Digitalization as a driver for logistics service development Prof. - - PowerPoint PPT Presentation

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Digitalization as a driver for logistics service development Prof. - - PowerPoint PPT Presentation

Digitalization as a driver for logistics service development Prof. Mats Abrahamsson, Linkoping University Kenneth Verlage, PostNord Future lab Agenda Introduction: The different faces of logistics digitalization A live-case: How


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Digitalization as a driver for logistics service development

  • Prof. Mats Abrahamsson, Linköping University

Kenneth Verlage, PostNord Future lab

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Agenda

  • Introduction: The different faces of logistics

digitalization

  • A live-case: How PostNord’s e-tools have developed

from being hopelessly behind to market leading in two years

  • Group discussion on digitalization in urban

transports and the challenges for logistics companies

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Major trends effecting logistics development

Customer value

Potential lack of raw materials More turbulent and volatile markets More complex supply chains System knowledge and flow

  • ptimisation

Globalization and international competition IT/IS-development & Big data availability Environmental sustainability Urbanisation and aging population

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E-commerce will change future logistics services

  • The project ”Dragon Boat” or ” Global Supply Chain by

Amazon” – Move goods from middle east manufacturers to US- and European customers more efficiently – Heavy digitalization to bypass transportation- brokers and to buy space on trucks, planes and ships to reduced prices

  • ”Ease and Transparency” (same basic idea as in e-

commerce) – “One click-ship for seamless international trade and shipping” for Merchants and international wholesalers – Sellers will book directly with Amazon – not with DHL, UPS or Fedex

  • UPS, FedEx, DHL, PostNord and others will see a new

transport market emerging – Pressure on profit margins and with high service requirements

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Two faces of digitalization

Productivity

Industry 4.0 – Germany Smart Manufact. Leadership – USA Strategiska Innovationsprogr – SWE

  • Global competition in

manufacturing

  • Increase profitability in

established industry

  • Improve existing business models

Automotive & Mechanical Industry

Customer Value

Omni Channels Sustainable cities New Service Development

  • New business opportunities from

digitalisation

  • Growth in new and ”renewed”

companies

  • To define ”Disruptive business

models”

Entrepreneurs and Private Equity Funds

Focus Concepts Drivers Initiators

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Digitalization & Big Data in Logistics

  • Optimization of logistics systems

– Optimize transport productivity – financially and environmentally – Real time processing and route planning – faster or greener routes

  • Learn more about customers

– All customer touch points will create an opportunity for business intelligence, customers' response as well as customers' feedback. – Big Data provide good amount of insight about different situations

  • Synchronize and integrate with customer business (SCM)

– The logistics service providers has good insight into their customers

  • perations.

– Revealing supply chain risks and provides measures to mitigate the supply chain risks.

  • Monitoring global network of Information

– Alternative routes in global transportations – Real time re-routing to avoid risks and delay

  • Open access to customer’s transport needs

– Smarter consolidation of customers incoming goods

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Small differencies but huge efforts …..

Shipper Direct deliveries Deliveries via retailers E-commerce

Different ways of ordering Different delivery locations

Different ways to communicate

Multi channel strategy = Producing logistics services in different channels

Multiple distribution/marketing channels in parallell

Different customer segments

Shipper

Optional ways to place the order Optional delivery adress

Optional ways to communicate

Customer unique solutions

Omni channel strategy = A customer unique service independent the channel

One coherent system providing optional ways of delivery to the same price

Consolidation

  • f

information and goods

Direct deliveries Deliveries via retailers E-commerce One customer Different options

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What we know about the future

  • Competition will increase in most businesses and sectors
  • The number of competition parameters will increase

– Price, Quality, Environmental Sustainability, Delivery Service, Availability, etc.

  • Many of these are direct related to the logistics system
  • Digitalization is one of the major potentials in logistics development

– To be more efficient – To create customer value

  • Market volatility and turbulence makes it impossible to tell what kind of

digitalisation is right for the future

– Dynamic agile and flexible organizations will be crucial to realize the full potential of digitalization – There will be a lot of “Trial & Errors” in the development process

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The major challenge is organizational not digital

Information Sharing Resource Pooling Cross-Functional Activities Collaboration

+ +

New Technology Big Data Opportunities

>>

Competence Dynamic Organizations Realize the Potential

>>

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Digitalization tests almost every aspect of the long-established pattern of supply chain processes

Traditional urban freight models will be challenge by new logistics ideas driven by technological

  • pportunities, new customer demands and

entrepreneurial skills

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Case: PostNord Future Lab

How can a traditional logistics company apply to modern digitalization

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Digitalization as a driver for logistics service development

Kenneth Verlage

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Digitalization in a nutshell

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No longer competing with the usual suspects

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4

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We did this:

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6 insourced super smart development teams A forum where customer meets super smart coders Extreme business focus Extreme customer focus

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6

And new rules!

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2016-10-20 7 e-handel

”PostNord’s e-tools have gone from hopelessly behind to market leading in two years – we are impressed”

Nordic multinational retail company in August 2016

We got this:

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NCP – Nordic Customer Portal

2016-10-20 8

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Collect In Store

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Retail app serving the customer

2016-10-20 10

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Receiver app, Flexchange, digital locks, digital ID and more!

  • We fuel REAL innovation
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12 10/20/16

We created an engine for innovation

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13 10/20/16

And we have just started!

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Results from discussion

Two main topics:

  • Digitlization and Logistics Companies
  • Digitalization and Urban Transports
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Digitalization and Logistics Companies

  • Which are the biggest

improvement possibilities for logistics companies in terms

  • f digitalization?

– What are the major hurdles?

  • Logistics companies in

general are not fulfilling the expectations of today's connected consumers - what are the gaps?

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Digitalization and Urban Transports

  • What are the three best

digital ideas for Urban Transports?

  • Do you see any disruptive

technology emerging for Urban Transports?

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Which are the biggest improvement possibilities for logistics companies in terms of digitalization?

  • Even out the peaks in capacity
  • Integrate supply chain operators
  • One-click ship
  • Fill rate optimisation
  • How to make sense and use Big Data and turn it into value
  • Today sources of data is too fragmented – how to share

data between transport companies

  • Separation of information and physical flows
  • Access to more and better information to increase

productivity and market segmentation

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Logistics companies in general are not fulfilling the expectations of today's connected consumers - what are the gaps?

  • Created wrong expectations
  • Two way communication – not only SMS
  • Real time info, where is my parcel exactly, why is it

delayed, when will it arrive?

  • Too much focus on speed – too less on reliability
  • Predictability
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What are the three best digital ideas for Urban Transports?

  • Decoupling delivery from reception both for B2B and B2C
  • Bring the airport control tower model to urban freight
  • Electric bikes to bring home deliveries
  • Control systems allowing for keeping freight flows consolidated as

long time as possible

  • Using space capacity dynamically
  • App to aggregate deliveries from different retailers
  • Change location of delivery address
  • On-line, real time optimisation of freight planning
  • Air transports and pick-up on roof tops
  • Real time sharing of customer and goods location
  • Apartment boxes for both delivery and pick-up
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Do you see any disruptive technology emerging for Urban Transports?

  • Systems allowing for people to do home deliveries on

their way home

  • Circular economy
  • Showrooms
  • Mixed goods and passengers
  • Logistics as a service
  • App to outsource logistics tasks
  • 3D-printing to reduce amount of freight
  • Physical internet
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It is easier to copy a “unique” product than to copy a “unique Supply Chain