Click to edit Master title style Future Supply Chain Issues for the Transport and Logistics Sector Lorcan Sheehan, PerformanSC Supply Chain Dermot Connolly, DSV Solutions Shane Clifford, Zetes
Market Context, Trends and Opportunities • • • • • •
Diverse and Changing Market Requirements Managing uncertainty Role of Automation: People / Talent Environmental Considerations Supply Chain partnerships - Future considerations
Today’s Supply Chain : A simple goal !! The ultimate goal of any effective supply chain management system is to deliver the right product to the right person at the right time…at the right cost.
Reduce: Cost of Goods Inventory Supply chain costs Lead time
Deliver: Right product Right customer Right time Right cost
Volatility, Uncertainty, Complexity and Ambiguity • • • • • • •
Natural Disasters , volcano, tsunami, climate change Fluctuating fuel costs Foreign Exchange Fluctuations Political Instability Foreign conflicts Consumer behaviour Changing Regulatory Environment
“66% not confident to predict SC operations more than one year in advance” - CSCMP
Risk management approach now essential Automotive move to “in shore” UK Advanced Manufacturing Supply Chain
Diverse and Changing Market Requirements • • • • • • • • •
Ever changing manufacturing footprint and partners Shorter product life cycles Explosive market growth – and contraction – E&O impact New Industry pressures - Generic drugs New / evolving industry regulations - GDP New customer expectations – same day delivery – buying choice –/multi cannel fulfilment Increased environmental pressures Increased need for transparency and visibility Little product differentiation ( same materials, location and labour)
Supply chain can now be the differentiator The only thing that is certain is that change will continue - flexibility is critical Supply chain and partnerships now more important than ever
2,24,41
Automation / Technology Opportunities •
Overall approach to automation – Flexibility vs Efficiency
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Some Specific technology / automation opportunities – – – – – – – – –
Network optimization Fully automated storage and retrieval Robotics / drones Pick by voice / voice and scan Warehouse application for google glasses? Warehouse management / optimization Transport routing optimization Shipment validation who is talking to this slide? Packaging design
Maybe a Zetes slide here?
Automation,Hybrid model best of both worlds Automated Solutions • Remove process element where blue collar add no value • Consistency • Quick reaction to peak demand
Conventional Solutions • •
Customer commitment is key to automation success
Provides flexibility Prevents large investments
Pick by voice experience at DSV •
In operation for 5 years – 16% efficiency improvement – Quality improvement led to Good Faith Receiving ( GFR) implementation
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– “get it right first time “ - Reduction in reverse logistics expense Key warehouse strategy for DSV moving forward
The Solution Providers Perspective
VOICE PICKING
Order Picking – an opportunity to improve
Voice Picking - key features
Receiving information Productive picking
How Voice Picking works
Vision recognition – Google glasses? •
Google glasses – – – – –
•
Pilot operation in warehouse in Netherlands 14% efficiency improvement 12% pick error improvement Paperless Both hands free
Vision recognition – Identification of pallets, barcodes, aisles, etc.
The Solution Providers Perspective
VISION SYSTEMS
SHIPPING VERIFICATION – THE BENEFITS: The right box/product on the pallet
Photographic evidence of each pallet 100% Integrity of items contained on pallet Correct and readable labels Properly stacked and or sequenced items Operating efficiency and OPEX savings
Time savings to manually scan the pallet Error elimination Returns / Claims elimination Improved reputation and reliability as a supplier to your end customers
People still the key ingredient •
Legislation regarding driving hours – –
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very important in coming years
FORFAS study – Logistics talent
?
Role of the driver – – – –
more regulated market higher fines
Cert Professional Competence (CPC) –
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now an ambassador of the company more IT in the cab More accountability - GDP Customer engagement- language capabilities
Logistics as a recognised qualification
Environmental considerations
Environmental Considerations Train deliveries from China already started
Electric truck deliveries for city centre, induction charging Oil to Bio fuel conversion Larger trailer capacity 13.6M to 15M? Fuel Molecular vibration, 15% greater efficiency
Supply Chain partnership, Future considerations • • • • • • •
Understand scope and requirements Financial stability Local connectivity – global presence “Steady state costing” – plus peak flex ! Gain share incentives. Customer and SC partner value each other ! Recent EFT survey, 62% of SC Execs, stated SC flexibility and visibility as their main concerns Control Tower, keep it under one roof, fewer links – stronger chain
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Asia economy – Are western suppliers moving away from China as the “holy grail” ? • Too difficult to set up in China • Growth of Indigenous competition • Result is more one way traffic from East to West ?, reduced export costs?
Final word
“In times of great change, its not the strongest that survive. The species that survive and thrive are those that adjust and adapt best to their changing environment.� Charles Darwin 1859