Automation, Digitisation & Process Improvement Benny Mantin - PowerPoint PPT Presentation

Automation, Digitisation & Process Improvement Benny Mantin Steffen Klosterhalfen

Luxembourg Centre for Logistics and Supply Chain Management • Partnership with the Massachusetts Institute of Technology Center for Transportation & Logistics • Our mission: Innovative research and teaching excellence with practical relevance

Luxembourg Centre for Logistics and Supply Chain Management Purchasing & Procurement Full-Time Master Programme § § Production & Operations Mgmt Part-Time Master Programme § § Logistics, Transportation Executive Education § § & Distribution Doctoral Education § Supply Chain Mgmt § Research Teaching Technology Innovation § International Trade & § Regulatory Dimensions Outreach § Dedicated Research Projects § Access to International Experts Through MIT’s Global SCALE Network § Networking Opportunities and Knowledge Exchange § Pool of First-Class Graduates § Opportunities for Master Thesis Projects

Automation, digitisation & process improvement Benny Mantin Steffen Klosterhalfen

Why invest in automation? • Reduce errors • Increase precision and consistency • Speed up processes, reduce noise • Cost savings and productivity gains • Empower employees • Harness new technologies • Keep in mind: Automation generally requires a stable and predictable environment

Warehouse automation kymx.cbslocal.com extremetech.com Storactlog.com

Rethink Processes Embracing automation Process redesign

Why invest in digitisation? • Reduce errors • Speed up processes, reduce noise • Cost savings and productivity gains • Empower employees • Harness new technologies • Most importantly: INFORMATION – Increase data accessibility – Data preservation – New insights – Volume, velocity, variety

Disney’s bracelet: MyMagic+ reedme.org

Rethink Processes Embracing digitisation Process redesign

Why digitise logistical processes? • Harness availability of data to predict demand, plan and optimise capacity • Share and collaborate with supply chain members • Increase JIT sourcing • Rethink inventories • Process and business models innovation

How to harness availability of data for making predictions Net sales and inventory cost 150 Net sales Inventory cost Composite Leading Indicator 125 (OECD) 100 75 50

Modeling approach > 5000 indicators Internal knowledge External market knowledge Historical sales data

Benefit from harnessing additional data 3-month ahead forecasts, chemical industry example with indicator without indicator MAPE = 8.2% MAPE = 3.2% Historical demand Forecast (with prediction interval 70%)

Get involved with the LCL … and explore the improvement potential that can be unleashed in a joint collaboration

Thank you for your attention! Lcl.uni.lu

Why invest in digitisation? • Harness new technologies % of respondents Source: Future of jobs survey. World Economic forum