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Blockchain @ Logistics

Supply Chain (#SC), #Logistics, #Sustainable #Transportation, and Internet of Things (#IoT) are in the center of attention in Urban, National, and International level... #BLOCKCHAIN #slides #Sajjad_Khaksari #blockchaintechnology #distributedledger

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Blockchain @ Logistics

  1. 1. Sajjad Khaksari Serial Production Coordinator (SPC) Engineer at ALSTOM
  2. 2. Agenda  BLOCKCHAIN & LOGISTICS  CHALLENGES  LACK OF LITERATURE  SCHEME OF BLOCKCHAIN APPs 2© 2018 Sajjad Khaksari - Blockchain Technology
  3. 3. BLOCKCHAIN & LOGISTICS  Supply Chain (SC), Logistics, and (Internet of Things) IoT are in the center of attention in Urban, National, and International level.  Supply Chain Management is an integrating function with primary responsibility for linking business functions into a cohesive and high- performing business model. (Pawlewski and Greenwood, 2014)  Logistics is considered by the different actors as the ‘‘reason to be’’ of each firm belonging to a supply chain. Without logistics, no raw material can be delivered. (Gonzalez-Feliu et al., 2014)  The Internet of things (IoT) is the network of physical machines, vehicles, home devices and other items embedded with electronics, software, sensors, actuators, and network connectivity which allows these objects to connect and exchange data. (Eric Brown, 2016) 3© 2018 Sajjad Khaksari - Blockchain Technology
  4. 4. BLOCKCHAIN & LOGISTICS  Logistics is categorized on the definition of the network studied regarding the combination of three (3) main transport modes (Crainic, Perboli, Rosano, 2017):  Unimodal: involves only one mode of transport (e.g. Road)  Multimodal: involves at least two modes and one terminal for transfer (e.g. Road-Rail and Dry-Port)  Intermodal: refers to a multimodal chain of container- transportation services with no freight handling.  The main characteristic of intermodal freight transportation is that goods are moved in one loading unit and they have not to be handled when changing modes (European Conference of Ministers of Transport, 2001). 4© 2018 Sajjad Khaksari - Blockchain Technology
  5. 5. BLOCKCHAIN & LOGISTICS  Intermodal transportation networks involve at least two modes and freight being packed into a “container”. 5© 2018 Sajjad Khaksari - Blockchain Technology  An intermodal transportation system is made up of several different actors interacting with each other.  Shippers generate the freight transportation demand  Carriers perform the transport for the shippers  Freight logistics providers (FLPs) provide a range of value-added logistics services
  6. 6. BLOCKCHAIN & LOGISTICS  Facility and infrastructure managers may be public entities or private firms with public stakeholders. They do not realize freight transportation but instead deal with the management of the physical networks (e.g. roads and highways) 6© 2018 Sajjad Khaksari - Blockchain Technology  Institutional authorities (e.g., governments and public administrations) are the actors who tax, give incentives, set up policies, and regulate transport activities.
  7. 7. BLOCKCHAIN & LOGISTICS 7© 2018 Sajjad Khaksari - Blockchain Technology  Customers represent the receivers of the shipment services. They can be the final client, retailer, distributor, or wholesaler. Customers include citizens as well, and they are mindful of emissions, safety, and viability within their local areas.  The aforementioned Transport & Logistics actors have their own goals, make their own decisions, and they are linked with the others through many interconnections, interactions, and interdependencies.  All contribute to make intermodal transportation a complex system.
  8. 8. BLOCKCHAIN & LOGISTICS 8© 2018 Sajjad Khaksari - Blockchain Technology
  9. 9. BLOCKCHAIN & LOGISTICS  Also, decisions and interrelations may be affected by uncertainty from many different sources, often related to demand, travel times, and handling operations (Maggioni, Perboli, & Tadei, 2014).  The efficiency and reliability of the intermodal transportation system require coordination, and fast information flows among several actors, interoperability among the operational activities and modes, and behavioral aspects.  Intermodal transportation supports the performance of emerging operational and business models for transportation and logistics (e.g., City Logistics, Physical Internet, and Synchro-modality) that aim to jointly achieve economic, environmental, and societal objectives. 9© 2018 Sajjad Khaksari - Blockchain Technology
  10. 10. BLOCKCHAIN & LOGISTICS  In this complicated circumstances, the technological requirement for Blockchain as a decentralized and trustable structure appears.  In fact, considering the opening scenes of Blockchain technology, it is developed and raced its applicability in several industries (other than the financial area) including logistics.  In particular, Supply Chain, City Logistics, Cross-modal, and Intermodal transportation are recognized as fertile territories for a systematic Blockchain accomplishment.  Another important factor which would help recognition of Blockchain as a prolific innovation is the need of confidence that usually describes the needs during intermodal operations. 10© 2018 Sajjad Khaksari - Blockchain Technology
  11. 11. BLOCKCHAIN & LOGISTICS  Currently there are many organizations devoting on Blockchain, and they try to build a component of an extended purpose concerning the Distributed Ledger Technologies applied to Logistics.  Besides the logistics companies, academic research centers are interesting to study the potential applicability of Blockchain.  These studies are exciting because researchers strive to analyze the structure design of distributed platforms for anonymized dataset trading.  Those programs are not possessing any centralized Third Party concerning the financial, environmental, and operational world of logistics and transportation. 11© 2018 Sajjad Khaksari - Blockchain Technology
  12. 12. BLOCKCHAIN & LOGISTICS  On another hand, these platforms consist of peers and consensus- based Blockchain mechanism, and every peer serves as a data broker, data receiver, and a verifier for Blockchain during a logistics data transfer transaction. 12© 2018 Sajjad Khaksari - Blockchain Technology  Also, the innovative actors in transportation companies, are engaging in scrutinizing the potential advantages of Blockchain technology as a Disruptive Technology as “the first native digital medium for value”. (Don Tapscott, 2016) – e.g. FedEX Case
  13. 13. BLOCKCHAIN & LOGISTICS  Boucher, P. (2017) believes that Blockchain is a revolutionary technology that enables the tracking of items through complex supply chains, as in the diamond industry, where gems are traced from mines to end consumers.  Blockchain technology (BCT) promises to change the way individuals and corporations exchange value and information over the Internet, and it seems to thus be perfectly positioned to enable new levels of collaboration among supply chain actors.  The first commercial application projects are already gaining traction, as technology giant IBM recently announced that it is teaming with Maersk Line as one of the largest logistics service providers in the world, to create a new solution to digitize the global, cross-border supply chain through BCT. (Erik Hofmann, et al., 2018) 13© 2018 Sajjad Khaksari - Blockchain Technology
  14. 14. BLOCKCHAIN & LOGISTICS 14© 2018 Sajjad Khaksari - Blockchain Technology
  15. 15. BLOCKCHAIN & LOGISTICS  The IBM Watson IoT Platform with a Fabric integration replicates data across a private Blockchain network and eliminates the need to have all IoT data collected and stored centrally. 15© 2018 Sajjad Khaksari - Blockchain Technology  Decentralized Blockchain networks also improve the security of IoT devices. Unique digital identities are built for each device over time. This new way of creating and securing identity is exceptionally hard to spoof. (Laurence, 2017)
  16. 16. Agenda  BLOCKCHAIN & LOGISTICS  CHALLENGES  LACK OF LITERATURE  SCHEME OF BLOCKCHAIN APPs 16© 2018 Sajjad Khaksari - Blockchain Technology
  17. 17. CHALLENGES  Logistics and transportation have faced several challenges before the “Silk Road” time and into the future. 17© 2018 Sajjad Khaksari - Blockchain Technology PAST FUTURE PRESENT
  18. 18. CHALLENGES & City Logistics  As discussed and illustrated previously, the logistics and transportation are complex systems.  Particularly, the Intermodal Freight Transportation is a complex arrangement because it is involved with several parties and it encounters certain challenges within following topics:  City Logistics is the process for totally optimizing the logistics and transport activities in urban areas.  It considers the traffic environment, congestion and energy consumption within the framework of a market economy. (Eiichi Taniguchi, 1999) 18© 2018 Sajjad Khaksari - Blockchain Technology
  19. 19. CHALLENGES & Synchromodality  Synchromodality is the 5th pathway of ALICE roadmap.  Synchromodality involves a step change from the current freight transportation system, towards the ultimate vision of the Physical Internet.  By synchronizing intermodal services between modes and with shippers. 19© 2018 Sajjad Khaksari - Blockchain Technology
  20. 20. CHALLENGES 20© 2018 Sajjad Khaksari - Blockchain Technology © 2016 ALICE: The European Technology Platform for Logistics Synchromodality BLOCKCHAIN
  21. 21. CHALLENGES & Physical Internet  Physical Internet is an open global logistics system.  Established on physical, digital, and operational interconnectivity, through encapsulation, interfaces and protocols. (Benoit Montreuil, 2013)  By transforming the way, physical objects are moved, stored, realized, supplied and used.  It aims toward greater logistics efficiency and transportation sustainability 21© 2018 Sajjad Khaksari - Blockchain Technology
  22. 22. Agenda  BLOCKCHAIN & LOGISTICS  CHALLENGES  LACK OF LITERATURE  SCHEME OF BLOCKCHAIN APPs 22© 2018 Sajjad Khaksari - Blockchain Technology
  23. 23. LACK OF LITERATURE  Since 2008, after the famous paper of Satoshi Nakamoto, the number of literature concerning the Blockchain Technology and specifically about SC and Logistics are increased (specially in 2017).  Note that 62 papers have been analyzed.  However, the lack of literature regarding these topics is notable.  Further research and studies are required. 23© 2018 Sajjad Khaksari - Blockchain Technology 1% 2% 3% 5% 18% 71% LITERATURE 2008 2012 2013 2014 2016 2017
  24. 24. Agenda  BLOCKCHAIN & LOGISTICS  CHALLENGES  LACK OF LITERATURE  SCHEME OF BLOCKCHAIN APPLICATIONS – MTI Case 24© 2018 Sajjad Khaksari - Blockchain Technology
  25. 25. 25 APPLICATION BUSINESS DIVISION NOTES IBM Maritime Logistics a joint-developed project with MAERSK LINE Walmart Food Supply chain Includes drone delivery plan Port of Rotterdam Maritime Logistics Includes inland waterways etc. FedEX Logistics Carriers - Foodchain® Food Supply chain Tracks and traces materials and products Provenance Supply chain Determine the authenticity of a product, where it was manufactured MTI Maritime Logistics TrustMe public Blockchain technology - SolasVGM © 2018 Sajjad Khaksari - Blockchain SCHEME OF BLOCKCHAIN APPLICATIONS  Eventually, there are emerging numerous cases and several applications concerning the usage of Blockchain technology in Transportation and Logistics Industry.
  26. 26. BLOCKCHAIN APPLICATIONS – MTI Case  The Marine Transport International (MTI) is an international Maritime Transportation company which is located in NEW JERSEY (USA).  Jody Cleworth (CEO) considers that Blockchain empowers the logistics industry, and announced the First Shipping Use of Public Blockchain Technology by MTI (a pilot project).  MTI was practicing the TrustMe and services from Black Swan.  Pilot Objectives: the use of Blockchain within MTI SolasVGM  On August 2017, the MTI's pilot was validated by the University of Copenhagen & BLOC (Blockchain Labs for Open Collaboration).  Advantages:  Link various supply chain actors and real-time synchronization  Sustainable alternative of cumbersome logs, data intermediaries, spreadsheets, and privet or separated database (transparency). 26© 2018 Sajjad Khaksari - Blockchain Technology
  27. 27. BLOCKCHAIN APPLICATIONS – MIT Case  Additionally, the Journal of Commerce (JOC) notice that the SolasVGM software which has created by Marine Transport International (MTI) is able to facilitate the sharing of container weights which is required by international regulations.  SOLAS VGM IS FULLY BLOCKCHAIN APPLICATION. 27© 2018 Sajjad Khaksari - Blockchain Technology
  28. 28. REFERENCES  Pawlewski, P., & Greenwood, A. (Eds.). (2014). Process Simulation and Optimization in Sustainable Logistics and Manufacturing. Cham: Springer International Publishing.  J. Gonzalez-Feliu et al. (eds.), Sustainable Urban Logistics: Concepts, Methods 21 and Information Systems, EcoProduction, DOI: 10.1007/978-3-642-31788-0_2, Springer-Verlag Berlin Heidelberg 2014  Brown, Eric (2016), "Who Needs the Internet of Things?", Retrieved 10 January 2018. [Online] Available:  T.G. Crainic et al., Simulation of intermodal freight transportation systems: a taxonomy, European Journal of Operational Research (2017),  Crainic, T. G., & Kim, K. (2007). Intermodal Transportation. In C. Barnhart, & Laporte (Eds.), Transportation. In Handbooks in Operations Research and Management Sci- ence: 14 (pp. 467–537). North-Holland, Amsterdam. chapter 8.  European Conference of Ministers of Transport (2001). Terminology on combined transport. United Nations. New York and Geneva.  SolasVGMTM: 28© 2018 Sajjad Khaksari - Blockchain Technology
  29. 29. REFERENCES  Jong-Hyouk Lee; Marc Pilkington; (2017). How the Blockchain Revolution Will Reshape the Consumer Electronics Industry [Future Directions]. IEEE Consumer Electronics Magazine, 6(3), 19–23. Retrieved from  Hofmann, E., Strewe, U. M., & Bosia, N. (2018). Supply Chain Finance and Blockchain Technology. Cham: Springer International Publishing. 62371-9  Tiana Laurence (2017), Hyperledger, the Blockchain, and the Future Of The Digital World, BlockchainNews. February 8th, 2017. [Online] Available:  ALICE Consortium (2015). WG2 Corridors, Hubs and Synchromodality. [Online] Available:  Montreuil, Benoit. “Physical Internet Manifesto, version 1.11.1”, CIRRELT Interuniversity Research Center on Enterprise Networks, Logistics and Transportation, Quebec, 28 November 2012. Retrieved on 6 February 2013.  Taniguchi, E., Thompson R.G., and Yamada, T. (1999). Modelling city logistics. In: City Logistics I (E. Taniguchi and R.G. Thompson, eds.), Institute of Systems Science Research, Kyoto, pp. 3-37  Yan, S. (2015). Why the “One Belt One Road” Initiative Matters for the EU. Retrieved January 11, 2018, from initiative-matters-for-the-eu/ 29© 2018 Sajjad Khaksari - Blockchain Technology
  30. 30. 30© 2018 Sajjad Khaksari - Blockchain Technology CONTACTS Sajjad Khaksari