Big data. Internet of Things. in Global Automotive Logistics. Automotive Logistics China 2016, Chengdu
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1 Big data & Internet of Things in Global Automotive Logistics Automotive Logistics China 2016, Chengdu
2 INFORM I Leader in Optimizing Logistics What makes INFORM special: Optimization in logistics More than 550 employees - global projects - focus on automotive logistics HQ in Germany; revenue in million Many automotive customers like
3 INFORM I Leader in Optimizing Logistics Industry Logistics Mathematical
4 INFORM I Leader in Optimizing Logistics Industry Logistics Mathematical INFORM
5 INFORM I Worldwide Customers INFORM optimization systems are used by more than 1,000 companies worldwide
6 INFORM I Worldwide Customers Memphis Cargo Hub: 250 planes / 17 million parcels each night 6
7 INFORM I Worldwide Customers Hamburg CTB: Germany`s largest container terminal I 7
8 INFORM I Finished Vehicle Logistics Yard / Compound Flow Optimization Regional / Global Distribution Networks Road / Rail / Sea Transport Optimization e@logistics award 2008 of the German Automotive Industry INFORM GmbH
9 INFORM I Inbound Logistics More than 50 car factories More than trucks per day handled by SyncroSupply
10 INFORM I Real time optimization technology in automotive
11 Automation & Innovation I How can it help supply chain managers? 1) Big data 2) Internet of Things 3) Physical Internet 4) Innovation in trailers, containers and racks 5) Make all pieces work together
12 New technologies I How can it help supply chain managers? There is still a lot to win: 1) Global inventories How reduce it with 20%? 2) Global transport cost How reduce it with 20%? - reduce waiting - reduce empty driving - reduce half empty trucks - reduce leadtimes
13 Big data I How can it help to reduce inventories? Germany Hungary Russia LDCs (Local Distributio n Center) ADV (Areas Distribution Center) USA Panama Venezuela India South Korea Japan Shanghai Thailand Taiwan Malaysia Singapore LDCs - in planning Brazil Central warehouse (world-wide delivery) Potential commencement Chile Argentina Australia Copyright INFORM GmbH
14 Big data I How can it help to reduce inventories?
15 Stock value Availability Big data I How can it help to reduce inventory costs? [%] Service level > 99 % Stock Availability CW 16 CW 52 Sustainable stock reduction > 20%
16 Big data I How can it help supply chain managers? 1) Global inventories How reduce it with 20%? 2) Global transport cost How reduce it with 20%?
17 Big data I How can it help to reduce transport costs? Input: All possible locations, connections + rates from RFQ portal throw this at the optimizer Output: Least cost routing 17
18 Big data I How can it help to reduce transport costs? Plant Port / Compound Modification Distribution Center Dealer Transport Means Carriers Yardoperators Contract Conditions Rates Capacity Constraints Lead & Dwell Times Transport Time Emissions Carrier Quality Damages On-Time performance Operational Considerations Number of Ports, Compounds Number of Carriers Compounds or Carriers for Regions Changes from Current Network INFORM GmbH
19 Big data I How can it help to reduce transport costs? Build Scenarios according to different business criteria Compare savings potential for different conditions Analyze the impact of different weight on optimization criteria Analyze the impact of applying restrictions Baseline Current Network Optimization Result 1 Optimization Result 2 Scenario 3 Scenario 3 Optimization 47,148,634 USD 39,459,245 USD 41,989,001 USD Validate current network Impact of rate changes Impact of volume changes Lowest cost scenario No limit on changes Low weight on transit times Lowest risk scenario Limit on changes Focus on transit times User defined Scenarios The impact of changing input and optimization conditions is fully visible INFORM GmbH
20 Big data I How can it help to reduce empty driving? 1) From route optimization to balancing flows 2) From individual optimization to collaborative optimization 3) From own industry to inter industry
21 Internet of Things I How can it help supply chain managers? 1) Input: Via smartphone app or handheld 2) Output: From paper to smartphone/handheld 3) Planning: From daily to minute 4) Accuracy: From block to parking space 5) More self service: E-gate at DC/factory Examples today in logistics?
22 Internet of Things I How ensure cars are produced & delivered on time?
23 Internet of Things I How can it help supply chain managers? 1) In the factory at the production line 2) In the vehicle distribution center 3) In inbound logistics for incoming trucks
24 Internet of Things I How can all parts be on time at the production line? Audi 180,000 move orders per day to supply the assembly line
25 Internet of Things I How can all parts be on time at the production line? From ramp to assembly line plant border Supplier Transport Service Provider Supplier Storage locations H12 H B4513 Logistics Centre deliveries of large units picking zone delivery of picked material small-parts single delivery P r o d u c t i o n l i n e Hub/Supplier JIT-deliveries Systems Logistics Division
26 Internet of Things I How can it help supply chain managers? 1) In the factory at the production line 2) In the vehicle distribution center 3) In inbound logistics for incoming trucks
27 Internet of Things I How are vehicle distribution centers changing? 2.5 million cars in 2015 in Zeebrugge port: largest car terminal in world User 40% growth since 2012 ICO is leading party: 1.7 million in 2015 in Zeebrugge 27
28 Truck 17 Truck 48 Truck 11 Truck 76 Truck 37 Truck 12 Internet of Things I Every spot is pointed out to person and system User VW Mexico, Yard and Transport Optimization Truck 30 Truck 31 Truck 46 Truck 07 priority units fast mover slow mover ByPack CP 8 Nave 38 premium cars 28
29 Internet of Things I Person gets instruction via smartphone or handheld Job assignment Movements and inspections are triggered by orders Resources are planned in an optimized way Optimizer assigns automatically best order to driver 1 2 Damage Yard 3 Minimize number of handled cars Minimize use of shuttles Minimize time and distances Optimized Workflow 29
30 Internet of Things I Drivers can have Quick Check In Self- check-in and check-out for automated gate processes 50% reduction in waiting 30
31 Internet of Things I How can it help supply chain managers? 1) In the factory at the production line 2) In the vehicle distribution center 3) In inbound logistics for incoming trucks
32 Audi Quick Check In via Geofencing
33
34
35 Internet of Things I How create quick check in in factories?
36 Internet of Things I How much improvement can be realized? Slotting From 3 hours to 2 hours Quick Check In From 2 hours to 1,5 hour 650 trucks per day save 0,5 hour per trip using - Smartphone app - Paperless process - No stop at gate (automatic recognition based on geofencing)
37
38 Automation & Innovation I Physical Internet Initiative
39 New technologies I Hardware Stop with empty trucks in finished vehicle logistics Stop with transporting empty containers Stop with half full trucks
40 New technologies I Summary Create global optimized logistics & help to reduce CO2 Big data Internet of things Collaboration between companies and industries New logistic tools - foldable container - convertible trailer - tools to fill trucks/containers better We need to combine all these pieces to solve the puzzle!
41 INFORM I More Information Ruud Vossebeld Director Business Development ruud.vossebeld@inform-software.com Phone or Internet
42 INFORM I Finished Vehicle Logistics SyncroTESS CPS Northamerica Europe + Asia UK EU Network Planning Valencia * Lincoln China (Shanghai) Used in 22 locations 1.7 Mio. VIN in 2015 India: CVAP CVAP VMC SVAP, ports Thailand: FTM *, AAT, ports CPS + CMS CPS + CMS/VMC CPS Southafrica FoA/FNZ (planned 2016) INFORM GmbH
43 Thank you!
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