Innovation and Digitalisation at Kuehne + Nagel

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1 Innovation and Digitalisation at Kuehne + Nagel Automotive Logistics UK Summit 2017 Achim Glass, Head of Global Automotive Vertical October 4 th 2017 London, United Kingdom 1

2 Innovation and Digitalisation at Kuehne + Nagel Automotive Logistics UK Summit 2017 Objective of presentation Share with you our understanding of how digitalisation is impacting the logistics industry in general and how we will turn associated opportunities into tangible benefits for our customers. Content The world is changing and driven by consumers Transformation of the logistics industry with technology as game changer Digital trends in freight forwarding Digitalisation initiatives in seafreight Recent technological innovations in warehousing Our automotive footprint 36+ countries with automotive logistics infrastructure 50+ years automotive customer relationships 115+ automotive customers experts in automotive production and spare parts logistics 1.6 mio sqm automotive warehousing space Global ranking 2

3 A fast paced world driven by consumers The new normal of global trade (mobile usage-instantly-ease of connectivity) Dissolving line between B2C and B2B Technology drives data 3

4 Transformation of logistics Growing logistics market (3-6%) Demand patterns are changing Shifting cargo flows & geographies Growth of middle class e-commerce giants setting the pace Speed & quality of execution are the new demand (same day delivery) 4

5 Technology is the game changer Digitisation (digitalisation & automation) opens new business opportunities Productivity improvements User experience Customer excellence 5

6 Relevant digital trends in freight forwarding and our ambition to generate value for our customers and ourselves 6

7 Example 1: Predicting and optimizing logistics and supply chains through data analysis of 180 million messages / day Example digitalisation initiatives in seafreight Carrier price forecasting ETA modellations Cruise ship provisioning Dynamic risk assesment for pharmaceutical bookings 7

8 Example 2: Technological innovation in automotive spare parts / aftermarket warehouses of the future Cobot Wearables Virtual reality Drones with camera Autonomous material handling equipment 8

9 Cobot implementation to achieve multiple benefits Project scope Collaborative robot that is easy to implement and very configurable based on request (gripper, etc). Max reach 1,2m and 8kg payload Packing activities for pharmaceutical company Labelling of approx. 2.2 million diabetic products Goal To increase productivity To maintain stable level of quality To reduce monotonous work To roll out solution for other process steps Success criteria Solution meets capacity of 60-80k per day Solution covers all SKUs within the project Solution maintains proper quality level Maturity Solution yesterday Solution in concept phase Not mature First applications mature KN Phase Idea Concept Pilot Standard Investment per cobot implementation approx. EUR 40k without WMS connection Solution tomorrow 9

10 Autonomous material handling equipment Maturity Not mature First applications mature Project scope Autonomous guided vehicle for transport of MHE from warehouse area to inbound/outbound area and vice versa (large fleets!) Order management with MIR Transport Management System (TMS) with and without interface to WMS possible KN Phase Idea Concept Pilot Standard Goal Reduction of manpower (costs and availability) Reduction of damages Vehicle can also be prepared by cobot packing Investment per unit approx. EUR 30k + TMS cost + implementation cost 10

11 Pick by wearable and proglove to replace traditional scanner Maturity Not mature First applications mature Project description Usage of wearable devices like Google Glass or smart watch in combination with RFID wrist band for automotive customer The RFID wrist band replaces the scanner as each storage location has an unique RFID label Picker receives confirmation when he picks from location. If the location is wrong, an acoustic alarm signal beeps Current status Project team prefers solution with smart watch and belt scanner instead of Google Glass due to acceptance and hygienic reasons. Usage of RFID wrist band needs to be validated Proglove has scanner device attached for hands free confirmation Proglove Benefit Productivity gains and reduced operating costs Customer perception: Usage state-of-the-art technology Roll-out as standard to other operation possible KN Phase Idea Concept Pilot Standard Investment approx. EUR 50k software, EUR 1k watch & scanner + EUR 1,8k Google Glass (w/o FTE-specific glasses) 11 Pick-by-vision Pick-by-RFID Pick-by-watch

12 Inventory check by drones with camera for faster inventory counts Maturity Not mature First applications mature KN Phase Idea Concept Pilot Standard Project description The project InventAIRy has the goal for an autonomous inventory check A camera is carried by a drone and makes pictures of the pallet racking Software is comparing the barcode of the product and of the storage location with the data from WMS and identifies gaps Benefit Faster inventory count with less manpower Other benefits which are not tested yet: stock occupation in volume, check of optimized pallet location height, damage identification Benefit for locations with high efforts of inventory count or high inventory discrepancies tobacco and automotive industry Investment approx. EUR 850 scan module (2 required for 2-shift operation), access point EUR 250, charging unit EUR

13 360 Visualisation of greenfield projects by virtual reality Maturity Not mature First applications mature Project description Visualization of greenfield -projects during tender phase or for marketing purposes State-of-the-art presentation with Samsung VR Glasses Benefit Close to reality demonstration of logistics know-how at an early tender phase prior decision Usage of Virtual Reality Very positive feedback from customers KN Phase Idea Concept Pilot Standard Investment approx. EUR 3k per project with 4 vies by site 13

14 Thank you for your attention 14