Digitization’s Forces of Change

IoT, DLT, AI and AV for your Supply Chain

1990 – Archie and Gopher 1993 2018 – Largest man made artefact in the world

Snake - 1998 2008 7+ million - 2017

Ringdroid Shopsavvy

a subsidiary of

Digitization’s forces of change

IoT: Internet of Things

DLT: Distributed Ledger Technologies

AI: Artificial Intelligence

AV: Autonomous Vehicles

AI AI DLT Very Big

Data IoT Big Data Digitization

Multiplier Effect of Digitization

CLOUD

EDGE COMPUTING

?

SUPER SENSE-MAKING

Data is the new oil

Speed of change is accelerating

Machine economy

Role of the human being?

Internet of Things

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My Supply Chain

Visibility

Demand-driven

Decision-making

Analytics

Continuous Improvement

Machine-to-Machine

Data Streams (Connect)

Payment Streams

(Negotiate & Communicate)

Autonomous & Intelligent

Agents (Compute)

5 million *

* Derived 1% from International Labour Organisation’s estimate of 500 million people in global supply chains

± 5 billion #

# 1% of all trucks, trailers, LDV’s, pallets, shipping containers, warehouses, HE, shipping vessels, airplanes, scanners & devices, systems

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Retail Store

• POS • Backdoor availability • GRN • Fridge temperatures • Inventory levels

Distribution Centre

• Resource consumption • Resource availability • Dock-door availability • Inventory levels • Yard locations • Temperature levels

Truck & Driver

Optimization

Process Automation

– Replenishment

– Negotiation & Prioritization

– Verification & Payment

Automated Contracting & Insurance

– By shipment

– Condition-based

– Automate claims

New opportunities

– Verification of sensors (oracles)

– Monetizing ‘sources of truth’

– Value-based commercial models

– Insurance for data providers

– Data marketplace

• Payment • Incentives

• Resource consumption • Location • Traffic • Weather • Temperature level • Inventory on-board • Working hours • Availability • Working hours

Optimization

Automation

– Replenishment

– Negotiation & Prioritization

– Verification & Payment

Automated Contracting & Insurance

– By shipment

– Condition-based

– Automate claims

New opportunities

– Verification of sensors (oracles)

– Monetizing ‘sources of truth’

– Value-based commercial models

– Insurance for data providers

– Data marketplace

Challenges

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Centralized, server/client paradigm to authenticate, authorize and connect different nodes in a network

Standards / Protocols: message, radio, integration

Cost of sensors

EDGE COMPUTING BLOCK CHAIN

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1 mm

Processor > 200,000 transistors

SRAM memory

PV cell

LED & Photo Detector communications

< 10c

“tamper-proof digital fingerprints...that can extend the blockchain into the physical world…built into a product, and used to authenticate its origin and contents, ensuring that it matches the blockchain record”

Distributed Ledger Technologies

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Digital contracting brings business to machines!

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Digital

Contracts between protagonists along the Supply Chain are automated via Smart Contracts

Intelligent

Generated contract data enables better decisions and predictions supported by AI

Autonomous

Machines become autonomous contractors and provide contract conditions independently

Manual

Humans negotiate and enforce contracts manually

2018 2020 2025

A protocol for supply chain processes?

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Real-world example

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BUYER

Credit Score Data Insurer Track & Trace

Carrier // FF Shipper

Welcome to the +D ecosystem

Data Provider

App / API Marketplace

Off-Chain Data

Trade Finance

Data

Auditor Consignee

Carrier / Forwarder

Shipper

3rd party

Context Data

Transactions

Insurer

Protocol

Smart Contracts

Distributed Ledger

Validator

Contracts

Tracking Data (IoT Data)

Public Authorities

Info

rma

tio

n

Sys

tem

s

Registry

An open platform powered by an open source transaction protocol for the logistics industry

Artificial Intelligence

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Predict Influence

Next year’s fashion colours?

When will a supplier fail?

Impact of external influences?

Bottom-line impact of supply chain

decisions?

Sequence of client orders?

How expensive is a product

perceived to be?

Which clients are going to pay

late?

Fear of missing out: illusion of

scarcity

Buying patterns: illusion of choice

Brand positioning: public opinion

Menial or routine jobs:

– Finding patterns

– Repetitive physical and mental tasks

– Complex analytics and calculations

– Personal assistants

Unsupervised Learning Algorithms

Predictive clustering models

Quick identification of a new

client’s buying patterns and

expected profitability

Predict consumer demand

Across a multi-party network: learn

and automatically apply best

inventory policies, forecasting

methods, buying patterns and

allocation methods

Hackernoon: https://hackernoon.com/the-ai-hierarchy-of-needs-18f111fcc007

Autonomous Vehicles

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Two drone-based warehouse logistics POCs

– Autonomous (DE)

– Partial-autonomy (SA)

Stock counting

Drone

• 210 scans per hour

• Productivity Gain ≈ 10

• Cost per Scan = R3.24

• ‘Value Gain’ ≈ 4

Conventional

• 15 – 22 scans per hour

• Cost per Scan = R13.25

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Lessons Learned

Technology needs to mature: • Full autonomy + integrated

to WMS • Battery life

• Low temperature proofed

Other ‘smart systems’ overtake usability of flying drones inside a

warehouse: • Smart shelving • Video analytics

Current drone-based technology cannot count/verify at a level smaller than HU / pallet position

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2019 2020 - 2025

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Impact on Logistics Value Chain

• Transport cost reduction 20% - 30%

• Long-distance platooning

• Last-mile delivery 100% emission-free

• Technology companies likely to occupy large parts of entire logistics chain

• Vehicle OEM move into “services”

Event-to-Data Data-to-Insight Insight-to-Action

Generate Data Capture

Data Transmit

Data Store &

Manage Data Integrate

Data Analytics Integrate Solution

Adapt Operating Model

Asset Data

Movement Data

Cargo Data

Hardware Providers Data Carriers Solution Providers

https://www.daimler.com/innovation/case/connectivity/connected-trucks.html https://www.fleetboard.info/

Data is the new oil! Since 2013 Daimler has been collecting asset and movement data via more than 300 sensors on each truck. Logistics solutions enabled are: • Order Management • Route Planning • Execution Management • Already integrating with ERP and WMS systems

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Thank you!

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Florian Seffert Head of Global Innovation florian.seffert@imperiallogistics.com

Jan van Rooyen Strategic Solutions Lead

jvrooyen@resolvesp.com