Redefining Supply Chain& Manufacturing

Sofia Katsara, Channel Sales Lead

18th April 2019

1920 1980s 2010s 2020s

Source: Yale Professor Richard Foster

Average lifespan of a company on S&P 500

Creating new digital leadership imperatives

Global access to food and water would reduce poverty for

65% of world’s

rural poor8

Predictive analytics is the

#1 AI use case

for enterprises across

manufacturing5

$1T global

spend on cybersecurity products andservices by

202113

$6T annual

global cost of cybersecurity damages by

202112

70% expected increase in

agriculture output needed to feed

the world in 2050975% of

chemical companies plan

to double level of digitization by

20204

400% expected

increase in amount of water needed for

manufacturing through 205010

75 millionjobs displaced by automation and

133 millionnew jobs created between 2018-

202211

Industry

AI Workforce

Cybersecurity

Sustainability

50% of

companies that embrace AI over the next five to

seven years may double their cash

flow2

When fully integrated, new

technologies could create up to

$3.7 trillionof global GDP by

20251

Machines complete

29% of

tasks today and

71% by

20256

Manufacturers are seeing an average

17-20%productivity gain

from smart factories3

$60B estimated

energy cost savings for commercial buildings with

1-4% increase in

intelligent technology7

42,5%of the global

workforce

(1.87 billion) will be mobile

by 2020

76% expected

increase in worker production and

70% expected

increase in demand for products and services based on

AI5

Product-as-a-service

Collect and leverage data from

sensor-based products, optimize

revenue streams, and reinvent the

product experience through service

Factory of the future

Connect the factory to existing

systems, achieve end-to-end visibility,

and enable quality assurance with

operational data

Intelligent supply chain

Identify process inefficiencies,

develop flexible and digital

technologies, and improve

responsiveness

Recommendations

Recommendations

Real-time customer view

Automatic part detection uses smart cameras to detect model

and part numbers

Smart devices enable self-learning and self-healing

devices

Guided service workflow enables a

high first-time fix rate

Upsell and cross sell opportunities enable additional revenue

opportunities

Service history insights transform maintenance logs

into smart graphics

Cognitive service alerts automatically triggers alerts

AI enables predictive anomaly detection at the Edge

Tuned and optimized AI models give access to

optimized AI model library

Service bots diagnose assets automatically

Smart routing enables smart routing of work

orders

Thyssenkrupp lays the foundation for intelligent buildings

Challenge

Thyssenkrupp, wanted to

find new ways to use IoT

sensor technology to

make a building interact

with the facility manager

and the owner. A way

also to try new

technologies and

showcase them to

customers / public

Results

Optimizing how the building and its

components are used

• MULTI makes smart decisions about

where the elevator cars go

• Predictive maintenance solution MAX -

reduce elevator downtime by half

• multifunctional dashboard w/ digital

representation of the physical unit

Using a real-life laboratory to

accelerate innovation

“We don’t have to install massive new physical assets for testing because we do it all

through the digital replica—with keystrokes rather than sledgehammers. We have this

flexibility thanks to Willow Twin and its Azure infrastructure.”

- Professor Michael Cesarz: Chief Executive Officer for MULTI thyssenkrupp Elevator

Strategy

“Innovation Test Tower”

– a digital twin takes in

live data from IoT

sensors that are

monitoring all of the

building’s systems, along

with data about the way

space is being used and

occupied. Live process-

analyze-act

Next pickup: bin 5141

Bin 5139

Bin 5140

Bin 5141

9

Process optimization controls high speed processes

Autonomous vehicles/robots optimize

warehouse utilization

Machine calibration automates system

tuning

Smart systems enables process automation and optimization

Smart spaces transmits information on energy

consumption

Factory assistance provides operators with information

upon request

Predictive maintenance enables condition-based maintenance

Cognitive quality detects defects with image

recognition

Product traceability allows end-to-end

tracking

Health and safety mitigates and prevents

incident factories

Industrial robots/cobots adapt to

changing location

Tailor your product in a connected factory

Challenge

KUKA, a robotics

manufacturer, was looking

to design the next

generation of robots—

ones that could sense

their surroundings and

safely work side-by-side

with humans.

Strategy

Connect 60,000 devices

and robots to back-end

monitoring systems,

enabling them to adapt

quickly and provide

actionable insights into

factory operations on

the Azure platform.

Results

• Humans and robots worked

together in close proximity, with

robots alerting human technicians

of issues and calling for

assistance when needed

• Improved safety and operations

“Thanks to disruptive breakthroughs in robotics technology, combined with the

power of the cloud…our solution enables human-robot co-working and directly

connects the management with the shop floor.”

— Dominik Bösl, Technical Fellow, Corporate Innovation Office, KUKA AG

Challenge

• Toyota sought a digital transformation to regain market leadership.

• It’s first project was a predictive maintenance solution for field technicians.

Strategy

• Microsoft Enterprise Services provided envisioning, design, and delivery.

• Microsoft Adoption and Change Management Services provided training.

Results

• Unlocks maximum value from data.

• Boosts customer satisfaction.

• Supports more effective employee recruitment, retention.

“Far from being a ‘mere’ technology provider, Microsoft is our close partner, providing advisory services from the envisioning phase and business case development to design, deployment,

change management, and more.”

— Joakim Plate, Director, Service Market, Toyota Material Handling Europe

Toyota Material Handling Europe partners with Microsoft to build a digital future

Inventory levels

452232111

Customer part no.

Customer location

10 week forecast Stock on hand

45245465

36525224

58744563

36225412

12545583

London

Zurich

Brazil

Singapore

Sydney

London

Understock

Understock

Over stock

Over stock

On track

On track

Increase supply level

Decrease supply level

102

352

521

124

346

356

Recommended adjustments

Steel price

Salvador product flow San diego product flow

Outsourced supplier options

• Nabtech corporation

• Commonwealth aero

• GRS aerospace

• DandC engineering

• Advanced

electronics, ltd.

• Apex industries

• Eastern aircraft tires

• Fabritech ab

Outsourced supplier options

Mombasa product flow Hamburg product flow

New distribution center options

Marketing event timeline

Projected production levels

Planning Demand forecast

Region CategoriesAsia Automobile

Q4Q3Q2Q1

Demand forecasting predicts future demand with AI

Predictive and cognitive quality, yield uncovers defects through

image recognition

Inventory planning and optimization spans across

multiple echelon and location

Warehouse automation optimizes warehouse

utilization

Sourcing and procurement enhances spend analytics,

contracting, and BOM management

Supply chain visibility and orchestration drives agility,

responsiveness, and flexibility

Integrated track and trace enables product

tracking

Integrated business planning empowers businesses with

prescriptive analytics

Products and Services Organization Size Industry Country Business Need

Supply chain dreams: Microsoft SCE uses serverless computing to drive innovation & Control Tower for Realtime Supply chain visibility

To effectively manage supply chains for all Microsoft software and hardware,

Microsoft Supply Chain Engineering (SCE) has to collect, analyze, and report

petabytes of data and millions of integration points in a timely manner. SCE uses

Azure serverless technologies to create a service that helps it relate and search

cross-functional data in near real time, without buying new infrastructure or writing

new code.

Combining predictive analytics, ML and Advanced AI, Navisphere gives you a

vision of the future. Enabling the visibility of your good between the loading

points, consolidating with real time info on weather, global events, traffic, etc

anticipating obstacles before they occur and enablin AI to route/re-route your

cargo

Business AgilityUnited StatesProfessional Services

120,000 employees

Azure serverless technologiesAzure Event GridAzure Event HubsAzure Cosmos DB

Waberer’s

International:

achieving a whole

new level of

planning

optimization

through AI

RESULTS

SOLUTION

a powerful new business tool - the Waberer’s Intelligent

Planning Engine, WIPE, a cloud-delivered planning

automation platform that uses complex mathematical

models and algorithms to seamlessly allocate driver team,

load and journey schedules in the most efficient way.

• Full automation of mission critical business process –

real time

• Performance now above industry best practice - 92% of

trucks full on the road, instead of 87%

• Significant annual cost savings due to improved

resource allocation

• Reduced chance of scheduling ‘human error’

• Greener operation, less fuel used

Waberer’s International EMPOWER EMPLOYEES | ENGAGE CUSTOMERS | OPTIMIZE OPERATIONS |TRANSFORM PRODUCT|

“92% of the time our trucks are on

the road they are now loaded,

which means significant annual

cost savings for us.”