IoT Insight 2019 by Eastern Trade Media

INDUSTRIAL INTERNET OF THINGS

SUPPLY

CHAIN A NEW PARADIGM

PG10

ROBOTS IN MANUFACTURING AND ASSEMBLY

PG15

MOBILE TECHNOLOGY IS THE FUTURE

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DIGITAL LOGISTICS AND FLEET MANAGEMENT

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System integration via standard protocols ▪ ERP ▪ Industrial Automation ▪ IIoT and Cloud services

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Supply Chain 4.0: Overview

CONTENTS

05 > SUPPORTING THE SUPPLY CHAIN ECOSYSTEM

Sixteen of the top 20 bilateral trade routes worldwide will include APAC markets – representing US$ 4.7 trillion in trade value by 2030, according to PwC. Article by Tuan Le, General Manager, ASEAN and Korea, Orange Business Services.

08 > DRIVERS OF SUPPLY CHAIN INNOVATION

Customer experience is the top factor driving supply chain innovation, a recent study concludes. And the key to innovation is placing customers in the centre of supply chains. Article by Joseph Lim, Sales Director, APAC, BluJay Solutions.

15 > MOBILE TECHNOLOGY IS THE FUTURE

Zebra Technologies Corporation has recently released its vision study on the Future of Field Operations in Asia Pacific. IAA asks Tan Aik Jin, Zebra’s APAC Vertical Solutions Lead, Manufacturing and Transportation & Logistics, about his views from the findings. Article by Ahmad Alshidiq.

18 > ENERGY CHAIN GUIDE FOR STORAGE AND RETRIEVAL MACHINES

The SIVAplan GmbH & Co. KG is a specialist in sophisticated storage systems mainly for foodstuff logistics. For its storage and retrieval machines, SIVAplan has tested a new energy chain guide system, which offers a weight advantage while making the installation much faster. Article by igus. Warehouse Automation & Inventory Optimisation

Manufacturing: The First Stop

10 > ROBOT’S ROLE IN MANUFACTURING AND ASSEMBLY

Smart manufacturing today combines the customisation, craftsmanship and closeness to customers of the preindustrial era with the speed and efficiency of modern manufacturing.

22 > CUTTING ENERGY, OPERATIONAL COSTS TO MAXIMISE CAPABILITIES IN COLD CHAIN Having automated their production lines, many companies are turning to logistics automation to further optimise their complete production and logistics operations, reduce costs, and improve customer service levels. Article by Dematic (Malaysia) Sendirian Berhad.

Article by Delta Energy Systems.

12 > AUTOMATION NEEDED IN PACKAGING EQUIPMENT MARKET

24 > DEBUNKING FOUR MYTHS ABOUT WAREHOUSE UPGRADING

Article by Arun Ramesh, Team Lead, Agriculture & Nutrition at Frost & Sullivan.

Article by Poul Lorentzen, General Manager, Consoveyo Singapore.

Equipment manufacturers will have to embrace new ways of working by investing in new capabilities such as advanced data and analytics, robotics and automation.

Many companies still hold the misconception that regular maintenance of warehouse equipment is irrelevant, costly and a waste of resources.

Last Mile Fulfilment

26 > SIX STEPS TO FLAWLESS FULFILMENT

Best practices are presented for integrating mobile, wireless and data capture technologies into warehouse management. Article by Stuart Scott, Director, Solutions Marketing, Asia Pacific & Middle East, Motorola Solutions.

Digital Logistic & Fleet Management

29 > DIGITAL LOGISTICS AND FLEET MANAGEMENT FOR HIGHER EFFICIENCY, LOWER COST

In the past, fleet management only provided vehicle location tracking and scheduling functions, but contemporary fleet management systems demand expedience, and this has been brought about by smart management systems.

End-To-End Monitoring

36 > DELIVERING THE GOODS WITH BETTER LOGISTICS

The delivery phase of the D2O product lifecycle can be boiled down to the following question: Where is my stuff and how is it doing? This question may seem simple, but in the context of today’s complex supply chains, it is anything but. Article by Markus Rosemann, Global VP for Digital Logistics and Order Fulfillment, SAP SE.

Article by Yu-Feng Chen, Advantech.

32 > ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN MANAGEMENT Businesses today manage evercomplex supply chains, facing new challenges in both the planning and execution phases.

Article by BOGE Kompressoren Asia Pacific.

34 > ROBOTS IN LOGISTICS – THE NEXT STAGE OF GROWTH

The market opportunity for robots in logistics is here – so are the challenges for the vendors. Article by i-SCOOP.

38 > CREATE AN EFFECTIVE END TO END SUPPLY CHAIN PRESENCE

The ability to optimally integrate all areas of the supply chain is key to meeting customer and shareholder needs. Article by Adam Robinson, Cerasis.

Editor’s Note

Leveraging IIoT In Supply Chain Management

PUBLISHER Kenneth Tan EDITORIAL SENIOR EDITOR Ahmad Alshidiq alshidiq@epl.com.sg EDITORIAL ASSISTANT Sharifah Zainon sharifah@epl.com.sg CREATIVE GRAPHIC DESIGNER Chan Fei Ching feiching@epl.com.sg ADVERTISING SENIOR SALES MANAGER Derick Chia derickchia@epl.com.sg CIRCULATION CIRCULATION EXECUTIVE Cathy Tan cathy@epl.com.sg

Supply chain management (SCM) is an important aspect to determine the success of a manufacturing business. Streamlining the SCM is important to help manufacturers respond more quickly to market changes while improving their operational efficiency. The SCM is a systematic approach to managing the distribution of goods from producers of raw materials, through manufacturers and eventually down to end users. And in the manufacturing industry, the technological developments that we are seeing – such as the industry 4.0, internet of things (IoT), AR/VR, robotics, ERP, and more – are indeed exciting. It is an inevitable fact that technology cannot be separated from the manufacturing business. The latest manufacturing technology trends have proven to be able to simplify various manufacturing processes, including supply chain management. SCM affects manufacturing companies in a variety of ways, including the availability of inputs needed for production processes, costs and profitability of manufactured items, company infrastructure and ways in which companies interact with their suppliers and customers. Understanding the ways that SCM affects manufacturers from both a daily operational perspective and a strategic viewpoint is important for all managers and entrepreneurs in the industry. It is more apparent now than ever that the world of logistics & supply chain and manufacturing is quickly becoming digitised as modern manufacturers squeeze every ounce of efficiency they can out of production processes to remain competitive in the global marketplace. Enjoy!

Ahmad Alshidiq Senior Editor

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Supply Chain

SUPPORTING THE SUPPLY CHAIN ECOSYSTEM Sixteen of the top 20 bilateral trade routes worldwide will include APAC markets – representing US$ 4.7 trillion in trade value by 2030, according to PwC. ARTICLE BY TUAN LE, GENERAL MANAGER, ASEAN AND KOREA, ORANGE BUSINESS SERVICES.

HE GLOBAL PRODUCTION landscape has undergone significant changes over the past few decades, with businesses spreading their supply chain networks across multiple locations worldwide to benef i t from cheaper labour, regulatory incentives and proximity t o g r o w i n g c o n s u m e r m a r ke t s . According to the UN, intra-regional trade already accounts for more than half of APAC (Asia Pacific) imports and exports. Advanced logistics hubs such as Singapore and Hong Kong demonstrate a strong potential for evolving into digital nerve centres,

managing the rising complexity of supply networks in APAC in the coming years. Now, picture this: just like how neural circuits interconnect to one another to form large scale brain networks, biological neural net works have inspired the design of digital neural networks. This is also being played out in the world of supply chains – as APAC is projected to account for the largest share in retail e- commerce sales worldwide (66 percent) by 2021, there is rising interest in the digitalisation of this network to effectively manage the fast-growing order flows.

RISING SUPPLY CHAIN COMPLEXITIES According to PwC, 16 of the top 20 bilateral trade routes worldwide by 2030 will include APAC markets – representing US$ 4.7 trillion in trade value by 2030. However, there still exists multiple challenges including infras t ruc ture gaps, operat ional complexities and evolving market dynamics that need to be addressed to achieve this goal and strengthen APAC’s position in global supply chains. These challenges make it difficult to understand how disparate parts of the supply chain interact, and where possible bot tlenecks or areas of optimization could be located. To circumvent this, supply chain businesses need to evolve from a traditional linear approach IoT INSIGHTS | 5

to an integrated digital model, and establish centralised, technologydriven hubs to better manage their regional networks. SMART, DIGITAL SOLUTIONS FOR THE SUPPLY CHAIN ECOSYSTEM New technology solutions such as next-generation analytics, autonomous transpor tation, wearables, asset tracking and smar t contracts are enabling an ecosystem-wide integration to drive greater operational 6 | IoT INSIGHTS

efficiencies and build a smarter supply chain model. According to PwC, in a survey on the digital transformation of supply chains in APAC, 40 percent of respondents reported to have already deployed technologies such as collaboration applications and supply chain analytics with utilisation expected to rise beyond 50 percent for these applications in the coming years. Analytics is expected to gain strong traction, with a large percentage

of businesses planning to adopt these solutions to fuel smarter sales operations, inventory management, asset performance and transportation. For instance, Singapore launched Projec t SAFER (Sense - Making Analy tics for Maritime Event Recognition) in 2017 to optimise port operations by adopting predictive analytics and machine learning based solutions that improve vessel tracking, detect illegal activities and accurately predict vessel arrivals.

A fully digitised electrical power distribution system gives you the deep insights you need so you’re no longer ‘working blind’. we’ll have a look at the specific digital technologies that can help you achieve your continuity and efficiency goals faster, while making your job easier. models such as truck platooning are being tested in Singapore where a series of automated trucks are able to follow a lead truck piloted by a human employee, helped by mapping software and short-range radars. One company that has deployed s o m e of t h e s e n ew te c h n o l o g y solutions in its supply chain management is APL Logistics. By h a r n e s s i n g A I a n d a u to m a t i o n , APL Logistics was able to reduce i t s o p er at io nal cos t s acros s i t s 200 logistics facilities worldwide. I t w a s a l s o a b l e to p ro v i d e i t s customers access to information about the services they are using, improving on customer service and experience levels.

Emerging wearable systems such as ‘pick-by-vision’ smart glasses provide an optimised picking list for workers, to find the right products in less time and with lower training requirements. Advanced automation solutions are increasingly being adopted for intrawarehouse logistics to help reduce labour costs while also improving productivity levels, such as drones for stock-taking in the warehouse, which is highly tedious and prone to human errors. For external transport, hybrid

ESTABLISHING THE DIGITAL NERVE CENTRE As supply chains become geographically more diverse and complex , new s truc tural models are emerging to help maximise the impact of digital integration. These structural models will require new data processes to be established for ef fective information sharing. Businesses can look to cloud -

based collaborative platforms with more sophisticated processes for information exchange, ones that promote data sharing while addressing concerns of data transparency and confidentiality. Going forward, the effectiveness of supply chain networks will be a key contributor to global competitiveness, driving both governments and private sector firms towards digital adoption. Countries across APAC are stepping up and developing new capabilities to enable the flow of goods in the digital era. For instance, Singapore launched a new trade services platform (the Global e-Trade Services), connected to m u l t i p l e fo rei g n g ove r n m e n t agencies and businesses, to enable faster cross-border clearances. These initiatives will prove to be essential in the establishment of digital nerve centres that will be responsible for multiple aspects of the supply chain, including collating and analysing information (from tracking devices, social listening and traffic feeds), aler ting stakeholders of potential disruptions and informing them of remedial actions.

IoT INSIGHTS | 7

Supply Chain

DRIVERS OF SUPPLY CHAIN INNOVATION Customer experience is the top factor driving supply chain innovation, a recent study concludes. And the key to innovation is placing customers in the centre of supply chains. ARTICLE BY JOSEPH LIM, SALES DIRECTOR, APAC, BLUJAY SOLUTIONS.

JOSEPH LIM, SALES DIRECTOR, APAC, BLUJAY SOLUTIONS.

UPPLY CHAIN and logistics managers are feeling the impact of rising consumer expectations that come with the ‘now economy’ – a time when products, services and experiences are expected in an instant. Southeast Asia is in the midst of an internet economy boom. The regions’ e-commerce sales were valued at US$72 billion in 2018, rising 37 percent from the year earlier. The e-commerce giant, Alibaba, can process five million parcels through customs in under five hours. I n a co m p l ex a n d f a s t - p a ce d env ironment , t he indus t r y mus t adapt, but many of Southeast Asia’s logistics companies are inundated by infrastructure challenges and are unable to compete in terms of scale, network capacity and innovation. According to a recent study conducted by BluJay Solutions and Adelante SCM, customer experience is the top factor driving supply chain innovation. The key to innovation is 8 | IoT INSIGHTS

placing customers in the centre of supply chains. Drivers And Barriers To Innovation Innovation itself is a broad concept that many companies do not know how to approach. There is no doubt that new technologies are emerging that promise to transform supply chain operations, but only a few fulfil their potential. Some in the industry make the mistake of becoming enamoured with new technologies, while others mistakenly dismiss the benefits these can have altogether. It sounds simple, but to innovate, businesses need first to build a firm foundation and get their processes right. Customer-centric businesses are fo cu sing on t r ansp or t at ion , warehousing, and improving supply chain visibility as a priority to optimise their operations, decrease costs and improve customer experience. Supply chain leaders who are always looking at way s to dif ferent iate themselves, those with an outwardfocused approach, recognise the importance of flexibility, collaboration and an integrated solution. On the other hand, there are the laggards. These businesses have fallen behind as they’ve focused on cost reduction as a primary driver of innovation and have found it challenging to look beyond existing systems. Laggards have become complacent with their current environment, or they view certain barriers to innovation as being too difficult to overcome. This includes operating in silos between systems and processes, relying on

outdated IT systems like Excel, coupled with fear or uncer taint y on new, unfamiliar technologies and trends. The truth is, innovation does not have to be disruptive. Instead it is the combination of new, proven technologies and optimising existing process. BECOMING ELASTIC Today, the logistics industry largely relies on outdated legacy IT systems that cannot keep up with growing customer expectations for granular detail and visibility. From fluctuations in demand and environmental challenges to political

events like the trade war, disruption can be par ticularly frustrating for businesses. Things are harder in countries with inadequate infrastructure and high geographical barrier s, like Indonesia, resulting in higher logistics costs. Operating on a static, closed, onpremise transportation solution does not allow flexibility to adapt to the changes in customersâ&#x20AC;&#x2122; demand and uncertainties that affect the market. The first step to overcome these changes is to join a global trade network. The power of a network lies in its ability to bring clarity and visibility to everything that is happening within the supply

chain, while of fering on- demand connections to thousands of potential carriers that have execution capabilities when needed. Underlying this global trade network should be a centralised, cloud-based technology platform. A benefit of cloud-based platforms is that they do not require time-intensive maintenance. Further, combined with the global trade network model, they allow a business to scale up, or down, dependent on the businessâ&#x20AC;&#x2122; needs. Businesses should look for platforms that are best of breed and provide capabilities such as market insights, automation to speed up processes

(such as customs documentation) and provide the foundation for flexibility and operational creativity. Companies need to have proper processes and systems in place and start to review outdated systems and begin to optimise these. The rise of automated and smart systems will change the way logistics companies interac t and encourage greater collaboration and partnerships within the industry. A customer-led business that has a holistic approach to new technologies and considers the entire supply chain is vital for those looking to maintain a competitive advantage in the current market. IoT INSIGHTS | 9

Manufacturing

ROBOT’S ROLE IN MANUFACTURING AND ASSEMBLY Smart manufacturing today combines the customisation, craftsmanship and closeness to customers of the preindustrial era with the speed and efficiency of modern manufacturing. ARTICLE BY DELTA ENERGY SYSTEMS.

EFORE THE INDUSTRIAL RE VOLUTION changed the way we work, most manufacturing was done by a single skilled artisan and a team of assistants. In time, entrepreneurs in rural towns organised several manufac turing households into a single enterprise to manufac ture goods for the agricultural industry. Revolutionar y technologies and the dawn of the industrial age laid the foundation for growth in mass production focusing on speed and s t a n d a r d i s a t i o n . To d a y ’s s m a r t manufacturing combines the customisation, craf tsmanship and closeness to customers of the preindustrial era with the speed and efficiency of modern manufacturing. Computer and robotic integrated 10 | IoT INSIGHTS

manufacturing, smart manufacturing has shifted manufacturing from the mechanical to the digital realm. TECHNOLOGY BRINGS UNIQUE CHALLENGES Yet all these advances in technology bring their own unique challenges. Smart production lines need intelligent, agile and flexible workstations to execute faster and more precise processes. Meanwhile, manufacturers face increasing demands to improve production ef ficiency and qualit y while keeping to tight budgets. In today’s high-stakes manufacturing industry, robots play a critical role in automation by eliminating labour, increasing productivity and improving the efficiency of the entire production line. And with the high repeatability,

excellent precision, linearit y and ver ticalit y, indus trial robot s can op er ate in v ar iou s ap p lic at ions and industries. SCARA ROBOT IN ASSEMBLY PROCESS One manufacturer in the semiconduc tor indus t r y applied Delta’s SCARA robot to support their Flexible Printer Circuit (FPC) board shuttle conveyor production. The robot moves to the standby position before the assembly process begins and when operations begin it target models and quantities that are in it s pre -set sof t ware. The robot’s software can also calculate the yield of the device based on its condition. This solution can be applied in the assembly process for fast material a r r a n g i n g , w i t h a n a cc u r a c y of approximately 0.1mm. In the assembly process, finished products from a laminating press

deliver to the shuttling workstation by the conveyor for vision positioning. When an FPC board is placed on the conveyor belt, a camera will identify its position and placement and then send real-time data to the robot. After aligning the position compensation, the vision system sends the new coordinates to the robot. The robot follows the conveyor belt, picks the product based on the vision and position data and then places the products into a tray. The robot then goes back to the standby position to pick the next product. All the while a reloading mechanism replaces full trays with empty ones. MANUFACTURING FLEXIBILITY Delta’s Selective Compliance Assembly Robot Arm (SCARA) is a solution to s t re n g t h e n yo u r m a n u f a c t u r i n g flexibility. Along with the 4-axis, SCARA robot , it enables high - repetition positioning accuracy and consistent quality. This robot suits both standalone and workstation applications, enabling flexible modularised production lines with consistent quality. Manufacturers in the electronics, rubber, plastic and packaging industries can leverage this robot solution for a wide range of applications including insertion, screw locking, precision a s s e m b l y, d i s p e n s i n g , co a t i n g , soldering, load and unload, pickand-place, stacking, packaging, and inspection. The solu t ion has P C - sof t ware consisting of a secondary development platform for easy and flexible customisation. Its general co m mu nic at io n in te r f a ce ea si l y connects with different machine vision systems and modules. Its simple s y s te m s t r u c t u re e n a b l e s e a s y configuration with Delta’s industrial automation products. AUTOMATION FOR A CHANGING WORLD An offline simulation module with real -time information monitoring and analysis helps IT managers preevaluate the machine’s performance,

do vision inspec tion for produc t orientation and cost-save in the planning stage to guarantee a reliable outcome. During implementation, the SCARA auto-calibration software combined with vision allows oneclick calibration which saves you commissioning time. After deployment, DRAStudio programming supports various applications and creates an

offline simulation environment for your robots. As smart manufacturing becomes the new norm for factories, Delta is ready to help you meet today’s market demands and satisfy your customers’ needs. The company continues to drive innovation and efficient robot solutions as part of our commitment to “Automation for a Changing World”.

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IoT INSIGHTS | 11

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Manufacturing

AUTOMATION NEEDED IN PACKAGING EQUIPMENT MARKET Equipment manufacturers will have to embrace new ways of working by investing in new capabilities such as advanced data and analytics, robotics and automation. ARTICLE BY ARUN RAMESH, TEAM LEAD, AGRICULTURE & NUTRITION AT FROST & SULLIVAN.

H E G LO B A L d e m a n d f o r food is growing at a rapid rate. According to the United Nations, food production needs to be increased by 70 percent by 2050 to meet the growing demand. The rising demand for food products globally, driven by increasing population, disposable income, and awareness of health and wellness, have increased the need for advanced and effective processing and packaging equipment that offers a higher production output compared to traditional machines. Global food and beverages processing equipment market 12 | IoT INSIGHTS

revenue is expec ted to record a compound annual growth rate (CAGR) of 4.6 percent by 2022 to reach US$56,434.2 million with significant demand for equipment across different end applications. Global food and beverages packaging equipment market revenue is expected to record a CAGR of 5.9 percent by 2022 to reach US$22,166.8 million. T he n e e d fo r au to mat io n a n d advanced equipment is driven by demand across end applications such as meat and poultr y, dair y, beverages, fruits and vegetables, and bakery. For instance, preference

for func tional beverages and protein drinks across developed and developing regions is a key driver in the beverages segment. An increase in poultry meat production in regions such as the US, EU, Russia, and India will also positively impact the market, so continuous processing and packaging machines with minimal time lag and downtime are essential in this market. With fast-expanding bakery chains and modern distribution channels (supermarket s and convenience stores) on the rise in the APAC region, manufacturers are also turning toward advanced machinery for kneading and other processes. Besides end-market demand, the high cost of labour in countries such as the United States, low labour retention rates, and immigration policies across different countries are

anticipated to accelerate the need for innovation and equipment automation with improved functionality. In addition, there is rising pressure for hygiene and food safety requirements with cost per unit becoming more critical. This will urge processors to use advanced processing and packaging machines, driving market growth. Machine downtime is still a major concern in the industry, and there is room for further investment in research and development (R&D) among equipment manufacturers to develop equipment that caters to such customer pain points, improving yield and optimising the total cost of ownership. Food processors are looking at the following elements to ensure they not only achieve higher equipment productivity rates, but also comply with food safety regulations: CIP (Clean in Place), preventive maintenance, IIoT

data management, automation and robotics, and flexible and customisable equipment. The food processing equipment market is not only driven by food and beverage companies. Contract manufacturers and other small-scale food processors are also

buyers of these types of equipment. Besides capital expenditure (capex) spending for machiner y, leased machinery is a significant market. As per the Economic Census Bureau, capex increased by 2.9 percent and lease by 5.8 percent between 2012

IoT INSIGHTS | 13

More technologies and processes are being used across different end applications. For instance, the High-Pressure Processing (HPP) technique, which was used for preserving jams, juices, and beverages, is now gaining popularity given the increased preference for food safety. and 2014. With growing demand across different end applications in t h e fo o d i n d u s t r y, t h i s t re n d i s expected to increase, driving the equipment market. More technologies and processes are being used across different end applications. For instance, the HighPressure Processing (HPP) technique, which was used for preserving jams, juices, and beverages, is now gaining p o p u l a r i t y g i ve n t h e i n c re a s e d preference for food safety. Use of HPP has expanded to almost all food products, including fish and meat, seafood, yogurt, rice cakes, salads, and grains. While global investment in HPP is still in the nascent stage, this equipment market is expected to grow significantly in the future. Major equipment manufacturers like GEA, JBT Corporation, Buhler, M a re l , a n d C i m b r i a h a v e m a d e numerous acquisitions from 2016 to 20 1 8 , fo c u s i n g o n a d v a n ce d technologies and equipment that cater to specific end applications, with an emphasis on of fering customers tailor-made solutions and focusing on food safety. For instance, JBT Corporation acquired Avure Technologies and PLF International in 2017, adding capabilities in the H PP space for a broad ar r ay of market segment s and powdered product filling and handling systems, respectively. The company also acquired Novus X-Ray LLC in 2016 to gain access to X-ray systems for the automated food inspection industry. Marel, a leader in meat and poultr y processing and packaging equipment , acquired MAJA, a German food processing 14 | IoT INSIGHTS

equipment manufac turer, in July 2018 to expand into equipment for skinning/derinding, portion control slicing, and ice making solutions in the meat, poultry, and fish industry. A SMARTER FUTURE Along with creating smar ter products, equipment manufacturers

should offer end-to-end solutions (installation, monitoring, ser vices, and integrat ion). This , however, requires a more consultative and collaborative approach. Food equipment manufacturers will have to embrace new ways of working by investing in new capabilities such as advanced data and analy tics, robotics and automation. Bridging the gap between produc tion and handling data is essential, and this can be done by developing skill set s to capture, store, and analyse huge volumes of data. Manufacturers should also focus on refreshing their operating models, with an emphasis on enhanced af tersales and grow thfocused strategies.

Manufacturing

MOBILE TECHNOLOGY IS THE FUTURE

N ITS LATEST VISION STUDY on the Future of Field Operations, Zebra Technologies Corporation reveals mobile technology investment to be a growing priority for up to 60 percent of Asia Pacific organisations. The findings indicate that investments will be made in disruptive technologies and enterprise mobile devices to enhance front-line worker productivity and customer satisfaction in field operations including fleet management, field services, proof of delivery and direct store delivery workflows. Based on the findings from the Future of Field Operations Vision study, what are the biggest implications for businesses’ supply chains? The insights from Zebra Technologies’ Future of Field Operations Vision study indicate that businesses today must focus on customer experience, given that the on-demand economy has fuelled the need to deliver more enhanced customer experiences. To stay on top of customers’ growing performance and convenience expectations, investment in mobile technology is a top priority to increase customer satisfaction with mobile payments and faster service. It is imperative for

businesses to focus on customer experience given that it has been reported that 90 percent of Asia Pacific consumers read online reviews before visiting a business, 88 percent trust online reviews as much as personal recommendations and 86 percent hesitate to purchase from a business that has negative online reviews. This increasing focus on customer experience will bring about disruptions to field operations caused by emerging technologies and faster networks across Asia Pacific. Mobile-first organisations in Asia-Pacific tend to be early adopters of emerging efficiency-boosting field operations technologies. These organisations are expected to increase the implementation of sensors, radio frequency identification (RFID) and intelligent labels from 76 percent to 98 percent from end 2018 until 2023. How are changing customer expectations, emerging technologies and faster networks disrupting field operations and logistics? Apart from the increase of the implementation of sensors, RFID and intelligent labels, findings from the Future of Field Operations research also found that the use of augmented IoT INSIGHTS | 15

TAN AIK JIN, ZEBRA’S APAC VERTICAL SOLUTIONS LEAD, MANUFACTURING AND TRANSPORTATION & LOGISTICS

reality applications, which can improve efficiencies in detail-oriented workflows such as merchandising, is also expected to rise from 68 percent to 95 percent in the same time period. We can also expect to see the use of blockchain – to track goods’ chains of custody or document service by multiple partnering firms – similarly rise from 68 percent to 96 percent. In view of this, changing customer expec tations, emerging technologies and faster networks are disrupting f ield operations and logistics in three ways: Scaling mobile technology enterprise-wide - Mobile first organizations are recognizing the efficiencies mobile technology can offer their teams, such as making it easy to read detailed equipment schematics, delivery orders or task checklists and keep workflows moving in a wide range of environmental work conditions. These organizations are expected to scale mobile technolog y enterprise - wide and boos t ing bot h efficiency and the accuracy of inventory, repair and maintenance procedures, merchandising and last-mile delivery. Evaluating the total cost of ownership (TCO) of mobile technology as a standard practice –Field operations decision makers believe in the value of conducting a TCO analysis of enterprise devices. In fact, more than three - quar ters of respondents usually or always conduct a TCO analysis of business devices prior to making a capital expenditure. Interestingly, only 34 percent of respondents believe that consumer smartphones have better TCO than rugged devices which could be indicative of how the latter could be adopted more in future. Utilising emerging field operations technologies leading organisations are early adopters of emerging field operations technologies. These include augmented reality, which can enhance the efficiency of detailed workflows such as merchandising. Other technologies they are adopting include RFID and blockchain – which boost efficiency and data granularity in tracking goods 16 | IoT INSIGHTS

and their chains of custody. Mobile-first operations are combining mobility scaling, building out the Internet of Things and integrating 4G and even faster 5G networks into their operations to get even more value from these technologies.

Why is a necessity for modern businesses to equip their front-line workers with enterprise mobile devices, in order to stay competitive? Modern businesses are now starting to realize that they are operating in the “on demand” economy where consumers expect immediate fulfilment. While technology is creating new opportunities for both consumers and companies, this development has caused complex issues as the strain on front-line workers behind the scenes has never been greater. As the world becomes more and more connected and digitised, businesses need to transform as well or face overworked employees and unsatisfied customers. The Future of Field Operations Vision Study found that 58 percent of the surveyed organisations in APAC are expanding mobile technology to enterprise-wide usage and expected to reach 97 percent by 2023. Meanwhile, from 2018 to 2023, the usage of handheld mobile computers with built-in barcode scanners is expected to grow by 41 percent, while mobile printers and rugged tablets are set to grow by 60 percent and 57 percent respectively. This indicates that organisations understand how mobile technology can improve their teams’ performance, given that mobile devices can enhance the efficiency of front-line field workers by helping them to operate faster and more accurately, regardless if it’s a mobile computer, rugged tablet or a mobile printer. Organisations which equipped their workers with handheld mobile computers that have barcode scanning capabilities can quickly and accurately conduct document inspections in real time. Ruggedised tablets allow fleet managers to extract data from their fleet in real-time, which will help improve proactive maintenance, route optimisation and compliance checks. Cloud computing enables workers to access work orders or other large data quickly and securely.

What are the business benefits of deploying enterprise mobile devices, and of being an “intelligent” organisation? At the end of the day, the key motivator for arming the workforce with mobile computers is to increase business revenue results with higher inventory, shipment and asset accuracy. Leading organisations are seeing opportunities to achieve economies of scale, having seen the efficacies enabled by mobile devices. For example, QuadX, an e-commerce logistics start-up in the Philippines, implemented Zebra’s Android-powered MC 36 mobile computer, complemented by Zebra’s Operational Visibility Service (OVS) platform (now known

as VisibilityIQ Foresight), to help the homegrown company to expand their business . The result saw significant improvement in productivity, business workflows and exponential business growth since the deployment. The field operations industry is clearly undergoing massive change. As the on-demand economy continues to expand beyond our imagination, the consumers thirst for immediacy is only growing. As a result, pressure is mounting on field operations workers. It is only through becoming intelligent enterprises and harnessing new and innovative technologies that organisations can lessen this burden, whilst ensuring maximum profit and most importantly, satisfying their customers.

MAJORITY OF APAC’S LEADING ORGANISATIONS SEE MOBILE TECHNOLOGY AS KEY INVESTMENT

N ITS LATEST vision study on the Future of Field Operations, Z e b r a Te c h n o l o g i e s C o r p o r a t i o n re v e a l s m o b i l e technology investment to be a growing priority for up to 60 percent of Asia Pacific organisations. The findings indicate that investments will be made in disruptive technologies and enterprise mobile devices to enhance front-line worker productivity and customer satisfaction in field operations including fleet management, field services, proof of delivery and direct store delivery workflows. “Based on our study, the top three trends that are driving changes for field operations across Asia Pacific include, growing expectations of performance and convenience from end customers, the replacement of paper in the field by mobile technology, and the disruptions to field operations caused by emerging technologies and faster networks,” said Lim Fang How, Regional Director for Southeast Asia, Zebra Technologies. “In Asia Pacific, more than half of

the organisations have a mobile-first mindset when it comes to adopting enterprise-wide mobile and emerging technologies. And these forwardthinking organisations are setting their field operations apart with three key strategies; the scaling of mobile technology and support technologies enterprise-wide, evaluating the total cost of ownership of mobile technology as a standard practice, and utilising emerging field operations technologies m o re ex te n s i v e l y to a c h i e v e a competitive edge.” KEY SURVEY FINDINGS Equipping front-line workers with enterprise mobile devices remains a priority to stay competitive. In Asia Pacific, up to 44 percent of the organizations view mobility investment as a top priority. 58 percent of Asia Pacif ic organisations are expanding mobile technology to enterprise-wide use – reaching 97 percent by 2023. From 2018 to 2023, the use of handheld mobile computers with built-in barcode scanners in Asia Pacific is forecasted to grow by

41 percent, mobile printers by 60 percent and rugged tablets by 57 percent. The higher levels of inventory, shipment and asset accuracy provided by using these devices is expected to increase business revenues. KEY REGIONAL FINDINGS Asia Pacif ic: 4 4 percent of respondents consider truck loading automation will be among one of the most disruptive technologies, compared respectively to 28 percent globally. Europe, Middle East and Africa: 70 percent of respondents agree e-commerce is driving the need for faster field operations. Lat in A merica: 8 3 percent agree t hat fas ter w ireless networks (4G/5G) are driving greater inves tment in new field operations technologies, compared with 70 percent of the global sample. North America: 36 percent of respondents plan to implement rugged tablets in the next year.

IoT INSIGHTS | 17

Manufacturing

ENERGY CHAIN GUIDE FOR STORAGE AND RETRIEVAL MACHINES The SIVAplan GmbH & Co. KG is a specialist in sophisticated storage systems mainly for foodstuff logistics. For its storage and retrieval machines, SIVAplan has successfully tested a new energy chain guide system, which offers a weight advantage while making the installation much faster. Meanwhile, the “guidelok slimline P” system from the motion plastics specialist igus has proven itself in series production. ARTICLE BY IGUS.

HE SIVAPLAN GmbH & Co. KG has made its mark all over the food industry as well as in other industries as a specialist for automated storage and conveyor systems. When companies are posed with the challenge, for example, of storing 12,000 pallets of frozen cakes or the production in an industrial pizza bakery requiring an uninterrupted refrigeration chain, they turn to the company based in Troisdorf. SIVAplan came into being over 40 years ago as a pioneer in the field of channel storage systems, but now the range of expertise includes all common types of warehousing. Dipl.-Wirt-Ing. Christian Langsdorf, responsible for distribution and project services explains: “We mainly work for companies who see a perfect logistics chain as a success factor. Our customers are primarily medium -sized companies, which maintain a similar corporate culture as SIVAplan.” SIVAplan has been collaborating w i t h s o m e c u s to m e r s fo r m a n y decades, planning extensions and modernising their warehouses besides new structures – if the user so desires (and this is increasingly the case) and also as a general contractor. It features key components of a general contractor supply such as the steel 18 | IoT INSIGHTS

racking shelf system, roof and wall of well-established suppliers. The control engineering, the handling system and also the storage and retrieval machines (SRM) are however basically sourced from our own development and manufacturing. ENERGY SUPPLY UNDER DEMANDING CONDITIONS In every SRM project the tasks of electrical engineering include the designing of t he energ y suppl y to the load suspension device. In addition to the elec trical energy for drives these include the signal transmission, network connection and bus communication. This is a challenge because the SRMs have high dynamics are always on the move. On the one hand the hanging chain must be guided in such a way that it moves freely vertically, and on the other hand that it remains in the track in two axes even at high acceleration or under braking. This can be ensured by the guidelok slimline guide system, whose first generation was developed by igus several years ago. It provides a secure hold for hanging energy chains. In every guidelok segment an automatically actuated rocker provides a secure location of the

energy chain and reliably prevents unwanted swinging or knocking of the chain. When the chain moves in the radius through the segment, the rocker is pressed outwards and unlatched, so that the energy chain can move through freely. If the radius of the chain leaves the segment, the rocker pushes itself inward again and re-secures the energy chain. SIVAplan relies on the principle of this guidance system since 2010. Dipl.- Ing. Michael Huse, manager

electrical engineering: “We use the guidelok sys tem for our s torage and retrieval machines, because i t p e r fe c t l y cove r s t h e s y s te m related requirement s.” SIVAplan designers have been using energy chains and chainflex cables from igus already for a much longer time, that is, for more than 15 years. The close proximity of both companies allows close cooperation a n d h a s a l re a d y l e d to v a r i o u s joint developments.

F o r t h i s re a s o n i t i s a l s o n o t surprising that SIVAplan was the first user of the guide system in the latest generation, the guidelok slimline-P (GLSL-P). Strauch, the igus industry manager for materials handling: “We have developed the new system on the basis of constructive criticism and wishes of our customers, who wanted a more straightforward and above all faster installation.” The special design features of the new guide system GLSL-P include

rocker holder made of plastic and plug-in guide-rails. The advantages for the customer are obvious. On the one hand the whole system is lighter and cheaper by the use of plastic for the holder, on the other hand a drastic reduction in installation time is achieved by the plug-in GRP guide rails. Another advantage of the plastic novelty is that vibrations and noise are better absorbed. Christian Strauch: “The GRP guide rails are simply IoT INSIGHTS | 19

On the one hand the whole system is lighter and cheaper by the use of plastic for the holder, on the other hand a drastic reduction in installation time is achieved by the plug-in GRP guide rails.

plugged into the guidelok plastic segments, instead of being screwed as in the previous version. This allows a simple and very quick installation almost without any tools.” The GRP angles are very dimensionally stable and cold-resistant. Knocks against the rails have no effect compared to the metal troughs, which would immediately show dents or other deformation. Even in cold storages in up to -35 degrees Celsius, the guide rails are tough enough to withstand vibration or shock. FIRST TESTS WITH RAPID PROTOTYPED PARTS After igus had produced the first parts with a rapid prototyping process, SIVAplan installed the new GLSL-P in a new storage and retrieval unit with a height of 24 metres. Three months later, the components were replaced by serial products, manufactured in the injection moulded process. The

advantage of quick assembly came to the fore already at this stage. Another advantage of the new system is the ver y stable guidance through enlarged guide rails. These now have a gliding pad of 40 millimetres. The modular system consisting of the plastic guide GLSL-P and pre-assembled energy chain with chainflex cables that have been specially developed for dynamic applications, have been very satisfactory for those at SIVAplan. “Cables for energy, signals and bus systems are housed in the chain, and in most cases also with data cables for video or image processing systems,” said Michael Huse. In this way it was proven that the energy chain supplied by igus is already preassembled as a ‘readychain’, that is, ready for installation. “When we still had the chain ‘unready’, that is, procured as separate parts with unassembled

chainflex cables, we had to insert the cables into the chain always with great effort and then we also had to check them. Now we can dispense with that entirely. The completely equipped chain has become a single part number.” LAB TESTS PROVE THE HIGH ABRASION RESISTANCE Before the production launch, igus tested the new guidelok slimline P extensively in its own laboratory. Even after 1.5 million cycles on a vertical axis, there was no wear on the GRP material of the guide. Given these characteristics, it is not surprising that many other companies in the materials handling technology sector have decided to use the new GLSL-P. Christian Strauch: “The interest in this novelty is big in the industry. Storage and retrieval ma-chines must always become more energy efficient and lighter and precisely here we can offer the right solutions to our customers with our plastic solutions.”

20 | IoT INSIGHTS

#IOTSWC19

WORLD CONGRESS

BARCELONA 29-31 OCTOBER 2019

DIGITALIZING INDUSTRIES TWO CO-LOCATED EVENTS:

CONNECTED TRANSPORT MANUFACTURING HEALTHCARE ENERGY AND UTILITIES BUILDINGS & INFRASTRUCTURE OPEN INDUSTRY ENABLING IoT

IN PARTNERSHIP WITH:

Warehouse Automation & Inventory Optimisation

MAXIMISING CAPABILITIES IN THE COLD CHAIN Having automated their production lines, many companies are turning to logistics automation to further optimise their complete production and logistics operations, reduce costs, and improve customer service levels. ARTICLE BY DEMATIC (MALAYSIA) SENDIRIAN BERHAD.

HE COLD CHAIN SECTOR is evolving quickly in Asia, expanding to meet the changing dietar y habit s of an increasingly wealthier, more connected population. This is posing challenges for cold chain operations, with the need to handle growing volumes and everexpanding range of products as their companies seek to meet consumer demands. At the same time, cold chain operations are facing challenges from rising energy costs, increasing labour costs and lack of labour availability – compounded by the fact that workers 22 | IoT INSIGHTS

typically don’t want to work in sub-zero environments – along with food safety and full traceability requirements and the need to guarantee continuity of the cold chain from production to the retail shelf or to the customer’s doorstep. Having automated their production lines, many companies are turning to logistics automation to further optimise their complete production and logistics operations, reduce costs, and improve customer service levels. This article looks at how the latest developments by Dematic in Automatic Storage and Retrieval Systems (ASRS),

Automated Guided Vehicles (AGVs), Multishuttle Buffers, as well as Goodsto-Person, ErgoPall and robotic order fulfilment technologies are addressing the challenges cold chain operations are facing and providing them with a competitive edge. MAXIMISING STORAGE CAPACITY AND REDUCING ENERGY COSTS By maximising storage density and allowing greater storage heights, ASRS systems require up to 60 percent less space compared to conventional manual pallet storage. As a result, operations can reduce the cubic volume required to store products, resulting in significant savings in energy required for cooling. Reducing the building dimensions also minimises the primary sources of temperature loss including the floor, ceiling, and walls, which

equates to a more cost- ef fective refrigeration system. The doors to the automated freezer warehouse are smaller and open less often, providing additional energy savings. Without operators, ASRS systems also require significantly less lighting, further reducing energy consumption. Dematic’s ASRS clients have realised energy cost savings in the range of 30 to 40 percent. LOCATING STORAGE NEXT TO PRODUCTION By increasing storage density and allowing greater storage heights, ASRS reduces the required land footprint. This reduces land costs and opens up options for locating cold storage facilities closer to customers. Due to the smaller footprint, ASRS also allows storage to be built next to production facilities, eliminating the need for costly refrigerated road transport between the factory and t he warehouse. N o longer does production have to stop if the staging area in the factory gets congested – for example, if a truck gets held up and can’t do a pickup – as the ASRS acts as a storage buffer between the factory and transport. Risks of breaks in the cold chain are reduced, along with less product damage and waste associated with additional handling and transpor tation. Saving space with ASRS may also free up land for expanding production lines. REDUCING LABOUR AND OPERATIONAL COSTS ASRS fully automates the process of produc t storage and retrieval, eliminating ‘touches’ by operators, and thus, greatly reducing warehouse labour and operating costs. Productivity gains of up to 30 percent can typically be achieved with ASRS. ASRS also reduces waste, damage to products and equipment associated with forklift trucks, and typically have lower maintenance requirements compared to forklif t leasing and maintenance costs.

For consolidated production and distribution facilities, automating the complete process from end-ofproduction line palletising through to an ASRS increases the complete system’s redundancy and resilience. This eliminates potential bottlenecks to cr i t ic al p ro ces s op er at ions — which can occur in manual systems, for example, if an operator leaves accumulated pallets at the end of a processing line. OPTIMISING THE PRODUCTIONSTORAGE INTERFACE Production lines and storage can be further integrated and optimised by implementing Dematic’s Multishuttle buffers between the two processes. This is particularly suited for meat, poultry, fish and seafood operations, where a high proportion of the product range is relatively low volume and where partial or mixedproduct pallets are used. T h e M u l t i s h u t t l e B u f fe r i s a n ASRS case storage and sequencing engine. Pro duc t coming of f t he production line can be consolidated in the Multishuttle Buffer (with activefreezing if the application requires it), and sequenced out to the palletiser, prior to transport to the ASRS. The solution can be deployed to fit within virtually any space, reducing the size of temperature-controlled zones and driving down associated cooling costs. The solution signif icantly reduces the number o f w o r ke r s n e e d e d , a s w e l l a s pallet truck and forklift movements, reducing operating costs. OPTIMISING ORDER FULFILMENT Case and item picking are becoming more common in cold chain operations across A sia as retail grocery customers request smaller quantities of products rather than full pallet loads. While technologies such as Voice Picking – where an operator is directed and confirms picks by voice – can improve productivity and accuracy, the latest Goods-to-Person (GTP) and ErgoPall solutions from

Dematic provide a significant step up in productivity and accuracy. While in a traditional order picking system, pickers travel to storage locations which takes time, in GTP and ErgoPall systems, the products are delivered directly to a picker at a workstation to fulfil the order. The performance benefits are immense: while in a traditional picking system, a picker may typically do 80 order lines per hour, with Voice, this may increase to 120 order lines per hour. In a GTP system, operators can handle 300 to 500 order lines per hour. What’s more, while the product is stored in freezers, the workstations can be located in a chilled zone, providing a more comfor table working environment for operators and eliminating the need for anyone to work in harsh freezer environments. Automating the processes of e n d - o f - p ro d u c t i o n l i n e p ro d u c t consolidation, palletising, transport, storage, order fulfilment and despatch improves customer ser vice levels by ensuring optimal process flow, i nve n to r y av a i la b i l i t y, m a x i m u m inventory, order accuracy and faster order responsiveness. By eliminating the need for operators and forklift trucks, logistics automation significantly reduces the health and safety risks associated with manual handling in cold logistics operations, as well as reduces product damage and wastage. CONCLUSION Dematic’s cold logistics customers across the Asia Pacific region are realising the benefits delivered by ASRS, AGVs, Multishuttles and the latest Order Fulfilment technologies. These solutions allow operations to ma x imise s torage capaci t ies , improve produc tivit y and reduce l a b o u r- d e p e n d e n c y, i m p r o v e customer ser vice levels, optimise the interface between production lines and warehousing , improve s afet y a n d s e c u r i t y a n d re a l i s e substantial savings on energy and operational costs. IoT INSIGHTS | 23

Warehouse Automation & Inventory Optimisation

DEBUNKING FOUR MYTHS ABOUT WAREHOUSE UPGRADING Many companies still hold the misconception that regular maintenance of warehouse equipment is irrelevant, costly and a waste of resources. ARTICLE BY POUL LORENTZEN, GENERAL MANAGER, CONSOVEYO SINGAPORE.

AREHOUSES are full of specialised e q u i p m e n t t h a t m ove, store, control, and protect goods safely and ef ficiently through the manufacturing and distribution process. Regular maintenance of all warehouse equipment helps ensure that a warehouse is kept running well, yet many companies hold the misconception that maintenance is irrelevant, costly, and a waste of resources. What these firms fail to realise is that breakdowns result in unexpected downtime, which incur much higher costs overall than the occasional maintenance. Here are four common misconceptions about warehouse maintenance and upgrading, and why businesses should properly evaluate their options. Myth #1: Regular Maintenance And Upgrading Are Not Necessary Maintenance of material handling s y s te m s , o r a n y o t h e r e l e c t ro mechanical machines, is very much like maintaining oral hygiene. Regular visits to the dentist, as well as daily brushing, will prevent or delay major

24 | IoT INSIGHTS

it imperative that companies conduct regular checks on all equipment. In fact, companies typically upgrade and revamp equipment for two main reasons: obsolete components, or changes in operational conditions. dental bills (and crippling pain!). Similarly, regular inspection of material handling systems reduces the risk of unexpected major equipment failures, as problematic areas would already have been identified in routine checks. Operation teams may be tempted to forgo maintenance altogether as a way of cutting costs. However, the short-term gain of saving money on maintenance will lead to the long-term pain of fixing unplanned breakdowns, which can result in hefty costs due to prolonged downtime. For example, companies who have to undergo unscheduled maintenance and repairs may not be able to service their respective customers in a timely m a n n e r, p u t t i n g t h e co m p a ny ’s re p u t a t i o n a n d a b i l i t y to ret a i n customers at risk. Myth #2: Equipment Upgrades Are Only Necessary When It Breaks Down From shutter doors to conveyors and sensors, each piece of equipment is vital in ensuring that warehouses continue their high throughput. The breakdown of one small part can result in a complete halt in operations, making

Obsolete components A material handling system that was installed five years ago may still serve a company perfectly in terms of speed and capacity, but as time passes, the system will require an ever-increasing am oun t of at ten t io n . I n to day ’s d y namic env iro nmen t , in w hich innovations are rapidly advancing processing capabilities, state- ofthe-art equipment can quickly be come obsolete. Replacing these obsolete par ts often come with a high price tag. Even if the parts can be sourced from third-party companies, the price of these parts often match the obscurity — the harder it is to find the parts, the higher its price. Hence, operation teams need to regularly check on any parts’ lifespan and warranty. If the end of a product warranty is fast approaching, replacement parts need to be sourced and installed as soon as possible. Changes in operational conditions Another scenario where material handling systems might need to be upgraded is when operational

conditions change. For example, a company’s throughput requirement may have increased, or the company may find that the material flow process is no longer ideal. In such cases, operation teams should review the current equipment ins talled and determine if it needs to be upgraded to satisfy the new requirements. Myth #3: Upgrades And Revamps Are Cost Prohibitive M any co m p a nie s a l s o have t h e misconception that fixing unplanned breakdowns are somehow less costly than preventive maintenance, as the latter requires more frequent parts replacement. In reality, revamping or upgrading equipment usually works out to about 20-30 percent of t he cos t re quire d to rep lace defunct equipment. M os t of t he high cos t c an b e attributed to the prolonged downtime

required for the installation of the replacement equipment. For example, Consoveyo upgraded a furniture supplier’s electrical and operational system, and installed a new Warehouse Management System (WMS) at less than half the cost of a brand new operational system. Myth #4: Upgrades And Revamps Require Lengthy Downtime The last misconception most manufacturers and distributors have is that entire warehouse operations need to come to a halt because systems must be upgraded at the same time. In reality, the upgrade can be carried out in phases, eliminating any disruptions to operations. Companies also fear that if one section of the warehouse experiences downtime, it will affect other sections as well, leading to underperformance in key functional areas. OEMs can

help mitigate such fears, as they o f fe r t h e f l ex i b i l i t y to u p g r a d e operational systems on weeknights and weekends, minimising any impact on operations. Ultimately, companies need to keep in mind that revamping usually needs to be carried out every 10-15 years, but this frequency also highly depends on the level of warehouse usage. Regular maintenance and upgrading can help keep warehouses operating a t f u l l c a p a c i t y, ke e p p ro d u c t s safe, and help reduce the cost of production and operations by simply preventing equipment breakdowns. Where operating teams may not be well-equipped with the knowledge to create a suitable maintenance schedule, they can tap on the expertise of authorised equipment specialists to create and carry out maintenance on a fixed schedule — all without breaking the bank.

IoT INSIGHTS | 25

Last Mile Fulfilment

SIX STEPS TO FLAWLESS FULFILMENT Best practices are presented for integrating mobile, wireless and data capture technologies into warehouse management. ARTICLE BY STUART SCOTT, DIRECTOR, SOLUTIONS MARKETING, ASIA PACIFIC & MIDDLE EAST, MOTOROLA SOLUTIONS.

HE WAREHOUSE is at the centre of your business. It is the key hub through which nearly ever y thing in your business must pass — from raw materials and finished goods in a manufacturing plant to pallets and cases in a distribution centre, to a wealth of products in a retail warehouse. But in today’s highly competitive markets, there is something even more important that is dependent on more efficient warehouse operations: customer satisfaction. What is it that your customers want from your warehouse and logistics operations? Accurate, on-time and flawless fulfilment. Every time. 26 | IoT INSIGHTS

MOBILITY AS CATALYST Today’s forward-looking warehouse and logistics professionals are using wireless and mobile technology as the catalyst for driving flawless fulfilment. When mobility is extended throughout your warehouse, new levels of efficiency, accuracy and visibility can be achieved. Ponderous paper processes are replaced by realtime computerised forms on mobile computers. Barcode scanning, including 1D and 2D, enables checking and doublechecking that the right items are being picked, packed and shipped. RFID provides automatic tracking of materials and asset s w i t hou t

human intervention. You can move from automation in a single process to a broad integration of the latest te chnolo gies acros s all of your warehouse processes. THE RIGHT DEVICES In the past, warehouse operations tended to look at mobile devices as one-size-fits-all. That is no longer the case. Today, with the proliferation of smarter, more productive mobile devices, the goal is to make sure employees are using the right device for the right task. Powerful, rugged single and multi-modal devices provide functionalities — from scanning to tag reading to voice picking and more — in

only enables a leaner, more flexible warehouse operation but a leaner, more profitable enterprise as well. Equally important, your enhanced warehouse mobility can ser ve as the foundation for more ef ficient enterprise-wide mobility. Whether you are a manufacturer, retailer, or distributor, your warehouse operations play a pivotal role in making your business successful. That is not a surprise. Just as problematic is technical fragmentation, with the technology available in only a few operations. The truth is, flawless fulf ilment requires technical and operational integration across all your processes and workflows. Following is a look at the essential steps that warehouses and distribution centres can follow â&#x20AC;&#x201D; in sequential order â&#x20AC;&#x201D; to achieve flawless fulfilment.

a variety of form factors such as handheld, vehicle mounted, wearable and hands-free mobile units. Multi-modal technology is rising in importance, providing users with the ability to perform multiple tasks on one device; for example, units that combine scanning, voice and text, with the option of using voice-only, textonly or a combination of voice and text for input. SIX-STEP ROADMAP T h e p a t h to a c h i ev i n g f law l e s s fulfilment begins by following the six steps outlined in this article. They will help create a more collaborative information architec ture that not

STEP 1: Deploy Industrial Wireless Solutions Warehouse and distribution centres are classic examples of dynamic industrial environments that present communications and technology challenges t hat are much more stringent than those of the carpeted space. Todayâ&#x20AC;&#x2122;s warehouses are bigger, taller and more densely packed than ever. There are more Stock Keeping Units (SKUs), shorter cycles, and a premium on fast, accurate fulfilment. As companies strive to respond more quickly and accurately to customer demands, the value of efficient process automation and inventory visibility, storage, movement and control is hard to overestimate. As warehouse environments become more reliant on real-time communications technology to automate and streamline processes, the initial step toward achieving flawless fulfilment is the deployment of a truly industrial-strength wireless and mobile solution. STEP 2: Improve Staff Communications And Management Flawless fulfilment does not happen without everyone in the warehouse working together productively. This

demands fas t and ef f icient task management enabled by real-time voice and data communicat ions between supervisors and employees everywhere in the facility. Managers can proactively direct work orders and assign tasks that are not currently driven by the WMS, as well as monitor the efficiency and progress of work as it is being performed. Equipping warehouse staff with access to instantaneous businesscritical communications systems enhances productivity and provides a real-time coordination platform that can increase task interleaving and help you achieve flawless fulfilment. STEP 3: Streamline Order Picking Processes Warehouses are growing larger in space with an increase in the number of i tems c ar r ie d , b ot h of w hich impact the achievement of flawless fulfilment. In a warehouse sur vey carried out by Motorola, more than half of respondents reported plans to increase the number of SKUs (54.2 percent), the volume of items carried (54.2 percent) and their annual inventory turnover (50.6 percent). In the next five years, almost 70 percent of respondents indicated plans to increase automated processes and 66 percent plan to equip staff with more technology. These ini t iat i ves are especiall y valuable for pick and fill functions where costs are high and errors can easily snowball into less accurate, less timely shipping and greater numbers of dissatisfied customers. STEP 4: Advance Inventory And Storage Capabilities The key to achieving flawless fulfilment is real-time inventory visibility and control. To meet operational and financial requirements, companies must regularly conduct comprehensive inventory counts. When cycle counts are conducted manually, or with older or fragmented technology solutions, they can be extremely time consuming and often fraught with errors. IoT INSIGHTS | 27

The key to achieving f lawless fulfilment is real-time inventory visibility and control. To meet operational and financial requirements, companies must regularly conduct comprehensive inventory counts. When cycle counts are conducted manually, or with older or fragmented technology solutions, they can be extremely time consuming and often fraught with errors. STEP 5: Upgrade Inbound Handling Operations Receiving and sortation are critical steps in ensuring flawless fulfilment. They are critical because issues in receiving all too often morph into other issues throughout the warehouse management process. To streamline inbound operations, today ’s warehouses must be able to manage two growing trends. First , their systems must be p re p a re d to t a ke a d v a n t a g e of increases in the number of incoming items that have barcodes. According to Motorola, respondents to a study predicted that the percentage of barcoded items will grow from about 67 percent today to almost 84 percent in the next five years. Second, they 28 | IoT INSIGHTS

ne e d to resp ond seamles sl y to shifting supplier requirements, some of which the survey identified as the increased use of Advance Ship Notices (ASN), RFID systems, GSDN data and GS1 standards. STE P 6: Turnaround Outbound Handling Performance Packing, loading, staging and shipping are the equivalent of the ‘last mile’ in flawless fulfilment. In today’s hypercompet i t i ve market place, t hese functionalities are key to turning around warehouse and distribution centres to streamline delivery, enhance competitive advantage and increase customer satisfaction and loyalty. Whether you are shipping to a manufacturer that needs raw materials for jus t- in - t ime produc t ion or a retail customer waiting for delivery of her holiday gifts, the importance of timely, accurate deliveries cannot be overstated. WAREHOUSE MOBILITY: THE FOUNDATION OF FLAWLESS FULFILMENT The warehouse is at the very heart of your business operations. Poorly

managed warehouses can actually become cost prohibitive, significantly impacting the cost of doing business — and general profitability. Through mobility, real-time warehouse data can be leveraged to enable a new level of information collaboration throughout the enterprise, and most importantly, flawless fulfilment. The value of mobilit y in the warehouse function is clear. You are able to automate and streamline processes, enhance f lexibilit y to respond to customer demand, and better manage the risks of managing a lean warehouse. Processes across the warehouse are streamlined, reducing cycle times. Worker productivity is increased, reducing the cost of labour across the warehouse operation. Orders are fulfilled more accurately, improving customer service. The cost of sales attributed to movement through the warehouse is reduced. Bottom line, leveraging mobility in the warehouse and beyond can yield highly beneficial results, including reduced costs, improved quality, better customer service, higher margins and greater profitability that deliver real business advantage.

Digital Logistic & Fleet Management

DIGITAL LOGISTICS AND FLEET MANAGEMENT FOR HIGHER EFFICIENCY AND LOWER COST In the past, fleet management only provided vehicle location tracking and scheduling functions, but contemporary fleet management systems demand expedience, and this has been brought about by smart management systems that include: information systems, automation, networks, and the Internet of Things. This is the inevitable way forward for digital logistics and fleet management. ARTICLE BY YU-FENG CHEN, ADVANTECH.

OMMERCIAL VEHICLES are the economic backbone and livelihood of most countries, delivering the food, products and goods that make our lives possible. Therefore, logistics systems are key to keeping all the cogs turning and the whole system running smoothly. Cost reductions and rapid delivery through effective management is the goal we all want to achieve. The logistic s process involves transpor tation, warehousing, handling, packaging, distribution, processing, information intelligence, cash flow, etc. It covers a large and

complex array of topics. As such, the need to integrate a digital logistics management system into traditional logistics systems has grown. Because road vehicles are at the centre of logistics systems, the quality of the vehicle fleet management is critical to the success of the entire digital logistics management. â&#x20AC;&#x153;Digital logistics and fleet management must be able to properly apply the information collected from the various parties in order to achieve immediate and effective monitoring so that the supplier side can provide the most efficient services for the

demand side under the cost optimised conditions,â&#x20AC;? said Van Lin, Director of Digital Logistics & Fleet Management Sector, succinctly describing the essence of digi tal logis t ic s and fleet management. A s def ined by Ad vantech, the logistics process can be divided into the harbour, large warehouse, small warehouse, warehouse centre, and retail outlet segments. Ad v an te ch i s rea d y in ter m s of the product offering and is able to provide any product or solutions to satisfy various transportation vehicle application demands. IoT INSIGHTS | 29

Fighter Jet Grade Specification Enables High Stability for In-Vehicle Computers Within the multitude of logis tic s management solutions, a rugged in-vehicle system is an absolutely essential element in order to provide a highly stable system for all the vehicles responsible for handling cargo in the logistics warehousing. Van explained that in-vehicle computers must take into account battery life, shock and vibration resistance, wide temperatures, network transmission, 30 | IoT INSIGHTS

and water and dust proof issues. Advantech resolves them by prov iding professional sof t ware technologies and hardware designs that together provide excellent quality and automotive-grade PCs for fleet vehicles. To meet stringent specifications, it even introduced f ighter jet aviation grade specifications into it s produc t design to ser ve as a benchmark standard for the degree of ruggedness needed for each produc t because aviation - grade standards are stronger than industrial

and military standards. So, while a competitorsâ&#x20AC;&#x2122; product can withstand vibration and shock of 10G or less, Advantech products can tolerate up to 20G. In addition, Advantech has adopted water and dust proofing, wide temperature tolerance, and shock proof tempered glass touch screen panels as a basic specification for its products. Advantechâ&#x20AC;&#x2122;s basic product specifications can withstand a variety of environmental conditions. Itâ&#x20AC;&#x2122;s also worth mentioning that to help fork lifts successfully perform their tasks, Advantech has included

Within the multitude of logistics management solutions, a rugged in-vehicle system is an absolutely essential element in order to provide a highly stable system for all the vehicles responsible for handling cargo in the logistics warehousing.

lif ts to obtain designated pallets or cartons from three-dimensional shelves that are stacked several meters high. At present, this system is successfully incorporated in the warehouse centres of Heineken in Germany, BMW, and IKEA in Sweden.

roaming, indoor navigation and 3D positioning functions into systems. The roaming func tion uses an optimised switching operation to enable the system to maintain network connec tion and prevent net work disconnection. Indoor navigation is used in response to the introduction of high end positioning applications. The system is able to correctly guide the forklif t s inside the warehouse to pick up the cargo from the correct shelf using RFID and W i - Fi hot spot s. A not her 3 D positioning method enables fork

Save on Vehicle Fleet Fuel Consumption for Manpower, Logistics, and Cargo Management The key for most digital logistics management sys tems, and what vehicle fleet managers care about most, is high efficiency and prompt delivery, and ensuring that products are in per fec t condition when they are delivered. This depends on whether the vehicle f leet can effectively control the manpower, logistics, and cargo. “Unlike the methods of control in the past, management efficiency has relatively improved as increasingly more and more IT technologies have been incorporated into fleet management,” said Van. He broke d o w n t h e n e w te c h n o l o g i e s t o include in-vehicle computers, mobile devices, wireless communications, Internet, satellite positioning, electronic maps, traf fic condition sensing, and video surveillance. S o l u t i o n s by Ad v a n te c h h ave perfectly incorporated the various technologies to prov ide a more flexible, immediate, and convenient vehicle f leet dispatch, vehicle location tracking, the best driving route, cargo condition management, e m e rg e n c y a b n o r m a l co n d i t i o n handling, and driv ing behav iour management functions. As a result, managers can control the vehicles,

cargos, and manpower as well as improve driving misconduct using the system monitoring and recording in order to save fuel for the vehicle fleet and reduce vehicle damage. Similarly, in anticipation of possible harsh automotive environments, the dedicated hardware and software can ensure the smooth operation of the fleet management system. The system is also integrated with intelligent sof tware that can transform the various accumulated data into meaningful information. Van stated that the company has provided fighter-jet grade in-vehicle products for many different types of fleet applications. Va n f u r t h e r s t re s s e d t h a t i t has always been able to provide solutions for certain problems before the customers are even aware that they will encounter them. This “sales professionalism” attitude enables system integrators to provide comprehensive solutions for end customers and constructs the most efficient and comprehensive logistics systems available anywhere.

IoT INSIGHTS | 31

Digital Logistic & Fleet Management

ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN MANAGEMENT

Businesses today manage ever-complex supply chains, facing new challenges in both the planning and execution phases. ARTICLE BY BOGE KOMPRESSOREN ASIA PACIFIC.

ROADENING APPLICATIONS of IoT-based devices and sensors continue to of fer unprecedented solutions in operations, logistics and end-user experience. Yet, the growing accessibility to data has placed additional burden on traditional systems responsible for forecasting, replenishment and maintenance. More companies are developing and employing Artificial Intelligence (AI) across operations to benefit from greater visibility and acuity in decision-making, leveraging disruptive technologies such as robotics, autonomous vehicles, networked systems and machine learning. 32 | IoT INSIGHTS

“AI is revolutionising the way we execute day-to - day ac tivities, empowering businesses to focus on more urgent, higher-skilled tasks that call for critical improvements in efficacy and output in the supply chain, from warehouse automation to distribution,” said Nalin Amunugama, GM of BOGE Asia Pacific, a leading specialist in compressed air solutions. G i v e n A I ’s v a s t p o t e n t i a l t o deliver business value, investment in related capabilities is only set to increase. According to International Data Corporation, AI and machine learning expenditures will grow to US$57.6 billion in 2021, signifying AI’s

maturation from game-changing idea to instrumental business tool. SCALING UP While there has been much excitement over AI, early adopters have typically been digital leaders who are among the largest firms in their sectors. Most companies utilising AI have yet to adopt the technology at scale or incorporate it into their core functions, with its use confined to a number of applications and trials. Joint partnerships have thus become great platforms for businesses to gain access to the relevant resources and skills, helping them move beyond small-scale AI experiments to wide-reaching automation and operationalisation. S u p p l y C h a i n s a n d Lo g i s t i c s E xcellence. AI (SC ALE. AI) is one such initiative that aims to accelerate

robotics in these projects present oppor tunities for bet ter demand forecasting, inventory optimisation and transparency of material flows. The supercluster is expected to create over 16,000 new jobs across Canada and add more than US$16.5 billion to the country’s economy over the next decade.

the development and integration of next-generation AI-powered supply chains. The Canadian industry-led consortium, designated as a federal government initiative in February 2018, brings together 119 industrial firms, enabling organisations and world-class research institutions to collaborate on large-scale applied innovations that will help enhance the revenue and performance of companies of all sizes. Partners cut across industry segments to include companies such as Air Canada, BlackBerry, Bombardier, Intel and Lallemand. To d a t e , t h e c o n s o r t i u m h a s committed US$700 million to support projects that tackle supply chainrelated challenges. The deployment of cutting-edge technologies focused on data generation and use, algorithm training, IoT interoperabilit y and

INTELLIGENT NETWORKING Smaller-scale collaborative efforts have similarly borne fruit, such as the joint project developed by BOGE Kompressoren and Aventics, which leverages the intelligent networking of compressed air generators and users. Efficient management of compressed air supply is important, especially as the production of this essential utility can be expensive and energy-intensive. The Smart Pneumatic Grid looks to address this concern by using machineto-machine communications protocol OPC UA to facilitate monitoring and controlling, and ultimately optimise entire system topologies. Recognised by manufacturers across the board, OPC UA is currently the top standard for horizontal and vertical networking in the automation sector. By identifying the specific energy requirements of individual consumers, the Grid is able to actualise needsbased control rules for the BOGE compressors. Increases in air consumption caused by leaks are also quickly detected, allowing users to schedule maintenance checks well before a machine standstill occurs. The smart system, highly adaptable to fluctuating conditions, effectively unlocks potential for round-the-clock observation and monitoring of air consumption, allowing operators to correct out-of-tolerance lead times and enhance compressor performance at high levels of accuracy. “Seamless communication between equipment and systems will take precedence in manufacturing facilities of the future, serving as an enabler and multiplier of productivity. Through real-time insights and predic tive maintenance, businesses are able

to lower energy consumption and minimise supply chain disruptions,” remarked Mr Amunugama. GOING DRIVERLESS AI’s emerging capabilities are also making big strides on the roads – particularly in the form of autonomous vehicles (AVs). With the many tests and prototypes introduced in recent years, wide-scale implementation of driverless technologies seems imminent. In fact, AI-enabled AVs are predicted to hit the roads in 2025 and become an established part of the mobility landscape by 2030. AVs are expected to strengthen efficiency in terms of better traffic flow and lower fuel consumption. Closer to home, AVs are opening doors for improved logistics and tackling manpower constraints. Last October, Belgian logistics company, Katoen Natie, piloted Singapore’s first driverless truck at ExxonMobil’s manufacturing hub on Jurong Island. Equipped with in-built speed controls and a safety bumper that triggers an emergency stop when necessary, the truck operates 24 hours a day moving goods between packaging and intermediate storage facilities. If tests are successful, 11 more trucks will be added to make a fleet of 12 – collectively, the driverless vehicles will be able to transport three million tonnes of cargo annually. SWIFTER, SMARTER, LEANER The rapid rise of AI is poised to transform the face of business and how supply chains are understood and optimised. Real, practical applications are already in place and will continue to help companies become more agile, make informed decisions and detect risks early so that corrective action can be taken. Smarter predictions of demands and consumer trends will also result in more precise inventories and replenishment plans. By 2020, 50 percent of mature supply chains will use AI and advanced analytics for planning, thus eliminating sole reliance of shortterm demand forecasts. IoT INSIGHTS | 33

Digital Logistic & Fleet Management

ROBOTS IN LOGISTICS – THE NEXT STAGE OF GROWTH

The market opportunity for robots in logistics is here – so are the challenges for the vendors. ARTICLE BY I-SCOOP.

UTOMATING warehouses and picking with the use of robots isn’t that easy. It’s not easy as such and hasn’t been easy from the perspective of organisations that looked for a solution to do it. R e g a r d i n g t h e l a t t e r, w e m u s t mention Amazon. When the company looked at ways to further enhance the operational ef f icienc y of it s distribution centres, Amazon found a solution with Kiva Systems, a provider of mobile robotic fulfilment systems. The logistics robots and technologies of Kiva Systems were in high demand and several companies, predominantly retailers and e-fulfilment service providers (e-commerce is a key market driver), worked wit h t he company. Unt il sometime after the acquisition when Amazon announced that it would use Kiva Systems, now known as Amazon Robotics, for its own operations alone.

34 | IoT INSIGHTS

Support for existing customers, of which quite a few already stopped using Kiva Systems and others are about to, has been going on several years af ter the acquisition and is expected to stop in a few years. DATA AND EVOLUTIONS Never theless, the decision by Amazon left a void and delayed the further development of the logistics robots market. It did take some time for companies to fill that void. Yet, it’s clear that now, over five years later the landscape is about to change and grow rapidly. The market of cobots is poised to acceler ate ver y f as t and not ju s t in a warehou sing , lo gis t ic s and fulfilment and picking context. I n d u s t r y 4 .0, w h i c h h a s m o ve d beyond manufacturing (where robots and cobots obviously also play a role in, among others, packaging

and picking) into logistics and other industries, the IoT (more specifically the Industrial IoT), data analytics, AI and so on are never far away in this evolution. IDC has stated in its worldwide ro b o t i c s p re d i c t i o n s: “ B y 20 1 8 , 45% o f t h e 20 0 l e a d i n g g l o b a l ecommerce and omni- channel commerce companies will deploy ro b ot i c s s y s te m s i n t h ei r o rd e r fulfilment warehousing and delivery operations”. And there is more: as said, after Amazon’s decision it isn’t as if others have been sitting still. One of the major companies that has been very ac tive in the logistic robot s and cobot space is Locus Robotics, which specialises in e-commerce fulfilment solutions with, among others, its own autonomous cobots, LocusBots. DHL AND ROBOTS IN LOGISTICS – A N E X T S T E P W I T H LO C U S ROBOTICS In the Spring of 2017, DHL Supply Chain announced that its star ting

a pilot with the LocusBots cobots. The company is conducting the pilot within the life sciences sector at a facilit y in Tennessee. If the pilot, for which several different picking strategies will be tried and the ability of the robots will be assessed in regards with communication with t h e p i c ke r w i t h t h e w a re h o u s e management system, it’s expected that a further roll-out will take place. It’s again another sign that the analysts indeed are right and the cobots market is about to significantly accelerate. The void left by Amazon is being filled in by various players such as Locus Robotics and, among others due to lowering costs, clear benefits and evolutions in the used technologies and practices to ensure safe human and robot collaboration, the real ‘robot wars’ are about to start with more vendors get ting ready (2016 already saw some important market changes, also on the level of acquisitions).Other factors such as evolutions in e- commerce are obviously also contributing to this.

THE FUTURE OF ROBOTS IN LOGISTICS DHL is an impor tant customer for many reasons, not just the business as such. Several years ago, Deutsche Post DHL, launched a study which looked into potential future scenarios in logistics. The Logistics 2050 scenario study wasn’t jus t a way of looking at various specific scenarios in the logistics industry and how they would impact the logistics business but also a strategic exercise. As CEO Frank Appel put it back then: “Only those who think about alternatives can devise robust strategies.” Such scenario studies, involving several experts and stakeholders and following a clear methodology can be great ways to look at the future potential business scenarios under the motto “we can’t predict the future but we can prepare for it when mapping out potential evolutions”. W ill A mazon Robot ic s change i t s p o l i c i e s a n d g o fo r a p i e c e

of t he pie? Commerciall y v iable automated picking in unstructured environments remains a challenge the company says. Rumours, however, are that Amazon will stop support for Kiva Systems completely by 2019 -2020. The company also has a lot of other experiments going on , such as drone deli ver y and disrupting the face of logistics in Logistics 4.0. In the meantime, Locus Robotics and many others such as 6 River Systems, Fetch Robotics, Magazino and KU K A , to name a few, have clear market opportunities. Expect them to be joined by established players in the robotics and cobots market such as ABB. As usual, along with the market opportunities come challenges to tap into this growing robot market in logistics and beyond, whether it concerns the t ypes of cobots mentioned in this article or any of the other types of cobots and robots in logistics where robotics have an almost natural place given the challenges of the industry. IoT INSIGHTS | 35

End-To-End Monitoring

DELIVERING THE GOODS WITH BETTER LOGISTICS

The delivery phase of the D2O product lifecycle (aka logistics) can be boiled down to the following question: Where is my stuff and how is it doing? This question may seem simple, but in the context of today’s complex global supply chains, it is anything but. ARTICLE BY MARKUS ROSEMANN, GLOBAL VICE PRESIDENT FOR DIGITAL LOGISTICS AND ORDER FULFILLMENT, SAP SE.

EPENDING on who you are and where you stand, your stuff could be anywhere in the world and in any condition. Maybe it’s in the middle of the ocean on a container ship. Maybe it’s in the cart of an automated guided vehicle (AGV) making its way through a warehouse. Maybe it’s on a truck en route to one of your customers. Whatever the case, we want to know where our stuff is at all times. Why? Much of it has to do with consumer expectations set by Amazon and other online retailers. Today, manufacturers in a B2B context expect the same – meaning real-time updates for every milestone our stuff hits on its route to its ultimate destination. We want to know when it is shipped, when it reaches a distribution centre, when it gets on a new vehicle, and when it will be delivered. We a l s o w a n t to k n o w a b o u t the second par t of the logis tic s question: How is my stuf f doing? Was it loaded correctly? Is it being handled according to specifications? How are the materials holding up? Is the refrigerated vehicle where it’s traveling set to the right temperature? Answering these questions requires real-time monitoring and end-to-end process awareness. Add to this picture a complex array of logistics partners needed to meet your transport needs. In addition to

36 | IoT INSIGHTS

internal fleets, most organizations use carriers, freight forwarders, and logistics service providers (LSPs). All of these need to be coordinated in a seamless fashion. Logistics can add up to 15 percent of the cost of the sale of a product. To keep this cost down, the name of the game is speed and efficiency. And let’s not forget that delivery is a vital piece of the puzzle when it comes to ensuring a positive customer experience. Few things can spoil a strong customer relationship like failure to deliver. INTEGRATED LOGISTICS Logistics processes that are integrated into each phase of the D2O product lifecycle can help address many of the challenges discussed here. Let’s take a look: Design: During product development, details regarding how t he f inal produc t will be d e l i ve re d c a n i m p a c t d e si g n decisions. For a simple toy packed in a box, the delivery considerations may be straightforward. But what if the product includes perishable or fragile items? Or what if the weight of the product is a factor? If so, perhaps design will switch from metal to plastic molds – or it might tr y 3D printing, which locates produc t ion closer to t he end customer while also minimizing waste. Whatever the case, design

a n d l o g i s t i c s te a m s n e e d to coordinate and share information to m a ke t h e r i g h t d e c i s i o n s . P la n n i n g: T h e p la n n i n g te a m intersects with logistics to make transportation plans that ensure t he smo ot h f low of mater ial s throughout the product lifecycle. In addition to transport sourcing, planning helps make decisions regarding logis t ic s resources such as warehouse space, labour, or carrier capacity. Orders that feed the manufacturing process need to be consolidated, and materials required for manufacturing need to be staged in sequence. Planning can also play a role even after the sale has been made – as in the case of reverse logistics. In all cases, materials need to be t racked and traced and logistics processes orchestrated to avoid bottlenecks. M a n u f a c t u r i n g: Ty p i c a l l y, fo r indus t ries like mill or mining,

produc tion output is loaded directly on to rail cars or trucks. To avoid delays and bottlenecks regarding the smooth f low of mater ials , manu fac tur ing and logistics need to be tightly integrated. This is particularly true when you’re committed to sameday shipping – in which case, logistics needs to get the product out of the door and en route to the customer within hours. Operations: Finally, during the o p e r a t i o n p ha s e, l o g i s t i c s i s needed to keep ser vice par t s flowing so that assets (either onsite or at the customer’s site) keep running. Speed and ef f iciency are important – as is the goal of keeping inventory levels as low as possible without leading to out-of-stock situations. At the same t ime, organizat ions are using predictive models to determine when parts need to be replaced

– which means logistics needs to be integrated into these models in order to meet service levels. Getting There With Intelligent Technologies Integrating logistics into the D2O process is a good goal, but how can it be accomplished? Intelligent technologies can play a key role. Here are just a few examples: IoT: When it comes to track and t race, IoT sensor s play a key role in helping your logistics team understand where your stuff is and how it’s doing. Sensors can measure and communicate location, temperature, moisture, altitude, pressure, weather conditions – whatever you need to know. Blockchain: Data from logistics material and product movements can be capturein blockcha in ledgers to provide irrefutable proof of the chain of custody for any

goods or materials in t ransi t . If compliance and transparency are a concern – as with pharmaceuticals or other controlled substances – then blockchain may be the answer. Networks: Aligning distribution and fulfilment processes with partners such as shippers, consignees, freight forwarders, LSPs, or carriers is important in highly collaborative logistics environments. To manage this alignment, companies need a network of business partners, creating visibility and frictionless collaboration. Machine learning: Charting new delivery routes, optimizing AGV traffic in the warehouse, improving carrier selection, and enabling onboard system interfaces with natur al language proces sing . These are just some of the areas in which machine learning can help improve efficiency and effectiveness for logistics processes. IoT INSIGHTS | 37

End-To-End Monitoring

CREATING AN EFFECTIVE END TO END SUPPLY CHAIN PRESENCE The ability to optimally integrate all areas of the supply chain is key to meeting customer and shareholder needs. ARTICLE BY ADAM ROBINSON, CERASIS.

STRATEGY that encompasses all allows decision-makers the visibility to see concerns early on and respond promptly. This builds a leaner, faster process while also increasing profit. Do you find the idea a bit unwieldy and difficult to implement? Finding an experienced partner to manage and engineer end to end supply chain solutions allows you to achieve this global undertaking and an efficient supply chain. FIVE AREAS FOR REORGANISATION An end to end supply chain strategy allows companies to see and tailor their 38 | IoT INSIGHTS

mechanisms within the supply chain. Deliver the products that end users want and keep shareholders happy. Some areas that can benefit from better strategy are: STOCK – Oftentimes there is confusion as to how much stock is in the pipeline, delivery that is on the way and assets that can be reused from returns. Companies need to deliver to consumers on time and order more than what they need to cover anticipated requests. Track what is available at all stages- delivery, pipeline and returnsto efficiently meet needs.

EXCESS & OBSOLESCENCE (E&O) – This extra product is not requested and quickly becomes obsolete. Particularly in IT and advanced technologies, the longer product sits in the pipeline, the more it depreciates in value, offering less return for companies. Reducing the amount of unnecessary product will shrink overheads and allow companies to use the cash in other areas. RETURNS AND ASSET MANAGEMENT – How are returns processed and managed in a global supply chain? What par ts can be

of asset s will decrease shipping costs as freights are smaller and less frequent. This makes consumers and companies happy. ASSEMBLING – Shipping and deliveries of components are involved in the location of where products are assembled. End to end supply c h a i n p r a c t i ce s t h a t d e l i ve r a l l necessary data can allow for more convenient locations that will cut costs. Reduce freight and transport time with proactive management. BEST PRACTICES FOR END TO END SUPPLY CHAIN PRESENCE In a supply chain, it is important to select one decision-maker that will be held accountable for revenue and profit. Invest in internal processes to guide platform management and stock-keeping unit rationalization and simplification. Develop strong supplier relationships that encourage communication and partnership. Concerns can be worked out easier and adjustments can quickly be made. Have a presence on the ground with talented collaborative members that can give feedback on adjusting to local practices, concerns, and culture. Have clear visibilit y from end to end of the supply chain. An eagle’s eye is important to address delays and mitigate impact on deadlines and targets.

reused or recycled to better manage resources? This end process gets short shrift and can be reorganised to return assets and cash into the company. This is an area to recoup loss if so inclined.

BETTER VISIBILITY MAKES FOR CONTINUOUS IMPROVEMENT The fact is that when a company is not always putting out fires, they can use their energy and the data

from a transparent end to end supply chain process to make changes that will enhance efficiency. Advanced k n o w l e d g e o f c o n ce r n s a l l o w s companies to have the time to respond appropriately and put processes in place to prevent similar issues. Add additional suppliers based on local conditions, price, and availability. Build stronger communications on the ground and create plans to adjust in a timely manner. These are a few of the adjustments that can be made with tighter organization practices. Changes can make the company more agile in an ever-changing market. Swiftly adjust to changing trends and work in partnerships with teams and suppliers to guarantee better-operating procedures and a loyal customer base. With supply chains there is even more need for sustainable growth and an ability to quickly respond to multiple points along the chain. Don’t get bogged down in the problems of now but use end to end supply chain visibility to plan for future development. LEVERAGE THE EXPERTISE OF OTHERS Building visibility into an end to end global supply chain presence is well-worth the investment. Lead that change in a partnership with a third party logistics company. Their teams, resources, and experience will operate as an extension to the company’s existing infrastructure. Work together to develop the agility to shift gears and easily monitor, address concerns, enhance communications, and use better practices to develop with future success in mind.

SHIPPING – Visibility in the end to end supply chain allows companies to know exactly what products they are delivering and what may be missing. Better practices can organise freight for complete shipments the first time. Extra product also needs to be shipped. Reducing the need for product based on knowledge IoT INSIGHTS | 39

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