MIXMOVE[1] offers intelligent, horizontal collaboration between shipper, carrier, hub, distributor and the end customer. The aim is to increase load factors to boost efficiency and reduce costs, while at the same time creating more sustainable supply chains by making smart use of transport modes. The logistics process, taking place in terminals (nodes) is based on splitting logistics units down to parcel-level so that cross-docking can be used to produce logistics units with vastly improved load factors. Splitting up pallets down to parcel level ensures dynamically meeting customer needs. The consolidation/reconstruction process also makes decisions about how the logistics units are being moved from the terminal. Decisions about consolidation/reconstruction and use of transport services are based on a set of decision rules that can be changed at any time. Hence to solution offers resilience in case new barriers or disruptions should occur.
MIXMOVE is the result of iCargo project. iCargo aimed at improving logistics’ sustainability by using information technologies – reducing load factors was a natural target for the project. Among others, MARLO and DHL were involved in the consortium. They worked with 3M. 3M has a large number of products. By preparing customer orders at the factory or distribution centre, they needed significant space to “pick by order”, and the resulting pallets were not stackable, hence one level of pallets was possible in trucks, resulting in low load factors. Delaying preparation of orders to the terminal closest to the customer, meant shifting from pallets to parcels, filling transport units as much as possible, thus increasing the load factor from 45 to 90%. To enable this process to be implemented in all terminals handling 3M cargo, without changing physical infrastructure or the existing information systems, 3M needed an information system to manage this new logistics process. This solution was developed by MARLO in the framework of iCargo jointly with DHL and 3M.
Indeed, iCargo’s main outcome was shifting from local operations systems to a fully collaborative network, with decisions taken in real time using smart automation. iCargo thus developed a capability to mix, move and match cargo. The mechanism created could turn any terminal into a logistics node, very close to a PI node (this received an award in IPIC 2017).
Figure 1. The reconstruction/consolidation process
The success factors from iCargo were not only having the R&D expertise, but also an interested customer (3M) and a provider willing to exploit the project’s outcomes (MARLO). As part of this exploitation exercise, in 2017 MARLO decided to form a new company, MIXMOVE, and transferred all the related IPR to the new company. In 2019 they were awarded cool vendor in the supply chain by Gartner.
Figure 2. Inside the terminal
Currently MIXMOVE is transitioning its growth path, incorporating artificial intelligence for decision support and digital twins for interoperability. The aim is to ultimately become a facilitator of Physical Internet Services. It should be noted that even if the solution originally was developed in close collaboration with 3M, the solution is generic and can turn any terminal into a “network node”, without changes to physical or information infrastructure.
The MIXMOVE solution is currently operating in more than 30 terminals in Europe and the US. Approximately 150 million parcels have been mover using the solution.