Download A. Orientation and Project Goals

Dinalog Demonstration Project
Sense & Response
in distribution of high-sensitive products
Improving Quality, Security, Efficiency and Resiliency
Project Plan
May 2011
Demonstration Project: Sense and Response in distribution of high-sensitive products
Table of Contents
Summary ......................................................................................................................................................... 3
A. Orientation and Project Goals ................................................................................................................... 4
Motivation .................................................................................................................................................. 4
Relation to Dinalog´s innovation themes ................................................................................................... 5
Objectives and goals ................................................................................................................................... 5
Expected results.......................................................................................................................................... 6
Relation to government policy ................................................................................................................... 7
Orientation ................................................................................................................................................. 8
B. Activities and Work Packages .................................................................................................................... 9
Phase 1: Demonstrate state-of-the-art .................................................................................................... 10
Phase 2: Define and pilot supply chain control concepts ......................................................................... 12
Phase 3: Evaluate and disseminate .......................................................................................................... 14
Planning .................................................................................................................................................... 15
C. Consortium and Project Organization...................................................................................................... 16
Project Team ............................................................................................................................................. 16
Third-party suppliers................................................................................................................................. 17
Project organization.................................................................................................................................. 18
D. Evaluation and Monitoring ...................................................................................................................... 19
E. Valorization, demonstration & dissemination strategy ........................................................................... 20
Valorization and knowledge dissemination .............................................................................................. 20
Demonstration .......................................................................................................................................... 21
Implementation ........................................................................................................................................ 21
References ..................................................................................................................................................... 22
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Summary
Motivation
This project will focus on the global distribution of high-sensitive products, initially targeting important
issues faced by the logistics industry related to temperature-controlled pharmaceutical shipments:
o Limited capability to detect and respond in real-time to critical disruptions;
o Inefficient supply chain execution;
o Increasing governmental quality and security regulations;
o Limited information sharing and coordination between supply chain participants.
These issues will be addressed by Panalpina, AirFrance KLM Cargo and Nycomed by exploring new
concepts for cross chain information sharing and coordination, supported by scientific research and
innovative real-time monitoring technologies. This topic is particularly urgent at this moment as the
amount of international temperature-sensitive shipments continues to grow rapidly.
Activities
The project will consist of three phases:
1.
Demonstration of state-of-the-art: including pilots with Panalpina, Nycomed, and AirFranceKLM to
determine priorities and requirements from the logistics industry.
2.
Define and pilot supply chain control: including the development of a framework for joint control
and different technology prototypes, followed by demonstrations in the high-tech and
pharmaceutical supply chain.
3.
Evaluate and disseminate: including the evaluation of the business value of the demonstrated
concepts, as well as various dissemination activities.
Expected results
The demonstrated ‘sense and response’ concepts are expected to result in measurable improvements in
supply chain quality, security, efficiency and resiliency. This will have many positive implications:
 Logistics service providers will move the demonstrated pilots into broader implementations, including
the development of value-added services for cross chain control.
 Technology and solution providers in this project are expected to develop new products based on the
prototypes for this project. This will lead to significant new business activity at the Dinalog Campus.
Our analysis shows a potential annual market for these new services of about 100-150 Million Euro in the
pharmaceutical supply chain alone. These results show that this project can make a significant
contribution to Dinalog’s long-term economic goals and can strengthen the competitive position of the
Netherlands towards other countries that invest in smart sensor technologies, such as Germany.
Innovativeness
The concept of ‘sense and response’ mechanisms based on smart sensor technologies is getting significant
industry attention. Logistics service providers such as Fedex, DHL, and DB Schenker are developing various
real-time monitoring solutions, and countries such as Germany are funding major research initiatives.
Our project is set apart from these initiatives by our focus on inter-organizational information sharing,
decision making and coordination (e.g. shipper, forwarder, carrier, handing agent). This makes our
project more aligned with the vision for cross chain control centers.
Valorization, demonstration and dissemination
The valorization and dissemination of this project is primarily focused on developing new business and
demonstration activities at the Dinalog Campus, for example with a demonstrator in LogiXperience.
Valorization of the research activities will be conducted through graduate internships (Master thesis
students) at AirFrance KLM Cargo and Panalpina. Specific attention for dissemination will be given to
service logistics, as the technologies developed in this project are also highly relevant in this area.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
A. Orientation and Project Goals
Motivation
This project will explore and develop innovative ‘sense and response’ concepts for supply chain control
in the global distribution of high-sensitive products. In the transportation of high-tech and
pharmaceutical products, the ability to avoid or quickly respond to disruptions is critical. In this project
Panalpina (forwarder), AirFrance KLM Cargo (air carrier) and Nycomed (pharmaceutical shipper) will
demonstrate concepts that increase the capabilities for pro-active intervention and cross chain control,
supported by scientific research and innovative real-time monitoring technologies. This is expected to
result in measurable improvements in supply chain security, quality, efficiency and resiliency.
We will initially focus on the global distribution of temperature-controlled pharmaceutical products,
which is referred to as ‘cold chain’. Logistics companies in this market are faced with important issues:
o Limited capability to detect and respond critical disruptions such as temperature excursions, as
traditional solutions like data loggers only provide information in hindsight.
o Inefficient supply chain execution, with significant time spent to analyze disruptions in historical
shipments. Industry experience shows that about 10%-20% of international temperature-shipments
experience some temperature deviations and require additional analysis.
o Limited information sharing and coordination between supply chain participants, making it very
difficult to analyze end-to-end information about a shipment, or to respond in real-time to exception
situations.
In this project we will address these issues through new concepts for cross chain information sharing,
decision making and coordination, supported by innovative tools for real-time visibility. This topic is
particularly urgent at this moment as the amount of international temperature-sensitive shipments is
growing significantly. The total value of these shipments has grown to €246 billion in 2011, a growth of
27% compared to 2008 [1]. This market will further grow in the near future, due to the pipeline of
temperature-sensitive biotech products and growth in emerging markets.
Shippers look to third-party logistics service providers (3PL’s) to take the lead in the coordination of
activities in this supply chain [2]. In response to this need, Panalpina is one of the companies that have
started the development of a control center for pharmaceutical transportation. In 2010 the company
started to collect (near) real-time temperature information through the application of smart sensors on
pharmaceutical shipments. This information is centrally stored in data centers in the Netherlands and
used for event management and process improvements.
The initial deployment has proven the value of real-time monitoring in pharmaceutical transportation,
but has also identified important limitations and areas for further development, particularly for supply
chain control and optimization. At the same time, other companies have identified a need to explore
improved supply chain control, such as Nycomed and AirFrance KLM Cargo.
In this project, these companies will jointly explore and demonstrate ‘sense and response’ concepts
across different modalities (road, air, ocean), focused on the pharmaceutical and high-tech supply chain.
The results are expected to be highly relevant to the development of cross chain control centers in these
high-sensitive supply chains, but also provide key insights for other vertical markets and service logistics.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Relation to Dinalog´s innovation themes
Dinalog’s ambition for the Netherlands is to have a leading position in setting up and securing cross
chain control centers (4-C). In this project, logistics service providers Panalpina and AirFrance KLM Cargo
will work with shippers such as Pfizer and Roche to explore and demonstrate ‘sense and response’
concepts for international transport of high-sensitive products. This is expected to result in new valueadded services related to cross chain control. In addition, pharmaceutical manufacturer Nycomed will
explore the potential value of real-time monitoring in their internal supply chain. With these activities
this project directly supports Dinalog’s innovation theme for Cross Chain Control Centers.
Although the primary focus on this demonstration project is related to 4-C, the underlying technologies
and concepts may also be applicable for service logistics. Real-time remote monitoring based on
wireless sensor networks and machine-to-machine communication also support remote diagnostics and
monitoring. This may be used for the optimization of planning and control of service engineers and
repair shops. This relation to service logistics will be further explored as part of the valorization and
dissemination of this project.
Objectives and goals
The main objectives for this project are to:
-
Develop and demonstrate concepts and value-added services related to supply chain control in
international multi-modal transportation for high-sensitive products. These concepts will be
demonstrated and implemented by logistics service providers and shippers.
-
Develop the underlying techniques and tools for real-time monitoring that provide the visibility
required for joint supply chain control and ‘sense and response’ mechanisms. This will require
the removal of current constraints, such as costs, standardization, reliability and regulatory
approvals.
-
Specify the business value of these ‘sense and response’ concepts in the global high-tech and
pharmaceutical supply chain, specifically in the following areas:
o Development of value-added service by logistics service providers, resulting in additional
revenue streams.
o Improvement in supply chain security, resulting in a reduction in theft and
counterfeiting.
o Improvement is quality control, resulting in a reduction of losses in the supply chain and
increase in on-time deliveries.
o Improvement in efficiency, resulting in improved allocation of human resources.
o Improvement in resiliency, resulting in improved capabilities to respond to supply chain
disruptions.
-
Disseminate the results to the logistics industry, particularly related to shippers and knowledge
institutes for additional research and development.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Expected results
The pilots and demonstrations in this project are expected to result in measureable improvents in supply
chain quality, security, efficiency and resiliency. The proven business value is expected to lead to
important follow-up activities, divided in the project partners and the contribution to economic goals.
Industry partners
For the industry partners the pilots are expected to lead to broader implementations within their
organizations, and the development of value-added services related to cross chain control in the global
distibution of high-sensitive products. This supports Panalpina and AirFrance KLM Cargo to strengthen
their market position. Panalpina may decide to locate staff for a cold chain control center to the
Netherlands. Overall, it is expected to lead to additional developments in the area of cross chain control
centers in The Netherlands.
These value-added services may lead to substantial
business volume for the logistics industry. Just for the
pharmaceutical supply chain to the total logistics costs
in 2008 were $43 billion, of which $5.2 billion, was
devoted to temperature-controlled shipping. This
value is expected to grow to $6.6 billion in 2011 [1].
Assuming that 2-3% of logistics costs are spent on
monitoring and control activities, this indicates a
market of approximately $120-180 Million (100-150
Million euro) for these value-added services. It is fair
to assume that similar investments will be made in ‘sense and response’ solutions for other high-value
supply chains, such as high-tech and chemical.
Technology and solution providers
For the technology and solution providers the project is expected to result in hardware and software
prototypes and feasibility analysis for products and services that can be commercialized in the future.
These services are directly related to the 4-C concept . This may lead to significant additional business
activity at the Dinalog Campus, as these products and services will be offered to a global customer base.
It is expectd that new companies will be founded based on the outcomes of this project.
Economic impact
With these results, it is clear that this project can make a significant contribution to Dinalog’s long-term
economic goals. The trend toward ‘intelligent cargo’ based on smart sensors and real-time monitoring is
expected to a have significant impact on the logistics industry, also beyond the pharmaceutical and hightech supply chain. With this project The Netherlands will strengthen its competitive position towards
other countries that are investing signficant resources in this area, such as Germany.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Relation to government policy
The global transportation of high-sensitive products is faced with increasing governmental regulations
related to quality monitoring of pharmaceuticals and security regulations related to theft, counterfeiting
and terrorist threats. Many international governmental policies are becoming stricter. As a result, the
logistics industry is increasingly challenged to meet these new regulations. This makes this project highly
relevant, as it develops efficient solutions for logistics service providers to address these regulations.
The transportation of pharmaceutical products is regulated by international regulations which are known
as Good Distribution Practices (GDP). Many countries are currently developing stricter regulations for
storage and distribution of pharmaceutical products. Real-time monitoring technologies and software
tools developed in this project may lead to new services from logistics service providers in this area.
Regarding security, particularly the American government in imposing stricter regulations on screening
incoming air freight shipments. Traditional screening methods are inadequate. This can be addressed
with innovative solutions such as the CargoBox, which will be piloted in this project.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Orientation
The concept of ‘sense and response’ mechanisms based on smart sensors and real-time monitoring is
getting significant attention from the industry and research community, in many cases related to the
distribution of sensitive products in the pharmaceutical and food supply chain. For example, the German
government is funding ambitious research initiatives in this area, such as the Intelligent Container Project
and DyCoNet.
Some examples from recent commercial initiatives by logistics service providers include the Fedex
Senseaware proposition (based on a GPS/GPRS data logger), DHL SmartSensor proposition (based on
passive RFID sensors), and DB Schenker SmartBox (for ocean freight shipments). An example of a more
scientific initiative is the Intelligent Container project in Germany. This project, led by the University of
Bremen, recently received funding from the German government to further develop logistics concepts
and technology solutions for real-time monitoring and distributed control in logistics. Another project
funded by the German government is DyCoNet, with participants like Fraunhofer Institute and Lufthansa
Cargo. This project is focused on intelligent air containers and related concepts such as autonomous
control based on multi-agent systems.
Our project is set apart from these commercial and scientific initiatives by our focus on interorganizational information sharing, decision making and coordination (e.g. shipper, forwarder, carrier,
ground handing agent). This makes our project more aligned with the vision for cross chain control
centers.
We will also develop technologies for real-time monitoring that are autonomous and cargo-centric, i.e.
require no installation of equipment in vehicles or containers. Our experience has shown that the
installation of communication equipment can be a major inhibitor for the application of real-time
monitoring solutions by shippers and forwarders.
In addition, we take a more holistic and integrated approach in other areas:
o Integration of supply chain control across modalities (road, air and ocean) - instead of focusing
on a single modality.
o Integration and combination of different technology and packaging solutions, including (active)
RFID, GPS, GPRS and satellite communication - instead of a focus on a single technology.
o Integration of planning and scheduling applications with real-time monitoring to develop
‘sense and response’ concepts – instead of focusing only on real-time monitoring. In this area we
will build on previous research conducted in the Netherlands, for example in the field of
prognostic logistics (PILOT project as part of Transumo).
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Demonstration Project: Sense and Response in distribution of high-sensitive products
B. Activities and Work Packages
The project consist of three distinct phases:
Phase 1: Demonstrate state-of-the-art. We will start of a number of short-term pilots using the current
state-of-the-art solutions for real-time monitoring and information sharing, using GPS/GPRS and wireless
sensor networking products. These pilots will provide additional input and requirements for the following
phase.
Phase 2: Define and pilot supply chain control. In this phase we will develop a framework for joint control
and coordination, and pilot innovative concepts and prototypes across modalities (ocean, air, and road) in
the high-tech and pharmaceutical supply chain.
Phase 3: Evaluate and disseminate. In this phase we will conduct scientific research into the business
value and feasibility for improved information-sharing, decision making and coordination. This will be
conducted based on the results from the previous phase. In addition, we will conduct specific
dissemination activities.
Phase 1:
Demonstrate
state-of-theart.
Duration:
5 months
Goal:
Demonstrate current state-of-the-art control centers and real-time information sharing
in various settings (shipper, freight forwarder, air carrier) and provide input and
requirements for Phase 2.
Activity 1.1: Nycomed pilot: cold chain control center in internal supply chain
Activity 1.2: Panalpina pilot: real-time information sharing in global transportation
Activity 1.3: Air France KLM Cargo: Proof of Concept by air carrier
Phase 2:
Define and
pilot supply
chain control
Goal:
Define, develop and pilot innovative concepts for supply chain control.
Activity 2.1: Development of framework for joint control and coordination.
Duration:
Activity 2.2: Prototypes for real-time monitoring with ocean and road.
9 months
Activity 2.3: Supply chain control in high-tech supply chain
Activity 2.4: Integrated supply chain pilot in pharmaceutical supply chain
Phase 3:
Evaluate and
disseminate
Goal:
Evaluation of business value and dissemination of experience.
Activity 3.1: Evaluation of business value
Activity 3.2: Demonstration and dissemination
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Phase 1: Demonstrate state-of-the-art
Activity 1.1: Nycomed pilot: cold chain control center at a pharmaceutical shipper
Description:
Nycomed - a Swiss-based pharmaceutical manufacturer - recognizes the increased need for cold chain
monitoring and aims to explore the business value of real-time monitoring in its internal supply chain. We
will conduct a pilot on temperature-sensitive shipments between warehouses in Roskilde (Denmark) and
Brussels (Belgium).
Planning:
Start: June 2011
End: September 2011
Work distribution:
 Work package leader: Nycomed. Nycomed will install active RFID networks in warehouses in
Roskilde (Denmark) and Brussels (Belgium). Shipments between these locations will be equipped
with wireless data loggers and a GPS/GPRS logger (in addition to traditional data loggers). QA
staff from Nycomed will monitor the shipments.
 Solution providers:
o Antaris Solutions: SmartView web-application and support activities.
o 4TS Oy: dSeal GPS/GPRS data logger
o Ambient Systems: Series 3000 wireless sensor networks
Expected results/deliverables/milestones:
- Evaluation of economic and technical feasibility and business value of ‘sense and response’
concept for an international pharmaceutical shipper.
- Organizational and IT requirements for joint supply chain control.
Activity 1.2: Panalpina pilot: real-time information sharing in a cold chain control center
Description:
Panalpina has started to collect real-time wireless sensor information on a number of international trade
lanes for pharmaceutical shipments. As part of the next phase in this development Panalpina will conduct
a pilot in which real-time temperature information on international shipments is shared with a major
pharmaceutical shipper.
Planning:
Start: July 2011
End: November 2011
Work distribution:
- Work package leader: Panalpina. Panalpina will extend the current software application with
capabilities for secure data sharing with a major shipper on shipments between Europe and
United States.
- Solution provider:
o Antaris Solutions: SmartView web-application, operational support and software
development. Antaris will work with the following third-party suppliers:
 Infodation: will conduct software development activities.
 Ovis Telematics: will provide network installation and management.
 Oxilion: will provide data hosting services to Antaris.
o 4TS Oy: dSeal GPS/GPRS data logger
o Ambient Systems: Series 3000 wireless sensor networks
Expected results/deliverables/milestones:
- Evaluation of inter-organizational information sharing between freight forwarder and
international pharmaceutical shipper.
- Organizational and IT requirements for joint supply chain control.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Activity 1.3: AirFrance KLM Cargo: Proof of Concept by air carrier
Description:
AirFrance KLM Cargo is a leading air carrier in global pharmaceutical shipments. In this activity, AirFrance
KLM Cargo intends to conduct a Proof of Concept as part of a Master graduation internship. The Proof of
Concept will evaluate active RFID and semi-passive RFID solutions for on-line tracking of pharmaceutical
shipments . The Proof of Concept will include a practical test at KLM’s facility at Schiphol Airport of both
technologies. An evaluation will be made on the technical and organizational feasibility of both products
(e.g. placing and removal of RFID tags on shipments, reading out sensor measurements, impact on
current operational processes)
Planning:
Start: September 2011
End: December 2011
Work distribution:
 AirFrance KLM Cargo will support graduate student
 Antaris Solutions: SmartView web-application, and support of graduate student
 Universiteit Twente: support of graduate student
 Technology providers:
o Ambient Systems: Series 3000 active RFID Evaluation Kit.
o CAEN RFID: semi-passive RFID Evaluation Kit.
Expected results/deliverables/milestones:
- Proof of Concept for on-line tracking of pharmaceutical shipments and pro-active intervention.
- Evaluation of economic and technical feasibility and business value of ‘sense and response’
concept for air carrier.
- Organizational and IT requirements
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Phase 2: Define and pilot supply chain control concepts
Activity 2.1: Development of framework for joint control and coordination.
Description:
Based on the results from Phase 1, scientific research will be conducted on the development of a
framework for joint information sharing and coordination. Particular focus will be given to the use of realtime information for joint decision making and coordination. This is expected to improve the capability
for pro-active intervention in case of disruptions. The research will be performed by a Master thesis
student.
Planning:
Start: September 2011
End: January 2012
Work distribution:
- Work package leader: Twente University.
- Input and support will be provided by Panalpina, AirFrance KLM Cargo and Nycomed.
Expected results/deliverables/milestones:
- Master thesis documents with framework for joint control and coordination.
Activity 2.2: Prototypes for real-time monitoring with ocean and road transports.
Description:
This work package will develop hardware and software prototypes for real-time monitoring during ocean
and road transportation. The technology prototypes will remove specific constraints with existing
solutions, such as costs, power supply, reliability and installation requirements. The prototypes under
development will be autonomous and cargo-centric, i.e. travel with the shipments without the need for
any installation of communication devices in vehicles or containers. For road transport a prototype will be
developed for a device that integrates GPS/GPRS with RFID combination in a small, battery-powered
device. For ocean freight we will develop a prototype of a device that combines GPRS and satellite
communication. The prototypes will be integrated with a software application for event management.
Planning:
Start: October 2011
End: April 2012
Work distribution:
- Work package leader: 4TS Oy. 4TS will lead the development of autonomous devices for real-time
monitoring during ocean freight shipments, as well as road transport.
- Technology providers:
o Ambient Systems: Series 3000 wireless sensor networks, to be integrated with dSeal
device.
o Antaris Solutions: SmartView web-application, operational support and software
development
Expected results/deliverables/milestones:
- Prototype of autonomous device for in-transit monitoring for road transport.
- Prototype of autonomous device for in-transit monitoring for ocean freight.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Activity 2.3: Supply chain control in high-tech supply chain
Description:
This work package will pilot and demonstrate the use of a highly innovative solution that includes an
intelligent air cargo container and shipping control system. This solution will be tested by Panalpina on an
integrated road-air trade lane for high-tech shipments between Europe and United States. After the pilot
the economic value and technical feasibility will be evaluated.
Planning:
Start: November 2011
End: March 2012
Work distribution:
- Work package leader: Panalpina. Panalpina will conduct the pilot on an integrated road-air trade
lane for high-tech shipments.
- Solution providers:
o CargoBox B.V. will provide the innovative air container with e-seal and GPS/GPRS
monitoring.
Expected results/deliverables/milestones:
- Successful pilot of intelligent air cargo container.
- Evaluation of business value and technical and organizational feasibility.
Activity 2.4: : Integrated supply chain control pilot in pharmaceutical supply chain
Description:
This work package will provide an integrated pilot for supply chain control that builds on the previous
activities. The framework developed in Activity 2.1 will be applied, and implemented through integration
of the event management software application with existing logistics planning and scheduling systems at
Panalpina. The hardware prototypes developed in Activity 2.2 will be used in this pilot, and potentially
also the intelligent airfreight container that was piloted in Activity 2.3. This is expected to lead to
improved decision making and information sharing with supply chain partners.
Planning:
Start: March 2012
End: September 2012
Work distribution:
- Work package leader: Panalpina. Panalpina will provide specification on software integration and
architecture. Panalpina will also manage the pilot across road, air and ocean shipments.
- Solution providers:
o Antaris Solutions will lead the software integration from the side of the event
management application and also provide support services to the pilot. Antaris will work
with the following third-party suppliers:
 Infodation: will conduct software development activities.
 Ovis Telematics: will provide network installation and management.
 Oxilion: will provide data hosting services to Antaris.
o 4TS Oy: provide hardware prototypes developed in Activity 2.2
Expected results/deliverables/milestones:
- Software integration between event management software and planning systems.
- Evaluation of business value and technical feasibility.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Phase 3: Evaluate and disseminate
Activity 3.1: Evaluation of business value
Description:
This work package will include scientific research by two Masters graduation internships on the business
value of the pilots and prototypes that were developed in the previous phase. This will include cost and
benefit analysis for different supply chain participants, including quantitative financial analysis, as well as
qualitative analysis (organizational considerations, deployment obstacles such as standardization etc).
Based on this analysis, recommendations will be formulated for different supply chain stakeholders.
Planning:
Start: June 2012
End: November 2012
Work distribution:
- Work package leader: Twente University.
- Input and support will be provided by Panalpina, AirFrance KLM Cargo and Nycomed, as well
Antaris Solutions B.V.
Expected results/deliverables/milestones:
- Business case analysis of demonstrated solutions, with quantitative and qualitative analysis.
- Recommendations for different supply chain stakeholders.
Activity 3.2: Dissemination
Description:
Dissemination of the project results will be an on-going activity through a range of activities. We will setup a project web-site with public information about the project. In the future this may also include
business case tools. We also plan to participate at the Logixperience demonstration environment at the
Dinalog Campus. Furthermore, we will organize events and seminars, for example with ACN (Air Cargo
Netherlands).
Planning:
Start: September 2011
End: October 2012
Work distribution:
- Work package leader: Antaris Solutions B.V.
- Third-party suppliers:
o Logixperience (demonstration environment at Dinalog Campus)
o On-line marketing agency (web-site design and development)
o ACN (Air Cargo Nederland)
Expected results/deliverables/milestones:
- Project web-site
- Demonstration at Logixperience
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Planning
The following diagram illustrates the planning for this project:
C.
15
Demonstration Project: Sense and Response in distribution of high-sensitive products
C. Consortium and Project Organization
Project Team
Partner’s name
Panalpina Air & Ocean:
Mr. Daniel Lutz – Head of
Operations.
Mr. Paul Fairclough – Head of
Industry Vertical Healthcare
Nycomed:
Mr Niko Peltola – Supply Chain
Manager Global Supply Chain
AirFrance KLM Cargo:
Mr. Jan Vreeburg
Antaris Solutions B.V:
Mr. Eelco de Jong – Managing
Director
University of Twente:
Prof.dr. Jos van Hillegersberg
Ambient Systems B.V:
Mr. Mark Bijl – Senior Technical
Consultant
CargoBox B.V.
Mr. Henk Hilders – Managing
Director
4TS Corporation Oy:
Mr. Antti Kaihoovara– CEO
Role and input
Specific competence
Project leader and leader of
various demonstration work
packages . Will involve its
pharmaceutical customers.
Freight forwarder
Pharmaceutical manufacturer.
Will provide shipper’s
Shipper’s perspective.
perspective.
Will conduct Proof of Concept.
Will provide perspective from air Air carrier
carrier.
Web-based software that
Provide web-based application
implements ‘sense and response’
and support services.
mechanisms, based on
Will also serve as project
integration with various realapplicant.
time monitoring solutions.
Lead research activities related
to the joint control and
Leading research institute.
coordination in international
transportation.
Provider of dynamic wireless
sensor network which provide a
Real-time monitoring based on
key mechanism for real-time
wireless sensor networking.
monitoring.
Provider of innovative intelligent
air freight container that helps to
Integrated approach for air
improve efficiency and security
freight transportation
in air transport of high-sensitive
products.
Provider of monitoring and
localization products based on
Real-time monitoring based on
GPS/GPRS communication which
GPS/GPRS technologies.
provide a key mechanism for
real-time monitoring
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Third-party suppliers
Name
Infodation
Ovis Telematics B.V.
Oxilion B.V.
Van Asselt Accountants
On-line marketing agency
Role and input
Software development service
for web-based application that
will be used for various pilots.
Support services to the various
pilots, including hardware
configuration, network
installation, remote network
management
Data hosting for web-based
application that will be used for
various pilots.
Support financial administration
of the project
Web-site development for
project web-site
17
Specific competence
Software development
Support services for real-time
monitoring technologies.
Web-hosting services
Accountancy services
Demonstration Project: Sense and Response in distribution of high-sensitive products
Project organization
The project organization of the project is adapted to the structure of the project, taking care of the
project size and management efficiency. The management structure, as presented in figure below
includes:
 Project Management realized by the Project Leader, and supported by the Project Administrator.
 The Steering Committee (SC), as the strategic decision-making body of the group.
 The Work Package Leaders (WPL), in charge of managing all day-to-day project work.
The Steering Committee shall be responsible for the strategic direction of the project, in order to ensure
the project meets the requirements. In addition, the Steering Committee will be responsible for the
resolution of any conflicts, which cannot be agreed on the other project management levels.
The Steering Committee will consist of:
- Panalpina: Mr. Daniel Lutz
- AirFrance KLM: Mr. Jan Vreeburg
- Nycomed: Mr. Niko Peltola
- Antaris Solutions: Mr. Eelco de Jong
- University of Twente: Prof. dr. Jos van Hillegersberg
- Antaris Solutions: Mr. Mark Bijl
- 4TS Corporation Oy: Mr. Antti Kaihoovara
- CargoBox: Mr. Henk Hilders
Mr. Paul Fairclough from Panalpina will act as Project Leader for this project, supported by Mr. Eelco de
Jong from Antaris Solutions as Project Administrator. They will be responsible for technical, legal,
contractual, and financial management of the project. In addition, they are responsible for the quality
assurance management.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
D. Evaluation and Monitoring
Evaluation of the project during the project will be conducted at the Project and at the Activity Level.
Activity Level:
Each Activity that involves development of prototypes or demonstration in a practical setting, will be
evaluated. It is the responsibility of the Work Package Leader to provide this evaluation report, based on
a fixed template. The evaluation will be against the objectives for the activity, and includes the following
elements:
- degree to which new concepts were actually achieved;
- unforeseen issues or obstacles that were encountered ;
- degree to which the new concept created business value;
- recommendations for next steps or further improvements.
Project Level:
For the project, the Project Leader will make a quarterly evaluation. This evaluation is used to monitor
progress against the project planning, but also to evaluate the project against the set objectives. The
input for the quarterly evaluation will be based on the input from the evaluation of each Activity. The
quarterly evaluation will be used by Steering Committee as input for potential adjustments in the project
planning or scope.
In addition, we will conduct Activity 3.1 to evaluate the business value of the concepts that were
explored and demonstrated in this project. This activity will be performed by two Master graduate
internships. The evaluation will include a cost and benefit analysis for different supply chain participants,
including quantitative financial analysis, as well as qualitative analysis (organizational considerations,
deployment obstacles such as standardization etc). Based on this analysis, recommendations will be
formulated for different supply chain stakeholders.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
E.
Valorization, demonstration & dissemination strategy
Valorization and knowledge dissemination
The valorization of this project is primarily focused on developing new business and demonstration
activities at the Dinalog Campus. This will start at the beginning of the project by using the Dinalog
Campus as our project location, for example to conduct workshops with industry participants.
Furthermore, we plan to locate the operational activities at the Dinalog Campus.
Within the next five years the valorization activities are expected to result in significant new business
activities for ICT solution providers, for example related to advanced software systems, data hosting and
hardware devices. We also expect additional staffing from international logistics service providers at the
Dinalog Campus (specifically global freight forwarders and 3PL’s).
Valorization of the research activities will be conducted through various graduate internships (Master
thesis students) at the participating industry companies (Panalpina and AirFrance KLM Cargo). This will
benefit valorization and also provide short-term benefits to the participating industry companies.
Knowledge dissemination will be achieved through a specific project web site. The web site will include
project information, presentations, articles, business cases etc. We have included a budget of 2000 euro
to develop this web site.
Furthermore, we will provide business cases for education and training, as well as lectures, seminars and
publications in professional and business journals. We plan to work with ACN (Air Cargo Netherlands) on
dissemination activities, for example through a seminar for the logistics industry.
In the dissemination activities, specific attention will be given to the area of service logistics. While the
primary focus of this project is on concept of cross chain control, the results may also be relevant in the
area of service logistics. Real-time remote monitoring based on wireless sensor networks and machineto-machine communication are also applicable in remote diagnostics and monitoring. This may be used
for the optimization of planning and control of service engineers and repair shops.
Through the various dissemination activities we plan to reach the majority of relevant stakeholders in
the logistics industry in the Netherlands.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
Demonstration
Additional dissemination and demonstration are activities are planned through active participation at the
LogiXperience demonstration environment at the Dinalog Campus. The Logixperience set-up is related to
a concept for the high-tech supply chain (L-Pad) , and therefore very well suited to the prototypes
developed in this project. The participation in LogiXperience will require a financial investment, as well
as an investment in time.
It is expected that the LogiXperience will be visited by hundreds of visitors from the logistics industry in
2012.
Implementation
Further implementation is the primary responsibility of the industry participants (Nycomed, Panalpina
and AirFrance KLM Cargo). It is expected that the results of this project will lead to broader
implementations within their organization, and the development of new value-added services.
In addition, the technology and solution providers are expected to further develop the prototypes
developed for this project. This may require additional investments and lead to significant new business
activities. However, it is difficult to quantify these elements at this stage.
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Demonstration Project: Sense and Response in distribution of high-sensitive products
References
1. Biopharma Cold Chain Sourcebook 2010,”, Pharmaceutical Commerce, 2010
2. 15th Annual Third-Party Logistics Study (2010), Capgemini Consulting and Georgia Institute of
Technology.
3. Butner, K.(2010) The smarter supply chain of the future, Strategy and Leadership, 38 (1), pp. 2231.
4. Decker, C., Berchtold, M., Chaves, L.W.F., Beigl, M., Roehr, D., Riedel, T., Beuster, M., Herzog, T.,
Herzig, D. (2008), Cost-benefit model for smart items in the supply chain, Lecture Notes in
Computer Science, 4952 LNCS, pp. 155-172
5. Hsueh, C.-F., Chang, M.-S. (2010), A Model for Intelligent Transportation of Perishable Products,
International Journal of Intelligent Transportation Systems Research
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