EMBRACING COMPLEXITY IN GLOBAL SUPPLY CHAINS GLOBAL SUPPLY CHAIN - - PowerPoint PPT Presentation

EMBRACING COMPLEXITY IN GLOBAL SUPPLY CHAINS

GLOBAL SUPPLY CHAIN & LOGISTICS SUMMIT T I M B R O W N M A N A G I N G D I R E C TO R S U P P LY C H A I N & LO G I S T I C S I N S T I T U T E

Our Fundamental Pillars SUPPLY CHAIN & LOGISTICS INSTITUTE

Industry Project Support

 Sponsored Research Contracts  Donation-Supported Projects  Capstone & Class Projects

 PhD Projects  MS Analytics, MS SCE – Capstones  BSIE – Senior Design  Graduate Class Projects

WORLD POPULATION GROWTH (UN)

GLOBAL URBAN POPULATION GROWTH

FUNDAMENTAL CHANGE IN COMMERCE

• Diminishing role of retail stores
• Delivery of product directly to consumers
• Product “definition” includes a service element
• When can I get it?
• Last mile logistics
• Increased complexity!

U.S. E-COMMERCE SALES AS % OF RETAIL SALES

THE AMAZON EFFECT

RAPID FULFILLMENT: SUPPLY CHAIN IMPACT

• More, smaller DCs (multi-channel facilities),

closer to population centers

• Loss of economies of scale => higher total

inventory

• Urban inventory => higher holding costs
• Rapid fulfillment => decrease in efficiency
• Real-time congestion information =>

increased efficiency

• Historic customer data =>

anticipatory/predictive logistics => increased efficiency

• Larger carbon footprint

DATA SCIENCES TRENDS Advances in Computing (Hardware)

• Extreme performance via GPU computing
• Very small and inexpensive

Advances in Algorithms (Software)

• New generation of Machine Learning

algorithms

• Deep Learning and Reinforcement Learning

Advances in Sensor Technology (Data)

• High-performance and

inexpensive sensors

• Large amounts of data

CONVERGENCE OF THREE KEY ENABLERS

Courtesy Benoit Montreuil

ADDITIVE MANUFACTURING

3dprint.com hackedgadgets.com www.shellypalmer.com

• Easy to distribute, near-point-of-use
• Inbound Materials Logistics is critical

MetalFab1 3D Printer: 1.1 M€

PROXIMITY PRINTING OF PARTS ON DEMAND

Courtesy Benoit Montreuil

AUTONOMOUS TRANSPORTATION

PUSH TOWARD DRIVERLESS VEHICLES AND MOBILE ROBOTS Delivery Droids & Drones

theloadstar.co.uk

Autonomous Cars & Delivery Vehicles Autonomous Trucks, Platoons/Convoys

Courtesy Benoit Montreuil

INTRALOGISTICS AUTOMATION & ROBOTICS TRENDS

FROM HARD STORAGE/RETRIEVAL AUTOMATION TO SMART. MOBILE & SCALABLE FULFILLMENT

Mobile robots Human robot interfaces Collaborative robots Robot-to-human & automated

• rder fulfillment

Voice & Light Picking Voice recognition Human augmentation

Robotic order sequencing & unitizing

Courtesy Benoit Montreuil

BLOCKCHAIN IN THE SUPPLY CHAIN

REVERSE SUPPLY CHAINS, Issues and Analysis, Edited by Surendra M. Gupta

HARSH CLAIM

The way physical objects are moved, stored, realized, supplied and used throughout the world is economically, environmentally and socially inefficient and unsustainable

Lifestyle E-Commerce World Trade

Courtesy Benoit Montreuil

• Open market goods transport, storage, realization,

processing

• “Black box” modular containers: transport handling &

packaging

• New generation handling, transportation and storage
• Protocols for seamless open asset sharing &

consolidation

• Critical mass: vast community of users
• Service provider certification and ratings-by-users
• Continuous tracking & monitoring
• Smart, fact-based proactive, distributed decisions

PHYSICAL INTERNET CONCEPT

By Benoit Montreuil & Russ Meller

ORDER-OF-MAGNITUDE IMPROVEMENTS

Sea shipping evolution

• ver 50 years

Handling cost / 14 Maritime trip cost / 4.5 Trucking cost / 1.5

Without containers With containers

Original drawing by Benoit Montreuil & Eric Ballot 2014-09-13

ENCAPSULATING GOODS

Original drawing by Benoit Montreuil & Eric Ballot 2014-09-13

Protect the encapsulated d objects

CONTAINERS AT ALL SCALES Transport Containers

Modular fit in π-certified vehicles

Handling Containers π-Boxes

Modular fit in transport containers

Packaging Containers π-Packs

Modular fit in handling containers

Montreuil B.. E. Ballot. W. Tremblay (2015). Modular Design of Physical Internet Transport. Handling and Packaging Containers. Progress in Material Handling Research Vol. 13. Ed. J. Smith et al.. MHI. Charlotte. NC. USA. to appear.

12m 6m 4.8m 3.6m 2.4m 1.2m 1.2m 0.8m 0.6m 0.4m 0.3m 0.2m 0.1m 1.2m 0.6m 0.48m 0.36m 0.24m 0.12m

HYPERCONNECTED LOGISTICS FACILITIES

New generation of logistics facilities enabling seamless, fast, cheap, safe, reliable, distributed, multimodal transport and deployment of π-containers across the Physical Internet

Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2014). Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub, p. 379-431; Ballot, E., B. Montreuil & C. Thivierge (2014). Functional Design of Physical Internet Facilities: A Road-Rail Hub, p. 28-61; In Progress in Material Handling Research Vol. 12, Ed. B. Montreuil, A. Carrano, K. Gue, R. de Koster, M. Ogle & J. Smith, MHI, Charlotte, NC, USA.

Québec Montréal Alexandria Bay, US border Syracuse Buffalo Cleveland Columbus Indianapolis St-Louis Springfield Tulsa Oklahoma City Amarillo Albuquerque Flagstaff Needles Barstow Los Angeles

20 20-401 81 90 90 71 70 70 44 44 44 40 40 40 40 40 15-10

Illustrated through semi-trailer transport from Québec City to Los Angeles

HYPERCONNECTING TRANSPORTATION

Distance travelled one-way: 5030 km 5030 km Drivers: 1 17 Trucks: 1 17 Trailer: 1 1 One-way driving time (h): 48 51+ Return driving time (h): 48+ 51+ Total time at transit points (h): 9 Total trailer trip time from Quebec to LA (h): 120 60+ Total trailer trip time from LA to Quebec (h):120+ 60+ Total trailer round trip time (h): 240+ 120+ Average driving time per driver (h): 96+ 6 Average trip time per driver (h): 240+ 6.5

Current P2P Proposed Inter- connected

Courtesy Benoit Montreuil

HYPERCONNECTED CROWDSOURCED DELIVERY

HYPERCONNECTED CROWDSOURCED DELIVERY

Having people carry modular containers Using public transit. bicycles. cars. vans… in town or across regions

Exploiting smartphone–based apps Pickup packs at hub near departure Deliver them at hub near arrival, making money Others carry them further toward destination Expanding for freight way beyond current capabilities of Uber for people

THANK YOU

timbrown@gatech.edu