internet of things, connected infrastructure & the modern supply chain

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The Internet of Things, Connected Infrastructure & The Modern Supply Chain

Blaine [email protected] RisleyBartlett & [email protected]

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AgendaThe Internet of Things, Defined

Impacts & Opportunities

Elephants in the Room

We will be introduced by Roger Woody and Chris Gutierrez

Ask for a show of handshow many in the audience are shippers? Suppliers or Consultants to Shippers? Acadamia?

Let people know that if they want to leave because this doesnt apply, you wont offend us.

Heres the three things well cover today:

We want you to walk away provoked personally & professionally enough so that youll think differently about your day-to-day tasks.

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Smart Homes

Many of you are probably familiar with the term Smart Home; Some of you may have this technology in your homes today.

Smart Homes are an example of the internet of things, and they are here today not some distant future.2

What is The Internet of Things?

Its people, places & things that are connected to the internet, embedded with sensors, and communicating with each other.

There are many definitions of the Internet of Things, but we like to boil it down to this:

Lets look at each part of that definition3



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People & The Internet

http://www.emarketer.com/Article/Internet-Hit-3-Billion-Users-2015/1011602

People were the first users of the Internet way before things.

Ubiquities internet adoption by people is important for the IoT revolution, and by 2018, almost half the people on the planet 3.6 billion people will be able to access the internet.

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Places & The Internet

http://wearesocial.net/blog/2014/09/world-mobile-phone/

Place is location, and today that means mobile devices (including wearables). More and more people are accessing the internet via their mobile devices.

The number of unique mobile phone users around the world has just passed50%of the worlds total population.

Growth is staggering -- 750,000new mobile users every day or9 newusersevery second. (GSMA Intelligencehttps://gsmaintelligence.com/)

More people on the planet have a mobile device than a toilet (water.org).6

Things & The Internet

https://www.lordabbett.com/en/perspectives/equityperspectives/finding-growth-in-an-increasingly-digital-world.htmlion today.

So first people, then places, and now things are connecting to the internet.

Projections differ, but a conservative report estimates there will be 50 billion devices connected to the Internet by 2020, compared to 18 billion today.

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Ok, so all these people, places and things are connected to the internetso what?8

Digital Nervous System

http://postscapes.com/what-exactly-is-the-internet-of-things-infographic

Connectivity is one thing, but smart connectivity is another, and thats where Sensors come in. The sensors are like nerve endings in the body we are building a digital nervous system.

A sensor on something can make that something smart it can tell something else

Know positionDetect motion, temperature, humiditySound, vibrationThe presence of chemicalsForce, load or pressureLeaks,Electricity or magnetismAcceleration

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Flexible

/

http://venturebeat.com/2015/02/07/how-the-internet-of-everyday-things-could-turn-any-product-into-a-service

If you think about all the different kinds of things in the world, you realize how innovative these sensors must be. They continually have to be flexible, like this product10

Small & Affordable

http://globalbiodefense.com/2013/03/13/electronic-sensor-tattooed-on-skin-as-real-time-health-monitor/

Small and personal, like this digital tattoo yes, its a temporary sensor that can be attached to skin that has a multitude of functions

Average sensor prices have dropped to 60 cents from $1.30 in the past 10 years (Goldman Sachs).

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So connecting everything to the internet, making those connections smart, and then ultimately, helping it all communicate with each other.12

Always Connected & Communicating

For instance, Diageo could upload promotional offers while the bottle is in the shop but change that information to cocktail recipes when the sensors show the bottle has been opened at home.

http://www.diageo.com/en-row/ourbrands/infocus/Pages/diageo-and-thinfilm-unveil-the-connected-smart-bottle.aspx

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Is It A Good Thing?

Bad news the scale is threatening to cut off our access to the fridge

So all of this smart, connected stuff, talking to each otheris it a good thing?14

Really!?

Have we just gone to far?15

http://www.gartner.com/newsroom/id/2819918

Gartner puts the Internet of things very clearly at the top of the Peak of Inflated Expectations. And by being here today, talking to you about this, we are clearly adding to those expectations.

But they are also projecting the IoT will reach the Plateau of Productivity in the next 5-10 years.16

http://www.pwc.com/us/en/advisory/business-digital-technology-trends-sensors.jhtml

How many of you here work in a supply chain business that touches consumer products or industrial products?

52% of retail and consumer products companies are investing in IoT technology, and 33% of industrial products companies (PWC)

From your inventory to its container, from the container to the carrier, from the pallet to the warehouse. The more your assets can 'speak' to one another and share data, the more they can work together to help you improve your processes."*

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Impacts&Opportunities

IoT & Supply Chain Transformation

Inside The BoxOutsideThe BoxThe Box

We categorize the impacts to Supply Chain in three parts:

What happens to The box -- the building itself.

What happens Inside the Box the manufacture, movement and storage of products inside the building

What happens Outside the Box transportation of goods19


The Box

Energy & Sustainability

Predictive Maintenance20

The BoxEating its own cooking: Malaysia pilot project1300 sensorsPower usageDevice managementCarbon emissionsUtility bill analysisProjected facility savings: $1m/year20%-30% energy reduction across all manufacturing plants

http://www.wsj.com/articles/cisco-tests-internet-of-things-in-its-supply-chain-1431554801?cb=logged0.13812174461781979

http://blogs.cisco.com/cloud/energy-management-and-the-factory-of-the-future

In one of the latest initiatives to get its own supply chain fully wired, Cisco has been installing thousands of sensors in a plant in Malaysia to monitor and reduce energy consumption. Mr. Kern said in an interview with The Wall Street Journal that the team leading the project believes that implementing the system throughout Ciscos worldwide production sites will help reduce energy consumption by 20% to 30%, translating into tens of millions of dollars in cost savings.

The Malaysia project is a pilot program that is part of a $4 million fund the company established in which employees brainstorm and test projects to make the company more productive. The projects cover a wide range of supply chain issues and are relatively small-scale for a $47 billion companythe energy management project in Malaysia cost less than $700,000with the understanding that most will fail. But those that succeed can provide innovative solutions and major savings, Mr. Kern said.

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Designing The Box


Inside The Box

Material Handling SystemsWarehouse Control SystemsWarehouse Management SystemsRobotics

Distributors and manufacturers are challenged with keeping track of assets that are in almost constant motion. Without appropriate strategies in place to manage the tracking of equipment, supplies, and products, the likelihood of misplacing or losing valuable assets increases. Utilizing real-time IoT devices eliminates manual data entry and automates tracking processes, reducing human error and insulating businesses from costly asset loss.

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Inside the BoxOld system: Pickers, list of items, walking the warehouse, filling a tote

New system: Cart-like robots, list of items, retrieve products, deliver to worker.

All Things communicate

http://www.supplychain247.com/article/enter_the_smart_internet_of_things_warehouse/Zebra_Technologies

Lids, an Indianapolis company, sells fashion athletic headwear, team apparel and other fan novelties.

In the old days, order takers - known as pickers - would get a list of items and walk around the warehouse, looking for the right ones and loading them up in a tote. It took a long time.

Recently, however, Lids started using anInternet of Everything(IoE)- basedrobotic systemand life has become a lot more efficient.Now a list with items is automatically sent to cart-like robots, which retrieve the products, place them in bins, and deliver them to a worker.The worker then loads the material onto a truck in the correct order. Sensors detect everything from a robots location to whether pallets are en route to the shipping dock and then wirelessly transmit that information to a remote monitoring team.

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Swisslog CarryPick

DHL Vision PickingReplace hand-held scanners and paper w/ Google glass and WMSTell fastest route to productsReads bar codesTest results: 25% reduction in pick/pack time.Best application: e-commerce warehousesTemp workers

http://www.wsj.com/articles/dhl-unit-plans-google-glass-experiment-in-us-warehouses-1439568950?mod=WSJ_TechWSJD_NeedToKnow

Wearable computers likeGoogleGlass never took off with consumers but the Internet-connected eyewear are finding their niche in the logistics industry.

Exel, the freight forwarding arm ofDeutsche PostDHL Groups supply-chain management business, is preparing to test vision picking replacing handheld scanners and paper job orders with wearable smart-glass devices outfitted with warehouse management softwarein two U.S. warehouses later this year.

The devices can tell workers the fastest route to find products and can read bar codes, which reduced the time needed to pick out an item and pack it for shipping by 25% in tests at a Dutch warehouse earlier this year, Exel says. The technology has the most application in e-commerce warehouses, where workers might need to find a handful of items out of more than a million individual products, the company said.

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Inside The BoxIoT will further our ability to be effective and efficient:EVERYTHING is coordinated, take all the RFID chatter to the next levelYou follow each piece and track itgreatYou follow each piece, track it, tell its friends, make decisions on its proximity to others to automation to time stamps and so on

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IoT will speed up order cycle times Therefore improving service and speedTrifecta is fast, low cost and seamless serviceIoT will take the ordering process to new level, orders will hit DCs before we even know we need it

Inside The Box

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OutsideThe Box

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Smart RoadsTim Sylvester: Make dumb infrastructure smartFactory-built, modular pavementEmbedded sensor networkCapture roadway conditions, cracks, potholes, traffic jamsFuture: Driver-less vehicles talk to the road

http://www.kansascity.com/news/business/technology/article15650132.html#storylink=cpy

As the nations overall repair needs reach the trillions of dollars, Sylvester and a coming generation of engineers hope to convert dumb old infrastructure into tech-rich traffic lanes, pipelines and utilities boasting brains tuned to the 21st century.

A highway project in the Netherlands uses solar panels and tiny windmills blown by passing trucks to store energy for embedded LED lights, allowing roadways to glow at night.Scientists are testing self-healing concrete designed to produce bacteria to fill cracks, according to the global engineering firm Arup.Some U.S. bridges are currently dotted with sensors that provide real-time data when the heaviest trucks, possibly illegally overloaded, rumble across.Drawing boards around the world include pavement threaded with heating elements to melt snow and roadside Wi-Fi to alert motorists to rough patches ahead.Many futurists expect that by 2030, self-driving cars will be wirelessly talking to one another and to the road itself, promising to make motoring safer, swifter and mistake-free.

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Smart Roads

Smart RailroadsGE Evolution Locomotive220-ton computer6.7 miles of wiring, 250 sensors, 9 million data points/hourGear case: oil levels & contaminants that lead to axle failureThese conditions, in this sequence, means 90% chance this failure will happen.

http://www.fastcompany.com/3031272/can-jeff-immelt-really-make-the-world-1-better

Measuring 73 feet long and weighing in at around 436,000 pounds, the Evolution drinks diesel from a 5,300-gallon tank

At roughly 220 tons, it is in many respects a hurtling computer. Its array of sensors and data-collecting devices complements its bulky mass with a sleek, digital agility that will grow only more impressive and more significant with time.

Its insides contain 6.7 miles of wiring and 250 sensors that put out 9 million data points every hour.

For example, GE has begun putting a radio-frequency sensor inside the locomotive's gear case to transmit data on oil levels and contaminants, and by parsing that data, Stokes says they should be able to predict the conditions that lead to axle failures.

"The goal is not just to take data I have today, but to go back and look at the data we have already and see if it shows we could have predicted a historical failure," Stokes says. His team would look at the broken-down locomotive and comb through its data banks to try to discern a pattern. "We want to turn that into an algorithm that helps us predict the future," Stokes explains. "We want to say: These three conditions, in this sequence, mean there's a 90% chance this failure will happen."

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ElephantsIn TheRoom

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Security70% of the most commonly used IoT devices contain security vulnerabilities (HP Study).TalentTech talent. Data scientists.DataData is the river. Insight is the goal.

Predictive Analytics

Predictive analytics is the application of advanced statistical analysis of structured and unstructured data sources to identify patterns and predict future events or outcomes. For example, predictive analytics can provide companies with a look into the future and give them opportunities to identify emerging patterns in the marketplace that can lead to highly effective and personalized customer engagement strategies.

3. Beyond Push and Pull, Youll Be Able to Predict.The old way of manufacturing was based on a push system. Youd produce a product based on your expectations of demand, and then push it out to various markets accordingly. Expectations like the best laid plans, often go awry. So the next step was to create a pull system, where demand and inventory stock triggered production up the supply chain. This is a good system, but it depends heavily on accurate data, and many companies find it difficult to execute without a centralized visibility platform.

The IoT will further incentivize moving toward a centralized visibility platform by taking push and pull a step furtherit will use real-time data and analytics to predict demand, combining the best of planning and execution. Real-time data would feed into constantly improving models of demand, creating a production system thats always in pulse with the markets.

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GE New Business ModelOutcomes instead of functionalitySelling locomotion, not locomotives.Infrastructure as a Service (IaaS)Remote Diagnostics (predictive maint)Trip Optimizer (fuel savings)Yard Planner (decrease dwell)Movement Planner (improve speeds)

An approaching third wave, enabled by data and analytics, does something new. It strikes an agreement between GE and a customer for a certain kind of outcome, rather than a certain kind of functionality.

"Or we're selling locomotion, not locomotives. And we guarantee that back to our customers.

GEannounced today that it was expandingits Predix Internet of Things platformto provideInfrastructure as a Service (IaaS). With todays announcement, the company will be providinginfrastructure services to run those applications.37

IoT Curated Website/Email

Thank You!Blaine [email protected] RisleyBartlett & [email protected]

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Appendix

Industrials

http://insights.globalspec.com/article/150/internet-of-things-in-the-real-world-part-1

Even though the consumer segments of the IoT get all the press, its the Industrial sector that is forecast to have the most connected devices in the IoT, according to IHS research.

IHS puts the total number of connected devices by 2025 at more than 80 billion the largest share of that being in the industrial sector.

From your inventory to its container, from the container to the carrier, from the pallet to the warehouse. The more your assets can 'speak' to one another and share data, the more they can work together to help you improve your processes."*

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Customizable Sensor

http://www.wired.com/2013/08/how-a-startups-cheap-sensors-could-bring-shopping-and-mobile-computing-into-the-future/

And ultimately customizable, like this Bluetooth sensor used in retail outlets can send customized Information to a mobile device.

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The BoxVariable Refrigerant Flow (VRF) zoningCentral smart controllerHappy workers

Variable Refrigerant Flow (VRF) zoning is an energy-efficient method of providing precise comfort control to indoor environments. VRF offers a wide variety of applications - everything from spot-cooling or -heating a single room in a home (using a split-ductless system) to a large commercial building with multiple floors and areas (that require individual comfort control delivered by a split-zoning system).

VRF moves refrigerant to the zone to be heated or cooled, allowing the temperature of that area to be more precisely controlled. It can simultaneously cool some zones while heating other areas or just provide comfort control to zones that are in use. (Zones are single or multiple room spaces that are conditioned to a set temperature and are operated independently from other rooms within the same structure.)

Ductless systems provide more building design flexibility and result in more usable space. Ducted systems allow you to combine multiple rooms into a single zone. Unlike other VRF systems, Mitsubishi Electric Cooling & Heating uses a two-pipe design which reduces the complexity, time and cost of installation with fewer refrigerant lines and connections.

INVERTER Compressor technology is highly responsive and efficient. The technology allows for compact, quiet units, flexibility of placement and gives architects and owners more design freedom with Integrated, simple to use controls.

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Inside The Box

http://www.supplychain247.com/article/traditional_supply_chains_to_undergo_radical_transformation_by_2025

The speed at which supply chain innovation is being adoptedcoupled with rising consumer expectations for anytime, anywhere serviceis stressing traditional supply chains to near-breaking points, saidGeorge Prest, CEO of MHI, an international trade association that represents the material handling, logistics and supply chain industry. Companies that continue to use traditional supply chain models will struggle to remain competitive and deliver orders that are accurate and on-time.44

Target Example: Inside The Box

http://www.zdnet.com/article/target-will-roll-out-rfid-price-tags-to-improve-inventory-management/

The Minneapolis-based retailer says it is working with key vendors to begin outfitting price tags with RFID smart labels, which Target hopes will improve inventory accuracy and out-of-stock issues.

Jones said Target plans to launch the smart tags in a small number of stores later this year, and then eventually expand to all stores some time in 2016.

In addition to improving inventory in-store, Target also expects RFID to have some impact on its e-commerce operations. Jones said the smart tags could help the retailer better fulfill online orders placed for store pickup, which she said account for 15 percent of Target.com purchases.

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Daimler Example: Outside the Box

Equipping fleets with sensors designed to improve vehicle performance and diagnostic capabilities extends the life of costly assets. Vehicle-generated data-collection activities like location tracking, tire-pressure monitoring, stability control, and collision avoidance converge to make fleets not only more efficient, but also safer. Utilizing this wealth of data to adhere to vehicle-maintenance schedules and address unanticipated repairs as soon as they appear keeps budgets predictable, more extensive repairs at bay, and more vehicles on the road.

New commercial trucks manufactured by Daimler Trucks North America, for example, are now equipped with sensors that feed data to a Daimler-operated call centerwhat equates to a "virtual service station." Sensors detect and diagnose maintenance issues in real time; the system communicates that information to the Daimler network, and then connects the driver with the call center to receive instructions. Drivers with critical issues are directed to nearby mechanics by means of a GPS system, which determines the truck's location. This automation and centralization of fleet management responsibilities have allowed for substantial gains in efficiency. For an example of how this can be used in the warehouse, see the sidebar.

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Purfresh: Sensitive CargoFresh food monitoring in refrigerated containersTemperature, humidity, oxygen, CO2, power, shockGeofence, timestamp

Purfresh is using the IoT to change the shipment of perishable products by ocean. Purfresh is a provider of enhanced atmosphere technology and documented, real-time monitoring and control. This technology enables Purfresh to make ocean transport a viable option for even the most sensitive cargo.

The Purfresh technology provides the capacity to collect real-time data, including the atmospheric conditions inside a refrigerated container and the container's location. The technology also sends automatic alerts (for an unexpected condition, such as an incorrect temperature or an unplanned power-off event) and provides detailed trip reports. When an issue is identified, it can be corrected remotely while the shipment is in transit, enabling perishable products to arrive intact and in good condition.

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