YARDS AHEAD THE REQUIREMENTS OF FUTURE YARD MANAGEMENT TECHNOLOGY

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1 YARDS AHEAD THE REQUIREMENTS OF FUTURE YARD MANAGEMENT TECHNOLOGY

2 Back to basics the wider impacts on technology Some of the wider considerations for yard management innovation Many types of yard: Many types of vehicle: Many markets: Many modes: Many processes: Many environments: Many types of handling: Many consumer styles: Plant, VPC, mixing centres, rail based, port based, multi-storey Electric, hybrid, diesel, petrol, hydrogen cell, commercial, high & heavy, new, used, fleet US, Europe, Asia, Middle East, Africa, Asia Rail, road, ocean, short sea, barge, Air Import based, export based, domestic, manufacturer specific, model specific etc. Heat, cold, sand, dust, hail, infrastructure Driver based, CKD, containerised, racked, autonomous Buy from dealer inventory, buy from network inventory, made to order

3 Physical Impacts Increasing constraints on availability and cost of real estate Decreases or increases in transport capacity Variability of volume and volume shift to emerging markets Remoteness of delivery points (eg. China, Africa etc) New storage and handling methods (eg. carousels, vehicle autonomy) Faster deployment and redeployment of yards and inventory Investment in new asset and resources (eg. charging stations, workshops) Greater impact of temperature, dust etc (eg. survey suggests electric can suffer up to 57% loss of range at 20 F compared to 75 F AAA Automotive Research, CA) Change to maintenance skillset requirements

4 Game Changers New manufacturers (and JV s) and changes to franchises New players in the yard management & distribution market Changing the whole concept of what is a Yard (is a yard, is it a warehouse, is it a showroom, it is a collection centre, it is a rental centre?) Increase in made-to-order and direct consumer deliveries More consumer specification options but with a shorter delivery expectation New routes, capacity and the increasing use of containerisation Increase in postponement and CKD Increased connectivity to the vehicle and future autonomous driving Lifetime connectivity and management of a VIN

5 Today s yard management technology tools. Optimising parking efficiency Maximising capacity Minimising drive times Minimising dwell times Optimising labour requirements Damage management Yard visibility and visualisation All of the above capabilities are generally expected of any technology today. All have an important role to play. HOWEVER, they may not be the platforms or enablers for future change.

6 Future yard operations will rely on technology that: Embrace and facilitate more complex, unique and proprietary VIN specific processes Automate processes that will become too complex and diverse to deal with manually Leverage telematics and direct vehicle communication Adapt transport planning model and assets to facilitate direct consumer deliveries Adapt handling methods and assets to facilitate both new products (eg. electric, Hydrogen) Adapt physical and commercial models to more distributed, lower volume scenarios Look to redefine, extend and elevate the function and value of a yard All of these critical requirements must be fully supported in any progressive yard management I.T. solution, but in addition to all the changes above what is also critical is that.

7 In order to succeed going forward we must: Provide far more integration of yards activities into the wider supply chain Support a increasing consumer expectation for more accurate and detailed visibility

8 In summary Using new technologies, devices and communications we can make many efficiency improvements to todays operations The problem is that today s yard operations may not be the operations of the future. They may well be more fragmented, lower volume and far more complex. Need to leverage the value of that complexity by using process management automation tools Technology solutions will require much greater sophistication and flexibility, need to be far more dynamic and perpetually configurable. We should look far more to the future and ask if what we implement today will still be relevant or even useable in 5 years time and beyond.

9 THANK YOU! VW Autostadt, Wolfsburg, Germany Photo by Lars Landmann

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