Supply Chain Management 4.0. Disrupting traditional supply chain networks

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1 ry colors Supply Chain Management 4.0 Disrupting traditional supply chain networks Session 4 IUBH, 29 October 2015 Götz Wehberg, PhD

2 Lecture schedule Session 1: Complexity and logistics 4.0 ( ) Session 2: Guiding framework and logistics values ( ) Session 3: Big data and basis strategies ( ) Session 4: Networks, transports and other core functions ( ) Session 5: Logistics trends and new business models ( ) Session 6: Logistics evolution and innovation ( ) Session 7: Self-organization and cybernetics ( ) Session 8: Making logistics networks happen ( ) 2

3 SCM services and transactions associated TRANS- ACTION SERVICE Warehousing Transport Picking Collection & seperation Packaging Order mgt. Steering Design & development Change of time X Change of space X Change of quantity X Change of quality X Change of characteristics for warehousing, transports, picking and collection or seperation X Change of logistical determination X Change of degree of coordination X Change of logistics structures X Execution Management Source: Jünemann 1980, Pfohl / Stözle 1992, Göpfert / Wehberg

4 From a central to a more flexible network CENTRAL NETWORK UNSTRUCTURED NETWORK STRUCTURED NETWORK 4

5 Change profile of supply chain configuration KNOTS Big number Jump on next system level Raster system 2. System level Low number Low number Hub & spoke Big number 1. System level CONNECTIONS 5

6 Long tail of logistics sites to be outsourced Core sites Long tail sites # Sites Cost of inventory Fixed cost Transfer cost Cost of delivery Volume 6

7 Impact of goods traffic (& distrib.) centers W/o GTDC With GTDC GTDC New source and target point New source and target point 7

8 Integration along the value chain is key Activity level of industry Activity level of consumers Same-service Activity level of retail 8

9 Use case: Load ramp optimization Current situation Food retailer Strong international growth Regional distribution center Individual offering on site Targets Optimization of value chain Involvement of suppliers and transport service providers De-bottlenecking of load ramp Challenge Complexity of stocks IT integration along chain Integration of suppliers Load ramp as bottle neck To do Which results are realistic? Which method and phasing? Required resources or skills? Key project success factors? 9

10 Use case: Load ramp optimization 1. Definition Festlegung und Dokumentation zu beachtender Standards im Zuge der Belieferung Bspw. Vorlaufzeiten und Zeitfenster für die Anlieferung, Produktkategorien, Verpackungsvorgaben, Palettenqualitäten, etc. Ableitung verbleibender Verbesserungspotentiale Insb. gemeinsam mit den anliefernden Produzenten und Spediteuren 5. Feedback INTEGRATED LOADING PLATFORM 2. Training Weitergabe der definierten Standards Insb. an interne und externe Lagermitarbeiter sowie an die Fahrer aller anliefernden Produzenten und Spediteure Bestmögliche Ausnutzung der automatisierten Prozessschritte Zum Beispiel durch Unterstützung der Fahrer vor Ort an der Rampe 4. Delivery 3. Planning Koordination der konkreten Anlieferungen Insb. mit den anliefernden Produzenten und Spediteuren zur optimalen Kapazitäts-auslastung 10

11 Change profile of transports Multi-modal MODAL SPLIT Uni-modal Broken traffic Trucking of airfreight Combined traffic 3PL Isolated transport logistics Intelligent GV(t)Z Fleet management Internal 3PL E-mobility Integrated transport logistics Transport managementsystem Real-time navigation Unmanned trucks Intelligent carrier Unmanned planes Low TRANSPORT MEAN QUALITY : Example for transport logistics (illustrative) High 11

12 Use case: Internal 4PL Current situation Global mining company Sites in charge of value chain I.e. production & logistics on site Local equipment procurement Targets Sufficient transparency Standardized logistics Synergies & learning Best practice roll-out Challenge Lack of synergies Heterogeneous equipment Missing transparency No learning effects To do Which results are realistic? Which method and phasing? Required resources or skills? Key project success factors? 12

13 Use case: Internal 4PL Dienstleister 2 Dienstleister... Dienstleister 1 Dienstleister N Bereich 1 Speditions- Plattform Bereich 4 Bereich 2 Bereich... Bereich 3 Lager für RHB / Sammelstelle für Wert- und Reststoffe Bereich N : Information, Auftrag und Zahlung (Cloud) : Transporte (selbststeuernd) 13

14 Change profile of packaging logistics Transport packaging FOCUS Zero packaging Intelligent container RFID Flow oriented packaging logistics Intelligent pallet Internet of things Unitization Product packaging DSD Marketing oriented packaging logistics Assembly postponement QR codes low STANDARDIZATION high : Example packaging (illustrative) 14

15 BEHÄLTER wird «intelligent» ibin Würth Lab developed a new system Würth Enterprise ibin - Behälter mit Augenmaß Mit einer integrierten Kamera und im Zusammenspiel mit seiner Cloud zählt der ibin die Teile, die in ihm liegen. Source: 2014 Fraunhofer ten SeiteHompel 5 15

16 Streambed model of stockkeeping STOCKKEEPING I. Stocks cover problems caused by complexity II. Complexity perception through stock reduction III. Complexity management through process orientation : hohe Wahrscheinlichkeit für Vorratsabruf TIME : geringe Wahrscheinlichkeit für Vorratsabruf 16

17 Stockkeeping as ambivalent control loop High stocks Low stocks Long cycle times High planning uncertainty Short cycle times Low planning uncertainty 17

18 Use case: Working capital optimization Current situation Manufacturing company Global production footprint High working capital need Volatile supply markets Targets Make stocks transparent Determine target stocks Implement state of-the-art inventory process Challenge Competitors with less NWC NWC root causes unknown Structurally, not comparable In particular, high stocks To do Which results are realistic? Which method and phasing? Required resources or skills? Key project success factors? 18

19 Logistics 4.0 publication r Branchen der e Tat umzusetehberg diesem tik 4.0 widmet ngsansätze die digital vernetzt in dieses Netzeiner Logistik udierende. Wehberg 1 Logistik 4.0 Virtuelle Netzwerke Big Data Supply Chain Organisation Selbstorganisation CPS Sensorik Götz G. Wehberg Digitale Geschäftsmodelle Internet der Dinge und Dienste Augmented Reality Koevolution Ameisenalgorithmen Mustervorhersage Logistik 4.0 Impact of new technologies on value chain 320 pages at Springer publishing Komplexität managen in Theorie und Praxis See also 19