THE WAREHOUSE - apicspdc.starchapter.com · INTERNET OF THINGS? The Internet of Things (IoT)...
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THE WAREHOUSE OF THE (near) FUTURE THE WAREHOUSE OFTHE(near) FUTURE APICS Southeast District Webinar Series Facilitated by Scott W. Luton, CSCP, LSSGB APICS Southeast District Staff
Transcript of THE WAREHOUSE - apicspdc.starchapter.com · INTERNET OF THINGS? The Internet of Things (IoT)...
THE WAREHOUSE OF THE (near) FUTURE
THE WAREHOUSE OF THE (near) FUTURE
APICS Southeast District Webinar Series
Facilitated by Scott W. Luton, CSCP, LSSGB
APICS Southeast District Staff
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GROUND RULES
APICSthe world’s leading community for end-to-end
supply chain excellence
• Membership
• Research and Publications
• Education
• Certification
▪ Over 45,000 members
▪ In over 100 countries
▪ 195 North American chapters
▪ Over 104,000 Certified in Production and Inventory Management (CPIM)
▪ Over 20,000 Certified Supply Chain Professionals (CSCP)
▪ And over 2,000 volunteer subject matter experts
APICS is People
For more information
Contact APICS
www.apics.org
800.444.2742
Contact APICS Southeast District
www.apicssoutheast.org
Steve Rudnicki, SED Manager
Scott W. Luton, SED Staff
678.296.5268
Follow us on Twitter
APICS
@APICS
APICS Southeast District
@APICS_Southeast
Scott W. Luton, SED Staff
@ScottWLuton
• Implemented business intelligence solution at dozens of DCs across the country
• Verticals including retail, wholesale, grocery, and others
• Software startup, developed a Software as a Service analytics solution for DC operations
• Consulting practice focused on business intelligence and data analytics as well as using data to drive operational improvements
• Built and managed a consolidated reporting environment for multiple business units to report on warehouse management and inventory optimization systems
SPEAKER: COLTON GRIFFIN, CEO OF WMSIGHT
By enabling technology, reinventing brands, and
exploring new business models, companies in the
retail, wholesale, and distribution industry can prepare
themselves for a range of probabilities.
DISRUPTION IS THE NEW NORMAL
More than 73 percent of respondents to an APICS
survey reported experiencing chronic disruption in
their careers.
DISRUPTION IS THE NEW NORMAL
http://www.apics.org/docs/default-source/scc-non-research/view-the-full-chronic-disruption-report.pdf
WHY?
• Changing order profile
MUCH OF E-COMMERCE AND OMNI-CHANNEL IS NOT PROFITABLE DUE TO HIGH
MARGINAL COSTS
• Changing order profile
• Demand for faster and
free shipping
MUCH OF E-COMMERCE AND OMNI-CHANNEL IS NOT PROFITABLE DUE TO HIGH
MARGINAL COSTS
• Changing order profile
• Demand for faster and
free shipping
• Increase competition,
choice, and product
variability
MUCH OF E-COMMERCE AND OMNI-CHANNEL IS NOT PROFITABLE DUE TO HIGH
MARGINAL COSTS
$1.43
$1.00
U.S RETAILERS ARE CURRENTLY SITTING ON ABOUT
$1.43 IN INVENTORY FOR EVERY $1 OF SALES THEY MAKE.
Source: John Larkin, Transportation sector analyst of Stifel (and regular SCDigest guest columnist)
INVENTORY DISTORTION - A PROBLEM WHICH INCLUDES
OVERSTOCKING, STOCK-OUTS, AND SHRINKAGE – COSTS THE
INDUSTRY $42 BILLION
https://www.mckinsey.de/files/unlocking_the_potential_of_the_internet_of_things_full_report.pdf
CURRENT STATE OF THEINDUSTRY
SOFTWARE IS HERE
http://www.supplychain247.com/article/2015_warehouse_dc_operations_survey_results
FORBES REPORTED THAT WORLDWIDE SPENDING ON PUBLIC CLOUD SERVICES WILL GROW FROM $70 BILLION IN 2015 TO MORE THAN $141 BILLION IN 2019; AND PUBLIC CLOUD INFRASTRUCTURE SPENDING IN THAT SAME PERIOD WILL GROW FROM $38 BILLION TO $173 BILLION.
CLOUD IS HERE
https://www.forbes.com/sites/louiscolumbus/2016/03/13/roundup-of-cloud-computing-forecasts-and-market-estimates-2016/#4c5acc452187
BIG DATA IS HEREBUT WE ARE STILL REALIZING IT’S VALUE
http://www.apics.org/docs/default-source/industry-content/big-data-report.pdf
ESTIMATES FOR THE IOT AND IIOT MARKET SIZE HAVE RANGED
FROM $470B TO $60T
https://www.forbes.com/sites/louiscolumbus/2016/11/27/roundup-of-internet-of-things-forecasts-and-market-estimates-2016/#1e390ab292d5
THE WAREHOUSE ROBOTICS MARKET IS GROWING 11.8% CAGR TO BE
$4.44B MARKET BY 2022
http://www.marketsandmarkets.com/PressReleases/warehouse-robotic.asp
THE WORLD DRONE MARKET IS FORECAST TO GROW AT BETTER THAN A 30% ANNUAL CLIP TO $6 BILLION
BY 2020http://www.globaltrademag.com/global-trade-daily/news/global-drone-market-predicted-to-grow-five-fold-through-2020
GARTNER’S #1 TECH TREND IS ARTIFICIAL INTELLIGENCE
http://www.gartner.com/smarterwithgartner/gartners-top-10-technology-trends-2017/
AUGMENTED REALITY MARKET SIZE IS FORECASTED TO EXCEED $165BN BY 2024
https://globenewswire.com/news-release/2017/01/12/905349/0/en/Augmented-Reality-Market-size-to-exceed-165bn-by-2024-Global-Market-Insights-Inc.html
WHAT IS INTERNET OF THINGS?The Internet of Things (IoT) connects all of the objects in a warehouse and allows them to communicate with one another. A “thing” in the IoT could be a forklift, an RFID tag, a sensor, or even a shelf.
HOW CAN IoT HELP YOUR WAREHOUSE?
HOW CAN IoT HELP YOUR WAREHOUSE?
ASSETTRACKING
ASSETTRACKING
RFID tags and sensors on inventory items can communicate information about them in real-time.
A warehouse manager could identify not only an item’s precise location, but also all the info about the item like where it came from, when does it expire etc.
EQUIPMENT MONITORING
HOW CAN IoT HELP YOUR WAREHOUSE?
ASSETTRACKING
EQUIPMENT MONITORING
Most equipment in the warehouse can be connected and monitored via the internet
SHELVES SENSORS FORKLIFTS
EQUIPMENT MONITORING
http://www.supplychain247.com/article/enter_the_smart_internet_of_things_warehouse
HOW CAN IoT HELP YOUR WAREHOUSE?
IMPROVEDVISIBILITY
ASSETTRACKING
EQUIPMENT MONITORING
IMPROVED VISIBILITY
Having access to data for all connected devices allows for greater visibility across the entire
operation.
SMOOTHEROPERATIONS
MINIMIZE FRAUD
IN-TRANSITVISIBILITY
ROBOTICSIN THE WAREHOUSEWhile industrial robotic machines and automatons have been used in production plants for years, recent advances have led to the emergence of a new breed of ‘intelligent’ and ‘connected’ robots.
THE TOP THREE CHALLENGES FACED BY SUPPLY CHAIN EXECUTIVES
identified by a Deloitte and MHI survey
Hiring and retaining a skilled workforce
THE TOP THREE CHALLENGES FACED BY SUPPLY CHAIN EXECUTIVES
identified by a Deloitte and MHI survey
Meeting customer demand for fast response times
Hiring and retaining a skilled workforce
THE TOP THREE CHALLENGES FACED BY SUPPLY CHAIN EXECUTIVES
identified by a Deloitte and MHI survey
Meeting customer demand for fast response times
Hiring and retaining a skilled workforce
Shortening delivery times
HOW CAN ROBOTICS HELP WITH THESE CHALLENGES?
Autonomous and semi-autonomous robots can eliminate wasted labor cost spent on travel, which can be up to 50% of time spent picking, replenishing, and putting product away
Robots can optimize packaging and palletizing
CONSISTENT FASTER CONTINUOUS
Helps make ecommerce profitable by fulfilling a variety of orders faster
Calculating ROI – It’s easy!http://www.robotics.org/content-detail.cfm/Industrial-Robotics-Industry-Insights/Calculating-Your-
ROI-for-Robotic-Automation-Cost-vs-Cash-Flow/content_id/5285
WHAT ARE DRONES?
Unmanned aerial vehicles that can fly autonomously or semi-autonomously
HOW CAN DRONES HELP YOUR WAREHOUSE?
INVENTORY COUNTING
INVENTORY COUNTING
LOCATING AND COUNTING SPECIFIC
ITEMS
CYCLE COUNTING
HOW CAN DRONES HELP YOUR WAREHOUSE?
INVENTORY COUNTING
YARDMANAGEMENT
Yard Management
• Safely monitor the yard, check in trucks, and verify trailer locations
• Implementation to track parked cars on a lot for dealers and manufacturers
• Implications for any floor-stacked inventory
HOW CAN DRONES HELP YOUR WAREHOUSE?
WHAT IS ARTIFICAL INTELLIGENCE?
Computer code that is able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.
WHAT DOES ARTIFICAL INTELLIGENCE BRING TO THE WAREHOUSE?
AUTOMATEDDECISION MAKING
WHAT DOES ARTIFICAL INTELLIGENCE BRING TO THE WAREHOUSE?
AUTOMATEDDECISION MAKING
ORDER RELEASE SLOTTING FORECASTING &SCHEDULING
AUTOMATEDDECISION MAKING
EXCEPTIONDETECTION
WHAT DOES ARTIFICAL INTELLIGENCE BRING TO THE WAREHOUSE?
EXCEPTIONDETECTION
PREDICTIVE MAINTENANCE
LABOREXCEPTION
INACCURATETRANSPORTATION
CHARGES
AUTOMATEDDECISION MAKING
EXCEPTIONDETECTION
PATTERNRECOGNITION
WHAT DOES ARTIFICAL INTELLIGENCE BRING TO THE WAREHOUSE?
PATTERNRECOGNITION
ROOT CAUSE ANALYSISFOR ORDER SHORTS
INVENTORYADJUSTMENTS
WHAT IS AUGMENTED REALITY ANDVIRTUAL REALITY?AR: Technology that superimposes a computer-generated image on a user's view of the real world, thus providing a composite view.
VR: Computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment, such as a helmet with a screen inside or gloves fitted with sensors.
WHAT DO AUGMENTED REALITY ANDVIRTUAL REALITY BRING TO THE WAREHOUSE?
CONTEXT SENSITIVE INFORMATION
CONTEXT SENSITIVE INFORMATION
PICKING RECEIVING IoT Info
WHAT DO AUGMENTED REALITY ANDVIRTUAL REALITY BRING TO THE WAREHOUSE?
CONTEXTSENSITIVE INFORMATION
DESIGN AND PLANNING
DESIGN AND PLANNING
SIMULATE WAREHOUSE CONFIGURATION AND DESIGN
BEFORE CONSTRUCTION
LOWER COSTS ANDPREVENT BAD DESIGN
WHAT’s NEXT?
WHAT’s NEXT?
CONVERGENCE
WHAT’s NEXT?
CONVERGENCEINTERCONNECTED SYSTEMS
WHAT’s NEXT?
CONVERGENCEINTERCONNECTED SYSTEMSOPEN ARCHITECTURE AND API’s
CONTACT US!
Next Steps• Questions on today’s presentation or on APICS?
• Reach out directly to Scott Luton @ 678.296.5268 or [email protected]
• Join us for APICS Atlanta dinner meeting• April 18th, 2017
• Hosted by UPS World Headquarters
• Register @ www.apicsatlanta.org
• Join us for the next APICS Southeast District Webinar• “An Overview of the Shingo Assessment”
• Featuring Joanne Deys, VP/Global Sales & Operations Planning at Stanley Black & Decker
• Featuring Shaun Barker, Assistant Executive Director at the Shingo Institute
• April 4th @ 11am EDT
• Register @ www.apicssoutheast.org
• Join APICS! - - go to www.apics.org
How Can We Help?
