Accelerating Change

How the innovation is driving the always on supply chains

Based on the 2016 MHI Industry Report

www.mhi.com

Alberto Joel Martinez CPIM CSCP

Presidente APICS Capitulo Mexicali
Noviembre 2016
Accelerating Change
Agenda
What is the Always ON Supply Chain
Examples of Old and New SC
What is driving The digitalized supply chain and challenges
8 technologies driving the always on supply chain
Examples of each tech
Suggestions for the leaders
How to prepare here in the Region
Q&A
The Always ON Supply Chain
An integrated set of
supply networks
characterized by a
continuous high velocity
flow of information and
analytics creating
predictive actionable
decisions to better
serve the customer
Integrated supply chain

Apple has the best

supply chain for 10
consecutive years per
the Gartner research
group, they been
elevated to Master
Supply category
Disrupting the business model
Technology driven
innovations
Computing power
Artificial Intelligence
Moores Law

The iphone has 1000 more

computing power; than the
computers that put a man
on the moon
From physical to digital
Information as a key asset
Geo space not as Important
A.I. do the data mining
Consumers create data
To Generate:
Predictive Analysis
Streamline Ordering
Anticipatory Shipments
Eight disruptive technologies
1. Predictive analytics
2. Robotics and automation
3. Sensors and automatic identification
4. Wearables and mobile technologies
5. Driverless vehicles and drones
6. Inventory network and optimization tools
7. Cloud computing and storage
8. 3D printing
Key Survey Data
 Predictive Analysis
Competitive Advantage for Breakthrough Performance

Is an enabler to the always on supply chains

It difficult to figure out, but once performed will bring great benefits
Has the potential to be a disruptive force in your industry
There is today an abundance of data not used especially in supply chain

What to do ?
Research what companies are doing, whats working ?
Determine ROI of predictive analysis to replace a legacy system
Start Small and work with IT to determine benefits and cost
Listen to the voice of the customer
What we need to know
Data only is valuable if it
modifies future actions
Improves the learning
process
Moves from hindsight to
foresight
Has a clear ROI
Improves customer
experience
 Robotics and Automation
Big Cool Robot Small Collaborative Robot

Rise of collaborative robotics must have alignment to companies vision

Safety issues resolved as robots sense humans
Will replace an assembly worker Cost benefit is a must.
Improved quality reduces variations speeds the process

What to do ?
Proceed with caution challenge engineers to be clear in vision
Go slow, several short steps of a complete automated lights out
Develop your talent strategy, New roles and skillsets needed
Talk and chose the correct partner for robotics implementation
 Sensors and Automatic Id
The Internet of Things for Manufacturing

Is a suite of technologies sensors, communication devices, servers,

analytical engines, devices that can automatically identify items and
decision making aids- that have the ability to link the physical and
information worlds more together, expanding ways to generate value
 Sensors and Automatic Id
Sensors Drive Supply Chains

The customer preferences are always being monitored

More sensors = More data (Cost for sensor have decreased )
Real world applications are now being utilized by mayor retailers
Increased visibility with traditional (RFID Intelligent tags GPS)

What to do ?
Chart a course based on leading practices from others
Consider sensors and applications to support an always on supply chain
Identify supply chain challenges can be solved by the IoT
Consider the cost of not investing, and possible positive impact on customers
The Internet of Things (IoT)
 Wearables and Technologies
On the Warehouse smart glasses

Devices that incorporate in clothing or accessories that can be worn

Wearables enhance existing technologies
Supports hands free censoring and scanning
Still need to develop enhanced ecosystems for full integration

What to do ?
Chart a course based on leading practices from others
Consider sensors and applications to support an always on supply chain
Identify supply chain challenges can be solved by the IoT
Consider the cost of not investing, and possible positive impact on customers
 Driverless vehicles and drones
More at www.deloite.com/us/thefutureofmobility

The 4 future states of technology

1 Incremental Change adaptation cost per mile $1.00 Dlls
2. A World of car sharing Cost per mile $0.65 Dlls
3. A Driverless revolution Cost per mile $.045 Dlls
4. New age of accessibility and autonomy $0.35 Dlls

What to do ?
Explore possibilities, start preparing today for tomorrow
Look for cross industry opportunities or share transportation
The rest

Inventory network and optimization tools

WMS SOP CRM 3PL SCEP
Focuses on integration
Cloud computing and storage
Critical in new roles, access to all data form anywhere
Works as an enabler for all new technology
3D printing
Additive process changes form subtractive manufacturing
Reduces cost of supply chain (Lead time and Inventory)
What we need to know
Suggestions for Leaders
Invest, Test and Learn ( Technology and knowledge)
Partner with solutions suppliers
Determine where to start and how current data needs to be
Make sense of data, so that you can act on it
Bottom Line:
Talent management is key need to start thinking how
technology affect our lives today and how it will be affected in
the next 20 years
To the leaders of the Region
How can we stay competitive ?

Review current technologies in the local market

Invest in developing people and learn to collaborate
CSCP SOP Continue to be key for success
Train to reduce cost Eliminate waste
Be prepared to show the value of Mexico and our people
Here to support Questions ?