The Real Impact of IoT on Supply Chain. Presented by: Eric Peters, President SensorThink

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1 WELCOME 1

2 The Real Impact of IoT on Supply Chain 2 Presented by: Eric Peters, President SensorThink

3 3 The Digital Platform for the Industrial Internet Changing the way you Think about warehousing

4 Warehouses are a Huge Segment of the Commercial Real Estate Market 4 Size in ft2 Number of Warehouses Less than 10, ,000 10,000-25, ,000 25,001-50,000 49,000 50, ,000 24, , ,000 13, , ,000 7,000 over 500,000 1,000 TOTAL 796,000 58,000 new warehouses were constructed between ,000 warehouses over 25,000 ft2 282,000 warehouse are over 40 years old in the US 273,000 in very cold\cold environment Source: Commercial Buildings Energy Consumption Survey, US Dept. of Energy, May 2016

5 Warehousing is a Labor Intensive Business 5 Employees per Primary Shift Warehouses (000) Shifts per 24 hour Day Warehouses (000) Source: Commercial Buildings Energy Consumption Survey, US Dept. of Energy, May 2016

6 The Warehouse is behind other Industries in creating Smart Facilities 6 Only 30,000 warehouses have a building automation system (BAS) for HVAC conservation. Only 4,000 have a BAS for lighting 65% of warehouses reduce lighting usage when not in use 37% reduce heating usage when not in use 12,000 are refrigerated warehouses in the United States Source: Commercial Buildings Energy Consumption Survey, US Dept. of Energy, May 2016

7 7 What if every piece of Digital Information that is human or machine generated data could be stored in a digital format Devices, Sensors and Automation are going to change the warehouse forever

8 A Technology Shift is Underway 8 Manual Paper Based Environments On Premise Single Function Solutions Functional Software Solutions Digital Solutions 1980 s 1990 s 2000 s Today Digital technologies will enhance your current capabilities. A digital strategy will be needed to transform your environment.

9 The Evolution of IoT 9 The idea behind the Internet of Things was that everything would talk and communicate over the Internet: Original intent was location and identity Progressed to single state decision making Multi-state decision making sensors and devices were developed

10 Automation is Ready to Integrate Into Our Lives 10 Driverless Lift Trucks Robots Connected Thermostats Industrial Cameras Kiva IoT Devices Drones

11 11 Customer expectations are shifting

12 12 Lower Cost Perfect Orders Faster Delivery Total Transparency

13 Everyone is completing against the Amazon model 13 Next Day delivery is becoming the norm Shipping costs are approaching zero Customers search for the lowest cost Customers want convenience How do you survive?

14 14 You must transform to survive.. And it all starts with information

15 Today We Have Pockets of Information in the Warehouse 15 Lift Trucks Building Automation Security PLCs WMS Robots Nothing is shared between systems, yet each system touches the worker and impacts productivity and cost.

16 16 It is difficult to move forward without seeing all your information

17 We Want the Perfect Solution 17 Worker + Environment + Equipment that meets customer demands = The Optimal Answer

18 We Need a Digital Platform 18 A platform can bring all the information together to create the perfect solution. Higher worker productivity Lower operating costs Ability to sustain growth and change Superior customer satisfaction Best return on assets

19 19 Digital Information is any human or machine generated data that can be stored in a digital format

20 How A Digital Platform Works 20 TWES MHE Safety & Security BAS Asset Manage ment WMS LMS Digital Platform Cloud Based Analytics Analog and Digital Information A platform will collect, cleanse and harmonize your information and distribute it for use in your operations.

21 Platform Capabilities 21 The platform will capture, process and distribute all of the information in a distribution center and use that information to drive operational efficiencies. Machines Software Applications Cloud Analytics Consumer of Data Event Processing Distribution information to applications and machines requesting data Data Capture PLCs Provide Plug and Play through pre-built adapters to put all clean information into a universal schema 3 rd Party Software Motors Devices Sensors

22 What This Enables 22 A digital platform will support: Plug and Play IoT Machine to Machine Learning Advanced Analytics to Improve Operations Security Management of Robots and Automation WCS for your Material Handling Equipment Building Automation

23 New Capabilities Emerge 23 Directly measure the impact of environmental conditions on work. Provide a complete picture of worker tasks to continually update and optimize your LMS standards. Real-time visibility into every digital action in the warehouse. Integrated worker security with worker activity. Control tower capabilities across all of your facilities. One integration point to all technologies in the warehouse. Ability to support automation and IoT and seamlessly integrate technology into operations.

24 Some Questions You Didn't Know To Ask Can Now Be Answered 24 Are certain packages easier to pick? What causes picking errors? Who are the most efficient lift truck operators and why? Optimal environment for maximum productivity? What tasks are employees best suited for? What is the total cost per unit? How does lighting effect performance?

25 The Benefits 25 Total Operational Visibility Continual Productivity Improvement Ability to manage and reduce costs Plug and play sensors and devices Execution integrated with Analytics

26 Data Analytics 26

27 THANK YOU 27