Post on 21-May-2020
transcript
Technologies and Innovations that
are Transforming Supply Chains
Scott Sopher
Principal, Deloitte Consulting LLP
• Over 400 respondents from different
company types, industry sectors, and
levels
• Majority of participants (57%) are
executives holding the role of CEO,
Vice President, or General Manager
• Five supply chain realities and eight
technologies
• Identify trends and technologies
• Your future supply chain
2
Survey Overview
Intro to 2015 MHI Annual Report
Supply Chain Innovation: Making the Impossible Possible
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
MHI Study Summary:
Supply Chains Face Conflicting Demands to
Be Better, Faster, and Cheaper
• It’s all about the customer experience
• Alignment between supply chains
and customer needs is paramount
• Collaboration is crucial as
supply chain boundaries blur
• Traditional cost-cutting strategies will likely miss financial targets
• The workforce crisis is real and innovation only adds to the challenge
3
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
Adoption Levels for Eight Technologies Redefining the Future of
Supply Chains
4
1 2 3
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
Maturing Phase1
5
Companies deferring investment will likely struggle to keep up with customer
expectations for lower costs and improved service levels
Inventory and Network Optimization Cloud Computing and Storage
Maturing technologies include:
Sensors & Automatic Identification Robotics & Automation
What you should know:
• Significant level of adoption today (35%+)
• Moderate growth in adoption (~10-15% CAGR) over next 3-5 years
• Reached the tipping point of adoption with a wide variety of use cases and demonstrated
business value
• Maturing technologies can offer significant improvements in both efficiency and service,
which may quickly become industry standard as adoption levels are expected to approach 80-
90% by 2019
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
Growth Phase2
6
Early adopters may have an opportunity to get ahead of the competition through
early piloting and deployment
Predictive Analytics Wearable and Mobile Technology
Growth technologies include:
What you should know:
• Moderate levels of adoption today (20%+)
• Significant growth in adoption (20-25% CAGR) over next 3-5 years
• Approximately 1-2 years behind maturing technologies
• Applications and use cases are less common, creating more ambiguity around value and
requiring different investment criteria and risk tolerance
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
Predictive Analytics Overview
8
Predictive analytics is the application of advanced statistical analysis of structured and unstructured
data sources to identify patterns and predict future events or outcomes.
Reduce Machine Failure Rates Improve Responsiveness
Predictive analytics can be used in supply chain to…
Improve Inventory Management Sense Demand
Reduce Lead Time Variability Plan Reliable Transportation Networks
Underpinning Data
Systems & Services
IoT
Supply Chain
“Gateway”
RFID
Data AnalyticsERP / Big Data
Storage
Assembly Robots
Cloud Storage
Asset Sensors Mobile Devices Wearables Other
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
Applications of Predictive Analytics
9
Solution Area: Process OptimizationUtilized in-process data collected to dynamically determine
what final testing protocol is required for individual chips,
projecting savings of $30M in testing reduction
Solution Area: Asset ManagementDeveloped predictive failure model for municipal water system
taking into account wear drivers for specific material
types, extending asset life from average to
predicted useful life, saving $64M in operating
costs and reducing $75M in capex
Solution Area: Quality ImprovementDeveloped predictive models to estimate the
probability of product failure and key drivers of
failure based on manufacturing line, shift, batch size,
day and month, number of engineering changes, consumer
usage patterns, demographics, and water hardness ratings by
city. This analysis identified $16M to $28M in cost of quality
reductions.
Solution Area: Maintenance and RepairGE uses sensors in jet engines to collect data to
track engine performance and runs it though a
predictive analytics engine with historical data.
With predicative maintenance, GE is able to predict and
pinpoint engine wear, proactively identify maintenance needs,
and improve asset utilization. GE has translated their capability
into a new business model (Power-by-Hour)
Predictive
Analytics
Intel Corporation Water Utility
Small Appliance Manufacturer GE Aviation
Predictive analytics is being used across multiple industries to help drive significant
savings in the supply chain
Source:
Intel - http://newsroom.intel.com/community/apac_en/blog/2014/10/09/big-data-and-iot-in-manufacturing-in-everyday-life
Intel - http://www.informationweek.com/software/information-managemetn/intel-cuts-manufacturing-costs-with-big-data/d/d-id/1109111
Case Study: Reduce Service Parts Inventory and Increase
Operating Profit
10
Target
Key Challenges
• Lead time discrepancies between similar parts
from the same supplier
• High variability in transportation lead times
causing increased inventory in transit across
different locations
• High inventory requirements due to a complex
product portfolio
Improve service parts inventory by 40%
ApproachReduce service parts inventory by leveraging
companies diverse data sets, and applying
advanced analytics and data science
Parts Insight PlatformConsolidated a wide range of characteristics regarding each component
part (e.g. diameter, length, thickness, materials, etc.) and assigned
parameters to each characteristic. Combined these characteristics to
develop an integrated aftermarket parts management platform (Parts
Insights). The platform merged all aftermarket parts data for analysis to
reduce inventory costs
Reduce Service Parts Inventory and Increase Operating Profit
11
Re
sult
s
Data Sources Levers Impact
Parts analytics helped with identifying the seven levers that can achieve significant
inventory cost reductions
Wearables Overview
13
A growing set of wearable technology options can be deployed to address emerging supply chain and
manufacturing challenges
Increase Asset Efficiency
Reduce Risk and Improve Safety
Differentiate Product and Services
Wearables can be used in supply chain to…
Increase Resource Efficiency
Types of Wearables:
• Glasses and Headsets
• Watches and Wristbands
• Arm Bands
• Beacons
• Rings
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
Leveraging smart glasses requires a truly integrated system:
• Hardware devices
• Multiple users
• Systems integration
1
Valuable industrial applications exist when the stakes are high2
8
14
We Developed Two Fundamental Wearable Beliefs
Customer
Service
Warehouse
and
Logistics
Public
SectorRetail
Field
ServiceHealthcare
Hands-Free Contextual Information Is Critical to the Value
Proposition
15
8
An Example Use Case in Manufacturing/Warehousing Operations
16
Typical usage:
• High-value asset handling and monitoring
• Routing, tracking, expediting, and exception handling
• Receiving and cycle counts
• Custom order picking
Sample improvement metrics:
• Assembly time
• Labor productivity
• Lost inventory
• Defects or incorrect order %
Common Challenges
Scenario: Many support warehouse operations like pick and pack, complex
assembly to help boost productivity and reduce errors
Capabilities & Specifications
• Weight, comfort
• Manufacturing execution and
warehouse management
systems
• Camera resolution
Regulatory/Safety Concerns
• OSHA — industrial safety
• Prolonged user exposure
Business Case
• Significant improvement
required in low wage work
environments
Applications of Wearables Solutions
17
Solution Area: HVAC Maintenance Mitsubishi Electric implemented multiple 3-D maintenance
scenarios and instructions for HVAC contractors that can be
visualized directly through overlay on an existing unit
Solution Area: Field ServiceOver 30 Schlumberger employees are using smart glasses to
complete complex checklists and receive real-time intelligence
Solution Area: HealthcarePhilips is building new product concepts for
healthcare settings – e.g. surgical procedures where
doctors can monitor vital signs and consult via
telepresence with other doctors in the operating room
Many of the smart glasses that
could be used in supply chains
today are priced on par with hand-
held scanners, which cost several
thousand dollars each
Wearable
Technologies
Mitsubishi Electric Schlumberger
Phillips
Enterprise wearables are already being piloted across multiple industries and
demonstrating initial tangible benefits
Sources:
Mitsubishi - Augmented World Expo 2014; “Mitsubishi Electric MeView AR Enterprise App”
Philips - Accenture; Oct, 2014, “Philips collaborates with Accenture…”
Schlumberger - Motley Fool; April, 2014, “Google Glass Is Appearing…”
18
Demonstrated
Business CaseCapabilities and
Specifications
Regulator / Safety
ConcernsDevice Cost
Device
Competition
Device / Platform
Compatibility
Several Common Challenges to Wearables Adoption Will Likely
Be Overcome in the Next Few Years
Emerging Phase3
19
Companies should understand current and near-term applications in their industry
and the potential for disruption
3D Printing Driverless Vehicles and Drones
Emerging technologies include:
What you should know:
• Lower levels of adoption today (~10%)
• Accelerating growth
• 6+ years behind maturing technologies in expected adoption levels
• Current applications are more limited and tend to be more relevant to specific industries
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
3D Printing Overview
21
Electronic design file (.STL) of
object created using CAD or
scanner
Software slices model into cross-
sectional layers and sends file to
3DP
Following the design, the 3DP
layers raw material(s) until the final
object emerges
Final object is produced
without any waste
3D Printing, or Additive Manufacturing, is the process of creating an object from its 3D digital model
using one of many manufacturing techniques to build objects by adding material rather than
subtracting it
3D Printing can be used to….
Improve Quality Reduce Cost
Increase Flexibility
The Breakeven Point for 3DP vs. Traditional Manufacturing Is
Shifting Every Year
22
3D PrintingConventional Manufacturing
Material Costs
Tooling Costs
Processing
Costs
Processing
Costs
Post Processing
Costs
Post Processing
Costs
Logistics Costs
3D Printing
Can Reduce
Co
st P
er
Un
it
Units Manufactured
Greater
Lower
Low Volume
Breakeven
Quantity
3DP costs start lower
as no tooling is
required
Lower quantities – 3DP
cost advantage
Higher quantities
– conventional
manufacturing
cost advantage
High Volume
Source: Deloitte Review 3D Opportunity – Issue 14, June 2014
Potential Impacts of 3DP to Supply Chain and Product
23
Business Model
Evolution
� Transformed supply chain
� Redesigned parts
� Point of use manufacturing
High
Impact on
Product
High
Impact on
Supply
Chain
Low Impact
on Product
and Supply
Chain
Product Evolution
� Increased product
functionality
� Improved product
performance
� Improved quality
� Produce systems as single
components
Stasis� Replace conventional
manufacturing techniques
with 3D Printing
- Duplicate physical
characteristics
- Duplicate lifecycle
characteristics
- No impact to warranty
policy
Supply Chain Evolution� Increased accessibility
� Reduced barriers of entry
� Management of demand
uncertainty
� Reduced inventory
1
43
2
Pro
du
ct I
mp
act
Supply Chain Impact
Source: Deloitte Review 3D Opportunity – Issue 14, June 2014
The Evolution of 3DP Applications in Supply Chain
24
Innovation will drive 3DP adoption rates; however, as the market matures, there will likely be a shift
in the technology used as companies transition towards a focus on manufacturing
Time
Po
ten
tia
l Im
pa
ct o
n t
he
Ma
nu
fact
uri
ng
Pro
cess
Prototype
Production
Tooling
Production
Custom Medical
Devices
Weight
Reduction for
Aerospace Parts
Slow Moving
Service Part
Production
Production
Parts for Risk
Mitigation
Widespread
End-Use Part
Production
Existing Applications Future ApplicationsToday
Source: Deloitte Review 3D Opportunity – Issue 14, June 2014
Applications of 3D Printing
Solution Area: Production Cost SavingsReduced production costs 50% for aerospace components
while still maintaining functionality and performance by
deploying Electronic Beam Melting, a 3D printing
technology
Solution Area: Operation EfficienciesLeveraging laser sintering technology, Siemens is able to
create 80 specialized hearing aids in 4 hours; additionally, this
technology has eliminated inventory by storing patient
data digitally
Solution Area: Quality ImprovementBMW used AM in direct manufacturing to make
the hand tools used in testing and assembly. These
custom-designed hand tools have better ergonomic
design and are 72 percent lighter than traditional hand tools.
According to BMW, the customized tools helped save 58% in
overall costs and reduce project time by 92%
Solution Area: Maintenance and RepairDelphi used selective laser melting (SLM) to
make aluminum diesel pumps. Producing pumps
as a single piece helped Delphi avoid several post
processing steps, resulting in a final product that is less
prone to leakage and cost effective to produce
3D Printing
Lockheed Martin Siemens
BMW Delphi
Enterprise applications of 3D printing are already being piloted across multiple
industries and demonstrating initial benefits
Sources:
Lockheed Martin - http://www.rapidreadytech.com/wp-content/uploads/2014/05/redeye1.jpg
Siemens - DU Press article “3D opportunity for end-use products”
BMW & Delphi - http://dupress.com/articles/additive-manufacturing-3d-opportunity-in-automotive/
25
Amazon Patents 3D Printers on Delivery Trucks
26
Business Model Disruption
Reduction in Delivery TimesProduct can be produced closer to the customer reducing
lead times
Reduction in Inventory and Warehouse SpaceMinimal inventory is needed as products are printed on
demand
Reduced Transportation CostsProducts don’t need to be transported from suppliers and
are made in close proximity to customers
AmazonTechnology Used: Mobile 3D Printing
and Delivery
Amazon files patent for a method of 3D
printing on-demand within mobile
manufacturing hubs
Amazon - http://3dprint.com/46934/amazon-3d-printing-patent/
Driverless Vehicles and Drones Overview
28
Driverless vehicles and drones can be leveraged for streamlining the first and last mile of delivery and
gaining greater visibility
Reduce Cost
Sense Demand
Increase Visibility
Driverless Vehicles and Drones can be used in supply chain to…
Increase Safety
Reduce Stress
Drones
Driverless Vehicles
Stability Control Radar and
Ultrasonic Sensors
Electronic
Sensor
Vehicle-to-Infrastructure (V2I) Vehicle-to-Vehicle (V2V) Communications Technologies
RegulationsBattery Technology Airspace
Camera
Technology
3D Mapping
Technology
Source: 2015 MHI Annual Industry Report – Supply chain innovation – Making the impossible possible
How Are Companies Using Driverless Vehicles and Drones Today?
29
1 Consumer product delivery
Search, rescue and firefighting 3
2 Oil and gas field monitoring
MHI Study
Gartner: Predicts 2014: Global Logistics Differentiating for the Future, November 2013
Agriculture and crop management 4
Media and entertainment 5
Drones in Logistics
30
Within Facility
Surveillance
Rural Delivery
First and Last Mile
Observation Transportation
Source: DHL – UAV in Logistics Study - http://www.dhl.com/content/dam/downloads/g0/about_us/logistics_insights/DHL_TrendReport_UAV.pdf
Mining Company
Solution Area: Maintenance and RepairOne of the largest mining companies in the
world is now funding the globe’s largest non-
military robotics programs. It operates 40 autonomous
haul trucks (AHT) working at locations across Australia,
with plans to add 150 more. All trucks are controlled remotely
from as far as one thousand miles from the mines. To navigate,
the vehicles use a combination of sensors, radar and GPS
Applications of Driverless Vehicles
31
Solution Area: Commercial AutomotiveGoogle’s driverless cars have logged over a million accident-
free miles and are currently out on the streets of Mountain
View, California and Austin, Texas. Google forecasts 2017
as the commercial launch date
Solution Area: Shipping and TransportationDaimler AG demonstrated its driverless tractor trailer,
FutureTruck 2025, which navigates via sensor and camera
technology. Daimler plans to have the truck on the
road within a decade
Solution Area: Shipping and TransportationVolvo Trucks has been participating in the SARTRE
(Safe Road Trains for the Environment) project to
test vehicle platooning. In this system, a driver at the
head of a convoy of electronically-linked trucks drives the
entire line of vehicles, assisted by automated systems in each
vehicle that adjust for following distances and speed
Driverless
Vehicles
Google Daimler Trucks
Volvo Trucks
Driverless vehicles are impacting traditional transportation models with safer, more fuel
efficient vehicles
Source:
Google - http://www.forbes.com/sites/sarwantsingh/2015/05/19/move-aside-google-car-the-self-driving-truck-is-in-your-rear-view-mirror/
Daimler / Volvo - http://www.truckinginfo.com/article/story/2015/07/can-autonomous-trucks-solve-the-driver-shortage.aspx
8
Applications of Drones
32
DHL tested its drone technology, PaketKopter, in late 2014 with
deliveries of essentials (e.g., medications) to the German island of
Juist. DHL was the first major shipping company to use drones for
shipping
Solution Area: First & Last Mile Delivery
Solution Area: Logistics Yard Management
PINC Air follows a pre-programmed flight path to locate inventory both
inside and outside facilities. GPS, RFID, LIDAR, ultrasonic, and optical
sensors coupled with Real-Time Location System (RTLS) algorithms locate
assets and upload this information for analysis. PINC Air is being tested by
organizations including Daimler Trucks North America and Kenco Logistics
Drones are being used across multiple industries driving significant savings in the supply chain
DroneScan uses a drone and an integrated hardware, software, scanning, and
communications technology to provide robotic scanning solutions of high
shelves in large uniform warehouses. The drone flies up to the high shelves
and scans the barcodes on each item, as well as the barcode on the shelf.
This saves the time and effort of lifting a human up to the high shelves using
a forklift or reach truck, which can be as high as 8m
Solution Area: Inventory Management
DHL
Source:
PINC Air – Material provided by PINC air and approved for usage in this presentation http://www.pincsolutions.com/air
DHL - http://www.theguardian.com/technology/2014/sep/25/german-dhl-launches-first-commercial-drone-delivery-service
DroneScan – Material provided by DroneScan and approved for usage in this presentation http://www.dronescan.co/
A Brief Overview of PINC AIR Solution: Application for Yard
Management System
33
Source: PINC Air – Material provided by PINC air and approved for usage in this presentation
How Will These Technologies Affect Your Supply Chain?
34
Predictive
Analytics
Driverless
and
Drones
3D Printing
Wearables
UniqueValue
Proposition
Source:
http://www.forbes.com/sites/sarwantsingh/2015/08/03/uber-taxi-truck/
http://www.wsj.com/articles/ups-tests-a-3-d-printing-service-1442618648
http://blogs.wsj.com/cio/2015/05/26/3-d-printing-cloud-converge-in-new-business-services/
http://www.bizjournals.com/sanjose/news/2015/09/10/google-amazon-help-defeat-california-drone.html
http://www.dhl.com/en/press/releases/releases_2015/logistics/dhl_successfully_tests_augmented_reality_application_in_warehouse.html
http://www.techtimes.com/articles/91923/20151006/volvo-shows-off-xc90-self-driving-interface-as-autonomous-cars-all-set-to-hit-the-roads-in-2017.htm
http://www.logisticsmagazine.com.au/Features/Injecting-data-science-and-big-data-into-the-wirel
So What?
35
Companies that continue to rely on traditional supply
chain models will likely find it increasingly difficult to stay
competitive
These emerging technologies can enable improvements
to meet customer expectations for orders that are complete, accurate, and on-time
• Align with customer needs
• Determine where to invest
• Collaborate across blurring boundaries
• Invest in workforce hiring and training strategies
36
How Can You Make It Happen?
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