How Industry 4.0 is driving change in SCM/ Logistics LOGISTICS - - PowerPoint PPT Presentation
Why hy will wi ll dri drive ve How Industry 4.0 is driving change in SCM/ Logistics LOGISTICS AUTUMN CONFERENCE ON DIGITAL TRANSFORMATION Cluster for Logistics Luxembourg, Dec 2nd 2016 Dr.-Ing. Torsten Malle, AEB Industry 4.0 in SCM
Dr.-Ing. Torsten Mallée, AEB
LOGISTICS AUTUMN CONFERENCE ON DIGITAL TRANSFORMATION Cluster for Logistics – Luxembourg, Dec 2nd 2016
Why Industry 4.0 will drive change in SCM/ Logistics
1 Drivers for SCM/ Logistics 2 Industry 4.0 - processes and business models 3 Corporate organization and mindset
Industry 4.0 in SCM & Logistics
About AEB
Value chain
Global trade management Supply chain execution IT solutions: software and services
Global supply chain management One integrated solution From a single source
Industry 4.0 in SCM & Logistics
Why Industry 4.0 will drive change in SCM/ Logistics
1 Drivers for SCM/ Logistics 2 Industry 4.0 - processes and business models 3 Corporate organization and mindset
Industry 4.0 in SCM & Logistics
The evolution of logistics
Helmut Baumgarten, 2008
Supplier Manu- facturer Retail Customer Logistics Service Provider Customer Logistics Service Provider Logistics Service Provider Procurement Transport Handling Storage Production Transport Handling Storage Sales
1970s
Procurement Logistics Production Logistics Sales Supply Chain Management as cross-functional discipline Customer
1980s
Develop- ment Supply Production Distribution Recycling Order Management Customer Customer
1990s 2000s 2010s
Supply Chain Management integrates Value Chains into Global Networks
Industry 4.0 in SCM & Logistics
Technology
My simple view of what happens/ happened
1995 2000 2005 2010 2015 Analysis of customers
Single Channel Omni Channel Multi Channel Cross Channel
Global logisitcs
Digital activity level of customers
Web 1.0 Web 2.0 Web 3.0 Digitized Products Loyalty programs Wearables
Complexity and vulnerability of supply chains
New products and business models
E-Commerce Smartphones Autonomy Traditional Portals XaaS AR
Product life cycle decrease/ Product diversity increase
e.g. 10yrs Premium car Nightly update by Tesla Always online Customization&Involvement Ambition about delivery Price sensitivity Industry 4.0 in SCM & Logistics
Logistics – the challenges
Cost pressure Omni-Channel sales Increasing customer expectations Master data management Growing amount
variants Shorter product lifecycles Offshoring Risk Management High and low volume mix Customized deliveries Time-to-market pressure Volatility and complexity become a norm
Industry 4.0 in SCM & Logistics
Volatility and complexity are the enemies
Decentralization is a key
Complexity Volatility Decentralization
Industry 4.0 in SCM & Logistics
Volatility and complexity are the enemies
Industry 4.0/ IoT
What is the „Internet of Things“?
https://www.linkedin.com/pulse/internet-things-iot-dummies-rajat-kochhar
„Things that are embedded with sensors, connected to the internet and communicating with each other and us“
“Internet of Things“ Kevin Ashton, Auto-ID Center “Internet of Everything” Cisco “Industrial Internet” GE Software “Industrie 4.0” Bosch
Industry 4.0 in SCM & Logistics
Why Industry 4.0 will drive change in SCM/ Logistics
1 Drivers for SCM/ Logistics 2 Industry 4.0 - processes and business models 3 Corporate organization and mindset
Industry 4.0 in SCM & Logistics
IoT/ Industry 4.0 – basic process
Central assumed view of reality Central view of future Central decision Central action Current local reality Local action Central sensed view of reality Local view of future Local decision Sensed state Central view of future Central monitoring Rules and Guidelines
Central + IoT (IoT only sensing) Central without IoT Local + IoT (IoT smart, autonomous mechanism)
Industry 4.0 in SCM & Logistics
Source: Stefan Harrstedt, Alfa Laval
Industry 4.0 – the basic principle
Industry 4.0 in SCM & Logistics
New business models Develop products/ services, in- crease turnover, gain market share Better business processes Reduce costs, increase efficiency, raise productivity
Source: Crisp Research 2015
Growth predictions for the IoT (as of 2015)
Amount of Connected Devices by 2020 (Billions)
14.4 7.1 4.5 1.9
Cisco IDC Machina Gartner
Global Economic Value Added by 2020 ($Trillions)
Industry 4.0 in SCM & Logistics
Why IoT now?
Industry 4.0 in SCM & Logistics
IPv4 IPv6 232 2128
“Things“
Price of Sensors
$22.00 $1.40
Data rates Cloud Computing Internet Transit Price
$120 $0,63
Data Storage Costs
$11.00 $0.03
Source of all diagrams: 2015 Deloitte Development LLC
Computing Speed
29 28751
Will IoT take off quickly? A view from a sales perspective
„Coolness- Factor“ Real Benefits Performance Low(er) Price for components
Industry 4.0 in SCM & Logistics
The need to invest (the „pain“)
Leader? Laggard?
Why Industry 4.0 will drive change in SCM/ Logistics
1 Drivers for SCM/ Logistics 2 Industry 4.0 - processes and business models 3 Corporate organization and mindset
Industry 4.0 in SCM & Logistics
Obvious: using digital technology But it is more than buying new technology and hiring some geeks and nerds! A transformation of the entire company and its culture is required
The user/ customer comes first. If it doesn‘t work for him, it simply doesn‘t work Decentralization and empowerment of staff to make more own decisions – less hierarchy IT must become a core competence of every organizational unit Data (scientists) will become an important source for decision making
True digital companies were mostly „born like that“ - these are the challengers!
Getting more digital means changing
Industry 4.0 in SCM & Logistics
Industry 4.0 in SCM & Logistics