the industrial internet of things driving … what is the industrial internet of things? the clou...

1

THE INDUSTRIAL INTERNET OF THINGS DRIVING THE BIG DATA BOOM

2

Table of contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

What is the Industrial Internet of Things? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What does it look like in materials handling and logistics? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Then: IIoT meets the supply chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Now:IIoToffersgreatervisibilityinmaterialshandling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Future:IIoTtransformsmaterialshandling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

How can your operation benefit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Increaseindividualoperatorefficiencyandoveralllaborproductivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Optimize assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Maximizelimitedwarehousespace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Increasethepotentialvelocityoffastmovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Fosterdata-drivenaccountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Increasevisibilitythroughoutthesupplychain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

How much of a priority should you make the IIoT? And how quickly will it pay off? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

How can you protect your network against cybersecurity threats? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Understandtheimportanceofcybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Knowtherisks:Collaboratewithvendorsandavoidweaklinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Beproactiveandsecureagainstdatalossandcompromise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

How do you get there? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Startwithsimplesteps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

PrepareforIndustry4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

WhatistheIndustrial InternetofThings? Howcanyouroperationbenefit? Howmuchofapriority

shouldyoumaketheIIoT? Howdoyougetthere?Howcanyouprotectyournetwork againstcybersecuritythreats?

Whatdoesitlooklikein materialshandling&logistics?

3

Introduction

The2000ssawatippingpointinconsumerelectronicsthatcreatedsomethingofa“BigDataBang.”High-speedinternetconnectionsreachedmobiledevicesandthusbeganthedawnofanewdigitalerathatconnectedvirtuallyeveryoneandeverything.

Theconnectedworldhasgrownatanastoundingpaceeversince–from2billion“smart”devicesin2006toanexpected200billionby2020.ThishasledtoanexplosionofinformationandtermsliketheIndustrialInternetofThings(IIoT),bigdata,5Gandthecloudbecomingcommonvernacular.

Atabasiclevel,thesetermsrefertothenearubiquitousabilityofdevicestosendandreceivedata.Userscanthenleveragethisdatatomakemoreinformeddecisionsandenableautomatedactions,therebyincreasinglaborproductivity.

Butwhatdoesthatmeanforbusinesses,particularlywarehousesanddistributioncenters?




4

WHAT IS THE INDUSTRIAL INTERNET OF THINGS?

the cloud

IIoT

M2M Communication

MACHINE TO MACHINECOMMUNICATION

Big Dataadvanced analytics IIoT ADVANCED

ANALYTICS

M2M

thecloud

BIG DATAM2MIIoT

the

clou

d

AdvancedAnalytics

machine to machinecommunication




5

What is the Industrial Internet of Things?

Begin with the buzz words.

The cloudreferstointernet-based,sharedcomputingpowerthatallowssoftwareandservicestorunontheInternetinsteadofalocalcomputer.Foranexampleofthiscloudvs.localdynamic,thinkofonline-basedapplicationslikeGoogleDocsvs.MicrosoftWordrunninglocallyonadesktop.

The Internet of Things,ontheotherhand,referstothebillionsofelectronicdevices–everythingfromfridgestoforklifts–thatcancollectandtransmitdatawirelessly,usingWi-Fi,Bluetooth,near-fieldcommunicationandthecloud.ThecloudandtheIoTaretrulytwopeasinapod–they’reinseparable.TherewouldbenoIoTwithoutthecloudandthecloudconstantlyexpandsastheIoTgrows.Inessence,IoTenableslocalizeddecisionmakingbyleveraging–andenhancing–cloud-basedaggregation.

IIoT means the IndustrialInternetofThings,soanyconnecteddevicespecificallyintheindustrialsector.IIoTholdsgreatpotentialforqualitycontrol,sustainablepractices,supplychaintraceabilityandoverallsupplychainefficiency.

Machine-to-machine (M2M) communicationistheframeworkoftheIIoT.Thisbroadtermappliestoanytwodevicesexchanginginformationandperformingactionswithoutinputfromhumans.M2Mtechnologyenableswarehousesoftwaresystemstomanageautomatedequipment,roboticlifttruckstocommunicateandmaintenancemanagementsoftwaretoworkwithequipmentlikeconveyorsandsorters.

Big dataisatermforthemassiveamountofdatacollectedfrombillionsofconnecteddevices.Thesearedatasetssobigthattheyledtotheinventionofnewcomputerstoprovidethenecessarypowertoanalyzethem.Withsuchsignificantvolumeandvariety,patterns,trendsandassociationscanemergethatrevealnewinsightsandbetterbusinesspractices.Thoseinsightsaregainedfromadvanced analytics–thescientificprocessoftransformingbigdataintorelevantinsights.

Cybersecuritygoesfarbeyondanti-virussoftwareandpasswordprotection.Itreferstotheeffortstoprotectconnectedsystemsfromattacksanddatabreaches–athreatbusinessesofallsizesmusttakeveryseriouslyastheycapturegreatervolumesofdata.




6

WHAT DOES IT LOOK LIKE IN MATERIALS HANDLING AND LOGISTICS?

Then Now Future


shouldyoumaketheIIoT? Howdoyougetthere?Whatdoesitlooklikein materialshandling&logistics?

Howcanyouprotectyournetwork againstcybersecuritythreats?

7

What does it look like in materials handling and logistics?

OneofthefirstmanifestationsoftheIIoTinlogisticscamein2000withtheintroductionoftelematicsandtrackingsensorsinover-the-roadtrucks.Thisprovidedenhanced,data-driventransparencyandhelpedilluminateopportunitiesforincreasedproductivityandefficiencyinsupplychainoperations.

Inthewarehouse,earlydatacollectionapplicationsfocusedprimarilyonanalyzingbasicpoint-to-pointdata,likethenumberofordershandledinacertaintimeframe,andcomparingthedataacrossanetworkofdistributioncenters(DCs).Thisincludedbasicoperationslikepicking,putawayandothercommontasks.

Then: The IIoT meets the supply chain

1,298orders handled

2,312orders handled

9,381orders handled

Distribution Center #2




shouldyoumaketheIIoT? Howdoyougetthere?Whatdoesitlooklikein materialshandling&logistics?

Howcanyouprotectyournetwork againstcybersecuritythreats?

8


Connectivityandcloud-basedtechnologyisexperiencingmorerapidadoptioninmaterialshandlingoperationsthanever.Over40percentofallIIoTdevicesexistinbusinessandmanufacturing,and43percentofmaterialshandlingprofessionalsengageinbigdataanalysis.

Contemporarychallenges,suchasshippingpressuresine-commerce,governmentregulationinfoodandbeverageandlaborshortagesacrossvirtuallyallindustries,leadtoaneedtoleveragebigdataforgreaterlaborproductivityandoverallefficiency.Thesedatadrivenimprovementsextendtoeverythingfromlifttruckfleetutilizationandoperatorperformancetoenergyuseandmaintenance.

AnothereffectoftheproliferationofmorecomprehensivedataisgreatervisibilityintoDCs.Sincedatacollectionhasbeenexpandedtonearlyeveryaspectofawarehouseoperation,managerscangetinsightsthatgodeeperthaneverbefore.Forinstance,awarehousemanagementsystem(WMS)mayhelpacompanyestablishhowlongitshouldtaketomoveproductfromdocktorackviaforklift,butbigdatathatbringsinmoredatasetsfrommultiplesystemscanhelpexplainwhythattimeparameterisnotalwaysmet.

Now: The IIoT offers greater visibility in materials handling




9


Withmoreend-usersandsolutionsprovidersrecognizingthevalueoftheIIoT,materialshandlingoperationscanmovebeyondreactivedecisionstopreventiveandevenpredictivemeasures.Forexample,insteadofusingdatasimplytotrackthetimeframeinwhichcertaincomponentswillneedmaintenance,operationscanmonitorcomponentsviavibrationsensorsorothertelematicsystems,andsetupautomatedalertsintheeventananomaly,suchasalowbatteryoracertaindegreeofwear,isdetected.

Theseautomated,if-thenfunctionsalsomakeanimpactwithconsumerdevices,likewearables.Apatent applicationdescribeshowanApplewatchandiPhonecanworktogethertoautomaticallycall911intheeventa“careevent,”suchasaheartattack,isdetected.Beyondautomatictriggers,thenextfrontierismachinelearning.Systemscannotonlytakeactionbasedondatameetingacertainthreshold,butcanjudgedegreesofsuccessandcontinuouslyoptimizeactionbasedontacticalcharacteristics.Forexample,anautonomousvehiclemaylearntoadjustitsroutebasedontimeofday,expectedtrafficconditionsandotherfactors.

Future: The IIoT transforms materials handling

SENSOR DAMAGED DUE TO IMPACT




http://www.pcb.com/PdMProcess

http://www.yale.com/north-america/en-us/solutions-for-you/small-data-big-impact/

https://9to5mac.com/2016/03/10/apple-watch-heart-attack-911/

10

HOW CAN YOUR OPERATION BENEFIT?




11

Enter the Smart (IIoT-enabled) Warehouse

Warehouseshostamultitudeofprocesses,peopleandequipment,eachofwhichholds datareadytobeliberatedandputtouseforrealbenefit.Thisdatacanhelp:

1. Increaseindividualoperatorefficiencyand overalllaborproductivity

2. Optimize assets

3. Maximizelimitedwarehousespace

How can your operation benefit?

4. Increasethepotentialvelocityoffastmovers

5.Fosterdata-drivenaccountability

6.Increasevisibilitythroughoutthesupplychain




12

● Improve safety compliance and track OSHA adherence – Telematiclifttrucksolutionscanenhancesafety regulationcompliancebyrestrictingtruckaccesstoonlyoperatorswithpropercertificationandproviding automatedcheckliststoguideoperatorsastheystarttheirshift.

● Analyze errors and injuries by equipment type and employee – Someoperatorsmayexcelwithcertaintrucks butfumblewithothers,allowingmanagementtobettermatchtheskillsofthelaborforcewithequipment,oradjust trainingandsafetyprograms.Equipmentchoicecanalsoinfluencethelikelihoodofchronicconditionsandinjuries fromrepetitivemovements.Forinstance,whilesomeoperatorsmayfavorsit-downlifttruckmodels,standup modelscanreducethestressonkneesfromrepeatedlygettingonandoff.

● Plan for overtime and seasonal workers – Breakdownthroughputvolumesbynumberofoperatorsandtrucksto helppredicttheamountoflabornecessarytohandlepeaks.

● Identify opportunities for automation – Usedatafromutilization,GPSinformation,impactsandproductivityreportsto findopportunitiestoimplementautomatedsolutions,likeroboticlifttrucks.

● Find the most efficient routes – OneoperatormayspendtwicethetraveltimegettingfrompointAtopointBas anotherdriver.Withlocationandutilizationdatacapturedfromthetruck,warehousemanagerscandeducethecause– whetheraninefficientroute,unscheduledbreakorothercause.

Inthewarehouse,productivitydependsinlargepartonhowwelloperationsutilizelabor.Withadvancedtelematicssolutions,warehousemanagerscanmonitorperformanceallthewaydowntotheindividuallifttruckoperatortohelpidentifysystemicinefficiencies.

Increase individual operator efficiency and overall labor productivity





13

LifttruckscanbeequippedwithtelemetrysystemsandRFIDreaderstogatherdataonboththetruckandauxiliarycomponentsfortransmissiontoacentralizedrepository.Thistechnologyenablesgreatervisibilityintothelifttruckfleetoperation,allowingdiscovery—andcorrection—ofvariousfleetutilizationinefficiencies.

Optimize assets


● Measure fleet size, configuration and usage – Monitortruckutilizationandbatteryusageforleaner, moreefficientlystructuredfleets.

● Reduce maintenance and overhead costs – Configurefaultcodestoautomaticallytriggermaintenance functionsorservicecallswithoutrequiringanyactionfromfacilitymanagementormaintenancepersonnel.

● Reduce truck abuse – Monitorimpacthistory,includingidentificationofcommonimpactlocations.

● Reduce risk of downtime – Proactivelyalerttechnicianstoservicerequests,whichcankeepminor issuesfromturningintobigproblems.




14

SKUproliferationpressuresoperationstostoreawiderrangeofever-changinginventory.Assuch,intelligentlystructuringstoragesystemsandpickaislestofacilitateefficientinventorymovementiscriticallyimportant.Thisrequirescollectingandanalyzingorderprofilesandexpecteddemandtooptimizespaceandlaborutilization.

Togetherwithurbanization,SKUproliferationdriveswarehouseoperationstobuildupratherthanout.Understandingcurrentspaceandgrowthtrajectoriescanhelpinformequipmentpurchases–likenarroworverynarrowaislelifttruckmodels.

Buttoday’sworldchangesfasterthanever.Fidgetspinnerssurgedtopopularityinamatterofmonths,accountingfor17percentofdailyonlinetoysalesinlateMay 2017 .Real-timedatafrompoint-of-salesystemsprovidesthedata-drivenbackbonetoinformstorageandfulfillmentstrategies,andtheup-to-the-minutevisibilitytoadapttonewlypopularitemsandrapidlyrisingdemand.

Maximize use of limited warehouse space





http://fortune.com/2017/06/13/the-fidget-spinner-trend-is-ending-and-you-missed-it/

http://fortune.com/2017/06/13/the-fidget-spinner-trend-is-ending-and-you-missed-it/

15

TheproliferationofconnecteddeviceshastransformedDCsfromopaqueboxeswithinsufficientvisibilityofinventorytoatransparenthubthatoffersdetailedupdatesoforderstatus.

RFIDtechnologycantrackpalletsandindividualcasesthrougheachstepofthesupplychain,fromsourcingrawmaterialsandproductionsites,todistributioncenter,retailoutletsviadirect-storedeliveryandultimately,theconsumer’sdoorstep.Thistraceabilityisvitalinsourcingfoodborneillnesses,locatingmanufacturingdefectsandidentifyingcomponentfailure.

Foroperationsfeelingcompetitivepressuretoprovidespeedydeliveryofvirtuallyanyproduct,thisenhancedvisibilityandmoreefficientoperationiscriticaltohandlingcontemporarychallenges.Takeanorderthatincludesapairgloves,ascarfandahat.Shippingratesincentivizeretailerstopackandshiptheseitemstogether.However,thatpressurese-commercefulfillmentoperationstofindthemostefficientwaytobringtogethermultipleitemsfromdifferentlocationsofthewarehouseforshipment.

Increase the potential velocity of fast movers


Alotofthebigdatathatcompaniesaccumulatenowaddressesthesechallenges,helpingcompaniesdeterminehowtooptimallypositiongoodsthatareoftensoldtogether.Thisenableseasyorderconsolidationandavoidsalengthyreunionacrossthousandsoffeetofwarehousespace.




http://www.practicalecommerce.com/How-to-Manage-UPS-FedEx-Dimensional-Weight-Pricing

16

Corporateresponsibilityreportinghasbecomemorewidespreadinrecentyears,andforgoodreason.Companiescanusereal-timedataandanalyticstoolstotrackactionsaffectingpeople,theplanetandprofitswithgreateraccuracy.

• Promote safe behavior – Telematicssolutionsoffer self-managementcapabilitiesthroughspeedandimpact informationtofurtherincentivizesafeoperatorbehavior.

• Reduce carbon footprint – Operationalneedsand optimalshippingschedulescanbeanalyzedtoreduce excesstransportationcostsandemissions.

• Lead the pack – Companiescannowcompareindustry benchmarksonsupplychaintransparency,environmental impact,humanrightsandothercorporategovernanceinitiatives.

Foster data-driven accountability





17

Increase visibility throughout the supply chain

OneofthemostimportantbenefitsoftheIIoTandconnecteddevicesisvisibility.Inadditiontooptimizingequipment,processesandlaborwithinawarehouse,itsuseextendsbeyondthefourwalls,creatingintersectionalopportunitiestoincreaselaborproductivitythroughoutthesupplychain.Thankstobigdata,linearsupplychainsareevolvingintocomplex,dynamicandconnectednetworks,basedontheexchangeofinformationthatdrivesincreasinglyefficient,moretransparentmanufacturing,distributionanddirectstoredelivery.





18

HOW MUCH OF A PRIORITY SHOULD YOU MAKE THE IIOT? AND HOW QUICKLY WILL IT PAY OFF?




19

Today’swarehouseandsupplychainmanagersdonothaveexcesstimeontheirhands–infact,it’squitetheopposite.

AccordingtotheGeneralElectricIndustrialInternetInsights2015report,80to90percentofrespondentsindicatedthatbigdataanalyticsiseitherthetoppriorityorinthetopthree,butonly43percentclaimedtheycurrentlyengageinbigdataanalysis.Nowisthetimetotakestepstowardsimplementinganalyticsolutionstoprotectandgrowmarketshare.

Whilethepainofchangeisusuallyfeltmostdeeplyatstartup,thelong-termbenefitofsuchinvestmentisclear.Addingbigdataanalysiscantransitionorganizationsfromreactiveintopredictiveandautomatedenterprises.OperatingasmartDConthecuttingedgeofbigdataandtheIIoTalsohelpsattractmorequalifiedtalent—avitalbenefitinanindustrythatstrugglestofindandretainlabor.

How much of a priority should you make the IIoT? And how quickly will it pay off?

WhatistheIndustrialInternet ofThings?

80-90%of companies list big

data as a priority

43%are currently engaged

in big data analysis




https://www.accenture.com/t20150523T023646__w__/us-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Dualpub_11/Accenture-Industrial-Internet-Insights-Report-2015.pdf

20

HOW CAN YOU PROTECT YOUR NETWORK AGAINST CYBERSECURITY THREATS?




21

Understand the importance of cybersecurity

AGartnerstudyindicatesthatmorethanhalfofmajornewbusinesssystemswillincorporatesomeelementoftheIoTby2020.Asgeneratingandsharingdigitalinformationbetweenorganizationsandsuppliersbecomesincreasinglyprevalent,keepingthisdatasecuremustbeatoppriority.Afterall,greaterintegrationandconnectivitypointscanmeanagreaterriskofvulnerability.Justoneattackcontainingasingularpieceofmalwareisallittakestowreakhavoc,hinderingproductionanddamagingacompany’sreputationasasecurebusinesspartner.

In2013and2014,maliciouscyberattacksstrucklargeretailersacrossseveralindustries,fromofficesuppliesandgrocerytohomeimprovementandgeneralmerchandise.Bytargetingpoint-of-salesystems,thesedatabreachesexposedthepersonalandfinancialinformationofhundredsofmillionsofcustomers.Thedamagewassignificant,withretailersonthehookforsignificantfinancialdamagestobothconsumersandbankinginstitutions,andsufferingheavyblowstotheirreputationsintheeyesofconsumers.



101

In 2018, cybersecurity spending is predicted to soar to $101 billion. And by 2020, spending is expected to reach $170 billion.


How can you protect your network against cybersecurity threats?

https://www.gartner.com/newsroom/id/3185623

https://www.bloomberg.com/news/2014-10-21/which-big-retailer-hasn-t-reported-a-major-breach-yet-.html

https://www.bloomberg.com/news/2014-10-21/which-big-retailer-hasn-t-reported-a-major-breach-yet-.html

https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/stevemorgan/2016/03/09/worldwide-cybersecurity-spending-increasing-to-170-billion-by-2020/&refURL=&referrer=#55708e9b6832

https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/stevemorgan/2016/03/09/worldwide-cybersecurity-spending-increasing-to-170-billion-by-2020/&refURL=&referrer=#55708e9b6832

22

Know the risks: Collaborate with vendors and avoid weak links

Cybersecuritycannotbeviewedasasolelyinternalventure,butratheracollaborativeeffortthroughouttheentiresupplychain.Everyentityacompanydoesbusinesswithcanposeathreat,asdatalossandcompromisesviathirdpartiesareagrowingproblem.

Companiesareonlyassecureastheirweakestpartner’scybersecurityprotocols.BuildingasecurefoundationrequiresextensivevettingandsecuritystatementsfrompotentialpartnersineveryRFPandcontract.Afterall,thehigh-profiledatabreachescouldnothavebeenpreventedbyin-housesecuritymeasuresalone.Inonecase,hackersgainedentrytopoint-of-salesystemsviastolencredentialsfromathird-partyHVACvendor.

Inthewarehouse,theWMSisaprimeobjectiveforcybercriminals.Avulnerabilityhererisksbringingthroughputtoahaltandexposingsensitiveinformation.Likeallotherbusinesssystems,warehousesoftwareshouldbebehindasecurefirewall.

59% of companies do NOT have a process for assessing cybersecurity capabilities of third-party providers with whom they share data or networks.



59%



https://www.rsaconference.com/writable/presentations/file_upload/grc-w03_integrating_cybersecurity_into_supply_chain_risk_management.pdf

23

Be proactive and secure against data loss and compromise

Ascyberattacksbecomemorecommon,thecybercriminalswhoperpetratethembecomemorebrazen,skilledandrelentless.Stavingoffsuchadvanced,persistentthreatsleavesnoroomforcomplacency.Mountinganeffectivedefensetakesproactive,robustsecurityprotocolssupplementedbyongoingvulnerabilityscans.

Thefollowingprinciplescanlaythefoundationforareliablecybersecurityeffort:

Educate everyone at every level –Manydatabreachesaretheresultofoverlookingcompliancerules.Startbytrainingemployeesateveryleveltovaluetheimportanceofcybersecurity.

Maintain communication across the supply chain –Remember,whileanattackisgenerallyonlysuccessfulattheweakestlink,itcaninterferewiththeentiresupplychain.Supportconsistencyandavoidbusinessdisruptionanduncertaintywithregularcommunicationamongsuppliersandcustomers.

Thoroughly vet vendor security capabilities –Instituteavendorvettingprocessbeforeapprovinganynewpartner.Thispracticeshouldalsoincludeannualreviewsoncompliancewithsecuritystandards.





24

HOW DO YOU GET THERE?




25

InvestmentinITinfrastructurecanbedaunting,sostartsmall,trackROIandscaletowardsgreatercapability.

Identifypotentialholesandthreatstooperationalefficiency,andthensortinitiativesbypriority.Forexample,ifanoperation’sbiggestconcernissafety,theycantrackcommonaccidentlocations.Or,ifintenseseasonalpeaksarethenorm,tracklaborproductivityandutilizationtoplanforovertimeworkers.

Start with simple steps:

• Equip forklifts with data-collecting sensors – Takeadvantageofbasictelemetryfunctions–faultcodes,usagemonitoring, GPS,etc.–andsetupautomatedworkflowstogettherightinformationinfrontoftherightpeople.Thisenablesautomationof fleetmanagement,routeadjustmentandmaintenancedecisions.AccordingtoSupplyChain24/7,puttingavehiclemanagement systemonalifttruckdeliversa5percentincreaseinproductivitybyidentifyinginefficientoperatorbehaviors.

• Add sensors to key operational assets – Sensorsanddetectorscanbeplacedinvariouslocationsonconveyors, sortersandothermechanicalequipmenttocaptureawiderangeofoperationaldata.Smartsystemscanhelpcollectand disseminatecrucialinformationaboutwarehouseoperationsandproductivity,withoutoverwhelmingoperationswithdatathey cannotputtoproductiveuse.

• Make adjustments to the WMS – Datatrackingandanalysiscanbeusedforsimplerinventoryvalidationtodecreaseerrorsand improvemorecomplexdecisionslikedeterminingidealbinlocations.Anotherimportantapplicationofbigdatainthewarehouseis ameaningfulviewacrosstheenterprise.ThemoredatatheWMScaptures,themoreinformationavailabletodrivemoreinformed decisionsandreactquicklytosolveproblems.

Asoperationscollectmoretypesofdatainmorelocations,theycancombinedifferentdatasetsandspecificexperiencestooverallsupplychainmanagement.Choosetherightpartnerwiththerighttechnology,knowledgeandexperiencetoaddressthechallengesindeployingandmanagingasolutionofsuchscale.




How do you get there?

http://www.supplychain247.com/article/the_big_picture_on_big_data/VDC_Research

26

Prepare for Industry 4.0

Industry4.0representstheultimateendgameofbigdata,connecteddevicesandsimilartechnologies.WhileIndustry3.0focusedontheautomationofsinglemachinesandprocesses,Industry4.0focusesonthedigitizationofallphysicalassetsinawarehouse,withroboticsconnectedremotelytocomputersequippedwithmachinelearningalgorithmsthatcanlearnandcontrolequipmentwithverylittleinputfromhumanoperators.

ManyoftheapplicationsofIndustry4.0arestillnotyetwidelyadoptedintoday’swarehouses,butthatchangeseveryday,withdifferentindustriesimplementingbigdataapplicationsatvaryingspeeds.

Whetherusedtoplanlabor,optimizelifttruckfleetusageandmaintenance,enhancesafetyorcreateidealinventoryflow,bigdatainmaterialshandlingcanleadthewaytotremendouscompetitiveadvantages.Furthermore,theearlyadoptersofdigitalDCsofIndustry4.0canhelpsetorinfluencetechnicalstandardsasadoptiongrowsandthesetechnologiesbecomeubiquitous.




How do you get there?