Digitalization of transport flow management processes

1.

DIGITAL TRANSPORTATION
TECHNOLOGIES AND INTELLIGENT
TRANSPORTATION SYSTEMS
Lecture 1.
Digitalization of transport flow
management processes
Prepared by Makhnach Ekaterina

2.

LECTURE PLAN
Digitalization of transport flow management processes
1. Transport logistics: Modern concept of logistics and logistics
approach to the management of motor transport
2. Material and information flows of transport logistics
3. Logistics management
4. Features of the concept of a unified digital transport and
logistics environment
5. Ensuring non-discriminatory access to transport
infrastructure
6. Digital transformation in the transport and logistics sector:
cloud technology, big data, robotization, consumer
preferences, blackchain, IOT, drones

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My Telegram

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Transport logistics: Modern concept of logistics and logistics
approach to the management of motor transport
The modern concept of logistics is considered as an effective motivated approach to production
management.
This concept is taken as the basis of the economic strategy of the enterprise, when logistics is used as a
tool in the competitive struggle and is considered as a management logic for the implementation of
planning, placement and control over material, financial and labor resources.
The allocation of transport logistics is due to the specifics of the economic entity - a transport enterprise.
Given the specifics of the operations performed by transport, transport logistics should be considered as
part of material logistics.
Let us consider the main contradictions that arise when using the logistics approach to managing motor
transport.

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Motor and urban transportation include the operation of motor-driven vehicles, upon public roads,
used in transporting persons or property belonging to others, on a for hire basis.
A motor transport enterprise differs from an industrial enterprise. A motor transport enterprise is an
element of macrologistics systems that provides a connection between the links of the logistics chain
(promotion of material flows), and on the other hand, a motor transport enterprise is a consumer of
individual material flows, the final link of the corresponding logistics chain.
A motor transport enterprise can be represented as an intra-production logistics system in which
incoming material flows (fuel, spare parts, units, tires, etc.) are transformed into material services transport services.
The implementation of a logistics approach is complicated by the fact that a motor transport enterprise
operates in conditions of uncertainty and risk.
Maintaining the reliability of this system requires large material and labor costs and determines the value
of a number of logistics indicators:
• costs per shipped unit of production;
• costs per 1 t. km of transported cargo;
• vehicle fleet load.

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Transport is a link between the elements of logistics systems.
Transport logistics is a type of logistics that manages a set of operations that ensure the physical
movement of inventory items between participants in the supply chain with minimal costs, i.e.
moving the required quantity of goods to the desired point, along the optimal route in the required
time and with the lowest costs.
(Warehouse)
Producer
Primary products flow
Customer
Primary products flow
The costs of creating any product consist of the cost of production and the costs of performing all work in the chain
"manufacturer - end consumer". The movement of material flow from the primary source of raw materials to final
consumption requires costs that can reach up to 50% of the total logistics costs.

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The subject of transport logistics is the rational organization of cargo movement processes.
The tasks solved by transport logistics, specialists include:
1) creation of transport systems, including the creation of transport corridors and transport chains;
2) ensuring the technological unity of the transport and warehouse process;
3) joint planning of the transport process with the warehouse and production;
4) determination of a rational route for cargo delivery;
5) selection of the type and kind of transport vehicle;
6) joint planning of transport processes on various types of transport.
Transport as a system
Intendef for public use
Non-public use

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The concept of "material flow" is key in logistics.
The Material Flow is an important part of every production and logistics. It describes the
physical movement of materials, products and goods through the entire manufacturing
process.
Material flows are formed as a result of transportation, storage and other material operations with raw
materials, semi-finished products and finished goods - from the primary source of raw materials to the
end consumer.
Thus, the movement of material flow is an integral part of transportation. Material flow is a set of goods
and materials related to a time interval, considered in the process of applying various logistics operations
to them.
The totality of resources of one name, located along the entire length from a specific source of
production to the moment of consumption, forms an elementary material flow. A set of elementary flows
formed at an enterprise constitutes an integral (general) material flow, ensuring the normal functioning
of the enterprise.

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The following material flows are distinguished:
- External material flow is a flow that occurs in an environment external to a given logistics system;
- Internal material flow is a flow that occurs in an internal environment relative to a given logistics
system;
- Incoming material flow is an external flow entering a given logistics system;
- Outgoing material flow is a flow leaving a given logistics system into the external environment.

10.

Information flow is a set of messages circulating within a logistics system, between it and the
external environment, necessary for the management and control of logistics operations.
Information flow corresponds to material flow. In real logistics systems, material and information flows
may partially precede each other.
Information flow may have the same direction as the material flow (forward) and the opposite direction
(counter).
The leading information flow in the forward direction contains preliminary messages about the upcoming
arrival of goods, and in the counter direction - information about the order.
Information about the quantitative and qualitative parameters of the moved resources goes parallel to
the material flow. Information about the results of acceptance of goods, as well as claims and
confirmations, may go after the material flow in the counter direction.
Supplier
Manufacturer
Distributor
material
informational
Consumer

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A logistics operation is a separate set of actions aimed at transforming a material and/or
information
flow.
Logistics
operations
with
a
material
flow
include
warehousing,
transportation, packaging, etc.
Logistics operations with an information flow include actions to collect, process, and transmit relevant
information.
There are external and internal logistics operations. External logistics operations include all actions in the
field of supply and sales of finished products, and internal operations include operations to manage the
material flow in production.
In addition, logistics operations can be unilateral or bilateral, associated with the transfer of ownership
of goods from one legal entity to another. The management functions of logistics in transport processes
are implemented in the construction of a transport service model and are based on rational
transportation routes and delivery schedules (timetables), i.e. routing of transportation as the most
advanced way of organizing a flow that allows for the efficient use of road transport.

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Logistics management
At the level of logistics management of the company, transportation management consists of several
main stages:
1. Selection of the transportation method.
2. Selection of the type of transport.
3. Selection of the vehicle.
4. Selection of the carrier and logistics partners for transportation.
5. Optimization of the parameters of the transport process.

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Logistics management
Various types of transport make up the transport complex (TC).
The TC of a country is formed by legal entities and individuals registered on its territory - entrepreneurs
who carry out the following on all types of transport:
- transportation and transport and forwarding activities;
- design, construction, repair and maintenance of railways, highways and structures on them, pipelines;
- work related to the maintenance of shipping hydraulic structures, water and air routes;
- conducting scientific research and training personnel for enterprises included in the transport system
that manufacture vehicles.

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The task of choosing a mode of transport is solved in conjunction with other logistics tasks, such as
creating and maintaining an optimal level of stock, choosing a type of packaging, etc.
The basis for choosing a mode of transport that is optimal for a specific shipment is information about
the characteristic features of various modes of transport.
This achieves the following advantages:
– the delivery time of material resources (MR) is reduced;
– transportation costs are optimized;
– the need for vehicles is reduced;
– productivity and output are increased; –
– the need for additional financial resources is reduced.
Without motor transport, it is practically impossible to implement modern logistics technologies, such as
JT (just in time), door-to-door in the supply and distribution systems of manufacturers.

15.

Features of the concept of a unified digital transport and logistics
environment
The concept of a single digital transport and logistics environment involves the creation of an integrated
system that unites all aspects of transportation and logistics, ensuring effective interaction between all
participants in the process. Let's consider the key features of this concept.
Creating a Common Database
Develop a unified database accessible to all participants in the supply chain to improve information
sharing and increase process transparency. All participants, including carriers, suppliers, distributors and
customers, can receive up-to-date information on the status of cargo and operations.
It provides the ability to track the location and status of cargo in real time, which minimizes the risk of
losses and delays.

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Features of the concept of a unified digital transport and logistics
environment
System Interoperability
For a unified database to function effectively, it is important that existing IT systems and platforms are
compatible and can seamlessly exchange data. It is needed for developing standards and protocols for
integrating different systems to ensure compatibility and simplify interactions.

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Ensuring non-discriminatory access to transport infrastructure
Non-discriminatory access to transport infrastructure means that all market participants have equal
conditions for using transport services and infrastructure, without any restrictions or bias.
Promoting competition: Ensuring equal access promotes a competitive environment, which can lead to
lower prices and better quality of services.
Innovation: Greater access to infrastructure allows new players to introduce innovative solutions and
improve existing processes.
Access mechanisms
Regulation: Introduction of legal norms and standards that oblige transport infrastructure operators to
provide access on equal terms.
Technological solutions: Development and implementation of digital platforms that provide transparent
access to information on available services and infrastructure.

18.

Digital transformation in the transport and logistics sector
Digital transformation in the transport and logistics sector is a complex and multifaceted process that
depends on many market factors.
1. Technological Changes - IT innovations
Cloud Technologies: Allows companies to store and process large volumes of data, providing access to
information in real time. This improves supply chain management and reduces IT infrastructure costs.
Big Data: Collecting and analyzing large volumes of data helps identify patterns and predict demand,
optimizing logistics and resource allocation.

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CLOUD TECHNOLOGIES
Cloud technologies refer to the delivery of computing services over the internet, allowing organizations to
access and store data, applications, and resources without the need for extensive on-premises
infrastructure. In logistics, this manifests through various solutions such as Software as a Service (SaaS),
Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).
Data Storage and Management
• Centralized Data Repository: Cloud solutions provide a centralized platform for storing logistics data,
enabling real-time access to information from any location. This centralization enhances data
consistency and reduces errors.
• Scalability: Cloud services can be scaled up or down based on demand, allowing logistics companies
to manage varying data loads without investing in additional hardware.
Collaboration and Communication
• Real-Time
Collaboration:
Cloud
technologies
facilitate
real-time
communication
among
stakeholders, including suppliers, carriers, and customers. This improves coordination and
responsiveness in logistics operations.

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Integration with Existing Systems
• API Connectivity: Cloud platforms can integrate with existing Enterprise Resource Planning (ERP),
Transportation Management Systems (TMS), and Warehouse Management Systems (WMS) through
APIs, enabling seamless data exchange.
• Unified Interfaces: Users can interact with multiple systems through a single interface, simplifying
operations and reducing training time.
Cloud Technologies and Logistics Documentation
• Electronic Document Storage: Logistics documentation such as invoices, bills of lading, shipping
labels, and customs paperwork can be digitized and stored in the cloud. This reduces reliance on
paper and physical storage.
• Version Control: Cloud solutions often include version control features, ensuring that all stakeholders
work with the most current documents and reducing the risk of errors.

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CLOUD TECHNOLOGIES

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CLOUD TECHNOLOGIES
BENEFITS
CHALLENGES
• Cost Efficiency: Reducing paper usage and
• Data Security: While cloud providers
minimizing storage costs lead to significant
invest heavily in security, companies
savings.
must ensure that sensitive logistics data
• Enhanced Agility: The ability to quickly adapt
to changing logistics needs and regulations is
vital for maintaining competitiveness.
• Improved Visibility: Real-time access to
is adequately protected.
• Regulatory Compliance: Organizations
must ensure that their cloud solutions
comply with relevant regulations,
documentation and shipment status enhances
especially when handling international
transparency and customer satisfaction.
shipments and data.
• Disaster Recovery: Cloud solutions typically
• Integration Complexity: Integrating
include backup and disaster recovery features,
cloud solutions with legacy systems can
ensuring that critical logistics documentation is
be complex and may require dedicated
protected.
resources.

23.

BIG DATA
Big Data refers to the vast volumes of structured and unstructured data generated from various
sources in real-time. In logistics, this data comes from sensors, GPS devices, transaction records,
customer interactions, and more.
By analyzing this data, companies can uncover patterns, trends, and insights that inform their strategies.
Supply Chain Optimization:
• Demand Forecasting: Analyze historical sales data, market trends, and customer behavior to predict
future demand accurately. This helps in inventory management and reduces stockouts or overstock
situations.
• Inventory Management: Use data analytics to determine optimal inventory levels, reorder points, and
safety stock, improving cash flow and reducing holding costs.
Transportation Management
• Route Optimization: Analyze traffic patterns, weather data, and historical delivery performance to
optimize routes, reduce fuel consumption, and improve delivery times.

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• Carrier Performance Analysis: Evaluate carrier performance based on delivery times, costs, and
service quality to select the best partners.
Warehouse Management
• Layout Optimization: Use data on product movement and order frequency to redesign warehouse
layouts for better efficiency and reduced picking times.
• Real-Time Inventory Tracking: Implement RFID and IoT sensors to monitor inventory levels in real time,
allowing for better stock management.
Customer Experience Improvement
• Personalized Services: Analyze customer data to offer personalized delivery options, promotions, and
services, enhancing customer satisfaction and loyalty.
• Feedback Analysis: Utilize sentiment analysis on customer feedback to identify areas for improvement
in service delivery.

25.

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BIG DATA
BENEFITS
• Enhanced Decision-Making: Access to real-
CHALLENGES
• Data Security: Protecting sensitive
time, data-driven insights allows logistics
logistics data from breaches is critical
managers to make informed decisions quickly.
and requires robust security measures.
• Cost Reduction: Improved efficiency leads to
• Data Quality: Ensuring the accuracy and
lower operational costs, including fuel savings
reliability of data is essential for
and reduced inventory holding costs.
meaningful analysis.
• Increased Agility: The ability to respond to
• Integration Complexity: Integrating big
changing market conditions and customer
data solutions with existing systems can
needs enhances overall agility in logistics
be complex and may require significant
operations.
investment in time and resources.
• Improved Customer Satisfaction: Personalized
• Change Management: Organizations
services and timely deliveries lead to higher
must prepare their workforce for
customer satisfaction and loyalty.
changes in processes and technology
associated with big data adoption.

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Digital transformation in the transport and logistics sector
Automation of processes in logistics and transport includes the implementation of robotics and
automated control systems, which significantly improves the efficiency, accuracy and speed of
operations. Let's consider this process in more detail.
1. Robotics in logistics
Automated Warehouse Systems (AS/RS): Used to store and retrieve goods. Robots can automatically
move goods around the warehouse, minimizing the time it takes to complete operations.
Packing and Palletizing Robots: Simplify the packing and palletizing process, providing high speed and
accuracy.
Delivery Robots: Used to deliver goods over short distances, such as within warehouses or retail spaces.

28.

Robotics in logistics
Drones, or unmanned aerial vehicles (UAVs), are increasingly being utilized in warehouses for various
functions, including inventory management, order fulfillment, and transportation within facilities. Their
ability to navigate autonomously and carry payloads makes them valuable tools in modern logistics.
Real-Time Inventory Tracking: Drones equipped with RFID scanners or cameras can perform automated
inventory counts. They fly through the warehouse, scanning barcodes or RFID tags on shelves, providing
real-time inventory data.
Picking and Packing: Drones can assist in picking items from shelves, especially in large warehouses.
They can transport selected items to packing stations, speeding up the fulfillment process.
Automated Sorting: Drones can be used to sort packages based on delivery routes, enhancing the
efficiency of the packing and shipping process.

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Robotics in logistics
https://www.youtube.com/watch?v=1l-8NcbfJEs

30.

Changing consumer preferences in the context of logistics
digitalization
Today's consumers are becoming increasingly demanding, which has a significant impact on logistics
and supply chain management. Let's take a closer look at how customer expectations are changing and
how companies can adapt to these demands as part of digitalization.
Fast delivery: Customers expect their orders to arrive as quickly as possible. This puts pressure on
logistics companies to implement technologies that speed up the delivery process. For example, the use
of automated warehouses and drones can significantly reduce order processing times.
Simplify the ordering process: Today’s customers prefer simple and intuitive shopping interfaces. This
requires companies to create user-friendly platforms and mobile apps that make it easy to select and
place an order.
Real-time order tracking: Consumers want to be able to see the status of their order at every stage of
delivery. This requires the implementation of tracking systems that provide transparency and inform
customers about the location of their goods.

31.

Changing consumer preferences in the context of logistics
digitalization
Reporting and notifications: Systems should provide detailed reports on the order fulfillment process,
including automatic status notifications. This not only increases customer confidence, but also reduces
the number of customer support calls.
Transport management systems (TMS): These systems help optimize routes and manage shipments,
which reduces delivery times and improves service levels.
Warehouse Management Systems (WMS): These solutions automate the processes of storage and
order processing, which also affects the speed of fulfillment.
Consumer behavior analysis: Collecting and analyzing data on customer preferences allows companies
to tailor their offerings and improve the quality of services.
Demand forecasting: Using machine learning algorithms to analyze historical data helps predict future
demand and optimize inventory.

32.

Transport management systems (TMS)

33.

Warehouse Management Systems (WMS)

34.

Warehouse Management Systems (WMS)

35.

BLOCKCHAIN AND IOT
Blockchain and the Internet of Things (IoT) are two transformative technologies that, when combined,
have the potential to revolutionize various industries by enhancing security, transparency, and
efficiency. Below is a detailed exploration of both technologies and their synergistic benefits.
Blockchain is a distributed ledger technology that allows multiple parties to maintain a shared
database in a secure and immutable manner. Each transaction or data entry is recorded in blocks,
which are linked together in a chronological chain.
Key Characteristics:
• Decentralization: No single entity controls the entire network; instead, data is replicated across
multiple nodes.
• Immutability: Once recorded, data cannot be altered or deleted, ensuring data integrity.
• Transparency: All participants in the network can access the same data, fostering trust among
parties.
• Security: Cryptographic techniques secure the data, making it resistant to tampering.

36.

• Carrier Performance Analysis: Evaluate carrier performance based on delivery times, costs, and
service quality to select the best partners.
Warehouse Management
• Layout Optimization: Use data on product movement and order frequency to redesign warehouse
layouts for better efficiency and reduced picking times.
• Real-Time Inventory Tracking: Implement RFID and IoT sensors to monitor inventory levels in real time,
allowing for better stock management.
Customer Experience Improvement
• Personalized Services: Analyze customer data to offer personalized delivery options, promotions, and
services, enhancing customer satisfaction and loyalty.
• Feedback Analysis: Utilize sentiment analysis on customer feedback to identify areas for improvement
in service delivery.

37.

BLOCKCHAIN

38.

BLOCKCHAIN AND IOT
IoT refers to the network of physical devices connected to the internet, enabling them to collect,
exchange, and analyze data. These devices can range from everyday objects like smart home
appliances to industrial equipment.
Key Characteristics:
• Interconnectivity: Devices communicate with each other and with centralized systems, enabling realtime data exchange.
• Automation: IoT enables automated decision-making based on the data collected from devices.
• Data Collection: IoT devices continuously generate vast amounts of data, which can provide valuable
insights into operations and user behavior.

39.

BLOCKCHAIN AND IOT
Synergies Between Blockchain and IoT
Combining blockchain and IoT can address many challenges associated with each technology and
create new opportunities:
Enhanced Security
• Secure Data Transmission: Blockchain can secure the data transmitted between IoT devices, reducing
the risk of cyberattacks. Each device can record its transactions on the blockchain, ensuring data
integrity.
• Authentication: Blockchain can provide a decentralized authentication mechanism for IoT devices,
ensuring that only authorized devices can communicate within the network.
Improved Data Integrity
• Immutable Records: Data generated by IoT devices can be stored on a blockchain, ensuring that it
remains unaltered. This is crucial for applications requiring high data integrity, such as supply chain
management and healthcare.
• Audit Trails: Blockchain provides a transparent and traceable record of all transactions, making it
easier to audit and verify data collected from IoT devices.

40.

IOT — Internet of Things

41.

The practice of using unmanned drones in the implementation of
delivery in supply chains
Unmanned aerial vehicles (UAVs) are becoming increasingly popular in the logistics and supply chain
industries, offering new solutions for the delivery of goods. Their use can improve efficiency, reduce
delivery times, and lower costs. Let's take a closer look at the practice of using drones in this area.
Urban delivery:
Micro logistics: Drones can deliver goods over short distances in urban areas, which is especially useful
for delivering groceries and small parcels.
Reducing congestion: Using drones helps avoid traffic jams and delays on the roads, ensuring faster
delivery.
Delivery to remote areas
Access to hard-to-reach places: Drones can deliver goods to areas that are difficult to reach by land
transport, such as mountainous or remote rural areas.
Emergency deliveries: In the event of a disaster or emergency, drones can quickly deliver medical
supplies, food, and other essential goods.

42.

The practice of using unmanned drones in the implementation of
delivery in supply chains
https://www.youtube.com/watch?v=1l-8NcbfJEs

43.

Logistics digitalization of the example of NVIDIA
https://www.youtube.com/watch?v=1l-8NcbfJEs

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Thank you for the attention!