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CVO & Intermodal Freight: ITS Benefits for Business
CVO & Intermodal Freight: ITS Benefits for Business
Making Sense at the Intersection of Supply Chain Systems Freight
Making Sense at the Intersection of Supply Chain Systems Freight
Objectives and Outline
Objectives and Outline
Putting CVO in Context
Putting CVO in Context
The Big Picture on CVO & Freight
The Big Picture on CVO & Freight
Evolution of CVO
Evolution of CVO
Supply Chain Integration
Supply Chain Integration
The Really Big Picture
The Really Big Picture
CVO Also Feeds Intransit Visibility
CVO Also Feeds Intransit Visibility
The ITV Challenge
The ITV Challenge
ITV is a Long-term Challenge
ITV is a Long-term Challenge
Nested Freight Relationships
Nested Freight Relationships
Modern Stack Train Loader
Modern Stack Train Loader
Clifford Maersk 6600 TEU, 24
Clifford Maersk 6600 TEU, 24
Loading Chassis for Drayage and Linehaul
Loading Chassis for Drayage and Linehaul
The Dromedary Drayman
The Dromedary Drayman
Focus on Automatic Identification Technologies (AIT)
Focus on Automatic Identification Technologies (AIT)
CVO-Related Technologies
CVO-Related Technologies
Automated Identification Technologies
Automated Identification Technologies
The Macro Trend in Freight ID is Towards Automatic Surveillance
The Macro Trend in Freight ID is Towards Automatic Surveillance
Auto ID Technologies
Auto ID Technologies
Best Practices in Freight ID Today
Best Practices in Freight ID Today
Best Practices by Niche
Best Practices by Niche
Approaches to Location Tracking
Approaches to Location Tracking
Tagging vs
Tagging vs
Benefits of Real-Time Location Tracking and Status Reporting
Benefits of Real-Time Location Tracking and Status Reporting
Approaches to Location Tracking
Approaches to Location Tracking
Uses of Real -Time Location Tracking
Uses of Real -Time Location Tracking
Value of Real -Time Location Tracking
Value of Real -Time Location Tracking
1. Efficiency and Productivity
1. Efficiency and Productivity
2. Service Quality
2. Service Quality
3. Shipment and Service Integrity
3. Shipment and Service Integrity
More Excerpts from the AIT Business Benefits Model
More Excerpts from the AIT Business Benefits Model
AIT Capabilities, Benefits, and Users
AIT Capabilities, Benefits, and Users
AIT Capabilities, Benefits, and Users
AIT Capabilities, Benefits, and Users
Dimension 1: Five Capabilities Produce Benefits
Dimension 1: Five Capabilities Produce Benefits
Dimension 2: Three Types of Business Benefits
Dimension 2: Three Types of Business Benefits
The North River AIT Business Benefit Matrix
The North River AIT Business Benefit Matrix
AIT Benefits Vary by User
AIT Benefits Vary by User
Applying the Model to Different Types of Industry
Applying the Model to Different Types of Industry
Dimension 3: The Type or Class of User
Dimension 3: The Type or Class of User
Intermodal Freight and Security
Intermodal Freight and Security
Three Views of Supply Chain Security
Three Views of Supply Chain Security
Requirements for Supply Chain Security
Requirements for Supply Chain Security
Improve Visibility and Control
Improve Visibility and Control
Visibility Discussion is Confusing
Visibility Discussion is Confusing
Technology Developments That Will Change Best Business Practices
Technology Developments That Will Change Best Business Practices
Powerful, long-term trend in information technology will move us
Powerful, long-term trend in information technology will move us
Key Developments to Watch
Key Developments to Watch
Cheaper Real-Time Tracking
Cheaper Real-Time Tracking
Cost Trend in Real-time Transportation Monitoring
Cost Trend in Real-time Transportation Monitoring
If Supply Chains are to be
If Supply Chains are to be
Looking Ahead to Dynamic Flow Control
Looking Ahead to Dynamic Flow Control
Looking Ahead
Looking Ahead
Moving Beyond ITV
Moving Beyond ITV
Moving Beyond ITV: Dynamic Distribution Flow Control
Moving Beyond ITV: Dynamic Distribution Flow Control
Five Elements of Dynamic Flow Control
Five Elements of Dynamic Flow Control
For More Information
For More Information
Thank you for your attention
Thank you for your attention
Backup Slides: -Capabilities That Produce Benefits -Benefit Matrices
Backup Slides: -Capabilities That Produce Benefits -Benefit Matrices
Capabilities that Produce Benefits
Capabilities that Produce Benefits
Confirm the Passing of a Tag: The Simplest Application
Confirm the Passing of a Tag: The Simplest Application
Adding Detailed Shipment Data: The DoD Application
Adding Detailed Shipment Data: The DoD Application
Collecting Data During Shipment: Adding Richness and Value
Collecting Data During Shipment: Adding Richness and Value
Capturing the Data That was Collected During Shipment
Capturing the Data That was Collected During Shipment
Long Range Communication: Access Anywhere, Any Time
Long Range Communication: Access Anywhere, Any Time
Long Range Communications Enables Real-Time Response
Long Range Communications Enables Real-Time Response
Applying the Model to Different Types of Industry
Applying the Model to Different Types of Industry
Dimension 3: The Type or Class of User
Dimension 3: The Type or Class of User
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Shippers
Benefit Matrix for Typical Transportation Carriers Gray Shading Shows
Benefit Matrix for Typical Transportation Carriers Gray Shading Shows
Benefit Matrix for Typical Trans
Benefit Matrix for Typical Trans

: CVO Intermodal Freight: ITS Benefits for Business. : Michael Wolfe. : CVO Intermodal Freight: ITS Benefits for Business.ppt. zip-: 1402 .

CVO Intermodal Freight: ITS Benefits for Business

CVO Intermodal Freight: ITS Benefits for Business.ppt
1 CVO & Intermodal Freight: ITS Benefits for Business

CVO & Intermodal Freight: ITS Benefits for Business

Courtesy of Michael Wolfe. Used with permission.

Michael Wolfe 1.212, Introduction to ITS, Lecture 11 Massachusetts Institute of Technology March 17, 2003

2 Making Sense at the Intersection of Supply Chain Systems Freight

Making Sense at the Intersection of Supply Chain Systems Freight

Operations Tracking & Monitoring Technologies Business Economics Security

3 Objectives and Outline

Objectives and Outline

Put 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

4 Putting CVO in Context

Putting CVO in Context

5 The Big Picture on CVO & Freight

The Big Picture on CVO & Freight

6 Evolution of CVO

Evolution of CVO

Traditional 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

7 Supply Chain Integration

Supply Chain Integration

Major 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

8 The Really Big Picture

The Really Big Picture

Info. Tech. Revolution

Deregulation set the stage to exploit IT

9 CVO Also Feeds Intransit Visibility

CVO Also Feeds Intransit Visibility

ITV 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

10 The ITV Challenge

The ITV Challenge

11 ITV is a Long-term Challenge

ITV is a Long-term Challenge

Laments and complaints Operators: Wheres my equipment? Customers: Wheres my stuff? Nested freight relationships hinder data quality Every shipment is a chain of transactions

12 Nested Freight Relationships

Nested Freight Relationships

Conveyance 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.

13 Modern Stack Train Loader

Modern Stack Train Loader

(Courtesy of Michael Wolfe.)

14 Clifford Maersk 6600 TEU, 24

Clifford Maersk 6600 TEU, 24

5 Knots, 1999

(Courtesy of Michael Wolfe.)

15 Loading Chassis for Drayage and Linehaul

Loading Chassis for Drayage and Linehaul

(Courtesy of Michael Wolfe.)

16 The Dromedary Drayman

The Dromedary Drayman

(Courtesy of Michael Wolfe.)

17 Focus on Automatic Identification Technologies (AIT)

Focus on Automatic Identification Technologies (AIT)

18 CVO-Related Technologies

CVO-Related Technologies

AIT Source data automation Data exchange EDI and Internet Data integration

19 Automated Identification Technologies

Automated Identification Technologies

Bar code Linear and 2D Contact technologies E.g., Smart cards, mag stripes, laser optical Non-contact technologies E.g., Radio frequency, digital video

20 The Macro Trend in Freight ID is Towards Automatic Surveillance

The Macro Trend in Freight ID is Towards Automatic Surveillance

RFID tag readers, 1995 Location tracking, 1988 Two-way digital comm., 1988 Cell phones, >1985 Pay phones, ~1930s Telegraphs, >1844

21 Auto ID Technologies

Auto ID Technologies

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.)

22 Best Practices in Freight ID Today

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

23 Best Practices by Niche

Best Practices by Niche

Specifics 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

24 Approaches to Location Tracking

Approaches to Location Tracking

Choke 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

25 Tagging vs

Tagging vs

Tracking

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.)

26 Benefits of Real-Time Location Tracking and Status Reporting

Benefits of Real-Time Location Tracking and Status Reporting

27 Approaches to Location Tracking

Approaches to Location Tracking

Choke 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

28 Uses of Real -Time Location Tracking

Uses of Real -Time Location Tracking

Role Play: Youre 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

29 Value of Real -Time Location Tracking

Value of Real -Time Location Tracking

1. Efficiency and productivity 2. Service quality 3. Shipment and service integrity

30 1. Efficiency and Productivity

1. Efficiency and Productivity

Reduce 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

31 2. Service Quality

2. Service Quality

Improve 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

32 3. Shipment and Service Integrity

3. Shipment and Service Integrity

Better cargo security Less theft of services Mitigate some losses in progress Enhance safety Reduce insurance premiums

33 More Excerpts from the AIT Business Benefits Model

More Excerpts from the AIT Business Benefits Model

34 AIT Capabilities, Benefits, and Users

AIT Capabilities, Benefits, and Users

AIT 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?

35 AIT Capabilities, Benefits, and Users

AIT Capabilities, Benefits, and Users

The North River AIT Business Benefit Model includes all three dimensions

36 Dimension 1: Five Capabilities Produce Benefits

Dimension 1: Five Capabilities Produce Benefits

1. 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

37 Dimension 2: Three Types of Business Benefits

Dimension 2: Three Types of Business Benefits

1. Efficiency and productivity 2. Service quality 3. Shipment and service integrity

38 The North River AIT Business Benefit Matrix

The North River AIT Business Benefit Matrix

39 AIT Benefits Vary by User

AIT Benefits Vary by User

AIT 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

40 Applying the Model to Different Types of Industry

Applying the Model to Different Types of Industry

Shippers Manufacturers, distributors, retailers Transportation carriers Container operators, air freight, railroads, truckers Transportation-based service providers include Refuse haulers, cement delivery, package delivery

41 Dimension 3: The Type or Class of User

Dimension 3: The Type or Class of User

Backup slides fill in matrices

42 Intermodal Freight and Security

Intermodal Freight and Security

43 Three Views of Supply Chain Security

Three Views of Supply Chain Security

Containerization 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!

44 Requirements for Supply Chain Security

Requirements for Supply Chain Security

Assured integrity of conveyance loading and documentation Significantly reduced risk of tampering in transit Accurate, complete, and timely information about shipments

45 Improve Visibility and Control

Improve Visibility and Control

This is the most common recommendation to improve both security and productivity There are major institutional and technical challenges

46 Visibility Discussion is Confusing

Visibility Discussion is Confusing

Visibility 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

47 Technology Developments That Will Change Best Business Practices

Technology Developments That Will Change Best Business Practices

48 Powerful, long-term trend in information technology will move us

Powerful, long-term trend in information technology will move us

beyond 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?

49 Key Developments to Watch

Key Developments to Watch

Cheaper real-time ID and tracking Auto-networking tags Multi-mode readers Productizing of system integration Effective hybridization

Cheaper real-time ID and tracking

50 Cheaper Real-Time Tracking

Cheaper Real-Time Tracking

Better 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

51 Cost Trend in Real-time Transportation Monitoring

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

52 If Supply Chains are to be

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

53 Looking Ahead to Dynamic Flow Control

Looking Ahead to Dynamic Flow Control

54 Looking Ahead

Looking Ahead

Exploiting multiple technologies for Dynamic Flow Control ITS/CVO Supply Chain Integration ITV is necessary but not sufficient

55 Moving Beyond ITV

Moving Beyond ITV

Worldwide Stock Posture

Worldwide Transport Asset Status

56 Moving Beyond ITV: Dynamic Distribution Flow Control

Moving Beyond ITV: Dynamic Distribution Flow Control

Worldwide Stock Posture

Worldwide Transport Asset Status

57 Five Elements of Dynamic Flow Control

Five Elements of Dynamic Flow Control

1. 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

58 For More Information

For More Information

Papers 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

59 Thank you for your attention

Thank you for your attention

Mike Wolfe

60 Backup Slides: -Capabilities That Produce Benefits -Benefit Matrices

Backup Slides: -Capabilities That Produce Benefits -Benefit Matrices

by Type of User

61 Capabilities that Produce Benefits

Capabilities that Produce Benefits

1. 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

62 Confirm the Passing of a Tag: The Simplest Application

Confirm the Passing of a Tag: The Simplest Application

On Board

User Sites

Delivers Accurate & Timely Data!

RFID Tags & Other AIT

63 Adding Detailed Shipment Data: The DoD Application

Adding Detailed Shipment Data: The DoD Application

On Board

User Sites

Active Data-Rich RFID

Details Available When Needed

64 Collecting Data During Shipment: Adding Richness and Value

Collecting Data During Shipment: Adding Richness and Value

On Board

User Sites

Active Data-Rich Tags

Readers Capture Event Data

65 Capturing the Data That was Collected During Shipment

Capturing the Data That was Collected During Shipment

On Board

User Sites

Audit Trails for Users

Sensors & Devices

GPS Location Data

Active Data-Rich Tags

66 Long Range Communication: Access Anywhere, Any Time

Long Range Communication: Access Anywhere, Any Time

On Board

Sensors & Devices

Location Data

Optional Active Data-Rich Tags

Wide Area Communication

67 Long Range Communications Enables Real-Time Response

Long Range Communications Enables Real-Time Response

On Board

User Sites

Sensors & Devices

GPS or GLS Location Data

Wide Area Communication

Event-Driven Commo & Real-Time Response

68 Applying the Model to Different Types of Industry

Applying the Model to Different Types of Industry

Shippers Manufacturers, distributors, retailers Transportation carriers Container operators, air freight, railroads, truckers Transportation-based service providers include Refuse haulers, cement delivery, package delivery

69 Dimension 3: The Type or Class of User

Dimension 3: The Type or Class of User

70 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

71 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

72 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

73 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

74 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

75 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

76 Benefit Matrix for Typical Shippers

Benefit Matrix for Typical Shippers

77 Benefit Matrix for Typical Transportation Carriers Gray Shading Shows

Benefit Matrix for Typical Transportation Carriers Gray Shading Shows

Differences with Shippers

78 Benefit Matrix for Typical Trans

Benefit Matrix for Typical Trans

-based Service Providers Gray Shading Shows Differences with Transportation Carriers

CVO Intermodal Freight: ITS Benefits for Business
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