Digitization’s Forces of Change - SAPICS · * Derived 1% from International Labour...
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Digitization’s Forces of Change IoT, DLT, AI and AV for your Supply Chain
Transcript of Digitization’s Forces of Change - SAPICS · * Derived 1% from International Labour...
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 [email protected]
Jan van Rooyen Strategic Solutions Lead
