Industry and Logistics 4.0, new business models for competitiveness
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1 Zaragoza Logistics Center Industry and Logistics 4.0, new business models for competitiveness Change of paradigm María Jesús Sáenz, Executive Director ZLC
2 Affiliated to the prestigious Massachusetts Institute of Technology (MIT) and the University of Zaragoza, ZLC is a research institute specialized in Logistics and Supply Chain Management located in Spain. The MIT-Zaragoza program exemplifies the parnerships required in today s global marketplace Susan Hockfield President Emerita, MIT Entity in number of European research projects on logistics in Spain 2
3 1 Global Network 6 Centers of Excellence 10+ Educational Programs 80+ Researchers & Faculty 150+ Corporate Parnerships 117+ Current Students Alumni worldwide Supply Chain Research and Education on a Global Scale The MIT Global SCALE Network is an international alliance of leading research and education centers dedicated to supply chain and logistics excellence through innovation. 3
4 ZLC GREATEST ACHIEVEMENTS RANKED #1 WorldWide Europe Spain 30+ Awards #1 European logistics Projects in Spain RESEARCH 70+ Countries in our Network EDUCATION 100+ R&D collaborative projects 325+ Research Partners 90+ Publications Students 90%+ of Employment PhD students combines studies at 4
5 RESEARCH Organizational and Behavioral SCM Green Supply Chains Manufacturing & Logistics Analytics Inventory Management EDUCATION MIT Zaragoza Máster of Engineering in Logistics and Supply Chain Management (ZLOG) Máster en Dirección de Supply Chain (MDSC) MIT Zaragoza PhD Program in Logistics and Supply Chain Management PhD Summer Academy Executive Education Logistics Clusters Supply Chain and Finance Supply Chain Security and Risk Management Transportation and Urban Mobility Global Health SC and Humanitarian Logistics 5
6 Contents Zaragoza Logistics Center Paradigm sift: Industry 4.0 Physical Internet Open, flexible and dynamic value networks Collaboration in Logistics... Vertical... but also Horizontal "Resilient" Value Networks European Strategy and Financing Frameworks The role of SMEs in implementation Experiences in European Projects Successful cases 6
7 Cyberphysical systems Internet of Things Digitization The cloud Smart factory Industrial Internet Industria 4.0 Hegmanns. ZLC & Fraunhofer IML,
8 Why Industry 4.0? Hegmanns. Fraunhofer IML,
9 Why Industry 4.0? VALUE STREAM 9
10 Industry 4.0 Roadmap: Logistics Si no 10
11 Industry and Logistics 4.0 Digital + Physical DIGICAL 11
12 Physical Internet: Re-imagining Logistics? What would happen if a supply chain could emulate the "Internet world" and create an open and universal logistics network that were profitable, efficient and sustainable, socially and environmentally? 12 Prof. Maria Jesus Saenz. Industry and Logistics 4.0, new Saenz, business models Supply for competitiveness Chain Management Review. The Physical Internet: Logistic
13 Physical Internet: Re-imagining Logistics? Dynamic and configurable business models International protocols: regulatory bodies Big Data Interconnectivity of operations Visibility of the Supply chain (IoT) Standardizatio, encapsulation, interfaces Horizontal Collaboration Redefining the competitive space and joining forces with other organizations, including direct competition Saenz, Supply Chain Management Review. The Physical Internet: Logistics Reimagined 13
14 ALICE - Alliance for Logistics Innovation through Collaboration in Europe 14
15 Physical Internet: Re-imagining Logistics? Open and flexible value networks Collaboration to the maximum exponent Dynamic Value Networks Machine Learning, IoT, Big data "Resilient" Value Networks Modular Manufacturing Saenz, Supply Chain Management Review. The Physical Internet: Logistics Reimagined 16
16 Index Zaragoza Logistics Center Paradigm sift: Industry 4.0 Physical Internet Open, flexible and dynamic value networks Collaboration in Logistics... Vertical... but also Horizontal "Resilient" Value Networks European Strategy and Financing Frameworks The role of SMEs in implementation Experiences in European Projects Successful cases 17
17 Physical Internet: Re-imagining Logistics? Open, flexible and dynamic value networks: Examples Omni-channel supply chain models could play the role of facilitator of the physical Internet Integration of omni-channel networks Network Design: Project vs. process 18 Prof. Maria Jesus Saenz. Industry and Logistics 4.0, Saenz, new business Supply models Chain for competitiveness Management Review. The Physical Internet: Logistics Reimagined
18 Physical Internet: Re-imagining Logistics? Open, flexible and dynamic value networks: Integration of omni-channel networks Saenz and Revilla, Supply Chain Management Review 19
19 Customer is the King But, do you know your customer? 20
20 Physical Internet: Re-imagining Logistics? Open, flexible and dynamic value networks: Examples From being a book retailer..., Huge retailer, even fresh grocery products, to be a logistics service provider cloud service provider other business models 21
21 Physical Internet: Re-imagining Logistics? Open, flexible and dynamic value networks: Examples Collaboration: DHL-Amazon-Audi 22
22 FACTS4WORKERS Worker-Centric Workplaces In Smart Factories (I) Source of funds: European (H2020) Period: Goal: To show how creating attractive and intelligent jobs in a Factory of the Future can contribute to get Europe is again considered suitable for the location of factories. Impact: PRODUCTIVITY: increasing average productivity per worker by 10%. EMPLOYMENT: by increasing productivity we will be able to retain manufacturing in Europe against a decrease in the size of the working population. JOB SATISFACTION: increasing average job satisfaction by 0.5 points on a 5 point scale. EUROPEAN ECONOMY: rising in the quality of goods produced: made in Europe is already globally recognised as a sign of quality, but as quality is rising elsewhere Europe needs to stay ahead of the curve. 24
23 FACTS4WORKERS Worker-Centric Workplaces In Smart Factories (II) Smart Glasses Voice command Augmented reality Tablets and smartphones 25
24 Machine Learning, IoT, Big Data, 26
25 Machine Learning, IoT, Big Data, 27
26 Index Zaragoza Logistics Center Paradigm sift: Industry 4.0 Physical Internet Open, flexible and dynamic value networks Collaboration in Logistics... Vertical... but also Horizontal "Resilient" Value Networks European Strategy and Financing Frameworks The role of SMEs in implementation Experiences in European Projects Successful cases 28
27 Collaboration in Logistics... Vertical... but also Horizontal 29
28 Collaboration in Logistics... Vertical... but also Horizontal 30
29 Collaboration in Logistics... Vertical... but also Horizontal Shipper 1 Shipper 2 Shipper N Gain sharing Facilitators -Research institutes -Prof. Associations -Public administration Trustee LSP 1 LSP N Offline Online 31
30 Collaboration in Logistics... Vertical... but also Horizontal Our proposition in If you want to be incrementally better: be competitive. If you want to be exponentially better: be cooperative. (this only goes for companies with mature supply chains) 32
31 Collaboration in Logistics... Vertical... but also Horizontal Facilitators and Barriers for Horizontal Collaboration Facilitators Values 33
32 Collaboration in Logistics... Vertical... but also Horizontal Facilitators and Barriers for Horizontal Collaboration Barriers Values 34
33 Collaboration in Logistics... Vertical... but also Horizontal Production facilities Shared Warehouse Orléans Retailer warehouses FR Supermarkets outlets FR P W VMI information Individual suppliers Supplier collaboration Retailers 32% saving Trustee 35
34 Collaboration in Logistics... Vertical... but also Horizontal Saving of 150,000 km of truck for eliminating trucks on the road Improvement in occupancy (volume & weight) 55% to 85% by the mixing heavy and light goods Reduction> 200 Tons CO2 Intermodal Solutions 17% saving 36
35 Collaboration in Logistics... Vertical... but also Horizontal Vino 49% Saving Customer: big retailers More frequencies and better logistics rates Agua 37
36 Collaboration in Logistics... Vertical... but also Horizontal and diagonal Collaboration between Wallmart, Uber, Lyft and Deliv Supply Chain 24/7, Walmart Partnering With Uber, Lyft and Deliv to Test Grocery Delivery Service 38
37 Collaboration in Logistics... Vertical... but also Horizontal Moving from Supply Chains to VALUE Networks Moving from Profit Sharing to VALUE Sharing in a collaborative environment 39
38 Collaboration in Logistics... Vertical... but also Horizontal IT S MY MONEY!! Profit distribution: Shapley Value VALUE sharing: Efficiency, Service Level, Flexibility, Innovation, Sustainability 40
39 Collaboration in Logistics... Vertical... but also Horizontal 41
40 Collaboration, the role of logistic clusters Sustainable Organisation between Clusters of Optimised Europe (I) 42
41 Collaboration, the role of logistics clusters Sustainable Organisation between Clusters of Optimised Europe (I) Source of funds: Europeo (FP7) Period: Goal: To enable research-driven regional clusters throughout Europe to collaborate and exchange experiences for increasing regional sustainability and competitiveness of logistics services and intermodal transport operations. Results: SoCool@EU JOINT ACTION PLAN, identifying the strategic fields in which developing new joint projects. SoCool@EU BUSINESS PLAN, identifying 11 potential areas of collaboration. PROJECTS, the stronger relationships among clusters set under the project have led to the creation of joint expert groups and the development of joint proposals for future projects. 43
42 Collaboration, the rol of logistics clusters ALIA Logistics 4.0 Working Group Goals: To identify companies' needs in this area To detect opportunities for improvement in logistics and industrial processes To introduce technologies that contribute to achieve the goal of Logistics 4.0 To develop future innovation projects 45
43 Index Zaragoza Logistics Center Paradigm sift: Industry 4.0 Physical Internet Open, flexible and dynamic value networks Collaboration in Logistics... Vertical... but also Horizontal "Resilient" Value Networks European Strategy and Financing Frameworks The role of SMEs in implementation Experiences in European Projects Successful cases 46
44 Resilient" Value Networks Earthquake of Ecuador, April
45 Resilient" Value Networks Tsunami Japan,
46 Colaboración Vertical pero también Horizontal 49
47 Resilient" Value Networks Mapping: impact assessment at different levels Sáenz and Revilla, Cisco Systems, inc., Supply Chain Risk Management.. Financial Times Press. 50
48 Resilient" Value Networks Innovative Consistently Optimised Resilient Ecosystem Implementation ( ) International Postal supply chain security ( ) 51
49 Zaragoza Logistics Center Thank you! María Jesús Sáenz, Executive Director ZLC
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