SmartLog

Smart Logistics and Freight Villages Initiative

P3 Well-connected region

3.1. Improved transport flows of people and goods

Central Baltic

01.09.2016 - 31.08.2019

€2 191 918

€1 707 377

Project Summary:

The management of manufacturing, supply chain, logistics, and transportation industries are facing a substantial change, as new technologies are constantly developed. The change will affect how logistics providers of all sizes operate. Transportation cost and delivery time are critical aspects for most manufacturers as well as using technology to make transportation more efficient to help reduce overall costs and delivery time. Hence it is crucial for transportation management services, warehouse management systems, and other aspects of logistics to take Internet of Things (IoT) systems on board.
 
The project develops and tests IoT-solution within the logistics sector and logistic companies across the two corridors; ScanMed and North Sea-Baltic. The new solution will optimise all aspects of their integrated services (transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding) by creating a blockchain ledger for sharing the cargo transport status and location information across the transport corridors and giving companies access to vast amounts of anonymized data outside an organization.

This results on decreased operational costs of the companies as well as reduced time of delivery of goods.

Lead Partner

Kouvola Innovation

Country: FI

www.kinno.fi

Partner budget: 1.213.333 EUR

Amount of ERDF funding: 910.000 EUR ERDF

Project Partners

Region Örebro län

Country: SE

http://www.regionorebrolan.se/

Partner budget: 344.200 EUR

Amount of ERDF funding: 258.150 EUR ERDF

Transporta un sakaru institūts

Country: LV

http://www.tsi.lv

Partner budget: 34.500 EUR

Amount of ERDF funding: 29.325 EUR ERDF

Valgamaa Arenguagentuur

Country: EE

http://www.arenguagentuur.ee/

Partner budget: 122.300 EUR

Amount of ERDF funding: 103.955 EUR ERDF

Sensei OÜ

Country: EE

www.sensei.ee

Partner budget: 201.700 EUR

Amount of ERDF funding: 171.445 EUR ERDF

Logistika õppetool, Mehaanika ja tööstustehnika instituut, Tallinna Tehnikaülikool

Country: EE

http://www.ttu.ee/ehitusteaduskond/logistikainstituut-2/

Partner budget: 275.885 EUR

Amount of ERDF funding: 234.502 EUR ERDF

Expected results

The expected travel time improvement is shown and the calculation method demonstrated in a separate document "SmartLog calculation of result". Due to a very limited space in the eMS, it is submitted separately.
In summary:
The travel time improvement is achieved by exerting influence on certain critical points along the multi- and intermodal corridor transport chain, characterised by:
A. The number of different unique operators handling the cargo along the corridor.
B. The number of modality changes along the corridor chain
C. The number of available terminals and freight villages along the corridor transport chain.
In the special case of train transportation, the benefits of all of the above characteristics are multiplied, as the main bottlenecks in cargo train traffic are formed around the timetables of the passenger trains and their priority status over cargo traffic. By adding blockchain-induced efficiency factors into route and timetable planning, the travel time reduction will be significant.
Taking the above characteristics and applying them to real world data – however incompletely available at this time – shows that in case of route between the Örebro county (Hallsberg) (SWE) and Verona county (IT):
A. The number of different unique operators (approximate): 6. Percentual effect per operator 1%
B. The number of modality changes: 2. Percentual effect per change 1% (intermodal)
C. The number of available terminals and freight villages: 10. Percentual effect per site 3%
Cumulative accrued overhead time would therefore come to 28,5 hours of the total transit time of 75 hours, giving us 38% of travel time spent not in motion.
With blockchain sharing method: Cumulative accrued overhead time would therefore come to 14,25 hours of the total transit time of 75 hours, giving us 19% of travel time spent not in motion. The actual total transit time in motion is therefore estimated to increase by 14,25 hours on this particular corridor example case.