1. Future Focus:
Constructing Unshakeable
Stability in Your
Manufacturing
Supply Chain
July 11th, 2023
9:30am PDT, 12:30pm EDT, 5:30pm BST
Tara Dwyer
Webinar Coordinator,
Supply Chain Brief
featuring Jay Black,
Senior Account Executive
moderated by

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4. Jay Black
Senior Account Executive
Future Focus:
Constructing Unshakeable Stability in Your
Manufacturing Supply Chain

5. My
Background
• Started in Order management and WMS implementations
• Worked in retail, distribution, 3PL, Consumer Product Goods
• Solution Engineer (Sales side) providing solution footprints
to fortune 500 companies
• Associate Partner/Director for a specialized Supply Chain
consulting firm.
• Worked in Retail, Distribution, 3PL, Consumer Product Goods
• While at IBM, WW Sales Leader where I helped build out
the Manufacturing story for the supply chain offerings.
• Automotive, Mining, Food, Electronics
• Today I work at GreyOrange, warehouse automation, AI
based execution software and Store fulfillment

6. Pre-Covid - Verticals of Manufacturing &
Distribution were Already Seeing Different
Disruptions
IBM Sterling Supply Chain / © 2020 IBM Corporation 6
More DTC Manufacturers
Thank Retail for lifting the bar
• Improving technologies
• More customer focused
• Better visibility
• Self Service
• Customer oriented

7. And then…
• Supply Chain Disruption
• Factories closed
• Stores were closed
• Early retirement
• Government checks given out to
support
• Predictability was no more
7

8. Chaos….
8

9. For Every
Action there
is an Equal
and Opposite
Reaction

10. How Does that
Apply to Supply
Chain??
IBM Sterling Supply Chain / © 2020 IBM Corporation 10
Retail overbought
…and regretted it

11. In Summary
the Supply
Chain Picture
the last 2
Years
IBM
Sterling
Supply
Chain
/
©
2020
IBM
Corporation
11

12. Top Supply
Chain
Concerns in
2023

13. What are Those “Supply
Chain Challenges”? One
word
Inflexibility
• Single Source Sourcing
• Geographically spread-out supply chain
• Antiquated technology
• Inflexible technology
• No clear visibility of data
• Decentralized/Siloed
• Nonexistent
• Tough to access
• Even with the data, what to do with it

14. Retail
Realized this
Years Ago
IBM
Sterling
Supply
Chain
/
©
2020
IBM
Corporation
14
Omnichannel Fulfillment

15. How can Manufacturing Create a Resilient
Supply Chain?
Better Visibility of
Inventory/Data
Artificial Intelligence and
IOT
Automation

16. Statistics
from the
Supply Chain
Disruptions
16

17. Data: The More
Visibility, the More
Flexibility
• Siloed
• Inflexible
• Single Pont of Failure
17

18. Example: Central View
of Inventory (Raw and
Finished)
• Centralized view of Demand and
Orders as well (Possibly)
• More Flexibility to have multiple
sourcing options
• Better Forecasting
18

19. How to
Centralize
Without
Intervening
with ERPs
19
ERP Role:
• Finance
• Planning/Forecasting
• Production

20. How to
Centralize
Without
Intervening
with ERPs
20
ERP Role:
• Finance
• Planning/Forecasting
• Production
Data Cloud
• Analytics
• Analysis
• Control Towers
• AI/IOT/Machine
Learning

21. Eliminate the “Black Holes” with Data
Warehouse/
Fulfillment Center
On-Order/In-Transit
The typical promise to a
customer starts at the
warehouse In Transit
Retail Store
Customer
The new normal starts
with In-Transit
Warehouse/
Fulfillment Center
In Transit
Retail Store
Customer
Factory In Transit on container In Port
Warehouse/
Fulfillment Center In Transit
Retail Store
Customer
On-Order/In-Transit
The New Goal
Better Visibility of all data creates more flexibility and more sales

22. Broader Visibility to Inventory Mitigates
Supply Chain issues
Source: If applicable, describe source origin
22
Fulfillment network
is being expanded
to an extended
network which
includes suppliers
• Reduced
inventory costs
• More Flexibility
on Ordering
• Reduced
Downtime
• Reduced SLA
infractions

23. How can Manufacturing Create a Resilient
Supply Chain?
Better Visibility of
Inventory/Data
Artificial Intelligence and
IOT
Automation

24. IBM Sterling Supply Chain / © 2020 IBM Corporation 24

25. 25
Source: Gartner Cool Vendors in Enterprise AI Operationalization and Engineering, 11
October 2021
By 2025, 50% of large enterprises will have deployed artificial intelligence orchestration platforms to operationalize AI, up from fewer
than 10% in 202 (Gartner).
75% of companies felt negative or strongly negative impacts on their business due to supply chain disruption (Accenture)
58% of consumers would stop buying from a brand entirely after one to three supply chain delays or disruptions. (AdAge)
It is estimated supply chain disruptions and inventory shortages affect 4% of inventory for some large companies, and 40% of inventory
for smaller companies. (AdAge)

26. AI vs Software Software
• Business Rule Driven
• Looks at the attributes of the
inputted data to determine
the outcome
• Factors used are based on
the business rule set.
Artificial Intelligence
• Takes the input of data and
looks at a broad and
historical view of data to
determine the outcome.
• Discovers patterns and learns
from its decisions to make
more precise decisions
• Can take in a tremendous
amount of factors and to
factor into the decision
process
26

27. AI
Architecture
Flow Simple
27
Source: Survey of Machine Learning: Albert
Reuther, Peter Michaleas, Michael Jones,
Jeremy Kepner

28. Use Cases in Manufacturing Supply Chain
Machine Management
• Machine Setting Accuracy – Reduce scraps
• Predictive Machine Failure – Sensing productivity Issues within the machine
• Predictive Maintenance – Staying ahead of maintenance schedules
• QA Inspection – Using visual technology to look at products for issues
Forecasting
• AI can consume much more data to better predict a product forecast:
• Historical data, Weather, events, political climate
Supply Chain
• Anomaly detection – Detecting potential supply/demand spikes
• Exception Management – recommend how to alleviate a shortage in a raw material efficiently
• Sourcing/Allocation – Look at a variety of parameters real time to determine a more efficient allocation plan
• Warehouse – Inventory rotation/positioning, picking/putaway/replenishment optimization
• Transportation – “Smart” Trucks
Customer
• Buying patterns, predictive purchases, upsells/cross sells
28

29. How can Manufacturing Create a Resilient
Supply Chain?
Better Visibility of
Inventory/Data
Artificial Intelligence and
IOT
Automation

30. Statistics in the
Supply Chain
Labor
IBM
Sterling
Supply
Chain
/
©
2020
IBM
Corporation
• Unfilled jobs and a manufacturing skills gap are
expected to cost the United States as much as $1
trillion by 2030. (Datex)
• 2.1 million jobs critical to the supply chain and
manufacturing industry will remain unfilled by
2030. (Forbes)
• On the last day of December 2021, the number of job
openings in the US was 10.9 million. The job openings
rate was 6.8%. (Brookings)
• Even if every unemployed person with experience in
the durable goods manufacturing industry were
employed, only 65% of vacant jobs would be filled. (US
Chamber)
• As of 2023, According to the US chamber of
Commerce, there are 693K open manufacturing jobs.
• 70% of jobs are filled
30

31. Areas of Opportunity
IBM
Sterling
Supply
Chain
/
©
2020
IBM
Corporation
31
QA Material Movement Picking and Packing

32. QA with AI
• Visual inspection takes human error out and
reduces cognitive load
• Can be implemented quickly providing a short
time to value.
• Can detect errors quicker and faster
• With the AI, visual inspection learns about
defects and understands relationships with other
defects.
• Examples – welding, circuit board assembly,
fabric inspection, scratches/blemishes, paint job
• Reduces reliance on labor and tribal knowledge
IBM Sterling Supply Chain / © 2020 IBM Corporation 32

33. Automating “Non-Value”
Movement
• Examples:
• Movement to/from manufacturing floor
• Dock to stock moves
• Returns
• Typically pallet level moves requiring a forklift
• Reduces the need for labor for non-value moves
• These moves are typically static and simple
moves
• The robots are intertwined with human
operators – designed to detect and stop
• Quick to implement, minimal infrastructure
change
IBM Sterling Supply Chain / © 2020 IBM Corporation 33

34. Automating Outbound
Movement
• Example:
• Loose picking
• Pallet picking
• Assisted picking
• Sorting (more for parcel shipping)
• Higher upfront cost, higher impact
• Most robots required to work in enclosed areas
• Combined with AI, can learn order patterns to
improve picking efficiency
• Reduces the headcount need in an area short
on labor (especially 2nd/3rd shifts)
IBM Sterling Supply Chain / © 2020 IBM Corporation 34

35. Q&A
TARA DWYER
/in/taradwyer/
Webinar Coordinator, Supply Chain Brief
supplychainbrief.com
JAY BLACK
/in/jhblack/
greyorange.com
Senior Account Executive