Leading DigitalTuring Digital Technology into SCM Transformation

Technology is the biggest thing in

business today

• Do you want to hear the voice of your customers?

Social Media let you

• Do your people available and productive, no mater where

they are?they are?

Mobile computing makes that possible

• Want better forecast and decision in key areas?

Promise of Big Data (Analytic)

• Standard assumption - you have own servers, apps to use

Rise of cloud computing

Are you ready for-The second machine age -

Are you ready to be a-Digital Master-

• Digital master use technology better then their competitors.

• Digital masters are more profitable than their peers.

But what do Digital Masters do

differently?

• Digital masters see technology as a way to change,

size of investment is not important but the impact

How can you become a digital master?

• Digital master excel in two critical dimension:

The what of technology, which we call

digital capabilities

Dimension of Digital Mastery?

The how of leading change, which we call

leadership capabilities

• Each provides a partial advantage

• Taken together, they combine to give Digital Masters

Digital MastersFashionistasD

igit

al C

ap

ab

ilit

y

Four Levels of digital mastery

They buy every new thing

Lack strong digital leadership

Impedes unified view of operation

Exploiting digital advantage

Outstrip competitors in performance

Strong in both dimensions

Beginners Conservatives

Dig

ita

l C

ap

ab

ilit

y

Leadership Capability

Wait-and-see-strategy

Opportunity right for other

Regulations or privacy as excuse

Excess prudence prevents

Have digital leadership capability

Find it hard to mobilize management

DIGITAL MASTERS

FASHIONISTASAverage digital

Mastery

Travel and hospitality

Telecom

High Technology

Retail

Banking

Digital mastery by industry

Can you afford to wait?

BEGNNIERS CONSERVATIVES

Pharmaceuticals Consumer

Packaged

goods

Manufacturing

Insurance

Utility

Building Digital Capabilities

You can differentiate your company through

three broad categories of Digital Capability:

1. Customer experience1. Customer experience

2. Operational process and

3. Business models

The Promise of Industry 4.0

Blockchain in

Supply Chain Management

Why is blockchain relevant for supply chain?

Enhances visibility in supply chain- All are connected on a platform

Transparency in Blockchain helps reduce delays As each product can be tracked in real-time, the chances of misplacements are rare

Transparency and immutabilityEliminates frauds in supply chain

Minimizes costImproves inventory management, reduces delays from

paperwork, identifies issues faster

The problem in the sea food industry

As per a 2018 study, 59 percent

of the fish sold as “tuna” in

major U.S. cities was not

actually “tuna”

Illegal, unregulated, unreported

fishing and use of slave labor in

The problem in the sea food industry

fishing and use of slave labor in

sea food industry

Transshipment - suspicious

transactions in international

waters

A tuna transshipment in the Indian Ocean

Source: The New Food

Economy

Source: The New Food

Economy

Blockchain driven solution for traceability

Seafood is caught by fishermen and tagged with IOT

enabled sensors (RFID or QR Codes)

Sensors on the seafood transmit information in real time about

location, time, date, etc. to the blockchain

The blockchain company (e.g. Sawtooth, IBM Food Trust,

Provenance etc.) tracks possessions and any change in the

same, and all this again is stored in the ledger

The buyer can access all the information by scanning the

code or RFID or the tags Source: Blockchain Council

Smartphones can be used to scan fish products and access

information on their origins and journey to the supermarket shelf

Walmart is currently running a pilot project using

blockchain technology among the shrimp farmers in

Andhra Pradesh for ensuring traceability from India to US

Source: Business Standard Oct’19

IBM is helping WalMart to track

pork from China through the

supply chain into the stores

HEIJA

Provenance partnered with the

Co-Operation Group to track food

through the supply chain for

authenticity and sustainability

Other Block chain uses in supply chain. ……

HEIJAIBM is partnering with Hejia to

provide a supply chain financing

services for pharmaceutical

procurement

IBM is running a pilot with

Maersk to track freight

shipping on the blockchain.

The pilot includes the

shipper, buyer, customs,

and US Homeland Security

authenticity and sustainability

Provenance partnered

Martine Jarlgaard and

the Fashion Innovation

Agency to track

garments from raw

materials to finished

product

Traceability of coffee beans – where has the coffee on your dining table come from?

• Is the quality consistent?

• ?Ifinca – a blockchain company is connecting coffee

Coffee supply chain - issues

Ifinca – a blockchain company is connecting coffee

farmers to global markets with blockchain technology

Traceability – e.g. coffee from a farm in Colombia can

be traced to coffee being served in a café via mills,

exporters, importers etc.

Ifinca – all information on fingertips

QR code on coffee

pack can be

scanned to get all

details

The Internet of ThingsNext Evolution of Internet

Image courtesy: Wilgengebroed

Kevin Ashton in 1999

IoT enabled Supply Chain Management…

ERP System

User Queries

Inventory Data

From The ERP

System

Warehouse

Incoming Inventory

The ERP System

Queries IoT Cloud for

the Inventory data

IoT Cloudgathers warehouse

IoT Cloudgathers In-

Transit inventory

data from all

IoT Cloud

Aggregates

Inventory Data

Net Inventory DataNet Inventory Data is

displayed as a visual

Dashboard

Visual Dashboard

IoT Cloud gathers

inventory data

from goods receiving bay

Key Advantages

• Real time data to ensure actual inventory levels are

measured.

Inter-warehouse

In-Transit Inventory

Warehouse

Warehouse

Outgoing

Inventory

inventory data from

Warehouse

IoT Cloudgathers

dispatched

inventory data

from

Warehouse

data from all

warehouses measured.

• Alerts for mismatch between inventory data in ERP and

actual inventory

• More efficient restocking and avoidance of stock out losses

• Automated Navigation within Warehouse

• End-to-End visibility on inventory

Key Users

AI Application SCM

Visual Percept

ion Recording when goods are damaged

during transit and

notifying before

Problem Statement:

Transporting goods to and from

warehouses, factories safely and without

damage

Case 1: Using AI sensors to keep goods safe during delivery

AI has the potential to revolutionize

the risks that come with shipping

across large areas of land and sea

during supply chain distribution

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Advanced Image recogniti

on

notifying beforethey arrive

Shipping company A.P. Moller-Maersk has

partnered with Sea Machines Robotics, a

Boston-based company specializing in

autonomous tech to implement Sea Machines

Robotics’ new perceptual and situational

awareness AI technology on board one of

Maersk’s freight ships.

https://www.digitalauthority.me/resources/ai-supply-chain-management/

PlatooningPlatooning is a delivery method in which a

convoy of AI vehicles is led by a manned

vehicle (though it can also be comprised of

completely autonomous vehicles). These

vehicles, often trucks, are connected using

vehicle-to-vehicle communication that

controls the acceleration, breaking and

maneuvering of the vehicles at almost

instantaneous speeds.

Using predictive analysis and

disruption management can

ensure that all vehicles take the

26

Case 2: Reduce driver headcount & increases fuel efficiency with platooning

By using convoys of autonomous vehicles,

delivery can easily be optimized, and the

cost of multiple drivers cut dramatically.

ensure that all vehicles take the

most efficient route to destination

Slipstream effect: By staying close to one

another, the area of low-pressure created by the

vehicle in front reduces the amount of fuel

needed by the vehicle behind it

Toyota and Scania begin testing

platooning last year alongside the

Ministry of Transport and the Port

of Singapore Authority.

https://www.digitalauthority.me/resources/ai-supply-chain-management/

Challenges for retailer :

• Optimize localized vs. centralized warehouse storage of goods .

• Substantial local storage is expensive, on the other hand, relying mostly on centralized storage and running the risk of sold out items in the stores is another factor.

• Warehouse optimization is thus of

A Retailer in Norway and has individual stores and Main warehouse as indicated

OBJECTIVE :

To predict the number ofitems to be sold by 10shops during a particularperiod in future. Predictionis done to find out he sales

Case 3 : Demand forecasting using AI for Warehouse Storage optimization

27

• Warehouse optimization is thus of great importance, and having access to accurate sales forecasts would be extremely useful information.

is done to find out he salesfrom Oct 2018 to Dec2018

○ Artificial intelligence can be used for Warehouse optimization

using Machine learning for forecasting the sales figures.

○Using this technique on the entire data set , the retailers can plan

the production and logistics so as to meet the sales figure for its

various shops.

○ Source : https://medium.com/m/global-identity?redirectUrl

Data Source for Walmart

275 million weekly

11300 worldwide stores

10 worldwide stores

11300 worldwide

stores

300 Social Media

Mentions every

week

275 million weekly

customers

2.5 Petabyte

customer data

every day

BIG

DATA

Consumer behavior patterns vary in different locations under different weather conditions

Walmart used weather information� to predict consumer behavior???

� to predict sales pattern??? � to determine inventory???

WALMART CASE- PREDICTIVE ANALYTICS-WEATHERING DEMAND

https://youtu.be/PqY0npDpPPI

Anticipate Customer Needs

� Understand product demand � Supply of weather-sensitive items

� Access real-time traffic to understand how it affects deliveries

� Adjust staff to meet low or high customer requirements

� Anticipate potential transportation delays

� Optimize routes based on existing weather and traffic conditions

� Dynamically design a strategy for extreme weather conditions

Optimize Distribution and Logistics

Weather Alerts for Worker Safety Weather Data Packages to

reduce costs, improve safety, and drive revenue

Seasonal and Sub-seasonal Demand Forecasts

https://youtu.be/PqY0npDpPPI

Thank youThank youThank youThank you