Air Cargo in the Physical Internet

(1)

Air Cargo in the Physical Internet

Steps towards PI implementation in the air cargo industry

Author:

Martina Brysch

Supervisor:

Dr. N.B. Szirbik

Co-Supervisor:

Dr. ir. S. Fazi

A thesis submitted for the degree of

(2)

Acknowledgements

I would like to thank my supervisor, Dr. Nick B. Szirbik, for his guidance and support during this project.

I would also like to thank the experts who were involved in workshops and interviews for this research project. With a special mention to Dr. Philipp Billion. Without their participation and input, the design analysis and validation could not have been success-fully conducted.

A very special gratitude goes to my colleagues from Lufthansa Technik Budapest. With a special acknowledgement to my former team leader Karoly Ohly and the CEO deputy Sandor Szomora. Their great assistance made the interviews with Hungarian aviation experts possible.

(3)

Abstract

(4)

List of Figures

2.1 PI-elements; based on (Montreuil et al., 2010) . . . 5

2.2 PI-handling container prototypes (Landsch¨utzer et al., 2015) . . . 7

2.3 Aircraft’s main deck and latches (Lufthansa Cargo) . . . 9

2.4 Aircraft containers (Nordisk) . . . 9

2.5 Aircraft pallets (Lufthansa Cargo) . . . 9

3.1 Research Design Circle; based on (Von Alan et al., 2004) . . . 13

3.2 Conceptual Model of the Design . . . 14

4.1 Air Cargo Supply Chain . . . 18

4.2 Current booking process . . . 20

4.3 Current document acceptance check . . . 22

4.4 Current physical acceptance check . . . 24

4.5 Current build-up process . . . 26

4.6 Current AC loading process . . . 28

5.1 PI booking process . . . 42

5.2 PI screening process . . . 44

5.3 PI acceptance process . . . 46

5.4 Disassembly process . . . 48

5.5 Assembly process - Option A . . . 50

5.6 Assembly process - Option B . . . 52

5.7 PI aircraft loading . . . 54

List of Tables

2.1 Airline types; based on (Brandt, 2017) . . . 10

(7)

List of Abbreviations

AC Aircraft. 8

ALICE Alliance for Logistics Innovation through Collaboration in Europe. 30 AWB Air Waybill. 19

BPMN Business Process Modelling and Notation. 15

DSR Design Science Research. 12

GHA Ground Handling Agent. 27

IATA International Air Transport Association. 1 IoL Internet of Logistics. 30

IoT Internet of Things. 3

MODULUSHCA MODUlar Logistics Units in SharedCo-modAl networks. 6

NOTOC Notification to Captain. 25

PI Physical Internet. 1

PIMS Physical Internet Management System. 7

RFID Radio-frequency identification. 6

TEU Twenty-foot equivalent units. 6

ULD Unit Load Devices. 8

(8)

1 Introduction

Air cargo share is only 1% of world trade tonnage but that covers over one-third of the shipped goods value (IATA, 2018). Industry-based forecasts predict that world air cargo traffic will increase by approximately 4.2% per year in the next 20 years (Boeing, 2018). In other words, the global air freight is expected to double until 2037 (IATA, 2018). Beside that, cargo rate (reflected in supply chain costs) has fallen by 35% in the last two decades (Brandt and Nickel, 2019). To keep this trend going, airlines are forced to reduce their costs while increasing their capacity.

For a continuous growth and change of the air cargo industry, the International Air Transport Association (IATA) is constantly setting industry priorities, such as the mod-ernization of air cargo, sustainability, strengthening of partnerships, and efficient align-ment to global logistic standards. Nevertheless, weaknesses like slow adaptation of novel technologies, high complexity, lack of transparency, poor communication between stake-holders, and a lack of friction-less intermodality must be overcome at the same time (IATA, 2018).

In this context, driven by academic and industry research, a ”Global Logistics Sus-tainability Grand Challenge” with thirteen problems, whose goal is creating a sustainable supply chain ”between road, rail, water and air transportation” was introduced by Mon-treuil (2010). The Physical Internet (PI), is a new approach based on critical thinking across many fields that may create a novel solution for multiple problems in current logistics (Montreuil, 2011). The PI offers a promising future vision to replace the cur-rent logistics model by a worldwide, open logistics system based on physical, digital and operational interconnectivity (Landsch¨utzer et al., 2015).

(9)

the PI system in the air cargo industry where processes have not changed over the last 40 years (Dobos, 2018), a big step towards automation and digitization is required first. The third pillar is about openness, which is another issue for the current business models of the stakeholders in air cargo, and the fourth pillar is about the decentralization and autonomous control of container flows. Air cargo is highly centralized and proprietary. Consequently, since PI’s goal is to replace the current logistic models across all trans-portation modes, the lack of progress towards the four pillars in air freight industry should be included in the PI studies too. Therefore, the lack of literature about the possible implementation of the PI paradigm in air cargo domain is a relevant gap in research.

As a result, the purpose of this research is to answer the following research question: What are the steps towards PI implementation in the air cargo supply chain? The Design Science Research methodology is partially applied and as part of it a mul-tiple case study will be conducted to answer this research question. Based on insights from the air cargo environment and already existing knowledge the current and future PI air cargo handling process will be reverse engineered and respectively re-designed by means of the Business Process Model and Notation (BPMN) technique. Moreover, design requirements for the future PI containers will be added. The design science exercise is twofold, on one hand the research will focus on the theory extension of the PI paradigm. On the other hand, a designed hybrid PI air cargo process will be proposed to the air cargo industry.

(10)

2 Theoretical Background

This chapter will focus on a literature review of the Physical Internet and Air Cargo industry. Firstly the Physical Internet’s main purpose, its core elements and four pillars will be presented. Secondly, the air cargo industry with its Unit Load Devices, airlines types and the air cargo handling processes will be described.

The aim of this section is to provide an adequate base knowledge and a link between these two fields.

2.1 Physical Internet

The Physical Internet, a future paradigm, was introduced as a solution to the current logistics and transport problems addressed as ”Global Logistics Sustainability Grand Challenge” (Montreuil, 2011). As the name already indicates, the PI takes its idea from the Digital Internet. Thus, it is a metaphor for splitting packages into pieces that travel through various routes and transportation modes until they are matched at the final destination (Ambra et al., 2019).

The foundation of the PI is focusing on efficiency and sustainability of the economy, environment and society. Physical objects will be moved, stored, realized, supplied and used through a logistic network, based on an open, global system. Further, physical objects should be encapsulated, while operations connected by interfaces and digital pro-tocols (Montreuil et al., 2012).

The vision of the PI is based on thirteen characteristics presented by Montreuil (2011) from which four main pillars can be defined (Szirbik, 2018):

1. A global and open network will enable an open supply chain by giving everyone access to an ”Open Global Supply Web” platform. This pillar may be the greatest challenge of the PI, since collaboration, coordination, innovative business models across many private supply chains are required (Simmer et al., 2017).

(11)

allow communication, monitoring, information sharing and data collection (Kim and Tran-Dang, 2019). Due to the digitization process, innovative technologies, like smart tags will rapidly be implemented in the PI (Simmer et al., 2017). 3. Modular containers will come in various sustainable, smart and standardized

sizes to allow better and faster encapsulation and minimization of empty space (Sallez et al., 2016). Moreover, Kim (2018) proposed a system that will generate a virtual 3D layout of consolidated PI-containers.

4. Decentralization, was suggested to allow carriers optimization of their transports. Pan (2016) introduced a possible system to link the future intelligent logistic prod-ucts by a Self-organizing Logistics System (SoLS) that will work autonomously without a central control (Pan et al., 2016). However, Lafkihi (2019) showed that global efficiency and effectiveness is still higher by using a central organization (Lafkihi et al., 2019).

In conclusion, to reach the goal of implementing PI and zero emissions by 2050, innovations in technology, business and infrastructure are required (ALICE, 2018).

2.1.1 Physical Internet Elements

The main PI-elements are: π-containers, π-nodes and π-movers. The prefix ”π” is used

interchangeably with the first two letter abbreviation “PI”. Moreover, it is a symbol of the open, infinite system (Montreuil et al., 2010).

As Figure 2.1 shows, the main elements are built out of smaller components, which are interconnected. Hence, the π-containers, the “fundamental unit load” of the PI, should be transported through at least one π-node by a π-mover (Montreuil et al., 2010).

(12)

Figure 2.1: PI-elements; based on (Montreuil et al., 2010) 2.1.2 PI-Containers

Presently, mainly two types of loading devices are used. First, handling containers, like cartons, cases, boxes, pallets. Second, transportation containers as shipping containers, truck wagons and truck trailers. While the first type is used to cover products and handle them into a unit, the second carries the units and protects them from their environment. Handling containers come in different types and sizes, while transportation containers are globally standardized (Landsch¨utzer et al., 2015).

Container’s main functions are protection, containment, communication, ergonomics and marketing. However, the market for intelligent and active containers has already doubled between 2011 and 2021. Therefore, current smart packages are additionally equipped in nano-processors, indicators and active packing materials (Fuertes et al., 2016).

Since the first PI publication, many researchers have focused on the PI-containers. These come with functional specifications, like (Montreuil, 2011):

(13)

4. Easy to handle, store, transport, seal, clench, interlock, load, unload, construct, panel, assemble and disassemble;

5. “Smart”; 6. Sustainable;

7. Equipped in tags and sensors;

8. Minimize packaging materials requirements;

9. ”Poses conditioning capabilities (e.g., temperature)”; 10. Secured.

Sallez (2016) listed three different types of modular PI-containers, namely the handling-(H-), transport- (T-) and packing (P-) containers. These containers should ensure two features, as encapsulation and consolidation to provide easier handling and transport, respectively.

Furthermore, the intelligence of the PI-containers plays a crucial role. By applying IoT, radio-frequency identification (RFID) and wireless sensor networks (WSNs), PI con-tainers become smart objects, being able to identify its state, report it, send updates, store and maintain data by using its own memory. Therefore, the PI-containers will be a combination of digital and physical packages flowing through the Digital and Physical Internet (Kim and Tran-Dang, 2018).

Based on the physical and informational requirements presented by Montreuil and in-sights from companies, MODULUSHCA (MODUlar Logistics Units in Shared Co-modAl networks), a major European Project, designed the first handling PI-container prototypes (Fig.2.2) for fast-moving consumer goods (Landsch¨utzer et al., 2014).

(14)

Figure 2.2: PI-handling container prototypes (Landsch¨utzer et al., 2015)

2.1.3 PI-Movers an PI-Nodes

To transport, handle, lift and manipulate PI-containers, PI-movers are required. These are grouped into π-vehicles, π-carriers, π-conveyors and π-handlers. Thereby, π-containers, which are transported by a π-vehicle, are handled and loaded by other types of π-movers, such as: π-robots, π-drones, π-forklifts or π-conveyors (Montreuil et al., 2010)

PI-movers operate primarily in PI-nodes, like cross-docking warehouses, hubs or bridges. There, sorting, storing, monitoring, labeling, assembling and disassembling actions are performed (Montreuil et al., 2010).

Moreover, Ballot (2012) worked on a PI-hub design, that enables sustainable and efficient transfers of PI-containers (Ballot et al., 2012). However, the presented design did not include air cargo hubs.

2.1.4 Physical Internet Management Systems

To enable a connection of the heterogeneous devices and physical goods with the internet, a Physical Internet Management Systems (PIMS) is required. The intelligent PI elements mentioned in the subsections above will communicate and stock information through this system and allow real-time decision making (Kim and Tran-Dang, 2019).

(15)

2.2 Air Cargo

Air freight has faced many challenges in the last 20 years and may face even more in the future. High utilization of aircrafts (AC) became the main goal, since the cargo rate has fallen by 35 percent in the last two decades (Brandt and Nickel, 2019). Moreover, industry-based forecasts predict that the world air cargo traffic will double in the next 20 years (Boeing, 2018; IATA, 2018). Therefore, airlines are forced to reduce their costs by finding quick and cheap solutions to increase their capacity and stay in business.

Although air transport is fast and safe, it is often ten to fifty times more expensive than surface transport. Due to that fact, goods transported by air, often fall into one of the following categories (Brandt and Nickel, 2019):

• Critical parts or living animals, which must be transported quick and safely • Unstable goods, which require special treatment (cooling) and environment, such

as fresh food, flowers, pharmaceuticals

• Goods of high value, where safety plays a crucial role, like electronics, banknotes, art

• Dangerous goods, for example batteries, chemicals, radioactive material, which must be handled properly

Since most of the goods transported by air are special goods, their packing is often out of ordinary.

2.2.1 Aircraft pallets and containers

(16)

Global standardized ULD exist in different sizes and shapes. They are designed to fit into a fuselage, where they are locked into a special position by latches attached to the floor (Fig.2.3) (Brandt and Nickel, 2019).

Figure 2.3: Aircraft’s main deck and latches (Lufthansa Cargo)

AC containers are either loaded on the circular shaped upper deck or on the trapezoid shaped lower deck. They are used especially for smaller shipments, mails, valuable items or passengers luggage (Brandt and Nickel, 2019). Thus, several types are available on the market (Fig.2.4).

Figure 2.4: Aircraft containers (Nordisk)

(17)

2.2.2 Airline types

According to Brandt (2017), airlines have five different business models, which are pre-sented in the table below.

Airline type Example AC type Cargo type Network Passenger airline Ryanair passenger none open Integrated carrier UPS, DHL cargo small, express closed Combination carriers Lufthansa passenger, cargo all open Cargo-only carriers ABC cargo all open Charter carriers Antonov cargo large open

Table 2.1: Airline types; based on (Brandt, 2017)

Passenger airlines may sell remaining cargo capacity in their lower decks. However it is not a common approach, especially for low cost carriers, since it can expand their turn-around time and decrease their flexibility. Consequently, the PI has no future in their business model.

An integrator is a combination of an airline and forwarder, who operates trucks, ACs and transition points in a closed network. Thus, the implementation of an open PI network is not possible either.

Although all three remaining airline types transport cargo in an open network, charter carriers will most probably not implement standardized PI-containers, due to their large emergency shipments.

It is interesting to observe that only combination carriers and cargo-only carriers meet all PI specifications.

2.2.3 Air cargo supply chain (Over)booking process

(18)

Security checks

Based on the air cargo security ICAO regulatory framework, outgoing cargo must be scanned and pass security controls. While passengers and their luggage are checked just before departure, air cargo may be checked at known shippers or regulated agents outside the airport (World Customs Organization (WCO), 2016).

Outbound handling process

Air cargo handling activities can be either performed by airlines themselves or outsourced to special cargo handling companies, which focus on the air- and land-side; and the physical and document handling (Drljaˇca, 2017).

The handling process at a warehouse starts with receiving items and ULD. Received items are either directly consolidated to an ULD or temporarily stored. Instead received ULD are transported directly to an ULD store, where earlier consolidated ULD are also placed. These ULD are further loaded on an AC (Drljaˇca, 2017).

Next to the flow of goods, the information flow takes place. The supply chain is complemented by various regulations, rules, procedures and especially paper-based doc-uments, such as: Packing Lists, Certificates of Origin, Dangerous Good Declaration, Air Waybill, Air Cargo Flight Manifest, Air Cargo Security Declaration, Customs Releases etc. These documents are sent across all parties either in paper or electronic form (World Customs Organization (WCO), 2016).

(19)

3 Methodology

The following chapter will present the main- and sub-research questions of this thesis. Further, the chosen methodology, namely the Design Science Research (DSR) will be explained. With that the design-focused analysis, the design and validation parts will be summarized.

3.1 Research Question

The literature review in Chapter 2 clearly showed that although the future PI paradigm focuses on an innovative logistics model implementation, the air cargo industry has not been included in the research yet. Therefore, this paper aims to attempt a first connection of the air cargo industry with the PI.

Consequently, the the main research question arises:

What are the steps towards PI implementation in the air cargo supply chain?

The following sub-questions will split the main research question in several sub-topics:

1. What air cargo processes are already automated, digitized and/or autonomous? 2. What PI-functionalities can be found in the current air cargo industry?

(20)

3.2 Design Science Research

The Design Science Research methodology is applied, since the PI artifact is an answer to the business needs and problems across all transportation modes (Von Alan et al., 2004). Hevner (2007) posits that three DSR Circles (Fig.3.1): Relevance Cycle, Rigor Circle, Design Circle must be identified and presented in a design research project (Hevner, 2007). The first circle focuses on finding problems and opportunities across businesses, people and technologies. The second focuses on already existing knowledge, like theories, methods or models. These two circles are further applied in the design circle, which mainly aims to improve, develop and evaluate the environment and existing knowledge (Von Alan et al., 2004).

Figure 3.1: Research Design Circle; based on (Von Alan et al., 2004)

(21)

Figure 3.2: Conceptual Model of the Design

3.2.1 Design-focused analysis

The analysis section will be built on findings and results from a multiple case study. This additional research method is used to collect first-hand data and facilitate answering the ”what” research questions (Karlsson, 2016).

(22)

The table below presents the participants of the multiple case study: Company Experts role

Lufthansa Cargo (LHC) Head of Automation and Digitization Lufthansa Cargo ULD Expert

Lufthansa Cargo ULD Expert

Lufthansa Cargo Digitization Expert and IATA Representative Air Cargo City Budapest Head of Cargo

Celebi Ground Handling Cargo Expert

Table 3.1: Case study participants

On the one hand, the current air cargo handling process will be reverse engineered. On the other hand, results of the findings will be presented to answer the research sub-questions. Additionally, the theory summarized in section 2 will be extended, since none of the currently available research papers has depicted detailed air cargo handling processes of combination carriers. For that, an operational concept of the current air cargo process will be re-designed by means of the Business Process Modelling and Notation (BPMN) technique.

Finally, by connecting theoretical knowledge with the design-focused analysis, critical aspects and requirements for the future PI air cargo supply chain can be listed.

3.2.2 Solution Design

The solution design is the answer to the presented problem, which has not found its place in the existing literature yet.

(23)

3.2.3 Solution Validation

(24)

4 Analysis

Firstly, in this section, the current air cargo process based on three case studies will be presented. Secondly, findings of the three PI-pillars in the current environment can be found. Moreover, answers to the research sub-questions are provided with two PI-container implementation options. Lastly, stakeholders of the current and future PI air cargo process are listed. The goal of this section is to provide needed functionalities and requirements for the design solution.

4.1 Case Studies

4.1.1 Case Study I - Air Cargo City Budapest

Due to the fact that the cargo volume at the Budapest Airport increased by 60 percent between 2015-2018, a new Cargo City was built. From the beginning of 2020 the new hub will fully operate and support the fast growing e-commerce market.

The main airlines carrying cargo to and from the Budapest airport are passenger airlines such as Emirates, Air China, American Airlines, Qatar Airways, integrators such as DHL Express, UPS, Fedex and freighters such as Cargolux and Air Bridge Cargo.

An interview with the Head of Cargo was conducted to discuss the current and future air cargo processes and the possibility of PI implementation.

Air cargo supply chain

An air cargo city is as cargo hub a part of a supply chain that starts with a single person or company looking for the best option to send goods. The shipper can either directly contact sea, road, railway or air transport providers or contracted transport partners. Nevertheless, either the shipper or the partner decides which transportation mode should be chosen to ensure a timely delivery of the goods. Depending on the importance, the shipments are delivered either by sea in approximately 30 days, by train between 18 to 25 days or by air between 3 and 5 days.

(25)

loading the goods into the right aircraft, the airline delivers the freight to the airport of destination where the same process takes place in reverse.

Additionally, authorities are involved in all processes of the supply chain by applying rules and laws for security and safety purposes.

Figure 4.1: Air Cargo Supply Chain

4.1.2 Case study II - Lufthansa Cargo

Lufthansa Cargo (LHC) is a subsidiary of Deutsche Lufthansa AG with a turnover of 2.7 billion Euros and 8.9 billion tonne-kilometres in 2018. With that it is one of the most important air freight companies in the world. Lufthansa Cargo offers air transport to 86 percent of the German pharmaceutical manufacturers by transporting 100.000 Tons of cargo yearly. Furthermore, it transported 2.000 horses, 10 Million roses for Valentines day and 55 Million Poinsettias for the Advent time in 2018. The most frequently transported goods are electronic devices (32%), optical devices (12-28%), machines (19-27%), phar-maceutical and chemical (23%), jewellery and gems (3-5%) and vehicles (2-7%). These products are transported on one of the 30 different ULD types, either in one of the Lufthansa Group’s 29 cargo aircraft or 480 passenger aircraft bellies. Additionally, 66% of the customers order standard shipments, while 24% order special and 18% express shipments.

(26)

cargo process is described below and designed by means of BPMN.

Outbound air cargo process of combination carriers

1. Booking process

(27)

(28)

2. Document acceptance check

(29)

(30)

3. Physical acceptance check

As in the document acceptance process, shipper-build ULD require a separate phys-ical acceptance check too. ”Ready for Carriage” ULD assigned to a ramp can be open only by warehouse personnel, since locks and seals must be checked and re-moved. While shipments on standard pallets do not require this additional safety check.

(31)

(32)

4. Build-up process

With the shipment acceptance the relevant outbound process in the warehouse starts. Sales and planning departments check the available aircraft type and plan a multi segment flight, if possible. Firstly, pre-built ULD are assigned to an aircraft. Secondly, remaining available loading positions are planned for local build-up ULD. Further, the created load information and build-up list is released to sorters in the warehouse.

(33)

(34)

The AC loading process is often outsourced to third parties, like GHA or airport opera-tors. Therefore, more detailed information to the last step can be found in the findings of the Celebi case study below.

4.1.3 Case Study III - Celebi Ground Handling Hungary

Celebi Aviation Holding is a Turkish ground handling company, that provides general aviation services such as cargo, mail, warehouse, bridge operation and ramp services, as well as load control and transportation. Celebi’s main customers are airlines, like Lufthansa, KLM, Emirates, AriBridgeCargo, UPS, AirCanada, ChinaAirlines and Kore-anAir. With four warehouses located in Turkey, India, Hungary and Germany, there are active employers at over 40 airports worldwide. The company handles approximately 1 Million tons of freight.

An interview with a Cargo Expert based in Celebi Budapest was conducted to explore the current ground handling activities, possible future changes and the impact of the PI integration.

Ground handling process

The ground handling process depends on many factors, like the country, size of the airport or airline type.

If an aircraft operator does not own a warehouse at the airport, ground handling agents (GHA) provide services to them. Thus, the outbound air cargo process of combined carriers described earlier is taken over by GHA.

Evenings are the peak time at the Budapest airport. Shipments for combination carriers are received, screened, sorted, consolidated and loaded on narrow-body passenger aircrafts within the same evening. Cargo-only aircrafts are often loaded with ULD, which were consolidated a day earlier. However, none of the received shipments stay at the airport longer than 24 hours.

(35)

received freight is screened and secured on ULD. Consequently, in some countries the screening and consolidation process is more complex than in others.

Furthermore, GHA may provide the (un-)loading of an aircraft. However, mostly airport operators are responsible for these tasks. The loading process starts with picking up ULD containers and pallets with documents from the warehouse. The ULD are loaded by forklifts on dollies and transported to the apron, where aircrafts are prepared for the next flights. Depending on the AC type, the loading is performed either manually or automatically.

(36)

4.2 Findings of the case studies

The findings of the case studies and answers to the sub-questions will be categorized based on three PI-pillars:

• global and open networks, • autonomous processes, • modular containers

Due to the complexity of the decentralization PI-pillar, it will not closely be investigated in this thesis. The fourth pillar will be the last step of the PI implementation in the air cargo industry and should be presented separately after the first steps towards the three PI-pillar implementation can be found.

4.2.1 Global open networks

At least one goal of the PI was found in the air cargo industry milestones, namely the implementation of an open global network across all stakeholders.

The information flow in the current air cargo supply chain mentioned by all experts should be adjusted to digital, global and open networks.

Although the usage of an open network in the air logistics seemed to be impossible, due to many safety regulations, it might even be pioneered across all transportation modes.

1. ONE Record Project

In an air cargo supply chain, 34 data items are sent 70 times between 12 stakehold-ers. A common platform for all stakeholders of the supply chain would simplify and speed up the flow of data items. For that reason, IATA in cooperation with airlines, forwarders and shippers work on the ONE Record Project.

(37)

The connected digital cargo will start with the implementation of ONE Record in 2020. Based on that a transparent and openly accessible supply and transport chain can be created. Next, a virtual integration of supply chain partners with new processes and business models will be visible. This will further enable the usage of big data and artificial intelligence in supply chains. Finally, all steps taken together will create autonomous and self organizing transport systems.

Although, the PI idea is not known by air cargo experts and the ONE Record project is not part of the Alliance for Logistics Innovation through Collaboration in Europe (ALICE) projects, both present the same steps and goals toward au-tonomous supply chain processes.

IATA focuses on the generation of a free and open Internet of Logistics (IoL) Plat-form across all supply chain partners, which is the first step of reaching autonomous transport systems. Whereas, the PI is a system that requires an open platform and autonomous processes to be fully implemented by 2050. In other words, ONE Record can be seen as a first step of the Physical Internet integration in air cargo. Just like in the Physical Internet pilots, important global companies like DB Schenker, Air Bridge Cargo, Lufthansa Cargo, Air Canada Cargo are participating in ONE Record pilots. ONE Record trials focus on the development of security specifica-tions, operational processes and development of an IoL. Additionally, a data catalog with communication methods is generated. Since more data will be available and stored, predictive methodologies for algorithms and Application programming in-terfaces (API) will be used. These data models will be transferred on the physical goods, which is basis for the PI integration.

(38)

The benefits of the ONE Record implementation are more efficient structures for a better use of industry resources, especially data. Furthermore, the project ”ensures perception as digital driver of the industry”.

To conclude, the sub-question:

”What PI-functionalities can be found in the current air cargo process?” can be answered.

Even though the ONE Record platform will be fully implemented in 2020, it can already be seen as a PI-functionality across air cargo stakeholders.

With ONE Record’s information flow through an open and global platform, the business models will change. Thus, an integrated supply chain will bring the PI implementation closer to the air cargo industry. In addition, ONE Record has a great potential to be included as a logistics innovation to ALICE. Thereby, the air cargo industry could lead the information flow of the PI by using an IoL across all participants.

4.2.2 Autonomous processes

The second pillar of the PI stands for autonomous processes across the supply chain. These cannot be found in the current air cargo industry, since most of the processes have not changed in the last 50 years.

However, unlike the PI, the ONE Record Platform, mentioned in the first category, does not require already existing automated processes but builds a foundation of the automation in the air cargo supply chain. Thus, reaching autonomous processes are set as goals and not requirements for the PI implementation in the air cargo industry.

1. Freight receiving

(39)

process. Drivers must still complete the check-in process and wait for a ramp allocation for drop-off.

2. Build-up / consolidation process

The build-up process, especially for combination carriers, is one of the most com-plicated processes in a warehouse. Most of the shipments arrive in cave boxes, they must be sorted and loaded on an aircraft pallet or into a container. Almost 90 percent of the goods are loaded on pallets. Only 10 percent of the shipments, like small packages or special goods are loaded into ULD containers.

The consolidation process is performed manually by trained warehouse employees, who are responsible for maximizing the capacity of ULD. Lufthansa Cargo ULD ex-perts asserted that ”human intelligence is necessary to play Tetris” with the freight. Thus, automation is not possible in the current build-up process, mainly due to the nature of the shipments.

To atomize the build-up process at first 3D goods scanners are required. Next, a consolidation software, which processes the scanned data, is required. Moreover, to atomize or robotize the build-up process, the nature of packages must change, since currently only fork-lifts can manage the variety of freight.

Additionally, the Celebis expert claims that an automated consolidation process ”is good for shippers, but not for airports”, due to their high variety of goods. Be-sides, ”setting-up robots for shippers special goods are too expensive”. In this way ”forwarders, in the current set-up with 1 or 2 year contracts with shippers will not automate their consolidation processes” either.

All experts agreed that integrators might be able to use an automated consolidation process considering their standardized shipments. Nowadays, their warehouses are more automated than ground handling agents or airline warehouses. However, this is the result of a closed network between shippers, forwarders and airlines.

3. Aircraft loading process

(40)

In conclusion, one of the sub-questions:

”What air cargo processes are already automated, digitized and/or autonomous?” can be answered.

All experts agreed that ”the current handling process is mechanized but not automated”. The Celebis expert does not see a chance for a fully robotized and automated handling process at the airport. Lufthansa Cargo experts agree that only a part of the handling process can be automated but the automation will never reach 100%. At least 5% of the shipments will be of extraordinary shapes and will be handled manually.

Nonetheless, to reach automated processes in air logistics standardized packages must be introduced. In consequence, simultaneously the third PI-pillar must find its place in the air cargo industry.

4.2.3 Modular containers

The modular, smart PI-containers were one of the main focus during the interviews, since they would not only change the air cargo industry processes but also require adjustments based on this industry.

The usage of smart and modular containers seems to simplify the processes and eliminate the unsustainable usage of security materials. However, most of the experts see more obstacles than benefits by using the PI-containers.

1. Physical and operational constraints of the PI-containers

(41)

According to LHC ULD expert, Fraport and Jettainer worked on the idea to build ULD that can be opened and loaded from the top and not from the front anymore. Technically, it is possible to include a mechanism that opens the containers’ roof. However, this additional equipment generates more weight. Since one major focus of the airline industry is concerned with decreasing weight, this mechanism would never find its place in the industry. Moreover, as long as fork lifts are in use, ULD should not change.

2. Air cargo requirements

During the interviews functional specifications of PI-containers, listed in the sec-ond chapter of the thesis, were presented to the experts. Moreover, two options of the PI-containers implementation were suggested. Firstly, the implementation of PI handling containers in the current air cargo handling process. Secondly, the replacement of existing ULD with PI handling containers. As a result requirements from the air cargo side were indicated.

Option A:

By implementing PI-handling containers, which will still be loaded on ULD, the following requirements must be met:

(a) PI-containers made from light material

By changing current handling containers into modular PI-containers, their tare weight is important especially for the air cargo industry, because each ULD type holds a different maximum gross weight. For example, AKE lightweight LD3 container, that can be loaded on narrow- and wide-body airplanes, maxi-mum gross weight is 1588kg. While a PKC pallet, loaded only on narrow-body AC, holds 1134kg. Therefore, the heavier the PI-containers, the less goods can be loaded on one ULD.

(b) They must be made from material that can be scanned

(42)

(c) Smart devices must switch off during flight

Presently, according to LHC ULD expert ”an ULD is fundamentally dumb”. In the last years some companies started to work on Bluetooth tracking chips. However, any electronic device placed on board must be certified regarding the ability to switch off during flights. Since these smart chips and certificates are too expensive, airlines are not interested in the use of tracking devices. The probability that an ULD will be diverted by another airline is too low to equip ULD in smart devices.

Accordingly, PI-containers placed on an AC cannot send signals and should switch off automatically on board mainly to avoid dangerous interfacing with electronic systems of the AC.

Option B:

If PI-handling containers replace the current ULD and become PI transport con-tainers, additional requirements must be met:

(a) They must withstand the main forces affecting an airplane

An ULD is regulated as AC asset only because it must withstand and lead forces from its base plate to the AC structure. Thus, if PI-containers will replace ULD, they must withstand these forces too.

(b) Certifications are required

Then, because ULD are AC assets, they possess relevant certifications, which must be taken over by the PI-containers.

(c) They must only be produced and repaired by certified parties Aircraft parts and ULD can only be produced and repaired by certified parties. (d) PI-container latches must match the AC latches

(43)

Consequently, the sub-question:

”What role will the PI-containers and current ULD play in an automated PI air cargo process?”

can be answered.

Based on the interviews, the PI handling containers would not simplify or shorten the current air cargo processes. Primarily, the processes should be automated to implement smart containers. Handling robot arms, autonomous vehicles, conveyors, 3D scanners, a consolidation software and robots would allow the PI containers suitability. Then the containers could simplify the handling process and allow a faster ULD loading.

Nevertheless, a fully automated air cargo handling process will not be possible, since at least 5% of the cargo will have extraordinary characteristics. As the LHC expert said: ”We sent too strange goods around the world”. For that reason, in the air cargo industry a hybrid, hence the combination of PI with the current air cargo, process has a great future. By consolidating PI handling containers with extraordinary handling containers only the handling process would change. The aircraft loading process and final ULD containers and pallets would not change.

(44)

4.3 Stakeholders analysis of the current and future PI air cargo

process

As the case studies showed, the current air cargo outbound process involves many stake-holders who act in a complicated environment. To simplify the processes this paper will only focus on the main participants.

Additionally, based on the PI-elements, stakeholders of the future PI-system will be added and further presented in the design section.

1. Consignor

Only in 20% of the cases the shippers are final customers of combination carriers who provide their shipments directly to the aircraft operator as ”known consignors”. It is important to meet security requirements and standards that allow to act as a known consignor and deliver packages on certified ULD pallets. The goal is to reduce handling times at the airport by consolidating the shipments in house and sending them secured to the airport.

2. Haulers / PI-carrier I

In 80% of the cases forwarders are customers of combination carriers who deliver shipments by truck or train (autonomous PI-movers).

On the one hand, a forwarder may be part of the secured supply chain and deliver ”Ready for Carriage” ULD. On the other hand, haulers who deliver goods from unknown consignors on standard or cave pallets require an additional security check. The aim of haulers is to reduce the security checks and waiting times at air cargo hubs to a minimum.

3. Air cargo hub operator and GHA / PI-node

(45)

load and unload aircrafts. Thus, airport operators who are partly state-controlled may act monopolize at an airport. Their goal is to load aircraft in a standardized and efficient manner due to short turn-around-times.

5. Airline / PI-carrier II

Combination carriers (PI-carriers) provide air transport by offering cargo space on AC (PI-planes). Moreover, they perform handling and consolidation tasks in their own air cargo hubs or outsource them to third parties like GHA. One of their goals is to shorten and reduce ground handling processes to provide quick transport to their customers. Additionally, airlines aim to fill their available cargo load factor and deliver goods to the airport of destination in the best quality.

6. Customs

Customs check and control the flow of goods at airports. Their main goal is to ensure safety, local and international regulated exports and/or imports.

7. Authorities

Documentation, certificates and licenses are a main part of air cargo. Each par-ticipant of the air cargo supply chain must respect multiple regulations, laws and standards issued by the countries, integrated and implemented by IATA.

8. PI-containers

(46)

5 Design and guideline

5.1 Implementation guideline and design assumptions

Based on the analysis a PI implementation guideline for combination carriers and as-sumptions for the design are listed below.

1. E-commerce goods as first step towards PI air cargo shipments

At present, small e-commerce goods are transported especially by integrators like UPS or FedEx. By 2021 even Amazon will plan and send its own air shipments from the Amazon Cincinnati air cargo hub (Dans, 2019). However, since these supply chains are closed networks, it will be almost impossible to implement the open PI system in their current business models. Thus, combination carriers could use the PI system to their account and transport e-commerce goods via PI networks. More-over, as e-commerce shipments are not included in their core business structure, the slow implementation of the PI will prepare the airlines to a fully PI adaptation. 2. Physical Internet Management System in the Internet of Logistics

By merging PIMS with IATAs ONE Record, a common supply chain platform for the data item flow and storage can be generated.

3. Overbooking models replaced by PI system

Nowadays, airlines use overbooking models to fulfil their capacity. This model could be simply replaced by the PI integration. Since PI shipments will be planned based on real time cargo space availability and not several months ahead airlines could offer their remaining capacity via PI platforms.

4. All PI air cargo stakeholders are approved regulated agents

(47)

containers should be screened before entering the PI network. PI-containers will not be opened during the whole transport, thus by screening them once at the beginning of the process and handling them through a secured PI supply chain, multiple security checks can be eliminated. Furthermore, the PI-containers tracking, sense and communication functions will assure safe conditions of the shipments.

5.2 Hybrid PI air cargo process design

The design presents a hybrid process of the PI in air cargo, which is based on the analysis section and guideline subsection.

This section is divided in seven subsection to present and describe main air cargo processes in separated BPMN designs. Moreover to give a clear understanding to the reader a design legend is added below.

• White lines represent the current air cargo stakeholders • Blue lines represent the future PI air cargo stakeholders

• Green lines represent a PIMS cloud that acts as future digital stakeholder • Blue tasks represent hybrid PI actions

(48)

5.2.1 PI booking process

As mentioned in guidelines, one of the assumptions is the replacement of the overbooking model with the PI.

An airline, which is also a PI-carrier will first offer its cargo space on booking platforms without overbooking an AC. As it is now, a hauler will book the cargo space several weeks or months in advance and confirm or cancel the booking only several days or hours before departure. Without using the overbooking method, the possibility that an AC will not be fully booked is higher.

As a consequence, figure 5.1 shows that the PI process will start with the standard cargo space cancellation received by haulers.

The PI-carrier will offer its remaining cargo space on the open PIMS cloud. Thus, PI containers, which will be located in PI-hubs or already on PI-movers may book the offered PI cargo space on a PI-plane. PI containers digital agents will share the transportation request and 3D measurments with the PI-carrier, who may confirm the booking. The confirmation will be shared by means of the PIMS. Next, the PI-containers digital agents will be able to generate a eAWB which will be shared with the PI-airline.

(49)

(50)

5.2.2 Screening process

The PI system is assumed to be a secured supply chain where each PI stakeholder is seen as regulated agent. Moreover, the PI-shipments are screened and checked before putting them into the PI network.

(51)

(52)

5.2.3 Shipment acceptance process

To ensure a safe transport, PI-movers will be locked by locks, padlocks, seals or sealing and equipped in sensors. In cases of damage or break ins, sensors will send alerts to the PI-movers digital agent placed in PIMS. Today, changes must be made manually, however the PI-elements will react and act automatically.

Figure 5.3 presents the shipment acceptance process at a PI-node / PI-air cargo hub. As described in section 2.1.2, smart PI-containers loaded on PI-mover will be active participants of the process. They will observe their conditions, send transport information with GPS coordinates and communicate with other PI-elements. Their updates and alerts will be shared and stored by their digital agents placed in the PIMS cloud. This allows real-time tracking and control of the shipments.

To access a PI-air cargo hub, the PI-mover will be sent to a self-service gate, where the accuracy of sensors and RFID data will be checked and compared with the PIMS and AWB data. Only shipments which are registered, expected and have not sent any alerts during their journey will be accepted at the PI-node gate.

Moreover, the physical check will be reduced to an automatic weight check at the gate and scan of the trailer to confirm correctness of the physical loading with the AWB data.

(53)

(54)

5.2.4 Disassembly process

After the shipment is accepted at the gate, it is sent to its assigned loading area. The PI-mover/PI-truck may be unloaded by autonomous robots, like Kiva or autonomous forklifts, which will handle the PI-containers to the dismantling area. However, au-tonomous PI-container may be able to unload themselves too. Next, at the disassembly area robot arms will take apart the latched PI-handling containers.

(55)

(56)

5.2.5 Assembly process - Option A

In the analysis section two consolidation options were proposed. By implementing option A, the AC containers and pallets will be used just as in the current air cargo process.

PI-containers conveyed to the assembly area are received and necessary ULD are retrieved from the storage location. The extensive variety of ULD containers, which will not be opened from the top, will not allow the use of robots in the consolidation process. Therefore, clustered PI containers will be loaded manually into ULD containers, while pallets will be loaded by handling robot arms. Since currently 90 percent of the shipments are placed on pallets, the probability that future standardized PI containers will be loaded on pallets is even higher.

Consolidated ULD will be weighed and generated documents, such as an electronic manifest will be shared with the PI-carrier via PIMS. Thus, ULD will be released to the PI-plane without any additional documents and a paper-free handling process can be put in place.

(57)

(58)

5.2.6 Assembly process - Option B

By implementing option A, a subsequent step can be included, namely option B proposed in section 4.2.1.

The main difference between these two options is the inclusion of PI transport containers into the consolidation process. By withdrawing the AC ULD and latching the PI han-dling containers to PI transport containers, a fully automated consolidation process can be introduced.

(59)

(60)

5.2.7 Aircraft loading process

The last process presents a hybrid AC loading system. As the current loading process (white lines) shows, airport operators pick up ULD and documents from the air cargo hub operator.

The process starts with loading ULD on dollies by forklifts or hand. Next, the dolly driver transports the shipments to the assigned AC that is prepared for the next flight. Depending on the AC type, the delivered shipments are loaded on the AC manually or automatically. Lastly, the flight-bag must be handed over to the AC crew, which will manage the shipments according to NOTOC during the flight.

Simultaneously, the PI AC loading process may be performed. In contrast to the current process, ULD or PI transport container will be loaded by π-robots on autonomous dollies / vehicles. These will transport them to the apron, where other π-robots will load the ULD automatically on the PI-plane.

Several options for the future PI-loading are possible. For example, either dollies load the ULD directly on the plane or loading π-robots will perform this task. Moreover, future PI-plane may even be equipped in loading equipment. Thus, a pull action instead of a push action may be performed.

(61)

(62)

6 Validation

This section describes outcomes of the PI implementation guideline and design validation workshops, conducted with experts presented in the methodology section. Due to the fact that the experts were globally distributed, workshops via Skype were organized. Additionally, the analysis and design sections with several open questions (see Appendix B) were provided to the experts one week before the scheduled workshop. On this basis, the participants obtained an extensive knowledge foundation for the validation.

6.1 Guideline validation

Firstly, the PI implementation guideline for combination carriers was discussed. Lufthansa cargo’s expert mentioned that small e-commerce shipments become a trend in air cargo. Therefore, implementing PI for e-commerce shipments is a great approach. However, first PIMS or ONE Record should be implemented to enable a digitized information flow before an autonomous physical goods flow.

Moreover, the expert is convinced that a common supply chain platform would im-prove the flow of goods, quality and safety of the data. Thus, a cloud would enable better control of the shipments, since access to data will be higher.

Furthermore, the proposed integration of the PI by replacing the overbooking model with the PI platform would be applied by that airline.

In conclusion, Lufthansa Cargo’s expert sees the PI implementation guideline ”as added value for the companies future planning and business development”. Nevertheless, he missed a detailed timeline for these actions and information, for example about the amount of planned PI-containers in the network.

6.2 Design validation

(63)

”If big shippers, like Bosch, start to use PI-containers, a hub will have to adjust its handling processes to these containers too”.

The Celebi cargo expert agrees, that since the handling processes have not changed over the last 50 years, a slowly adaptation of autonomous processes is the ”smartest solution”. However, he assumes that the PI could be faster integrated in China, since their processes are already more automated than in Europe.

Then, the experts agreed that proposing two assembling options helps to look at the PI integration from two different angles. Lufthansa Cargo’s expert mentioned that Option A may be only a temporary solution and Option B should be seen as long term approach. He believes that both solutions can be implemented, however not at current state. Ad-ditionally, the expert missed in the analysis and design detailed information about the current states of the the PI projects. Thus the validation created open questions, like

”When will the PI-containers be entered into service? ”Have any PI-products/devices already been in the certification phase?”

Moreover, the expert would like to see a simulation of the hybrid PI system in air cargo in the near future.

Finally, Lufthansa Cargo’s expert sees an additional benefit from the PI:

”Firstly, if we pay for CO2 emissions in the future, everyone would aim to transport at full capacity. Secondly, it will be necessary to know the CO2 footprint from point A to

(64)

7 Discussion

To the knowledge of the author, this paper is the first attempt of including the air transportation mode to the PI framework. Hence, contribution to literature, practical implications with limitations and future research will be discussed below.

7.1 Contribution to literature

The main contribution to the currently available literature is the extension of the PI-container specifications. Montreuil (2011) listed ten functional specifications of PI-containers, while Landsch¨utzer (2015) modelled a PI-container prototype. This paper provided additional PI-container requirements from the air cargo industry, like the ne-cessity of certified smart devices that switch off during flights.

Furthermore, the current air cargo handling process description and design, presented in the analysis section, create a great basis for further air cargo hub integration in the PI-hub designs. These detailed information may be used for instance for the extension of the PI-hub designed by Ballot (2012).

7.2 Practical implications

Even though the proposed guidelines are yet far from implementation, this paper can be seen as a first summary of future PI opportunities and innovations in the air cargo industry.

Moreover, the hybrid PI air cargo process design at combination carriers shows that PI may be implemented next to the current processes. A transitional phase allows focusing on the core business while implementing an innovative solution for constantly growing small shipments.

(65)

automation in air cargo is reachable and should be used to enforce PI.

Finally, the findings of this thesis suggest that IATA and ALICE members should collaborate in future projects to facilitate innovation within an innovative supply chain.

7.3 Limitations and future research

This paper has several limitations, which should be evolved in future research.

First, the analysis and design are based only on handling processes from combination carriers. It would be interesting to investigate the possibility of PI implementation at cargo-only airlines and/or integrated carriers.

Second, the proposed guidelines and hybrid design are limited to standard shipment handling processes. Living animals, large shipments, dangerous goods, which are handled in separate hubs, are not included. Thus, future research about including these goods into the PI air cargo processes is necessary.

Third, the proposed merger of ONE Record and PIMS, has not been deeply inves-tigated. Therefore, future research about a PI management platform shared across all stakeholders is still required.

Lastly, the proposed hybrid design is an optimistic scenario, which presents actions from the highest level. Details about the functionalities of each stakeholder and action must be further investigated.

(66)

8 Conclusion

The purpose of this research project was to evaluate steps and a first design of the PI implementation in the air cargo industry. By using the DSR methodology not only the finding of a research gap in the current literature but also of a current problem in the environment was necessary. Thus, to gain insights and collect relevant data to the current air cargo processes, a multiple case study has been conducted.

A design-based analysis allowed to reverse engineer the current handling process from combination carriers and group findings based on three PI pillars. These findings were a basis for the proposed hybrid PI air cargo process, re-designed by means of the BPMN technique, and the PI implementation guidelines for combination carriers.

(67)

References

ALICE (2018). Information Systems for Interconnected Logistics. Research & Innovation Roadmap.

Ambra, T., Caris, A., and Macharis, C. (2019). Towards freight transport system uni-fication: reviewing and combining the advancements in the physical internet and synchromodal transport research. International Journal of Production Research, 57(6):1606–1623.

Ballot, E., Montreuil, B., and Thivierge, C. (2012). Functional design of Physical Internet facilities: a road-rail hub.

Boeing (2018). World Air Cargo forecast 2018-2037.

Brandt, F. (2017). The Air Cargo Load Planning Problem. PhD thesis, Karlsruhe Insti-tute of Technology.

Brandt, F. and Nickel, S. (2019). The air cargo load planning problem-a consolidated problem definition and literature review on related problems. European Journal of Operational Research, 275(2):399–410.

Dans, E. (2019). The Battle For The Physical Internet. Forbes.

Dobos, L. (2018). Digitalisierung: Luftfracht im Aufwind; Mehr digitalisierte und au-tomatisierte Prozesse im Bereich AirCargo. Logistik Heute.

Drljaˇca, M. (2017). Air Cargo Handling Process. In ZIRP 2017, International Confer-ence on Traffic Development, Logistics & Sustainable Transport New Solutions and Innovations in Logistics and Transportation.

Fuertes, G., Soto, I., Carrasco, R., Vargas, M., Sabattin, J., and Lagos, C. (2016). In-telligent packaging systems: sensors and nanosensors to monitor food quality and safety. Journal of Sensors, 2016.

(68)

IATA (2018). IATA Cargo Strategy. IATA (2020). Unit Load Devices (ULD).

Karlsson, C. (2016). Research methods for operations management. Routledge.

Kim, D.-S. and Tran-Dang, H. (2018). Industrial Sensors and Controls in Communication Networks: From Wired Technologies to Cloud Computing and the Internet of Things. Springer.

Kim, D.-S. and Tran-Dang, H. (2019). An Information Framework of Internet of Things Services for Physical Internet. In Industrial Sensors and Controls in Communication Networks, pages 259–281. Springer.

Lafkihi, M., Ballot, E., and Pan, S. (2019). Comparison of centralization and decentral-ization of physical internet through gamification.

Landsch¨utzer, C., Ehrentraut, F., and Jodin, D. (2015). Containers for the Physical Internet: requirements and engineering design related to FMCG logistics. Logistics Research, 8(1):8.

Landsch¨utzer, C., Jodin, D., and Ehrentraut, F. (2014). Modular Boxes for the Physical Internet–Technical Aspects. In Literature Series-Economics and Logistics, pages 191–234. BVL International.

Montreuil, B. (2011). Toward a Physical Internet: meeting the global logistics sustain-ability grand challenge. Logistics Research, 3(2-3):71–87.

Montreuil, B., Meller, R. D., and Ballot, E. (2010). Towards a Physical Internet: the impact on logistics facilities and material handling systems design and innovation. Montreuil, B., Meller, R. D., and Ballot, E. (2012). Physical internet foundations. IFAC

Proceedings Volumes, 45(6):26–30.

(69)

sys-Rowley, J. (2002). Using case studies in research. Management research news, 25(1):16– 27.

Sallez, Y., Pan, S., Montreuil, B., Berger, T., and Ballot, E. (2016). On the activeness of intelligent Physical Internet containers. Computers in Industry, 81:96–104. Simmer, L., Pfoser, S., Grabner, M., Schauer, O., and Putz, L. (2017). From

horizon-tal collaboration to the Physical Internet–a case study from Austria. International Journal of Transport Development and Integration, 1(2):129–136.

Singhaseni, C., Wu, Y., and Ojiako, U. (2013). Modeling overbookings on air cargo trans-portation. International Journal of Physical Distribution & Logistics Management, 43(8):638–656.

Szirbik, N. B. (2018). The design of a system that combines the city logistics smart rack (CLSR) concept with the Physical Internet (PI) paradigm. Unpublished document from the University of Groningen.

Von Alan, R. H., March, S. T., Park, J., and Ram, S. (2004). Design science in information systems research. MIS quarterly, 28(1):75–105.

Wieringa, R. (2009). Design science as nested problem solving. In Proceedings of the 4th international conference on design science research in information systems and technology, page 8. ACM.

(70)

A

Interview Questions - Case Study

1. What air cargo processes are already automated, digitized and/or autonomous? 2. What PI-functionalities can be found in the current air cargo?

3. Is the PI implementation necessary and possible in air cargo?

(a) As of now the air cargo industry attracts low volumes with high value – should that change?

(b) How to attract more volumes towards air cargo when PI will become available? 4. How can the PI change the air cargo business?

5. What role will the PI-containers and current ULDs play in an automated PI air cargo handling process?

6. What are the physical and operational constraints that suggest problems?

B

Interview Questions - Validation

Positive:

1. Which positive aspects does the design present? 2. Is it possible to implement the design? Why?

3. To what extend is it possible to implement the design? 4. What can you use further?

Negative:

1. Where do you see challenges in the implementation of the design in the current processes?

Air Cargo in the Physical Internet