what impact will the internet of things have on supply chain? a discussion - ninette vaz, intel

Ninette VazSupply Chain IOT Business Development Manager

Customer Fulfillment, Planning and Logistics Group (CPLG)

AGENDA

• Challenges We Face

• The Internet of Things

• Accepting the Challenge

Challenges We Face

Macro Pressures• Globalization/ Emerging Markets

• Environmental / Safety/ Social

• “Consumerization” Expectations

• Cyber/Terrorist Threats and Theft

• Fuel Price and Labor Availability

• Urbanization/Port Congestion

• Competitive/Dynamic Market – M&As

IOT + Big Data:

• Predictive Analysis

• Real-time Tracking

• Trusted Visibility

• Resource Utilization

• Dynamic RoutingInd

ust

ry V

alu

e

•Cost of Tracking Solutions

•Device Reverse Logistics

•System Integration

•Data Security / IP

•Data Management

•Common Standards

IOT Logistics Implementation Challenges

The internet of things

IOT OVERVIEW VIDEO

The Internet of Things is… Intelligence Everywhere

Automotive

DC/Cloud

Logistics

Network

Gateway

Supply Chain

*** Goldman Sachs** IMC/EDC: The Digital Universe of Opportunities* IDC

***COST OF

SENSORS2X

PAST 10 YEARS

COST OF BANDWIDTH

40XPAST 10 YEARS

COST OF PROCESSING

60XPAST 10 YEARS

44ZETABYTES**

*

85%UNCONNECTED

The Supply Chain … IOT Opportunities Everywhere

Suppliers

Source

Distribution Center

Distributors

3PL Logistics

Deliver

Customer DCs

Returns

3PL Logistics

Make

Manufacturers

Suppliers

*Source “The Internet of Things In Logistics” – DHL & Cisco Consulting 2015

15% OF WORLD GDP

$13.5T

LOGISTICS SPENDING

TOTAL MARKET $8T

IoT VALUE STAKE

25% OF TOTAL IoT VALUE $1.9T

SUPPLY CHAIN & LOGISTICS

***

Gartner Top 25 Supply Chains & IOT

Gartner’s Trends among supply chain leaders* • Bimodal Supply Chains – excel at cost

containment as well as the ability to promote and support the top line.

• Increased Customer Intimacy – collecting data about the sale but also patterns of usage and sentiments of the end-user.

• Emerging Digital Business Models –leverage digital capabilities to support new business models and improve value chain performance.

Gartner Research ranks supply chains that best demonstrate leadership in applying demand-driven principles to drive business results

* Stan Aronow, Research VP, Gartner and Gartner’s Top 25 SC for 2015”*Other brands and names may be claimed as the property of others.

PELOTON VIDEO

Manual measurement process…

Handwritten measurements on crate to verify branded measurements (not always there) on crate

FREIGHT DIMENSIONING

*Other brands and names may be claimed as the property of others.

Accepting the Challenge

Which group do you and your company fall into?

What You Can Do Now!Understand

Identify

Collaborate

Innovate

Visit: www.intel.com/iot

for more information!

Begin to look for opportunities to use IOT in your personal lives and in your business.

CTL VIDEO

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