Intelligent Cargo For Efficient, Safe and Environment-Friendly Logistics

TRA2008 Ljubljana April 21-24, 2008
Intelligent Cargo for Efficient, Safe

and Environment-Friendly Logistics
Fulvio Sansone
Business Development Director
Agenda
• The Vision
• The Need for Intelligent Cargo
• EURIDICE Objectives
• Concepts and Technologies
• Progress on State of the Art
• Conclusions
TRA2008 – Ljubljana April 21-24, 2008

The Vision
“In five years time, most of the goods flowing through
European freight corridors will be ‘intelligent’, i.e.: self-
aware, context-aware and connected through a global
telecommunication network to support a wide range of
information services for logistic operators, industrial users
and public authorities.”
• Self-awareness means the ability of cargo to interact with

the surrounding environment to actively notify its presence,
identity and requirements.
• Context-awareness means intelligent ad hoc combination
of information from all the involved stakeholders (shippers,
logistic services providers, infrastructures and authorities),
based on the current cargo position and status.
• Connectivity of moving goods means their constant
availability as service consumers or providers by exploiting
at need the mobile and fixed network infrastructures
available along the route.
The Need for Intelligent Cargo
1. Logistic processes show limited sharing of information

on
• Goods movements, status and authorisations
• 62% of carriers handle call-off management manually
• 90% of of communications on rush orders handled by
fax/phone
1. Limited ICT support to predict and handle unexpected
events
• Information flow currently pushed by back-office
• Limited relevant information at check, consolidation points
=> Inability to fully synchronise logistic planning and
execution processes

EURIDICE Project
EURopean Inter-Disciplinary research on Intelligent
Cargo for Efficient safe and environment-friendly
logistics (FP7-ICT-2007-216271)
• EURIDICE is an Integrated Project funded by
EU’s Seventh Framework Programme ICT
for Transport Area
• The basic concept of EURIDICE is to build an

information services platform centered on
the individual cargo item and on its
interaction with the surrounding environment
and the user

EURIDICE Objectives
• Supporting the interaction of individual cargo items with the

environment and users on the field
• Fixed and mobile Web Service infrastructure
• On-the-fly service orchestration
• Distributed and centralised data analysis and trend detection
• Interoperable platform to expose and use intelligent cargo
information
• Improving logistic performances
• Developing collaborative business models for an intelligent
cargo infrastructure
• Realizing more secure and environment friendly transports

EURIDICE Architecture
Cargo Connectivity
RFID Rx / Tx GNSS Rx GPRS Rx/Tx WLAN Rx/Tx
Agents
short range Authentication
Cargo
Software-defined
Security
Cargo (ZigBee, WiBree) Radio Technologies & Authorisation
Item
Field Users
Mobile Applications Cargo Intelligence

Distributed data Knowledge
Data processing
analysis Discovery
Mobile
Device Event prediction Trend detection Anomaly detection
Services Platform
Vehicle
Mobile services Infrastructure
Fixed services Orchestration
services
Back-office
Stakeholders Systems
Users
Logistc Authorities
Industry
Operators & Infrastructures
(ERP, SCM,
(Transportation Planning , (Control, Authorization
SCE, WMS)
Monitoring , Track & Trace) Terminal Management )

The Platform
• Address simultaneously the logistics, business and public
policy aspects of freight transportation, by dynamically
combining services at increasing levels of interaction:
• Immediate proximity services

RFID-based and barcode-based identification services, mobile user
services, vehicle services, site services
• supply chain services
shipper services, carrier and operators services, producer services
• freight corridor services
infrastructure services, public authorities services
• Support, “on the fly”, combination of these different

categories of services

How it works
Public Authorities services Public Authorities services
es es
ic vic
In S e
rv I n Se er
f ra rv
se S it e f ra rv s Site
st ice
pe
r se r st ice er s er
ru s
ip
vi c ru s ip p vic
ct
ct
es es
Sh Sh
ur
ur Example: Check/Inspection
e
e
at land terminal
Services
Combination
Mob vices
Mo rv ic es
on the fly
s er
se
bi l e
r r er r
s
icceess
SSeerr v rriieerr
ile U
SSeerrvvi r iie
viiccees
CCaarr
CCaar
Pr
Pr
Use
rv ic le
ser
rv ic le
od
o
RFID RFID
es
du
es
r
uc
Se e h
Se eh
ic
ic
c
V
er
V
er
GPS, GPS,
se
se
Galileo Galileo
rv
rv
in g Identify ing
i ce
i ce
ition it ion
P os vices shipment Pos vices
s
s
S er Ser
Qualify
content Certify orig
and transit rig
Verify customs
Cargo-centric Information User and context authorisations
Services Infrastructure specific interaction

EURIDICE Main Concepts
Cargo Connectivity
• Identification through RFID or barcode
• Positioning through GNSS (GPS or Galileo) devices, as
well as GPRS-based localization.
• Mobile devices embedded into a pan-European network
infrastructure
Cargo Service Infrastructure
• Mobile and fixed services support, allowing hybrid setup of
mobile (field user) and fixed (back-office) use cases,
• identification, context information and the related
information services.
• Orchestration, supporting the combination of services for
specific cargo management scenarios.

EURIDICE Main Concepts
Cargo Intelligence
• Semantic web and domain ontologies, for automated
knowledge discovery and identification of services
• Advanced context technologies, for combination of item,
vehicle and user IDs with automatically-detected conditions
• Distributed intelligent agents, for optimization, anomaly and
threats detection (alerting) and distributed real-time
decisions support.
• Analysis of collected cargo data based on deep and
shallow reasoning methods, query and reporting, online
analytical processing (OLAP), statistical analysis, data, text
and web mining, time series analysis

EURIDICE Partnership
The Euridice Consortium

• The Consortium, coordinated by Insiel (Italy),
brings together 22 partners from 9 countries
among them:
• mobile and wireless technology
• RFID
• application software
• ICT
• business consultancy
• logistics

Project Overview
P0 Program Management , Coordination, Performance Monitoring
P1 Intelligent Cargo Integration Framework P3 Impact Creation
Framework Domain Cargo Services

Architecture Knowledge Intelligence Authoring ,
(WP11) (WP12) (WP13) Orchestra -
tion (WP14)
Obj 1.1 Network infrastructure for intelligent cargo
S/T Objectives
Obj 1.2 Fixed and mobile web services infrastructure Business Training Dissemina- Exploitation
Modelling (WP32) tion and (WP34)
Obj 1.3 "On the fly" combination of services for cargo/context interaction
(WP31) Outreach
Obj 1.4 Distributed and centralized analysis, prediction and detection (WP33)
Obj 1.5 Interoperability platform for intelligent cargo users
P2 Pilot Applications
Platform Integration (WP21)
Pilots Assessment (WP22)
Business and Societal

Industry/Distribution applications (WP23) Obj 2.1 More flexible and efficient supply chains
Objectives
Intermodal transport (WP24) Obj 2.2 More efficient, transparent and cost-effective intermodal transport
Obj 3.1 Public-private partnership models for intelligent cargo infrastructure

Logistic Operators (WP25)
Obj 3.2 More secure and environment friendly transport chains

Authorities and Infrastructures (WP26)

Progress on State of the Art
• Service Oriented Architecture for logistics

based on a distributed computing environment
• Mobile terminals invoke and host Web Services
• Dynamic orchestration of services
• Issues with small-footprint implementation, limited
scalability, intermittent connection, QoS
• Cargo Intelligence
• Local decision making by use of mobile Agents
• Distributed data mining
• Anomaly detection based on context and problem
knowledge

Conclusions: How the Future will
Look Like Cargo Connectivity
RFID Rx / Tx GNSS Rx GPRS Rx/Tx WLAN Rx/Tx
Agents
short range Authentication
Cargo
Software-defined
Security
Cargo (ZigBee, WiBree) Radio Technologies & Authorisation
Item
Field Users
Cargo Intelligence
Mobile Applications
Distributed data Knowledge
Data processing
analysis Discovery
Mobile
Device Event prediction Trend detection Anomaly detection
Services Platform
Vehicle
Mobile services Infrastructure
Fixed services Orchestration
services
Back-office
Stakeholders Systems
Users
Logistc Authorities
Industry
Operators & Infrastructures
(ERP, SCM,
(Transportation Planning , (Control, Authorization
SCE, WMS)
State-of-the-Art Transportation Mgmt
Monitoring , Track & Trace) Terminal Management )
Continuous Planning
Consolidate Loads / Select
Book / Track & Audit /
Moves Modes & Carriers
Tender Trace Settle
Event Management
On-Time Customer Carrier
Performance Satisfaction Analysis

… and what will bring us
• More flexible and efficient supply chains through the

integration of intelligent cargo concepts into leading logistic
operators and industrial organizations.
• Increased efficiency, transparency and cost-effectiveness
of inter-modal transport.
• More secure and environmental friendly transport chains
through the adoption of intelligent cargo to support modal
shift, co-modality and door-to-door inter-modal services

Back up Slides

Introduction: Oracle At-a-Glance
Largest enterprise software

vendor, founded in 1977, HQ in
Redwood Shores, CA with
operations in 145 countries
• $18 Billion Revenue, FY07
• 275,000 total customers
• 220,000 database
customers
• 37,500 applications
customers
• 19,500 partners
• 74,000 employees
• >16,000 employees in
Europe

Oracle Solutions: Overview
Database Middleware Applications

• Database • Application Server • E-Business Suite
• Real Application Clusters • SOA/Integration • PeopleSoft Enterprise
• Partitioning • Business Intelligence • Siebel
• OLAP and data mining • Content Management • JD Edwards
• Security • Identity Management • Oracle Retail
• Spatial • Data Hubs • i-Flex
• Oracle Lite • Collaboration Services • Communications Billing
• TimesTen • Java Development tools • Utilities
• Enterprise Performance • ProfitLogic
Management • Transportation Mgm

EURIDICE Technology
The project will integrate and further develop technological
components and approaches in several ways:
• adapting and integrating state-of-the-art identification,

communication and networking technology (i.e. RFID tags
readers/writers; barcode readers; GPRS localization systems;
mobile devicers; software defined radio technologies) into an
Intelligent Cargo Integration Framework (ICIF)
• realizing the Cargo Intelligence through a set of intelligent
services, application programs and technologies (i.e. semantic
web and domain ontologies; advanced context technologies;
distributed intelligent agents; time series analysis for forecasting
and trend detection)
• using interoperability standards and infrastructures to connect
the data concerning a specified cargo item with back-office
users and consumers

Transportation Management At-a-Glance
Planning & • Load
Optimization consolidation and
route planning
• Mode & service
provider selection
Tracking • Real-time shipment Book / Tender • Full visibility to
status checking tender status
• Exception management • Direct link from
and notifications system to carrier
Billing &
Settlement • Freight payment
and audit
• Cost allocation
“76% of logistics managers at major companies

couldn’t trace the products en route or get
updates.”

Business Pressures
Shipper Pressures… Carrier Pressures…

• Escalating end-customer • Capacity shortages of
expectations drivers, railcars, ocean
• Globalization driving slots, and ports
complex global supply • Increased regulation on
chains hours of service rules
• Lean initiatives and and security procedures
increased volatility • Escalating fuel costs
increasing supply risks
• Shrinking margins due • Shrinking margins due
to commoditization of to commoditization of
basic services basic services
…Impact
• Transportation costs (6% of GDP) growing at an increasing rate
• Expansion, consolidation, and globalization of outsourcing suppliers
Increased Demand for Comprehensive Transportation Mgmt Solutions

Operational Challenges
Carriers Forwarders 3PLs Customs Brokers
Transportation • Lack of unified
Providers logistics process
control and
visibility
• Long planning
Planning Execution cycles with
decisions based
on outdated data
Shipper • Paper and time
intensive
Fragmented Manual processes
Organizations Processes • Poor use of
automation for
exception
Trading recognition and
Partners resolution
Suppliers Contract Mfgrs Customers

An Example of Existing
State-of-the-Art Solution:
Transportation Management

Oracle Transportation Management
Order Mgt Plan & Optimise
Global Data Model
Visibility
Event Mgt
Settlement Execution

 100% Web-Based
Oracle Transportation Mgmt
 Highly Configurable
Continuous Planning
 Global Business Support
Consolidate Select
Book / Track & Audit /
Loads / Modes &
Tende Trace Settle
Moves Carriers
r
Event Management
• Tender Offer • Planned Shipment

On-Time Customer Carrier
Performance Satisfaction Analysis • Tender • Order Status
Response • ASN
• Ship Status • Order / Release
• Invoice Information
• Orders • Planned • Payment
• Product Shipment Vouchers
Location • Confirmed • Invoice Check
• Item Master Shipment and Match
Order Warehouse
Financials
Mgmt & Inv Mgmt
Internal Systems Service Providers Trading Partners

Provides…
High Performance Global Transportation

Transportation Collaboration
Optimization and Execution
Global, Local, and
Central Logistics
Management
Logistics Automation
Complete Logistics
with Exception
Network Visibility*
Management
*Currently re-implementing analytic capabilities using Oracle technology
TRA2008 – Ljubljana April 21 -24 , 2008

Provides…

Global, Local, and
Central Logistics
Management
Complete Logistics
with Exception
Network Visibility*
Management

Shipment Planning and Optimization
Maximize Fulfillment Service, Minimize Transportation Costs
Optimized • Route • Timing • Consolidation

Decisions • Mode • Equipment • Service Provider
Engines
Algorithms
& Rules
• Multi-Leg Multi-Mode • Service Time
Consolidation Calculation
• Common Leg • 3-Dimensional
Consolidation Container Optimization
• Multi Stop • Itineraries & Profiles
Consolidation • Carrier Capacity
• Multi-Tier Networks • Throughput
• LTL Consolidation • Rating
• Continuous Moves
Support a Wide Range of Optimization Needs

- Container and trailer optimization & configuration - International shipping
- Shipment assignment, stringing & continuous moves - Facility resource balancing
- Fleet sizing & assignment (execution, strategic) - Bid collaboration and optimization
All capabilities and dates are for planning purposes only and may not be used in any contract
Shipment Planning and Optimization
Example: Multi-Tier Distribution
• Dynamic Routing &
Consolidation
Supplier throughout Network
Multiple Orders
• Intermediate Facilities
for Consolidation
Consolid - Consolidation pools
Supplier
Pool DC 1 DC 2 and cross-docks
Consolidated
Multi-Stop
• Dynamic Optimization
Shipment - When to use pool vs. by-
Supplier pass
- Consolidation from pool
Example: Multi-Leg, Multi-Mode

• One order can involve
China – US Order multiple shipments,
parties, and modes
Supplier
• Optimization can be
Port Port DC performed for unlimited
(Guangzhou) (Hong Kong) (Los Angeles) (Chicago) legs and modes

Provides…
High Performance Global

Transportation Transportation
Optimization Collaboration
and Execution
Global, Local, and
Central Logistics
Management
Complete Logistics
with Exception
Network Visibility*
Management

Transportation Execution
Tightly Link Your Processes with Service Providers
Your Service
Company Provider
Review &
Accept
Approve Tender Pick-up Transport Deliver
Tender
Shipment
EDI 204: Load Tender
Internet: Picked-up
Wireless: En route
Internet: Delivered
• Intermodal Support: Ocean, Air, LTL, TL, Rail

• Electronic (EDI), Internet, and wireless communication
• Share forecast, tender shipments, shipment status, delivery confirmation
• Automated dock scheduling and partner collaboration

Automated Payments and Settlements
Improve Cash Flow and Accounting Accuracy
• Allocate costs Shippers /
Carriers
Match & Pay

Match, to orders & order Customers
validate, and lines for billing
pay invoices; • Apply appropriate
Invoices flag exceptions GL codes based
Bills
via web via web
or on order or
integration characteristics integration
Pay based on
Auto-Pay actual shipment
• Calculate profit
margin for each
activity and shipment
contract rates
• VAT & NFRC*
• Intra-company cost • AR & AP Vouchers

transparency • Allocated costs
Payments Payments
Financial System
Support Settlements & Payments Based on Plans Generated in TM or Other System

*Value-Added Tax and Non-Freight Related Charges

Seamless Trading Partner Collaboration
Extend Capabilities to Service Suppliers and Customers
• Send pick confirmation • Request pick-up

• View PUS • Raise supplementary PUS
• Confirm ship quantity • View PUS status
Supplier • Generate bar code labels
Customer
Materials
Ship confirmation 
 Route & PUS data
Control
Pick
confirm
Alerts shortage
• Maintain fixed route data Transportation
• Plan daily fixed routes Management Ship
• Enter supplementary PUS confirm
LSP • Append supplementary to plan Customer
shortage
Planner Receivin
g
• Allocate equipment
• Review shipment status
• Control execution
• Shipment management • Review shipment status
• Linehaul manifesting • Cross-dock manifesting
• Status updates • Status updates
LSP Regional DC LSP Cross-Dock
= Flow of information
PUS = Pick-Up Schedule = Flow of goods
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Provides…

Global, Local, and
Central Logistics
Management
Logistics
Automation Complete Logistics
with Exception Network Visibility*
Management

Foundation: Global Logistics Integration
Leverage Fusion Middleware
EBS
OM / WMS /
Inv Mgmt
EBS
Financials
Web Web
EBS B B
Services Services
Purchasing
XML / P Oracle P XML /
XSL E Orders TMS Invoices E XSL
Oracle L Shipments Allocations L
Retail
Events Accruals Other
Financials
Other
ERP / SCM
Standardized, Packaged Integrations

via Web Services Orchestrated by BPEL XSL

Example: Vehicle Distribution Mgmt
OEM Plant A Simple Order… Dealer 1
Order: 1 VIN
…Really Looks Like This

Dealer 1
Port Port
OEM
Plant (Yokohama) (Los Angeles)
Dealer 2
Alert! … Delayed in customs Alert! … Dealer msg “Partial Ship”

Automated Action …
Automated Action … 1) Order and routing change
Split shipment of vehicles 2) Expedite replenishment order
• Receive Proactive Notifications and Rapidly Adjust to Unforeseen Delays

• Utilize Event Management to Trigger Automated “Corrective Action” Flows

Provides…

Global, Local, and
Central Logistics
Management
Complete Logistics
with Exception
Network Visibility*
Management

Complete Logistics Network Visibility
Manufacturer
Planning
Level
Shipper
Execution
Consolidator Level
Dashboard
Level
Customer
Across…
…the entire supply chain: from raw materials to point-of-sale
…all roles: suppliers, planners, service providers, customers, management
…all phases: before (planning), during (execution), after (improvement)

Multi-Tenant Configuration and Security
Provide Simple
Top Level Users Parent
Access to Full Visibility Company
Contextual
Information
Business
1
Business
2
… Business
Domain n
Users
Partitioned
Visibility
Configure • Access role-based info, including specific views for trading partners
Software • Prevent other users from accessing non-privileged info or taking
for Specific non-authorized actions via role-based security
Look & Feel • Provides the ability to expand without having to buy another system

Global Logistics Network
Vendor 1 Warehouse 1
Carrier Carrier
Vendor 2 Warehouse 2
Port of Port of Port of
Bombay Singapore Antwerp
Vendor n Warehouse n
Alert:
Shipment’s
What customer What are the ETA is 12 Show me all
POs need to be BOL #s and hours behind styles / colors /
container #s schedule
consolidated sizes and the
into these for these Logistics corresponding
Forwarder
outbound POs? Planner quantities in a
shipments? container
Receiving
Notification: Shipment has left Port of Manager
Bombay

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TRA2008 Ljubljana April 21-24, 2008

Intelligent Cargo for Efficient, Safe

TRA2008 – Ljubljana April 21-24, 2008

• Self-awareness means the ability of cargo to interact with

1. Logistic processes show limited sharing of information

TRA2008 – Ljubljana April 21-24, 2008

• The basic concept of EURIDICE is to build an

TRA2008 – Ljubljana April 21-24, 2008

• Supporting the interaction of individual cargo items with the

TRA2008 – Ljubljana April 21-24, 2008

RFID Rx / Tx GNSS Rx GPRS Rx/Tx WLAN Rx/Tx

Mobile Applications Cargo Intelligence

TRA2008 – Ljubljana April 21-24, 2008

• Immediate proximity services

• Support, “on the fly”, combination of these different

TRA2008 – Ljubljana April 21-24, 2008

Public Authorities services Public Authorities services

TRA2008 – Ljubljana April 21-24, 2008

TRA2008 – Ljubljana April 21-24, 2008

TRA2008 – Ljubljana April 21-24, 2008

The Euridice Consortium

TRA2008 – Ljubljana April 21-24, 2008

P1 Intelligent Cargo Integration Framework P3 Impact Creation

Framework Domain Cargo Services

Obj 1.5 Interoperability platform for intelligent cargo users

Pilots Assessment (WP22)

Business and Societal

Obj 3.1 Public-private partnership models for intelligent cargo infrastructure

Obj 3.2 More secure and environment friendly transport chains

TRA2008 – Ljubljana April 21-24, 2008

• Service Oriented Architecture for logistics

TRA2008 – Ljubljana April 21-24, 2008

RFID Rx / Tx GNSS Rx GPRS Rx/Tx WLAN Rx/Tx

TRA2008 – Ljubljana April 21-24, 2008

• More flexible and efficient supply chains through the

TRA2008 – Ljubljana April 21-24, 2008

TRA2008 – Ljubljana April 21-24, 2008

Largest enterprise software

TRA2008 – Ljubljana April 21-24, 2008

Database Middleware Applications

TRA2008 – Ljubljana April 21-24, 2008

• adapting and integrating state-of-the-art identification,

TRA2008 – Ljubljana April 21-24, 2008

“76% of logistics managers at major companies

TRA2008 – Ljubljana April 21-24, 2008

Shipper Pressures… Carrier Pressures…

Increased Demand for Comprehensive Transportation Mgmt Solutions

TRA2008 – Ljubljana April 21-24, 2008

TRA2008 – Ljubljana April 21-24, 2008

TRA2008 – Ljubljana April 21-24, 2008

Global Data Model

TRA2008 – Ljubljana April 21-24, 2008

• Tender Offer • Planned Shipment

TRA2008 – Ljubljana April 21-24, 2008

High Performance Global Transportation

*Currently re-implementing analytic capabilities using Oracle technology

TRA2008 – Ljubljana April 21 -24 , 2008

High Performance Global Transportation

*Currently re-implementing analytic capabilities using Oracle technology