IKIGAI: Asia sets challenges for logistics innovation and Europe responds
The logistics sector faces major challenges: the now chronic driver shortage, the urgent demand for dedicated freight space—especially in complex contexts such as urban areas—and the difficulties rail freight encounters in meeting the demands of an increasingly demanding and “unpredictable” supply chain. In recent years, Europe and North America have recognized that to sustain economic growth, it is imperative to “do more with less”—optimizing available resources in the face of limited transport capacity and space. Although the vision of digital, integrated, collaborative, and automated logistics systems, known as the “Physical Internet”, originated in Western countries, Japan and China—until now—seemed to have accelerated the path toward its implementation. “Seemed”, because in early July, the European project IKIGAI was officially launched in Rome. Its ambition is to decode the real challenges in logistics towards scaling innovative solutions, giving significant momentum to the sector in terms of the European continent’s competitiveness.
The Revolutionary Concept of the Physical Internet
The Physical Internet (PI) is a revolutionary vision that aims to create a parallel between web data networks and the flow of goods along supply chains. With the PI, the logistics chain is fully automated, and goods move across complex networks using various standardized transport units, smart hubs, and real-time shared data. Maximizing operational efficiency and minimizing environmental impact are the two primary goals of the PI, making freight flows seamless, sustainable, and intelligent.
The Global Race for Innovation
Today, the realization of the PI has gained broad global consensus.
In Japan, the shortage of truck drivers and limited storage space have become critical obstacles to economic growth. In response to this issue, the Japanese government launched an urgent national strategy to implement the PI and fully digitize information, creating a data ecosystem to optimize transport and warehousing. A significant first step was requiring companies to appoint Chief Logistics Officers (CLOs). Within months, more than 23,000 logistics executives were tasked with accelerating digital collaboration across the supply chain. In addition, eighty manufacturing companies have already joined the initiative, sharing their data to drive greater efficiency.
Meanwhile, China aims to lead the global standardization of logistics innovation. It currently chairs an ISO committee dedicated to the topic, which will define the foundations and criteria for what qualifies as the “Physical Internet”. This strategic position places China at the forefront of the movement.
IKIGAI: Europe’s Coordinated Response
IKIGAI is Europe’s coordinated response to this global shift. Co-funded by the European Union, the project brings together leading partners from across the continent, with Italy playing a central role. FIT Consulting, a leading SME in the development of innovative measures and solutions in the industrial logistics sector, is the lead partner of the Consortium, which comprises over thirty leading partners from the industrial, academic, and associative sectors.
Over the next 42 months, IKIGAI will demonstrate innovative logistics solutions aimed at streamlining processes and procedures towards a supply chain built on the principles of the European Physical Internet. The solutions include digital matchmaking platforms to connect shippers, freight forwarders, and carriers, the creation of smart urban logistics hubs for zero-emission vehicles, a transparent emissions tracking system across supply chains, the development of universal-standard reusable modular containers, and the deployment of collaborative warehousing and last-mile delivery solutions. Key “pillar” innovations of the project are being implemented with the support of strategic partners responsible for their rollout.
GRUBER Logistics, a leading company in the logistics sector and a pioneer in industry innovation; GS1, an organization that develops and maintains the most widely used global standards for business communication; ALICE (Alliance for Logistics Innovation through Collaboration in Europe), the European technology platform for logistics that, with over 200 industry members, fosters innovation and collaboration in logistics and supply chains; CERTH, an organization specializing in technological innovation for research and development; SMART Freight Centre, an independent non-profit organization providing the global methodological foundation for calculating transport emissions; INLECOM, an Athens-based tech company strongly committed to research and development projects; PNO, a leading company in urban logistics planning and innovation; and ICCS, Institute of Communication and Computer Systems.
“While a race to modernize the logistics sector is underway, the IKIGAI project has already laid all its cards on the table to position Europe at the forefront of change and, above all, to transcend the concept of a global challenge by building collaborative bridges with ongoing initiatives across other continents,” explains Paola Cossu, Project Coordinator and CEO of FIT Consulting. Indeed, the meeting in Rome saw the direct participation of professionals from Japan and the United States, and ALICE, on behalf of the project, is now a member of the Chinese-led ISO committee for innovation in logistics.