Big data

&

Internet of Things

in Global Automotive Logistics

Automotive Logistics China 2016, Chengdu

What makes INFORM special:

Optimization in logistics

More than 550 employees

- global projects

- focus on automotive logistics

HQ in Germany; revenue in 2015 €60 million

Many automotive customers like

INFORM I Leader in Optimizing Logistics

MathematicalIndustry Logistics

INFORM I Leader in Optimizing Logistics

MathematicalIndustry Logistics INFORM

INFORM I Leader in Optimizing Logistics

INFORM optimization systems are used

by more than 1,000 companies worldwide

INFORM I Worldwide Customers

6

Memphis Cargo Hub:

250 planes / 17 million parcels

each night

6

INFORM I Worldwide Customers

Hamburg CTB:

Germany`s largest container

terminal

I

7

INFORM I Worldwide Customers

8

INFORM I Finished Vehicle Logistics

8

Yard / Compound Flow Optimization

Regional / Global Distribution Networks

Road / Rail / Sea Transport Optimizatione@logistics award 2008

of the

German Automotive Industry

© 2015 – INFORM GmbH © 2016 – INFORM GmbH

More than 50 car factories

More than 12.000 trucks

per day handled by

SyncroSupply

INFORM I Inbound Logistics

INFORM I Real time optimization technology in automotive

1) Big data

2) Internet of Things

3) Physical Internet

4) Innovation in trailers, containers and racks

5) Make all pieces work together

Automation & Innovation I How can it help supply chain managers?

There is still a lot to win:

1) Global inventories How reduce it with 20%?

2) Global transport cost How reduce it with 20%?

- reduce waiting

- reduce empty driving

- reduce half empty trucks

- reduce leadtimes

New technologies I How can it help supply chain managers?

Shanghai

Russia

Brazil

Singapore

Hungary

Chile

Panama

Venezuela

ArgentinaAustralia

Malaysia

Japan

Thailand Taiwan

South Korea

Potential

commencement

LDCs

(Local

Distributio

n Center)

ADV (Areas

Distribution

Center)

LDCs - in

planning

Central

warehouse

(world-wide

delivery)

Germany

Copyright INFORM GmbH 1991 - 2014

India

USA

Big data I How can it help to reduce inventories?

Big data I How can it help to reduce inventories?

Ava

ila

bil

ity

[%]

Sto

ck

va

lue

Service level > 99 %

Sustainable stock reduction > 20%

Stock – Availability

CW 16 – CW 52

Big data I How can it help to reduce inventory costs?

1) Global inventories How reduce it with 20%?

2) Global transport cost How reduce it with 20%?

Big data I How can it help supply chain managers?

Input: All possible locations, connections

Output: Least cost

routing

…throw this at

the optimizer…

17

+ rates from RFQ portal

Big data I How can it help to reduce transport costs?

18 © 2016 – INFORM GmbH

Transport Means

• Transport Time

• Emissions

Carriers

Yardoperators

Contract Conditions

• Rates

• Capacity Constraints

• Lead & Dwell Times

Carrier Quality

• Damages

• On-Time performance

Operational Considerations

• Number of Ports, Compounds

• Number of Carriers

• Compounds or Carriers for Regions

• Changes from Current Network

Port / Compound Modification Distribution Center DealerPlant

Big data I How can it help to reduce transport costs?

19 © 2016 – INFORM GmbH

Validate current network

• Impact of rate changes

• Impact of volume changes

Lowest cost scenario

• No limit on changes

• Low weight on transit times

Lowest risk scenario

• Limit on changes

• Focus on transit times

Scenario 3Scenario 3Optimization

…

User defined

Scenarios

The impact of changing input and optimization conditions is fully visible

Optimization Result 1

39,459,245 USD

Optimization Result 2

41,989,001 USD

• Build Scenarios according to different business criteria

• Compare savings potential for different conditions

• Analyze the impact of different weight on optimization criteria

• Analyze the impact of applying restrictions

47,148,634 USD

Baseline – Current Network

Big data I How can it help to reduce transport costs?

Big data I How can it help to reduce empty driving?

1) From route optimization to balancing flows

2) From individual optimization to collaborative optimization

3) From own industry to inter industry

1) Input: Via smartphone app or handheld

2) Output: From paper to smartphone/handheld

3) Planning: From daily to minute

4) Accuracy: From block to parking space

5) More self service: E-gate at DC/factory

Examples today in logistics?

Internet of Things I How can it help supply chain managers?

Internet of Things I How ensure cars are produced & delivered on time?

1) In the factory at the production line

2) In the vehicle distribution center

3) In inbound logistics for incoming trucks

Internet of Things I How can it help supply chain managers?

Audi

180,000 move orders per day

to supply the assembly line

Internet of Things I How can all parts be on time at the production line?

deliveries of large units

small-parts single delivery

plant border

JIT-deliveries

1

6

2

7

3 4 5

8 9 10

16

27

3 4 58 9 10

delivery of picked materialpicking zone

162345

Storage

locations

H12

H4711

...

...

B4513

„From ramp to assembly line“

Supplier

Supplier

Logistics

Centre

Hub/Supplier

Transport

Service Provider

P

r

o

d

u

c

t

i

o

n

l

i

n

e

Systems Logistics Division

Internet of Things I How can all parts be on time at the production line?

1) In the factory at the production line

2) In the vehicle distribution center

3) In inbound logistics for incoming trucks

Internet of Things I How can it help supply chain managers?

User

27

2.5 million cars in 2015 in Zeebrugge port: largest car terminal in world

40% growth since 2012

ICO is leading party: 1.7 million in 2015 in Zeebrugge

Internet of Things I How are vehicle distribution centers changing?

Tru

ck 1

2

Tru

ck 3

7

Tru

ck 7

6

Tru

ck 1

1

Tru

ck 4

8

Tru

ck 1

7

Nave 38

ByPack

CP 8

Truck 07

Truck 46

Truck 31

Truck 30

Tru

ck 1

2

Tru

ck 3

7

Tru

ck 7

6

Tru

ck 1

1

Tru

ck 4

8

Tru

ck 1

7

Nave 38

ByPack

CP 8

Truck 07

Truck 46

Truck 31

Truck 30

User

28

VW Mexico, Yard and Transport Optimization

premium

cars

priority

units

fast

mover

slow mover

Internet of Things I Every spot is pointed out to person and system

Job assignment

Movements and inspections are triggered by orders

Resources are planned in an optimized way

Optimizer assigns automatically best order to driver

12

3

Damage Yard

Optimized Workflow

Minimize number of handled cars

Minimize use of shuttles

Minimize time and distances

29

Internet of Things I Person gets instruction via smartphone or handheld

Self- check-in and check-out for automated gate processes

30

Internet of Things I Drivers can have Quick Check In

50% reduction in waiting

1) In the factory at the production line

2) In the vehicle distribution center

3) In inbound logistics for incoming trucks

Internet of Things I How can it help supply chain managers?

Audi Quick Check In via Geofencing

Internet of Things I How create quick check in in factories?

Slotting From 3 hours to 2 hours

Quick Check In From 2 hours to 1,5 hour

650 trucks per day save 0,5 hour per trip using

- Smartphone app

- Paperless process

- No stop at gate (automatic recognition based on geofencing)

Internet of Things I How much improvement can be realized?

http://physicalinternetinitiative.org

Automation & Innovation I Physical Internet Initiative

Stop with empty trucks in finished vehicle logistics

Stop with transporting empty containers

Stop with half full trucks

New technologies I Hardware

Create global optimized logistics & help to reduce CO2

Big data

Internet of things

Collaboration between companies and industries

New logistic tools

- foldable container

- convertible trailer

- tools to fill trucks/containers better

We need to combine all these pieces to solve the puzzle!

New technologies I Summary

Ruud Vossebeld Director Business Development

Email ruud.vossebeld@inform-software.com

Phone +31 6 54 677680 or +49 2408 9456 0

Internet www.inform-software.com

INFORM I More Information

Used in 22 locations

1.7 Mio. VIN in 2015

UK

Valencia*

EU

Network

Planning

Southafrica

India:

CVAP

CVAP VMC

SVAP,

ports

Thailand:

FTM *, AAT,

ports

Lincoln

China

(Shanghai)

FoA/FNZ

(planned 2016)

42

Northamerica Europe + Asia

SyncroTESS CPS

CPS + CMS

CPS + CMS/VMC

CPS

© 2016 – INFORM GmbH

INFORM I Finished Vehicle Logistics

Thank you!