© 2017 IBM Corporation
FIATA World Congress 2017
Dee K. Waddell
Global Managing Director
Travel and Transportation Industries, IBM
Twitter: @deekwaddell
© 2017 IBM Corporation
© 2017 IBM Corporation
GDP Growth : Annual Average 2016-2020
Source: A.T. Kearney
© 2017 IBM Corporation
Top 10 Strategic Business Predictions (Gartner Report-2017)
Immersive Shopping ExperiencesBy 2020, 100 million consumers will shop in augmented reality. Voice First Browsing
By 2020, 30% of web browsing sessions will be done without a screen.
Mobile Apps DeclineBy 2019, 20% of brands will abandon their mobile apps.
Algorithms at WorkBy 2020, algorithms will positively alter the behavior of over 1 billion global workers.
Blockchain grows upExperiment to Projects - by 2022, a blockchain-based business will be worth $10 billion.
Digital Giants EverywhereBy 2021, 20% of all activities an individual engages in will involve at least one of the top-seven digital giants.
Innovation Requires Greater InvestmentThrough 2019, every $1 enterprises invest in innovation will require an additional $7 in core execution.
IoT Saves TrillionsBy 2022, IoT will save consumers and businesses $1 trillion a year in maintenance, services and consumables.
Wearables Cut Healthcare CostsBy 2020, 40% of employees can cut their healthcare costs by wearing a fitness tracker.
IoT Data Storage stays lowThrough 2020, IoT will increase data center storage demand by less than 3%.
© 2017 IBM Corporation
Express & Parcel
Continue To Grow
© 2017 IBM Corporation
At The Cost to Truckload CarriersBut Are Better Days Ahead?
Rates
Demand
DriverShortagesContinue
© 2017 IBM Corporation
Ocean Shipping Is In Flux
25%Overcapacity
Freight Rates
Recovering
© 2017 IBM Corporation
As Airfreight Is Looking For A Comeback
Rightsizing
Modal Confidence
© 2017 IBM Corporation
And Rail Is Forecasting A Turnaround
© 2017 IBM Corporation
Freight Forwarding : A Buyers Market
© 2017 IBM Corporation
Contract Logistics Seeing Good Growth
EfficiencyFlexibility
Geography
© 2017 IBM Corporation
Mergers & Acquisitions have been brisk…
And will continue…
© 2017 IBM Corporation
Logistics Entities Move Towards Sustainability
© 2017 IBM Corporation
Many technological breakthroughs loom on the horizon.
Autonomous Trucking
© 2017 IBM Corporation
Many technological breakthroughs loom on the horizon.
And Drone Delivery
© 2017 IBM Corporation
Other Trends Impacting FL Industry
Omni-channel continues to be
one of the hottest trends in
supply chain management
today. The FL client who adopt
early will be the winners
Collaborative relationships
wherein shippers and carriers work
together as partners rather than
transitionally as supplier and
vendor will change the FL
landscape
Autonomous vehicles, or
“driverless” vehicles technology is
poised to change the FL industry.
Volvo, Mercedes and several
other OEMs are piloting this
technology today
Global population and the
impact it has on logistics will
drive heightened awareness
for the need for sustainable
logistics
The Internet of Things will
continue to grow and evolve,
changing the game for things like
supply chain visibility, production
line, intelligence theft reduction
We will see more companies
move to autonomous robotics
supporting high-volume, light
load, goods-to-person operations
in the warehouse
Real-time visibility throughout
the supply chain, will allow
inventory to be replaced as it
is moved, and items produced
as they are bought
From data to information to
insights, the FL industry is far
behind the curve. New
technologies will allow even the
smallest of clients to actively
compete in this area
Distribution networks continue
to evolve along with global supply
chains.This to better support
timely fulfillment and the next day
delivery demands of today’s
consumers
© 2017 IBM Corporation
Global Trade Digitalization
© 2017 IBM Corporation
Manual, paper-
based processes.
Lack of Real-
Time information.
Banks
Key Challenges
Excess Inventory.
Manual, paper-
based processes.
Duplication of
Administrative
Process.
Importers and
Exporters
No single version
of ”the Truth”.
Manual, paper-
based processes.
Carriers
Manual Data
Collection.
Manual, paper-
based processes.
Forwarders
Collection and
Delivery Black
Holes.
Sub-optimal stack
placement.
Manual Data
Collection.
Ports
False Positives.
Lack of visibility
pre-manifest.
Lack of visibility
into land
movement
before/after
ocean transport.
Authorities
© 2017 IBM Corporation
Shared, replicated, permissioned
Port’srecords
Bank’srecords
Airline’s records
Ocean Carrier’s records
Authority's records
Airport’s records
… Consensus, provenance, immutability, finality
A secure shared ledger of key shipping events
The Blockchain Solution
© 2017 IBM Corporation
An open, extensible platform
for sharing shipping events,
messages, and documents
across all the actors and
systems in the supply chain
ecosystem.
Important principles• Detailed information remains under
the control of the owner
• Neutral
• Fault Tolerant
• Everyone can work in their own
systems
Provider of interface: value-add partners
Event publishers
& subscribers
GTDPlatform
Customs
Dashboard
Logistic actors
internal
systems
Supply Chain
Visibility
systems
Port community
systems
Transportation
management.
Shippers
Authorities
Trade Associations
Carriers
Supply Chain Actors
Terminals
Supply Chain
Management
© 2017 IBM Corporation
© 2017 IBM Corporation
FIATA World Congress 2017
Dee K. Waddell
Global Managing Director
Travel and Transportation Industries, IBM
Twitter: @deekwaddell
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