International Physical Internet Conference Seeks to Transform Logistics With More Efficient, Sustainable Solutions
Although there has been some success at integrating resources in the transportation industry, roughly three-fourths of manufacturers and retailers still transport their own goods without integrating or combining logistics with other firms, a wasteful and inefficient process. According to U.S. Department of Transportation statistics, average truck-trailer loads are less than 60 percent full, and at least one out of every five – and possibly one out of four – trips is made with an empty trailer. This means that overall efficiency rates are no greater than 50 percent.
Handling, storing and transporting goods in a shared network of manufacturers, retailers and transporters would benefit the U.S. economy and significantly reduce greenhouse gas emissions.
As a potential solution, the “physical internet” proposes an efficient system in which global supply chain logistics are enabled by an open, intermodal (transportation by land, rail, ship or barge) system that uses standard, modular and reusable containers, real-time identification and coordinated routing through shared logistics facilities. In other words, all supply chain stakeholders — manufacturers, transportation providers and retailers — act independently to use a shared logistics network that increases the size of trailer loads and reduces or eliminates miles traveled by empty trailers. Standardized modular containers would address inefficient packaging.
If 25 percent of the U.S. supply chain operated with this “physical internet” system, profits for participating firms could increase by $100 billion, carbon dioxide emissions from road-based freight would decrease by at least 33 percent and consumers would pay less for goods, according to a study by engineers at the University of Arkansas and Virginia Tech University.
The Physical Internet Initiative aims at transforming the way physical objects are moved, stored, realized, supplied and used, pursuing global logistics efficiency and sustainability. Originating from Professor Benoit Montreuil in 2006, this ground breaking vision has stirred great interest from scientific, industrial as well as governmental communities.
As a result, the first International Physical Internet Conference will bring together all interested parties and facilitate a sharing of minds in order to build new foundations and steer momentum towards the emergence of efficient and sustainable interconnected logistics. Université Laval will host this international event on May 28-30, 2014, in Quebec City, Canada.
Click here to learn more and to register to attend.
