PH Digicon2020 Breakout Session - PLDT Enterprise

Copyright @ GlobalData PLC. All rights reserved.Reproduction of part or all of this contents without permission is prohibited.

PH Digicon 2020 Breakout SessionDigitization of manufacturing

and supply chainsStuart RavensChief Analyst Thematic ResearchGlobalData Plc

October 2020

2

Acceleration of supply chain digitization, from the factory to the customer

Digitization Automation

Worker safetySupply chain

de-risking and diversification

Analytics and digital twins Collaboration

3

The longevity of the virus will dictate long-term changes to supply chains; but permanent changes will occur

VIRUS VACCINE

CHANGE NORMALITY

Occupancy densities

Staggered shifts

Hygiene management

One-way systems

Wearables

Supplier diversification

Supplier access

Motion tracing and monitoring

Supply chain automation

Collaboration tools

Robotics

Digitisation

Asset maintenance

Goods management

Digitaltwins

4

China’s role as the world’s factory is under threat; expect significant reshoring and multishoring

5Source: MDPI, Institute of Sustainable Corporate Management, Ulm University

Companies will audit their supply chains to improve transparency; customers will increasingly scrutinize and analyse their suppliers

This is the cobalt supply chain for an electric vehicle company before and after a transparency audit.

The primary finding was that the supply chain was far more complex than management thought, revealing many unknown players, particularly in the midstream.

A lack of knowledge about your supply chain can be the difference between collapse and survival.

6

Our Future of Work research identifies the technologies disrupting the way we work in both factories and offices

Source: GlobalData

7

Jan-20 Mar-20 May-20 Jul-20

Travel & Tourism


Technology


Retail


Power


Pharma


Packaging


Oil & Gas


Mining


Medical


Insurance


Healthcare


Foodservice


Consumer


Construction


Banking & Payments


Automotive


Apparel


Aerospace, Defense & Security

This will be a technology-focused recoveryCOVID-19 hit all sectors, but recoveries take different trajectories

as of 23 Jul 2020, indexed to 100 on 2 Jan 2020Source: GlobalData Analysis; Bloomberg

125

100

75

50

25

Index

Index

Index

125

100

75

50

25

125

100

75

50

25

125

100

75

50

25

125

100

75

50

25

125

100

75

50

25

Copyright @ GlobalData PLC. All rights reserved.Reproduction of part or all of this contents without permission is prohibited.

Cyrus MewawallaHead of Thematic ResearchGlobalData Plc

September 2020

Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted inany form by any means, electronic, mechanical, photocopying, recording or otherwise,without the prior permission of the publisher, GlobalData.

The facts of this report are believed to be correct at the time of publication but cannot beguaranteed. Please note that the findings, conclusions and recommendations that GlobalDatadelivers will be based on information gathered in good faith from both primary and secondarysources, whose accuracy we are not always in a position to guarantee. As such, GlobalData canaccept no liability whatsoever for actions taken based on any information that maysubsequently prove to be incorrect.

Transportation and Logistics : Essential Services

Airfreight

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2019 Jan Feb Mar Apr May Jun Jul Aug

AIR IMPORT

AIR EXPORT

ARRIVINGPASSENGERSDEPARTINGPASSENGERS

0

20

40

60

80

100

120

140

160

180

2019 Jan Feb Mar Apr May Jun Jul Aug

INCOMING FLIGHTS /DAYOUTGOING FLIGHTS/ DAY

Ø Capacity depletion - grounded aircrafts/fleet reductions- shift from scheduled to charter flights- “cargo in cabin” flights- birth of “preighters”

Ø Skyrocketing ad hoc / short termfreight rates

Airfreight

Ø Longer transit and higher costs due to blank sailings/capacity cuts

Ø Premium product fees

Ø Short term/higher contract rates

Seafreight

0

500

1000

1500

2000

2500

3000

3500

1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020

FOREIGN SHIP CALLS

-

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

1Q2019

2Q2019

3Q2019

4Q2019

1Q2020

2Q2020

Axi

s Ti

tle

Container Traffic ( in TEUs)

Import Export

Ø Delays in releasing of cargoes

Ø Higher costs due to demurrage and other local destination charges

3rd Party Warehousing

5

DOTr Department Order No. : 2020-008

Establishment and creation of the Shippers’Protection Office

Government Response

6

5 days 8 daysMinimum Free Time

Government Response

Government Response

MANDATORY forall port users to filetheir applications, submit all their

requirements, and pay all corresponding fees

online

Applications are processed

digitally

Acceptance ofdigital copies of Official Receipts (OR)

that shall be transmitted through different electronic

platforms upon notification or recognition

of payment.

Mandatory processing of gate passes

electronically

Protocol in case ofsystem

failures

JMC No. 01,s 2020

8

Government Response

Ø E2M Stabilization

Ø Online Inventory Management System for OffdockCY/CFS/ CBWs

Ø Electronic Tracking of Containerized Cargo ( E-TRACC ) System

9

iatf-scan.net

RESPONDProject

Government Response

10

Navigating the Next Normal: Revitalize

▸ Check digital platforms that will suit company and clients’ needs

▸ Start with the relatively easy to adopt ones

Navigating the Next Normal: Revitalize

THE FUTURE WILL BE A GAME OF DIGITIZATION

12

DR. RAFAELITA M. ALDABAUndersecretary

Competitiveness & Innovation GroupPH DIGICON, 30 October 2020

Technology Utilization Status of Philippine Manufacturing

Companies

Smart Manufacturing Survey of Establishments

Planning & scheduling

Manufacturing activity

management

Equipment connectivity &

data management

Material management & handling

Equipment maintenance

Shop floor visibility

Quality Cybersecurity

• Survey Tool developed by Manufacturing Enterprise Solutions Association (www.mesa.org)• Assess technology utilization status of manufacturing firms dimensions • Understand where firms are in terms of Industry 4.0 preparedness

SMART Manufacturing Maturity Index (SMMI)

PurelyManual

With Spreadsheet Management

Stand-alone DB Management System with

Legacy Applications

Mostly Manufacturing

Execution System used in

this Layer

Industry 4.0: MES + IIoT, Big Data, Machine

Learning, Robotics, etc

LEVEL 0

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

Total Respondents: 144 Firms 79% or 114 respondents have Very Low or Low Technology Utilization

Rev

enue

(P

hilip

pine

Pes

o)

Dimension Score (0 – 40)

1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

100,000,000

1,000,000,000

10,000,000,000

100,000,000,000

1,000,000,000,000

(3,000,000)

(2 ,000,000)

(1 ,000,000)

-0 5 10 15 20 25 30 35 40

Micro Small Medium Large

No Technology(6)

Very Low(57)

Low(53)

High(17)

Very High(7)

79% of the respondents are in levels from very low to low technology utilization

40% of firm respondents are in Level 1, 38% in Level 2

Source: DTI Survey on the Technology Utilization Status of Manufacturing Companies in the Philippines

13%

17%

4%

20%

67%

25%

65%

40%

48%

30%

38%

13%

38%

24%

13%

4%

13%

8%

4%

13%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Large

Medium

Small

Micro

All Categories

Level 0 Level 1 Level 2 Level 3 Level 4

Cybersecurity, Quality, and Manufacturing Activity Management: highest tech utilization

Legend: 4 (Highest) =High Technology Utilization, 0 (Lowest) =No Technology Utilization

Large manufacturers recorded the highest technology utilization across all manufacturing

dimensions

Large enterprises in highly urbanized areas have the highest technology utilization

Legend: 4 (Highest) =High Technology Utilization, 0 (Lowest) =No Technology Utilization

Firms with High Technology Utilization concentrated in NCR, Region 3, Region IVA

Digital divide may widen existing regional economic development imbalances in the country

Opportunities and Challenges in Transforming to Industry 4.0 Technologies

Source: DTI Survey on the Technology Utilization Status of Manufacturing Companies in the Philippines

77%

67%

microenterprises are familiar with Industry 4.0

small and medium enterprises are familiar with Industry 4.0

83%largeenterprises are familiar with Industry 4.0

Primary Considerations for Shifting to Industry 4.0

28%

Improvement in Productivity and Competitiveness

13%

Innovation and Technology

Advancement

13%Cost of

Investment & Funding

10%Market

Conditions

7%Others

29%Not Considering/

Unfamiliar

Barriers to Industry 4.0 Transformation

#1

Lack of financial capability

#2

Unfamiliar/Not Considering

#3

Other Company Reasons

#4Market

Conditions

#5Lack of Skills, Knowledge,

and Expertise

#6

Poor Digital Infrastructure

INDUSTRY 4.0READINESSINITIATIVES

SME ACADEMY INDUSTRY 4.0 PILOT FACTORY

INDUSTRY 4.0 ROADMAPS

UPSKILLING & RESKILLING OF WORKFORCE

PHILIPPINES AS ANAI CENTER

Securing Manufacturing Revitalization & Transformation (SMaRT)

GUIDING PRINCIPLES

WHAT TO SUPPORT?

SELECTION CRITERIA AND GUIDELINES

HOW TO SUPPORT

Performance Based

Time-Bound

Targeted

Transparent

Industry 4.0 Adoption

Product Upgrades

New Business Models

Service Upgrades Process Upgrades

Soft LoansGrants

Incentives, Vouchers, Tariffs

Other Fiscal and Non-Fiscal Support

Intellectual Property Protection

Standards Subsidies

Global Value Chain Upgrading

Adoption of Industry 4.0 technologies to catalyze manufacturing growth &

the economy

Commercialization of Innovation and R&D

Industrial Development in Rural Areas, new industries,

clusters & activities to address supply/value chains

gaps

With Industry 4.0, industries can be made more efficient & scalable, leapfrog to inclusive, resilient,

& sustainable industrial development

Embrace Industry 4.0 to strengthen competitiveness & sustainability of industries

Adapt programs to meet demand for talent created by Industry 4.0

Innovate, integrate into digital economy, industry clusters & global collaboration

Government-academe-industry collaboration

As we shift towards Industry 4.0, we need to ensure that no enterprise especially MSMEs or region is left behind.

THANK YOU

Building a Resilient Supply ChainFuture Proofing the Supply Chain

Dick T. PerezAVP – CRM FMCG

Distributors

Logistics

WarehouseManufacturing

Challenges and Opportunities

Challenges

» Collaboration

» Low Operational Efficiency

» Cyber Security

» Higher Cost of Operation

Solutions

» Borderless Collaboration

» IOT, AR, VR & Robotics

» Cyber Security w/ AI

» Information Management System with AI and ML

DistributorsLogisticsWarehouseManufacturing

Supply Chain Value Framework

Operational Efficiency

Process Efficiency

Future Infrastructure

Collaboration

Sub-distributors

DistributorsLogisticsWarehouseManufacturing Retailers

“When it comes to marrying online with offline efforts, technology is not a driver, but it is critical in making it happen”

- Alison Corcoran

From Now to NextAccelerating industries digitalization to Industry 4.0

Industry 4.0 in Digital Manufacturing

Mathew Simon Enterprise Solutions - APAC

© 2020 Nokia2

Future X for industries – Digital Transformation Framework

© 2020 Nokia3

Nokia Chennai Factory Vision – DIGITAL TWIN 1 COMPLETE FIBER BASED INFRA

Passive Optical LAN (POL)

Traditional LAN Passive Optical LAN

Core switch

CAT

Aggregation switches

Fiber

Passive splitters

POL OLT

Benefits§ Lower Footprint; Less Cables

§ Simpler Network

§ Secured Network with Encrypted Fibers

§ > 50% overall TCO savings

© 2020 Nokia4

Nokia Chennai Factory Vision – DIGITAL TWIN 2 Go Wireless - Connect Everything

Benefits§ Robust Wireless providing connectivity to

everything, people, sensors, devices, AGVs

etc

§ Consider a robust 4G/5G wireless

infrastructure as a private network within the

Manufacturing, secured networks

§ Enables your Digital Automation capabilities,

API interfaces to feed the application layers

© 2020 Nokia5

Industry 4.0 – BENEFITS OBSERVED

86%Lead Time Reduction

31%Labor time reduction

25%Increase in automation rate

31KMan hour savings

80%Connected devices

100+

Use cases deployed in production

16%

OEE improvement overall operations

23 Km walk/day elimination

IT Infrastructure Setup for new production line

Smart Material Delivery (AGV, AIV)

Hardware Robotic Automation

Software Robotic Automation (RPA)

Flexible manufacturing Digital Twin Visibility

Secret

Make SmarterMove FasterManage Simpler

Jhoey BenedictoJaz Garcia

SUPPLY CHAIN ECOSYSTEM

RETAILERS

SUB-DISTRIBUTORS

v DISTRIBUTORSZz LOGISTICSWAREHOUSEMANUFACTURING

vZzWAREHOUSEMANUFACTURING LOGISTICS DISTRIBUTORS RETAILERSSUB-DISTRIBUTORS

KEY CONSIDERATIONS

OPERATIONAL EFFICIENCY and SAFETY

PROCESS EFFICIENCY

COLLABORATION

INFRASTRUCTURE

MANUFACTURING PLANT

Workers clock in and wear social distancing wearables worn throughout the premises

Powered by

24/7 Energy Management sensorscapture extensive status information, such as temperatures, ambient humidity or plant and alarm conditions. Info sends to the Plant Information System

A PLANT MANAGER checks the conditionof each machinery, total output per sectionthrough a Plant Information Management System, which is an aggregation, visualization and analytics tool

WAREHOUSE

Powered by

Asset Tracking Tool for checking of location, condition of assets, and who was the last person who utilized it.

LOGISTICS

Plate number recognition/ Geozone alerts using visual imaging software for added surveillance and security of incoming vehicles

Powered by

Digital Form Solution with QR for acknowledgment of delivery receipt.

Fleet Management Solution where the head office can track its whereabouts and see driver’s behavior.

Paymaya Checkout for settlement of logistics services

Streamline information from manufacturer to the distributorsand retailers, while complying with BIR reporting and audit requirements.

Predict demand and minimize stockouts for each of our partners,and quickly adapt our plant operations accordingly.

Track partners’ financial performance regarding receivables, campaigns, etc.

DISTRIBUTORSWith a simple, accessible and affordable platform, manufacturers can proactively engage our partner distributors by extending the capabilities of class-leading SAP ERP systems.

This per-seat-based software runs on Microsoft Azure Stack Cloud Infrastructure hosted in ePLDT Vitro Data Centers, the first and only local instance of Azure.

Resilient and secure by design, since simplERP supported by the Managed Operations Center and Security Operations Center as a Service.

DISTRIBUTORS

Do our distributors invest and run this ERP system?

Ana, their account manager, can confirm with John of Purchasing that ABC Mart needs a fresh 30 trays of bread by next

week, just through a browser

John can then immediately coordinate with me to book the delivery, all the way

from their HQ/office.

TO THE RETAILERS

90% of their subscribed speed, 90% of the time!

COORDINATION

Make Smarter, Move Faster and Manage Simpler.

RELIABLE SOLUTION PARTNERS

THE END

Smart IT for Manufacturing & Logistics

Zhi Yong Yeo – Strategic Sales Manager

George Dorsey - Systems Engineer, Service

Provider

Advance manufacturing operational drivers

Gain visibility across entire supply chain

Improvesafety,

security and reliability

Securing businessapps and mobile

devices on factoryfloor

Improve decision

making withdata, analytics and machine

learningMaximizeuptime quality of production

lines

Simplifying IT with Cloud Management

”Simplifying powerful technologies to free passionate people to focus on their mission"

500k+Unique

customers

7M+Meraki devices

online

Meraki-Driven Value Solutions

Asset Utilization

• Site-wide Wi-Fi with centralised

network management.

• SD-WAN for improved

connectivity & cost reduction

• Simple Unified Threat

Management to protect your sites

Innovation

• Smart Cameras for process

monitoring and site security

• Environmental sensors to

protect critical infrastructure

• Prevent warehouse

spoilage of goods

Supply Chain & Logistics

• Wi-Fi Heatmap for traffic

patterns and analytics

• Bluetooth beacon for asset tracking via integration to 3rd

party applications

Employee Productivity

• Built for Lean IT or no IT

• Rapid deployment

• Remote management • Improve site safety

Recip e fou nded in Aus tra lia , exp or tsyogh urtwor ldw ide

• Usin g MVSm ar tCam er as for s ta ff p ro c e s s mon itor ing topreventproductloss andfood safety

• “Plu g an d P lay ” easy ins ta lla tion

• Motionsear chsaves theNoosa teamfromhavingtowatchhoursoffoota g e todetect produc t loss; theysimplyse l ec t aparticulararea ofthecamera viewandcan automaticallys e e whenanymotionwasdetect ed .

• Cam er as an d TVs mou nted ar ou nd the fact or y, so wor ker scaneasi ly s ee wheretheirco l l eagu es arelocated andwhatth ey’ re workin g on , ma king col labora tion s impler

“We got the Meraki MV for a specific reason and then it

actually did what it’s supposed to do — it mitigated some

product loss and saved us thousands of dollars.”

— Brandon Colter, Network Technician, Noosa Yoghurt

Watch customer case study: https://www.youtube.com/watch?v=0KcIu432xEA

http://www.youtube.com/watch?v=0KcIu432xEA

A Comprehensive Cloud PlatformINTEGRATIONS & SOLUTIONS

POWERED BY MERAKI

{ APIs }

OUT-OF-THE-BOX MANAGEMENT & ANALYTICS

MRAccess Points

MSEthernet Switches

MXSD-WAN & Security

MIAssurance

SMEndpoint Management

MVSecurity Cameras

Thank you.

Disrupt Or Be Disrupted

Anton Andres, Samsung

Samsung proprietary and confidential

SecuritySafety Productivity

Samsung proprietary and confidential

Social Distancing Management

Barcode Scanning Push-To-Talk

Point of Sale Terminals

Business First Rugged Solutions

XCover Pro Tab Active3

IP68 Anti-Shock

Unparalleled Device Security

6

Secure passwords Secure personal data Safe transaction Secure health data

7

Automatic Enrollment & Configuration

7

Power On & Connect Apply IT Policies/SettingsAuto Enroll Device

8

This Next Normal will be a period of

even innovation.bolder

PH Digicon2020 Breakout Session - PLDT Enterprise

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