Subject Do we need more public investment in
Subject Do we need more public investment in transport infrastructure? Simulation Optimisation Methods in Supply Chain Applications Digital Transformation in Supply Chain Q & A Lecturer Tom Ferris Position Consultant and former Chief Economist with the Department of Trade, Tourism and Sport. Dr Waleed Abo- Senior Lecturer, School of Management, Hamad DIT Michael Lynham Vice-President Global Relations, Trinity College Pat Treacy CEO CILT Ireland Duration 15 mins 10 mins ‘Promoting Professionalism in Logistics, Transport and Supply Chain ’
European Supply Chain Day 2017 Expert Lecture Series Twitter Facebook Linkedin @CILTIRL CILT Ireland #europeansupplychainday
Digitalisation of Supply Chains By Michael Lynham HND BA [Hons. ] MSc. MMII
Michael Lynham HND BA [Hons. ] MSc. MMII Immediate Past Marketing & Business Development Manager with the Chartered Institute of Logistics & Transport Ireland [CILT] Part-time lecturer with CILT Currently in the Office of Vice President for Global Relation at Trinity College Dublin Email: micklynham@gmail. com ie. linkedin. com/pub/micheal-lynham-mmii/82/b 69/594/ • @Mick. Lynham
Content 1. 2. 3. 4. 5. 6. Supply Chain Ecosystem The Evolution of the Supply Chain Drivers of Digital Transformation Industry Research Digital Supply Chain - 8 Key Components Case Study - Nespresso
Supply Chain Ecosystem • Standardised Process – Product – Customer • Next few years – Changes within Supply Chain • Advent of Digital Supply Chain • Information available in real-time • Objective of Digital Supply Chains – Built a new supply network = Resilient & Responsive • Digital Supply Chain Ecosystem =REALITY
What is Digitalisation of Supply Chain ? Utilising digital technologies and processes to enable supply chains to be more effectively and efficiently managed, creating business networks and increasing the overall supply chain visibility within the network.
The Digitalisation of every aspect of business. .
The Present State of Digital Transformation in the Supply Chain Key focus areas 1. Inside a single organisation 2. Between organisations and their customers 3. Between organisations and all of their partners across the value chain
Digitally Enabled Supply Ecosystems vs. Traditional Linear Supply Chain
Drivers of Digital Transformation 1. 2. 3. 4. New Technologies Customers Employees Business Partners
Industry Research 75% of organisations say that digital transformation of the supply chain is “important or very important” 50% say that Digital Transformation is “very important” [The study surveyed 337 executives from some of the largest global manufacturing and retail organizations from over 20 different countries around the world]
Industry Research 33% of companies have started digitalising their supply chains 72% of companies expect to be fully digitalised within 5 years [The study surveyed 2, 000 supply chain respondents – PWC, 2016]
Digital Supply Chain – Economic Benefits • Improved Efficiencies by 4. 1% annually • Boosted Revenues by 2. 9% annually
Digital Supply Chain - 8 Key Components The Supply Chain at the centre of the digital enterprise 01 02 03 04 05 06 07 08 Integrated Planning & Execution Logistics Visibility Procurement 4. 0 Smart Warehousing Efficient Spare Parts Management Autonomous & B 2 C Logistics Prescriptive Supply Chain Analytics Digital Supply Chain Enables
Core Elements & New Technologies Integrated Planning & execution • Business Goals of Digital Supply Chain Full Integration
Core elements & new Technologies Logistics visibility – seeing the network B 2 C networks – More information in real time B 2 B networks – Expectations on timely status information which are linked to production plans Requirements for Transparency – Technical & Intelligent human invention
Logistics visibility – seeing the network Single platform Consolidated & enriched with cross referenced information [Social media] Linked within the platform & put through additional analytics and simulation runs
Digitalising the Procurement Function – Procurement 4. 0 • Radically change the tools and talent required, add new categories to be sourced, and transform the value proposition • Critical building blocks – Efficient Integration & Management of suppliers of raw materials • Change is taking place –Utilisation of a variety of big data tools and techniques to connect more closely with suppliers, aid the planning process, improve sourcing, actively manager supplier risk, and boost collaboration.
Procurement 4. 0 Benefits • • Lower Costs Faster Delivery Improved Level of Service Increase Automated processes
Core elements & new Technologies Smart warehousing – robots at work - Strategic Tool Improve efficiently & safety Inbound logistics RFID sensors – Information about what has been delivered Management system – Automatically allots storage space Inside the warehouse – Management software will constantly update in real time Flying Drones – Potential ? Wearables & augmented reality systems
Core elements & new Technologies Smart warehousing – robots at work DHL & Ricoh Augmented Reality System Employees navigate routes via glasses graphic displays RESULTS - 10 order pickers - 9, 000 orders fulfilled - 20, 000 items - Overall picking efficiency increased by 25% - Orders packed by Robots
Core elements & new Technologies Efficient spare parts management – with 3 D printing - Spare parts can be manufactured as needed - Printers , software blueprint & materials BENEFITS - Reduction in spare parts inventories - Reduction in associated costs
Core elements & new Technologies Autonomous & B 2 C logistics – robotic transport - Driverless vehicles - mapping software Other robotics innovations Autonomous truck convoys – Reduce need for humans drivers Internal sensors – Access fleet damage to cargo & maintenance requirements BENEFITS - Reduced human error - Reduced emissions [more efficient operations, routing and convoying of trucks] - Lower labour costs - More reliable delivery times
Core elements & new Technologies Prescriptive supply chain analytics - Big data analytics Sophisticated signals from market [s] Optimise any factors within the entire chain Actively modify the chain Prescriptive data – Scenario planning
Core elements & new Technologies Smart supply chain enablers 01 02 03 04 05 Processes Organisational and skills Performance management Partnering Technology
Case Study - Nespresso • Goal – Provide customers with the perfect coffee experience • Incorporated Technology to achieve this goal • Trigger – Deeper understanding of customers and manage complex buying processes • Utilised – Customer Engagement Solutions [Cloud], Fullfledged sales solution [entire buying cycle; pricing, quotes and orders], external data sources like; social media • Benefits – Greater penetration of markets, higher sales and user adoption and greater visibility. Enhanced business processes. Shorter delivery times [4 weeks]. Single optimised view of their supply chain
Thank You!
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