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Digital Transformation of Supply Chains

NRW.Invest

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Locations: New York, Bochum

Founded:2001

Industries:Apparel, Textiles, Shoes, Electronics, Food, Furniture, Toys, Bikes, Hardware

Some Facts & Figures about Setlog

December 7, 2017

80+ Countries online

100+ Loyal clients

45,000+ Users across the globe

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Where we are from

December 7, 2017

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What we do

December 7, 2017

Agencies

Supplier

Factories

Forwarder

Quality Control

Laboratories

Warehouses

Product Development

Sourcing

Order Management

Quality Assurance

Logistics

Compliance

Integration Gateway

Corporate Communication

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Some references

December 7, 2017

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Digital Transformation to Manage Supply Chains

• Technology – Enables Process of Change

– Is the Basis to transform linear Supply Chains and Infrastructures toDigital Supply Chain Networks

• Data– Open up Silos, share Information and Foster Creativity and Innovation

– Use Data to be Competitive

December 7, 2017

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Global Supply Chains – Complex and Interactive

AdditionalServices

Fluctuation

Collaboration Multi-/OmniChannel

Information flood

Short ProductLifecycle

Speed tomarket

Globali-zation

Sustaina-bility

SocialCompli-

ance

GreenProduction& Logistics

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The Transition of Industrial Revolutions

1800 1900 2000 Today

1784: First MechanicalLoom

1st Revolution:- Water and

Steam Power- Mechanical

ProductionFacilities

2nd Revolution:- Mass

Production- Electrical

Energy

1870: First Assembly Line

3rd Revolution:- IT Systems to

furtherautomateProduction

1969: FirstPLC

„Programmablelogic conroller“

4th Revolution:- Cyber-physical

Systems- Digital

Transformation

Source: DFKI 2011

December 7, 2017

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Industry 4.0 - The Internet of Things

December 7, 2017

Source: Keynote at Future Congress 2017 Prof. Dr. Dr. hc. Michael ten Hompel / acatech Study 2017


Did you know?

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Potential of Digital Transformation

Partner-Systems

API

Customer-Systems

API

Vertical Platforms

Agents

Vendors

Factories

Carriers

Monitoring Firms

Labs

DCs

December 7, 2017

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Challenges of Digital Transformation

• We already know that Processes are the Key, BUT…– Often Times As-Is seems to be good enough

– Communication Works, in Silos

– Individual Goals, individual IT Solutions

– Missing Mindset and Governance Prevents True Change

December 7, 2017

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• Common: Sole Focus on “Systems”

• Other Aspects are considered rudimentary or stay on the sidelineENTERPRISE

SYSTEMS

December 7, 2017

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Companies need to review all Aspects of Supply Chain Interaction

ENTERPRISE

THINGS

PLACES

PEOPLE

SYSTEMS

Customer

Employee

Customer‘sCustomer

ComponentSupplier

Logistics

Raw Material Supplier

Distributor

Retailer

December 7, 2017

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Success Factors

Parallel: Global Integration 1. Process Analysis – Stakeholder– Process Owner

2. Benchmarks

3. Process Improvement

4. IT Solutions

5. Benefit

1. Process Training

2. Manifestation

3. Resources

December 7, 2017

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IDS –Industrial Data Space

December 7, 2017

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Industrial Data Space

December 7, 2017

78Companies

5Task Forces

18Use-

Cases

1Ecosystem

=

Create Governance for standardized, global Data Exchange by Establishinga Reference Architecture for Digital Ecosystems

https://de.wikipedia.org/wiki/Datei:Logo_SICK_AG_2009.svg

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Industrial Data Space

December 7, 2017

User

Broker/App Store

Identity Manager

Clearing & Billing

Start FinishA1 Login

via Connector

C1 Process Data

C2 Criteriafulfilled?

A3 Activity?A2 Start System Usage

A3c Verify Data

A3a Download Data

A3b Upload Data

Data Subscr.

Data Publ.

Service Update

C5b Update Log

C4 Operationconsistent?

A4 Perform

Operation

B1 Provide Service

C4a Initiate BillingC3 Sent Error Notification

C6 Conduct Billing

Retry

A3d Search Data/ Store

Data Audit

✓

⨯

⨯

✓

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Supply Chains in a New Position

December 7, 2017

Production Supply Chain Management

Supply Chain Management

Human Being

Information

Product

Consumer

Virtual Real Time Model & Simulation

Planning (ad hoc)

IT

Value Added Architecture

Material

Service

Producer

Reality

Performance (ad hoc)

Digital Transformation

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The Century of Supply Chain Management

The 20th Century mobilized people.

The 21st Century mobilizes things.

“If we take our chances, this will become the century of Supply Chain Management.“*

December 7, 2017

*July 29, 2017 Prof. Dr. Dr. hc. Michael ten Hompel at the Official Opening of the Logistics Campus at the Fraunhofer Institute, Dortmund, Germany

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„ Great is the power of habit. It teaches us to bear fatigue and to despise wounds and pain.“

Marcus Tullius Cicero

December 7, 2017

“The hardest part of a successful digital transformation is the cultural piece.”

James Bilefield, Senior Advisor to McKinsey

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Bottom Line

• Holistic View at the entire Supply Chain Network

• Focus on Technology and Software is not sufficient

• Digital Transformation is not only the Utilization of Technology, but Global Change Management -> Mindset

• It‘s all about Processes!

December 7, 2017

©SetlogDecember 7, 2017

“If you digitize a crappyprocess, you get a crappy

digitized process“*

* Thorsten Dirks, CEO of Telefónica Germany AG

digital transformation of supply chainscarrollcomarketing.com/wp-content/uploads/2017/12/...dec 07,...

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