Physical Internet: A solution for the Supply Chain disruptions during the COVID-19 pandemic
DOI:
https://doi.org/10.14513/actatechjaur.00579Keywords:
Supply Chain Management, Physical Internet, COVID-19, Supply Chain disruption, pandemicAbstract
Supply chain disruption is characterized by a significant decrease in the production or delivery of a supply chain, including events like fire, system downsizing, natural disasters and quality issues, unexpected surge incapacity, and pandemic disease COVID-19. This will lead to lower productivity, higher prices, increased consumer frustration, etc. Logistics activities are suspended due to COVID-19 by closing the borders between countries. For that reason, we will specify our research on the impact of this disease on the Supply Chain Management and to show up the important issues and how the digital solution like the Physical Internet could solve these disruptions. The Physical Internet is still an emerging phenomenon in which it is intended to replace the current logistics model by encompassing new technologies such as Artificial Intelligence, Big Data, the Internet of things, and others. This article aims to compose conceptual research to describe Supply Chain Management problems during the COVID-19 pandemic and to represent the physical internet as a solution for this disruption based on various journal articles, papers, websites, and managers' experiences. Further, this study helps to increase the understanding of scholars and practitioners on how the novel PI paradigm can be a solution to COVID-19-induced supply chain disruptions. Furthermore, the physical internet and other modern technologies in the business world are absolutely necessary and recommended, as these current issues now require quick decisions and up-to-date knowledge.
Downloads
References
Craighead, C. W., Blackhurst, J. et al., The severity of supply chain disruptions: design characteristics and mitigation capabilities. Decision Sciences 38 (1) (2007) pp. 131-156. doi: https://doi.org/10.1111/j.1540-5915.2007.00151.x
Ivanov, D., Das, A., Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: A research note. International Journal of Integrated Supply Management 13 (1) (2020) pp. 90-102. doi: https://doi.org/10.1504/IJISM.2020.107780
Queiroz, M. M., Ivanov, D. et al., Impacts of epidemic outbreaks on supply chains: mapping a research agenda amid the COVID-19 pandemic through a structured literature review. Annals of Operations Research (2020) pp. 1-38. doi: https://doi.org/10.1007/s10479-020-03685-7
Gurning, S., Cahoon, S., Analysis of multi-mitigation scenarios on maritime disruptions. Maritime Policy & Management 38 (3) (2011) pp. 251-268. doi: https://doi.org/10.1080/03088839.2011.572701
Nikolopoulos, K., Punia, S. et al., Forecasting and planning during a pandemic: COVID-19 growth rates, supply chain disruptions, and governmental decisions. European journal of operational research 290 (1) (2020) pp. 99-115. doi: https://doi.org/10.1016/j.ejor.2020.08.001
The world health organization [cited 2020-03-11] URL https://www.who.int/
OECD. Food Supply Chains and COVID-19: Impacts and Policy Lessons. Comparing Crises: Great Lockdown versus Great Recession, pp. 1-11. [cited 2020-06-02] URL http://www.oecd.org/coronavirus/policy-responses/food-supply-chains-and-covid-19-impacts-and-policy-lessons-71b57aea/
Govindan, K., Mina, H., Alavi, B., A decision support system for demand management in healthcare supply chains considering the epidemic outbreaks: A case study of coronavirus disease 2019 (COVID-19). Transportation Research Part E: Logistics and Transportation Review 138 (2020) 101967. doi: https://doi.org/10.1016/j.tre.2020.101967
UNAIDS, The impact of the COVID-19 response on the supply chain, availability and cost of generic antiretroviral medicines for HIV in low- and middle-income countries (1) (2020). URL https://www.unaids.org/sites/default/files/media_asset/covid19-supply-chain-availability-cost-generic-arv_en.pdf
Singh, S., Kumar, R. et al., Impact of COVID-19 on logistics systems and disruptions in food supply chain. International Journal of Production Research (2020) pp. 1-16. doi: https://doi.org/10.1080/00207543.2020.1792000
Montreuil, B., Meller, R. D., Ballot, E., Physical internet foundations. IFAC Proceedings Volumes 45 (6) (2012) pp. 26-30. doi: https://doi.org/10.3182/20120523-3-RO-2023.00444
Ian Twinn, Qureshi, N. et al., The Impact of COVID-19 on Logistics. International Finance Corporation (IFC), (2020-06-02) pp. 1–5. URL https://www.ifc.org/wps/wcm/connect/2d6ec419-41df-46c9-8b7b-96384cd36ab3/IFC-Covid19-Logistics-final_web.pdf?MOD=AJPERES&CVID=naqOED5
Choi, T. M., Innovative "bring-service-near-your-home" operations under Corona-virus (COVID-19/SARS-CoV-2) outbreak: Can logistics become the messiah?. Transportation Research Part E: Logistics and Transportation Review 140 (2020) 101961. doi: https://doi.org/10.1016/j.tre.2020.101961
Lin, Q., Zhao, S. et al., A conceptual model for the outbreak of Coronavirus disease 2019 (COVID-19) in Wuhan, China with individual reaction and governmental action. International Journal of Infectious Diseases 93 (2020) pp. 211-216. doi: https://doi.org/10.1016/j.ijid.2020.02.058.
Sarkis, J., Cohen, M. J. et al., A brave new world: lessons from the COVID-19 pandemic for transitioning to sustainable supply and production. Resources, Conservation, and Recycling 159 (2020) 104894. doi: https://doi.org/10.1016/j.resconrec.2020.104894.
Schmalz, F., The coronavirus outbreak is disrupting supply chains around the world—Here's how companies can adjust and prepare. Business Insider (2020-03-30). URL https://www.businessinsider.com/covid-19-disrupting-global-supply-chains-how-companies-can-react-2020-3
Main, A., Stephen, A. et al., COVID-19 Maintaining customer loyalty and trust during times of uncertainty. Deloitte (2020-03-30). URL https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/covid19/gx-coronavirus-customer-loyalty.pdf
Sherman, E., 94% of the Fortune 1000 are seeing coronavirus supply chain disruptions: Report. Fortune (2020-03-30). URL https://fortune.com/2020/02/21/fortune-1000-coronavirus-china-supply-chain-impact/
United Nations, A UN framework for the immediate socioeconomic response to COVID-19 (2020-04-19). URL https://unsdg.un.org/sites/default/files/2020-04/UN-Framework-for-the-immediate-socio-economic-response-to-COVID-19.pdf
FOX Business, 2020 Coronavirus causes $47B drop in world exports: UN (2020-03-04) URL https://www.foxbusiness.com/markets/coronavirus-causes-47-billion-drop-in-world-exports-un
Francis, C., Managing the impact of the coronavirus on supply chains. Pinsent Masons (2020-03-13). URL https://www.pinsentmasons.com/out-law/analysis/coronavirus-supply-chains
Gay, S. H., Adenäuer, M., Frezal, C., Potential macroeconomic impact of the Covid‐19 pandemic on food demand. EuroChoices 19 (3) (2020) pp. 40-41. doi: https://doi.org/10.1111/1746-692X.12271
Guan, D., Wang, D. et al., Global supply-chain effects of COVID-19 control measures. Nature Human Behaviour 4 (2020) pp. 577-587. URL https://doi.org/10.1038/s41562-020-0896-8
Arslan, A., Drehmann, M., Hofmann, B., Central bank bond purchases in emerging market economies BIS Bulletin. (20) (2020) p. 9. URL https://www.bis.org/publ/bisbull20.pdf
Tim Parsons, How Coronavirus will affect the global supply chain (2020-03-06). URL https://hub.jhu.edu/2020/03/06/covid-19-coronavirus-impacts-global-supply-chain/
The European Union ec.europa.eu (2020-09-13). URL https://ec.europa.eu/transport/coronavirus-response_en
Teleroute. Effects of the coronavirus COVID-19 on the transport sector (2020-03-12). URL https://teleroute.com/en-en/blog/article/effects-of-the-coronavirus-covid-19-on-the-transport-sector/
del Rio-Chanona, R. M., Mealy, P. et al., Supply and demand shocks in the COVID-19 pandemic: An industry and occupation perspective. Oxford Review of Economic Policy 36 (Supplement_1) (2020) S94-S137. doi: https://doi.org/10.1093/oxrep/graa033
Ostdick, N., 5 Primary Causes of Supply Chain Disruptions (2017-08-17) URL https://blog.flexis.com/5-primary-causes-of-supply-chain-disruptions
Duan, Y., Aloysius, J. A., Supply chain transparency and willingness-to-pay for refurbished products. The International Journal of Logistics Management 30 (3) (2019) pp. 797-820. doi: https://doi.org/10.1108/IJLM-01-2019-0025
Alicke, K., Azcue, X., Barriball, E., Open interactive popup Supply-chain recovery in coronavirus times—plan for now and the future. McKinsey & Company (2020-03-18). URL https://www.mckinsey.com/business-functions/operations/our-insights/supply-chain-recovery-in-coronavirus-times-plan-for-now-and-the-future
Jalbert, N., Coronavirus: Effective supply chain management during a crisis. Raymond Chabot Grant Thornton (2020-03-24). URL https://www.rcgt.com/en/insights/coronavirus-effective-supply-chain-management-during-crisis/
The Global Fund, COVID-19 Impact on Supply Chain Logistics: Assessment and Recommendations (2020). URL https://www.theglobalfund.org/media/9440/psm_covid-19impactonsupplychainlogistics_report_en.pdf
Betti, F., Ni, J., How China can rebuild global supply chain resilience after COVID-19. World Economic Forum (2020-04-05). URL https://www.weforum.org/agenda/2020/03/coronavirus-and-global-supply-chains/
The economist, The physical Internet (2006-06-17). URL https://www.economist.com/special-report/2006/06/17/the-physical-internet
Montreuil, B., Toward a Physical Internet: meeting the global logistics sustainability grand challenge. Logistics Research 3 (2-3) (2011) pp. 71-87. doi: https://doi.org/10.1007/s12159-011-0045-x
Ballot, E., Montreuil, B., Meller, D.R., “The network of logistics networks”, Paris, France: Direction de L’information Legale et Administrative (2014) p. 23. URL http://www.ladocumentationfrancaise.fr/catalogue/9782110098658/index.shtm
Montreuil, B., Ballot, E., Fontane, F., An open logistics interconnection model for the Physical Internet. IFAC Proceedings Volumes 45 (6) (2012) pp. 327-332. doi: https://doi.org/10.3182/20120523-3-RO-2023.00385
Sallez, Y., Pan, S. et al., On the activeness of intelligent Physical Internet containers. Computers in Industry 81 (2016) pp. 96-104. doi: https://doi.org/10.1016/j.compind.2015.12.006
Meyer, T., Kuhn, M., Hartmann, E., Blockchain technology enabling the Physical Internet: A synergetic application framework. Computers & Industrial Engineering 136 (2019) pp. 5-17. doi: https://doi.org/10.1016/j.cie.2019.07.006
Sarraj, R., Ballot, E. et al., Analogies between Internet network and logistics service networks: challenges involved in the interconnection. Journal of Intelligent Manufacturing 25 (6) (2014) pp. 1207-1219. doi: https://doi.org/10.1007/s10845-012-0697-7
Pan, S., Nigrelli, M. et al., Performance assessment of distributed inventory in Physical Internet. Proceedings of International Conference on Computers and Industrial Engineering, CIE (2013) pp. 178–192. URL https://hal.archives-ouvertes.fr/hal-00876280
Venkatadri, U., Krishna, K. S., Ülkü, M. A., On Physical Internet logistics: modeling the impact of consolidation on transportation and inventory costs. IEEE Transactions on Automation Science and Engineering 13 (4) (2016) pp. 1517-1527. doi: https://doi.org/10.1109/TASE.2016.2590823
Yang, Y., Pan, S., Ballot, E., A model to take advantage of Physical Internet for vendor inventory management. IFAC-PapersOnLine 48 (3) (2015) pp. 1990-1995. doi: https://doi.org/10.1016/j.ifacol.2015.06.380
Pan, S., Nigrelli, M. et al., Perspectives of inventory control models in the Physical Internet: A simulation study. Computers & Industrial Engineering 84 (2015) pp. 122-132. doi:https://doi.org/10.1016/j.cie.2014.11.027
Wang, J. Q., Fan, G. Q. et al., Research on initiative scheduling mode for a physical internet-based manufacturing system. The International Journal of Advanced Manufacturing Technology 84 (1-4) (2016) pp. 47-58. doi: https://doi.org/10.1007/s00170-015-7915-3
Manopiniwes, W., Irohara, T., Stochastic optimisation model for integrated decisions on relief supply chains: preparedness for disaster response. International Journal of Production Research 55 (4) (2017) pp. 979-996. doi: https://doi.org/10.1080/00207543.2016.1223379
Gontara, S., Boufaied, A., Korbaa, O., Routing the PI-Containers in the Physical Internet using the PI-BGP Protocol. In 2018 IEEE/ACS 15th International Conference on Computer Systems and Applications (AICCSA). IEEE Xplore (2018) pp. 1-8. doi: https://doi.org/10.1109/AICCSA.2018.8612885
Lin, Y. H., Meller, R. D. et al., A decomposition-based approach for the selection of standardized modular containers. International Journal of Production Research 52 (15) (2014) pp. 4660-4672. doi: https://doi.org/10.1080/00207543.2014.883468
Zhang, Y., Liu, S. et al. Smart box-enabled product–service system for cloud logistics. International Journal of Production Research 54 (22) (2016) pp. 6693-6706. doi: https://doi.org/10.1080/00207543.2015.1134840
Zhong, R. Y., Peng, Y. et al., Towards Physical Internet-enabled prefabricated housing construction in Hong Kong. IFAC-PapersOnLine 48 (3) (2015) pp. 1079-1086. doi: https://doi.org/10.1016/j.ifacol.2015.06.227
Montreuil, B., Meller, R. D., Ballot, E., Physical Internet Foundations Bureaux de Montréal : Bureaux de Québec. Cirrelt, 10 (2012). URL https://www.cirrelt.ca/DocumentsTravail/CIRRELT-FSA-2012-56.pdf
Darvish, M., Larrain, H., Coelho, L.C., A dynamic multi-plant lot-sizing and distribution problem. International Journal of Production Research 54 (22) (2016) pp. 6707-6717. doi: https://doi.org/10.1080/00207543.2016.1154623
Crainic, T. G., Montreuil, B., Physical internet enabled hyperconnected city logistics. Transportation Research Procedia 12 (Supplement C) (2016) pp. 383-398. doi: https://doi.org/10.1016/j.trpro.2016.02.074
Youssef A., Physical Internet: A solution for the logistics disruptions during the COVID-19 pandemic (2020-08-20). URL https://medium.com/@youssefag99b/physical-internet-a-solution-for-the-logistics-disruptions-during-the-covid-19-pandemic-2ee49d3757ae
Matusiewicz, M. Logistics of the Future—Physical Internet and Its Practicality. Transportation Journal 59 (2) (2020) pp. 200-214. doi: https://doi.org/10.5325/transportationj.59.2.0200
Plasch, M., Pfoser, S. et al., Why Collaborate in a Physical Internet Network? - Motives and Success Factors. Journal of Business Logistics 42 (1) (2021) pp. 120-143. doi: https://doi.org/10.1111/jbl.12260
Herrera, M. M., Orjuela-Castro, J., An Appraisal of Traceability Systems for Food Supply Chains in Colombia. International Journal on Food System Dynamics 12 (1) (2021) pp. 37-50. doi: http://dx.doi.org/10.18461/ijfsd.v12i1.74
Jeżewska-Zychowicz, M., Plichta, M., Królak, M., Consumers' Fears Regarding Food Availability and Purchasing Behaviors during the COVID-19 Pandemic: The Importance of Trust and Perceived Stress. Nutrients 12 (9) (2020) 2852. doi: https://doi.org/10.3390/nu12092852
Ho-Sam-Sooi, N., Pieters, W., Kroesen, M., Investigating the effect of security and privacy on IoT device purchase behaviour. Computers & Security 102 (2021) 102132. doi: https://doi.org/10.1016/j.cose.2020.102132
Dubey, A. D., Tripathi, S., Analysing the sentiments towards work-from-home experience during covid-19 pandemic. Journal of Innovation Management 8 (1) (2020) pp. 13-19. doi: https://doi.org/10.24840/2183-0606_008.001_0003
Atlam, H., Alenezi, A. et al., An overview of risk estimation techniques in risk-based access control for the internet of things. In Proceedings of the 2nd International Conference on Internet of Things, Big Data and Security – IoTBDS (2017) pp. 254-260. doi: https://doi.org/10.5220/0006292602540260
NatWest, Tech solutions for managing working capital (2019-05-23). URL https://natwestbusinesshub.com/articles/tech-solutions-for-managing-working-capital
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Acta Technica Jaurinensis
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
