Lean Secure and Reliable Logistic Connectivity for SMEs

Final Report Summary - LOGICON (Lean Secure and Reliable Logistic Connectivity for SMEs)

Executive Summary:
Small forwarders, carriers and other logistic SMEs are in need of affordable, reliable and trusted data-interchange solutions to take part in international trade and commerce flows. LogiCon aims at setting up, testing and facilitating the adoption of low-cost, low-barrier data connectivity solutions. The above activities will be carried out in four national living labs, each one with specific objectives, dealing with three main challenges: 1) enabling connectivity, by selecting, refining, testing and promoting state-of-the-art solutions and platforms, through involvement of a vast audience of SMEs; 2) engaging communities, either cargo communities around port and inland terminals or business networks run by large companies, to favour standards adoption and to support risk assessment and dashboards for key indicators like emissions and load factor; 3) prepare for cooperation in a global freight management ecosystem, foreseen for the future, where capacity will be optimized and flows will be synchronized among the different involved actors.
As part of the Logicon strategy, we are using a “Bazaar” approach instead of a “Cathedral” one. This means results that are very adapted to context (i.e. Living Labs) where the problems are detected, and implies results that are different from each other even when based on same principles. Obviously, different results and actors mean different approaches to the respective related business and technologies.
The problems and ambitions of then four living labs faced during the project have been:
▪ Polish living lab. Planning of hinterland rail transport from or to the port of Gdynia involves many actors and consumes a lot of time for exchange of information – phone calls, faxes and emails. This problem causes the hinterland planning of the port of Gdynia to be less efficient and less attractive for its customers. The problem addressed in Polish Living Lab includes rail transport and truck last mile transport.
▪ Dutch living lab. The Twente region has the ambition to become a logistics hotspot, strategically located between the deep-sea port of Rotterdam and the hinterland and very well served by road, rail and waterways. The Dutch LL created a light-weight, low-cost and flexible infrastructure for sharing data including dedicated apps and services. These apps and services enable e.g. lock planning supporting both barge operators and Rijkswaterstaat and an connection to existing systems where real-time information of terminal services becomes available.
▪ Spanish living lab. The Spanish Living Lab enabled small transport service providers automatic data exchange with large forwarders. LogiCon developed apps for web and smart devices for truck drivers to support service information exchange, e.g. tracking of truck departure and arrival, creating and sending of transport orders and invoices.
▪ Italian living lab. Interporto Bologna exploits the Bologna Freight village where a lot of SME companies are located (60% of the total tenants). SMEs lack an easy opportunity to engage in new business. Now, this is a time-consuming activity that is even more difficult to perform because of the small number of employees that are available with SME players.
The issue of adoption is an important one, especially as the project’s solutions are focused on SMEs and it can be difficult to reach this target group. All Living Labs have already consulted with their larger SME community in a series of stakeholder workshops. In these workshops, all Living Labs presented their drafts of their solutions to the SME community. The feedback of the community has been used as input for further solution iterative re-designs.

Project Context and Objectives:
Logistics customers love speed, predictability, security and knowing where their shipment is. That is why logistics industry is constantly looking for ways to enhance efficiency, improve service and lower costs. The big players meet the new market requirements easily whereas small ones have limited opportunities to follow these changes. The common objective of LogiCon project is to raise the position of SMEs and get them with affordable, reliable and trusted IT solutions so to enable them to take part in international trade and commerce flows. LogiCon aims at setting up, testing and facilitating the adoption of low-cost, low-barrier Data Connectivity Solutions.
The Commission is promoting intermodal transport, as environment-friendly and energy-efficient approach. The simplification of communication between different transport modes is essential in order to make intermodality more attractive. The LogiCon project is aimed at facilitating the development of efficient ICT solutions for logistics SMEs that will be capable of meeting current and future communication needs. Besides proposing a very basic ICT that can be affordable and easily adopted by SMEs, LogiCon proposes the new business models to make cooperation in co-modal supply chains commonplace in practice.
Project ambition is to develop simple and pragmatic targeted solutions for data exchange in trade and logistics that improve communication through digitisation of documents exchange. Logicon aims to enable SMEs collaboration with advanced platforms by providing them with solutions (apps, communication platforms, market places...) removing technological barriers and establishing partnerships with existing logistic platforms.
The project activities are carried out in four national living labs, each one with specific objectives, dealing with three main challenges: enabling connectivity for SMEs acting in logistics market, engaging communities, either cargo communities around port and inland terminals or business networks and preparing for cooperation in a global freight ecosystem.
The Polish Living Lab implemented an innovative communication platform for intermodal transport collaboration. It enables information sharing for the hinterland planning processes by all parties involved – Logistics Operators, Rail Carriers & Container Terminal. The functionality includes among others exchange of bookings for intermodal transport, allocation of bookings to rail wagons, exchange of loading and unloading plans and status, monitoring of execution.
The Dutch LL created a light-weight, low-cost and flexible infrastructure for sharing data including dedicated apps and services. These apps and services enable e.g. lock planning supporting both barge operators and Rijkswaterstaat and an advanced connection to existing systems where real-time information of terminal services becomes available.
The Spanish Living Lab enabled small transport service providers automatic data exchange with large forwarders. LogiCon developed apps for web and smart devices for truck drivers to support service information exchange, e.g. tracking of truck departure and arrival, creating and sending of transport orders and invoices.
The Italian Living Lab LogiCon delivered a web-based transport market place where SMEs can offer their transport services to potential customers engaging new business opportunities.

Below sections describes the problems and objectives pursued by each living lab.
1.2.1 Polish Living Lab
The problem
Main partner in the Polish LL was Baltic Container Terminal (BCT) located in the Port of Gdynia in Poland. It is a maritime terminal specialized in handling containers for different transportation modes. With a current annual handling capacity of 750.000 TEU, and a potential capacity of 1,2m TEU, BCT is the leading container terminal in Poland and one of the largest in the Baltic region. BCT offers a wide range of services: BCT is well connected with the hinterland by motorways and the national rail system, however, poorly developed rail connections and information exchange systems impede BCT to reach a high intermodal handling share.
BCT runs a number of hinterland operations including rail transport from or to the Port of Gdynia. These operations involve many actors and consume a lot of time for exchange of information – phone calls, faxes and emails. This problem causes the hinterland planning of the port of Gdynia to be less efficient and less attractive for its customers.
The problem addressed in the Polish Living Lab included rail transport and last mile transport by truck. Taking into account that 1,2m TEU were transported through the Polish ports in 2013 and 40% (upward trend) of deliveries were transferred to the hinterland locations and back by rail (ca. 20 trains daily), the problem of information exchange between all involved players (ca. 15 intermodal operators and 10 direct rail carriers) has become significant. As a result, inadequate, long-lasting handling services at terminals increasingly become a bottleneck for fluent container traffic to the hinterland and endangers keeping the rail share at 40%.
The objective
The objective of the Polish Living Lab was to implement new business models of intermodal transport collaboration and coordination that are supported by an innovative communication platform. Companies (Logistics Service Clients and Logistics Service Providers), which are now working in the intermodal eco-system, are able to collaborate and easily exchange standardized information in order to improve effectiveness and efficiency of transport and management of container flow to and from container terminals.
The goal: Create IT platform (integrated collection of data) for communication and management of Intermodal deliveries to container terminal.

1.2.2 Dutch Living Lab
The ambition
Combi Terminal Twente (CTT) is the core-organisation of the Dutch Living Lab. CTT was a hinterland terminal in the east of the Netherlands. Having a central role in the regional business community, which comes from its natural role as a trans-shipment point, CTT is one of the driving forces in 'Port of Twente' - the business community association. The Twente region has the ambition to become a logistics hotspot, strategically located between the deep-sea port of Rotterdam and the west-European hinterland and very well served by road, rail and waterways.

The ambition of the Dutch Living Lab was to enable collaboration between stakeholders in the Twente region and thus stimulate competitiveness and attractiveness of the area. An information infrastructure for sharing data – driven by business needs – was needed to support this.
The objective
The objective of the Dutch LL was to create a light-weight, low-cost and flexible infrastructure for sharing data. The aim was to reduce the barriers to start developing apps and services the community requires.

1.2.3 Spanish Living Lab
The problem
Carreras, a large Spanish logistics supplier, cooperates with almost 6,000 SME road carriers. These SMEs have limited or no IT support for their activities, doing most of the operations manually that create a disadvantage when working amongst bigger players. Their large business partners and customers usually have more advanced tooling but cannot use this to communicate with SMEs. This endangers the position of the SMEs for example because they cannot offer the same visibility to the end-customer as large operators can.
The problem addressed in the Spanish Living Lab included inefficiencies in collaboration between companies because many operations are still performed manually instead of electronically. On average the administrative process takes 25 minutes and at least 2 phone calls per operations and 55 minutes in case of an incident, which happens in about 5% of operations. Even a small reduction in the amount of manual work could have a major impact for both sides. Additionally, errors and untimely sending of invoices by SMEs typically lead to postponed payment and thus can weaken the financial position of the SME.
The objective
The objective of the Spanish Living Lab was to enable SME transport service providers to automatically exchange data with large forwarders. Especially transport orders, execution status and invoicing.

1.2.4 Italian Living Lab
The problem
The main partner in the Italian Living Lab was Consorzio IB Innovation, the RTD company of Interporto Bologna, promoting innovative actions in the Bologna Freight village where a lot of SME companies are located (60% of the total tenants). Interporto Bologna thus saw their investment in a virtual market place as a service towards their customers and as an opportunity to make the Bologna Freight village more attractive for new business.
SMEs in the Bologna area miss an easy opportunity to engage in new business. It is a challenging activity because of limited available resources. Also, transport orders could often only be received by email or phone and this made it more difficult for SMEs to do business with larger players that use software solutions and electronic messaging. SMEs in the Bologna area agreed they needed a diversification of customers – thus attracting new business – and increasing trans-nationality, which could make business development even more challenging.
The objective
The objective of the Italian Living Lab was to enable SME transport operators to acquire new business through a virtual market place.

Project Results:
1.3.1 LogiCon Reference Architecture
As a first step to provide a technology founding for the cooperation among SMEs in the logistic sector, a reference architecture (RA) has been defined to be used as a roadmap to build connectivity infrastructure and technology tools so logistics companies can easily exchange electronic information among them. So, it defines the concepts and potential technologies that could support software developers to build Apps and systems based in reference functionality allowing a sustainable Business Model both for logistics companies and software industry.
By definition, LogiCon Reference Architecture is not intended to substitute other similar approaches but to complement them in order to involve SMEs in the logistics information exchange. Actually, the roadmap of the Reference Architecture includes the extendibility of the concept in order to interact to other existing platforms and interoperability mechanisms.
In a wider sense, the differentiation factor of the reference architecture is that it addresses both transactions (traditional EDI and XML type of messaging) and (real time) data sharing for decision support. At the same time, is particularly focused on the transport layer of the OSI model, so it is not focused on the information shared between the different actors.
Each Living Lab has used the architecture to 1) search and classify the resources available, matching them into the reference architecture; 2) define the missing gaps to be built to complete the vision. So, the RA contains the architectural definition of the solutions, its interfaces and components, communication protocols and extension points for the specialization of the functionalities of the dashboards.
Therefore, this reference architecture should be used as roadmap for the implementation of connectivity and data sharing solutions among logistics operators and third parties working in logistics services networks.
In addition, to follow the upcoming collaboration structures, this reference architecture includes several features:
- Basic messaging approach;
- support to event¬-driven processes based on publish/subscribe;
- open-data concepts;
- data transformation capabilities to support different (open) standards;
- peer-to-peer communication .
Therefore, to enable the interaction between different partners, the reference architecture will be used to build connectivity networks, composed by an infrastructure for mediating the interaction between; a set of customizable connectors to adapt the current legacy IT systems of a partner to the LogiCon networks or to create specific user’s applications:
- LogiCon connectors: a set of customizable connectors that will be used by stakeholders (SMEs and Logistic Platforms) to provide connectivity with LogiCon.
- LogiCon mediator: infrastructure that will handle mediation between LogiCon stakeholders.

LogiCon technology context
LogiCon mediator handles the mediation between LogiCon stakeholders in the logistic network. Mediation includes API management, subscription and data exchange mechanisms.
Following the specification of the reference architecture, it will be possible to build an implementation by selecting a combination of different elements:
- Open source elements. For each component, several open source technologies (or combinations of them) have been proposed.
- Already existing and running components put into place by the companies involved that completely or partially answer the specification. This is especially interesting when combining LogiCon to existing systems (such as fleet management systems) or communication platforms (such as EDICOM).
- Specification of the connector and some initial default implementation, to interact with the legacy systems.
From a technical perspective, the reference architecture should be used as a roadmap to fulfill the technological gap that every SME currently has to face, mainly because of the lack of specific IT solutions adapted to their circumstances. In the project, this is being done at Living Lab level to facilitate their access.
In order to verify the strategy, the Living Labs have applied and/or revised the specification contained in this document as a way to validate the potential implementation in real circumstances of the involvement of SMEs in the information flow.
However, beyond the necessary technical dimension, the main challenge to succeed in the involvement of SME on the information flow is related to the identification of a feasible business model that could fulfill the expectations from the large LSPs while answering the specific needs of the SME.
In this sense, the role of technological teams willing to build or complement existing logistics related systems with features dealing with the information exchange and collaboration with SME is fundamental. The LogiCon Reference Architecture offers the following added value for them:
- Proposed system architecture, adapted to the collaboration among logistics companies, especially SMEs. This includes the whole life cycle, from construction and implementation to scalability and extendibility.
- Revision of existing available technologies that can be used as implementation blocks for new or legacy systems
- Communication standards that can be used in order to facilitate the information exchange
- Learn from existing cases in order to boost the implementation
To enable a full deployment of the Reference architecture, it is key the establishment of collaboration schemas with these technological partners to extend the use of the LogiCon concept: The added value explained before is fundamental for this, together with a feasible strategy that combines the application of open source approaches to part of the developed knowledge as well as the extensive use of communication standards.
So, the strategy for the adoption of the Reference Architecture is based on the following aspects:
- Open access to the specification and experience related to the Reference Architecture. This will be implementing by using an existing “Open Source” license model, still pending of choose.
- Active approach on the building of collaboration structure with existing top technological vendors and providers of logistics management systems.
- Consulting support offering for the adoption and integration of the specification of the Reference Architecture
So, related to the results of the LogiCon Living Labs, this strategy could be adapted in the following steps:
- Current results and partners becomes the core of a network, as a cluster.
- On the one hand, the cluster is extended either by transitive relation-ships among the partners, sharing their experience; or by marketing/commercial activities to involve new subclusters.
- On the other hand, the connectors are extended in two different approaches
o The technological partners of the core network decide to extend the connector to additional systems, applications or platform because of strategic interest
o Other technological providers join the network by implementing new connectors by their own using the specifications of the Reference Architecture

1.3.2 Living Labs characterization and results
As further characterization we are including a value proposition description of the main results, following the below schema:

1.3.2.1 Polish Living Lab

T-Scale is the main result of the Polish living lab.
T-Scale value proposition is described in the below table, both from Supplier point of view and from the Customer/s point of view.

Supplier point of view: ICT providers and consultants
Products and services To deliver integrated and tailored IT solution (T-Scale Intermodal Platform) to the customer, the following activities were preformed:
▪ Requirements collection and analysis,
▪ Business process reengineering,
▪ Development of ICT infrastructure and hardware,
▪ Software installation and configurations,
▪ Ad-hoc development,
▪ Training,
▪ System maintenance and monitoring.
IT tool focused on co-operation between the seaport container terminal, the intermodal transport operator as well as the railway carrier marshalling trains at the port territory. The challenge was to create a universal system of exchanging information by all involved companies in order to optimise the incoming and outgoing flows of containers as well as loading and unloading of trains.
Challenges in collaboration between intermodal business partners:
▪ Many parties collaborating in one intermodal chain,
▪ Larger and smaller players with different levels of development,
▪ Conflicting interests and different market positions,
▪ Differences in size, structure, habits, routines and approach.
à lack of fluent and accurate information flow between each other
▪ Parties depend heavily on external factors they frequently do not control.
à many misunderstandings and lack of trust
Gain creators The main objective of the T-Scale Intermodal Platform was to propose and verify in practice business model and technical solution that enables creation of companies’ eco-system in the field of intermodal transport. Companies in the ecosystem communicate and exchange data using agreed communication protocols based on developed IT tool.
The challenge was to create a universal system of exchanging information by all involved companies in order to optimise the incoming and outgoing flow of containers as well as loading and unloading of trains.
In order to prepare IT tool responding to the intermodal companies needs the following steps were taken:
▪ meetings with representatives of intermodal sector (collection of further needs and ideas on missing functionalities),
▪ direct contact with potential users and presentation of the benefits,
▪ Online survey conducted to identify customer satisfaction of the T-Scale Intermodal Platform.
Pain relievers Currently planning of hinterland rail transport from or to the sea container terminal involves many actors and consumes a lot of time for exchange of information – phone calls, faxes and emails. This problem causes the hinterland planning of the sea port to be less efficient and less attractive for its customers. Taking into account that 1,2m TEU were transported through the Polish ports in 2013 and 40% (upward trend) of deliveries were transferred to the hinterland locations and back by rail (ca.20 trains daily), the problem of information exchange between all involved players (ca. 15 intermodal operators end 10 direct rail carriers) seems to be a significant. Inadequate, long-lasting handling services at terminals became bottleneck for fluent container traffic to the hinterland locations.
Customer point of view: Sea container terminal
Customer jobs T-Scale Intermodal communication platform enables exchange of information between seaport container terminal, intermodal transport operator and rail marshalling carrier enabling planning of intermodal deliveries between seaport terminal and final receiver in the hinterland and vice versa.
Gains Container Terminals providing intermodal services in ports will benefit from the platform through:
▪ Better planning and resource management – cost savings,
▪ Container flow control and management, congestion and idle time reductions,
▪ Speeding up and optimizing rail operations,
▪ Automation of rail processes, invoicing, reporting,
▪ Prompt reaction in case of deviation.
Pains
▪ Lack of consolidated online information about trains,
▪ Difficulties in preparing financial settlements with customers.
Customer point of view: Railway carrier
Customer jobs Railway carrier (rail marshalling operator) is responsible for incoming and outgoing rail flows of containers in the area of port. Access to reliable information provides him the opportunity to optimize a transport process and plan resources adequatly (e.g. involvement of appropriate number of locomotives).
Gains Rail Carriers servicing Intermodal Operators with rail transport to Container Terminals will benefit from Platform through:
▪ Better control of last mile operations,
▪ Better fleet management,
▪ Efficient utilization of resources – locomotives,
▪ Process standardization and automation – ordering, reporting & monitoring.
Pains
▪ Lack of consolidated online information about trains and process status realization.
Customer point of view: Intermodal operator
Customer jobs Intermodal operator is responsible for organizing and executing containers transport between the maritime, inland terminals and directly to customer's door.
Gains Intermodal Operators providing transport services to Freight Forwarders and Shippers will benefit from Platform through:
▪ possibility of precise planning of deliveries due to close cooperation with all business partners executing transport services such as intermodal transport operators, container terminals and railway marshalling carriers,
▪ securing transit times agreed with customers due to reliable planning,
▪ access to on-line monitoring of container movements at the port territory and along the whole journey to the final receiver,
▪ receiving alerts in case of deviations from the planned route enabling adequate reaction,
▪ direct contact with the train or truck driver in case of deviations from the planned route.
Pains
▪ Poor IT background of some stakeholders,
▪ Reluctance of changing current cooperation processes,
▪ Mental reluctance against the introduction of new IT solutions (mainly applies to smaller companies),
▪ Larger and smaller players with different levels of development.

The solution
The solution developed in LogiCon is a communication platform named T-scale Intermodal that enables information sharing for the hinterland planning processes by all parties involved. The functionality includes exchange of bookings for intermodal transport, allocation of bookings to rail wagons, exchange of loading and unloading plans and status monitoring of execution. One of the main values of the platform is the stimulus towards cooperation in order to receive a transparent transport system which is advantageous for everyone. Such an attitude is quite new in the Polish market.
Features of the solution:
▪ simple to understand - time table layout, clearly defined roles,
▪ accessible - via web page with ID and password,
▪ easy to use - user friendly, intuitional,
▪ open - all stakeholders can participate,
▪ Useful - providing useful information, ex. weekly arrival & departure plans, personalized dashboards and reports.

Main challenge:
▪ to improve communication in intermodal transport
▪ to develop modern tools for information exchange

Main stakeholders and problems:
▪ Container Terminal - unable to plan operations well
▪ Intermodal Operator – unable to control the service offered
▪ Railway Carrier – unable to mange the fleet

Communication process in the past:

Communication process using T-scale Intermodal:

Role of SMEs
SME participation in the Polish LL was crucial - the majority of Polish shippers (exporters and importers) as well as some of the logistics service providers (intermodal operators, hinterland rail terminals, truck operators) involved in the intermodal supply chain are SMEs. Also road carriers used for last mile haulage are involved in the development of the LogiCon solution, in which they benefit from cooperation within optimised supply chains. SMEs were involved in the testing of the platform through various locally organised workshops where they could share ideas and provide feedback. Also, during more a more advanced stage of development, SMEs were invited to use the solution.

Benefits for SME’s
The main benefits for SMEs were a reduction of logistics costs, the possibility of better and more realistic delivery planning and online monitoring of container movements. The other benefits included the possibility of dynamic real-time delivery planning, reduction of transport cost due to group purchases of transport services, sharing loading space of vehicles, and access to a cheap and reliable track&trace solution.

Benefits for the whole industry:
▪ costs & time reduction in Intermodal delivery arrangements,
▪ accuracy of data exchanged,
▪ digitalization of a whole process among all stakeholders,
▪ easy and fast access to information on-line,
▪ standardization of operations performed,
▪ increase of competitiveness of intermodal transport.

Benefits for Terminals:
▪ Better planning and resource management - cost savings,
▪ Container flow control and management, congestion and idle time reductions,
▪ Speeding up rail operations,
▪ Automation of rail processes, invoicing, reporting.

Benefits for Railway Carriers:
▪ Better control of last mile operations,
▪ Better fleet management,
▪ Process standardization and automation – ordering, reporting & monitoring.

Benefits for Intermodal Operators:
▪ Own system integration with platform only,
▪ Better Intermodal delivery planning, better management of resources (human, equipment),
▪ On-line monitoring of last mile operations,
▪ Increased competitiveness,
▪ Reporting.

1.3.2.2 Dutch Living Lab
Intrepid is the name of the main result of the Dutch living lab.
Intrepid value proposition is described in the below table, both from Supplier point of view and from the Customer/s point of view.
Supplier point of view
Products and services The Intrepid data platform offers a multi-sided platform (MSP) for controlled data sharing. The platform offers its customers:
▪ Controlled data access: a logistics stakeholder provides controlled data access to other stakeholders based on security mechanisms and access restrictions. Data access can imply data manipulation (Create, Update and Delete), but basically starts with data retrieval in the Living Lab.
▪ Supporting the development of apps and services: providing web entrepreneurs with easy access to data available via the MSP. According the business model canvas, web entrepreneurs are the indirect channels to customers.
Gain creators
▪ Provision of real-time data
Pain relievers
▪ Support for access to static infrastructure data
▪ Support of billing structure
▪ Controlled and monitored sharing of data between stakeholders
Customer point of view: IT solution providers
Customer jobs IT service providers build dashboard, web-apps or have clever algorithms, e.g. to combine data for logistics companies
Gains
▪ Easy access available data resources (on an API-level) in an easy and controlled way. Through this, the companies can provide new and more advanced functionalities
▪ Standard for applying data sources to company specific data and to share information between partners.
Pains
▪ Controlled platform for sharing information. Company remains owner of the data
Customer point of view: Logistic Service Providers & shippers
Customer jobs Logistics service providers & shippers use solutions from IT solution providers to improve its operation based on real updated information
Gains
▪ More efficient operational planning through access to real life data
Pains
▪ Controlled platform for sharing information. Company remains owner of the data
Customer point of view: Transport operators
Customer jobs Transport operators use solutions from IT solution providers to improve its efficiency, competitiveness and sustainability
Gains
▪ More efficient operational planning through access to real life data
Pains
▪ Controlled platform for sharing information. Company remains owner of the data
▪ Platform can allow communication with system large customers when applying apps.

The solution
CTT developed a data sharing infrastructure (kind of Appstore) for the Twente business community at large. CTT also used this infrastructure to develop apps and services for their terminal’s customers and suppliers. Parts of the infrastructure will in the future also be used by Port of Twente (the community association) for sharing public data (e.g. vessel movements on the main inland waterways in the region).
To demonstrate the use of the architecture, some example apps and services were developed in Logicon:

▪ Case 1: An app for lock planning (http://www.portoftwente.com/open-source-initiative/) supporting both barge operators and Rijkswaterstaat.

▪ Case 2: Dynamic data on Inlandlinks.eu an advanced connection where real-time information of CTT’s services has become available.

▪ Case 3: Spanish app in Dutch context - implementing the Spanish app for SME truckers in the Dutch context.

Role of logistics SMEs
There are a lot of SMEs involved in the business community around Twente, both logistic service providers and shippers. SMEs have specific requirements for adopting new IT-capabilities. Very often, the level of IT maturity is lower than in large organizations and when solutions are adopted; set-up should be quick and cheap while benefits need to be perceived immediately. In the Dutch Living Lab Logicon tried to meet these requirements by developing an information infrastructure that could support delivery of flexible, cheap and where needed tailored solutions that are easy to implement.

Benefits for SMEs
Benefits for logistics SMEs in the Twente region resulted from the use of the information infrastructure and its connected apps in their operational processes. The functionality of the apps determined the exact type of benefit and the architecture as such was merely an enabler. However, a lot of app development companies were also SMEs and the architecture led to direct benefits for them because it helped them to launch apps for the logistics community cheaper and easier.

Living Lab Achievements:
▪ new apps have been developed
▪ parties started to use them
▪ parties started to invest in apps and solutions
▪ opportunities aroused for further deployment and roll-out

1.3.2.3 Spanish Living Lab
Logicon MRM is the main result of the Spanish living lab.
Logicon MRM value proposition is described in the below table, both from Supplier point of view and from the Customer/s point of view.

Supplier point of view
Products and services LogiCon network for the planning and tracking of transport operations, composed by several components:
- Connectivity Service Infrastructure and connectors
- Desktop Universal Mobile Resources Management and On-board Mobile Resources Management for SME fleets
- On-board Plan Mobile Resources Management for Freelance Truck Drivers
Gain creators The use of the network improves the quality of service as well as the creation of added value services for the involved companies
Pain relievers It facilitates several aspects of the business process:
- Automation of procedures
- Easier fleet management
- Reduction in invoicing times
Customer point of view: Large Transport operators
Customer jobs Management of the transport operation subcontracting process involving with SMEs: from transport request to invoice management
External fleet management
Gains Automation of the transport operation subcontracting process, especially when involving with SMEs: from transport request to invoice management
Simplification of the external fleet management by homogenizing their tracking features
Pains Manual tracking of the subcontracted operation, especially when contacting by phone with the truck driver
Errors due to duplication of information and phone transmission
Limitation in the fleet management, when assigning resources to added value services
Customer point of view: Small transport operators
Customer jobs Management of the transport operations
Gains Access to planning and tracking tools
Additional business because of the facilitated connections
Pains Difficulties in online tracking
Difficulties and quality issues because of the information exchange
Customer point of view: Freelance Truck Drivers
Customer jobs Management of the transport operations
Gains Access to planning and tracking tools
Additional business because of the facilitated connections
Pains Difficulties in online tracking
Difficulties and quality issues because of the information exchange

The solution
LogiCon delivered apps for web and smart device for SME trucking companies and truck drivers to support service information exchange, e.g. tracking of truck departure and arrival, creating and sending of transport orders and invoices. The app solutions and architecture behind it can communicate directly with large Transport Management Systems of forwarders and shippers. This substituted information exchange via phone/mail with automatic data exchange. The apps were generic and so made the solution more acceptable than specific solutions for customers or TMS systems.
The following schema summarizes the actors and solutions participating in the Logicon MRM solution.

The following table describes the different solutions of the above schema:

In particular some screenshots of the on-board MRM solution are shown below:

Benefits for SME’s and large players
Benefits for SMEs are improved performance because of simplified operations with major contractors resulting among others in reduction of invoice preparation and management, real-time tracking information, etc. This strengthened the SME’s market position towards becoming preferred partners for their large customers. Large players have also become beneficiaries of the solution. In the past they tried to implement similar solutions for SMEs themselves. However, the impact was limited, because SMEs got offered multiple solutions. Therefore the creation of a neutral architecture with critical mass, based on a feasible business model for SMEs and interoperable with other systems is preferable.

General benefits:
▪ universal and neutral data exchange
▪ single app to entire sector
▪ administrative costs reduction
▪ invoicing time reduction
▪ justification against complaints
▪ incident tracking and evidences
▪ non-invasive supervision
▪ reaction time reduction

1.3.2.4 Italian Living Lab
SinergiBO is the main result of the Italian living lab.
SinergiBO value proposition is described in the below table, both from Supplier point of view and from the Customer/s point of view.

Supplier point of view
Products and services Transportation service offer/request transportation service matchmaking
Gain creators Increased load factor due to consolidation
Cost savings
New customer acquisition
Pain relievers Empty returns
Customer point of view: Transport service type
Customer jobs Transport service provider
Gains Increased load factor due to consolidation
New customer acquisition
Pains Empty returns
Customer point of view: Transport client type
Customer jobs Transport service client
Gains Cost savings
Pains
Customer point of view: Freight Forwarders type
Customer jobs Freight Forwarders
Gains Transport solution findings
New customer acquisition
Equilibrate supply and demand
Competitive position in the sector
Pains Operational cost savings

The solution
LogiCon delivered a web-based transport market place where logistic service providers (both SME and non-SME) offer their transport services and shippers (also both SME and non-SME) share their transport requests and the virtual market will support profiled match-making features. The solution includes a dashboard, geo-location services and a ‘full truck algorithm’ to improve the load factor.

Direct benefits for SME’s
SMEs may easily present their offer of transport services to potential customers supporting business development of transport operators but also providing more visibility for customers and reliability. Bundling of volumes will be promoted and consequently an improvement of the load factor and reduction of costs can be achieved.

Potential Impact:
Socio economic impact has also been investigated within the project because any technology could be successful only if appreciated and useful for the end users. Indicators involved to investigate this issue are defined in the below discussion and the user propensity to move to a different mobility paradigm.
An evaluation of the Living Labs was performed in order to be able to validate the results of the success of the implementation case. In the evaluation, three main aspects are taken into account:
▪ Adoption indicators to evaluate the behavioural change of the involved stakeholders on the solution/technology;
▪ Business model and technological maturity of the solution/technology: and
▪ Key performance indicators to evaluate the impact and efficiency of solution/technology compared to the Living lab goals.
This section summarizes the main lessons learned from the different Living labs and present an overview of tips found over the duration of the Living Lab for improvement of the different steps. It can help other communities in their adaption process of LogiCon solutions.
Adoption indicators
Adoption of the solutions provided in the Living Labs by users and stakeholders is essential for a solution to become successful. To be able to measure adoption, six levels of user adoption were distinguished, using the Behavioural change model. The following table presents the final results of adoption by users and stakeholders for the different Living Labs.

Table: Current stage of adoption willingness in the four Living Labs
Conclusions of the assessment are:
• The adoption in the Polish Living Lab differs significantly between the involved stakeholders. The results show reluctance from certain stakeholders to cooperate in the solutions.
• Participants who have been actively involved in the Dutch Living Lab are using the proposed solutions (case owners) or are already considering next steps. Other actors in the supply chain have shown some reluctance in the current cases, but are interested in the development of new solutions.
• Partners in the Spanish Living Lab have demonstrated a great engagement and are interested in continue using the solutions developed and doing the effort to implement them in full production.
• The SinergiBo solution developed in the Italian Living Lab is actively used by Logistics Service Providers and Transport Operators in the Bologna Freight Village.

Business model and technological maturity
The following table presents a (generalized) overview of the main factors of success and barriers of the four Living Labs.

Subject Factor of success Barrier
Technical
• Easy to access, Easy to use, user friendly, (PL, IT)
• Living Lab create solutions for cooperation standards, thus make the solution applicable to large companies and SMEs to (PL, NL, ES)
• Possibility to integrate with external IT solutions (PL) • Reluctance of supply chain actors to cooperate on the Platform (PL)
• Poor IT background of some actors (PL, ES)
• Variety of legacy systems, protocols and integration procedures required to generate the LogiCon connectors between legacy systems. (ES, NL)
• Some functionality requires community-wide agreement on governance of the associated infrastructure (NL).
Organisational
• Final user involvement in all phases of IT tool development and execution (PL)
• Information flow transparency (PL)
• Clear measurement of the potential benefit of the outcomes of the project (ES)
• Supporting the business development and follow up among transport clients and providers (ES). • Lack of trust between business partners (PL)
• Larger and smaller players with different stages of development (PL, NL)
• Stakeholders want to keep organisational aspects to themselves and this has not been integrated by the solution (NL, IT, ES)
• Alignment and sustainability of business models, operational procedures and legal context (e.g. in the case of lock operation) (NL).
Operational
• Process transparency (PL)
• Increased efficiency for all Platform users (PL)
• System of alerts informing of deviations and current processes status (PL)
• Reduction of administrative management costs through using the solution (i.e. phone calls, mails) (ES).
• Marketplace tool between truck demand and supply was and appreciated by market parties (IT) • Reluctance of changing current cooperation processes (PL, IT)
• Mental objection against the introduction of the new IT solutions (mainly applies to smaller companies) (PL)
Table: Overview of the main Factors of success and barriers of the LogiCon Living Labs
(PL = Polish Living Lab, NL = Dutch Living Lab, ES = Spanish Living Lab, IT = Italian Living Lab)

Key Performance Indicators
To assess the impact that the LogiCon Living labs have on the operations of the SMEs, the Key Performance Indicators (KPI) that were set up during the “Do phase” were used. The KPI are related to three subjects:
• Improve efficiency;
• Reduction of errors and incidents; and
• Improve customer satisfaction.
The following table presents the main effects of the Living Labs on the KPIs. The table shows that the LogiCon cases have made a significant impact on operations of SME.

Criteria for LogiCon solutions Indicator Effect of LogiCon cases
Improve efficiency • Reduction of train handling time duration (PL); - 5 h 2 min (-27%)
• Reduction of intermodal transport transit time (PL); - 4 h 15 min (-25%)
• Reduction of average planner involvement per train (PL); - 30 min (-33%)
• Days from Service to check information and documentation to proceed with invoicing (ES); - 14 days (-99%)
• Average time per order administration (ES); - 30 min (-75%)
• Reduction of total transport costs(IT); - 20% to - 25%
Reduce errors / incidents • % of retained invoices (ES); Effect still unknown
• % of incidents when invoicing services (ES). Effect still unknown
Improve customer satisfaction • Punctuality of deliveries increase (PL); + 40 %
• Number of trips/year acquired (IT). Effect still unknown
SME access • Number of business ideas generated (NL); 5
• Number of apps available (NL); 3
• Number of data services available (NL). 45
Table: Indicators for improved logistic performance of SME

In summary the impact for each living lab is as follow:
• The planning tool developed in the Polish Living Lab shows a significant reduction in both the handling time and in planning procedures. Furthermore, the application led through a strong increase of the punctuality.
• Through the use of the connectivity platform in the Spanish Living Lab, manual orders have been eradicated. This resulted in a strong reduction of the invoicing period for the involved SME (from 15 days to 90 minutes) and a reduction of the administration time for the large enterprise (30 minutes per invoice).
• The application of Intrepid led to the generation of several business ideas in the Dutch Living Lab. Furthermore, many APIs have been made available through the system for future business ideas, such as implementation of the Spanish Living Lab App.
• Finally, the Italian Living Lab is used by SME Logistics Service Providers and transport operators in the vicinity of the Interporto to acquire new business. Truck operators find that acquiring a booking through the system can significantly lower total transport costs, by reducing the empty runs. Logistics service providers are able to acquire new assignments and sending out new transport orders in a more efficient way.
Application of the different tools can lead to a reduction of the total freight movements by truck, especially through:
• Increased use of rail freight due to the more attractive and reliable rail service provided in the Polish Living Lab;
• Reduction on the number of empty runs due to the better alignment of truck supply and demand in the Italian living Lab.
The solutions provided can also lead to an increased share of the transport movements performed by SME companies:
• Better alignment of SME administrative procedures to the preferred working method of large enterprises. Through the Spanish Living Lab, and potentially the Dutch Living Lab. SMEs can therefore offer a better service level to large customers.
• Reduction of searching costs and facilitating a larger market through the Italian Living Lab solution.

Act phase
Scale-up potential
In order to assess the impact of the connectivity and other solutions on a national and European scale an economic assessment of the impact of the four Living Labs was performed as part of the act phase. The assessment provided insight in the potential of wider adoption of the Living Lab solutions for the benefits for the European Union as a whole. To determine the potential, first the main characteristics were determined for each living Lab. Afterwards potential markets within the EU with similar characteristics were identified.
The application developed in the Polish Living Lab can potentially be transferred to medium-sized European seaports. The following figure provides an overview of some potential locations. The most suitable markets are mainly located in the Mediterranean Area and in the Baltic.

Figure: Location of the applicable seaports for the Polish case
The portal developed in the Spanish Living Lab could potentially be transferred to a wide European market. The application can be applied as an intermediate tool for communication between (very) small transport operators and large customers. Since 92% of the operation is performed by (very) small companies, the app can be beneficial at a wide European scale.

Country Total Companies Very Small operators Total %
Poland 127,899 124,327 97%
Spain 177,550 171,727 97%
Portugal 19,888 18,604 94%
Italy 104,540 97,033 93%
France 82,832 75,452 91%
Romania 30,582 27,654 90%
Netherlands 15,543 13,149 85%
Germany 59,389 42,961 72%
Table: Fragmentation in road transport for selected EU countries
The freight market place that was developed in the Italian Living Lab can be transferred to large freight communities such as freight villages and industrial parks. A first possible set are the top 20 European Freight Villages which is included in the figure below.

Figure: Location of the freight villages selected for the scale up
The Dutch Living Lab focusses on creating a platform for a wider community in order to generate new ideas and apps. In general this could be adopted in a wide set of communities including:
• Port communities;
• Freight villages, rail terminals and industrial parks;
• Suppliers around central big shippers or LSPs; and
• Inland navigation terminals

Act – Final completion
All Living labs have formulated next steps which have been described in the exploitation plans.
Based on the input and the process of the Living Labs, recommendations were presented for the different stages of the Living Labs. The following table summarizes the main findings.

Stage Main Lessons Learned
Plan
• Preparatory steps often take more time than originally expected. In the process sufficient time for the Plan phase should be taken into account.
• Besides the stakeholders identified at the beginning of the project (partners involved in the Living lab), other relevant stakeholders need to be identified and consulted at an early stage.
Do
• Begin with a small improvements and later on extend the product and business case. Show early progress.
• Permanent dialogue is crucial between all involved stakeholders and also final user involvement in all phases of IT tool development is necessary.
• Transparent information sharing on the service quality and economic benefits that can be expected for the solutions helps with gaining stakeholder acceptance for the solutions.
Check
• KPIs identified at the beginning of the project (Plan phase) may be difficult to collect in practise or might not reflect the main findings of the Living Lab. Therefore at the beginning of the check stage, a critical review of the list of KPIs together with the involved stakeholders is desirable.
• Besides quantitative data on KPIs, it is also important to collect qualitative data on “soft” criteria to get a clear overview of different aspects of the living lab.
• - A full impact assessment based on the evaluation of the living Lab is not always feasible due to lack of data.
Act
• The act phase is done implicitly throughout the project and is performed often in the Do phase (readjustment of the Living Lab).
• When making decisions, all relevant stakeholders should be involved as much as possible
Table: Overview of the main Lessons learned for the different stages of the Living Lab

Exploitation
The Exploitation plans are related to the identification of opportunities, as well as to the cost of these opportunities. An evaluation of the opportunities related to the Logicon results produce the below Opportunity matrix table .

LL Exploitable result Depth of pain Budget Ease of reach Ease of MVP Size of Market Values
PL T-Scale H M H-M M M-L H
NL Intrepid M M-L M M M H
ES MRM Logicon H M M-L M H H
IT SinergiBO M L M-L H M H
H: High, M: Medium, L: Low

Currently (Mid 2015) the situation is as follows for the different results:

Result Status
T-Scale Agreement between main actors to commercialize
Intrepid TNO will pursue the opportunity, maybe with further R+D developments. NexusZ is commercializing its result over the Intrepid platform
MRM Enide is in negotiations with first (potential) clients. Further developments are required and Enide is analysing how to finance them
SinergiBO IBI is raising the system, looking for economic support for large sustainability

List of Websites:
Project web site: www.logicon-project.eu
Project video: see it on project web site, or on www.youtube.com/watch?v=3qEWYHRSb1M

More Information
Francesc Rosines - Technical Coordinator
e-mail: Francesc.Rosines@enide.eu
ENIDE Solutions SL, Spain

Tomasz Dowgielewicz - Project Coordinator
e-mail: Tomasz.Dowgielewicz@ilim.poznan.pl
Instytut Logistyki i Magazynowania (ILiM), Poland

Final Report Summary - LOGICON (Lean Secure and Reliable Logistic Connectivity for SMEs)

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