Central logistics will improve global resource allocation
The human body delivers sustenance to its cells through a single primary delivery system, the blood stream. A new system of generic global logistics could reduce physical delivery costs massively through a planetary logistics system that tracked all available materials handling assets, as assessed by University or Arkansas, Virginia Tech and Thompkins Intl.
ABSTRACT: The Physical Internet (PI) is envisioned as a new paradigm for interconnected logistics systems, building on the recent success of horizontal collaboration projects. As part of a two-year research project funded by the U.S. National Science Foundation and eighteen thought leader organizations, we have developed models to quantify the effects on sustainability and profits as organizations shift to interconnected logistics systems. Our results indicate that the PI represents a “win-win-win” virtuous cycle with the business models of shippers, receivers and transportation service providers all benefiting from the PI in terms of increased profit margins and smaller environmental footprints. In addition, the transportation network that is anticipated to emerge would lead to strategic impacts on network design, customer service and the ability to significantly reduce the perennial driver shortage issue through reduced driver turnover. In addition to presenting business briefs for the principal PI participants, we also present possible paths forward, including a call for action in terms of focused pilot studies co- funded by shippers, receivers, and providers.
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