How the innovation is driving the always on supply chains

Accelerating Change

Alberto Joel Martinez CPIM CSCPPresidente APICS Capitulo Mexicali

Noviembre 2016

Based on the 2016 MHI Industry Reportwww.mhi.com

Agenda

What is the Always ON Supply ChainExamples of Old and New SCWhat is driving The digitalized supply chain and challenges8 technologies driving the always on supply chain

Examples of each techSuggestions for the leadersHow to prepare here in the RegionQ&A

Accelerating Change

The Always “ON” Supply Chain

An integrated set of supply networks char-acterized by a continu-ous high velocity flow of information and analyt-ics creating predictive actionable decisions to better serve the cus-tomer

Integrated supply chain

Apple has the best supply chain for 10 consecutive years per the Gartner research group, they been ele-vated to Master Supply category

Disrupting the business model

Technology driven in-novationsComputing powerArtificial IntelligenceMoore’s Law

The iphone has 1000 more computing power; than the computers that put a man on the moon

From physical to digital

Information as a key assetGeo space not as ImportantA.I. do the data mining Consumers create dataTo Generate:• Predictive Analysis• Streamline Ordering• Anticipatory Shipments

Eight disruptive technologies

1. Predictive analytics2. Robotics and automation3. Sensors and automatic identification4. Wearables and mobile technologies5. Driverless vehicles and drones6. Inventory network and optimization tools7. Cloud computing and storage8. 3D printing

Key Survey Data

Predictive AnalysisCompetitive Advantage for Breakthrough Performance

What to do ?Research what companies are doing, what’s working ?Determine ROI of predictive analysis to replace a legacy systemStart Small and work with IT to determine benefits and costListen to the voice of the customer

Is an enabler to the always on supply chainsIt difficult to figure out, but once performed will bring great benefitsHas the potential to be a disruptive force in your industryThere is today an abundance of data not used especially in supply chain

What we need to know

Data only is valuable if it modifies future actions• Improves the learning

process• Moves from hindsight to

foresight• Has a clear ROI• Improves customer ex-

perience

Robotics and AutomationBig Cool Robot – Small Collaborative Robot

What to do ?Proceed with caution – challenge engineers to be clear in visionGo slow, several short steps of a complete automated lights outDevelop your talent strategy, New roles and skillsets neededTalk and chose the correct partner for robotics implementation

Rise of collaborative robotics – must have alignment to companies visionSafety issues resolved as robots sense humansWill replace an assembly worker – Cost benefit is a must.Improved quality reduces variations speeds the process

Sensors and Automatic IdThe Internet of Things for Manufacturing

Is a suite of technologies – sensors, communication devices, servers, analytical engines, devices that can automatically identify items and decision making aids- that have the ability to link the physical and in-formation worlds more together, expanding ways to generate value

Sensors and Automatic Id

What to do ?Chart a course based on leading practices from othersConsider sensors and applications to support an always on supply chainIdentify supply chain challenges can be solved by the IoTConsider the cost of not investing, and possible positive impact on customers

The customer preferences are always being monitoredMore sensors = More data (Cost for sensor have decreased )Real world applications are now being utilized by mayor retailersIncreased visibility with traditional (RFID – Intelligent tags – GPS)

Sensors Drive Supply Chains

The Internet of Things (IoT)

Wearables and TechnologiesOn the Warehouse smart glasses

What to do ?Chart a course based on leading practices from othersConsider sensors and applications to support an always on supply chainIdentify supply chain challenges can be solved by the IoTConsider the cost of not investing, and possible positive impact on customers

Devices that incorporate in clothing or accessories that can be wornWearables enhance existing technologiesSupports hands free – censoring and scanningStill need to develop enhanced ecosystems for full integration

Driverless vehicles and dronesMore at www.deloite.com/us/thefutureofmobility

What to do ?Explore possibilities, start preparing today for tomorrowLook for cross industry opportunities or share transportation

The 4 future states of technology 1 Incremental Change adaptation cost per mile $1.00 Dlls2. A World of car sharing Cost per mile $0.65 Dlls3. A Driverless revolution Cost per mile $.045 Dlls4. New age of accessibility and autonomy $0.35 Dlls

The rest

Inventory network and optimization toolsWMS – SOP – CRM – 3PL – SCEPFocuses on integration

Cloud computing and storageCritical in new roles, access to all data form anywhereWorks as an enabler for all new technology

3D printingAdditive process changes form subtractive manufacturingReduces cost of supply chain (Lead time and Inventory)

What we need to know

Suggestions for Leaders

Invest, Test and Learn ( Technology and knowledge)Partner with solutions suppliersDetermine where to start and how current data needs to beMake sense of data, so that you can act on itBottom Line:

Talent management is key need to start thinking how technology affect our lives today and how it will be affected in the next 20 years

To the leaders of the Region

How can we stay competitive ?

Review current technologies in the local market Invest in developing people and learn to collaborate

CSCP – SOP Continue to be key for success Train to reduce cost – Eliminate waste Be prepared to show the value of Mexico and our people

Here to support – Questions ?