Realtime is to late. Smarter, Safer, Faster Espen Braathe Traceability Tiger Team Europe. Smarter planet opportunities are everywhere...

Transcription

1 Realtime is to late Smarter, Safer, Faster Espen Braathe Traceability Tiger Team Europe Smarter planet opportunities are everywhere... safe pharmaceuticals solutions for retail supply chains food manufacturing industrial operations data center healthcare transportation traffic water management cities 2

2 The world is changing and becoming more Instrumented Interconnected Intelligent The explosion of new information, when integrated, analyzed, and acted upon using new types of intelligence, enables solutions that Serialization and the New Era of Visibility The ability to obtain and verify the location, status and history of an item. Pharmaceuticals: Can I be sure my prescription drugs are not counterfeit? Parts: Which parts were assembled in my car and are they authentic? Food: Where does my food come from? Returnable Containers: Do my suppliers have enough containers to meet my production needs? The IBM Supply Chain solution enables customers in multiple industries to answer these questions today. 4

3 Risk Management: Product Authentication & Diversion Detection Challenges High risk of product counterfeit and diversion High theft Protecting brand identity Increased inventory stock Benefits Minimize lost revenue due to counterfeits Minimize lost revenue due to diversions Increase patient and consumer safety Brand protection and risk mitigation WHO estimates counterfeit drug sales between $35 and 40 billion per year Between 8 and 10% of the worldwide drug supply is estimated to be counterfeit By 2010, more than $75 billion of sales will be lost per year Leveraging Track and Trace in the Pharmaceutical Industry, IBM Whitepaper 2009 Companies can identify counterfeit or stolen product entering their supply chain 5 Risk Management: Targeted Recall Challenges Inability to execute a targeted recall Time, cost and effort to recall product Lost revenue Risk to brand identity Benefits Execute a targeted recall quickly and efficiently Enable a targeted recall over a full recall Track progress of recall Companies can quickly identify where product has been shipped and efficiently execute a targeted recall 6

4 Operational / Performance Inefficiencies: Supply Chain Visibility Challenges Lack IDC notes the pharmaceutical industry loses 4.5% of revenue 6 of supply chain collaboration Lack of interoperable systems Insufficient traceability IDC notes the pharmaceutical industry loses 4.5% of revenue * due to supply chain inefficiencies * IDC Home: The Premier Global Market Intelligence Firm. 11 February Benefits Increased shipment accuracies Reduce handling cost for discrepancies Reduce working capital requirements Ensure inventory levels are maintained to meet market demands Reduce spoilage Better forecasting Increased operational efficiency Companies can optimize their business processes driving operational efficiency and reducing costs 7 Operational / Performance Inefficiencies: Cold Chain Management Challenges High spoilage Lack of compliance validation Benefits Improved product efficacy and safety Reduced spoilage Proof of SOP regulatory Track temperature and shelf-life data IMS Health reports worldwide sales of biologic medications, which require temperaturecontrolled storage and shipping conditions, increased by 12.5% in 2007 $75 billion Nearly double the 6.4% increase in sales of traditional pharmaceuticals Companies can increase product safety and prevent spoilage due to inefficient processes 8

5 Operational / Performance Inefficiencies: Returnable Container Management Challenges High investment Cost to replacement Lack of monitoring High safety stock requirements Benefits Reduce Costs Reduce returnable asset inventory by up to 40% Eliminate between 10-15% of safety stock Sharply reduce substitution costs Increase Operational Efficiency Eliminate potential shutdowns Increase asset utilization Optimize operation processes through trading partner collaboration Reduce Risk Reduce asset counterfeiting Reduce product counterfeiting Protect investment Container Flow for Manufacturers New containers OEM Plant 1 Plant 2 3PL Scrap Supplier A Supplier B Supplier C 9

6 Xylinke Trusted Physical Data is Converted into Usable Information Reporting & Analytics End-to-end Traceability Inventory Visibility Temperature Tracking Xylinke Blood Thinner Business Benefits Increased supply chain visibility Reduced counterfeiting and diversion Increased Consumer Safety Increased efficiency for conducting recalls and returns T R U S T E D I N F O R M A T I O N Pharma Manufacturer Distribution/ Export Retailer / Hospital 11 Smarter Supply Chain Architecture Supply Chain Visibility Events are captured at various points in the supply chain, stored in a in a secure traceability network and can be shared with trading partners InfoSphere Traceability Server InfoSphere Traceability Server InfoSphere Traceability Server Manufacturing Plant Distribution Center Distribution Center Retail Location 12

7 Serialization RFID 1D Barcode A unique number placed on an item/case/pallet names can be changed through the supply chain Serialization provides common global identifier Serialization can be applied via RFID, 1D, 2D Barcode, or human readable 2D Barcode 13 Types of Data WHAT Manufacturing Data Lot/Batch Expiration Environment Data Temperature Transactional Data PO Invoice InfoSphere Traceability Server WHERE Location City/State Country/Region Store # Dock # Port # WHY WHEN Business Process Receipt Ship Timestamp 14

8 1 5 GS1 - En global organisasjon Land med en GS1 Medlemsorganisasjon Land betjent direkte fra GS1 Global Office (Brussel) 108 Medlemsorganisasjoner Brukerdrevet organisasjon Non-for-profit 30 års erfaring GS1 Norway har i dag ca 5000 brukere og er representert i mange bransjer GS1 Smart Centre: En møteplass for effektiv handel og logistikk Brukerorientert Non-for-profit Partnersamarbeid Synliggjøre nytteverdi Testing Kompetansebyggende Bruk av globale standarder for: Identifikasjon (produkter, aktører og forsendelser) Datafangst (strekkoder, RFID) Datadeling (elektroniske meldinger)

9 The value of Business Visibility Quick Wins Through Data Automation Long Term Wins Through Structural Process Transformation RFID (Auto-ID) Visibility Measurability Business Process Accurate & Efficient Information Information About Working, Not Working Where is It Working, Not Working? Improve the Way of Working Improving visibility is a pre-requisite to improve the Way of Working & to deliver Business Savings Carlo Nizam, Head of Value Chain Visibility & RFID, Airbus Business Savings EBIT, Cash, Cost Avoidance Standards Based Solution Components Standard Network Architecture Solution Architecture GS1/EPCglobal Certification Alternate Solution Architecture Internal Applications External Applications epedigree Shipment Verification Business Analytics Vendor C EPCIS Query Interface EPCIS Query Interface EPCIS Query Interface EPCIS Event Repository InfoSphere Traceability Server Vendor B EPCIS Capture Interface EPCIS Capture Interface EPCIS Capture Interface EPCIS Capture Application WebSphere (Systech, Sensor Event Server Optel Vision, Siemens, ) Vendor A ALE Interface ALE Interface ALE Interface Filtering & Collection WebSphere Sensor Event Server Vendor A Reader Protocol Reader Protocol Reader Protocol Readers/Scanners Readers/Scanners Readers/Scanners 18

10 The World will be Consumers of the NEW INSIGHTS 1) How do I know if this product is on the recall list? 2) Has this product been mislabeled and contains a ingredient I am allergic to? 3) How can I trust that this food in fact organic? 4) How can I remember to eat this product before it expires? 5) Where was this product manufactured and distributed? 6) How do I know if this product genuine or counterfeit? 19 Supply Chain Visibility and Optimization for a planet Example of Traceability Application Importer/ Distributor Received: 9/18/09 Shipped: 9/20/09 Exporter Received: 9/10/09 Shipped: 9/15/09 Retailer Received: 9/22/09 Manufacturer Created: 9/01/09 Shipped: 9/03/09 IBM Sensor and InfoSphere Solutions IBM Corporation

11 New Insights The Power of Analytics to Gain Efficiencies Xylinke Xylinke Blood Thinner 21 Predictive Analytics Methodology Analyze ALL forms of data to provide insight and predict the future Understand Sales Data Customers Suppliers Surveys Transactions Web Logs SPSS Predictive Analytics Store new data on customers, sales etc. for continuous improvement Predict Recommend the most appropriate action to take Decrease promotion costs Customer segmentation Customer Satisfaction Cross / Up Sell offers Act People & Business Data & Enterprise Data Sources 22 Decision Optimization & Automation 2009 IBM Corporation

12 Thank you for your Attention Smarter, Safer, Faster InfoSphere Traceability Server IBM Software Group