Take Your Head Out of the Sand - Turn Supply Chain Risks into Competitive Weapons

Transcription

1 Take Your Head Out of the Sand - Turn Supply Chain Risks into Competitive Weapons Presented by: John Reichert Sr. Director SCE Solutions PRESENTATION TITLE 2017 MHI Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

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3 Today s Obvious Risks Omni-Channel Markets SKU Proliferation Fluctuation Energy Costs

4 Not So Obvious Risks Labor demographics Geo-Political Uncertainty Cyber Security Supply Chain Disruptions

5 CHANGING DEMOGRAPHICS

6 Source: Forbes Nov 14, 2013

7 Years Median Employee Tenure Public Private Source: US Bureau Labor Statistics - Sept, 2016

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9 Falling Tenure Risks Challenges labor acquisitions Mandates rapid training Impacts accuracy and decision making Reduces operating efficiencies Affects both blue and white collar labor

10 Take Advantage of Demographic Risks Pro-actively forecast needs AND demographics Current ages / retirement / tenure Trends / projections in operating regions Embrace social media / multi-culturalism / multigenerations Social media becoming the New Unions

11 Take Advantage of Demographic Risks Prioritize User Experience in all systems Advances training, attraction, retention

12 GEO-POLITICAL TRENDS

13 Politics vs Global Trade Protectionism vs Free Trade Changing trade agreements Rapid economic changes in emerging countries Low wage advantages diminish Local demand for goods increase Transportation speed vs cost Swings in cost advantages for local vs remote

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15 Impact of Geo Political Risks Evolving customer demand regions Complexity of regulatory compliance Supply chain disruptions More frequent movement of sourcing / manufacturing

16 Take Advantage of Geo Political Risks Keep informed on transportation data Monitor costs / reliability of alternative transportation Pro-actively forecast /plan for capacity Design supply chain with relocation in mind Speed to shift between on / near / off shoring Flexible infrastructure / automation Flexibility in IT structures Capturing, reporting and tracing data Visibility across the extended supply chain

17 CYBER SECURITY

18 IT Security Risks External infiltration Insider risks BYOD, thumbdrives, cloud services Indirect risks Contractor services IoT Connected devices / services

19 Risk Impacts Company Reputation / Consumer Confidence Class Action Lawsuits Exposed Customer/Company Data Critical Data Loss / Downtime

20 Take Advantage of Cyber Security Risks Collaborate with Trading Partners Share / integrate cyber security protection strategies Establish hot-line protocols for active / suspected threats Develop pro-active IoT strategy Document connected device security access Implement contractor security validation/verifications Create / document rapid market response plans Engage social media positioning

21 FUTURE RISKS

22 Uberization of Labor Virtual Temporary Service Staffing On Demand Scalable Variable costs Remote / Home-Based Labor Supported by IT capabilities Remote QC checks, auditing Virtual call centers Virtual customer site service calls Zero tribal knowledge

23 3D Printing Large Scale Highly flexible More portable Output speeds to increase Small Scale On demand service parts Highly customized parts Exact fit parts Portable

24 3D Printing Supply Chain Disruptions Changes Manufacturing Site Decisions Reduces time to market Transportable Fast change-overs Reduces / Eliminates Inventory Eliminates high cost / slow mover held inventory Disruptive to Service Industry Speeds diagnostics to repair time Immediate precision fit parts

25 Autonomous Vehicles Driverless transportation Point to Point Final Mile Physical Internet

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27 Warehouse Centric Autonomous Vehicles Capabilities increasing Costs dropping Sensors advancing Active Robotics Airborne Capable Specialized Vision Sensors Simple Transport

28 Autonomous Machine Risks Man / machine shared space Human labor acceptance Increased technical labor requirements Loss of fallback human labor options Regulatory compliance

29 Physical Internet

30 Physical Internet

31 Physical Internet Standardized Shipping Containers Modular Interconnecting Intelligent Consolidation Pallets, truckload, rail, ocean Interconnecting Automated Source: Physical Internet Manifesto, version Professor Benoit Montreuil, CIRRELT, Université Laval

32 Physical Internet IP Address Type Transport Network Auto routing / exception handling Easy to add new points Specialized crossdocking Highly utilized cube Source: Physical Internet Manifesto, version Professor Benoit Montreuil, CIRRELT, Université Laval

33 Source: Physical Internet Manifesto, version Professor Benoit Montreuil, CIRRELT, Université Laval

34 Turning Risk to Advantage 3 KEYS AND 1 ABSOLUTE

35 Key #1 Awareness and Planning Pro-active Awareness / Planning Forecast demographic usages / needs / availability Forecast transportation changes / capacities Stay Informed on New / Applied Technology Advances Blockchain Advanced wearables / heads-up technology Augmented / enhanced reality Data mining

36 Key #2 Build for Change / Repurpose Automate for the Future Build to repurpose Build to relocate Build for bi-directional scale Cost justify for long term change Systems for the Future Most advanced user experience possible Most flexible / adaptable solutions Built for rapid integration / expansion / collaboration

37 Key #3 Invest in the User Experience Build for Human Use Expect and create shared human / machine spaces Self-learning, guided complex decision assistance Intuitive - zero training as a goal Acceptance by Humans Advanced, commercial feel Socially aware Fulfilling experience

38 Absolute Systems Determine End Success Humans Rotating Multi-Culture Multi-Generation High Expectations In Demand HUMANS Systems Interoperable Secure Information Rich Intuitive Attractive Data Forecasting Exception Centric Traceability Ease of Analysis Collaborative Secure DATA SYSTEMS MACHINE MACHINE Flexible Adaptable Sensor Based Lowering Costs

39 For More Information: Speaker Website: Or visit ProMat Booth S3462