1. Supply Chain Integration: Insights into IOT/Industry 4.0
David Eyes

2. Internet of Things (IOT)
The network of physical devices such as Vehicles, Home appliances, Any item imbedded with electronics, software, sensors, actuators and connectivity which enables these objects/devices to exchange data.

3. Industry 4.0
What is Industry 4,0: aka Factory of the Future, Smart manufacturing or the Digital Enterprise Industry 4.0 is the current trend of automation and data exchange in manufacturing technologies.

4. IOT and Industry 4.0 are enablers
Big Data

5. Realisation and imagination is the key
Many forms of IOT big data creation are fully imbedded, we just haven’t realised it yet.
World's fishing fleets mapped from orbit
More than fishing vessels in the world
Each vessel is equipped with Automatic Identification System (AIS)
AIS pushes out information on position course and speed every few seconds

6. Realisation and imagination is the key
85% of Global fleets came from 5 countries.
the analysis recorded over 37 million hours of fishing.
vessels consumed 20 billion kilowatt hours of energy and travelled a total of more than 460 million kilometres.
That's 600 times the distance to the Moon and back.
AIS data is yielding information on maritime trade routes and shipping corridors and on trade flows for decision-making,

7. Changing Demand Landscape
Historic supply chain, as captured by L. S. Lowry in 1955

8. Changing Demand Landscape
Modern supply chains
Digital Integration

9. Changing Demand Landscape
1926:
2016:

10. Fulfilling Customer Requirements is Key
Tier 1
6500 partners
1.6 trillion products
Tier N ???
OEM
65,000 vehicles
DATA
FLOW
Tier 2
34,000 partners
How many products?

11. Impacts of a More Disparate Supply Chain
Demand risks
Financial risks
Business risks
INCREASED COMPLEXITY
Supply risks
Manufacturing risks
Environmental risks
Political risks
Planning and control risks

12. Supply Chain Disruption
Zero incidents
15%
56%
16% 6% 4% 3%
Between 1 and 5 incidents
Between 6 and 10 incidents
Between 11 and 20 incidents
Between 21 and 50 incidents
More than 51 incidents
Zurich (2011)

13. Leading causes of disruption
Adverse weather
Unplanned IT outage
Transport network disruption
Earthquake / tsunami
Failure by an outsourcer
Highlight examples – “loss of talent/skill” is the lady “doing EDI” on her laptop!
Loss of talent / skill
Report from:

14. Findings
85% of companies surveyed had at least one supply chain disruption
For 17% of respondents, the financial cost of the largest single incident totalled a million or more $
40% of disruptions were below Tier 1
Supply chain incidents led to a loss of productivity for almost half of businesses, along with an increased cost of working (38%) and loss of revenue (32%)
Longer term consequences included shareholder concern (19%), damage to reputation (17%) and expected increases in regulatory scrutiny (11%)
Zurich (2011)

15. Modern example of IOT and Industry 4.0 in practice.
Connecting the Human Workforce.

16. The results are staggering
Picking performance went from 10 p/h to 25 p/h and its still getting better
We were able to do more work with 13 connected operators than we previously achieved with 30 paper controlled operators
35% decrease in operational costs
Picking accuracy has increased to 99.8 %
Improved safety, Now operators are practically hands free when moving goods, No Paper, Clib boards, Pens ,Hand held Scanners
97% reduction in training time.
ROI achieved in 3 months instead of planned 9 months
Process was then expanded to Lineside inspection process.
ROI achieved in 1 month
30% reduction in inspection time and data recall, due to removal of Paper, Inspection check list and manual data entry.

17. Survey Insights: The US market
50% of companies have an ERP, but do not use Digital Integration
Reasons include:
Demand for Digital Integration
Expense
Competence
Capacity

18. Questions