SupplyChainManagement4.0:Logis8cswithinthebulkcement

industryMarkusLanz

The4StagesofIndustrialEvolu8on

4.Industrialrevolu1onBasedoncyber-physical-systems

3.Industrialrevolu1onThroughtheuseofelectronicsandITfurtherprogressioninautonomousproduc8on

2.Industrialrevolu1onIntroducingmassproduc8onlinespoweredbyelectricenergy

1.Industrialrevolu1onIntroducingmechanicalproduc8onmachinespoweredbywaterandsteam

Endofthe18thcentury.

Beginningofthe70th

Industry1.0 Industry3.0Industry2.0 Industry4.0

Levelofcom

plexity

Today

Manufacturing-MegaTrendsMegatrends have considerable impact and drive structural changes in nearly all manufacturing sectors

Changing demographics (growing world population, aging societies, increasing urbanization)

Globalization & future markets (ongoing globalization, BRIC, beyond BRIC)

Scarcity of resources (energy, water, other commodities)

The challenge of climate change (increasing CO2, global warming, ecosystem at risk)

Dynamic technology & innovation (technology diffusion, power of innovation, the age of life science, ubiquitous connectivity)

Global knowledge society (know-how base, gender gap, war for talent, multiplication of data and information)

Sharing global responsibility (shift to global cooperation, growing power of NGO´s, increasing philanthropy

SmartSupplyChain

CurrentState

MegaTrendsaredrivingthefuturefaceofManufacturingIndustrythroughrapidtransforma1ons

CapacityandEfficiency

DisparatePlantSystems

MaketoStock

Supplychain

CapabilityandFlexibility

ConvergenceofOTandIT

MaketoIndividual

SupplyCircle

FutureState

HistoricalDataMonitoring

RealTimeDashboards

1

2

3

4

5

FactoryoftheFuture–Summary

Objec1ve:•  Sustainablemanufacturing•  ICT-enabledintelligentmanufacturing•  Highperformancemanufacturing•  HigherAutoma8on

ATransforma1onFrameworkleveraging§  OTandITconvergence§  IndustrialEthernet§  MobileApplica8ons§  Automa8on§  BigMDataAnaly8cs§  DigitalModelingandSimula8on

Visio

nFram

ework

DesiredStage

FactoryoftheFuture–Defini8on&Vision

ConnectedshopfloortoTopFloorSystems(BusinessSystems2WayIntegra1on)

Ver1callyandHorizontallyIntegratedsystems,instruments&informa1on

Supporttheinternalcustomer(paradigmshi\withdemonstrableandsustainablebenefits)

Real-1memonitoringofmachines,inventoriesandmanualprocesses

Fullshopfloorvisibility/transparency(allplantsandprocesses)

RFID/Barcode’s/QR-Codesetc.

SmartSupplyChainNetwork

FactoryoftheFutureisparadigmshi\sfromdisconnectedshopfloortoconnectedmanufacturingfacili1esbyautoma1ngtheflowofinforma1onthroughver1calintegra1on“ShopFloortotheTopFloor”andhorizontalintegra1onacrosstheplantsite,loca1onsetc….

WhatdowemeanbySmartSupplyChain,anddoweall

meanthesamething?v Visibilityof:

v Productstatusv Real8medemandanddemandplansv Supplyplansv  Inventorylevelsbyloca8onv Orders

v Andvisibilityofassetse.g.:v Vehicles,condi8onandcapacityv Produc8on&Packagingequipmentv Loading-&Unloadingsystemv Peopleandcapabili8es

Ifyoucan’tmeasureit,youcan’tmanageit!

Howcanitbesoverydifficultwhenwehavetheabilitytousealltheseassets:

Sta8cSupplyChain

Func8onalExcellence

HorizontalProcessIntegra8on

ExternalCollabora8on&Integra8on

SmartSupplyChain

Instrumented

Interconnected

Intelligent

IntegratedTransac8ons(ERPtoERP)

Balancingriskandperformance

Effec8velydrivingprofitablegrowth

Managingcomplexity

NetworkedPlanning,

Execu8on&DecisionAnalysis

Op8mizedFlows

Flexibility&stability

Future

CSCO

AutomatedTransac8ons

(Sensors&Actuators)

OurPointofViewontheProgressionofSupplyChainManagementtoaSmarterFuture

SmarterSupplyChainTheSupplyChainoftheFuturemustbeSMARTER...ItwillbeInstrumented,Interconnected&Intelligent

Instrumented

Interconnected

Intelligent

AutomatedTransac8ons&SmartDevices

Op8mizedFlows

NetworkedPlanning,Execu8on&DecisionAnalysis

•  Useofsensors,actuators,RFID,&smartdevicestoautomatetransac,ons:inventoryloca8on,shelf-levelreplenishmentdetec8on,transporta8onloca8ons&boalenecks

•  Supportsreal-,medatacollec,on&transparencyfromPOStomanufacturingtorawmaterial

•  Sense-and-responddemand/supplysignalsallow“predictandact”

• Mul8-Tiersystemintegra,onacrossthenetwork.Standardizeddataandprocesses.

•  Collabora,vedecisionmakingthroughdecisionsupportandbusinessintelligence–star8ngwiththecustomer

•  Networkedriskmanagementprogramsforintegratedfinancialcontrolswithopera8onalperformance–monitoredandmeasured

•  Simula,onmodelstoevaluatetrade-offsofcost,8me,quality,serviceandcarbonandothercriteria

•  Probability-basedriskassessment&predic,veanalysis

•  Networkedplanning/execu8onwithop,mizedforecasts&decisionsupport

CaseStudyCementProducerKeyChallengesinCementSupplyChain

v Anend-to-endsolu8onthataddressesallaspectsoftheCementSupplyChainManagement

v AutomatedOrderManagement

v Real8mestockmeasurement

v Rou8ng

v Completemonitoringoftheprocesses--fromloadingofcementintothetrucktodeliveryatcustomersiteandreturnofthetrucktotheplant

v TheOrbitLogVMI-solu1onprovidesreal8mestock&distribu8oninforma8onandintegratesitwithintheERPsolu8on

v TheServiceorientedLOGis8cSystemSoLOGS®forautomatedselfserviceloading

v Noreflec8onoftherealinventorysitua8on

v Providingrightinforma8ontotheclientabouteverydispatch

v FleetUnderu8liza8on

v HighDistribu8onCostduefrequentorderchangesorcancela8ons

v Wai8ng8metounloadtrucksdueunavailablesilos

v Manualorderentry

Solu1on Benefitsv ReducedInventoryCost

v ReducedDeliveryCycleTime

v Elimina8onoftruckwai8ng8mes

v  ImprovedPlantProduc8onPlanning

v Op8mizingrou8ngandtransporta8on8mes

v Reducedadministra8on

v Costreduc8onbyapprox.20%

Solu8on

TanksWebportal Customer

SAP

Automatedconsignmentcalcula1on

Webportal

Real-1meInventory

Forecast&Deliverystatus

PODTerminalsBargesTruck Railcar

Supplier

Customer

SoLOGS®ServiceorientedLOGis8csSystem

3e_Automate(English).mp4

CaseStudyOilProducerKeyChallengesinOil/GasSupplyChain

v  Integra8onbetweenschedulingcenters,terminals,trucksand

customersassuredrobustplanningandcollabora8on

v AutomatedOrderManagement

v Real8mestockmeasurement

v Rou8ng

v TheOrbitLogVMI-solu1onprovidesreal8mestock&distribu8oninforma8onandintegratesitwithintheERPsolu8on

v Noreflec8onoftherealinventorysitua8onatpetrolsta8ons

v Unstructuredorder8ming

v Ordervolumescausingtankerstogoouthalffull

v Peaks&troughsduringtheweakdueconsumerdemandandpricechanges

Solu1on Benefits

v Petrolsta8onManagerknowwhendeliverywillarrive

v Elimina8onoftruckwai8ng8mes

v Op8mizingrou8ngandtransporta8on8mes

v Schedulerscanmaximizethedeliveriesinashij

v Reducedadministra8on

Solu8on

Tanks

Automated consignment calculation

Webportal

Real-time Inventory

Forecast & Delivery status

POD Terminal

Supplier

Customer

FleetOp1mizing&Schedulingsystem

PODTimestamp

3PL/4PL

Thevision:Real8mecollabora8veplanning&

forecas8ngCollabora8venetwork(customer/supplier/carrier)

DemandCloud

Real-8me:orders+forecast+inventory+consump8on+loading+movements

Orderautoma1on

Customerorderportal

ProofofdeliveryExcep1onhandling

CompanyborderFirewall

Alwaysexternalconnec1ons

internal

RALOGSupplyChainEngagementMethodology

v  Product/CustomerPorlolioanalysisv  Sales&Opera8onsPlanningv  MetricsDefini8on

v  OrderToCashCycleTimev  ReturnonAssets

v  ForecastAccuracyv  TotalSupplyChainCostas%of

Revenue

v  HighLevelRoadMapv  To-BeProcessDesignv  Timeline

v  Resource/Staffingv  Cost/Benefit

v  Iden8fica8onofpossiblesolu8ons

v Quickwinsv  Exis8ngProcessstandardiza8on

androllout,ifneeded

v  Implementa8onv  SCMStrategy

v  Organiza8onalchangev  Solu8ons

v Projectmanagement

v ChangeManagementv Training

v  UnderstandAs-Isprocess&capturecurrentperformance.

v Qualita8veAnalysis:PainpointsandIssuesiden8fica8on.

v Quan8ta8veDataAnalysis:(e.g.ProductABCbasedonrevenue/grossmargin/inventory)

v  ProcessandPerformanceAnalysis

v  ProcessandPerformanceGapAnalysis

v  Iden8fyopportunityareasandQuickwins

v  ValueIden8fica8onandes8ma8on

DiscoverConductAs-IsAnalyzes

DeepDiveDefini,onTo-BeSitua,on

DeploymentDefini,onTo-BeSitua,on

MarkusLanzManagingPartner/SeniorConsultantRALOGEngineeringAGAarburgerstrasse21CH-4800SwitzerlandPhone:+41763954521Mailto:m.lanz@ralog.chWeb:www.ralog.ch

Thankyou