MEGATRENDS in Logistics & SCM Speaker: Terry Lee (V Chair, SMIT)

Digital transformation of warehouse using drones Drones in the warehouse for auto cycle counting system, What are the advantages? Digital transformation of warehouse using drones

Reduction of manpower costs There are 3 financial benefits of using drones/robots to do stock-taking to a warehouse operator: Reduction of manpower costs 2) Reduce pilferage and loss of goods as cycle-count is taken more regularly 3) Better accuracy and higher visibility of stock levels as time taken for cycle-counting is greatly reduced. This will directly result in higher sales revenue, as operational efficiency is increased.

AMAZON ROBOTS can move and deliver thousands of inventory 500 times faster than the human being can perform. Using data analytics, the robots can deliver with zero defects to the customers. Picking is done whereby robots come to the picker.

Megatrends: Automation of delivery vehicles What are the advantages?

Disruptive Innovation What did Uber taught us? Disruptive Innovation The world largest taxi company without a taxi is disrupting the SCM industry. It is NOT UPS, NOT FEDEX, NOT DHL who will disrupt, but NEW MODELS for disruption in the logistics industry New models in technology companies: work smarter, plan better, and foster more intelligent decision making processes

How the Internet of Things Impacts Logistics and Supply Chains? Enhancing In-Transit Visibility Products are handled and transferred between the manufacturer, suppliers, the distribution center, retailer, and customer. This many nodes in the supply chain calls for an agile and informed supply network in regards to product whereabouts Cloud-based GPS and Radio Frequency Identification (RFID) technologies provide identity, location, and other tracking information. Data gathered from GPS and RFID technologies able to automate shipping. and delivery by exactly predicting the time of arrival; they can monitor important details like temperature control, which impact the quality of a product in-transit.

IoT can help supply chain professionals: ◾Reduce asset loss. Know about product issues in time to find a solution. ◾Save fuel costs. Optimize fleet routes by monitoring traffic conditions. ◾Ensure temperature stability. Monitor the cold chain – according to the Food and Agriculture Organization of the United Nations, about one third of food perishes in transit every year. ◾Manage warehouse stock. Monitor inventory to reduce out-of-stock situations. ◾Gain user insight. Embedded sensors provide visibility into customer behavior and product usage. ◾Create fleet efficiencies. Reduce redundancies – deadhead miles account for up to 10 percent of truck miles

END Thank you