The Internet of Load Carriers

Design of a Cloud-based Service System for Smart and Connected Load Carriers

Martina Romer

, Johannes Zeiler

, Sebastian Meißner

and Johannes Fottner

Technology Centre for Production and Logistics Systems, Landshut University of Applied Sciences, Landshut, Germany

Chair of Material Handling, Material Flow, Logistics, Technical University of Munich, Munich, Germany

Keywords: Smart Logistics Systems, Modular Special Load Carriers, Cloud-based Service System, Cyber-physical

System, Internet of Things and Services.

Abstract: Nowadays, a main problem of special load carrier supply chains is the lack of transparency. This can lead to

under- or overstock as well as the loss of load carries. To address this problem, the present research proposes

the digitalization of the load carrier supply chain by equipping special load carries with sensor systems and

using the generated data to offer financial, special-load-carrier, and data-based services. Especially data-based

services are proposed to increase transparency and to enable companies to optimize their supply chain. Supply

chain digitalization by means of smart load carriers combined with new services within a cloud-based service

system can gain competitive advantages for involved companies, and enable new business models. Thus, the

proposed services can improve overall quality, save time, and reduce cost while increasing sustainability for

load carrier manufacturers and their customers.

1 INTRODUCTION

The increasing number of product variations as well

as the coordination of complex supply chains

combined with shorter product life cycles pose

significant challenges for manufacturing companies.

Therefore, the current research aligns with industry

activities focusing on the combination of the latest

technologies and web-based services to increase

transparency, efficiency, and flexibility of logistics

processes as well as to counteract increasing

complexity. These approaches are developed within

the scope of industry 4.0 (Kagermann et al., 2013)

(Gunnlaugsson et al., 2011). One of the main

problems of special load carrier supply chains is the

lack of transparency. Often, load carriers pass

undetected through the supply chain, which leads to

problems such as under- or overstock as well as the

loss of the load carries themselves. The digital

transformation of load carriers into cyber-physical

systems allows the collection of process relevant data,

which in turn allows for the provision of services

based on that very data (Prives et al., 2012). This

enables traditional load carrier manufacturers to

expand to new business fields and to transform their

traditional business model into an e-Business, by

offering new data-based services to optimize the

supply chain of their customers. This article provides

a conceptual design of a cloud-based service system

for smart and connected load carriers, which aims to

improve transparency and optimize the supply chain.

2 BACKGROUND AND

EXISTING SOLUTIONS

Load carriers are used for the transport of components

and products in value-adding networks. Special load

carriers are developed, and produced

in order to

accommodate the needs of specific transport goods

(Gudehus and Kotzab, 2012), e.g. their design is

tailored to exactly fit the dimensions and condition of

a door panel center console. Thus, the lifecycle of

specific load carriers is dependent on the production

cycle of their respective transport goods. The use of

special component load carriers is associated with

high costs for the companies. In particular, the

complexity of manufacturing, development, and

management processes of special load carriers incur

high costs for comparably short utilization cycles

(Kampker et al., 2015). Additionally, most process

steps are not automated and are therefore highly

susceptible to errors. Furthermore, the transparency

166

Romer, M., Zeiler, J., Meißner, S. and Fottner, J.

The Internet of Load Carriers - Design of a Cloud-based Service System for Smart and Connected Load Carriers.

DOI: 10.5220/0006855401660173

In Proceedings of the 15th International Joint Conference on e-Business and Telecommunications (ICETE 2018) - Volume 1: DCNET, ICE-B, OPTICS, SIGMAP and WINSYS, pages 166-173

ISBN: 978-989-758-319-3

of today's load carrier circulation within and between

companies is insufficient. Improving the transparency

of existing process structures requires a great deal of

manual effort. These challenges mainly affect the

automotive industry with its short-cycle product

changes, highly individualized products, and

vulnerable just-in-sequence logistics.

Load carriers are used in supply chain processes

among automotive suppliers, logistics service

providers, and Original Equipment Manufacturers

(OEM), for instance. In the past years, modularization

concepts have been developed in various research

projects in order to allow reuse.

Modularization concepts allow the disassembly of

load carriers into single models and the

reconfiguration to a different load carrier. These

modularisation concepts were evaluated in various

projects (Kampker et al., 2011); (Rosenthal, 2016)

and partly implemented in practice (Meißner, 2015).

Therefore, the reuse of single models for another use

cycle and the benefit of the easier exchange of

modules has been validated.

Further projects followed different approaches to

improve load carrier management through

technologies of the Internet of Things (IoT). So-

called smart load carriers and their management

processes were investigated in several projects. For

example, a temperature sensor was combined with

Radio Frequency Identification Systems (RFID) and

integrated into load carriers for monitoring the

ambient temperature. Sensor systems combined with

communication technologies such as Universal

Mobile Telecommunications System (UMTS) were

also implemented and studied (Seidler and

Konstantinos, 2015); (Wang et al., 2011). In another

project, intelligent load carriers for intralogistics have

been researched. These are capable of initiating and

controlling the entire order picking process

independently (Roidl et al., 2014). Additionally, they

automatically trigger replenishment processes

(Hoffmann, 2014). The research consortium

"FORFood" has developed an intelligent thermo-

container for food that enables efficient monitoring

and tracing within the food supply chain.

Identification, communication, and sensor

technologies have been integrated into the load

carriers, which allow for the acquisition of relevant

data (e. g. ambient and internal temperatures of the

container) as well as their automatic transmission to

IT systems and other process elements (Wang et al.,

2011).

In summary, isolated aspects of smart, modular

special load carriers have already been investigated,

but there is no sustainable overall system that

combines the technical dimension of a smart, modular

special load carrier (e. g. identification,

communication, sensor integration, and

reconfiguration) with organizational and economic

dimensions (e. g. cross-company platform, self-

regulating load carrier flows and suitable business

models including a cloud-based service-system). The

aim of the research project “iSLT.NET” is to fill this

gap. In addition to technological aspects such as the

design of computational components for smart,

modular special load carriers (iSLT) and its cloud-

based service system, this research project explores

the potential of load carriers and data-based services

for the partners in a supply chain.

The manufacturer-independent use of smart

special load carriers in an open network between the

load carrier manufacturer and its customers has not

yet been realized and thus the potential of a company-

wide service system has yet to be unlocked (Gebhardt

Logistics Solution GmbH, n.d.).

3 SPECIAL LOAD CARRIERS AS

A CYBER-PHYSICAL SYTEM

In order to implement a network of smart, modular

load carriers in the supply chain, it is necessary to

transform load carriers into cyber-physical systems.

Cyber-physical systems are smart systems that

include engineered interacting networks of physical

and computational components (Griffor et al., 2017).

Cyber-physical systems uses sensors to directly

capture, interpret and store physical data, which can

used as the basis for active or reactive interactions

(Geisberger and Broy, 2015). It is widely recognized

that cyber-physical systems have great potential to

enable innovative applications and impact multiple

economic sectors in the worldwide economy (Griffor

et al., 2017).

Figure 1 depicts three levels of a cyber-physical

system according to the concept of the internet of

things. In the lowest, the first level, conventional load

carriers are produced through the assembly of

standardized modules, until they are used in

equipping, transport and extraction processes

between OEM and supplier.

In the second level, load carriers are additionally

equipped with smart hardware components (e. g.

sensors and microprocessors), information and

communication technologies and are refine into

smart, networked products (Porter, 2014). As part of

the IoT, each individual physical load carrier has its

own identity, collects relevant data independently

The Internet of Load Carriers - Design of a Cloud-based Service System for Smart and Connected Load Carriers

167

Figure 1: Special load carrier in cyber-physical systems (based on Meißner and Romer, 2018).

within the supply chain, and is connected with other

logistical objects (Mattern and Floerkemeier, 2010).

For instance, the IoT components enable the iSLT to

continuously record current location data via Global

Positioning System (GPS), status data via vibration

sensors, and temperature data. In order to transmit the

collected data to other systems a rule-based

communication technology, such as Low Power Wide

Area Network (LPWAN), Global System for Mobile

Communications (GSM) or Bluetooth Low Energy

(BLE) is used. Thus, the communication technology

is adaptable to the existing infrastructure of the client.

Cloud systems systematically process the

quantities of generated data in the third level. The

collected data streams are combined, evaluated, and

made available to the user as software services via

web applications (web apps). The fusion of the

physical with the digital world creates a cyber-

physical system for load carrier management. With

the gain in transparency regarding the material flows

and automotive supply chain processes, customers

can be offered a wide range of new services via the

cloud-based service system for controlling and

optimizing their supply chain (Porter 2015).

This enables load carrier manufacturers to

generate an additional form of service-based revenue.

Especially data-based services are the trigger for

implementing new e-business models (Daniluk and

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168

Holtkamp, 2015). The smart special load carrier

creates completely new value-added offers by

combining functions of the physical load carrier with

product-related software services. The basis for the

implementation of data-based services is the

development of a cyber-physical system and the

systematic design of a modular and extendible cloud-

based service system in order to provide a wide range

of services. New challenges also arise with this

transformation. To ensure a stable and secure service

system, the system’s architecture as well as the smart

special load carriers have to promise resilience,

availability, security, safety and scalability. New

partners must be integrated in the supply chain, as

well as a concept to assign the newly created

responsibilities has to be established. The aim is to

ensure that the five characteristics of a trustworthy

system are well implemented for the new e-business

opportunity.

4 SERVICE SYSTEM DESIGN

FOR THE REALIZATION OF

PRODUCT PLATFORMS

The operator plays a central role in setting up and

managing the network's service system for smart,

modular special load carriers. Through its integrated

product platform, it offers physical iSLT as well as

data-based, load-carrier-based and financial services.

The services can be booked individually via a digital

marketplace. Data-based services of the smart,

modular special load carrier are accessible to the

customer via web applications (web apps) or through

IT interfaces with systems such as SAP. Figure 2

summarizes the iSLT's range of services. These go far

beyond the traditional four services of the load carrier

industry, namely repair, modification, maintenance,

and cleaning. Based on IoT technologies, innovative

financial and data-based services can be developed

specifically for the load carrier industry.

Financial services define different financing

strategies for special load carriers. In addition to the

classic financing model, which is the purchase of load

carriers, financial services include rental, full-service

leasing, and pay-per-use. In these cases, load carriers

are left to the customer for an agreed upon period of

time. Rental and full-service leasing pursue the goal

to convert the previous investments for the

procurement of load carriers into current rental or

leasing interest rates. In the case of a pay-per-use

model, the customer is only charged fees depending

on the real use of the load carriers, e. g. for the actual

cycles through which load carriers pass between

OEM and supplier. With the financial service

“repurchasing”, purchased special load carriers can

be sold to the operator after the end of use. One-off

investments can be compensated proportionately with

the residual value.

In addition to various financing models, the

service system also includes load-carrier-based

services, which are made possible in particular by

means of a modularization concept with

reconfiguration and standardization of individual

modules. The primary goals are to provide a load

carrier that meets specific customer requirements and

to ensure retained functionality of special load

carriers during usage within the supply chain.

In the configuration process, standardized

modules are assembled to a special load carrier in

accordance with customer requirements and then

delivered. Due the service “reconfiguration”

standardized modules of special load carriers can be

disassembled and exchanged for customers’ evolving

requirements.

Various services offer customers a flexible usage

cycle. Time and quantity flexibility enables

customers to use special load carriers in a timely and

demand-oriented manner. Special load carriers that

are no longer required before the end of the contract,

can be returned. If more load carriers are required

than agreed on due to unexpected demand, additional

units would be made available through “ad hoc

delivery” service in the short term.

Thus, it is necessary to reserve individual

modules.

At regular intervals, the condition of special load

carriers needs to be assessed in "maintenance" service

as a preventive measure and appropriate processing

measures have to be carried out. These include, for

example the exchange or oiling of hinges needed for

folding the special load carrier. This service can be

tracked and planned precisely by the cloud system.

The "cleaning" service – especially crucial for

inlays - prevents soiling of transported goods.

Damage to special load carriers detected during usage

can be repaired with the "repair" service. Supported

by the modular structure of the special load carrier,

spare parts can be ordered and defect modules can be

replaced more quickly and easily.

Data-based services are established on the

analysis of data, collected during the iSLT lifecycle.

A “configurable product model” supports load carrier

planners in designing iSLT. Using the web-based

product configurator, modules can be digitally

assembled according to the modular principle of the

load carrier. This simplifies and accelerates the deve-

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169

Figure 2: Range of services in the service system (Meißner and Romer, 2018).

lopment process of load carriers considerably.

By means of "order tracking", the progress of the

order is made transparent for customers. Customers

not only receive information regarding the general

status of their order from reception to delivery, but

also get online insight for the number of produced

load carrier.

The "load carrier management" controls the load

carrier cycles of customers across company

boundaries and manages the respective iSLT stocks.

By means of the "automated inventory transaction"

service, load carrier movements in companies can be

recorded automatically in goods receipt and goods

issue. Manual transactions in proprietary systems can

be replaced for OEM and supplier.

With the "circulation optimization", requirements

for special load carriers can be automatically

determined and planned in advance. On one hand,

load carrier planners can react with additional

procurement to avoid bottlenecks in their supply

chain. On the other hand, they can return load carriers

to reduce stocks within the supply chain.

In addition to the "identification and authenticity"

of each load carrier, locations of load carriers within

the production plants and on the transport route can

be identified through the “tracking” service. Quantity

and types of load carriers within a plant is transparent.

Depending on the technology used, load carriers can

be located with an accuracy of a few meters as well

as evaluated and analysed via "traceability".

Extensive searches in the plants as well as shrinkage

can thus be avoided.

The "humidity or temperature monitoring"

services provide users with information on the

ambient conditions of load carriers. Users can define

customized threshold values depending on

transportation requirements and be informed about

deviations by "fault reporting". If temperature

thresholds are exceeded during the use of load

carriers, a message is sent to the user in the form of a

"supply chain event". Therefore, users can react

directly and efficiently to impending problems. If

damage to the transport goods is suspected,

replacement production and delivery can be initiated

as a preventive measure in order to avoid bottlenecks

in production processes for critical delivery concepts

such as just-in-time delivery.

The "filling level monitoring" continuously

measures the filling level of a special load carrier.

Integrated cameras or infrared sensors recognize if

the load carrier is empty or still fully loaded. If goods

are left unintentionally in the load carrier during the

removal process on the production line, a message in

the form of a "supply chain event" warns the user

which enables immediate reaction. The “condition

monitoring" service records all condition data of

iSLT and evaluates them over specific periods of

time. Tilt, vibration or collisions can be measured

continuously via sensors. In the event of damage, the

user receives information about the state of load

carriers. “Fault reporting" can be used to initiate

quality assurance measures in the process. The

service is closely linked to the "damage tracking"

service. Here, defect patterns for load carriers can be

identified and repairs or changes to the configuration

can be planned and tracked.

Furthermore, automated rules can be defined in

the "Supply Chain Risk Management" service. E.g.,

if threshold values of load carriers within the supply

chain are exceeded during transportation, then

transport goods can be blocked and spare parts from

the supplier can be ordered. This reduces the risk of a

disruption of the supply chain or even a total

production line break-off. With the "Self-Control"

service, customer-specific data can be stored on the

devices of the special load carrier. For example, this

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can be used to decentralize communication between

smart objects and to provide necessary information

for process control.

5 CONCEPT OF THE SERVICE

SYSTEM IN A SUPPLY CHAIN

Customers can flexibly book or cancel services via

the cloud-based service system’s marketplace

throughout the productive operations. In order to be

able to provide such an extensive range of services,

every special load carrier is equipped with

an IoT-device, which consists of sensors as well as

components for communication and identification.

These components are customized to meet individual

demands as indicated by their booked services.

“Condition monitoring” and “humidity and

temperature monitoring” services are enabled in the

IoT-device by means of a GPS-module, sensors for

vibration, collision, and temperature as well as a

communication module for LPWAN. During use and

transportation within the supply chain, the device

transmits the location, temperature, humidity,

vibration, and collision information in predetermined

time intervals to field-gateways, which are installed

outdoor and in production plants within the

company’s manufacturing premises. Subsequently,

data is transferred to the central cloud where it is

processed and stored. The cloud constantly monitors

customized thresholds with the load carrier’s status

and location by using transmitted data provided by

the special load carriers. If a damage occurred to the

load carrier during full load transport to OEM, as

shown in Figure 3, the cloud system determines the

collision limit violation and generates actively a

warning as a “Supply Chain Event” to the user. The

active warning includes information about the type of

limit-violation, location, iSLT number, and transport

part number. The generated warning message by the

data-based service can be accessed via the web

platform or sent directly through an interface to the

company´s IT-systems (e.g. SAP or mobile app). By

using a central cloud system the warning message can

be sent to any mobile device all over the world, if web

access and a mobile app for smart load carriers is

available on the device. Based on the warning

message and the provided information, the user can

react quickly and reorder the damaged parts to

prevent a production break down. The user can also

trigger special processes for the damaged and fully

loaded iSLT. In this example, as soon as the load

carrier arrives, a quality check takes place followed

by the repacking and repair of the damaged load

carrier. This described workflow of the data-based

service “condition monitoring” within the service-

system is depicted in figure 3.

To guarantee data sovereignty and the security of

sensitive information, the required data access rights

for each service and company have been identified.

Accordingly, despite cross-company collection and

usage of data, confidentiality is ensured because each

supply-chain partner only has access to personally

relevant and individually authorized data.

Service packages, such as “automated inventory

transaction” require an additional interface with a

user´s productive systems in order to create real value

for the user. Therefore, interfaces between the cloud

system and the most common IT-systems (e.g., SAP)

have been identified, to guarantee real-time

communication and synchronization with production

systems. The data-based service “automated

inventory transaction” allows the automatic

identification of the number of iSLT as a delivery

arrives and therefore, the inventory can directly be

updated in the ERP-Systems of all members of the

supply chain. Furthermore, these interfaces allow for

load-carrier-based services (e.g., “ad hoc-delivery”)

and the related reordering of load carriers to match

the free capacities and physical resources of service

providers with the demand of the booked load-carrier-

based service. Consequently, an appointment

proposal can be created automatically.

Most of the load-carrier-based services require

intermediate locations, so called local hubs, which are

located close to the customers. Modules of the load

carrier and operating materials are stored in these

local hubs to ensure an immediate response to

customer requests. A reordering of iSLTs, which is

offered by the service “ad hoc-delivery”, requires the

storage of modules, inlays, and components of the

requested special load carrier in these local hubs.

Assembly service providers are responsible for the

disassembly and reassembly of load carrier modules

in accordance with the customer’s order. For this

purpose operating materials and workers are required

on-site for the assembly and quality control. As a

result of multiple storage, logistically complex

special transports can be reduced and the delivery of

reordered iSLTs can be guaranteed by logistics

service providers. In order to be able to manage those

local hubs, a network of service providers and

contract partners, who work closely together with the

manufacturer of special load carrier modules, is

required. Service providers for maintenance and

cleaning are necessary during the use cycle of load

carriers. For large customers a stationary, and for

small customers a temporary and mobile cleaning

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171

Figure 3: Process within the service system in case of a damage.

installation would be required. For non-reusable

modules, defective IoT hardware or heavily damaged

load carriers, when repair is uneconomical, the

operator commissions disposal service providers.

Financial service providers enable different billing

models. IoT hardware providers develop and produce

sensor modules for the load carriers and information

and communication infrastructure to be installed

within the users' operational supply chain. Based on

the programming of the software providers, the cloud

provider supplies the database, IT services, and

applications via network while considering access

rights and guaranteeing data security (Meißner und

Romer, 2018). The operator, in this case the

manufacturer, is responsible for the network and the

coordination between contract partners and allocates

the customers’ booked services (e.g., cleaning,

maintenance, and repair) based on free service

provider capacities. This matchmaking is supported

by the cloud system, which provides information

regarding the free capacities of service partners.

6 CONCLUSIONS

In the context of "Internet of load carriers", a cloud-

based service system is necessary to offer a large

number of new financial, load-carrier, and data-based

services. The present research proposes a concept of

a service-system, which aims to make supply chain

processes more transparent, sustainable, and cost

effective in the future. Modularity enables new

potentials created by load-carrier-based services and

facilitates the physical handling of the special load

carriers during their life cycles, but also requires new

infrastructure. Data-based services enhance

transparency of material flows and disruptions in the

supply chain, improve the management of load carrier

inventories across companies, and increase process

quality. For the realization of these services within

this network, the integration of new partners with

different key competences is necessary. Furthermore,

a cloud-based service system is required in order to

transform sensor data of load carriers into useful

supply chain data for customer services.

This research is the result of the joint project

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"iSLT.NET" of a load carrier manufacturer

(GEBHARDT Logistic Solutions GmbH), partners

from the automotive industry (DRÄXLMAIER

GROUP and BMW AG), and academic research

institutions (Fraunhofer-Center for Applied Research

on Supply Chain Services SCS, Chair of Materials

Handling Material Flow Logistics at the Technical

University of Munich, and the Technology Centre for

Production and Logistic Systems (TZ PULS) at

University of Applied Sciences Landshut). In the

upcoming project progression, smart and modular

special load carrier and its cloud-based service system

(including the system architecture) will be

successively detailed and prototypes are going to be

realized by the participating partners in order to

derive further improvements.

The research and development project

“iSLT.NET” was funded by the German Federal

Ministry for Economic Affairs and Energy (BMWi)

within the framework of the program "Platforms,

Additive Manufacturing, Imaging, Communication,

Engineering" (PAiCE; project #: 01MA17006F) and

supported by the Project Management Organization

German Aerospace Center (DLR). Further

information about the project can be found at

http://www.project-islt.net.

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