Trends and challenges in logistics and supply chain management

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(1)ERCIM. Number 105. April 2016. NEWS. www.ercim.eu. Special theme. Planning and Logistics Also in this issue:. Keynote: Trends and Challenges in Logistics and Supply Chain Management by Henk Zijm, Professor of Production and Supply Chain Management, University of Twente. Research and Innovation: Business Process Execution Analysis through Coverage-based Monitoring by Antonello Calabrò, Francesca Lonetti, Eda Marchetti, ISTI-CNR.

(2) Editorial Information. ERCIM News is the magazine of ERCIM. Published quarterly, it reports on joint actions of the ERCIM partners, and aims to reflect the contribution made by ERCIM to the European Community in Information Technology and Applied Mathematics. Through short articles and news items, it provides a forum for the exchange of information between the institutes and also with the wider scientific community. This issue has a circulation of about 6,000 printed copies and is also available online. ERCIM News is published by ERCIM EEIG BP 93, F-06902 Sophia Antipolis Cedex, France Tel: +33 4 9238 5010, E-mail: contact@ercim.eu Director: Jérôme Chailloux ISSN 0926-4981. Subscription Subscribe to ERCIM News by sending an email to en-subscriptions@ercim.eu or by filling out the form at the ERCIM News website: http://ercim-news.ercim.eu/ EditorialBoard: Central editor: Peter Kunz, ERCIM office (peter.kunz@ercim.eu) Local Editors: Austria: Erwin Schoitsch (erwin.schoitsch@ait.ac.at) Belgium:Benoît Michel (benoit.michel@uclouvain.be) Cyprus: Ioannis Krikidis (krikidis.ioannis@ucy.ac.cy) Czech Republic:Michal Haindl (haindl@utia.cas.cz) France: Steve Kremer (steve.kremer@inria.fr) Germany: Michael Krapp (michael.krapp@scai.fraunhofer.de) Greece: Eleni Orphanoudakis (eleni@ics.forth.gr), Artemios Voyiatzis (bogart@isi.gr) Hungary: Erzsébet Csuhaj-Varjú (csuhaj@inf.elte.hu) Italy: Carol Peters (carol.peters@isti.cnr.it) Luxembourg: Thomas Tamisier (thomas.tamisier@list.lu) Norway: Poul Heegaard (poul.heegaard@item.ntnu.no) Poland: Hung Son Nguyen (son@mimuw.edu.pl) Portugal: Joaquim Jorge (jorgej@tecnico.ulisboa.pt) Spain: Silvia Abrahão (sabrahao@dsic.upv.es) Sweden: Kersti Hedman (kersti@sics.se) Switzerland: Harry Rudin (hrudin@smile.ch) The Netherlands: Annette Kik (Annette.Kik@cwi.nl) W3C: Marie-Claire Forgue (mcf@w3.org). Contributions Contributions should be submitted to the local editor of your country Copyrightnotice All authors, as identified in each article, retain copyright of their work ERCIM News is licensed under a Creative Commons Attribution 4.0 International License (CC-BY). Advertising For current advertising rates and conditions, see http://ercim-news.ercim.eu/ or contact peter.kunz@ercim.eu ERCIMNewsonlineedition The online edition is published at http://ercim-news.ercim.eu/ Nextissue July 2016, Special theme: Cybersecurity. Cover photo by courtesy of Electrocomponents plc..

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(19) Keynote. Trends and Challenges in Logistics and Supply Chain Management by Henk Zijm In today’s global economies, logistics is a key facilitator of trade, and hence an important factor in rising prosperity and welfare. Natural resources are scarce and not evenly distributed in terms of type and geographical location in the world. Logistic chains enable the distribution of materials, food and products from the locations where they are extracted, harvested or produced to people’s homes and nearby stores. At the same time, current logistics systems are fundamentally unsustainable, due to the emission of hazardous materials (CO2, NOx, particulate matter), congestion, stench, noise and the high price that has to be paid in terms of infrastructural load. Things are even getting worse: while the European Commission has set (not achieved) targets to reduce Greenhouse Gas Emissions (GGE) in 2015 to 60 % as compared to 1990, the percentage of transport related GGE increased from 25 % in 1990 to 36 % today. The still growing world population stresses the need to further increase productivity while at the same time diminishing the ecological and societal footprint. This requires a quality upgrade of the human resource pool by better education and training, including lifelong learning programs. Productivity can also be improved by better support tools, easier access to relevant information, and further automation of both technical processes (i.e. robotics) and decision making (artificial intelligence). The same tools might also help to reduce bordercrossing logistics systems’ vulnerability to crime and illicit acts, such as theft, organized immigration crime (human trafficking) and customs law violations. The continuing urbanization poses a further challenge. The development of wealth in Asia and Latin America has resulted in a huge shift from agricultural and nomadic forms of living to urban life. More and more cities with over ten million inhabitants have emerged, requiring different modes of transport and logistics systems than available today. There is an increasing interdependency between supply chain design ERCIM NEWS 105 April 2016. or management and urban planning or land-use management. In addition, due to both political conflicts and natural disasters, the importance of humanitarian logistics can hardly be overestimated. But also consumer behaviour is changing rapidly, demonstrated for instance by the rapid advance of e-commerce, with a profound impact on both forward and reverse logistics and supply chains. Clearly, the continuous pressure on fast delivery is only possible by an excellently functioning logistics network. Fortunately, technological innovations are expected to at least partially address some of these challenges. The design of new and lightweight (bio-)materials, miniaturization and de-materialization of products helps to diminish both their costs and ecological footprint. Technologies like 3D-printing and micro-machining are also a step forward towards mass-customization but in addition have a profound logistic impact, for instance in stimulating “local for local” production, thereby also reducing socalled anticipation (safety) stocks, because they allow production at the place and time needed. But also the impact of robotics will change the logistics landscape considerably, as it did already in automotive assembly lines and automatic storage and retrieval systems, assisted by digital dynamic identification systems such as RFID, and all controlled by innovative warehouse management systems. Similar developments are found at container terminal sites in both seaports and inland harbors. Without exception, such systems rely heavily on smart sensor and actuator systems, evolving towards the so-called Internet of Things (IoT). The same IoT is currently innovating both passenger and freight transport rapidly; vehicle transportation in 2050 is foreseen to be largely unmanned transportation. But technological innovation is only a part of the story; at least equally important is the development of smart business models based on joint responsibilities and fair allocation of revenues instead of on individual profit maxi-. HenkZijm, Professorof Productionand SupplyChain Management, Universityof Twente. mization. Complex modern supply chains are first and foremost characterized by the fact that many stakeholders are involved in shaping its ultimate manifestation, not only shippers and logistic service providers but also the financial sector and governmental agencies, and ultimately the customer. Such systems require adequate planning and control mechanisms, including distributed architectures, cloud computing solutions, cognitive computing and agentbased decision support systems. The recent attention for data driven models (big data analytics) marks an important further step towards full-blown automated decision architectures. Multi-stakeholder systems aiming at cooperation between essentially autonomous companies require tools that essentially draw on game-theoretical concepts. But the key idea - established in the Nash equilibrium theory that players may have to give up their individual optimal solution in order to achieve an overall stable equilibrium solution is still hard to accept in particular for private companies that were used to concentrate on their individual profits. This is perhaps the biggest hurdle to be taken to arrive at sustainable logistics; it involves not only smart business solutions but more important a change of mind. and indeed trust in the value of collaboration. A similar change of mind is requested to implement ideas of re-use of products or components, both via (electronic) second markets or directly from dismantling disposed products in closed loop supply chains, as an example of the circular economy. Also, the rising attention for sharing economy concepts (as e.g. in car sharing, cloud computing, music streaming) may have important consequences for supply chain design, planning and control in that the focus will at least partially switch from delivering products to delivering services. 3.

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