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Digitalization enables networks of intelligent machines

Jan van der Velden | Brussels

06 September 2016

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The European materials handling industry

300,000people employed

€61bnproduction value

+€20bntrade balance

Conveyors for bulk handling

Cranes & lifting equipment

Intralogistic systems

Industrial trucks

Mobile elevating work platforms

Racking & shelving

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Media

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Company profile

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In a world of technology, a belief in people

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> More than 4,000 employees> Over 40 nationalities> 55% with university degree

5%

14%

15%

5%

10%8%

27%

16%

System design/salesengineering

Engineering

Software engineering

R&D

Logistics/manufacturing

Project management

Maintenance/services

Other

CY 2016 IT = 25%

CY 2020 IT = 35%

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Trends and challenges in logistics

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Globalization2.0• Localization of manufacturing

and products• International division of labor• Platform systems• Multi directional logistics

networks• Complexity of processes and

logistics structures

eCommerceand internet trade• disruptive transformation

of industries • Omnichannel systems• Atomization of the oders• Same day delivery • Regionalization of the

distribution structures

Volatility• Variation in the different

markets and industries• fast change of customer

behaviour and expactation• Interuption in the supply chain• Increasing dependencies

Digitalization of the global society• Industry 4.0• Internet of things • Cyber physical systems• new business models• Big Data• predictibility

Efficiency• Time• Costs• Resources

Permanent need to make

processescheaper, faster

and more efficient

Increasing complexity of business processes

Disruptionof business

models, business structures

and marktes

Managing theuncertainty

New business models and new

technologies

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Requirements for modern IT system in logistics

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> Increasing number of systems to integrate due to specialization of systems

> Managing overall processes and supply chains

> Easy and fast integration of IT systems

> Open system architectures

> EAI mechanisms

> Increasing efficiency

> Increasing overall transparency

> Managing big data

> Looking globally but acting locally

> Virtualization of processes

> What happens if…

> New and open system achitectures

> IT solutions must be easy to modify over the whole lifecycle

> Customization must be possible by third party (Vanderlande CC, partners or customers)

Added value for the business

Safe investment

> New man machine interface

> Self optimizing and adopting systems

> Plug and play systems

> Full transparency of processes and system status (everytime & everywhere)

> High level of abstraction

> Decission supporting systems

Managing the complexityMulti dimensional Integration in existing

IT enviroments and fast adaptionManaging overall processes along

the complete supply chainEver lasting flexibility and connectivity

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Ideal Family Holiday

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1 32 4

Day 1

Day 4

> Dusseldorf – Amsterdam

> Amsterdam – Dubai

> Dubai - Colombo

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Family Holiday in reality

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1 32 4

Day 1

PIR

> Dusseldorf – Amsterdam

> Flight cancelled

> 2 lost suitcases

> Amsterdam – London City

> London City – London Heathrow

3 4

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Family Holiday in reality

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1 2

Day 2

PIR

> London Heathrow - Dubai

> Suitcase arrival on day 3

3

4

> No info on suitcase

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Family Holiday in reality

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1 2

Day 3

> Suitcase 3 Düsseldorf - Amsterdam

> Amsterdam - Dubai

3

4

> No info on suitcase

PIR

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Family Holiday in reality

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1 2

Day 4

> Dubai - Colombo

3

4

> No info on suitcase

PIR

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Family Holiday in reality

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1 2

Day 7

> Suitcase 4 Düsseldorf - Amsterdam

3

4

> Amsterdam – London City

> London City - Frankfurt

> Frankfurt – Abu Dhabi

> Abu Dhabi - Colombo

4

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Data Ownership: Baggage item

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> Passenger

> Airline

> Airport

> IATA

> ??

> Ownership

> Right of use

> Accessibility

What about baggage data?Who interacts with bag?

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Business

Process

System

Vanderlande data hierarchy

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Business

Process

System

Vanderlande data hierarchy

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Business

Process

System

Vanderlande data hierarchy

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The data hierarchy in practice

At Vanderlande we want to act as a responsible suppliers, a.o. this means we want to continuously improve our products, process and solutions offered to our customers.

Data analysis is becoming a key enabler to do so and therefore we have derived internal rules on how to handlethe various types of data, e.g.

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System

Process

Business

Source

External systems, e.g. customer ERP

Vanderlande HLC system(s), e.g. MES systems

Vanderlande LLC system(s), e.g. PLC’s, drives, etc

Use case examples

1. TCO models2. Customised analysis

1. Throughput optimization2. Bottle neck analysis

1. R&D feedback loop2. Advanced maintenance

Rule

NOT collected, unless allowed by customer

Collected per default

Collected per default

Pre

req

uis

ites

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Where 2 worlds meet

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Industry 4.0 IT Physical world

Until 2000

Now

2020 - 2030

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The Landscape: the players

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IT

United States

Asia

Europe

SME

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European Research

Europe has still a very strong position, but more research is required to stay ahead:

> Standards are needed for a successful digitalization of intralogistics

> Big data, new algorithms

− Self learning machines

− Self adapting systems

− Assisting systems

> Collaborative systems, new way of interactions

− Cobots

− Virtual reality / augmented reality

− Security and legislation

− Effects on work place satisfaction

> Intralogistics systems in digital supply chains

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Legislation

> Data Ownership - Right of use

> Cyber security

> Privacy

Is current legislation sufficient?

Governments need to provide clear rules and boundaries so the industry can create winning products to stay number 1 in the global material handling market.

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