TRENDS IN LOGISTICS SCLG Alex Kilic SICK UAE November 2016 - PowerPoint PPT Presentation

TRENDS IN LOGISTICS SCLG Alex Kilic SICK UAE November 2016

Industry characteristics Classification within Logistics Automation CEP Airport Retail / DC Ports Traffic Mobile Vehicles Storage & Conveyors Alex Kilic Nov 2016 2

Industry characteristics Task Supply Chain Factory Logistics Process Automation Automation Automation Point of sales Inbound Cargo - Air Production Logistics End of Line Packaging Sorting Hubs Cargo CEP/Postal Inbound Production Outbound Logistics CEP/Postal Logistics Cargo - Rail Sorting Hubs Cargo - Sea Alex Kilic Nov 2016 3

Industry characteristics Typical identification technologies Industry Postal Express Cargo Goods Sorted Letters Flats Parcels Parcels Flats Pallets Sorting Technologies Letter and/or Flat Linear-, Tilt Tray- or Cross Belt Floor Chain-, Roller Conveyors or Sorting Machines Sorter Forklift Trucks Box Handling RFID Laser Scanner High Speed Cam Auto Focus Camera Under Belt Fixed Focus Camera Alex Kilic Nov 2016 4

Industry characteristics Typical identification codes Industry Postal Express Cargo Supply Chain Goods Transported / Sorted Letters Flats Parcels Flats Parcels Pallets Goods/Parcels/Pallets … Goods Identification OCR / Code Labels OCR / Code Labels Code Labels (1D, 2D) / OCR Video Coding Future Volume Weight Measurement Future Future Enhanced Picture Processing Future Future RFID Alex Kilic Nov 2016 5

International standards for code labels Camera 1D, 2D, OCR, Image Capture Laser Scanner 1D Codes Codabar Data Matrix MaxiCode OCR, VC Code 39 Code 93 Image Capture PDF417 QR CODE Code 128 UPC/EAN 2-state & 4-state codes IL 2 of 5 Alex Kilic Nov 2016 6

Market Characteristics Growth Drivers Market Environment  Falling trade boarders and globalization of production  Faster and reliable distribution networks with international destinations  CEP services become an integral part of the customers’ supply chain  More customer oriented services – not only parcel shipments ▸ Ranging with high flexibility from documents, small packages, heavier goods and bulky freight shipments ▸ Infrastructures allowing next day deliveries ▸ Enhanced services like temperature controlled overnight products  Internet as the key driver for e-commerce ▸ Good internet infrastructures result in high portions of e-commerce business Markets with highest growth expectations: Eastern Europe, Russia, China, India Alex Kilic Nov 2016 7

Market Characteristics Growth Drivers – Infrastructure and Technology  Internet infrastructures and e-commerce  Investments in technology upgrades  Network extensions with focus investments in cost efficient technologies  High potential with postal organizations in countries with emerging CEP markets  Focus technologies: ▸ Volume and weight measurement systems ▸ Identification systems ▸ Efficiency improvement solutions (singulation verification, advanced maintenance, empty detection…)  International operators driving standardization Alex Kilic Nov 2016 8

Market Characteristics Growth Drivers: Main Cost Driver for Companies Maintenance 3% Comparison TOP3 Companies  Reliable products/systems 80%  Easy to replace % of total revenue  High MTR values  Performance measures 60% Transportation 21% Fuel 5% 40%  Optimized loading/routing and freight calculation 20% Labor 43% 0%  Efficiency by automation DHL UPS FedEx Top3  Efficiency by optimized and ergonomic processes  Easy identification, tracking and process CAPEX 4% transparency Alex Kilic Nov 2016 9

TRENDS MAJOR INDUSTRY TRENDS TODAY - Increased - Laser, camera transparency of RFID Globalization supply chain - Track and trace solutions - Standardization - Visualization tools of networks - Volume weight - Load measurement for “ GoGreen ” / all types of freight optimization - Systems for Sustainability process - Efficiency improvement improvement - Sensor solutions - Protect goods - Building and carrier and track Secure protection changes / - Track and trace incl. Supply Chain manipulations object classification and profiling during supply Alex Kilic Nov 2016 10

TRENDS THE FUTURE OF IDENTIFICATION Globalization Situation today:  Support all types of codes (1D and 2D barcodes, RFID)  Reliable detection and decoding of codes  Highest read rates  Best image quality for OCR processing and video coding  Maintenance free systems  Standard solutions / systems  Global support Physical  Low energy consumption Challenges Technology - Label quality Mix and - Color effects Interoperability - Reflections Track & Trace - Shadowing Transparency - … Alex Kilic Nov 2016 11

TRENDS “ GoGreen ” ENVIRONMENTAL INITIATIVES Sustainability  Alternative Fuel Vehicle Fleet Growth  Electronic Record Delivery is intended to save paper and supplies  Solar panel installation on large hub facilities  Lighting Retrofit Programs  Pollution-Free Packaging  Carbon-Neutral Shipping  Optimized Carrier Routing  Optimized Shipping Networks Volume, Weight  Low-Cost Shipping Service Alternatives Measurement Efficiency  Process improvements - Static Improvement - Dynamic Solutions - Regular - Preventive maintenance Industrial Sensor - Irregular Solutions - Double detection Alex Kilic Nov 2016 12

TRENDS Secure SECURE SUPPLY CHAIN Supply Chain : All participants are affected by the secure supply chain : It is necessary to take measure to avoid extra security checks and longer delivery times and higher delivery costs. Alex Kilic Nov 2016 13

TRENDS Secure SECURE SUPPLY CHAIN PROCESSES Supply Chain Building Surveillance: • Detect violation of protected areas Building Tracking & • Access control Tracking and Tracing Surveillance Tracing • System: Monitoring of doors, windows, gates, • Code identification (also fences, etc. in combination with volume and weight information) Object profiling: Secure air freight • Code identification in combination with X-rays • Detection of objects • Possibility to update • Detection of modified status information on objects (damage, Object Object RFID tags opened, manipulated, profiling inspection …) • Compare registered information with • Volume & weight reference data measurement • Damage, seal, special label or mark verification Alex Kilic Nov 2016 14

Alex Kilic Nov 2016

Mohamed Alabbar and Saudi Arabia's Public Investment Fund (PIF) are teaming up to launch a Middle Eastern e-commerce platform, the Dubai-based billionaire announced on Sunday. At the media launch at Dubai Opera, Alabbar described the new e-commerce venture - Noon.com - as “game changing". "We're turning the e-commerce environment in Middle East upside down," he said, "and then we're going to turn it upside down again in another six months." Alabbar revealed that Noon.com will have 20 million products on the platform on day one when it launches next January. The average shopping mall in Dubai has 1.5 million goods, he said. The warehouse facility in Dubai is the size of 60 football pitches, he added. Investors are initially contributing $1 billion to the project, which will be 50 percent owned by the Saudi sovereign wealth fund, Alabbar said. The other 50 percent will be owned by Alabbar and other regional investors. Alex Kilic Nov 2016

THANK YOU Alex Kilic SICK UAE