Physical Internet: where we stand and why it will change global logistics
Introduction
The concept of the Physical Internet (PI) is proposed as a radical transformation of the ways in which goods are moved and managed globally. Inspired by the operating principles of the digital network, the PI aims to make logistics more efficient, sustainable, and interoperable through a modular and collaborative network.
In light of the growing needs for sustainability, traceability, and resilience of supply chains, the PI is configured as an emerging paradigm of strategic importance to face the challenges of the 21st century.
This contribution is based on the systematic analysis conducted by Maria Matusiewicz (Acta Logistica, 2024), who examined 74 scientific articles published between 2006 and 2023, with the aim of mapping the state of research, identifying recurring themes, and proposing future research directions.
What is the Physical Internet
The Physical Internet is based on four conceptual pillars:
- Modularity: physical standardization (e.g. PI-containers) to promote interoperability.
- Sharing: openness and collaboration among logistics chain stakeholders.
- Digitalization: use of enabling technologies (IoT, blockchain, AI).
- Sustainability: optimization of physical flows to minimize costs, waste, and environmental impact.
This vision aims to overcome the current fragmentation of supply chains, fostering the emergence of a global, hyperconnected, and adaptive logistics system.
State of Research: A Systematic Literature Review
Temporal Evolution
Until 2020, research on PI was predominantly conceptual. Starting from the COVID-19 pandemic, there has been a exponential increase in applied studies, driven by the urgency of rethinking supply chain resilience. Between 2020 and 2023, a peak of publications was recorded, especially in Europe and Asia.
Geographic Distribution
The countries with the greatest scientific involvement are:
- – France: main theoretical incubator of PI (MINES ParisTech, Montreuil et al.).
- – United States and China: focused on technological implementations and applications in complex contexts.
- – Canada, Germany, and the United Kingdom: significant contributions in terms of infrastructure, interoperability, and sustainability.
Multidisciplinarity
The PI is an interdisciplinary field par excellence:
- – Transport engineering and logistics (27.7%)
- – Computer science and data analytics (18.1%)
- – Economics and management (11.2%)
- – Social and environmental sciences (13.3%)
This heterogeneity reflects the complex nature of the PI, which requires integrated approaches among technical, economic, and regulatory domains.
Emerging Themes and Research Trends
1. Operational Efficiency and Sustainability
Numerous studies highlight how PI enables:
- – the reduction of empty transports (up to 40%)
- – the containment of energy costs
- – the increase in logistics flexibility also in urban areas (city logistics)
The work of Crainic and Montreuil (2016) proposes a model applicable to the urban context that improves distribution efficiency and reduces environmental impact.
2. Integration with Industry 4.0 Technologies
Among the enabling technologies:
- – IoT and Digital Twin for real-time simulation
- – Blockchain for information flow security
- – Smart Contracts for the automation of logistics transactions
- – AI and metaheuristic algorithms for cost and route optimization
Pan (2019) highlights the importance of Product-Service Systems (PSS) in the PI context, enabling a logistics-as-a-service model.
3. Pricing Models and Economic Optimization
Qiao et al. (2020) propose an approach based on dynamic pricing for LTL (Less-than-Truckload) transport, demonstrating how PI networks can maximize revenues through flexible adaptation of supply to demand.
4. Cooperation Among Logistics Actors
The PI presupposes a new cooperative mindset, overcoming competition among logistics operators. However, numerous studies still highlight cultural resistance linked to lack of trust, data opacity, and the absence of shared incentives.
5. Port and Urban Applications
In the port context, the PI promotes:
- – the standardization of information
- – the adoption of intelligent traceability systems
- – the integration of intermodal PI-hubs
Fahim et al. (2021) provide a mapping of critical areas in ports to support the evolution toward a PI-ready infrastructure.
Challenges and Future Perspectives
The full implementation of PI requires:
- – Definition of common international standards
- – Regulatory and legal framework
- – Infrastructure investments
- – Incentives for operator collaboration
- – Mitigation of cybersecurity risks
One of the less explored areas is the application of PI to passenger transport: although some studies mention the sharing of infrastructure and urban fleets, the systematic analysis reveals a significant gap in this field.
Conclusions
The Physical Internet is configured as a logistics paradigm of revolutionary potential, capable of promoting efficiency, transparency, and sustainability along the entire value chain. Data from the literature highlight a strong theoretical maturity and several ongoing application experiments, but also the need to address cultural, regulatory, and technological barriers.
The success of PI will depend on the cooperation between academia, industry, and institutions as well as the ability to build a shared, resilient, and scalable digital and physical infrastructure.
https://youtu.be/O-8OQZYqNi4
The logistics of the future will not be based on competition between actors but on the intelligent sharing of resources.
Jean-François Cordeau.
Department of Logistics and Operations Management – HEC Montréal
Recommended readings
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Matusiewicz, M. (2024). Physical Internet – Where are we at? A systematic literature review. Acta Logistica, 11(2), 299–316.
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Montreuil, B., Meller, R. D., & Ballot, E. (2012). Physical Internet foundations. IFAC Proceedings Volumes, 45(6), 26–30
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Crainic, T. G., & Montreuil, B. (2016). Physical Internet enabled hyperconnected city logistics. Transportation Research Procedia, 12, 383–398.
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Pan, S. (2019). Opportunities of product-service system in Physical Internet. Procedia CIRP, 83, 473–478.
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Qiao, B., Pan, S., & Ballot, E. (2020). Revenue optimization for LTL carriers in the Physical Internet: Dynamic pricing and request selection. Computers & Industrial Engineering, 139, 106159.
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Fahim, P. B. M., Rezaei, J., Jayaraman, R., Poulin, M., Montreuil, B., & Tavasszy, L. (2021). The Physical Internet and maritime ports: Ready for the future? IEEE Engineering Management Review, 49(4), 136–149.
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