MARCH 2017
The European magazine promoting the effective use of IT in supply chain applications
Special Technology Report: ENTERPRISE RESOURCE PLANNING (ERP) Interview: RENAULT SPORT RACING
Also in this issue: p
BEC – Making the right connection ws
st
&
g
Do
rin
tu uf ac
manufacturers towards Industry 4.0
M an
Epicor – The megatrends that push
Lo
retail dilemma
gi
wn
lo
Vanderlande – Robotics poised to answer food
ics
Ne
ad
ap
Infor – Optimising the manufacturing supply chain
For the latest news and to subscribe to the Manufacturing and Logistics IT weekly newsletter visit
www.logisticsit.com
LogisticsIT.com LogisticsHandling.com
IT
MANUFACTURING
*><8:C#%"
&LOGISTICS
Two decades and counting +:BC;A>44C@4C*>?64>8A6<=?5C C @5=;A=8;C&+C><BC86<<B?A92C8B9B-<>A=?5C>C3> @<C3=9B;A@?BC=?CA:B :=;A@<2C@4CA:=;C @6<?>9,C&AC0>;C#%C2B><;C>5@CA:=;C2B><CA:>ACA:BC4=<;ACB7=A=@?C9>?7B7C@?CA:B 7B;);C@4C3>?64>8A6<=?5/C9@5=;A=8;C>?7C<BA>=9C&+C1<@4B;;=@?>9;C><@6?7CA:BC8@6?A<2/C;BAA=?5 @6ACA@C=?4@<3CA:B3C@4C>99CA:>AC0>;C86AA=?5 B75BC=?CAB8:?@9@52C;1:B<B;C;68:C>;C $(/ 0><B:@6;BC3>?>5B3B?A/C7>A>C8>1A6<BC>?7C1<=?A=?5C C9>-B99=?5,C+0@C7B8>7B;C9>AB</CA:B;B AB8:?@9@5=B;C><BC;A=99C>9=.BC>?7C0B99/C>9A:@65:C:65B92CA<>?;4@<3B7C>?7CB?:>?8B7,C @< B >319B/CA:BC1<@@4C@4C $(!;C8@?A=?6=?5C7B.B9@13B?AC1>A:C8>?C-BC;6<.B2B7C=?C@6<C 1B8=>9 +B8:?@9@52C$B1@<AC=?CA:=;CB7=A=@?,C ;C1><AC@4C@6<C8B9B-<>A=@?;/C0BCA:@65:AC=AC0@697C-BC1B<A=?B?AC C>?7/C>73=AAB792/C<>A:B<C46? CA@C9@@)C->8)C>AC;@3BC@4CA:BC:B>79=?BC?B0;C4<@3CA:BC2B><C@4CA:BC @6<?>9!;C-=<A:,C @@)=?5 A:<@65:CA:BC9=;A/C=AC:>;CA@C-BC;>=7CA:>ACA:B<BC><BC;@3BC1<BAA2C3> @<CB.B?A;CA@C<B3=?=;8B @.B< '
8@?A<@99B7C @?5C @?5C@?8BC>5>=?C<BA6<?B7CA@C :=?B;BC<69B,
'
=>?>CA:BC(<=?8B;;C@4C >9B;C7=B7CA<>5=8>992C=?C>C8><C8<>;:C=?C(><=;,
'
AC>C59@->9C0><3=?5C8@?4B<B?8BC=?C >1>?/C" %C8@6?A<=B;C;=5?B7C61CA@CA:BC 2@A@ (<@A@8@9,
'
*=8<@;@4AC-B8>3BCA:BC3@;AC.>96>-9BC8@31>?2C=?CA:BC0@<97,
'
+@?2C 9>=<C-B8>3BC(<=3BC*=?=;AB<C@4CA:BC ,
'
#" 2B>< @97C+=5B<C @@7;C-B8>3BCA:BC2@6?5B;ACB.B<C5@94B<CA@C0=?CA:BC*>;AB<;,C
'
6 B3-6<5C0>;C>??@6?8B7C>;CA:BC<=8:B;AC8@6?A<2C=?CA:BC0@<97,CC
'
AB.BC @-;C<BA6<?B7CA@C:B>7C 119BC @316AB<;/CA:BC8@31>?2C:BC4@6?7B7C=?C" 0=A:C AB.BC @ ?=>)/C>?7C$@?>97C >2?B,C
'
,C ,C$@09=?5C;>0CA:BC16-9=8>A=@?C@4CA:BC4=<;AC@4C:B<C ><<2C(@AAB<C-@@);C C ><<2
'
AC 9>8)C$@8)C B;B<A/C B.>7>/C+:<6;A
(@AAB<C>?7CA:BC(:=9@;@1:B< ;C A@?B!, C;BACA:BC4=<;AC;61B<;@?=8C9>?7C;1BB7
<B8@<7/C0=A:C>?C>.B<>5BC;1BB7C ,% C31:,C '
*><;C(>A:4=?7B<C9>?7B7C@?C*><;,
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
8@336?=A=B;,C
7=A@< BC>9;@C<B569><92C16-9=;:CB 896;=.BC=?AB<.=B0;C0=A:C3>?2C@4CA:BC-=55B;AC8@31>?=B;C0=A:=? A:B=<C<B;1B8A=.BC3><)BAC;B53B?A;C=?C@<7B<CA@C;6<.B2CA:BCA21B;C@4C&+C;@96A=@?;CA:B2C<B92C@? 4@<CA:B=<C@?5@=?5C;688B;;,C @<CA:=;C=;;6B/C4@<CB >319B/C0BC=?AB<.=B0B7C(=B<<BC7 &3-9B.>9/ 8:=B4C=?4@<3>A=@?C@44=8B<C>AC$B?>69AC 1@<AC$>8=?5/C0=A:C>C4@86;C@?C:@0CA:BC@<5>?=;>A=@?!; &+CB;A>ABC19>2;C>C8<=A=8>9C<@9BC0=A:=?C=A;C7B;=5?/C1<@A@A21=?5/C3>?64>8A6<=?5/C9@5=;A=8;C>?7 7>A>C>?>92;=;C<B5=3B, BC:@1BC>?7CA<6;ACA:>AC2@6C8@?A=?6BCA@CB? @2C<B>7=?5C*>?64>8A6<=?5C C @5=;A=8;C&+/C>?7 ><BC@4AB?C>-9BCA@C7B<=.BCA>?5=-9BC-6;=?B;;C>?7C@1B<>A=@?>9C.>96BC4<@3C=A;C8@?AB?A,C+:>?); 4@<C8@?A=?6=?5CA@C<B>7CA:BC16-9=8>A=@?/C>?7C:B<B!;CA@CA:BC?B AC#%C2B><;
IT
MANUFACTURING
*><8:C#%"
&LOGISTICS
3
IT *><8:C#%"
MANUFACTURING
&LOGISTICS
CONTENTS Manufacturing and Logistics IT March 2017
Interview 5
Renault Sport Racing
Editor: Ed Holden
Special Technology Report Contributors:
8
Enterprise Resource Planning (ERP)
Andy Brown, Access Group Stuart Hall, Epicor Software UK and Ireland Michiel Schipperus, Sana Commerce David Titterington, Prodware
Manufacturing 18
Plasan grows using QAD Cloud ERP Reply launches Brick Reply â&#x20AC;&#x201C; the new manufacturing operations platform for Industry 4.0
Publisher: Dean Taylor
Epicor: The megatrends that push manufacturers towards Industry 4.0 Manufacturing driving production increase in the UK, but IoT investment must not leave
Designer: First Sight Graphics Ltd, www.firstsightgraphics.com
Britain behind Infor: Optimising the manufacturing supply chain Gartner: Worldwide BI and analytics market to reach $18.3 billion in 2017
Production: Carolyn Pither
BEC â&#x20AC;&#x201C; Making the right connection Prodware: From dock to warehouse to customer with Microsoftâ&#x20AC;&#x2122;s Azure IoT Suite
Circulation: Carole Chiesa
Access Group: Thinking about ERP? A guide for mid-sized organisations Sana Commerce: Improve sales efficiency by leveraging the data in your ERP
IT Manager: Ian Curtis Accounts: Sarah Schofield
Transportation Management
38
Published by: B2B Publishing Ltd PO Box 3575, Barnet, Herts, EN5 9QD UK
Connecting worlds â&#x20AC;&#x201C; logistics company Militzer & MĂźnch counts on TimoCom TimoCom's transport platform helps to reduce CO2 emissions Henry Schein Animal Health targets efficient and safe driving with Ctrack vehicle tracking system
Tel: +44 (0) 1707 664200 Email (publishing): info@logisticsit.com Email (editorial): editor@ibcpub.com Printed by: The Magazine Printing Company plc, www.magprint.co.uk
ESSential BI software improves efficiency and profitability for logistics businesses
Warehouse Management
42
Vanderlande: Robotics poised to answer food retail dilemma Peli BioThermal CrÄ&#x201C;do Cargo now available worldwide
No part of this publication may be reproduced in any form without written permission from the publishers. No liability is accepted for any action arising from the contents of this publication; readers are advised to check any manufacturerâ&#x20AC;&#x2122;s or supplierâ&#x20AC;&#x2122;s claim for products. The publishers do not endorse opinions expressed in any article by an outside contributor. While every care is taken over photographs and illustrations, which are returned when requested, no liability can be assumed by the publishers for the loss of such materials.
VDC Research: Dimensioning solutions in the spotlight as warehouses strive to modernize
Supply Chain Management 46
Maersk and IBM unveil industry-wide cross-border supply chain solution on blockchain
Automatic Identification & Data Capture ISSN:1463-1172
4
IT
48
MANUFACTURING
&LOGISTICS
*><8:C#%"
IoT heading for mass adoption by 2019 driven by better-than-expected business results
Renault Sport Racing
Interview
Accelerating IT development Manufacturing & Logistics IT spoke with Pierre d'Imbleval, chief information officer, Renault Sport Racing, about how the organisation’s IT estate plays a critical role in its success – covering everything from design and prototyping through to manufacturing, logistics and data analysis.
R
enault and motorsport can boast a pedigree that stretches well over a century of technological innovation and on-track success. Over that time, Renault has developed many an iconic racing car, drivers have become household names and many prestigious victories have been enjoyed on the track aided by Renault’s technological triumphs. The Renault Sport Formula One Team’s F1 programme forms the core of Renault Sport Racing, the entity encompassing all the company’s motorsport activities, from Formula E to Formula Renault 2.0 and including customer racing programmes.
team is to maintain the speed of development – from design and aerodynamics to the actual manufacture of the part to fit on the car in time for the next race,” he said.
Focus on creativity From an IT perspective, d'Imbleval explained that this requires a very high level of reliability and performance – both in terms of the IT hardware and software that Renault Sport Racing uses on a regular basis, and also in terms of the reliability of the company’s user community to ensure Renault Sport Racing can maximise its working time focusing on creativity, simulation and then 3D prototyping.
Maintaining speed of development So, from a design perspective, what does chief information officer, Pierre d'Imbleval, consider to be some of the main critical daily challenges for Renault Sport Racing? “One of the main daily challenges for a Formula One
www.logisticsit.com
Design process In terms of the IT estate that is so critical to Renault Sport Racing’s success, d'Imbleval pointed out that the design process really
starts with the aerodynamics study. “For this we use the CATiA 3D product design solution from Dassault Systèmes to design the parts,” he explained. “We then use CFD (computational fluid dynamics) to run simulations before the parts are 3D prototyped and put into the wind tunnel. So, IT makes a big contribution to this very critical part of our design process.” Once the shape of the car part has been designed, d'Imbleval explained that these parts are then 3D prototyped, before they are fitted to a smaller scale model of the car. “We use 3D printers – provided by one of our solution partners, 3D Systems – to print the parts, said d'Imbleval. “The model is then put into the wind tunnel so we can start to run the simulations. Then, through correlation we continuously improve the shape of the car – in accordance with FIA regulations, of course.” When the external shape of the car is finalised, the process moves to Renault Sport
IT
MANUFACTURING
March 2017
&LOGISTICS
5
Interview
Renault Sport Racing
Racing’s design office, which sets about transforming the shape into real parts. d'Imbleval explained that the parts are manufactured in the composite workshop or using the metal machine tools the company has at its site in Enstone, Oxfordshire. “This is where the industrial process begins in terms of making real parts from the initial design,” he said.
ERP Once the parts designed with CATiA and are ready to be manufactured, Renault Sport Racing then switches to the ERP world. “The ERP system we use is Microsoft Dynamics 365,” said d'Imbleval, adding that, from a functional standpoint, this covers everything from the beginning of the manufacturing process to parts distribution,
6
IT
MANUFACTURING
&LOGISTICS
March 2017
logistics and raw material management. It also includes the financial package that Renault Sport Racing uses on a regular basis.
Cloud Two years ago, Renault Sport Racing decided to move the infrastructure part of the ERP system into the Cloud environment. d'Imbleval elaborated: “The strategy we have is to let our solutions partner Microsoft Azure take care of this in order to ensure that everything regarding the performance of the solution –
d'Imbleval explained that Renault Sport Racing’s ‘upstream’ world is everything regarding engineering – the design office work, aerodynamics, stress analysis and
“
One of the main daily challenges for a Formula One team is to maintain the speed of development – from design and aerodynamics to the actual manufacture of the part to fit on the car in time for the next race.”
simulation. The company’s ‘on-stream’ world is everything related to what could be described as classical ERP features – manufacturing, planning, procurement, purchasing, finance etc.
for example, increased storage requirements or the need to increase the performance of the servers – is acted upon. Also, from a disaster recovery standpoint, we recognise that a supplier like Microsoft is able to invest
www.logisticsit.com
Renault Sport Racing
Interview
all that is necessary to take care of the ERP infrastructure; allowing our own IT staff to focus on bringing more business value through the ERP solution to the user population instead of spending too much time on technical issues.” d'Imbleval pointed out that the upstream/engineering part of the business will probably remain on-premise for a while, mainly due to regulatory requirements. “We are not permitted to massively compute into the Cloud,” he explained. “However, the downstream part – the ERP and all the typical office-related functionality, including email – has been operating in the Cloud for the past couple of years. We use Office 365 very effectively, and through that move we would like also to maximise the benefit of the collaborative environment within Office 365 – SharePoint, One Drive and the extended capacity of Cloud services – for our users.” The IT group in the UK is also developing custom software; for example, to monitor the performance of the car on track. “The solution is very .net-oriented,” explained d'Imbleval. “There is also a regulatory obligation to use telemetry software from supplier McLaren Technology Group for the Formula One teams. This is an area that all the Formula One teams need to comply with, and develop their own software to maximise the performance of the car from that data.”
Big Data The next big IT challenge for Renault Sport Racing, and the F1 industry in general, is Big Data, according to d'Imbleval. “We generate massive amounts of data each time the car runs on the track,” he said. “For this reason, the next major project for us is to gain greater benefit from all this data, and to use things such as machine learning to identify patterns and behaviours that are much easier to detect through Big Data than by simply relying on a human being. So, we want to use those technologies to explore new areas of performance for our team. Through the use of Big Data, we also want to work closer with the
www.logisticsit.com
experts and engineers who have a deep understanding of the Formula One racing business. However, for this to be realised, we need the right IT infrastructure and IT architecture that will make accessing the diversity of data sources much easier.”
set up the design of the car and we need to improve the car over the season then all that process takes place in-house.”
Future plans
d'Imbleval pointed out that Renault Sport What of future plans for Renault Sport Racing? Racing’s Big Data project is ongoing. “We “Formula One is a world that generates an recently introduced a few new initiatives within impressive level of creativity and willingness the organisation, and what we aim to do now is to explore new ways of improving car federate those initiatives within a real-team and performance,” reflected d'Imbleval. “But at the a real-project environment to ensure we are not same time, from a process standpoint, we consuming resources in an isolated manner. want to mitigate the risk of too much We want to bring these capacities together to innovation. So, from a process standpoint we address the first-priority challenges we have would like to carefully explore new things, from a data standpoint – for while from a technological example, in terms of race It’s a careful mix of both standpoint we are keen to strategy or tyre model explore innovative areas. risk mitigation regarding simulation. This is the kind of It’s a careful mix of both domain where we would like to processes and advanced risk mitigation regarding explore Big Data and machine technology to bring improved processes and advanced learning technology.” technology to bring performance to the car.” improved performance to Most of Renault Sport Racing’s the car.” design, manufacturing and testing activities take place at its site in Enstone. “This is really So for the future, concluded d'Imbleval, the IT to maximise the speed and reduce the time staff would like to help the business side to between when we complete the design mitigate that risk while exploring business process to when we test the car for real or process automation that will bring speed in through simulation,” said d'Imbleval. “This is the way we design and manufacture the car, why most of our resources are in-house. We while respecting the fact that you cannot be have suppliers we partner with, but once we late when the race starts.”
“
IT
MANUFACTURING
March 2017
&LOGISTICS
7
Special Technology Report
ERP
Broadening horizons Manufacturing & Logistics IT spoke with a number of experts from the vendor and analyst communities about recent trends and ongoing areas of development within the world of ERP – including those concerning integration, Cloud/SaaS and Big Data. he Enterprise Resource Planning
T
incredible rate of change in essentially all
(ERP) landscape has changed
global industries, ERP must be flexible. It must
substantially in recent times, and
interoperate, extend and integrate with little
Opening up ERP
this momentum shows no signs of
effort – for the needs ERP addresses today are
Michiel Schipperus, CEO, Sana Commerce,
slowing down. To get the
out of date tomorrow. Thinking of ERP more as
explained that Sana Commerce looks at the
discussion started in terms of some of the key
a platform that includes core processes and
ERP space from an e-commerce vendor’s
areas of development and debate within this
data but can be extended securely to address
perspective, and what the company sees is
all-important technology space, Evan Quinn,
customer last mile needs is where ERP is
user organisations and vendors seeking to
principal director – marketing, QAD, made the
headed.”
open up the ERP much more widely across the organisation. “This is really driving increased
point that innovations such as Cloud, Big Data/advanced analytics, Internet of Things
Quinn believes that depth will beat breadth
value from what is already a very valuable but
(IoT) and modernised, mobile user experiences
long-term in ERP. “Some of the larger ERP
underutilised tool,” he said, adding: “ERP is
have been hot subjects over the past few years
providers are throwing all kinds of
really on the cusp of giving more decision-
in ERP. However, he added that perhaps we
technologies, an array of technology widgets
making power to people across the business,
have put the cart before the horse. “At least in
and kitchen sinks, into their portfolio,” he
rather than just being something used by a
the manufacturing sector, there are plenty of
remarked. “They have forgotten about the most
handful of people in the back office or supply
companies stuck in the death spiral of ERP –
important fundamental of ERP, which is having
chain. After a long time in the shadows its true
that is, stuck in an old version because of
ERP that matches and flexes to your business.
potential is finally being unlocked.”
unwanted but apparently necessary custom
Too many ERP solutions lack the feature depth
code, poor data quality or misunderstood data,
for a given vertical industry, and those ERP
and inflexible processes,” he said. “Getting rid
purveyors seem bent on developing beautiful
of the old and moving to the new ERP takes
demo ware and not addressing customers’
The role of Cloud ERP ecosystems
discipline, training and a willingness to think
needs. Pushing into industry-specific and even
Schipperus believes much of this ERP
differently about the notion of ERP.”
sub-segment specific capabilities is what ERP
transformation is down to the creation of
needs. Those vendors paying real attention,
broader Cloud-based ecosystems with ERP at
Quinn added that, historically, ERP has been a
not just lip service, to vertical depth will survive
their core. “It’s become much easier for
monolith. He elaborated: “Today, given the
and thrive long-term.”
valuable add-ons, including e-commerce, to be
8
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
ERP
Special Technology Report
developed in-sync and integrated with ERP
want a more personalised and tailored â&#x20AC;&#x2DC;journeyâ&#x20AC;&#x2122;
switch tasks. â&#x20AC;&#x153;There
systems â&#x20AC;&#x201C; â&#x20AC;&#x2DC;feedingâ&#x20AC;&#x2122; off its rich data for the
and so on.â&#x20AC;?
has more an increase
businessâ&#x20AC;&#x2122; gain,â&#x20AC;? he said. Schipperus also
in the demand for
made the point that mobile development and
fully integrated applications, so that
which is furthering the opportunity to put this
ERP in the customersâ&#x20AC;&#x2122; hands
valuable data in the form of business
Schipperus believes that, ultimately â&#x20AC;&#x201C; and
time switching
intelligence and insight in the hands of wider
although they donâ&#x20AC;&#x2122;t know it â&#x20AC;&#x201C; customers should
between tasks and
ranging people when they need it to make
be leveraging the data within the system
applications,â&#x20AC;? he
important decisions.
instead of duplicating it and trying keep two
said. â&#x20AC;&#x153;For example,
sources of truth, which is not sustainable. â&#x20AC;&#x153;With
within Microsoft
the necessary apps and user-friendly
Dynamics 365, Power
Merging worlds
interfaces, certainly in a B2B setting the ERP
BI which was is an
Schipperus added that, from Sana
can become a customer facing tool. Give
integrated but standalone application has now
Commerceâ&#x20AC;&#x2122;s perspective, the worlds of e-
customers more choice, in line with what they
been embedded into each application,
commerce and ERP are also merging together.
need, and build loyalty. Give customers more
ensuring users have all the tools to complete
â&#x20AC;&#x153;Some ERP systems are expanding into these
information, make them more in control of the
their daily tasks in a timely manner.â&#x20AC;?
areas, realising that they can become more to
buying process and you can remove pressure
organisations as a combined offering,â&#x20AC;? he
internally in the organisation.â&#x20AC;?
use of apps based on ERP data is expanding,
users donâ&#x20AC;&#x2122;t waste
*'+ (''$+ &('"( *! (&)"% &+ + *& )%(' $+
According to Titterington, there has also been an increase in the demand for mobile
explained. â&#x20AC;&#x153;As e-commerce becomes much
applications in the business context, with the
more important to businesses too, it makes
ability to work from where-ever you are. â&#x20AC;&#x153;Work
years, ERP has been the vital backbone and
Movers, shakers and partners
over time many third-party applications â&#x20AC;&#x201C;
Schipperus explained that Sana Commerce
without the once clearly defined boundaries,â&#x20AC;?
including ours â&#x20AC;&#x201C; have integrated with it. Now
partners with Microsoft and SAP, and is seeing
he said. â&#x20AC;&#x153;This means employees expect more
that weâ&#x20AC;&#x2122;re seeing the market move to Cloud
both these vendors really invest in the Cloud
from technology at work and true mobility
and development ecosystems being created
and develop partner-based philosophies
within ERP applications is key to this.â&#x20AC;?
vendors like us on the periphery of ERP can do
around development of tools that hook into the
even more to develop really intuitive tools and
ERP. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re really empowering partners like
Brendan Read, senior industry analyst â&#x20AC;&#x201C; digital
help customers extract more and more value
us to get the maximum out of their ERP
transformation, Frost & Sullivan, commented
from their ERP.â&#x20AC;?
solutions, through their ecosystems hosted on
that companies now expect simplified
Cloud platforms like Azure, where youâ&#x20AC;&#x2122;re
architectures from their ERP systems that can
collaborating and sharing tools to build
be readily upgraded and/or changed to evolve
Digital transformation
systems really closely knitted with these ERP
without consultant and vendor assistance.
Schipperus considers that more digital
platforms,â&#x20AC;? said Schipperus. â&#x20AC;&#x153;Take Cortana
â&#x20AC;&#x153;They are looking for ERP products that reduce
business being done also means more use of
with Microsoft for example. Itâ&#x20AC;&#x2122;s a great function
complexity and manual tasks to permit smarter
digital technologies; whether that is new
to have within an e-commerce system and
working, and also to help managers make
employee processes, supply chain
being part of the Azure platform weâ&#x20AC;&#x2122;re able to
faster and more effective decisions,â&#x20AC;? he said.
collaboration or sales channels to customers.
look at building tools like this into our own
â&#x20AC;&#x153;All of these new digital processes and digital
systems.
more sense for vendors to offer both. â&#x20AC;&#x153;For
absolutely interwoven
â&#x20AC;&#x153;Think how fast technology is changing.
Internet of Things â&#x20AC;&#x201C; a game changer
with ERP data,â&#x20AC;? he
Empowering their agile ERP partners is a really
According to Read, companies are looking for
said. â&#x20AC;&#x153;Access to the
smart way for these vendors to stay ahead of
ERP tools that will allow them to efficiently tap
ERP is about driving
the game. They remain focused on the
the Internet of Things. â&#x20AC;&#x153;IoT is a game changer
all stakeholders to
powerful ERP core and their customers take
for ERP as well as for CRM systems in that it
have maximum
advantage of a growing network of tools to
supplies real-time usage data from connected
control. Employees
shape how they drive ERP value.â&#x20AC;?
devices,â&#x20AC;? he said. â&#x20AC;&#x153;IoT systems manage
transformations are
need to be more (" ()!+ " ( )& #$ $+
and home life are now integrating further
product replenishment, including with data as
productive through
David Titterington, account manager,
granular as when specific product types were
access to information
Prodware, commented that end users are
consumed, service; and support, alerting users
and processing
always looking for ways to reduce
of potential issues; and by providing wear-and-
power, customers
administrative burdens and the time it takes to
tear patterns that could help with procuring
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
9
Special Technology Report
(" + *#%)!!('*$+ (") &)#( )'%+*' + )#)*&" & + (&)"% &$+
ERP
parts, scheduling
Nick Castellina, vice president and Research
repair personnel, to
Group director, Aberdeen Group’s Business
Growth development
make design,
Planning and Execution practice, commented
One trend that has re-emerged, according to
manufacturing, and
that the Cloud continues to be an important
Lewis, is the use of ERP to help develop
service
part of the ERP conversation, pointing out that
growth. “Forward-looking manufacturers are
improvements. IoT
over the years, he has witnessed an
paving the way to increased capacity and
usage data permits
increasing number of organisations switching
reinforcing the infrastructure to manage larger
companies to provide
to a Cloud solution for their next deployment
volumes,” he said. “Investing in modern ERP
highly targeted and
rather than an on-premise solution. Another
solutions helps manufacturers identify growth
hopefully successful
area of development highlighted by Castellina
opportunities and take action to seize those
offers to customers
is the verticalisation of ERP, where many ERP
opportunities and capitalise on them quickly.
that will result in fewer
vendors are building solutions that are now
First, advanced analytics help spot trends in
returns and greater
better suited to more tailored industries.
markets, including upward swings in regions or
satisfaction.”
“There is now greater maturation of
among target markets or new products. Once
functionality when it comes to individual
upward trends are spotted, changes can be
industries’ use of ERP, he said.
made to enhance the product line, expand into
However, Read added that IoT complicates the supply chain when there are complex products
new regions or focus greater attention on a
and multiple vendors involved. “Customers
Castellina added that there is also a lot of talk
target market in order to tap into the potential.
want the vendor who they transacted with to
about Industry 4.0 and how ERP can be used
Because modern software promotes efficiency
manage their entire purchase,” he said.
to support that technology. Additionally, he
and increases productivity, manufacturers can
“Sellers have to organise their vendor
explained that there is much discussion around
often increase output in these new areas,
partners.”
the Internet of Things and desire to have one
without adding headcount.”
complete source of information for automating Stuart Hall, sales director, Epicor Software UK
a manufacturing organisation from end to end.
Andy Brown, SCS divisional leader, Access
and Ireland, said that with new trends such as
Castellina also observes that there is a lot of
Group, stated that when it comes to ERP, the
IoT, 3D printing, robotics and increased
focus on usability, cleanliness, the ability to do
one thing that today’s end users care most
automation in the manufacturing sector, he is
more with data and the ability for end users to
about is having access to information in real
seeing ERP solutions continually evolve in
consume that data more effectively.
time so they can make better decisions. “To
order to keep pace. “In 2017, expect to see
make the most of this data you’ll need great
more applications that analyse business data
Phil Lewis, vice president, solution consulting
business intelligence tools, and increasingly
collected from various sources to offer
EMEA, Infor, made the point that ERP has seen
also the ability to manage and analyse Big
business insight,” he said. “Applications will be
incredible change and progress recently.
Data,” he said. “From a production and
able to support improved collaboration and
“Cloud has become table stakes, although we
planning perspective, it will mean having
facilitate data access through responsive
do continue to see some customer
robust processes in place to capture data on
interfaces. In addition, artificial intelligence (AI)
requirements for on-premise deployment as
the shop floor.”
and advanced analytics will transform business
well,” he said, adding: “Gone are the days
applications, making them even more
when customers will endure three-year
According to Brown, the ability of applications
predictive and prescriptive.”
implementations which go out of budget.”
and machines to share data – often referred to
Hall explained that Epicor is also continuing to
Lewis explained that Infor is continuing to see
process. “With
see ERP systems extend to the Cloud.
strong demand for specific last-mile industry
manufacturing
According the Hall, these systems will eventually
functionality ‘out of the box’ as nobody wants
frequently
become Cloud only (Software-as-a-Service or
customisations. “The importance of consumer-
outsourced, ERP
SaaS-based), or available as a hybrid solution.
grade interfaces (and the attendant
systems need to be
In addition to being a cost-effective solution, Hall
improvement in productivity, and therefore
able to talk to live
commented that a SaaS model provides great
competitive edge) also continues to drive a lot
machines, analyse
flexibility and access to data at any time from
of interest,” he said. Lewis added that what
constraints and track
any location. “Businesses of all sizes are
Infor’s prior focus on integration (with the likes
any operating
transitioning their infrastructure and data
of Infor ION) has now evolved into is a
malfunctions so that
ecosystems into the Cloud to minimise the
reflection that the company sees the future of
production planners
burden of upgrades and management; freeing
businesses not just within the four walls of the
can arrange for
up valuable resources to focus on innovation
company but across the Network of suppliers
delivery times to be
and business growth,” said Hall.
and partners.
altered or supplies of
as Industry 4.0 – has become central to this
10
IT
MANUFACTURING
&LOGISTICS
March 2017
% *&%+ *!!$+#*!)# (&)"% &$+
www.logisticsit.com
ERP
Special Technology Report
materials redirected,â&#x20AC;?
of these platforms,â&#x20AC;? he said, adding that the
According to Phelan, enterprises must become
Brown pointed out.
advantage of staying vanilla to some extent is
more flexible and agile to seize business
â&#x20AC;&#x153;The same applies to
that users are able to take advantage of those
moments. â&#x20AC;&#x153;Traditional ERP approaches are no
labour capacity; they
developments in a slightly easier fashion than if
longer tenable to meet the pressures to
have to be able to
they heavily customise.
support increasingly dynamic business needs
identify bottlenecks
as digital business models evolve,â&#x20AC;? she said.
and predict
Speer added that, for organisations who want
â&#x20AC;&#x153;All ERP initiatives are now postmodern ERP
shortages if they are
the benefit of the public Cloud while also
initiatives as a result of the market forces that
going to meet their
retaining all of the familiarity of the product that
have transformed the traditional ERP world. A
OTIF {On Time & In
they are already using â&#x20AC;&#x201C; including the
well-defined ERP strategy that responds to the
Full} promise.â&#x20AC;?
customisations they have made â&#x20AC;&#x201C; a â&#x20AC;&#x2DC;lift and
disruptive challenges created by changes in
shiftâ&#x20AC;&#x2122; may be the best way forward. â&#x20AC;&#x153;We are
the business strategy is key to success with
seeing a number of SAP customers move onto
postmodern ERP initiatives. A business-owned
strategic alliance director, Capgmini UK,
Amazon Web Services,â&#x20AC;? he said. â&#x20AC;&#x153;As far as the
ERP strategy is crucial to properly evaluate
commented that organisations with an existing
end-user is concerned, it is still SAP offering
and select the right solutions and services from
on-premise ERP solution (this might include or
the same user experience and all the
the many options available before launching
touch other areas such as finance, supply
customisations that may have been made to
deployment activities. ERP investments are
chain or HR) â&#x20AC;&#x201C; SAP and Oracle e-business
SAP. However, what is largely invisible to the
long term, so after implementation it is equally
Suite, for example â&#x20AC;&#x201C; maybe looking to upgrade,
end-user is that SAP is running on Amazon
important to manage and govern the ongoing
and using this as a justification to move into the
Web Services, which can provide a much
operation and evolution of the solutions to meet
Cloud. â&#x20AC;&#x153;These organisations have two main
lower total cost of ownership and other
new and changing needs â&#x20AC;&#x201C; always with the
options; they can re-implement with SaaS or
benefits.â&#x20AC;?
goal of optimising business outcomes.â&#x20AC;?
' + &( #$+%)" '("*! (&)"% &$+
James Speer,
they can do a â&#x20AC;&#x2DC;lift and shiftâ&#x20AC;&#x2122;,â&#x20AC;? he explained. For organisations looking to move to SaaS, Speer
Chris Devault, manager of software selection,
believes it is important to understand that
Panorama Consulting Solutions, made the point
Integration
although SaaS can be configured, it cannot be
that software publishers are driving the current
Have ways of best integrating ERP with other
â&#x20AC;&#x2DC;customisedâ&#x20AC;&#x2122;. â&#x20AC;&#x153;These organisations have to
push towards Cloud applications. â&#x20AC;&#x153;Major
systems developed to any notable degree over
consider how they can move from a heavily
players in the industry such as Oracle,
the past year or two? Schipperus believes the
customised ERP into a vanilla SaaS ERP, which
Microsoft, Epicor and Infor are combining
key challenge is integrating, not interfacing,
inevitably involves a higher degree of business
typical on-premise ERP system functionality
with ERP. He commented: â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no doubt
change,â&#x20AC;? he said.
into one platform that will eventually be their
that integration between ERP and a widening
solution for all industries,â&#x20AC;? he said. â&#x20AC;&#x153;Vendors
range of other systems is absolutely vital.
Shashi Subramanian, management consultant,
are looking to reduce the overall entry cost of
Whatâ&#x20AC;&#x2122;s in question is the quality and type of
Capgemini, commented that companies
software and by implementing out-of-the-box
integration being used in many cases. We call
looking for an alternative ERP model should
best practices they are attempting to drive
this the difference between interfacing and
ask themselves where they are in terms of their
down implementation costs and duration.â&#x20AC;?
integration. Interfacing involves extracting data
innovation and differentiation activities and
out of the ERP system to use within other tools
goals, and how they can best ensure that they
Pat Phelan, research VP, Gartner, made the
or for analysis. However, this is limiting in that
can continue to do that in the future. â&#x20AC;&#x153;So, they
point that postmodern ERP strategies offer
youâ&#x20AC;&#x2122;re missing the value of the ERPâ&#x20AC;&#x2122;s full data
need to determine whether the best option
more ways to satisfy business needs with
set. Itâ&#x20AC;&#x2122;s also
would be to move into the private Cloud or
greater agility and flexibility. Yet, she
dangerous in that it
move to a SaaS service,â&#x20AC;? he said. â&#x20AC;&#x153;If
stressed that postmodern ERP is not easy.
creates duplicate
companies want to constantly innovate and
â&#x20AC;&#x153;The greater number of options creates
data and logic which
differentiate then it could sometimes restrict
challenges that many IT enterprises have not
can quickly become
their ability to do this if they move to a SaaS
focused on in the last decade or more,â&#x20AC;? said
difficult to maintain
model. This is definitely worth bearing in mind.â&#x20AC;?
Phelan. â&#x20AC;&#x153;One of the most significant is
and out of date.
integration â&#x20AC;&#x201D; not just application integration
Youâ&#x20AC;&#x2122;re creating extra
but the management of data and process
work essentially. True
high level of competition among the vendor
integrity. As postmodern ERP becomes
integration is where
community and constant improvements are
pervasive, many enterprises will face
the integrated tools
being made within their core platforms. â&#x20AC;&#x153;Part of
increasing complexity, risk and cost that they
are actually driving
the conversation is about which elements of
had not foreseen and are not equipped to
within the ERP.
functionality requirement should become part
deal with.â&#x20AC;?
Theyâ&#x20AC;&#x2122;re plugged into
Subramanian made the point that there is a
www.logisticsit.com
(!+ ) (#$+ (") &)#( )'%$+# ! %( ' " '# !%(' + $+
IT
MANUFACTURING
March 2017
&LOGISTICS
11
Special Technology Report
* ( + (%%)&(' % '$ *"" '%+ *'* )&$+
ERP
them and using the
Quinn pointed out that the well-designed,
journey to task completion regardless of the
processing and logic
document and flexible API is what has
systems involved. It is this
within the core
changed in the realm of integration,
interface/experience that has seen the most
system. Nothing is
extensibility and interoperability for ERP.
progress.â&#x20AC;?
extracted, copied or
â&#x20AC;&#x153;Integrating ERP solutions not using
duplicated; all activity
modernised APIs is like using a hammer to
Constant improvement
occurs within the
drive in a tack,â&#x20AC;? he said, adding that Cloud
Subramanian made the point that many ERP
ERP, utilising its true
integration, like Dell Boomi, has also
companies are investing in the next wave of
value and ensuring
changed the game.
both capability and architecture. He
the best possible
commented: â&#x20AC;&#x153;They are on that journey so not
information is available.â&#x20AC;?
all parts of their solutions are currently as
Flexibility, relevance and cost-effectiveness
refined as they would like. There are a number of leading players in the complementary
Titterington explained that Prodware sees a
solutions marketplace; warehouse
Single stack approach
lot of third-party products acting as
management solution providers such as
Schipperus added that, whether within one
connectors between applications bringing
Manhattan Associates and JDA, for example.
system or tightly integrated separate
together detached systems. â&#x20AC;&#x153;Of course, it
These companies are also constantly
systems, Sana is seeing more customers
has become increasingly important to
improving their solutions and the functionality
wanting a single stack approach to e-
provide your workforce with a consistent
on offer. Then, there is of course the
commerce. â&#x20AC;&#x153;This is becoming imperative
user interface and experience in order to
conversation about how ERP and WMS
and is why weâ&#x20AC;&#x2122;re working so closely with our
increase productivity and collaboration
solutions etc. can integrate together. For the
ERP partners Microsoft and SAP to deliver a
between teams,â&#x20AC;? he said. â&#x20AC;&#x153;With Microsoft
most part, there are now many instances of
single solution,â&#x20AC;? he said.
Dynamics 365 users can purchase
these different types of systems integrating well
individual role based applications which
together. Some challenges still remain but in
Castellina commented that the goal of an
integrate seamlessly with each other using a
general integration is improving all the time.â&#x20AC;?
ERP strategy is really to have a one-stop
Common Data Model. So, businesses get
shop for all of the data users need within
flexibility, relevance and cost-effectiveness.â&#x20AC;?
their business from end to end. â&#x20AC;&#x153;So, either
Speer said that within the context of integration, the whole concept of digital transformation is
micro-vertical type functionality is being built
Devault commented that major ERP vendors
important to consider. He commented: â&#x20AC;&#x153;In the
into the ERP system, or users are being told
continue to enhance out-of-the-box
case of organisations who claim to have a
by the vendor that their ERP system can
capability by developing new functionality
digital transformation agenda and strategy, the
effectively integrate with the point solutions
within their systems, channel partners also
conservative or less visionary organisations
they require; solutions that are maybe more
are continuously developing enhancement
often tend to think about this more in terms of
robust than those that are contained within
functionality for their clients. â&#x20AC;&#x153;Some IP from
some sort of veneer customer experience
the ERP solution that they have purchased.â&#x20AC;?
channel partners does make it into
solution that maybe allows them to do both
enhancements when/where appropriate,â&#x20AC;? he
B2B and B2C business through typical
Castellina added that some ERP vendors
said. â&#x20AC;&#x153;Vendors are also assessing and
channels such as mobile and the web. I think
can only take users so far when it comes to,
acquiring third-party products that are
the more forward-thinking organisations need
for example, warehouse management,
proven in the market place, embedding
to look at digital transformation much more
where it might be deemed necessary to look
these solutions into their ERP.â&#x20AC;?
holistically; not just in terms of breadth but also
to an additional solution to help beef-up the
in terms of depth.
userâ&#x20AC;&#x2122;s IT capability. â&#x20AC;&#x153;But the goal is to still
Lewis remarked that integration â&#x20AC;&#x201C; and the
This means going
retain that one source of information,â&#x20AC;? he
user experience of the integrated system â&#x20AC;&#x201C;
right down into the
said.
now needs to be seamless. He added:
back office and the
â&#x20AC;&#x153;Tools such as Infor Ming.le that take the
mission-critical
Read has observed that companies and
user through applications that all contribute
systems of record;
vendors are looking to deeply integrate their
to the completion of a task, across disparate
including ERP.
ERP solutions with other adjoining
groups of people and can even take data
applications, such as CRM and CPQ
from applications or machines themselves â&#x20AC;&#x201C;
â&#x20AC;&#x153;This means that
(configure, price, quote). â&#x20AC;&#x153;They want single
mean that integration under the hood has to
whether you're an
and actionable view of their business
be world-class. But even more important is
employee, whether
processes,â&#x20AC;? he remarked.
that it must be invisible to the end user and
you're a customer or
that the integration should allow a smooth
whether you're a
12
IT
MANUFACTURING
&LOGISTICS
March 2017
*%+ )!*'$ &)#)*&" + $+
www.logisticsit.com
ERP
Special Technology Report
business partner you
example, BEC has enabled warehouse
“You might have ten years of customer history
have that real-time
functionality in Raleigh’s ERP system so the
stored in the ERP. Having this at your fingertips
joined-up integrated
company hasn’t had to purchase a WMS. As a
within a mobile app is critical to performance.
experience across
result of bringing this into the ERP system,
This is particularly vital in B2B sales
any channel anytime
Raleigh now has the real-time business
environments where customers may have
anyplace anywhere.
intelligence it would not have had if it was part
bought frequently and loyally from a
For that to happen,
of a separate system.
manufacturer or supplier on a week-by-week
organisations need a ' + & '$+ ( (#( '*!+!)* )&$+
basis over many years.”
solid platform that Quinn made the point that the notion of mobility
systems; including
Mobile/back-office integration
ERP. For instance, if
Has the increased trend for the integration of
“Except for field service and those types of
you are a utility company and you are
mobile/field service devices with back-office
specialty apps, HTML5 has already changed
embarking on an IoT (Internet of Things)
ERP systems provided improved business and
the game for ERP,” he said. “Users of all time,
strategy how do you consolidate and
operational benefits for the end user?
those travelling often, work-from-home types
aggregate that data in a way that doesn't
Titterington commented in the affirmative. “One
and those with midsize form factor preference
overwhelm the ERP but at the same time gives
of the biggest customer complaints with field
can now use all or most of a modernised ERP
recent meter readings? Similarly, if you’re an
service is poor first-time fix rates followed
solution from whatever device they like. There
employee how do you get access to pay slips
closely by cost,” he said. “With machine
will remain, however, function, role or job
on your mobile phone if you're out of the field
learning capabilities, you can also distinguish
specific ERP capabilities that work better on a
as soon as they are available – given that ERP
fault patterns, forecast when a maintenance
native mobile framework.”
is often buried deep down in the business.
issue is likely to occur, and detect a solution.
links all these different
has driven the change in ERP, not vice versa.
We always suggest reviewing these areas as it
Briggs commented that there are two aspects
“I think the main point here is making sure that
saves your customer time and money whilst
to consider – the first being recording
each of these mission-critical systems of
optimising your own business performance.”
processes and transactions in real-time in
record, including the ERP, are integrated with
For manufacturers who are diversifying into
order to facilitate increased accuracy and
the rest of the business in the most efficient
servicing what they produce, Titterington
productivity for people who are doing the work.
way to enable these types of scenarios.”
explained that Microsoft Dynamics 365 for
“The obvious benefits of this are increased
Field service provides monitoring through the
productivity and accuracy of data,” he said.
Internet of Things allowing companies to
The other aspect, according to Briggs, is
Information sharing through a single solution
replace costly break-fix service with a
managers and shift supervisors, etc being able
proactive service which follows self-healing
to access business information, reports,
Andy Briggs, technical director, BEC (Systems
steps.
dashboards etc from mobile devices such as
Integration) Ltd., commented that the better
mobile phones and iPads. “The information is
ERPs try to address all of the business needs
Schipperus explained that field sales is one of
to hand – they don’t need to dial in or call
in terms of putting together various operational
the areas that has been highly automated and
somebody up in order to see this up-to-date
or application strands such as CRM, Sales &
digitised through apps and devices. However,
information,” he explained.
Marketing Management, Enterprise Asset
he added that what is essential is that these
Management, WMS, Supply Chain and Service
remote tools absolutely link into the ERP and
& Maintenance – i.e. putting together different
are not just synchronising data.
systems that may have been separate systems
Offline working Lewis said mobile is a critical consideration in
with integration links into one common
He continued: “The full ERP data, processing
all areas. In the case of Infor’s Mobility for
environment. In this way, said Briggs, all the
power and pricing logic should be accessible
Field Service (Infor MFS), Lewis explained
information can be shared across the business
in real time to make them really useful, but also
that a key improvement is the ability for offline
through one solution rather than many. “The
to stop multiple versions of data being created
working – enabling field workers to update the
better ERPs are achieving this by having a
that then require constant updates back into
information on each job as they complete it.
common architecture upon which all of these
the ERP to ensure data is not lost. Doing this
“This becomes important when back-office
modules are built,” continued Briggs. “This is
also enables external sales agents to work with
analytics are carried out on data later,” he
called ‘Service-Oriented Architecture.’ – the
the correct data around customer specific
said. “Understanding exactly how long each
platform that brings all of these parts together
pricing, stock availability, order history and
job takes can improve job allocations in the
as it has been written purely to achieve this.”
customer agreements, which we see great
future. The data can also be used to assess
demand for in manufacturing sectors such as
potential training requirements between
food & beverage.
different staff.”
In the case of BEC’s customer Raleigh, for
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
13
Special Technology Report
ERP
However, Lewis
comes down to the type of organisation. â&#x20AC;&#x153;In
already have significant investments in ERP
stressed that it is not
larger businesses with lots of ERP history, the
applications â&#x20AC;&#x201C; some are in the process of
just a case of
adoption process has been to tailor ERP to
implementation while others are rolling it out
information in the field
their business processes,â&#x20AC;? he explained. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s
globally or renovating their existing
feeding the back
hard to reverse this and move to Cloud which
deployments. â&#x20AC;&#x153;Movement to one or more of the
office. â&#x20AC;&#x153;Information
generally speaking offers more â&#x20AC;&#x2DC;vanilla
three Cloud-dependent HOOF scenarios is
flows two ways,â&#x20AC;? he
flavouredâ&#x20AC;&#x2122; platforms. For younger, or smaller, or
fuelled by market-disruptive technologies
said. â&#x20AC;&#x153;This cuts the
generally more agile organisations, Cloud ERP
including â&#x20AC;&#x2DC;as a serviceâ&#x20AC;&#x2122;, the Internet of Things
time of repair and the
may offer less in bespoke functionality but it
and in-memory computing technologies,â&#x20AC;? she
burden of maintaining
makes up for this by being far quicker to
said. â&#x20AC;&#x153;The rearchitecting of traditional ERP
plant significantly. If
deploy and use. For these organisations the
solutions by mature ERP vendors, a surge of
operational data is
priority is not always finding the system that is
contemporary Cloud/SaaS vendors and the
more quickly
the ultimate fit for the business, but one which
proliferation of shadow IT are changing the
updated, then back office processes are
can be introduced easily, has regular and
market landscape. These changes are forcing
quicker â&#x20AC;&#x201C; invoices are the obvious example.â&#x20AC;?
uniform upgrade cycles and fits 90% of its
CIOs and their stakeholders to rethink their
requirements without expensive
ERP roadmaps and lifecycle.â&#x20AC;?
* )#+ ))&$+#%&*%) (" *!!(*'")+ (&)"% &$+
customisations. So, ERP in the Cloud or not?
Cloud/SaaS
Itâ&#x20AC;&#x2122;s still an open choice. However, we do see
Titterington said that as Cloud computing has
And what of the current state of play regarding
Cloud being the future of ERP, but with many
redefined the traditional ways in which
Software as a Service (SaaS) and Cloud
different timescales and adoption approaches
enterprises operate, UK business have been
models in relation to ERP? Andy Brown,
to consider.â&#x20AC;?
transforming their operating models with various Cloud computing technologies such as
Access Group, made the point that it is
SaaS, PaaS, and IaaS. â&#x20AC;&#x153;A greater emphasis on
important to be clear about the difference between Cloud and SaaS in the first instance.
â&#x20AC;&#x2DC;Keeping the lights onâ&#x20AC;&#x2122;
service delivery has compelled distributors, as
â&#x20AC;&#x153;Most customers want to be able to access
Quinn explained that some competitive new
well as manufacturers and retailers, to
their ERP application from anywhere, at any
Cloud-only ERP vendors have emerged. â&#x20AC;&#x153;Some
reassess and redefine their role and to adapt
time,â&#x20AC;? he said. â&#x20AC;&#x153;This does not necessarily mean
established historically on-premise vendors
to the changes in the way technology is being
that they want to pay for it via a subscription, or
that jumped to the Cloud relatively early have
implemented and used,â&#x20AC;? he said. â&#x20AC;&#x153;The growing
to use it via a web browser. A traditional on-
put themselves in a better position,â&#x20AC;? he said.
shift to the Cloud and SaaS ERP deployment
premise system may still be hosted elsewhere
â&#x20AC;&#x153;Some of the laggards are playing catch up
has focused the mind of IT managers on
and accessed remotely, without being fully
and losing share. IT departments and their
mobility, cost control and responsiveness as
web-enabled. Web functionality sometimes
business partners recognise that most ERP
central themes in their procurement.
comes at the expense of speed, which is not
vendors are going to know how to run their
Specifically for distributors, the Cloud can
acceptable when it comes to real-time
ERP better than the customersâ&#x20AC;&#x2122; IT department,
provide benefits in reliability, consistency,
planning.â&#x20AC;?
and even more securely. Defensive IT
predictability of capex and real-time updates in
departments are afraid of losing jobs and
inventory levels and pricing.â&#x20AC;?
Brown pointed out that a hybrid model can
political capital. Enlightened IT departments
work very well. â&#x20AC;&#x153;Bolt-on modules, such as
see the opportunity to shift â&#x20AC;&#x2DC;maintenanceâ&#x20AC;&#x2122; and
Lewis commented that Cloud has gone
payroll, business intelligence, or CRM, can be
â&#x20AC;&#x2DC;keeping the lights onâ&#x20AC;&#x2122; to the ERP vendor, and
beyond being the new normal and is pretty
designed to be pure Cloud standalone
redeploying the IT team into more strategic
much the default requirement for a lot of high
applications, while having the ability to connect
efforts that increase the value of IT.â&#x20AC;?
growth businesses looking for ERP. â&#x20AC;&#x153;Indeed, it is pretty much default for all business,â&#x20AC;? he
with a central ERP function,â&#x20AC;? he said. That said, Quinn added that the notion that a
added. â&#x20AC;&#x153;We have around 7000 customers on
Schipperus stated that Cloud and on-premise
Cloud ERP vendor will automatically install
Cloud, totalling around 66 million users. This is
models are both valid. â&#x20AC;&#x153;Cloud and ERP have
changes blindly is â&#x20AC;&#x153;a terrible ideaâ&#x20AC;?. â&#x20AC;&#x153;ERP
because Cloud is all about growth.â&#x20AC;?
together moved mountains in recent times,
impacts business processes,â&#x20AC;? he said. â&#x20AC;&#x153;There
especially in terms of giving a greater number
needs to be an open and opt-in approach for
Lewis explained that according to a recent IDG
of smaller and mid-sized businesses access to
new capabilities. The blind updates we
survey of senior IT decision makers, 73%
these tools,â&#x20AC;? he said. â&#x20AC;&#x153;However, itâ&#x20AC;&#x2122;s still a two-
experience in Facebook could prevent a
believe Cloud will change the way new
horse race with ERP being divided between
company from closing its books on time in the
services are delivered and consumed, 73%
Cloud and on-premise.â&#x20AC;?
realm of ERP.â&#x20AC;?
say Cloud will increase speed of service
According to Schipperus, the reason for this
Phelan made the point that most enterprises
delivery and 82% say Cloud will enable new
14
IT
MANUFACTURING
&LOGISTICS
March 2017
and efficient ways to reach customers.
www.logisticsit.com
ERP
Special Technology Report
However, for ERP in particular, Lewis remarked
Even so, Read remarked that Cloud ERP
remains, as it has always been â&#x20AC;&#x201C; garbage in
that Cloud is now table stakes for any
systems have not yet been fully embraced by
garbage out. A commitment to business-driven
discussion. â&#x20AC;&#x153;Any business looking to
the marketplace. â&#x20AC;&#x153;The reasons include that the
data quality, nurturing, filtering, proliferation,
implement new ERP systems wants agility,
Cloud systems may lack the full range of
security and management is the only
speed, flexibility, scale and fast ROI â&#x20AC;&#x201C; and that
features provided by on-premise systems,â&#x20AC;? he
guarantee to value. You might have the coolest
means Cloud,â&#x20AC;? he said.
said. â&#x20AC;&#x153;Companies also may be reluctant to
Big Data tool and brightest data scientists on
surrender control to the Cloud. They will want
the planet, but if your company is not culturally
assurances that the cloud ERP platforms are
data driven and you arenâ&#x20AC;&#x2122;t managing your
Greater flexibility and easier data access
going to perform reliably and securely before
incoming data properly you will be wasting
trusting their applications, and their
plenty of money.â&#x20AC;?
Hall commented that more and more
businesses, to them.â&#x20AC;? Titterington considers that business intelligence
enterprises are opting for the SaaS model as they look to swap their CapEx for OpEx and
Devault believes end user adoption is the key
(BI) is an essential tool for collecting,
streamline their upgrade processes to
to any successful ERP implementation. â&#x20AC;&#x153;Over
classifying and evaluating information from all
ensure that they can take advantage of the
the last few years, vendors have made it a
levels of an organisation. â&#x20AC;&#x153;BI applications can
latest features and functionality. Hall added
focus to improve dashboards, role centres and
filter through data from across the supply chain
that it provides great flexibility and access
homepages,â&#x20AC;? he said. â&#x20AC;&#x153;Infor specifically has
â&#x20AC;&#x201C; from suppliers and materials to production
to data at any time from any location, as well
the â&#x20AC;&#x2DC;customer experienceâ&#x20AC;&#x2122; as a new mantra.
and shipping,â&#x20AC;? he pointed out. â&#x20AC;&#x153;BI and Big
as a reduction in the total cost of ownership.
Making systems easier to navigate and intuitive
Data has become the driving force of more
Hall also explained that SaaS enables
in use is becoming protocol. Enabling users to
and more software implementations. They
employees to more easily access
personalise dashboards, create custom
enable manufacturers and distributors to make
applications remotely, â&#x20AC;&#x153;which is now
queries and collaborate with other users
real-time, informed decisions to improve shop
considered somewhat of a necessity
without involving IT resources is essential.
floor efficiencies â&#x20AC;&#x201C; providing insight into
considering todayâ&#x20AC;&#x2122;s highly mobile workforce
Cloud/SaaS deployments tend to have more
production line yield trends, product
and the need to remain connected anytime
best practices build into the system, simplifying
configurations, BOM profitability, cost to order,
and anywhereâ&#x20AC;?.
and streamlining the end user experience.â&#x20AC;?
inventory levels, external trends, sales strategy
Read is seeing Cloud ERP emerge as a
Castellina commented that the Cloud model is
popular option to on-premise development.
very much an established viable deployment
â&#x20AC;&#x153;Cloud ERP offers a compelling value
option today. He added that, from a security
Lewis maintains that the discussion on Big
proposition of lowered costs, greater
perspective, most of the previous concerns in
Data has already evolved. â&#x20AC;&#x153;Two years ago, it
scalability, and swifter and less error-prone
this area have been washed away. â&#x20AC;&#x153;One of the
was about collecting the data; now it is about
implementations,â&#x20AC;? he said. â&#x20AC;&#x153;New Cloud
primary goals of an ERP vendor is to ensure
how it is used or analysed,â&#x20AC;? he said. â&#x20AC;&#x153;Next-
solutions can go live in as little as three
that it is providing customers with a secure
generation enterprise software won't just
months. Adopting or switching to Cloud ERP
solution that is not going to be subject to
collect, report, and distribute information â&#x20AC;&#x201C; it
also avoids making costly upgrades once
security breaches or subject to downtime,â&#x20AC;? he
will anticipate problems and respond with
the applications are installed in order to
said. â&#x20AC;&#x153;So, in many ways end-users understand
solutions. It will uncover opportunities and
keep them current with new technologies
that a Cloud solution is actually more secure
recommend next steps. It will drive strategies
and market trends. Companies use these
than just relying on their own internal firewall.
in all areas of business, from recruiting and
development, turnover and forecasting, resource management and more.â&#x20AC;?
staffing to asset
occasions to move to the Cloud to avoid the
management and
costly, capital-intensive, and timeconsuming tasks of integrating existing on-
Big Data
pricing. Overall, ERP
premise systems or rip-and-replacing them
How can technology trends such as Big Data
driven by Big Data
with new on-premise solutions.â&#x20AC;?
help to gain the best out of ERP systems
will use data science
(either existing or upgraded)? Quinn believes
to identify, analyse,
Read added that the Cloud ERP demand has
that realising benefit from Big Data or
and solve complex
been driven by the midmarket, but enterprises
advanced analytics is more cultural than
business problems.
that have on-premise ERP systems are
technological. â&#x20AC;&#x153;Companies that want to be
Examples might be
gradually adopting Cloud ERP. â&#x20AC;&#x153;For example,
data driven â&#x20AC;&#x201C; and that is a position held from
staffing allocations,
itâ&#x20AC;&#x2122;s being used by the automotive industry for
the CEO and board on down â&#x20AC;&#x201C; have plenty of
inventory optimisation
functions and tasks to support new products or
choices in the analytics realm; maybe too
or parts tracking.â&#x20AC;?
services that require agility, innovation, and
many choices,â&#x20AC;? he said. â&#x20AC;&#x153;The key regardless of
speed,â&#x20AC;? he explained.
when you adopt advanced analytics, however,
www.logisticsit.com
&(#+ ) * !%$ *'* )&+ +# % *&) #)!)"%( '$+
Hall considers that
IT
MANUFACTURING
March 2017
&LOGISTICS
15
Special Technology Report
ERP
technology advances
together. Some supermarkets, for example, use
in manufacturing
Big Data to forecast demand, but how does
The road ahead
have made data
that translate into actually being able to
What might be the next
accessible in a way
forecast demand accurately and ensure the
innovations/developments to look out for over
that it has never been
stores and the warehouses have the necessary
the next year or two? Schipperus commented
before. â&#x20AC;&#x153;Information
available stock. How Big Data and ERP link
that, in many ways, it is ERPâ&#x20AC;&#x2122;s rich historic
can be collected in
together is something that companies are
data that holds the key to improving the future
real time, in points
doing in different ways to varying levels of
customer journey â&#x20AC;&#x201C; based on buying patterns,
through the
efficiency, but the essential idea of utilising
product choices etc. â&#x20AC;&#x153;ERPâ&#x20AC;&#x2122;s ability to offer Big
manufacturing
large amounts unstructured data in order to
Data insights into customer behaviour, not
process,â&#x20AC;? he said.
structure a more complete end-to-end view
only in a static business analysis environment
â&#x20AC;&#x153;The issue now is
that can help companies make better
but also as part of an intelligent process, is
what to do with all of
decisions and enjoy better business outcomes
essential to our world at the customer
that data, and how
is a very relevant one.â&#x20AC;?
coalface,â&#x20AC;? he said.
and turn it into actionable insights. Regardless
Castellina commented that Big Data is really
Quinn believes we will continue to see
of size, end-to-end visibility is something that
about making data more consumable and
adoption of IoT and advanced analytics.
many manufacturers strive for, yet struggle
more usable for the business user. ERP
â&#x20AC;&#x153;They walk hand in hand, but companies will
with. However, in this new age of Industry 4.0,
systems are well-established suppositories for
need to modernise their ERP to fake full
it is now possible for manufacturers to achieve
a wide range of information for businesses, but
advantage,â&#x20AC;? he said. Quinn considers that we
this via a combination of Big Data and IoT-in
Castellina makes the point that organisations
will also see virtual reality and 3D printing
other words, achieving end-to-end connectivity
are faced with more and more data concerned
continue to gain traction in manufacturing. On
across the entire manufacturing process and
with more and more things â&#x20AC;&#x201C; and much of this
the tech front, however, he believes edge
throughout the supply chain. Leaders in
data is unstructured. â&#x20AC;&#x153;Big Data and in-memory
computing, as an adjunct to Cloud, will begin
manufacturing are at the top because they
computing are making it easier for businesses
to have an impact. â&#x20AC;&#x153;Want Big Data to fly
understand the value in collecting data, which
to use that data to make decisions quicker and
without impeding ERP? Move to the edge.
helps them to make more accurate business
more effectively,â&#x20AC;? he said, adding: â&#x20AC;&#x153;Big Data is
Want slender versions of ERP to support
decisions. Through connectivity between
about being able to consume more of that data
smaller remote operations? Can you say
machines, devices and manufacturers, data
more quickly, and being able to use it in a lot
Edge?,â&#x20AC;? he remarked.
can be gathered to take advantage of the
of different ways. We often hear a lot of talk
newest advances in technology, allowing for
around how Big Data can be used for
Lewis explained that Infor has been
higher productivity and efficient processes.â&#x20AC;?
managing customer data and identifying trends
pioneering co-innovation â&#x20AC;&#x201C; partnering with
and looking at ways to maximise your revenue.
new customers in industries that need
So, there's a lot of opportunity for organisations
disrupting â&#x20AC;&#x201C; to create completely new
of all types.â&#x20AC;?
capabilities and improved functionality. â&#x20AC;&#x153;This
&)' *'+ )* $+#)'( & (' #%& +*'*! #%+ ( (%*!+%&*'# & *%( '$+
businesses can take the information collected
Two ways of thinking Subramanian believes Big Data is certainly an
has been most dramatic in retail, but there is
ongoing area of development within the ERP
Briggs explained that much of the BI in BECâ&#x20AC;&#x2122;s
no reason why it cannot be applied to
marketplace. He elaborated: â&#x20AC;&#x153;If you look at Big
solutions to date has focussed on users; for
industries such as aerospace and automotive
Data within the context of bringing unstructured
example, the performance/productivity of
or process manufacturing,â&#x20AC;? he said. â&#x20AC;&#x153;Indeed,
data together, having a data lake and being
operatives. â&#x20AC;&#x153;We expect that we are going to
in some areas such as the heavily regulated
able to analyse and predict things in order to
see much more use of the masses of data that
pharmaceutical industry, these kinds of
derive benefits such as greater visibility of
can be gathered through our production line
partnerships hold a great deal of promise.â&#x20AC;?
customer demand etc., this is somewhat
systems â&#x20AC;&#x201C; sensors, measuring, testing
different to the tradition idea of ERP, which is
equipment, robots etc., giving the ability to
Lewis added that outside of manufacturing,
more about relying on more structured data
monitor all business process, transparently
but heavily influential, has been Inforâ&#x20AC;&#x2122;s work
and working through a well-defined set of
across many sites,â&#x20AC;? he said. â&#x20AC;&#x153;The large
with leading retailers â&#x20AC;&#x201C; transforming the way in
processes. Philosophically, these two ways of
volumes of quantitative data will enable very
which they interact with customers â&#x20AC;&#x201C; driven by
thinking about data are very different.
accurate measurement and forecasting of
customer demands. â&#x20AC;&#x153;Infor believes the
resources - labour, energy, materials etc., and
manufacturing industry needs to learn the
â&#x20AC;&#x153;However, of course in order for companies to
provide immediate real-time quality and
lessons of its retail cousins in the way
make sense of what they need to do from
reliability measures with triggers for anomalies
manufacturers interact not only with their
prediction through to execution there has to be
and exceptions, which can then be handled
existing customers today but perhaps
a place where these two philosophies come
immediately.â&#x20AC;?
customers more directly in the future as
16
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
ERP
Special Technology Report
aim to provide better quality information,
and automate communications and
quicker information and better connected
collaboration. â&#x20AC;&#x153;Companies are more in tune
Titterington commented that Microsoft
information. He added that Capgemini is also
with their supply chain to the point of sharing
Dynamics 365 is a new approach that brings
seeing a resurgence in interest in RFID; for
access to each other systems,â&#x20AC;? he said.
together Microsoftâ&#x20AC;&#x2122;s CRM and ERP solutions
example, a number of leading retailers have
â&#x20AC;&#x153;Getting real-time data and responses from
into one platform with specific, purpose-built
successfully implemented this technology and
vendors, and even customers, brings
apps for business functions such as Finance,
are in the process of expanding the scope of
enormous upside potential. Tools used for
Sales, Customer Service, Field Service and
their investments. Another area where
internal and external collaboration will
Operations â&#x20AC;&#x201D; with built-in insights,
Capgemini is seeing increasing awareness
continue to improve and be implemented.â&#x20AC;?
intelligence, and workflows. â&#x20AC;&#x153;All Dynamics
revolves around a number of dimensions of
365 apps, plus the wider portfolio of Cloud
information data collection for ERP inventory.
Devault added that manufacturing
business solutions like Office 365, share a
Subramanian explained that the first is â&#x20AC;&#x2DC;how
companies are increasing their use of
common data model to make it easier to
will my processes benefit my customer?â&#x20AC;&#x2122;. â&#x20AC;&#x153;For
software tools for research and design. He
build, collaborate and grow,â&#x20AC;? he said. â&#x20AC;&#x153;I see
example, if I know where my stock is within
continued: â&#x20AC;&#x153;Social media comes into play as
more line of business managers making and
the store, can I offer these products to my
the Internet of Things provides access to
influencing IT decisions, this subtle but
customer in such a way so as to provide an
data that can be leveraged in numerous
important change in procurement of tech is
improved customer experience?,â&#x20AC;? he said.
ways. Distribution companies are
driving more app based approach but without
â&#x20AC;&#x153;Then, if I want the customer experience to be
collaborating with customer for more
the disjointed challenges for IT, hence the
consistent, and have the software and
accurate sales forecasting which can lead to
Common Data Model.â&#x20AC;? Titterington added that
hardware in place, how do I ensure that my
better MRP calculations giving companies
augmented reality (AR) is quickly becoming
store operations are optimised in order to
the ability to optimise inventory levels and
an important technology in the workplace,
ensure staff are fully focused on providing the
locations. Mobility continues to be an ever-
bridging the digital world and the physical
best customer experience? For example, how
improving component in the ERP space.
world. â&#x20AC;&#x153;During the next few years I think AR
do I do receiving, and how do I move stock
From sales teams having better access to
will become more commonplace impacting
from the back room to the front room? Then, if
production and available to promise data to
business activities such as cost effective and
this is what I need to achieve in the stores
field service technicians being able to order
more lifelike training for engineers,â&#x20AC;? he said.
how do I intelligently orchestrate all the stock
replacement parts on the fly.â&#x20AC;?
business models evolve,â&#x20AC;? said Lewis.
coming in from my vendors across my Castellina commented that there will be a lot
warehouses and logistics centres through my
Hall commented that Epicor believes in the
more talk around defining what the Internet of
3PLs and plan for it in a manner that is the
rise of smart factories. â&#x20AC;&#x153;Simply put, this is the
Things is and how it can benefit
most efficient? Finally, how do I ensure that I
computerisation of manufacturing-machines
manufacturing businesses in practice. He also
can connect seamlessly with all my suppliers
that are technologically advanced enough to
anticipates the continued development of
and customers? All this information feeds into
communicate with each other, monitor
ways by which users can derive maximum
the ERP system, so the more efficient I
physical processes and make decisions,â&#x20AC;? he
value from connected devices. Overall,
manage these processes the more efficient
explained. â&#x20AC;&#x153;Industry commentators believe
Castellina believes we will continue to see a
my ERP will be for my business.â&#x20AC;?
that there are many benefits of creating a â&#x20AC;&#x2DC;smartâ&#x20AC;&#x2122; manufacturing environment, including
developing trend regarding the further consumerisation of ERP; making the solutions
Phelan commented that all scenarios will
greater productivity, more detailed product
easier to use and spreading their reach wider
coexist during the next 10 years, and an
specifications, and the potential to reach a
across business functions within customer
organisation may move through several
wider customer base. However, to take full
organisations. â&#x20AC;&#x153;I
scenarios over that time (e.g., on-premises
advantage of these â&#x20AC;&#x2DC;smart environmentsâ&#x20AC;&#x2122; it is
think it's all about the
monolith to hybrid to flip). â&#x20AC;&#x153;Therefore, CIOs
essential for manufacturers to use
continuing
and ERP leaders must understand these
technologically advanced ERP systems that
development
scenarios, help their enterprises understand
can support this kind of machine interaction
towards better
what they mean, then jointly decide which
and extract relevant necessary data. Wholly
usability and better
paths to follow and execute upon their chosen
smart factories may be some time off yet but
decision-making,â&#x20AC;? he
strategic direction,â&#x20AC;? she said.
industry is definitely realising that creating smart production processes is a â&#x20AC;&#x2DC;smartâ&#x20AC;&#x2122; way
said.
to cut costs and increase efficiency.â&#x20AC;? *# (+ &* *'(*'$ *'* ) )'% " '# !%*'%$+
believes there will
Enormous upside potential
continue to be
Devault considers that, in the short term, we
developments that
will see vendors using technology to improve
Subramanian
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
17
\\\ Manufacturing \\\
Success story
/23268*05&38using QAD Cloud ERP ounded in 2006, Plasan Carbon
million per year supplying carbon fibre hoods,
Composites is at the forefront of the
roofs, splitters for front spoilers, rockers, and
carbon fibre automotive
rear lifters for Corvette Stingrays and Dodge
components movement and the
Vipers.
F
leading provider in North America.
The company transformed into a high-volume
Production of the carbon fibre components is
manufacturer three years ago, in response to
a combination of robotic automation and
new vehicle fuel-efficiency standards
highly skilled hands-on finishing work. Plasan
requiring American-made cars and light
expects to increase to $150 million annual
trucks to average 34.5 MPG by 2016 and 54.5
revenue in the next five years as they expand
MPG by 2025.
their volume and customer base. system that could handle all aspects of the
Lightening the weight of an automobile, without compromising its integrity, is one of the most effective ways to increase fuelefficiency. Every 10% reduction in weight
business, work well now and be able to grow with Plasan – and we needed it quickly,”
The challenge: Starting up a new company with looming customer contracts
comments Phillip Austin, Plasan’s systems manager. “We knew we didn’t want to invest
results in a 7% increase in gas mileage.
money, personnel and time in an on-premise
Carbon fibre components are lighter and
Plasan was in the enviable position of starting
solution. Leveraging a cloud ERP was the
stronger than standard auto body materials,
up a new company with two major OEM
best choice for us.”
providing a great growth market for the
customers already in place. There was
The team started investigating cloud ERP
foreseeable future.
enormous pressure to get up and running as
companies. QAD’s excellent reputation and
quickly as possible.
automotive industry expertise made them the
General Motors and Chrysler were customers
top contender very quickly.
since the formation of the company, and
“As soon as we got the contracts with GM
“QAD is a major power in the automotive
Plasan currently has sales approaching $100
and Chrysler we realised we needed an ERP
sector and their Cloud ERP is a well-
“
If we used on premise ERP we would need to double, triple, even quadruple our ERP team to support our 24/7 operations, plus invest in hardware. Thanks to QAD Cloud ERP we don’t even have to think about that." – Phillip Austin, Plasan
18
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Success story
\\\ Manufacturing \\\
established product,” continues Austin. “Knowing QAD’s reputation and having worked with the company in the past – it was an easy choice.”
The Solution: Implementing QAD Cloud ERP while starting up a new company with a new manufacturing facility
Many things had to happen simultaneously in the hectic time Plasan was getting up and running. The company set up a new 200,000 sq. ft. manufacturing plant in Walker, MI. While working on the logistics of the factory floor, the QAD Cloud ERP system was being put into place. There was a critical deadline to
•
satisfy both GM and Chrysler contracts. • “We needed to be up and running quickly, so we focused on tracking production, financials,
•
The system has proven to be very stable
“Our focus is on expansion,” continues Austin.
and responsive with excellent uptime.
“We need to speed up our manufacturing
It is easy to implement additional
process to increase volume which will allow
functionality such as lot tracing.
us to expand our customer base. QAD Cloud
Little customisation has been necessary
ERP is helping us capture the data we need
purchasing, and order entry,” notes Austin. “It was invaluable to be able to begin with an ERP implementation that required very little customisation. The entire process took less than three months with the QAD Cloud ERP
“
QAD Cloud ERP is perfect for our company. It requires little customisation, implements quickly, accommodates our future growth and places the power and expertise of QAD at our fingertips.” – Phillip Austin, Plasan’s Systems Manager
team’s help, while ensuring great options are available for future plans.”
Benefits: QAD Cloud ERP’s effectiveness starts strong and grows with Plasan
•
“Our first four years in business have proven
making future upgrades easier and less
to determine where we can make changes
complex.
and improvements in our processes and
QAD Cloud ERP has made a separate
better streamline inventory. QAD Cloud ERP
disaster recovery plan unnecessary which
will support our rapid growth and it’s a
eliminates a huge expense.
comfort knowing QAD’s knowledgeable staff
The system has all the functionality and
is out there supporting us, versus Plasan
been instrumental,” states Austin. “We haven’t
accreditations needed now as well as for
having to run the system.”
had to invest in expert programmers or
future international expansion with its
expensive hardware.
variety of languages, currency and EDI
very successful and QAD Cloud ERP has
•
capabilities. QAD always has us covered with knowledge,
•
QAD supplies training to systematically
training and backup.” Just some of the
increase knowledge and ensure our
benefits of QAD Cloud ERP are:
super-users are fully utilising QAD Cloud ERP’s capabilities. •
All manual systems are being eliminated
Highlights
and the engineering, maintenance and
!5()26$8
routing departments are now also being managed through QAD Cloud ERP. •
The QAD Cloud ERP solution seamlessly links our R&D location to our
/23268!20#568 !5()5341738 2/ 70"8 8 72. -2017038 -15(514%78 6.-310$8 !20#568 4#078 05.-,138 !5()567613 5/-145638-14/437.8 8!/5-.8
manufacturing site.
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
19
\\\ Manufacturing \\\
Product news
7)/$8/2-6,+738 04, 8 7)/$ â&#x20AC;&#x201C; the new manufacturing operations platform for Industry 4.0 s a specialist in the design and
A
implementation of solutions based on new communication channels and digital media, Reply has announced the
release of Brick Reply, a new manufacturing operations platform (MOM) for Industry 4.0 to make production process flexible and connected. Brick Reply relies on a completely open service-based architecture capable of interfacing with both machinery and sensors and coordinating the production processes within the factory. The solution's single point of control, Brick
such as augmented reality (AR) and IoT. It can
Hub Connector, enables communication
also be configured to fit lean manufacturing
between traditional production processes â&#x20AC;&#x201C;
scenarios based either on â&#x20AC;&#x2DC;work islandsâ&#x20AC;&#x2122; or on
including production, planning and quality
one or more production lines. Factory layouts
In combination with emerging technologies
control â&#x20AC;&#x201C; and today's increasingly intelligent
can be easily modified and integrated with
such as machine learning and Big Data, the
physical devices, such as sensors,
specific product structures, which are defined
features offered by Brick Reply â&#x20AC;&#x201C; which also
machinery, robots and installations. Core
within the ERP management system or directly
comprise production planning, maintenance
functionalities include the real-time collection
in Brick Reply.
management and business intelligence â&#x20AC;&#x201C;
and monitoring of data and comprehensive
Opening the door to interesting manufacturing scenarios
open the door to some highly interesting
analysis using Big Data and in-memory technologies.
Digitising business processes Brick Reply can be used in a number of ways, all with the aim of digitising business
â&#x20AC;&#x153;
The solution's single point of control, Brick Hub Connector, enables communication between traditional production processes â&#x20AC;&#x201C; including production, planning and quality control â&#x20AC;&#x201C; and today's increasingly intelligent physical devices, such as sensors, machinery, robots and installations.â&#x20AC;?
processes in the manufacturing field. Its flexibility and ease of implementation enable production managers to enjoy real freedom in
The Brick Reply platform can be utilised in a
manufacturing scenarios. These include
configuring their manufacturing processes
variety of operating modes, from a fully
predictive data analysis for the purposes of
and specifying both work flows and the nature
Software-as-a-Service or Cloud-based model
preventative maintenance and advanced
and quality of data collected in real time from
to delivery via dedicated client infrastructures
performance analysis, both of which can
production lines.
(on-premises). The solution can also be
make a major impact on production and on
deployed in mixed situations in which some
business.
As it is based on an open platform, Brick Reply
services interacting with field devices reside
can be incorporated both into traditional
on local infrastructures, while other services
contexts and into situations where new
are completely Cloud-based.
technologies and devices are already in use,
20
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
QAD Cloud ERP Cloud ERP Exclusively for Manufacturing Companies
â&#x20AC;&#x153;The all inclusive price of QAD Cloud ERP is lower than the average cost of a traditional licensed on-premise solutionâ&#x20AC;? - Aberdeen Group QAD Sir Stanley Clarke House 7 Ridgeway, Quinton Business Park Birmingham, West Midlands United Kingdom, B32 1AF +44 (0) 121 506 6500 uk_marketing@qad.com www.qad.com
\\\ Manufacturing \\\
Opinion
+78(7*21076.38that push manufacturers towards Industry 4.0 By Stuart Hall, sales director, Epicor Software UK and Ireland.
isruptive technologies and
The revolution is far from surprising. By
to make it easier to collaborate and is
megatrends are shaping the
2020, there will be 30 billion connected
helping to attract the discerning millennials
future of manufacturing. The
devices on earth1. This is leading to the Big
generation, which is anticipated to account
fourth industrial revolutionâ&#x20AC;&#x201D;
Data mountain growing beyond recognition.
for 75%4 of the global workforce in 2025 and
Industry 4.0â&#x20AC;&#x201D;has been
D
Machines communicating with people â&#x20AC;&#x201C; and
will play an important role in manufacturing
gathering momentum in recent years and is set
other machines â&#x20AC;&#x201C; are creating so much data
as it continues to evolve.
to be transformative in 2017. Industry 4.0 is the
that we have generated more in the past two
digitisation of the manufacturing industry and a
years than in the previous 5000 years of
realisation of the potential of the Internet of
human history2.
Megatrend #2 â&#x20AC;&#x201C; The globalisation of future markets
and data science. Done right, Industry 4.0 will
It is now up to manufacturers to unlock this
Companies will expand their operations
enable manufacturers to improve efficiencies
data. The information generated by the
around the globe, with worldwide exports
whilst reducing costs.
increase of connected devices and
expected to triple by 20305. Exports from
machines represents a significant
emerging and developing countries will
opportunity. By determining how to best
quadruple, and regional and bilateral trade
identify, capture and interpret this increased
agreements are likely to further open the
volume of data, it can help organisations
worldâ&#x20AC;&#x2122;s borders. The share of GDP generated
understand their market and customers
by the BRIC countries â&#x20AC;&#x201C; Brazil, Russia, India,
better, as well as gaining market share.
and China â&#x20AC;&#x201C; will grow6. Sub-cluster countries
Things (IoT) combined with artificial intelligence
comprising Mexico, Indonesia, Nigeria and
1-2018 2// 8 05(82//846.4,214563"8&7 207846826870285'834*64'4,2618,56%70*76,7" &+707846'50(21456817,+65/5*$" 5)70214562/817,+65/5*$"826.8*/5#2/ (7*21076.38207856828,5//434568,5-037 +438&4//8.04%78,+26*738468+5&8&78.5 #-346733826.8+5&8&78461702,18&41+ ,-315(703826.83-))/4703 8
1. 2. 3. 4.
22
In todayâ&#x20AC;&#x2122;s fast moving global markets,
Turkey (MINT) and Mexico, Indonesia, South
manufacturers need to respond quickly to
Korea, Turkey (MIST) are in a position to
changing demands and maximise new
outperform the advanced world. Technology
market opportunities. From all indications, we
will continue to be a big enabler of
are in an era of significant convergence,
globalisation. Not only through eCommerce
where information technology, operational
and the opening up of additional markets, but
technology, and global megatrends are on a
also with regards to having enterprise
collision course. This will drive changes in
resource planning (ERP) systems in place to
how we do business and how we interact
support cross-border trading and multi-
with customers and suppliers.
country manufacturing processes.
Megatrend #1 â&#x20AC;&#x201C; Demographic shifts
Megatrend #3 â&#x20AC;&#x201C; Scare resources
We are seeing population growing in some
Thanks to increased energy use and
nations and shrinking in others3, a growing
requirements, weâ&#x20AC;&#x2122;re going to need more
middle class, consumer markets shifting
power. Resources are growing scarcer
from the west to the east and an ageing
despite the focus on climate change and
population with fewer people entering the
sustainability, and there will be continued
manufacturing field. Take heart though as
reliance on fossil fuels. The majority of
the technology we are developing continues
critical raw materials will be likely supplied
The Internet of Everything is the New Economy. September 29, 2015, Cisco http://www.c4isrnet.com/story/military-tech/cyber/2016/01/27/data-growth-internet-things-require-security-cyberattacks-espionage/79351308/ https://ourworldindata.org/world-population-growth/ EY, â&#x20AC;&#x153;Global generations: a global study on work-life challenges across generations,â&#x20AC;? Jan. 2015
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Opinion
\\\ Manufacturing \\\
Industry 4.0, ERP and the transition ahead
to-machine communication, additive
technologies, and using technology
These four global megatrends, when combined
Industry 4.0 challenges the way that
platforms to streamline processes and
with new and converging technologies, will
manufacturing – at its very core a risk averse
improve efficiency to facilitate this shift.
require manufacturers to transform themselves.
sector – functions with centralised and offline
We are quickly entering an era of a new type of
systems that are not inter-connected. We would
customer –a global customer who could be
further predict that their factories will soon evolve
based anywhere in the world rather than in the
to become ‘smart’ with the capability to self-
countries that manufacturers have traditionally
manage issues and internal processes. Crucially,
Manufacturers will feel the challenges of a
traded with. This new customer is more mobile,
manufacturers need to address whether their
decreasing talent pool. There won’t be enough
more aware, and more demanding.
existing ERP environment is ready to support
by China by 20307 and certainly outside the US and Europe. This could potentially be
manufacturing, and robotics.
mitigated by innovative recycling
Megatrend #4 – Knowledge and gender gap
skilled people to perform the jobs of the future8.
their journey towards Industry 4.0.
The available pool of workers will likely come
In addition to the changing demographic of
from developing countries as we see greater
customers, new game-changing business
For manufacturers, growth in an Industry 4.0
percentages of the population earning post-
models will cause continued disruption. Just take
environment will be intrinsically linked with a
secondary degrees in their more developed
a look at what Uber has done to the taxi industry,
business’s ERP system. Certainly, the
counterparts. An ever-increasing mobile
Airbnb to the hotel industry, and Amazon to the
boundaries between production and
workforce will continue to present challenges to
retail sector. The frantic pace of change in every
management must disappear, and ERP and
employers and may lead to a global struggle
industry demands business owners to adopt
manufacturing execution systems (MES) must
for talent. Their wants and needs are very
new ways of thinking and execution.
form an integrated unit if businesses are to
different to those of the generation before.
realise the growth opportunities presented by
Attracting millennials requires enhanced
There is a tremendous opportunity for
this new age of intelligent manufacturing. Taking
mobility, technology that meets their
manufacturers. However, it can only be realised
a critical look at the existing IT environment in
expectations with a sophisticated user
by using emerging information technologies like
your business is the first step towards
experience and having more flexible working
social, mobile, analytics, and Cloud alongside
understanding how ready – or unprepared – you
patterns than ever before.
operational technologies like sensors, machine-
are for Industry 4.0.
5. 6. 7. 8.
Sustainable Development Goals, “UN projects world population to reach 8.5 billion by 2030, driven by growth in developing countries,” July 29, 2015. Economywatch, “The BRIC Countries: Brazil, Russia, India, China,” June 29, 2010. BP, “BP Energy Outlook 2030,” January 2013. https://yougov.co.uk/news/2013/10/11/uk-skills-gap-stem-subject/
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
23
\\\ Manufacturing \\\
Analysis
26-'2,1-046*8.04%46*8)05.-,1456 increase in the UK, but IoT investment must not leave Britain behind K manufacturing contributed to a
Ben Boswell, EMEA director at WWT said: "It's
complex undertaking. Many IoT initiatives rush
1.1% increase in total production
great to see this return to optimism in UK
to deploy technology and fail to pay attention to
between November and
manufacturing, but the level of uncertainty in
the critical underlying IoT infrastructure. This
December 2016, according to
the market means that every effort must be
can lead to a fragmented solution that may not
Office for National Statistics
taken now to make the sector sustainable.
be secure, sustainable or scalable. At worst, an
Strategic application of IoT technologies across
IoT solution is barely more than a gimmick and
the business lines of manufacturers can have a
becomes an added cost burden which fails to
These latest figures come among the highest
significant impact on productivity and cost.
unlock business outcomes.
levels of optimism seen in the sector since
Over in the US, we've seen a global
U figures.[1]
June 2015. Yet as the weaker pound continues to be a double-edged sword for British industry, the manufacturing sector must become a priority area for innovations that will help UK businesses to compete globally, says systems integrator World Wide Technology (WWT). The stated aim of the government's new industrial strategy is to determine priority
“
It's great to see this return to optimism in UK manufacturing, but the level of uncertainty in the market means that every effort must be taken now to make the sector sustainable. Strategic application of IoT technologies across the business lines of manufacturers can have a significant impact on productivity and cost.” - Ben Boswell, World Wide Technology.
areas of investment in science, research and innovation to support the UK's world leading
manufacturer lined up to achieve $1 billion in
"At their best, though, these solutions offer a
sectors. New research suggests that the
annual savings beginning this year. The data-
competitive edge simply through the smart
global manufacturing sector will invest $20.59
driven rigour of the connected factory is helping
analysis of routine processes. With optimism
billion into Internet of Things (IoT) solutions by
them to reduce machine down-time through
high but potential bumps around the corner, the
2021, and that the Asia-Pacific region will see
predictive maintenance and automated repair,
time has never been better for government and
exponential growth in this area.[3] The capacity
for example.”
industry alike to prioritise the innovations that
[2]
will deliver sharply focused and sustainable
of the sensor-based technology to boost productivity and profitability must not be
Boswell continued: "But applying IoT – and
ignored in Britain.
achieving these considerable savings – is a
[1] [2] [3]
24
business outcomes for years to come."
https://www.ons.gov.uk/economy/economicoutputandproductivity/output/bulletins/indexofproduction/dec2016 https://beisgovuk.citizenspace.com/strategy/industrial-strategy/supporting_documents/buildingourindustrialstrategygreenpaper.pdf http://www.researchandmarkets.com/research/xjglwb/iot_in
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Become a Factory of the Future
With more than 40 years of industry knowledge and experience, Epicor provides proven software solutions to help manufacturers grow their business. Epicor can help you: Become
more agile and productive waste and inefficiencies Streamline operations Cut
It takes future-thinking leaders and leading-edge software to become a factory of the future. Epicor will help you get there.
epicor.com/uk | info.uk@epicor.com | T. 01344 468468
Please visit epicor.com/uk/futurefactory/ to download “The Factory of the Future” eBook and discover how disruptive technologies and megatrends will shape manufacturing.
Copyright ©2017 Epicor Software Corporation. All rights reserved. Epicor, the Epicor logo, and grow business not software are registered trademark or trademarks of Epicor Software Corporation in the United States and certain other countries.
\\\ Manufacturing \\\
Event
)14(4346*8the manufacturing supply chain This year’s M3 User Association UK Conference (M3UA UK), held at Best Western Plus Meriden Manor Hotel in Solihull, West Midlands on 1 and 2 March, was again wellattended; exceeding last year’s numbers with a total over 120 people attending over the two days. he event – which focuses on the
Birmingham airport; meaning people can fly in
latest technology developments
and only have a 4 or 5 km drive to the venue.
T
and application examples related to Infor’s M3 ERP solution, together with the complementary solutions
and activities of a number of Infor’s solution
Food & beverage roundtable
partners and associates – featured a packed
This year, M3UA held its first sector SIG
schedule of customer presentations, as well as
(Significant Interest Group) round table
product updates and live demonstrations.
discussion focusing on food & beverage ERP
There was also a Gala Dinner and Charity
and edge application solutions. Even though
Auction on the evening of the first day, which
this was a 30-minute schedule it was clear from
raised nearly £1500 for cancer charities, plus a
an early stage that there is a need for a regular
close-up magician who provided the
focused food & beverage SIG covering
entertainment before dinner was served.
subjects and drivers such as IoT in food & beverage, industry consolidation and its
During his welcome speech, Trevor Howard,
impacts on IT etc. M3UA Conference chairman,
general manager at the M3 User Association,
and CIO of ABP Food Group, Robin Irvine, said:
reminded delegates that M3UA is an
“The short discussion demonstrated that the
independent non-profit user group and so is not
food & beverage sector, regardless of the
tied directly to Infor or other vendors. He added
output product, has very similar operational IT
that the 110-strong membership is made up
strategy challenges, and we can learn much
ERP and supply chain solutions with new
primarily of M3 users, together with 15 solution
from each other.”
systems capable of managing a sophisticated array of services more effectively preparing
vendors, and pointed out that Association membership has grown significantly over the
Irvine and Andrew Dalziel from Infor will be
the company for rapid and consistent growth.
past two years primarily due to the success of
coordinating future quarterly discussions and
Reynolds also wanted to increase confidence
its UK and the Benelux conferences.
face-to-face meetings to drive this SIG agenda
in decision-making abilities by providing
forward. “It’s our vision that the discussion
management teams with fast access to
Howard said the event was popular from
output will not only be informative for the M3UA
relevant, detailed information. Additionally, it
several perspectives – for example, many
food & beverage members but that Infor and its
wanted to implement integrated solutions that
users or prospective users like the opportunity
development strategy can also take
could manage increased demands from both
to talk with other companies about their
advantage,” added Irvine.
internal and external customers and meet
experiences of deploying M3 and
business needs throughout the warehouse,
complementary solutions provided by system
call centre, supply chain and finance
partners and associates. Howard added that visitors also like the varied mix of
departments.
Supply chain optimisation
presentations discussing the latest
One of the many user presentations at the
Calder explained that the benefits of
developments within the M3 suite, together
event looked at how Reynolds Catering
implementing M3 included reduced costs
with user case studies. Additionally, he
Supplies drives continuous solution
associated with recovering incorrect orders
highlighted the fact that they have the
improvement through optimising its supply
and improved customer satisfaction with
opportunity to network with vendors and
chain with Infor M3. Richard Calder, Reynolds’
specific Infor Process Flow Integrator
fellow users alike. Another benefit of the 2017
IT & business systems manager, explained
applications, such as email order confirmation.
event was that the hotel is close to
that the company wanted to replace its legacy
He pointed out that Reynolds could also
26
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Event
\\\ Manufacturing \\\
complete picks faster and with greater accuracy by developing applications to examine picking efficiency and conveyor box fill with the data warehouse and associated reporting. Other benefits included: Improved speed and detail of financial reporting, leading to better credit control and a reduction in the information received by management, which has improved decision making and efficiency; and reduced risk of product waste by being able to reclassify and adjust shelf life at item and lot levels with Inform M3â&#x20AC;&#x2122;s re-inspection time and sales functionality. Calder added that Infor ION will become a key part of Reynoldsâ&#x20AC;&#x2122; business-case justification
number of debtor days; more detailed
5+68 /7.+4//"8 6'508 85'8)05.-,18(262*7(761"8*2%7828)0737612145681+218/55 7.821 56*546*8.7%7/5)(76138&41+468 8
â&#x20AC;&#x153;because if we want new functionality, we wonâ&#x20AC;&#x2122;t have to pay for any modifications or additional integration workâ&#x20AC;?.
Ongoing developments
the way that industry-driven enterprises serve their customers. This new solution is made
John Gledhill, Infor VP of product management,
possible through the purpose-built middleware
gave a presentation that looked at ongoing
Infor ION, and Infor EDI Managed Services
developments within M3 ERP. One of his key
solution, which provides a fast and secure way
messages to users was to move to version 13.4
to manage data. The integration is now
Another user presentation was given by ABP
and get Xi enabled. â&#x20AC;&#x153;It really does deliver
available as a standard service to organisations
Food Groupâ&#x20AC;&#x2122;s CIO, Robin Irvine, who spoke
value,â&#x20AC;? he said. Gledhill explained that since
using the M3 enterprise resource planning
Active monitoring
about the companyâ&#x20AC;&#x2122;s use of 24/7/365 M3 active
2015 there has been a multi-tenant version of
(ERP) system, and serving the fashion, food &
monitoring. Irvine commented that most
M3 running in Inforâ&#x20AC;&#x2122;s labs. â&#x20AC;&#x153;So, at the same time
beverage, distribution and manufacturing
companies put a significant amount of effort and
as developing 13.4 our technology teams have
verticals.
funding into ensuring that their data centres,
been developing multi-tenant Cloud-type
communications links and hardware estates are
technology with M3 sitting on top of it,â&#x20AC;? he said.
The presentation then looked at Infor CRM, with the point being made that the solution enables
available to serve the business. This approach, he said, goes hand in hand with any method of
In terms of whatâ&#x20AC;&#x2122;s next for the solution, Gledhill
users to maximise the impact of every
delivery; be it on-premise, full Cloud or hybrid.
outlined some of the highlights regarding what
interaction â&#x20AC;&#x201C; across the entire customer
â&#x20AC;&#x153;In most cases, all the user actually experiences
Infor has recently introduced and what users
lifecycle â&#x20AC;&#x201C; whether in the office or out in the
is an application window,â&#x20AC;? remarked Irvine, â&#x20AC;&#x153;and
can look forward to in the short term. He
field. Infor CRM is built for business, with
unfortunately this can be the layer which is often
explained that Infor has upgraded its
industry-specific capabilities, deep integration
forgotten about when pulling together an
CloudSuites to Xi, and will introduce an ION
and a high level of flexibility and control in how
application and hardware support and
integration with GT Nexus. He added that after
users can deploy, use, and pay for the solution.
monitoring strategy.â&#x20AC;?
September Infor will have some improved
The solution also benefits from seamless
integration with Infor Supply Chain Execution.
integration with back office systems via Infor
Irvine explained that the ABP Food Group has
ION and modern architecture with an adaptable
completed that monitoring circle by engaging
platform to meet unique company and
with Essist, which is providing 24/7/365 manned monitoring and first-line support for ABPâ&#x20AC;&#x2122;s critical
Premier functionality updates
customer needs.
M3 ERP and edge applications layer. â&#x20AC;&#x153;This
Ole Rasmussen and Raj Gupta of Infor gave a
With this modern engagement solution, users
provides added confidence to our support
presentation looking at a number of key
can manage all aspects of their online
organisation and allows our internal teams to
aspects of M3 functionality and recent
business. They can also create a website that
drive forward the areas that add true value to
developments in these areas â&#x20AC;&#x201C; including Infor
helps them tell their brand story; easily manage
business and product,â&#x20AC;? he said, adding: â&#x20AC;&#x153;I am
EDI, Infor CRM and Infor Rhythm for
content, promotions, and catalogue
happy to highlight the merits of taking
Commerce.
assortments; access applied analytics; and streamline the ordering process with full
advantage of a monitoring solution from Essist who have very quickly become a trusted
Infor has announced that a new solution for EDI
visibility into order history, pending approvals,
extension to our IT support teams.â&#x20AC;?
is now available for Infor M3 clients to simplify
and draft orders.
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
27
\\\ Manufacturing \\\
Analysis
50/.&4.78 8and analytics market to reach $18.3 billion in 2017 lobal revenue in the business
flocked to new modern tools because
streaming data generated by devices,
intelligence (BI) and analytics
they could be used without IT assistance,
sensors and people to make faster
software market is forecast to
the increased need for governance will
decisions. Vendors need to invest in
reach $18.3 billion in 2017, an
serve as the catalyst for renewed IT
similar capabilities to offer buyers a single
increase of 7.3% from 2016,
engagement. Modern BI tools that support
platform that combines real-time events
according to the latest forecast from Gartner,
greater accessibility, agility and analytical
and streaming data with other types of
Inc. By the end of 2020, the market is forecast
insight at the enterprise level will
to grow to $22.8 billion.
dominate new purchases.
G
source data. 6. Interest in Cloud deployments will continue to grow â&#x20AC;&#x201C; Cloud deployments of
2. New innovative and established According to Gartner, modern BI and
vendors will drive the next wave of
BI and analytics platforms have the
analytics continues to expand more rapidly
market disruption â&#x20AC;&#x201C; The emergence of
potential to reduce cost of ownership and
than the overall market, which is offsetting
smart data discovery capabilities,
speed time to deployment. However, data
declines in traditional BI spending. The
machine learning and automation of the
gravity that still tilts to the majority of
modern BI and analytics platform emerged in
entire analytics workflow will drive a new
enterprise data residing on-premises
the past few years to meet new organisational
flurry of buying because of its potential
continues to be a major inhibitor to
requirements for accessibility, agility and
value to reduce time to insights from
adoption. That reticence is abating and
deeper analytical insight, shifting the market
advanced analytics and deliver them to a
Gartner expects the majority of new
from IT-led, system-of-record reporting to
broader set of people across the
licensing buying likely to be for Cloud
business-led, agile analytics including self-
enterprise. While this â&#x20AC;&#x2DC;smartâ&#x20AC;&#x2122; wave is
service.
being driven by new innovative startups,
deployments by 2020. 7. Marketplaces will create new
traditional BI vendors that were slow to
opportunities for organisations to buy
The modern BI and analytics market is
adjust to the current â&#x20AC;&#x2DC;modernâ&#x20AC;&#x2122; wave are
and sell analytic capabilities and speed
expected to decelerate, however, from 63.6%
driving it in some cases.
time to insight â&#x20AC;&#x201D; The availability of an
3. Need for complex datasets drives
active marketplace where buyers and
Gartner believes this reflects data and
investments in data preparation â&#x20AC;&#x201C;
sellers converge to exchange analytic
analytics becoming mainstream. The market
Business users want to analyze a diverse,
applications, aggregated data sources,
is growing in terms of seat expansion, but
often large and more complex
custom visualisations and algorithms is
revenue will be dampened by pricing
combinations of data sources and data
likely to generate increased interest in the
pressure.
models, faster than ever before. The
BI and analytics space and fuel its future
ability to rapidly prepare, clean, enrich
growth.
growth in 2015 to a projected 19% by 2020.
"Purchasing decisions continue to be
and find trusted datasets in a more
influenced heavily by business executives
automated way becomes an important
"Organisations will benefit from the many new
and users who want more agility and the
enabler of expanded use.
and innovative vendors continuing to emerge,
option for small personal and departmental
4. Extensibility and embeddability will be
as well as significant investment in innovation
deployments to prove success," said Rita
key drivers of expanded use and value
from large vendors and venture capital-
Sallam, research vice president at Gartner.
â&#x20AC;&#x201C; Both internal users and customers will
funded start-ups," said Ms. Sallam. "They do,
"Enterprise-friendly buying models have
either use more automated tools or will
however, need to be careful to limit their
become more critical to successful
embed analytics in the applications they
technical debt that can occur when multiple
deployments."
use in their context, or a combination of
stand-alone solutions that demonstrate
both. The ability to embed and extend
business value quickly, turn into production
Gartner believes the rapidly evolving modern
analytics content will be a key enabler of
deployments without adequate attention being
BI and analytics market is being influenced by
more pervasive adoption and value from
paid to design, implementation and support."
the following seven dynamics:
analytics. 5. Support for real-time events and
1. Modern BI at scale will dominate new buying â&#x20AC;&#x201C; While business users initially
28
IT
MANUFACTURING
&LOGISTICS
March 2017
streaming data will expand use â&#x20AC;&#x201C; Organisations will increasingly leverage
www.logisticsit.com
Infor software helped make the world’s largest % machine 15 more efficient. CERN, the European Organisation for Nuclear Research, increased uptime at the Large Hadron Collider, the world’s largest and most complex particle accelerator. That’s progress.
\\\ Manufacturing \\\
Event
!8â&#x20AC;&#x201C; Making the right connection t this yearâ&#x20AC;&#x2122;s M3 User
A
Association UK Conference (M3UA UK), held at the Best Western Plus Meriden Manor Hotel in Solihull on 1 and 2
March, BEC (Systems Integration) Ltd., the UK-based supplier of data capture solutions for supply chain logistics and manufacturing, was the eventâ&#x20AC;&#x2122;s Diamond Sponsor, together with solutions partner Honeywell. This yearâ&#x20AC;&#x2122;s conference exceeded last yearâ&#x20AC;&#x2122;s numbers; with over 120 people attending over the two days. BEC and its solutions partner Honeywell featured prominently in the proceedings during both days, being actively involved with customer case studies and solution discussions, as well as running a dedicated presentation and demonstration suite.
Raleigh Distribution Centre case study One of the case study highlights at the M3UA UK Conference was a presentation given by Steve Wigley, the Raleigh Bicycle Companyâ&#x20AC;&#x2122;s recently retired distribution manager. Wigley explained that in order to move away from largely paper-based processes and to map out a project to automate its entire warehouse,
#5%7 8 +78 7318 7317068 /-38 704.76 26508 517/8468 5/4+-//"8%76-78'5081+43 $720 38 8 3708 335,4214568 !56'7076,7
7'1 8 !826.8413835/-145638)201670 567$&7//8'721-07.8)05(46761/$84681+7 )05,77.46*38.-046*8#51+8.2$3"8#746* 2,14%7/$846%5/%7.8&41+8,-315(708,237 31-.473826.835/-14568.43,-334563"8238&7// 2380-6646*828.7.4,217.8)07376121456826. .7(563102145683-4178 )4,1-07.
Raleigh contacted BEC. BEC proposed a twophase project using its eSmart WMS software
Voice for M&I
underpinned by Honeywell hardware to
During a seminar presentation titled â&#x20AC;&#x2DC;Vocollect
update the goods-in and goods-out sides of
Voice Recognition Solution for Maintenance &
Raleigh's Parts and Accessories business.
Inspection (M&I), John Bradshaw â&#x20AC;&#x201C; business development manager for the Honeywell
Some of the key benefits of the project
Vocollect M&I solution, and works in
include: 99.9% stock accuracy levels, up from
partnership with BEC and Infor â&#x20AC;&#x201C; explained
96%; increase in worker productivity; real-time
that, from a speed and accuracy perspective,
stock control; the creation of flexible pick-
Voice-directed working has for a number of
face; and faster training of new staff and
years proved a highly efficient method for
seasonal workers. Due to the success of the
picking and replenishment in the warehouse
Honeywell and BEC system, Raleigh now
and distribution centre. However, he made the
plans to extend the solution across the rest of
point that an increasing number of companies
include aerospace, truck fleet, automotive,
the business. For example, for cycle picking a
in a range of industrial sectors are now
process control, utilities and rail.
system is currently being written by BEC and
realising Voice can also be used to achieve
this is anticipated to go live by the beginning
similar benefits concerning maintenance &
Bradshaw outlined what he described as three
of April this year.
inspection (M&I) tasks. Relevant sectors
â&#x20AC;&#x2DC;buckets of goodnessâ&#x20AC;&#x2122; concerning the use of
30
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Event
\\\ Manufacturing \\\
Voice for M&I. “The first bucket of goodness
last year who were asking for a true-life
“After all, this is our core focus, and one
concerns the utilisation of Voice to optimise
example of how they could connect external
whereby we have built a solid reputation.
process and workflow steps. The second bucket
systems and hardware directly into the M3
Also, because we are a small, tight-knit
of goodness is ergonomics. Bradshaw
ERP layer to provide added value without
organisation, this gives us a high degree of
highlighted that the engineer in a demonstration
expensive interfacing projects. BEC and
agility and flexibility.”
video he showed during his presentation was
Honeywell accepted the challenge of setting
able to use both the Voice technology and his
up a complete demo suite, providing hands-
Philip Jarrett, director of sales and marketing at
hands to use tools for the task at hand – in this
on demonstration of BEC’s warehouse
BEC, said the M3 User Group event helps to
case, maintenance tasks carried out on an APU
management system, touch screens,
forge a stronger, mutually beneficial relationship
(auxiliary power unit) for aircraft. The user in the
scanning hardware and the Honeywell
between BEC, Infor and M3 end users. He
video also benefitted from the ability to capture
Vocollect Voice solution.
added that this type of forum gives BEC even greater credibility within the Infor community.
M&I information on his iPad and see that information on the screen before he submitted
The membership received a very clear insight
the data back to the host system.
into Voice-automated WMS systems, which was gratefully received by many who
The third bucket of goodness concerned
attended the repeating sessions throughout
compliance and information. Bradshaw
the two-day event.”
Networking benefits Trevor Howard, general manager at the M3
explained that many organisations have to
User Association, highlighted the value that
conform to various regulatory and standard
the M3UA recognises in M3 partners and
requirements, and this information can be captured and used in real-time.
Close links
independent associates such as Honeywell and BEC. He said many users or prospective
Tony Hampson, managing director at BEC,
users like the opportunity to talk with other
said the M3 User Group event ensures BEC
companies at the event about their
keeps close links with M3 end-users. “For
experiences of deploying M3 and
many years, we have been one of the most
complementary solutions provided by system
M3UA Conference chairman, Robin Irvine,
popular go-to companies for data capture
partners.
commented: “We listened to the membership
functionality built into M3,” he remarked.
True-life example
BEC eSmart® Voice WMS Enabling Complete Door-to-Door Voice Solutions 9 Increase worker productivity by up to 35% 9 Reduction in picking errors by up to 50% 9 ROI typically within 6-12 months 9 Built with voice technology at its core, not as an add-on 9 Based on our proven eSmart Warehouse platform 9 Real-time dashboard reporting & status updates 9 Seamless integration into any host ERP system 9 %HQH¿WV WKH IXOO FRPSOHPHQW RI ZDUHKRXVLQJ SURFHVVHV
VOICE WMS
Call BEC today and speak to the experts: March 2017 www.logisticsit.com +44 (0)1254 688 088 or visit www.becsi.co.uk
IT
MANUFACTURING
&LOGISTICS
31
\\\ Manufacturing \\\
Opinion
05(8.5, 8158&207+5-378to customer with Microsoft’s Azure IoT Suite David Titterington, account manager, Prodware, discusses the IoT supply chain.
he Internet of Things (IoT) is often
T
frequency identification) technologies to
thought of as electronics or
transmit data such as fleet location in real-
wearables – the kind of
time. Detailed visibility of an individual item
technologies that are used and
can be provided directly from the
customised by an individual
manufacturer to the retailer. Not only can
consumer. However, there is a much bigger
distributors automate shipping and delivery
story – the IOT supply chain.
by exactly predicting arrival time; they can monitor vital details like temperature/humidity
The IoT supply chain growth
control, which may impact the product intransit. IoT technologies can also bring in
Industry research by Gartner highlights that
other data like weather conditions, traffic
the Internet of Things (IoT) is going to impact
conditions with possible re-routes, and driver-
businesses with its exponential
specific data (i.e., driving pattern, rest times,
implementation reaching 26 billion devices by
average speed).
2020, “…IoT product and service suppliers will generate incremental revenue exceeding
Combining real-time sensory data with
US$300 billion, mostly in services, in 2020. It
environmental data can provide superior
will result in $1.9 trillion in global economic
intelligence to all supply chain stakeholders.
value-add through sales into diverse end
This allows decisions to be made that drive
The benefits stretch beyond just operational
markets.” This increase will “significantly alter
overall productivity allowing operatives to be
efficiency, by allowing devices to ‘talk to each
how the supply chain operates.” As devices
proactive. For example, information about a
other’ in the right way, IoT can help supply
are embedded with technology that can
traffic jam before the trip starts has much
chain professionals:
communicate and interact with other devices,
higher value than getting the alert when the
supply chains will be impacted. Specifically,
fleet is already stuck in the traffic.
how supply chain professionals access
Applications such as Prodware’s Mobility suite
information.
can feed information directly from the
people in and out of cities.
•
updates allowing proactive monitoring •
business management system to remote
Increasing visibility throughout the supply chain Logistic systems are made up of many
Reduce product losses with real-time Reduce fuel costs with optimised fleet routes by monitoring traffic conditions in
workers in the field on nearly any device.
real time and re-routing fleet •
Manage warehouse stock by automatically monitoring inventory levels
IoT supply chain benefits
to reduce out-of-stock situations •
Establish customer insight with
moving parts, products can be handled and
Steve Fox, senior director of Microsoft’s
transported between manufacturing,
worldwide Azure Apps and IoT practice has
embedded sensors which can provide
suppliers, the distribution centre, retailer, and
highlighted how IoT has evolved from a trend
visibility into customer behaviour and
finally to the end customer (and sometimes
to facilitating real business processes to solve
back again). With so many transaction points
problems. At a conference we attended, we
within the supply chain, operators need a
saw real life case studies from how
States deadhead miles (non-revenue
responsive and informed supply network.
Microsoft’s Azure IoT Suite has benefitted an
miles) can account for up to 10% of total
oil and gas business with increased
fleet miles, according to the EPA, and
How does IoT facilitate the agile supply chain?
product usage •
operational intelligence, to how IoT is powering ‘smart cities’ with rich reporting
28% for private fleet •
32
IT
MANUFACTURING
&LOGISTICS
March 2017
pressure, humidity and the movement of
Monitor equipment and carry out preventative maintenance
which monitors temperature, pollution, air IoT is further enabled by GPS and RFID (radio
Increase fleet efficiencies – in the United
•
Monitor temperature stability to reduce
www.logisticsit.com
Opinion
\\\ Manufacturing \\\
waste; many products need to maintain a
business process software, to successfully
As the largest Dynamics partner in EMEA, our
certain temperature during transit – the
combine IoT data with business transactional
focus is to ensure that Microsoft Dynamics is
Food and Agriculture Organisation of the
data in one shared database.
delivered and used by our customers to help them achieve their business goals. Since
United Nations, highlights that one third of food perishes in transit every year
ERP and supply chain management have
being founded in 1989, Prodware has
Identify inefficiencies – For example, a
been partnered for quite some time. IoT
developed, deployed, integrated and hosted
container may land at a warehouse but
technology enhances ERP and CRM
IT solutions for businesses. A leader in the
not be unloaded until several hours later.
solutions such as Microsoft Dynamics NAV
EMEA region, Prodware has 1275 employees
With IoT, operation directors can establish
and Microsoft Dynamics 365 by intelligently
who help 19,000 clients, with Prodware offices
when a container has been received and
connecting people, processes and data via
in 15 countries.
the time lag between arrival and inputting
devices and sensors. This deeper
into the system, to set KPIs and correct
intelligence can come to life in many
Working for over 25 years in ERP sales and
inefficiencies
different ways when it comes to supply chain
account management within the distribution
data and intelligence – from automation of
and supply chain industry, I have gained a
Deeper intelligence into supply and demand
the manufacturing process to improved
wealth of knowledge which helps me
will not only benefit manufacturers,
visibility and best practice within the
understand and anticipate the sector
distributors, and retailers, but also consumers,
warehouse. Connected devices enable
challenges and make sure the business
as their demands can be more thoroughly
organisations to work smarter, plan better
management solutions implemented meet
understood with a further level of intelligence.
and foster more intelligent decision making
these through qualified advice. I help both
processes.
SMB and Enterprise customers ensure they
•
Bringing it all together – IoT and the supply chain
are competitively placed in their market by No matter what size company you are, it is
using the best technology and processes. To
very important to find a partner that can
find out how your business can benefit from
The real value of the IoT for businesses is in
address your needs and can be by your side
integrated technologies contact me at
connecting the infrastructure to broader
throughout all stages of your change project.
Prodware.
A Microsoft Gold Partner, specialising in ERP & CRM M business management g solutions for manufacturing & distribution
Based on Microsoft Dynamics NAV & Microsoft Dynamics 365
Building Systems of Intelligence
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
33
\\\ Manufacturing \\\
Opinion
+46 46*82#5-18 8A guide for mid-sized organisations By Andy Brown, SCS divisional leader, Access Group.
large enterprises took years to implement
comprehensive analysis and reporting
and seldom delivered on their promises.
capability, and ideally will provide you with dashboards to enable you to manage
Today, things are different. A modular
information from different sources via a
approach to ERP has brought flexibility and
single interface. The quality of this
agility to mid-market organisations, putting
reporting, however, is of course dependent
them in a stronger position to compete
on the data that goes into it.
against larger competitors. If you’re a smaller company, it’s now possible to find a
If you want real-time information about
scalable solution that can accommodate
what’s happening on the shop floor, make
your growth as a business. So if you’re
sure that your ERP system has a robust
considering moving to an ERP system, here
system of capturing and managing data. It
are a few points to consider.
should be able to give you live information about your machines, your workforce and
I
f you are running a business in the manufacturing sector, you’ll be facing a whole raft of challenges. The cost of
your production rate so that you can identify
Will it work with the systems I already have?
materials, always crucial, must be even more tightly scrutinised in the light of a
any bottlenecks and address them quickly. [subhead] Can I access it from anywhere?
Every element of your ERP solution should
A cloud-based ERP solution will allow you to
weakened pound; your sales forecasts need
be right for you. There are many advantages
access your information from anywhere, at
to be managed with care in a volatile
in dealing with a single software vendor;
any time. This may be via a mobile device or
economy, and the balance of inventory,
most importantly there is just “one throat to
a web browser, or simply through an
production rate and orders still needs to be
choke” when it comes to accountability – if
interface that connects remotely to your
perfectly tuned.
something goes wrong, then you know
application. If you’re buying single modules,
whose job it is to fix it. That shouldn’t mean,
consider how you wish to be able to access
The chances are that you’ll already be using
however, that you have
some software products to help you,
to throw out everything
whether that’s accounting software, a stock
and start again. A good
management system, a CRM application or
ERP vendor will offer
a production planning tool. If you’re a small
you individual high-
or medium sized business, however, you
quality modules that will
may not have yet taken the step of buying
connect easily with
an Enterprise Resource Planning (ERP)
your existing
system.
applications. For
those and make sure
“
Ultimately, an ERP solution should offer you the individual solutions you need, bound together to produce a whole that is far greater than the sum of its parts.”
that your chosen solution can match your requirements for each. Make sure you are clear about the difference between cloud and SaaS. The chances are you’ll want to be able to
example, you should be able to link your
access your ERP application from anywhere,
It’s important to note however, that ERP has
new order management module with your
at any time but this doesn’t mean that you
changed immeasurably in the past decade
existing CRM, or your accounting software
have to pay for it via a monthly subscription,
and become far more relevant to mid-market
with your HR application. It shouldn’t be
or that you need to access it via a web
companies. Initially developed to bring
necessary to take the leap to a full ERP
browser. A traditional “on premise” system
together all the key functions in a business,
solution in one go.
may still be hosted elsewhere and accessed
from HR and finance to planning and
remotely without being fully web-enabled. If
production, these gained a bad reputation
Can I get the information I need, quickly?
you do choose a web-enabled system, check
when gargantuan projects installed across
Any ERP solution you choose should have a
that it doesn’t come at the expense of speed.
34
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
\\\ Manufacturing \\\
Opinion
()05%7832/7387''4,476,$8by leveraging the data in your ERP By Michiel Schipperus, CEO, Sana Commerce. also available in your online sales platform. This allows you to give your clients full access to all
Real-time orders and automated order processing
their detailsâ&#x20AC;&#x201D;from order history, invoices and shipping addresses to personalised product
One of the major advantages of an integrated
catalogues. Because everything is
e-commerce solution is that orders placed
interconnected, the moment a detail is
online are immediately processed by the ERP,
changed, added or updated in your ERP, it is
without the delay of a scheduled
also updated or added to your web storeâ&#x20AC;&#x201D;and
synchronisation interval. The results? No pricing
vice versa.
mistakes, inventory availability issues, or forgotten charges or costs. Because orders canâ&#x20AC;&#x2122;t get lost during a complex synchronisation
4,+47/8 ,+4))70-3 8 2628+238+7/)7. 3,507385'8(26-'2,1-046*8#-34673373 /2-6,+84617*0217.856/467832/738)/21'50(3 158*072183-,,733
processes, integration offers a drastic reduction
Freedom for your clients and your sales team
in errors that need to be fixed manually.
Why keep your specialists busy processing regular orders and answering standard
Bill of materials
questions about stock status, invoicing and n an increasingly competitive market, online
pricing? Making this information accessible for
Manufacturing companies know all about the
sales platforms are no longer a choice:
customers doesnâ&#x20AC;&#x2122;t only empower clients â&#x20AC;&#x201D; it
complexity of composite product structures.
theyâ&#x20AC;&#x2122;re a necessity. It goes without saying
empowers employees as well, by giving them
With an integrated online sales platform,
that a good web store will greatly enhance
more time to focus on specialist tasks like
intricate BOM or kitting/assembly products can
the customer experience with added
bespoke orders and technical support.
easily be broken down into their respective
I
convenience, access and transparency. But a
parts, allowing clients to order individual parts
good web store should also be powerful
and have them listed as separate line items on
enough to enhance the performance of your
the invoice.
sales team.
Integrated e-commerce for the manufacturing industry
It all starts with your ERPâ&#x20AC;&#x201D;the heart of your
While itâ&#x20AC;&#x2122;s true that many manufacturing
business. As your single source of truth, your
businesses are already working online in one
ERP stores all your most important business
fashion or anotherâ&#x20AC;&#x201D;whether in the form of an
Manufacturing businesses also deal with
data and logic regarding products, inventory
online product catalogue or a simple website
many elaborate shipping variables that make
and clients. An integrated web store works
with company and contact informationâ&#x20AC;&#x201D;the
calculating shipping costs a feat. How many products fit in a box? How many boxes fit on
seamlessly with your ERP and leverages your
nature of orders tends to be so complex that
detailed product data and customer
many of these companies do not yet offer
information, translating to increased efficiency,
full online service. There are just too many
streamlined process and more sales.
factors.
Real-time shipping calculations
An integrated solution solves this issue,
Give your clients the gift of access
because it leverages the data and business logic stored in your ERP to ensure that your online sales channel
Integrating your web store with your ERP
aligns with your existing commercial
means that the data and logic in your ERP is
processes.
36
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Opinion
\\\ Manufacturing \\\
VAT, currencies and units of measurement
it was time for an online sales solution. Integrated e-commerce was the answer,
Working with VAT, different units of
Mike Vermeer, commercial analyst at Pelican
measurement and multiple currencies is
Rouge explains. “Sana’s real-time integration
rarely simple, especially when you’re doing
with Dynamics AX made sure that the
business across borders. Luckily, your ERP
complex pricing structures and custom
system is equipped to make these
customer data were seamlessly integrated
calculations, and when your web store is
into the web store.”
integrated with your ERP, it also has the a pallet? How heavy is the shipment? What
same functionality.
Thanks to Sana Commerce, Pelican Rouge has seen an increase in both efficiency and
kind of transport is required?
order value. For Pelican Rouge, the benefits Where a typical interfaced website will have trouble processing so many complex
Future-proofing your business
of integrated e-commerce are clear. “One system has to be leading in your e-
shipping variables, an ERP-integrated
Sana has helped scores of manufacturing
commerce journey,” Vermeer concludes,
platform allows your ERP to answer those
businesses launch integrated online sales
“your ERP.”
questions while your customer goes through
platforms to great success. Pelican Rouge,
the order process online. That means your
for example, was contacting 40,000
clients will automatically know exactly how
customers by phone every month and was
their order will be shipped, when it will arrive
only able to place orders during business
and what it will cost—all without having to
hours—not very convenient for a leading
involve a sales rep.
international coffee manufacturer. They knew
Integraate your web store annd provide your customers with 24/7 acccess to:
TRANSPORTATION MANAGEMENT
Success story
Connecting worlds -
logistics company Militzer & MĂźnch counts on TimoCom TimoCom, the European transport platform, is known for more than just efficiently combining freight and vehicle space; it also simplifies innovative networks and digital operations. Militzer & MĂźnch, an international logistics service provider, makes use of these benefits.
L
ogistics service provider Militzer & MĂźnch has been working together with TimoCom for over ten years. "With TimoCom, we have a trustworthy partner at our side to help us with our daily work in road transport,â&#x20AC;? said Tom Rosman, CEO of M&M Militzer & MĂźnch GmbH. For example, the companyâ&#x20AC;&#x2122;s own transport management system was recently connected with the transport platform thanks to the TimoCom TC Connect interface, so that bids are now automatically transferred to the freight exchange. Rosman continued: "Even in the short time after we integrated our dispatch software, we have noticed it does more than save us time, it also simplifies our work processes. Another optimisation is the up and download function for documents on the transport platform. We
encourage all our partners to upload the documents used the most, so that we always have them when we need them. This saves us quite a few work steps, and paves the way for a more digital, and especially paperless work process. Every single one of our locations practises conscientious use of resources."
Networks beyond borders The logistics service provider, with headquarters in St. Gallen, has approximately 2000 employees in around 100 companyowned locations across 30 countries. In addition to its own locations, the large Militzer & MĂźnch network also features its preferred partners, which the company uses when assigning jobs. It is a place where a lot of languages and cultures meet. To bring them
all together, TimoCom created a closed user group exclusively for the company; assigning jobs and exchanging information is now managed without an issue. It is a simple principle: group members enter their offers, which at first are only available to Militzer & MĂźnch locations. Once a set period of time has passed, these offers also become visible for the preferred partners' network. Militzer & MĂźnch can thus create its own international company network on the TimoCom platform, connecting worlds.
TimoCom at a glance 3(1 1(7 1)2 7'5-7 40-#4067 ( 73/ 457 7+1(*45!7/*6+34.3/35$73572,6 -6 6.1*(652745-7+1556+231571) 4**.3+42315/7)1072,672045/*102735-'/20!%
572,67 3(1 1(7*.42)10( 7'*7217,4.)74 (3..3157352605423154.7)063$,2745-7 6,3+.6 1))60/74067652606-7-43.!%7 ,60674067(106 2,457 &&&7 603)36-7+1(*4536/73572,6 .1$3/23+/7562#10 %7
M&M Militzer & MĂźnch ,67" "7"3.32 607 7" 5+,7$01'* 6(*.1!/7401'5-7 &&&76(*.1!66/7427 && .1+42315/7357401'5-7 &7+1'52036/% 20426$3+7*402560/,3*/7357(45! 4--323154.7+1'52036/76 *45-72,67+.1/6 5327562#10 %7"3.32 607 7" 5+,71))60/ $.1 4.7430745-7/,3**35$7/60 3+6/74/7#6.. 4/7014-745-7043.7.6-735.45-7204))3+ 7454./17*01 6+27.1$3/23+/7)1071572,67 4/2 6/274 3/7357 '04/34745-7 102,7 )03+4% ,67+1(*45!73/74+23 67#32,747+.1/6 532 562#10 71)7.1+42315/7357 4/26057 '01*6 2,67 1((15#64.2,71)7 5-6*65-652 2426/ 745-73572,67"3--.6745-7 407 4/2 4/7#6..74/73572,67"4$,06 7+1'52036/%7 ,6 +1(*45! 7)1'5-6-7357 & 7,4/732/ ,64- '40260/7357 2%7 4..657 #32 60.45- %
38
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Success story
TRANSPORTATION MANAGEMENT
TimoCom's transport platform helps to reduce CO2 emissions imoCom, the European transport platform, renders a valuable contribution to environmental protection with its many applications and optimises vehicle capacity utilisation. The Italian company GreenRouter recently investigated the impact of logistics software on CO2 emissions and economic efficiency, showing results which could lead to a future trend.
T
The Italian start-up company GreenRouter uses the tool with the same name to measure and analyse the CO2 emissions of the supply chain of individual logistics companies. The case study shows a reduction of CO2e emissions of 23% (carbon dioxide and equivalent exhaust fumes) per driven kilometre in the first two years using the TimoCom transport platform compared with the four years without the platform.
The study commissioned by TimoCom's customer Ernesto Rampinini srl, an Italian transport and logistics company, evaluates the use of natural resources in relation to the degree of utilisation of the lorries and the kilometres driven. In order to obtain valid results, two different periods were taken into consideration: the years between 1999 and 2003, in which the company did not use the IT provider's applications yet, and from 2004 onwards, using TimoCom's transport platform.
Simultaneously, the vehicle utilisation rate increased by 30%, which not only confirms the efficiency of TimoCom products, but also means a 15% profit increase for customers through the avoidance of empty runs. Considering that TimoCom is available with a flat rate and vehicles can be managed from several workplaces, it can be concluded that environmental friendly technologies do not have to be expensive per se nor reduce profit; on the contrary.
In addition to the classic function of the freight and vehicle exchange to avoid environmental pollution and costly empty runs, other applications in TimoCom's portfolio are part of the tools that can already be used to help to preserve the environment. One is the new â&#x20AC;&#x2DC;Documentsâ&#x20AC;&#x2122; feature within the company profile. By uploading the frequently required documents, necessary to carry out transports, the dispatcher can save valuable time. In addition, the digitalisation of documents reduces paper consumption, thus saving precious resources. TimoCom Messenger is also integrated in the transport platform. With it, users can chat individually with potential business partners or send binding quotes. Since several conversations take place simultaneously, there is the possibility of closing a transport contract within a shorter period of time.
Perfect for production peaks. When you find reliable transport companies for your transport orders quickly. You too should test Europe's largest transport platform now for up to 4 weeks for free.
Customers, whom we have convinced:
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
39
TRANSPORTATION MANAGEMENT
Success story
Henry Schein Animal Health targets efficient and safe driving with Ctrack vehicle tracking system
H
enry Schein Animal Health UK, a national distributor of veterinary supplies, has teamed up with Ctrack, an Inseego company, to develop and implement an advanced telematics solution for its UK van fleet. Web-based tracking system Ctrack Online will be used across more than 100 delivery vehicles that operate nationwide to improve road safety, reduce fuel consumption and enhance transport planning. Ctrack Online – combined with Driver ID, invehicle driver behaviour feedback and performance monitoring – will replace a legacy telematics system. The vehicle tracking solution will be used by Henry Schein as a planning tool for delivery schedules, so new customer orders can be incorporated in the most efficient manner possible. This will enable the company to optimise available resources, while keeping mileage to a minimum. In addition, Geo Zones will be placed around each customer location to create waypoints that trigger email alerts when a van arrives to confirm successful order completion.
Feedback Meanwhile, a driver performance indicator – using a green, yellow or red band for each driving exception with an overall score calculated for a simple ranking system – will allow Henry Schein to quickly and easily track and give feedback on employee performance. With each van fitted with a Driver ID in-vehicle reader, the company will be able to separate driver and vehicle data to better understand individual standards and identify areas of improvement. As a result, Henry Schein is planning to use the information to underpin an incentive scheme that rewards best practice in terms of safe and green driving.
40
IT
MANUFACTURING
&LOGISTICS
March 2017
have been using vehicle tracking for some Henry Schein will also take advantage of time, Ctrack Online offers higher levels of Ctrack Online's Live Productivity Dashboard usability and reporting capabilities that will and Executive Dashboard to view and ensure we can effectively monitor, measure understand daily activity, as well as gain and improve added operational insight performance. Our aim and business is to continue providing intelligence. The Live Ctrack Online offers a the highest levels of Productivity Dashboard proven means of gaining added service to our provides a real-time, visibility and control over a fleet customers, while colour-coded graphical to achieve real performance minimising representation of activity environmental impact during the previous 24 improvements.” hours in a single display, – John Wisdom, Ctrack. and protecting our staff and other road users." while the Executive Dashboard offers a John Wisdom, European managing director detailed overview with drill down of Ctrack, said: "Ctrack Online offers a functionality to monitor key performance proven means of gaining added visibility metrics and trends. and control over a fleet to achieve real performance improvements. As a result, an Higher levels of usability increasing number of businesses, such as Henry Schein Animal Health, are choosing and reporting capabilities our vehicle tracking system to better Rob Morris, vice president of operations at manage their vehicle operations to improve Henry Schein UK and Western Europe, efficiency, enhance road safety, increase commented: "We are committed to having utilisation and boost customer service." an efficient and safe delivery fleet. While we
“
www.logisticsit.com
Success story
TRANSPORTATION MANAGEMENT
ESSential BI software improves efficiency and profitability for logistics businesses
E
nterprise Software, the IT and management information provider for the logistics industry, has used its ESSential BI tool to help Canute Logistics to improve its profitability by more efficient operation. Sally Gilder of Enterprise Software said: "ESSential BI is a management information tool which has been integrated into our TMS solution. It provides business intelligence around planning orders, building loads and route planning which allows logistics companies to plan their operations and analyse performance much more effectively and quickly." Developed following six months of detailed evaluation, the tool can identify issues such as empty running and inefficient load planning, and provide the data to enable the logistics operator to improve efficiency, so making savings and improving profitability. "ESSential BI has been a real game changer as it is hugely important for us to be able to guarantee consistency in operation for our customers,” said Alan Ringrose of Canute Logistics. "We have been using the system for the past 12 months and it has produced great results for us, improving performance across the board." Canute Logistics, part of the Canute Group, operates from 14 depots across the UK and has found ESSential BI has not just improved driver and depot efficiency generally, but has delivered major savings in terms of management time.
generating operational and KPI reports, providing flexible and dynamic information which enables us to react quickly. It saves a huge amount of management time – and is much more effective and accessible than creating and populating spreadsheets to create management information.” Canute has even used ESSential BI to help them identify the best strategic locations for their operations, ensuring optimum accessibility and efficiency. Using the tool is also proving vital when it comes to tendering for and winning new business.
Making continuous improvement a reality
"In a recent pitch for new business having this tool was vital as the customer wanted to be able to access a shared dashboard with KPI and management information,” said Ringrose. “If we hadn't been able to offer this via ESSential BI we may not have been able to meet the requirements of the Tender.”
"The tool provides real-time information to enable us to make continuous improvement a reality,” added Ringrose. “It is great for
Logistics is a hugely competitive industry. Having instant and easy access to real-time management information which can also be
www.logisticsit.com
shared with customers, to confirm a service level agreement is being met for example, is no longer a luxury but more a necessity.
Improved operational planning "ESSential BI really opens up people's eyes to the potential of data for the effective management of their business", said Gilder. "It can be used in various ways by all departments of a business; providing increased efficiency in operational planning, as a communication tool to share information with customers, and even as a strategic planning tool to pinpoint the optimum location of depots – as Canute have demonstrated. Information is power, and providing data via ESSential BI empowers our customers to make the right decisions for their business, ensuring maximum efficiency and profitability.”
IT
MANUFACTURING
March 2017
&LOGISTICS
41
Warehouse Management
I
Insight
Robotics poised to answer food retail dilemma As more young entrants to the job market display a reluctance to take work in warehouses, recruiting skilled employees will become increasingly difficult for food retailers. Collaborative robotics is set to answer this challenge, and the groundwork is already being laid. ! " " " " ! ! !" ! ! " " ! " !" " " " ! ! " ! ! " " !" !" " " " ! " ! ! ! " " " ! "
I
n todayâ&#x20AC;&#x2122;s food retail market, consumer expectations are at an all-time high. Online shopping habits not only fuel the expansion of distribution centres (DCs), but create exciting opportunities to develop new business models to meet demand. In a recent report by the McKinsey Global Institute, it assessed the impact of automation on the workplace and analysed how technology could potentially take over the â&#x20AC;&#x2DC;predictableâ&#x20AC;&#x2122; activities carried out by people. One of the factors it identified as influencing the pace of automation was â&#x20AC;&#x2DC;labour market dynamics,â&#x20AC;&#x2122; with respect to the â&#x20AC;&#x2DC;supply, demand, and costs of human labour as an alternative to automation1.â&#x20AC;&#x2122;
significant.â&#x20AC;&#x2122; It also suggests that â&#x20AC;&#x2DC;automation is needed to boost global productivity and raise GDP,â&#x20AC;&#x2122; which is a hard claim to ignore. Indeed, by automating any number of processes within a DC, it is already possible to increase operational efficiencies, improve ergonomics, reduce picking errors and shorten lead times. Such market trends have already been analysed by Vanderlandeâ&#x20AC;&#x2122;s director food retail, Remko van Gils: â&#x20AC;&#x153;I believe weâ&#x20AC;&#x2122;re going to witness the automation of all DC processes. Finding alternatives to the dwindling workforce is going to set unique challenges for our customers. â&#x20AC;&#x153;For example, in the next five to ten years, we will see a decline in the volume of people willing to drive trucks â&#x20AC;&#x201C; a key part of the supply chain. This means being proactive and exploring such advanced technology as driverless trucks. However, we can already look to automation within the DC itself.â&#x20AC;?
Collaborative robotics The report highlights the potential for automation at a geographic level. With this in mind, McKinsey detects that â&#x20AC;&#x2DC;the technical automation potential of the global economy is
42
IT
MANUFACTURING
&LOGISTICS
March 2017
For many in the industry, robotics may hold the key to overcoming these challenges. A recent report in The Wall Street Journal by
Robbie Whelan2 highlighted the potential impact of robotics on the US food retail market. In the majority of cases, automation and robotics were the pivotal factor in driving down labour, time and footprint costs. However, according to Whelan, only 8% of DCs owned by the largest North American grocers are partially or fully automated. Over the coming years, a technological paradigm shift is expected as rising labour costs â&#x20AC;&#x201C; coupled with a shrinking workforce â&#x20AC;&#x201C; begin to take hold. This will rapidly create the need for food retailers across the world to start robotising the process steps in their supply chain. Whelan argues that attitudes are already changing, and as competition intensifies, the reluctance to invest in automation may give way to a renewed demand for innovation. Van Gils explains: â&#x20AC;&#x153;We already have proven technology, and it is possible to robotise a significant portion of the supply chain with our automated case picking (ACP) solution. This works by automatically (de)palletising groups of products. Not only does the technology exist, but it will become increasingly prominent.â&#x20AC;?
www.logisticsit.com
Warehouse Management
Gradual integration As attitudes continue to shift, Van Gils adds that the baton will be passed to robotic technology in a gradual way: “Our long-term vision is that food retailers might not need any workers in a DC where collaborative robots are installed. However, this will take time, and DC processes change slowly. In the next five years, it is easy to imagine that the volume of people per workplace will decrease in tandem with the scarcity of labour.” Initially, adding a robot to a manual workplace will not fully remove the need for manual labour. Existing robots are not able to perform all human tasks, but in time, they will advance and take on more work, enabling human operators to support multiple robots. One of the main drivers will remain the availability of people and the requirement to fulfil day-to-day deliveries. As technology continues to advance, the 1. 2.
opportunity exists to fine-tune the approach to robotics, process by process, product group by product group. It is most likely that incremental investments in collaborative robots will come first by installing a low number of robotic units. For example, to perform order picking. One of the unique advantages to food retailers of investing in collaborative robots is their adaptability. As algorithms improve, it is predicted that robots will gradually ‘learn’ more, increase their capabilities and assume the full function of a person within a warehouse. With the heightened need for automation, demand for new solutions will develop rapidly. Growing market acceptance will subsequently drive volume growth, which allows new technology to become more price competitive.
I
Insight
transition to robotised logistics, while existing warehouse operations continue undisturbed. In addition, collaborative robots can also be retro-fitted on to manual work spaces. In this context, today's robots can assume certain tasks while ensuring that manual operations can be resumed at any time. With this approach, it even becomes possible to build robotised, individual item picking solutions.
Exciting opportunities
“Robotics is going to be a central topic over the next few years, and food retailers should see this as an exciting opportunity,” concludes Van Gils. “The advantage of the ideas we’re developing is that with ACP we’re already able to robotise the core processes connected to product flows. Next to that, we have started our Smart Item Robotics platform to develop collaborative robotics solutions and hope retailers will want to take the next step with us.”
As today’s robots learn to handle more processes and product types, smart integration is crucial. This also enables the seamless
Vanderlande will be exhibiting solutions from the Smart Item Robotics platform at ProMat 2017 (3 to 6 April) in Chicago.
‘A Future That Works: Automation, Employment and Productivity’ – McKinsey & Company ‘Fully Autonomous Robots: The Warehouse Workers of the Near Future’ – Robbie Whelan (The Wall Street Journal)
Reliable partner for value-added logistic process automation
Adapt to a rapidly changing market with flexible and scalable solutions > Is the pressure on your warehouse increasing exponentially with the intense growth of e-commerce? > Do the high number of stock items and short lead times compel you to take action? > Need to optimize the flexibility of your processes? Visit us during Logimat 2017, Stuttgart Germany from 14 to 16 March and experience how together we can continuously improve your operations. Learn how automating your DC makes life easier and faster! > vanderlande.com
2017 Meet us at stand no. 1J21
Warehouse Management
I
Product news
Peli BioThermal Crēdo Cargo now available worldwide
P
eli BioThermal’s advanced new pallet shipper system, Crēdo Cargo, is now available to buy and rent for the first time with the highly engineered, passive temperaturecontrolled bulk shipper offering high performance and robust reliability for the global transportation of pharmaceutical payloads. Following an intensive design, testing and qualification process the pallet accepting bulk shipper is in full production. The production version was unveiled at the 16th Annual Temperature Controlled Logistics, Europe event, held at London’s ExCel exhibition centre recently. Peli BioThermal reports that Crēdo Cargo provides many unique design features within the temperature controlled packaging sector including utilising PCM (phase change material) coolants incorporating innovative slot-in system mechanism designed for rapid loading and unloading, and has a duration in excess of five days. The reusable system, designed specifically to accept a full ISO pallet, is helping to revolutionise the temperature-controlled bulk shipper market.
controlled bulk shipper, which he believes will transform and change cold chain bulk shipments for the pharmaceutical manufacturing and life sciences industries. He added that the Crēdo Cargo is a pallet accepting shipper, “so it’s load and go of the payload from a client’s temperature controlled warehouse into the protection of the Crēdo Cargo and safe transit on to the final destination”.
Extensive research and development The product is the result of intensive and extensive research and development collectively carried out by Peli BioThermal’s New Product Development team. The development process has been documented via a diary of innovation video available soon on the Peli BioThermal website. According to Peli BioThermal, the Crēdo Cargo is a robust, reliable, high performance pallet accepting system provides a tough external wall construction designed to absorb and deflect impacts and is purposefully designed for four-way pallet jack and forklift handling.
announce the production of the new Crēdo Cargo bulk shippers – this product is a real game changer in the industry. Our industry renowned qualification and testing process is second to none so customers can have the confidence in this product that possesses an easy to use coolant loading system and is flat-pack, modular and stackable.” The new bulk shipper, utilising PCM coolants coupled with the unique slot-in components, ensures high performance and consistent temperature stability in excess of 120 hours. Peli BioThermal believes its robust design makes it ideal for the rigours of global logistics applications. With a volume of 1856L and covering temperature ranges +2C to +8C, +15C to +25C and -20C, Peli BioThermal maintains that Crēdo Cargo sets new standards in the global, bulk shipper market. The latest qualification data reveals Crēdo Cargo’s capabilities and key benefits which are: • • •
David Williams, the president of Peli BioThermal, said the company was delighted to introduce its new passive temperature-
Greg Wheatley, Peli BioThermal’s vice president of worldwide product development and engineering, said: “It is very exciting to
• •
• • •
Innovative reusable pallet shipper utilising PCM coolants. Duration in excess of 120 hours, performance tested to ISTA 7D. Max payload capacity of 1000KG and pallet accepting design. 270 degrees single door access for ease of loading and unloading. Lightweight and sturdy impact resistant design with tough external wall construction to absorb and deflect impacts and built to withstand the rigours of global logistics applications. Designed to be flat packed and stackable for storage or for returns to base. Integral viewing windows to monitor condition of VIP panels. Quick and easy assembly.
It is available for the first time to rent via Peli BioThermal’s Crēdo on Demand programme, which offers a high performance, flexible rental programme for temperature controlled pallet shippers, with global reach.
44
IT
MANUFACTURING
&LOGISTICS
March 2017
www.logisticsit.com
Warehouse Management
I
Analysis
Dimensioning solutions in the spotlight as warehouses strive to modernise, according to VDC Research
D
imensioning solutions (also known as cubing solutions) are data capture devices that utilise multiple technologies to enable data capture and cubing of objects and items. According to VDC’s latest report, dimensioning solutions have been used for products and parcels for efficient storage, package sizing, and quality checks, mainly in the transportation and logistics industries. Since 2015, major third-party logistics service providers (3PLs) such as FedEx, UPS, and DHL have been shifting away from traditional models in favor of newer dimensional weightbased pricing models. Competitive differentiation, optimising storage, compliance with dimension-based (DIM) pricing, optimising available assets, and order fulfilment were cited as the key drivers behind investments into dimensioning solutions. “The niche dimensioning market today consists of only a small number of participants and presents plenty of opportunity to automatic identification and data capture (AIDC) new entrants to expand their footprint in the warehouse,” said Shahroze Husain, research associate, autoID and data capture at VDC. Leading dimensioning solution vendors include CubiScan, Datalogic, Mettler Toledo, Postea, and SICK.
www.logisticsit.com
VDC’s research explains that dimensioning solutions are valuable to the operations of many wholesalers and distributors in order to optimise the limited space available to organisations today. “The e-commerce sales boom has made effective space management a top priority as companies grapple with cramped warehouses due to increased throughput,” said Husain. The shift towards ecommerce has also placed operational pressure on organizations to improve upon inbound and outbound processes via automated solutions.
operations as automation solutions and dimensioning can work very effectively together to increase storage density, accurately capture valuable data, and improve overall operational efficiencies. “Going forward, competitive differentiation, storage/asset optimisation, compliance with dimension-based (DIM) pricing, and improving service will be the major driving forces in adoption of dimensioning solutions for organisations. For vendors to stand apart and succeed in this space, the ability to offer local support, uninterrupted integration with existing systems, and regular software updates for systems are vital to ensuring success,” said Husain.
Continuing vendor R&D General interest in dimensioning solutions is restricted by the challenges of integration and high costs associated with owning, maintaining, and managing dimensional systems. VDC’s study shows that the inability of current investments to accurately measure irregular shapes, slow dimensioning speeds, scanning errors due to colour/shape, and hardware integration challenges are all additional hurdles that serve as barriers to adoption. Vendors are likely to continue to research and develop new solutions with the goal of improving speed, convenience, and efficiency, while also growing affordability. Solution providers believe dimensioning will become an integral part of the organisation’s
VDC RESEARCH AT A GLANCE Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies helps clients make critical decisions with confidence. Offering syndicated reports and custom consultation, VDC’s methodologies consistently provide accurate forecasts and thought leadership for deeply technical markets. VDC is located in Natick, Massachusetts US.
IT
MANUFACTURING
March 2017
&LOGISTICS
45
Supply Chain
Success story
Maersk and IBM unveil industrywide cross-border supply chain solution on blockchain IBM and Maersk have announced a new collaboration to use blockchain technology to help transform the global, cross-border supply chain.
T
he blockchain solution based on the Hyperledger Fabric and built by IBM and Maersk, the transport and logistics solutions provider, will be made available to the shipping and logistics industry. The solution will help manage and track the paper trail of tens of millions of shipping containers across the world by digitising the supply chain process from end-to-end to enhance transparency and the highly secure sharing of information among trading partners. When adopted at scale, the solution has the potential to save the industry billions of dollars.
Some 90% of goods in global trade are carried by the ocean shipping industry each year. IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build the new global trade digitisation solution, which is expected to go into production later this year. It has the potential to vastly reduce the cost and complexity of trading by using blockchain technology to establish transparency among parties. The solution is designed to help reduce fraud and errors, reduce the time products spend in the transit and shipping process, improve inventory management and ultimately reduce waste and cost. Maersk found in 2014 that just a simple shipment of refrigerated goods from East Africa to Europe can go through nearly 30 people and organisations, including more than 200 different interactions and communications among them. In order to prove the potential value of a commercial trade digitisation solution, IBM and Maersk have worked with a number of
46
IT
MANUFACTURING
&LOGISTICS
March 2017
trading partners, government authorities and logistics companies. For example, goods from Schneider Electric were transported on a Maersk Line container vessel from the Port of Rotterdam to the Port of Newark in a pilot with the Customs Administration of the Netherlands under an EU research project. The US Department of Homeland Security Science and Technology Directorate, and US Customs and Border Protection are also participating in this pilot. Damco, Maersk's supply chain solutions company, supported origin management activities of the shipment while utilising the solution. The international shipment of flowers to Royal FloraHolland from Kenya, Mandarin oranges from California, and pineapples from Colombia were also used to validate the solution for shipments coming into the Port of Rotterdam.
Decreasing fraud and increasing security "As a global integrator of container logistics with the ambition to digitize global trade, we are excited about this cooperation and its potential to bring substantial efficiency and productivity gains to global supply chains, while decreasing fraud and increasing security," said Ibrahim Gokcen, chief digital officer, Maersk. "The projects we are doing with IBM aim at exploring a disruptive technology such as blockchain to solve real customer problems and create new innovative business models for the entire industry. We expect the solutions we are working on will not only reduce the cost of goods for consumers, but also make global trade more accessible to a much larger number of players from both emerging and developed countries."
Improved workflow and real-time visibility on the status of each shipment International trading parties require both improved workflow and better visibility. They need a faster, security rich and more efficient way to handle the documentation processes needed to move goods across international borders. The costs associated with trade documentation processing and administration are estimated to be up to one-fifth the actual physical transportation costs. A single vessel can carry thousands of shipments, and on top of the costs to move the paperwork, the documentation to support it can be delayed, lost or misplaced, leading to further complications. How it works: • Blockchain, an immutable, security rich and transparent shared network, provides each participant end-to-end visibility based on their level of permission. • Each participant in a supply chain ecosystem can view the progress of goods through the supply chain, understanding where a container is in transit. They can also see the status of customs documents, or view bills of lading and other data. • Detailed visibility of the container's progress through the supply chain is enhanced with the real-time exchange of original supply chain events and documents. • No one party can modify, delete or even append any record without the consensus from others on the network. • This level of transparency helps reduce fraud and errors, reduce the time products spend in the transit and shipping process, improve inventory management and ultimately reduce waste and cost.
www.logisticsit.com
Success story
The solution enables the real-time exchange of original supply chain events and documents through a digital infrastructure, or data pipeline, that connects the participants in a supply chain ecosystem. This promotes sustainable transport by integrating shipping processes and partners, and establishing evaluation frameworks through increased transparency and trusted access. An industry standard API for the centralized sharing of data and shipping information via the Cloud was originally conceived by Frank Heijmann, head of trade relations, Customs Administration of the Netherlands, and David Hesketh, head of customs research and development, HM Revenue and Customs. In close cooperation with the European Commission services (Directorate-General Migration and Home Affairs and the Directorate-General for Taxation and Customs Union), it was further developed under the EU FP7 CORE demonstrator project. "The Customs Administration of the Netherlands see the data pipeline as a tool supporting the balance between trade facilitation and enforcement, where information sharing in supply chains is
www.logisticsit.com
optimized from a commercial perspective, and government authorities can re-use that information flow for supervision purposes," said Heijmann. "It supports the needs of trade and governments in global supply chains, as it improves efficiency, compliance and security. The supply chain visibility serves all of those needs." For shippers, the planned solution can help reduce trade documentation and processing costs and help eliminate delays associated with errors in the physical movement of paperwork. It will also provide visibility of the container as it advances through the supply chain. For customs authorities, the solution is intended to give real time visibility, significantly improving the information available for risk analysis and targeting, which may eventually lead to increased safety and security as well as greater efficiency in border inspection clearance procedures.
Supply Chain
change the way global trade is done," said Bridget van Kralingen, senior vice president, Industry Platforms, IBM. "Working closely with Maersk for years, we've long understood the challenges facing the supply chain and logistics industry and quickly recognised the opportunity for blockchain to potentially provide massive savings when used broadly across the ocean shipping industry ecosystem. Bringing together our collective expertise, we created a new model the industry will be able to use to help improve the transparency and efficiency of delivering goods around the globe." The solution developed by Maersk and IBM is based on the open source Linux Foundation's open source Hyperledger Fabric. The solution is expected to be widely available to support multiple parties across the ocean shipping industry ecosystem later this year. IBM hosts the solution on the IBM Cloud and the IBM high-security business network, delivered via IBM Bluemix.
Transformative technology â&#x20AC;&#x153;We believe that this new supply chain solution will be a transformative technology with the potential to completely disrupt and
IT
MANUFACTURING
March 2017
&LOGISTICS
47
AUTOMATIC DATA CAPTURE MOBILE COMPUTING
Analysis
IoT heading for mass adoption by 2019 driven by better-than-expected business results A new global study 'The Internet of Things: Today and Tomorrow' published by Aruba, a Hewlett Packard Enterprise company, reveals that IoT will soon be widespread as 85% of businesses plan to implement IoT by 2019, driven by a need for innovation and business efficiency.
hile the analysis confirms
investment, yet post-adoption, 32% of
IoT in the workplace has improved the
the clear business benefits
executives realised profit increases. Similarly,
effectiveness of their IT team, and 75% find
from investments in IoT,
only 29% of executives expected their IoT
it has increased profitability.
Aruba's report cautions
strategies to result in business efficiency
that connecting thousands
improvements, whereas actual results show
The industrial sector increases business
that 46% experienced efficiency gains.
efficiency and visibility through IoT-enabled
W
of things to existing business networks has already resulted in security breaches for the majority of organisations.
monitoring and maintenance: Chris Kozup, vice president of marketing at
• More than six in ten (62%) respondents in
Aruba, commented: "With the business
the industrial sector have already
The research questioned 3100 IT and
benefits of IoT surpassing expectations, it's no
implemented IoT. Using IoT to monitor and
business decision makers across 20 countries
surprise that the business world will move
maintain essential industrial functions was
to evaluate the current state of IoT and its
towards mass adoption by 2019. But with
identified as the most impactful use case in
impact across different industries. The study
many executives unsure of how to apply IoT to
the sector. Today, the use of IP-based
shows that while virtually all business leaders
their business, those who succeed in
surveillance cameras for physical security
(98%) have an understanding of IoT, many are
implementing IoT are well positioned to gain a
within industrial organizations is still in its
unclear of the exact definition of IoT and what
competitive advantage."
infancy, with only 6% having implemented it. However, when asked about future
it means for their business.
implementations, surveillance jumped five-
commissioned by Aruba, technology visionary
How Global organisations are using IoT
Kevin Ashton—who coined the term 'Internet
Aruba's research reveals varying levels of IoT
business efficiency and another 80% have
of Things'— presents the following definition:
maturity across different industry sectors. The
found improved visibility across the
"The 'Internet of Things' means sensors
following five vertical industries are leaders in
organisation.
connected to the Internet and behaving in an
their adoption of IoT and have realised
Internet-like way by making open, ad hoc
tangible business benefits from a focused, use
Healthcare introduces IoT to improve
connections, sharing data freely and allowing
case approach to adoption.
patient monitoring, reduce cost and foster
unexpected applications, so computers can
[subhead italics] Enterprises create a smart
innovation:
understand the world around them and
workplace for productivity and efficiency:
• Coming in as the third most advanced in its
become humanity's nervous system."
• Over seven in ten (72%) enterprises have
In his new eBook 'Making Sense of IoT',
fold to 32%. • Across the sector, 83% report increased
implementation of IoT, 60% of healthcare organisations globally have introduced IoT
introduced IoT devices into the workplace.
The expectations dividend
Indoor location-based services ranks as the second most promising use case to improve
devices into their facilities. • Across the sector, 42% of executives rank
When examining the business benefits of IoT,
employee productivity, after remote
monitoring and maintenance as the number
Ashton discovered that the real-world benefits
monitoring. Some 20% report remote
one use of IoT—higher than all other
gained from IoT exceeded even the original
operation of building lighting and
sectors. This underscores the importance of IoT-enabled patient monitoring in the
expectations. This 'expectations dividend' is
temperature as a key use case, but that
evident in two key performance areas:
number more than doubles to 53% when
business efficiency and profitability.
asked about future IoT implementations.
As an example, only 16% of business leaders projected a large profit gain from their IoT
48
IT March 2017
MANUFACTURING
&LOGISTICS
• Looking at the tangible results being
modern healthcare industry. • Eight in ten report an increase in innovation and another 73% report cost savings.
realized today, 78% say the introduction of
www.logisticsit.com
Analysis
AUTOMATIC DATA CAPTURE MOBILE COMPUTING
Retailers engage with customers and boost
cost of implementation (50%), maintenance
IoT deployments within their facilities and
sales using indoor location technology:
(44%) and integration of legacy technology
determine any potential threats that may be
• Just 49% of retailers are using IoT
(43%) were highlighted as key issues.
present."
improved customer experiences. An
Most notably, security flaws were found
Ashton concluded: "Since its inception in
improved customer experience is likely to
across many IoT deployments. The study
1999, the Internet of Things has been
have a significant impact on customer
found that 84% of organisations have
ridiculed, criticised, and misunderstood. And
loyalty and ultimately, revenue.
experienced an IoT-related security breach.
yet here we are, less than two decades later,
More than half of respondents declared that
in a world where tens of thousands of
personalized offers and product information
external attacks are a key barrier to
organisations are saving and making
to shoppers was touted as the number one
embracing and adopting an IoT strategy. This
hundreds of millions of dollars from the
implementation for IoT, alongside monitoring
confirms that a holistic IoT security strategy,
Internet of Things, using cars that drive
and maintenance. Four in ten retailers
built on strong network access control and
themselves, subway stations that sense
ranked surveillance in their top three key
policy management, will not only protect
passengers, algorithms that diagnose deadly
use cases.
enterprises but also simplify the security
diseases using phones, and many other once
approach for IT.
apparently-impossible technologies. The
technology, but 81% of these report
• In-store location services delivering
future promises far more amazing things. The
Governments lag in IoT adoption, struggle with legacy technology but still reduce
The ability to capture and effectively use data
most important decision you can make now is
costs:
is described by Kevin Ashton as ‘what defines
how to be a part of it."
• The slowest sector to adopt IoT, only 42%
the Internet of Things’, but this appears to be
of municipalities have deployed IoT devices
another clear challenge for global
and sensors. A third (35%) of IT decision
organisations. While nearly all (98%) of
makers claim their executives have little to
organisations that have adopted IoT claim
A total of 3100 IT and business decision
no understanding of IoT, double the global
that they can analyse data, almost all
makers were interviewed in November and
average, suggesting that lack of education
respondents (97%) feel there are challenges
December 2016. The respondents were from
is the biggest barrier to mass adoption in
to creating value from this data. Well over a
organisations of at least 500 employees, and
this sector.
third (39%) of businesses are not extracting or
were from both public and private sectors, but
• While nearly half (49%) of government IT
analysing data within corporate networks, and
with a focus on the industrial, government,
departments are struggling with legacy
are thereby missing out on insights that could
retail, healthcare, education, construction,
technology, seven in ten IoT adopters in the
improve business decisions.
finance, and
Research methodology
IT/technology/telecommunications sectors.
public sector report cost savings and improved organisational visibility as the
Kozup commented: "While IoT grows in
Interviews were conducted both online and
major benefits.
deployment, scale and complexity, proper
via telephone using a rigorous multi-level
security methodologies to protect the network
screening process to ensure that only suitable
The data context and security challenge
and devices, and more importantly, the data
candidates were given the opportunity to
and insights they extract, must also keep
participate. Respondents were interviewed in
pace. If businesses do not take immediate
the UK, Italy, Germany, France, the
Alongside these positive returns, the study
steps to gain visibility and profile the IoT
Netherlands, Spain, Sweden, Norway, Turkey,
also uncovers a number of obstacles that IT
activities within their offices, they run the risk
UAE, Saudi Arabia, the US, Singapore, Japan,
leaders feel are preventing IoT from delivering
of exposure to potentially malicious activities.
Australia, India, Brazil, Mexico, China and
greater business impact. In particular, the
Aruba is enabling customers to rapidly assess
South Korea.
www.logisticsit.com
IT
MANUFACTURING
March 2017
&LOGISTICS
49
FREE SUBSCRIPTION -FREE INFORMATION SERVICE
&LOGISTICS
To subscribe to either print or digital version please scan and e-mail this form to info@LogisticsIT.com - or go on-line at http://www.logisticsit.com/subscribe Do you wish to continue to receive Manufacturing and Logistics IT Magazine : yes no Print or Digital
Section 1
Your Details
Please complete in all cases
Name.............................................................................................................................................................................................. Company...................................................................................................................................................................................... Job title.......................................................................................................................................................................................... Address........................................................................................................................................................................................ .......................................................................................................................................................................................................... Tel: ........................................................................................ Fax:.............................................................................................. E-mail:............................................................................................................................................................................................
Section 2 Job Function
(Tick one box only)
Corporate management
IT management
Operations / Production
Sales / Marketing
Purchasing
Warehousing / Inventory
Consultant
Other , please specify ....................................................................................................................
Section 3 Business Function Manufacturer / Producer Transport / Logistics
(Tick all boxes that apply)
Food / Drink
Utilities
Retail
Warehouse / Distribution
Consultant / Education
Finance
Agriculture / Construction
Other , please specify ......................................................................................
Signature.................................................................................... Date...................................................... Only signed and dated forms can be accepted
FREE SUBSCRIPTION -FREE INFORMATION SERVICE
IT
MANUFACTURING
MARCH 2017
www.RetailTechnologyReview.com
www.IT-Reseller.com
www.LogisticsIT.com
www.TransportDistributionEurope.com
www.YourLogisticsTV.com
www.LogisticsHandling.com
www.YourTechTV.com
Early-Birrd Savings Register by 21 July and save €350
20 – 21 September 2017 London, UK gartnerr..com/eu/supplychain
The World’s Most Important Gathering of Supply Chain Leaders and Their Te Teams
ACT: Aspire, Challenge and Transform in a Disruptive World Don’t miss out on: så .ETWORKINGåWITHå åOFåYOURåSUPPLYåCHAINåPEERS så 'ARTNERåANALYSTSåPRESENTINGåSELECTåRESEARCH åTARGETEDåTOå YOURåPRIORITIES så &RESH åOUT OF THE BOXåTHINKINGåINåAåDYNAMICåATMOSPHERE så 2EALåHANDS ONåhTHISåISåHOWåWEåMADEåITåHAPPENvåINSIGHT
“The best industry-led supply chain conference I have attended in years. Inspirational keynote speakers, real-life business examples, knowledgable partners. Thank you Gartnerr..” Supply Chain Director, Cargill
© 2017 Gartnerr, Inc. and/or its affiliates. All rights reserved. Gartner is a registere r d trademark of Gartnerr, Inc. or its affiliates. For morre e information, email info@gartnerr..com or visit gartnerr..com.