PRESENTATION TITLE

Cindy Goodman – AT&T, Business Development

David Kalan – RM2, SVP of Marketing and Business

Development

Why You Need IoT

in Your Operations

© 2017 MHI®

. All rights reserved.

issue in supply chain management is the timeliness of data 1

pallet loss reported annually by U.S. Postal Service 2

billion ‘things’ will be connected to the Internet by 2020 3

trillion economic value from IoT in the supply chain and logistics sector over next 10 years 3

1 ‘Visibility, Speed, and Agility’, eft reports, 2014 2 ‘The Eye Popping Numbers for Reusable Packaging and Pallet Loss’, June 25, 2015, Rick LeBlanc 3 Internet of Things in Logistics, DHL Trend Research | Cisco Consulting Services, 2015

20%

$1.9 50

Lost Assets #1 Inhibitor to the growth of reusable packaging

#1

Location

Light

°C Humidity

Level

Shock

Usage Hours

What is IoT for the Supply Chain?

How Does IoT Work?

AT&T M2X cloud

AWS Azure

AT&T IoT gateway

analyze

visualize

act

• Verify product quality while in transit

• Reduce manual labor

IoT Can Empower You to…

• Automate chain of custody records

• Comply with regulations

• Identify weak areas in your supply chain

• Proactively address critical incidents

Verify product quality while in transit

Reduce manual labor

Automate the scheduling of deliveries, creating delivery

routes, dispatching technicians, etc.

Automate coordination with customers, such as in the

produce industry

Detect when shelves are empty and automatically place

an order to the supplier for replacement merchandise

Supply Chain Benefits of IoT

Before, onsite supply chain managers would spend time manually checking the condition of each container. Maersk now has near-real time visibility into the conditions of each refrigerated container at almost any part of its journey during the supply chain - reducing resource needs and ensuring the quality of goods during shipping.

Cell Site On board

ZigBee AT&T GSM Device

On Container

AT&T Cellular Core

Network

Customer Asset Tracking Portal

VSAT Earth Station

Cellular Terrestrial

Auto Switches

Maersk Monitoring Containers Globally

Identify weak areas in your supply chain

Proactively address critical incidents

Monitor temp, humidity of food during harvest to prevent

spoilage

Reduce number of deliveries (by 48%), by filling a tank

only once it needs to be filled

Remove manual scanning, automate input to supply

chain systems using cellular and RFID

Supply Chain Benefits of IoT

What IoT Can Show You

Automate chain of custody records

Comply with regulations

Detect/notify when shipments go outside of desired path

so someone can act

Detect when merchandise is tampered with during transit

Use automated time, location stamps to verify custody of

goods at each exchange and enforce accountability

Supply Chain Benefits of IoT

FOR SUPPLY CHAIN PROVIDERS

Return on Investment

FOR END CUSTOMERS

Tank Monitoring ROI Example 1

(1000 units) - IoT Cost per Asset: $17.50 - Reduction in Deliveries: 7,700 - Efficiency Increase: 26% - Total Savings: $300,000 annually

1 ROI example for illustrative purposes only

AT&T IoT Connectivity: LTE-M • LTE Category-M is a licensed

LPWA network that AT&T is

launching

• Low Power, Wide-Area (LPWA)

networks are wireless networks

optimized for machine

communication and IoT

Lower Hardware Cost

Extended Battery Life

Enhanced Coverage In-building and subterranean

LTE-M Enables IoT

“If your pallets could talk, what would they say?”

I think I have been stolen.

Hey I’m over here!

Man, this road is bumpy!

Why did this trip take so long?

I’m carrying a recalled product!

Wow its hot in here! Don’t send me to that

warehouse they treat me bad.

Electronic Link to the Internet of Things.

10 year ZERO maintenance life span, environmentally sealed and designed to withstand a wide range of conditions. Cost effective and accurate monitoring of assets with far reaching traceability and connectivity across multiple regions. Cloud based data platform allowing customers access to data via APIs, Web Portals or a newly designed bespoke system. RFID Enabled

The First Smart Pallet

630 RM2 pallets 540 Wooden pallets

A connected durable pallet reaches cost parity with traditional wood pallets after 35-70 trips. Once losses are decreased through connectivity technology, one fifth of the pallets are required to make the same number of trips using durable, as compared to traditional wooden pallets. * from Sultz sustainability document

It takes 899 BLOCKPal to do the same job as 4,400 wooden pallets

Driven by

Reduced weight

25%

Greater durability

20x

Reduce carbon emissions by 1.4M lbs. for every

million RM2 pallet trips*

*Compared with standard wooden pallet, 2014 RM2 Pallet Life Cycle analysis, Pure Strategies Inc.

Low profile

IoT Enables more Advanced Materials

1

4

BLOCKPal Compared to Traditional Pallets

Use of BLOCKPal reduces 1,588 truckloads = 30 truckloads per week

10,000 BLOCKPals used equivalent to removing 1,800 automobiles from the road annually

BLOCKPal eliminates 1,588 trucks for collection delivery annually

Better vehicle fill results in a 17% reduction of inbound empty pallet traffic

Real Savings of a 6 Million Pallet Trip

Origin

Transit Point

Distribution Center

End Point

• Inventory holding • Dwell Time

• How long was it here? • Why is my material sitting here? • True transit time

• When does product need to leave? • Are we traveling for an extra day?

• Quantity needed • Transit time.

Supply Chain Story Bottlenecks Delays Opportunity for savings More timely PoD Reports

Trip of a Pallet Through the Supply Chain

Each RM2ELIoT has a unique ID which notifies LTE-M Network of its: - Pallet ID - Date - Latitude - Time - Longitude

RM2 secure cloud platform holds status and full location history of all the pallets in the supply chain.

LTE-M Network receives information sends to the RM2 secure cloud.

Cloud based data can be securely integrated into existing IT infrastructure using standard APIs or used to create a fully featured bespoke system.

Add RFID mention How RM2ELIoT Communicates with AT&T

Why You Need IoT in Your Operations

• IoT is here now • Available worldwide • No infrastructure

investment required

• IoT enables the story of reusable assets

• IoT can make your existing assets smart

IoT can contribute to • Cost savings • New revenue

PRESENTATION TITLE

THANK YOU

© 2017 MHI®

. All rights reserved.

Cindy Goodman – AT&T, Business Development

Cindy.goodman@att.com, 281-727-9455

www.att.com/iot

David Kalan – RM2, SVP of Marketing & Business Development

David.kalan@rm2.com, 480-334-1016

www.rm2.com