how do i adapt my supply chain for the digital age?€¦ · to harness industry 4.0 capabilities,...

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How do I adapt my supply chain for the digital age?

2019 Product Support Manager (PSM) Workshop May 2019 Joint Base Andrews, Maryland

“We stand on the brink of a technological revolutionthat will fundamentally alter the way we live, work and relate to one another. In its scale,scope and complexity,the transformation will be unlike anythinghumankind hasexperienced before.”

Source: World Economic Forum

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Complex network of cause and effect

Plan Source Maintain DeliverSupply Chain (Sustainment) Framework

ReturnAcquisition decisions

Outcomes

Integrated productsupport elements

► PS Management► Manpower► Training► Supply Support► PHS&T► Maintenance► Design Interface► Sustaining Eng.► Tech Data► Computers► Facilities► Support Equipment

Cost metricsTOC inputTSCMC

Performance metrics

► RTAT► POF► DPA► Am► Ao input► Effectiveness► CWT

Courtesy NAVSEALOGCEN and Lone Star Aerospace - initiative to align acquisition and sustainment LPD-17

Subsequently, Supply Chains are no longer linear but complex eco-systems, requiring a fundamental reinvention of Supply Chain & Operations

Degree of Taylorism / distribution of value creating processes on multiple entities within partner ecosystem

Leve

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ion

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f clo

ud-b

ased

IT s

yste

msCloud-based

SW platforms

External Systems

Integration

On-Premise IT-Systems

InternalBusiness Functions

Collaboration with Partners

Service &Platform-based

Businesses

The old world: Value-creation within entities, on premise ITTraditionally, creators have been selling products and services through linear value chains. Companies were owning a dedicated part of the value chain, competing with competitors.

The new world: Ecosystems on cloud-enabled platformsDigital ecosystems do not work linearly, they are shaping market networks and enable hybrid forms of cooperation and competition: Coopetition. Ecosystems create and serve communities, and harness their creativity and intelligence. Entities may play multiple roles in an ecosystem.

CustomersSuppliers

Innovation & Product Lifecycle Management

ManufacturerOEM

Finance & Controlling

Sales & Marketing

Service &Spare Parts Management

Supply Chain & Operations

Pro-duction

Ware-housing

Logis-tics

Distri-bution

OrderMgmt

Plan-ning

QualityMgmt

Mainte-nance

Sourcing & Purchasing

Supplier

Customer

Customer

Retail/Consumer

Customer

Con-nector

SC asa Service

For-warder

Eng.Contractor

LogisticsContractor

Supplier

Platform-basedBusiness Model

SC PlanningSupplier Mgmt.

Risk Management

Coopetition

Retail/Consumer

OEM

ContractManufact.

EngineeringCollaboration

PLM in the Cloud

Co-Creation

Com-petitor

“Supply chain of the future”

To harness Industry 4.0 capabilities, we need to shift from ‘doing digital’ to ‘being digital’ by ensuring digital is embedded within the operating model

“Doing digital” “Establishing digital” “Being digital”

► Digital projects being undertaken in pockets across the organization

► Little strategic context

► Digital programs have been launched within the business

► Program Sponsorship at a functional level

► Challenging operating models to create new sources of improvements

► Industrializing innovation across the breadth of your operations

► Creating a culture that continuously iterates and improves your and your stakeholders’ experiences

► Moves with operational agility

Operating model“Digital DNA”

Don’t do digital, be digital …

Programs“Digital investment”

Projects“Digital focus”

Being digital involves exploiting multiple new technologies throughout the value chain

Understanding and insights from internal and external dataPredictive and proscriptive analytics delivering intelligence insight and supporting decision making

Production of manufactured objects by a process of material deposition. Additive manufacturing / 3D printing can be used for production of parts, machinery, prototypes and models

Advanced computing techniques based on cognitive computing and self learning programming techniques that transform how you engage with computers and how they deal with and respond to information and questions

Handheld devices and mobile access to information allows for a more distributed workforce, real time collaboration and reduction of information transfer.

Projection of information and 3d visuals superimposed in the user’s field of vision. For example providing maintenance technician’s with instructions and assembly guidance through smart glasses

Using the power of the internet to access services, resources, physical products and ideas. e.g. Crowdsourcing packaging design or analytics problems, or using sharing economy platforms to rent excess warehouse space

Internet of Things (IOT) and sensors describes the family and network of soft and hard sensors that are connected wirelessly to the internet via the cloud providing information back from the sensor network in real time

Robotic Process Automation is software that can be configured to automate repetitive, rule based tasks across multiple systems and email allowing automation of support processes (e.g. in Finance, HR, IT and Operations)

Abbreviation for Cloud computing, describing delivery of on demand and in memory computing resources via the internet including storage, internet access, software and hardware

Partially of fully self driving vehicles which includes all vehicle types from autonomous fork lift trucks for line side replenishment through to cars, trucks, boats and planes

Physical robots used in production process, such as automotive, now seen in more places including the homeCobots: collaborative robots with sensors allowing humans to work safely along side robots e.g. in factories

Blockchain is a self replicating distributed ledger where each node in the chain maintains a copy of all transactions in that chain therefore providing high levels of security and transaction integrity. Applications include finance and supply chain transactions

Analytics

AI

Augmented Reality

IoT & Sensors

Cloud

Robots and Cobots

3d Printing

RPA

Mobile

Blockchain

Autonomous Vehicles

Sharing Economy

What Industry 4.0 means for DoD Every solution can create a new set of opportunities and considerations

Opportunities:► Secure supply chain and material sources► Agile and responsive supply chain - faster supply chain response times► Better end-to-end supply chain integration and visibility► Shift in the utilization of human resources to higher capabilities and skillsets

Considerations:► DoD may lose its market attractiveness – appropriate standards and controls► DMSMS (Diminishing Manufacturing Sources and Material Shortages) ► Cyber vulnerabilities (software, IoT, Hardware, etc.)

Potential applications for DoD based on our commercial experience

Predictive Analytics and Machine Learning Condition based predictive forecasting demand for parts and products

Robotic Process AutomationMaintenance of asset bill of materials, parts consumption and work effort for asset maintenance

IoT & Blockchain Risk management of tier-n industrial supply base and threat to materials

Augmented Reality & Sensors Field and Base maintenance of asset with guidance for service

Sven [email protected]

Principal – Advisory ServicesGlobal Supply Chain Leader for Advanced Manfacturing & Automotive Sector

Basil F. Gray [email protected]

Advisory ServicesGovernment & Public Sector

Thank you!

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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how do i adapt my supply chain for the digital age?€¦ · to harness industry 4.0 capabilities,...

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