dimensions, sealable, attachable between themselves to form blocks and with a unique identification code (Montreuil et al 2015) Several prototypes were designed in the European project Modulushca As a consequence, the handling container set offers smaller shipment, does not require pallets for handling (by clamping) and enables footprint “free” operations (the block composition can be adjusted to reach the desired footprint) Figure 31.8 illustrates the principle The definition of handling container set will be done sector by sector with industrials to fulfill their needs according to the design principles The subject is now in the hands of the industry and their representatives 31 The Physical Internet 727 Fig 31.7 Comparison of shipment cost for the equivalent of a truck in 1960, in 2010 without innovation and the actual cost with the maritime container Data from the author and Levinson (2006) Fig 31.8 Composition of handling containers to form a block 31.5.2 Information Sharing In an interconnected network, a shipment encapsulated in a handling container or a set of handling containers will be passed from one logistics service provider to another and potentially several times to optimize routing This openness of the network and sealed handling containers reinforce the need for full digital visibility and control from authorized stakeholders at the level of containers to perform logistics decisions but limited to them 728 E Ballot In the field of logistics, the goal is to be able to locate and communicate with the container to transmit the best decision about the next steps to be performed The Internet of Things developments are of particular interest for the Physical Internet for two main aspects Smart objects with sensors and communication capabilities and information definition readily facilitate exchanges between business partners If one looks at technologies, we see very interesting developments in both sensors (accelerometers, temperature, localization) and long-range and near-field communication devices and networks at prices that are more and more affordable for logistics operations In the near future supply chains will be full of smart objects such as containers, trucks, forklifts, conveyors etc Figure 31.9 illustrates a single communication scheme from handling containers with the EPC global standard (GS1 2013) Several languages are necessary to efficiently exchange all the information necessary to coordinate activities among the actors to perform the various types of logistics services 31.5.3 Routers Container routing in the Physical Internet is based on a physical level (a physical hub) and a routing level (a market place), supported by information sharing At the physical level, the hub performs all physical operations (unloading of transportation means, inspection, decomposition, storage, sorting, composition, or shipping It could be done by actual means (such as cross-dock platforms) or by new types of facilities aligned with Industry 4.0 principles (automated, resilient, flexible and scalable) A typical example is given by the grid flow concept from Gue et al (2014), now operational with the FlexConveyor solution Figure 31.10 shows the concept, a grid composed of bidirectional conveyor units with the same software in each unit The grid is one possible expendable configuration among a huge number of potential configurations A box can enter the grid from anywhere and could be extracted from anywhere according to the needs and can be stored anywhere on the grid The routing level provides the best allocation of services to fulfill all commitments (transit time, delivery date or allowed expenditure) This intermediation service is very similar to a market place but with extended capabilities compared to traditional freight marketplaces It combines several shipments to the best capacity offers thanks to the interconnection of services and the physical hub Figure 31.11 gives an example where a hub is represented by a triangle and a shipment is represented by a request r In this particular example, r and r are already bundled and allocated to a carrier t Carriers are noted from to according to their cost, t is the cheapest and transshipment between carriers is authorized They have all the same capacity of 10 load units The best allocation for this problem is: t transports r , r and r , t transports r and r , t transports r and r and t the most expensive transports nothing Here request is moved from carrier to while carrier receives requested and 7, see all 31 The Physical Internet 729 Fig 31.9 Example of EPC global architecture with interface to legacy systems and information publication via several EPCIS that enables new services details in Xu (2013) The optimal allocation is reached by an auction mechanism with independent players (carriers) and not a centralized planning Of course, this example is very simple (few requests, few carriers, one hub, one period, no transshipment fee) but it illustrates the principle and let envision extensions The idea is to generalize this kind of approach to ensure the optimization of both transportation means and routing of shipments Chapter 21 presents more elaborate consolidation algorithms 730 E Ballot Fig 31.10 A configuration of the GridFlow, entries in blue, exits in black, storages in yellow, conveyor units in grey r3 Request at hub r1 r2 r3 r4 r5 r6 r7 Dest 5 Load units 5 5 3 O r4 10 r1 r7 10 r5 r2 10 t1 r6 Fig 31.11 An optimal allocation of carriers for a set of requests in hub 31.6 Operations with the Physical Internet (State-of-the Art) The Physical Internet is the interconnection of all logistics services As such the goal is not only to improve operational efficiency but also to reconfigure networks to support new organizations and services Two examples are described below The first example, illustrated in Fig 31.12, shows how the Physical Internet could be used to ship directly and faster to the consignees as in parcel networks But it could also allow operations corresponding to a classical distribution network such as picking (at container level), storage and flexible allocations 31 The Physical Internet 731 130 Km / h 100 80 60 40 20 Without points of sales 10 12 14 16 18 20 22 24 26 Days Fig 31.12 Comparison of the classical SC organization and the Physical Internet organization The PI also permits to consolidate shipments from many shippers before delivery according to services criteria such as: minimize GHG emissions, minimize costs, or any combination of criteria The second example, Fig 31.13, explores stocking strategies In contemporary supply chains, the allocation of assets to a dedicated service or customer minimizes the number of stocking points This is why most warehouses are located, based on a centroid approach, close to each other but far from customers In a more shared and distributed approach, warehouses could be distributed more efficiently over a territory and could offer several stocking points to all manufacturers and retailers The ability to store in several places could be exploited by inventory management algorithms to support multi-sourcing and inventory repositioning but more importantly a distribution (or a supply) network customized to each product characteristic Such inventory management decisions are completely out of reach in current single dedicated networks A completely distributed and shared logistics holds a potential not only for innovation but also to deploy services at a much faster pace compared to nowadays, where lack of standards act as barriers to innovations as they have to adapt to specificity of all services 732 E Ballot Source of o supply: blue dot Warehoouses or hubs: green dot Point off demand: red dot d Numberr of orders: on yellow y dots Notationn Classiical distribution network: a ccommon sourcee of supply and d two independdent distributiion networks Expensiive products, with w low demannd volume an nd high demand uncertainty: direct shipmennts (inventory in n one place) Cheap p products, hig gh demand voluume and high demand unceertainty: shipm ments to hubs with multi-sourrcing and repossitioning of pro oducts (inventorry in several plaaces) Fig 31.13 Comparison of inventory management strategies (Yang et al 2016) 31.7 Roles of Key Actors in the Design of the Physical Internet (State-of-the Art) The Physical Internet proposes a comprehensive approach to redesign logistics networks and supply chain operations It will not be done overnight, neither switched 31 The Physical Internet 733 Fig 31.14 The ALICE roadmap towards the Physical Internet with European milestones on in one phase It requires a significant design effort from researchers, industrialist, governments and institutions for a gradual implementation The first level is awareness and education, it is achieved throughout several channels: journals, books, videos, and conferences The second level in the enrolment is the design of the Physical Internet Here several associations could play a significant role The leader is ALICE, the Alliance for Logistics Innovation through Collaboration in Europe the European Technology Platform for Logistics http://www.etp-logistics.eu Created in June 2013, ALICE attracted more than 100 major players in the design process of a roadmap towards the Physical Internet Figure 31.14 gives the main domains of research and the horizons based on the European research agenda Other institutions such as GS1 (information) or the Consumer Goods Forum and Material Handling Industry (container design and handling) (Material Handling Industry 2014) are also involved in the process as well as public institutes in Asia (Hong Kong, South Korea and China) However, start-ups from the most dynamic area, with several solutions already on the market for stocking (Flexe.com, Stockbooking.com etc.) enable warehouses as a service, for transportation with many new marketplaces for shippers (Uship and others), in software edition with MixMoveMatch and others The solutions might come from their side sooner, with an amplified impact if they are “interconnection ready” The disruption in distribution channels and retailing is already well underway with new giants imposing new practices They force all actors to adapt to new market rules With this regard, the Physical Internet appears as a promising and fair alternative to the usual “winner takes all” 734 E Ballot References Ballot E, Fontane F (2007) Transport performance and efficiency: overall vehicle effectiveness In: CGS Working paper Mines ParisTech, Paris Ballot E, Montreuil B, Meller RD (2014) The Physical Internet: the network of logistics networks La documentation Franỗaise Essen H, Schroten A, Otten M, Sutter D, Schreyer C, Zandonella R, Maibach M, Doll C (2011) External costs of transport in Europe CE Delft, INFRAS, Fraunhofer, Delft ISI: 161 European Commission (2011) A roadmap for moving to a competitive low carbon economy in 2050 Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions Office of the European Union, Brussels, 16 pp European Environment Agency (2017) Load factor for freight 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0207543.2016.1275871 ... translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic... Duisburg-Essen, Essen, Nordrhein-Westfalen, Germany e-mail: matthias.klumpp@fom.de H Zijm Department of Industrial Engineering and Business Information Systems, University of Twente, Enschede, Overijssel,... and Management, Oklahoma State University, Stillwater, OK, USA e-mail: sunderesh.heragu@okstate.edu A Regattieri Department of Industrial Engineering, University of Bologna, Bologna, Italy e-mail: