Mobile Technologies in Supply Chains
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1 Maciej Szymczak Department of International Logistics Poznań University of Economics & Business Mobile Technologies in Supply Chains and the concept of smart convenience
2 Agenda» Introduction» Some clear trends» The purpose of the lecture» Drivers of application of mobile devices in supply chain management (SCM)» Mobile SCM» Smartphones and the supply chain» The case of Homeplus» The concept of smart convenience» The case of Total Quality Logistics» Coming to a conclusion at the future store
3 First things first Smartphones Tablets lumiaconversations.microsoft.com Laptops & convertibles Specialized terminals
4 Introduction» We all use mobile devices» The game started with mobile phones» They are getting smarter and smarter» Mobile phones became smartphones» New kinds of devices came up» Cellular networks develop as well» New opportunities arise
5 Evolution of mobile devices From mobile phones From portable PCs To smartphones To laptops To phablets To notebooks dayintechhistory.com liliputing.com laptops.techfresh.net To tablets & convertibles
6 What makes mobile devices smart?» Powerful microprocessors» Lots of memory» Touchscreens» A lot of built-in devices» Built-in sensors» Extended connectivity» New services, new apps
7 Smart means more applications» Office on the move» WAN/LAN terminal» Multimedia player/recorder» Game console» Navigation map/guide» Measuring device» [ ]» Looking glass» Torch en.wikipedia.org letssandbox.com
8 What can be observed?» At the end of 2012 almost ¼ of Internet traffic was generated by mobile devices, which is 84% against the previous year and 283% (!) against data recorded almost two years ago (Siwicki 2013).» In % of Internet traffic will be generated in mobile networks (Wi-Fi, cellular) (Cisco 2015).» 64% of American adults now own a smartphone of some kind, up from 35% in the spring of 2011 (Pew Research Center 2014).» Over half of consumers in Germany now use a smartphone compared with 41% in 2013 (BITKOM 2014).» In Poland every third cellular phone is a smartphone (TNS Polska 2014).» Smartphones are the most popular mobile devices used in supply chain management (Napolitano 2011).
9 Do we really need smartphones?
10 The purpose of the lecture is to describe the potential areas in supply chain management mobile devices can be used in, compared to the current trends.
11 Drivers of application of mobile devices in SCM» the need for internal integration of business processes» the need for external integration of business processes» globalisation» the need for real-time information» new business processes» reduction of business costs (Ruhi and Turel 2005)
12 Mobile supply chain management The popularity of mobile solutions in supply chain management is already so high, that one can use the term mobile supply chain management.
13 Supply chain management areas to become mobile» Retailing» Warehouse management» Inventory management» Shelf management» Shop-floor management
14 Where in the supply chain are smartphones used? Shopping for transportation services Tendering shipments to carriers Executing transactions in TMS/WMS Tracking/tracing orders and shipments Accessing performance dashboards and reports Signature capture Transmitting proofs of delivery Taking and transmitting photos of delivered goods Bar-code scanning (Cooke 2011) 0% 5% 10% 15% 20% 25%
15 Smartphones, social media, and the supply chain» Social media generates a huge amount of network traffic» This determines its marketing potential and has an impact on supply chains as well» Now social media integrates with ICT supporting SCM» There are a number of areas where social media can be used in supply chains» There are already some good examples of using social media for logistics and supply chain management
16 The case of Homeplus / Tesco (South Korea)» In June 2011 Homeplus opened a virtual store at a subway station in Seoul» The concept incorporates posters, QR matrix barcodes, and customers smartphones» Shopping is extremely comfortable» Homeplus held the position of the second retailer in South Korea, now is the first» Other retailers followed in the footsteps of Tesco» Still others are going to do so kaltim.tribunenews.com
17 Smart convenience is the concept of unification traditional shopping in a store with on-line shopping, with the preferred use of mobile devices; a concept that incorporates various practices of distributors and retailers selling fast-moving consumer goods (FMCG), especially foodstuffs.
18 Internet grocery shopping» ¾ of UK consumers use the Internet for grocery shopping» In Germany people still prefer traditional ways of grocery shopping» In Poland online grocery shopping remains a dream
19 The way towards smart convenience» Convenience stores» Strip malls / mini-malls» Leisure-oriented supermarket» Personalised supermarket» Technology-driven supermarket suncitycenterphotos.com
20 supermarketnews.com Home Plus followers Yi Hao Dian (China) (USA) (UK) (Australia) (Belgium)
21 More smart convenience examples (1)
22 More smart convenience examples (2)
23 Follow-up pilot / part-time projects» in Moscow» in Poznań» in Prague» in Warsaw
24 Smart convenience in services» IdeaBank s on-demand service with a moving ATM» Fleet of BMW i3s with a built-in ATM» Real purpose behind the service is to benefit entrepreneurs and business operators» It saves the time and effort of making an extra journey» 80% of them make nightly cash deposits
25 IdeaBank s app and the area of service
26 Modes of smart convenience (1) Mode 1 Ready-to-eat lunch boxes, precooked foodstuffs; optional delivery Order placement, visit to a store Self-service or on-line order Store Customer Mode 2 Order placement Order picking, packing, loading On-line order, self-collection Store Collection point Customer Mode 3 Store Service centre Order placement Order picking, packing, delivery Customer On-line order, door-to-door delivery
27 Modes of smart convenience (2) Mode 4 Store Order picking, packing, loading Virtual store in urban space Order placement Customer Order on the move, door-to-door delivery Mode 5 Store Order picking, packing, loading Order placement User service Smart fridge Customer Smart household appliance Automatic ordering, door-to-door delivery
28 The case of Total Quality Logistics (USA)» A smartphone app streamlines cooperation between vehicle owners, carriers, and 3PLs» Freight Finder is available for Android and ios operating systems» It complements the corporate IT systems allowing out-of-office work» The application uses location-based services and a GPS receiver» It integrates many telecommunication services
29 Instead of a conclusion» According to Canalys 2.61 billion mobile devices will be marketed in 2016.» Smartphone sales are expected to grow each year by 17,9% and to double the figures of 2012.» It is projected that smartphones will gain half of total share in the mobile device market. That means 1.34 million pieces.» The game commences...
30 And one more thing
31 A few vital questions» Do you think the future store is convenient and smart?» Would you be afraid of shopping in the future store?» Where does personalizing customer experience end and where does spying on customer behaviour begin?» Which technology shown would you probably like the most as shoppers?
32 Thank you for your attention.
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