21. Eating its own cooking:
Malaysia pilot project
1300 sensors
Power usage
Device management
Carbon emissions
Utility bill analysis
Projected facility
savings: $1m/year
20%-30% energy
reduction across all
manufacturing plants
25. Old system: Pickers, list of
items, walking the
warehouse, filling a tote
New system: Cart-like
robots, list of items,
retrieve products, deliver
to worker.
All “Things” communicate
26.
27. Replace hand-held
scanners and paper w/
Google glass and WMS
Tell fastest route to
products
Reads bar codes
Test results: 25%
reduction in pick/pack
time.
Best application: e-
commerce warehouses
Temp workers
30. Tim Sylvester: Make
“dumb” infrastructure
“smart”
Factory-built, modular
pavement
Embedded sensor
network
Capture roadway
conditions, cracks,
potholes, traffic jams
Future: Driver-less
vehicles talk to the road
31.
32. GE Evolution Locomotive
220-ton computer
6.7 miles of wiring, 250
sensors, 9 million data
points/hour
Gear case: oil levels &
contaminants that lead to
axle failure
“These conditions, in this
sequence, means 90%
chance this failure will
happen.”
33. Security
70% of the most commonly used IoT
devices contain security vulnerabilities
(HP Study).
Talent
Tech talent. Data scientists.
Data
Data is the river. Insight is the goal.
34. Push
• Produce based on expected demand, push
to market
Pull
• Demand and Inventory trigger production
Predict
• Real-time data, centralized visibility,
predictive modeling
35. Outcomes instead of
functionality
“Selling locomotion, not
locomotives.”
Infrastructure as a Service
(IaaS)
Remote Diagnostics
(predictive maint)
Trip Optimizer (fuel savings)
Yard Planner (decrease dwell)
Movement Planner (improve
speeds)
Ask for a show of hands…how many in the audience are shippers? Suppliers or Consultants to Shippers? Acadamia?
Here’s the three things we’ll cover today:
We want you to walk away provoked – personally & professionally – enough so that you’ll think differently about your day-to-day tasks.
Many of you are probably familiar with the term “Smart Home”; Some of you may have this technology in your homes today.
Smart Homes are an example of the “internet of things,” and they are here today – not some distant future.
There are many definitions of the Internet of Things, but we like to boil it down to this:
Let’s look at each part of that definition…
http://www.emarketer.com/Article/Internet-Hit-3-Billion-Users-2015/1011602
People were the first users of the Internet – way before “things.”
Ubiquities internet adoption by people is important for the IoT revolution, and by 2018, almost half the people on the planet – 3.6 billion people – will be able to access the internet.
http://wearesocial.net/blog/2014/09/world-mobile-phone/
“Place” is location, and today that means mobile devices (including wearables). More and more people are accessing the internet via their mobile devices.
The number of unique mobile phone users around the world has just passed 50% of the world’s total population.
Growth is staggering -- 750,000 new mobile users every day – or 9 new users every second. (GSMA Intelligence –https://gsmaintelligence.com/)
More people on the planet have a mobile device than a toilet (water.org).
https://www.lordabbett.com/en/perspectives/equityperspectives/finding-growth-in-an-increasingly-digital-world.htmlion today.
So first people, then places, and now things are connecting to the internet.
Projections differ, but a conservative report estimates there will be 50 billion devices connected to the Internet by 2020, compared to 18 billion today.
Ok, so all these people, places and things are connected to the internet…so what?
http://postscapes.com/what-exactly-is-the-internet-of-things-infographic
Connectivity is one thing, but smart connectivity is another, and that’s where Sensors come in. The sensors are like nerve endings in the body – we are building a digital nervous system.
A sensor on something can make that something “smart” – it can tell something else…
Know position
Detect motion, temperature, humidity
Sound, vibration
The presence of chemicals
Force, load or pressure
Leaks,
Electricity or magnetism
Acceleration
http://venturebeat.com/2015/02/07/how-the-internet-of-everyday-things-could-turn-any-product-into-a-service
If you think about all the different kinds of “things” in the world, you realize how innovative these sensors must be. They continually have to be flexible, like this product
This is a printable, flexible circuit/sensor created by Thinfilm Electronics.
http://globalbiodefense.com/2013/03/13/electronic-sensor-tattooed-on-skin-as-real-time-health-monitor/
Small and personal, like this “digital tattoo” – yes, it’s a temporary sensor that can be attached to skin that has a multitude of functions…
This was developed by researchers at the University of Illinois for health monitoring.
It’s a temporary stamp that lasts about two weeks, then flakes off like the natural process of exfoliation.
Average sensor prices have dropped to 60 cents from $1.30 in the past 10 years (Goldman Sachs).
So connecting everything to the internet, making those connections “smart,” and then ultimately, helping it all communicate with each other.
For instance, Diageo could upload promotional offers while the bottle is in the shop but change that information to cocktail recipes when the sensors show the bottle has been opened at home.
http://www.diageo.com/en-row/ourbrands/infocus/Pages/diageo-and-thinfilm-unveil-the-connected-smart-bottle.aspx
This bottle has a “smart label” attached to it. It’s a printable-sensor created by ThinFilm that has NFC capabilities.
They will always know where this bottle is in the supply chain – location
They will always know it’s temperature.
Diageo knows when it gets into a retail outlet and can change the messaging that a consumer sees when they tap their phone to the bottle, like, “We have a special today – buy one, get one for half price.”
After you take it home, the bottle can tell Diageo if it’s been opened, and it could changes the messages, like, “Try this receipe.”
Think about all the data Diageo is getting through this product’s life cycle, and the customized experience the consumer is getting.
So all of this smart, connected stuff, talking to each other…is it a good thing?
Have we just gone to far?
http://www.gartner.com/newsroom/id/2819918
Gartner puts the Internet of things very clearly at the top of the “Peak of Inflated Expectations.” And by being here today, talking to you about this, we are clearly adding to those expectations.
But they are also projecting the IoT will reach the “Plateau of Productivity” in the next 5-10 years.
http://www.pwc.com/us/en/advisory/business-digital-technology-trends-sensors.jhtml
How many of you here work in a supply chain business that touches consumer products or industrial products?
52% of retail and consumer products companies are investing in IoT technology, and 33% of industrial products companies (PWC)
From your inventory to its container, from the container to the carrier, from the pallet to the warehouse. The more your assets can 'speak' to one another and share data, the more they can work together to help you improve your processes."*
We categorize the impacts to Supply Chain in three parts:
What happens to “The box” -- the building itself.
What happens “Inside the Box” – the manufacture, movement and storage of products inside the building
What happens “Outside the Box” – transportation of goods
Energy & Sustainability
Predictive Maintenance
http://www.wsj.com/articles/cisco-tests-internet-of-things-in-its-supply-chain-1431554801?cb=logged0.13812174461781979
http://blogs.cisco.com/cloud/energy-management-and-the-factory-of-the-future
In one of the latest initiatives to get its own supply chain fully wired, Cisco has been installing thousands of sensors in a plant in Malaysia to monitor and reduce energy consumption. Mr. Kern said in an interview with The Wall Street Journal that the team leading the project believes that implementing the system throughout Cisco’s worldwide production sites will help reduce energy consumption by 20% to 30%, translating into tens of millions of dollars in cost savings.
The Malaysia project is a pilot program that is part of a $4 million fund the company established in which employees brainstorm and test projects to make the company more productive. The projects cover a wide range of supply chain issues and are relatively small-scale for a $47 billion company—the energy management project in Malaysia cost less than $700,000—with the understanding that most will fail. But those that succeed can provide innovative solutions and major savings, Mr. Kern said.
Material Handling Systems
Warehouse Control Systems
Warehouse Management Systems
Robotics
Distributors and manufacturers are challenged with keeping track of assets that are in almost constant motion. Without appropriate strategies in place to manage the tracking of equipment, supplies, and products, the likelihood of misplacing or losing valuable assets increases. Utilizing real-time IoT devices eliminates manual data entry and automates tracking processes, reducing human error and insulating businesses from costly asset loss.
http://www.supplychain247.com/article/enter_the_smart_internet_of_things_warehouse/Zebra_Technologies
Lids, an Indianapolis company, sells fashion athletic headwear, team apparel and other fan novelties.
In the old days, order takers - known as pickers - would get a list of items and walk around the warehouse, looking for the right ones and loading them up in a tote. It took a long time.
Recently, however, Lids started using an Internet of Everything (IoE)- based robotic system and life has become a lot more efficient.
Now a list with items is automatically sent to cart-like robots, which retrieve the products, place them in bins, and deliver them to a worker.
The worker then loads the material onto a truck in the correct order. Sensors detect everything from a robot’s location to whether pallets are en route to the shipping dock and then wirelessly transmit that information to a remote monitoring team.
http://www.wsj.com/articles/dhl-unit-plans-google-glass-experiment-in-us-warehouses-1439568950?mod=WSJ_TechWSJD_NeedToKnow
Wearable computers like Google Glass never took off with consumers but the Internet-connected eyewear are finding their niche in the logistics industry.
Exel, the freight forwarding arm of Deutsche Post DHL Group’s supply-chain management business, is preparing to test “vision picking”— replacing handheld scanners and paper job orders with wearable “smart-glass” devices outfitted with warehouse management software—in two U.S. warehouses later this year.
The devices can tell workers the fastest route to find products and can read bar codes, which reduced the time needed to pick out an item and pack it for shipping by 25% in tests at a Dutch warehouse earlier this year, Exel says. The technology has the most application in e-commerce warehouses, where workers might need to find a handful of items out of more than a million individual products, the company said.
http://www.kansascity.com/news/business/technology/article15650132.html#storylink=cpy
As the nation’s overall repair needs reach the trillions of dollars, Sylvester and a coming generation of engineers hope to convert dumb old infrastructure into tech-rich traffic lanes, pipelines and utilities boasting brains tuned to the 21st century.
A highway project in the Netherlands uses solar panels and tiny windmills blown by passing trucks to store energy for embedded LED lights, allowing roadways to glow at night.
▪ Scientists are testing “self-healing” concrete designed to produce bacteria to fill cracks, according to the global engineering firm Arup.
▪ Some U.S. bridges are currently dotted with sensors that provide real-time data when the heaviest trucks, possibly illegally overloaded, rumble across.
▪ Drawing boards around the world include pavement threaded with heating elements to melt snow and roadside Wi-Fi to alert motorists to rough patches ahead.
▪ Many futurists expect that by 2030, self-driving cars will be wirelessly talking to one another and to the road itself, promising to make motoring safer, swifter and mistake-free.
http://www.fastcompany.com/3031272/can-jeff-immelt-really-make-the-world-1-better
Measuring 73 feet long and weighing in at around 436,000 pounds, the Evolution drinks diesel from a 5,300-gallon tank
At roughly 220 tons, it is in many respects a hurtling computer. Its array of sensors and data-collecting devices complements its bulky mass with a sleek, digital agility that will grow only more impressive and more significant with time.
Its insides contain 6.7 miles of wiring and 250 sensors that put out 9 million data points every hour.
For example, GE has begun putting a radio-frequency sensor inside the locomotive's gear case to transmit data on oil levels and contaminants, and by parsing that data, Stokes says they should be able to predict the conditions that lead to axle failures.
"The goal is not just to take data I have today, but to go back and look at the data we have already and see if it shows we could have predicted a historical failure," Stokes says. His team would look at the broken-down locomotive and comb through its data banks to try to discern a pattern. "We want to turn that into an algorithm that helps us predict the future," Stokes explains. "We want to say: These three conditions, in this sequence, mean there's a 90% chance this failure will happen."
Predictive analytics is the application of advanced statistical analysis of structured and unstructured data sources to identify patterns and predict future events or outcomes. For example, predictive analytics can provide companies with a look into the future and give them opportunities to identify emerging patterns in the marketplace that can lead to highly effective and personalized customer engagement strategies.
3. Beyond Push and Pull, You’ll Be Able to Predict.The old way of manufacturing was based on a push system. You’d produce a product based on your expectations of demand, and then push it out to various markets accordingly. Expectations like the best laid plans, often go awry. So the next step was to create a pull system, where demand and inventory stock triggered production up the supply chain. This is a good system, but it depends heavily on accurate data, and many companies find it difficult to execute without a centralized visibility platform.
The IoT will further incentivize moving toward a centralized visibility platform by taking push and pull a step further—it will use real-time data and analytics to predict demand, combining the best of planning and execution. Real-time data would feed into constantly improving models of demand, creating a production system that’s always in pulse with the markets.
An approaching third wave, enabled by data and analytics, does something new. It strikes an agreement between GE and a customer for a certain kind of outcome, rather than a certain kind of functionality.
"Or we're selling locomotion, not locomotives. And we guarantee that back to our customers.
GE announced today that it was expanding its Predix Internet of Things platform to provide Infrastructure as a Service (IaaS). With today’s announcement, the company will be providing infrastructure services to run those applications.