EMBRACING COMPLEXITY IN GLOBAL SUPPLY CHAINS

Transcription

1 EMBRACING COMPLEXITY IN GLOBAL SUPPLY CHAINS GLOBAL SUPPLY CHAIN & LOGISTICS SUMMIT TIM BROWN MANAGING DIRECTOR SUPPLY CHAIN & LOGISTICS INSTITUTE

2 SUPPLY CHAIN & LOGISTICS INSTITUTE Our Fundamental Pillars

3 Industry Project Support Sponsored Research Contracts Donation-Supported Projects Capstone & Class Projects PhD Projects MS Analytics, MS SCE Capstones BSIE Senior Design Graduate Class Projects

4 WORLD POPULATION GROWTH (UN)

5 GLOBAL URBAN POPULATION GROWTH

6 FUNDAMENTAL CHANGE IN COMMERCE Diminishing role of retail stores Delivery of product directly to consumers Product definition includes a service element o When can I get it? Last mile logistics o Increased complexity!

7 U.S. E-COMMERCE SALES AS % OF RETAIL SALES

8 THE AMAZON EFFECT

9 RAPID FULFILLMENT: SUPPLY CHAIN IMPACT More, smaller DCs (multi-channel facilities), closer to population centers Loss of economies of scale => higher total inventory Urban inventory => higher holding costs Rapid fulfillment => decrease in efficiency Real-time congestion information => increased efficiency Historic customer data => anticipatory/predictive logistics => increased efficiency Larger carbon footprint

10 DATA SCIENCES TRENDS CONVERGENCE OF THREE KEY ENABLERS Advances in Computing (Hardware) Extreme performance via GPU computing Very small and inexpensive Advances in Algorithms (Software) New generation of Machine Learning algorithms Deep Learning and Reinforcement Learning Advances in Sensor Technology (Data) High-performance and inexpensive sensors Large amounts of data Courtesy Benoit Montreuil

11 ADDITIVE MANUFACTURING PROXIMITY PRINTING OF PARTS ON DEMAND hackedgadgets.com MetalFab1 3D Printer: 1.1 M Easy to distribute, near-point-of-use Inbound Materials Logistics is critical 3dprint.com Courtesy Benoit Montreuil

12 AUTONOMOUS TRANSPORTATION PUSH TOWARD DRIVERLESS VEHICLES AND MOBILE ROBOTS theloadstar.co.uk Autonomous Cars & Delivery Vehicles TechOn - See more at: Autonomous Trucks, Platoons/Convoys Delivery Droids & Drones Courtesy Benoit Montreuil

13 INTRALOGISTICS AUTOMATION & ROBOTICS TRENDS FROM HARD STORAGE/RETRIEVAL AUTOMATION TO SMART. MOBILE & SCALABLE FULFILLMENT Amazon FC Rack on Kiva system shuttles Voice & Light Picking Voice recognition Human augmentation Mobile robots Robotic order sequencing & unitizing Collaborative robots Human robot interfaces Robot-to-human & automated order fulfillment Courtesy Benoit Montreuil

14 BLOCKCHAIN IN THE SUPPLY CHAIN REVERSE SUPPLY CHAINS, Issues and Analysis, Edited by Surendra M. Gupta

15 HARSH CLAIM The way physical objects are moved, stored, realized, supplied and used throughout the world is economically, environmentally and socially inefficient and unsustainable Lifestyle E-Commerce World Trade Courtesy Benoit Montreuil

16 PHYSICAL INTERNET CONCEPT Open market goods transport, storage, realization, processing Black box modular containers: transport handling & packaging New generation handling, transportation and storage Protocols for seamless open asset sharing & consolidation Critical mass: vast community of users Service provider certification and ratings-by-users Continuous tracking & monitoring Smart, fact-based proactive, distributed decisions By Benoit Montreuil & Russ Meller

17 ORDER-OF-MAGNITUDE IMPROVEMENTS Without containers With containers Sea shipping evolution over 50 years Handling cost / 14 Maritime trip cost / 4.5 Trucking cost / 1.5 Original drawing by Benoit Montreuil & Eric Ballot

18 ENCAPSULATING GOODS Protect the encapsulated objects Original drawing by Benoit Montreuil & Eric Ballot

19 CONTAINERS AT ALL SCALES 12m 6m 4.8m 3.6m 2.4m 1.2m Transport Containers Modular fit in π-certified vehicles Handling Containers π-boxes Modular fit in transport containers 1.2m 0.8m 0.6m 0.4m 0.3m 0.2m 0.1m Packaging Containers π-packs Modular fit in handling containers 1.2m 0.6m 0.48m 0.36m 0.24m 0.12m Montreuil B.. E. Ballot. W. Tremblay (2015). Modular Design of Physical Internet Transport. Handling and Packaging Containers. Progress in Material Handling Research Vol. 13. Ed. J. Smith et al.. MHI. Charlotte. NC. USA. to appear.

20 HYPERCONNECTED LOGISTICS FACILITIES New generation of logistics facilities enabling seamless, fast, cheap, safe, reliable, distributed, multimodal transport and deployment of π-containers across the Physical Internet Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2014). Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub, p ; Ballot, E., B. Montreuil & C. Thivierge (2014). Functional Design of Physical Internet Facilities: A Road-Rail Hub, p ; In Progress in Material Handling Research Vol. 12, Ed. B. Montreuil, A. Carrano, K. Gue, R. de Koster, M. Ogle & J. Smith, MHI, Charlotte, NC, USA.

21 HYPERCONNECTING TRANSPORTATION Illustrated through semi-trailer transport from Québec City to Los Angeles Los Angeles 40 Barstow 40 Needles St-Louis 70 Indianapolis 71 Columbus 90 Cleveland 90 Buffalo 81 Syracuse Montréal Québec Alexandria Bay, US border Springfield 44 Proposed Tulsa Current Interconnected 44 P2P 40 Oklahoma City Distance travelled one-way: 5030 km 5030 km 40 Amarillo Drivers: Albuquerque Trucks: 1 17 Flagstaff Trailer: 1 1 One-way driving time (h): Return driving time (h): Total time at transit points (h): 0 9 Total trailer trip time from Quebec to LA (h): Total trailer trip time from LA to Quebec (h): Total trailer round trip time (h): Average driving time per driver (h): Average trip time per driver (h):

22 HYPERCONNECTED CROWDSOURCED DELIVERY Courtesy Benoit Montreuil

23 HYPERCONNECTED CROWDSOURCED DELIVERY Having people carry modular containers Using public transit. bicycles. cars. vans in town or across regions Exploiting smartphone based apps Pickup packs at hub near departure Deliver them at hub near arrival, making money Others carry them further toward destination Expanding for freight way beyond current capabilities of Uber for people

24 THANK YOU