Framework for Physical Internet deployment in cities

Figures & data

Table 1. Benefits of PI.

Benefits of PI	Description
Increased resilience	Enhances supply chain resilience by allowing goods to be rerouted through various pathways, mitigating the impact of disruptions like natural disasters or geopolitical issues.
Energy conservation	Optimizes logistics processes, leading to energy conservation by reducing empty trips and minimizing congestion. Results in lower fuel consumption and overall energy usage.
Greenhouse gas reduction	Leads to lower greenhouse gas emissions through reduced energy consumption and use of more efficient transportation modes, helping mitigate transportation’s impact on climate change.
Optimizing logistics processes	Standardizes cargo units and promotes intermodal transportation, leveraging data-driven decision-making. Results in faster transit times, reduced handling costs, and improved efficiency.
Resource sharing and consolidation	Encourages collaboration and resource sharing, minimizing waste and inefficiencies. Enables sharing of transportation resources, warehouses, and distribution centers for more efficient asset utilization.
Enhanced efficiency	Aims to create an efficient, interconnected logistics network. Optimizes routes, removes bottlenecks, and reduces waiting times, ensuring swift, cost-effective goods movement.
Enhanced sustainability	Promotes sustainability by optimizing transportation resource use, reducing energy consumption, and minimizing environmental impact. Transforms traditional logistics into more sustainable, interconnected systems.

Source: Own elaboration based on Sternberg and Norrman (2017).

Figure 1. City logistics problems vs problems that can be solved by implementing of PI.

Source: Own elaboration based on Montreuil (2011).

Table 2. Motive for collaboration.

Motive for collaboration	Description
Cost pressure	Businesses focus on reducing logistics, storage, and handling costs for competitive advantage and efficient operations.
Logistics resource access/expansion	Gaining access to enhanced logistics resources and capabilities through network management and collaboration.
Competitive pressure	Adapting to changes in logistics due to competition, and forming collaborations to remain competitive.
Policies and regulations	Navigating regulatory guidelines to transition to greener transport activities and more flexible operations.
Know-how access	Accessing innovative technologies and knowledge in logistics processes for collaborative improvement.
Flexibility requirements	Increasing efficiency and flexibility in logistics operations like hub utilization and cargo transport.
Network/Market expansion and internationalization	Expanding business horizons to access new markets and resources, often internationally.
Integration and collaborative business strategy	Focusing on collaborative practices for integration in supply chains for competitive advantages like predictability and flexibility.
Innovation and business model development	Developing innovative solutions and business models for competitive advantage and customer-oriented services.

Source: Own work based on (Plasch et al., 2021).

Figure 2. Association between chosen keywords in the reviewed literature.

Source: Own elaboration made in VosViewer programme

Figure 3. Left: city transport and logistics service providers connected to a common operations and traffic management system; right: simplified operation scheme of a common PI system for a city.

Source: Own work

Table 3. The benefits of packaging standardization in transport (history vs future).

	Contenerization in 1960s	Modularization in 2030s
Efficiency and Speed	Containers standardized the size and shape of cargo units, allowing them to be easily moved between different modes of transportation – ships, trucks, and trains – without the need for repackaging, which streamlined the entire logistics chain, reducing handling time and enabling faster transit times.	Modular boxes standardized in size and design allow for seamless integration into various transportation modes, enabling quick and efficient movement of goods across different networks, which will optimize logistics processes and reduce delays, enhancing overall speed and efficiency.
Reduced Labor Costs	Containerization significantly reduced the labor required for loading, unloading, and transshipment as it allowed the mechanized handling of containers which sped up these processes and required fewer workers, leading to cost savings for companies.	The use of modular boxes automates loading, unloading, and transshipment processes, reducing the need for manual labor, which cuts down on labor requirements, resulting in significant cost savings.
Minimized Loss and Damage	Containers are designed to protect goods from the elements and physical damage during transit, which reduced the loss and damage of goods.	Modular boxes are engineered to protect goods from external factors, minimizing the risk of damage during transportation, which reduces losses caused by mishandling or exposure.
Intermodal Flexibility	Containers can seamlessly transition between different modes of transportation, enabling efficient intermodal transportation.	Modularization embraces intermodal flexibility by allowing standardized units to seamlessly transition between various transportation modes and hubs, which fosters a truly interconnected supply chain where goods can move seamlessly across different networks.
Global Trade Expansion	Containerization played a significant role in the globalization of trade; the standardized system allowed for efficient and cost-effective movement of goods across long distances, opening up new markets and trading routes.	The adoption of modularization enhances global trade by facilitating efficient movement of goods across borders and regions, as standardized modules provide a cohesive system that promotes seamless trade.
Economies of Scale	Containers allowed shipping companies to build larger, more efficient vessels, which led to economies of scale, ships could carry more cargo at a relatively lower cost per unit, further driving down transportation expenses.	The use of modular boxes enables efficient utilization of cargo space and allows for stacking and optimization within transportation vehicles, which results in reduced wasted space, enabling greater economies of scale and cost-efficient transportation.
Inventory Management	Containers facilitated better inventory management for businesses as the predictability of transit times and reduced risk of damage allowed for improved planning of stock levels and supply chains.	Modularization improves inventory management by providing greater visibility into the movement of goods; real-time tracking and data-sharing capabilities ensure precise inventory control, leading to better stock planning and supply chain management.
Environmental Impact	While containerization increased the overall efficiency of cargo transport, it also had environmental impacts as ships became more efficient due to larger container loads.	Modularization in PI promotes sustainability by increasing efficiency, reducing waste, conserving energy, and rationalizing operations and also by eliminating single-use packaging through the reusability of modular boxes.

Source: Own elaboration.

Figure 4. Paths for logistics development in the face of global challenges.

Source: Own elaboration

Figure 5. Key areas that should be covered in PI implementation.

Source: Own elaboration

Figure 6. General framework for Physical Internet adoption in city logistics operations.

Source: Own compilation

Figure 7. SULP preparation process.

Source (Aifandopoulou & Xenou, 2019), https://www.eltis.org/sites/default/files/sustainable_urban_logistics_planning_0.pdf, access: 20.08.2023.

Table 4. SULP possibilities for solving cities problems.

Goal	Solution	Methods
Air pollution reduction (Large numbers of delivery vehicles in cities contribute to air pollution, noise, and traffic congestion)	Proposing the use of low-emission and electric vehicles, supporting alternative fuels like natural gas or hydrogen.	Implementation of vehicle emission standards, promoting the use of electric charging infrastructure, limiting delivery hours to minimize these negative effects.
Energy efficiency - urban logistics planning allows for optimized delivery routes, leading to fuel and energy savings. technologies like GPS and intelligent fleet management systems.	Encouraging route optimization and the use of advanced technologies for planning routes efficiently.	Integrating route optimization software and GPS tracking systems. This can include route optimization, load optimization, delivery schedules, and advanced
Quality of life improvement: reduced traffic from delivery vehicles and decreased pollution contribute to improved quality of life for urban residents. Less noise and better air quality have a positive impact on people’s health and well-being.	Promoting reduced traffic, quieter streets, and cleaner air through sustainable logistics practices.	Implementing traffic reduction measures, investing in noise barriers, and monitoring air quality.
Avoiding congestion (Excessive delivery vehicles can lead to street congestion, hindering both deliveries and daily commutes.	Recommending delivery time restrictions and designated delivery zones.	Implementing time-based delivery windows and designating loading and unloading zones. SULPs assist in coordinating and scheduling deliveries to avoid excessive traffic.
Innovation incentives - Introducing sustainable urban logistics plans	Encouraging experimentation with autonomous delivery systems and promoting collaborative e-commerce platforms.	Establishing partnerships with tech companies and incentivizing pilot projects for innovative solutions. provides incentives for businesses to seek innovative solutions in transportation and delivery. This can lead to the development of new technologies like autonomous delivery vehicles or e-commerce platforms that unite suppliers.
Compliance with regulations - implementing SULPs can be a legal or regulatory requirement.	Ensuring that logistics practices align with existing regulations and standards.	Regular audits, reporting, and adherence to environmental regulations. Adopting sustainable logistics plans helps fulfill these requirements and avoid potential penalties.

Source: Own elaboration based on SULPiTER.

Figure 8. A general view for integrating SULP tool with proposed PI framework.

Source: Own compilation

Table 5. Future research proposals.

Future research direction	Description
Pilot Programs and Case Studies	Implementing pilot programs in various urban settings can provide valuable insights into the practical challenges and benefits of applying the PI framework in city logistics. Comparative case studies across different cities can offer a broader understanding of how local contexts influence the effectiveness of PI integration.
Policy and Governance Models	Investigating the development of effective governance models and policy frameworks that support the implementation of the PI in city logistics is crucial. This includes understanding the role of public-private partnerships, regulatory incentives, and the impact of policy on stakeholder collaboration.
Sustainability and Environmental Impact Analysis	Conducting in-depth studies on the environmental impact of PI implementation in city logistics, including assessments of carbon footprint reduction, energy efficiency, and resource utilization, is essential for validating the sustainability claims of the PI model.
Stakeholder Engagement and Collaboration Mechanisms	Future research should focus on identifying and overcoming barriers to stakeholder engagement in the PI framework. This includes studying the dynamics of collaboration among logistics providers, city planners, businesses, and residents, and developing strategies to enhance cooperative efforts.
Economic Impact Assessment	Understanding the economic implications of integrating PI into city logistics is critical. Future work should include cost-benefit analyses, the impact on local economies, and the potential for job creation or displacement.
Scalability and Adaptability	Research on how the PI framework can be scaled and adapted to different sizes of urban areas, from small towns to megacities, would be valuable. This includes exploring modular and flexible solutions that can be customized to meet diverse logistical needs.
Public Perception and Social Impact	Examining the social implications and public perception of implementing PI in urban logistics is important. This includes community acceptance, impact on traffic and public spaces, and the implications for urban living quality.

Source: Own elaboration.

Sternberg, H., & Norrman, A. (2017). The Physical Internet – review, analysis and future research agenda. International Journal of Physical Distribution & Logistics Management, 47(8), 736–762. https://doi.org/10.1108/IJPDLM-12-2016-0353

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Montreuil, B. (2011). Toward a Physical Internet: Meeting the global logistics sustainability grand challenge. Logistics Research, 3(2–3), 71–87. https://doi.org/10.1007/s12159-011-0045-x

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Plasch, M., Pfoser, S., Gerschberger, M., Gattringer, R., & Schauer, O. (2021). Why collaborate in a Physical Internet network?—motives and success factors. Journal of Business Logistics, 42(1), 120–143. https://doi.org/10.1111/jbl.12260

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Aifandopoulou, G., & Xenou, E. (2019). Topic guide for sustainable urban logistics planning. Retrieved August 20, 2023, from https://www.eltis.org/sites/default/files/sustainable_urban_logistics_planning_0.pdf

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