Presentation: Add Value to the Supply Chain with IoT

Supply Chain Management Peer Group Meeting
Digital Transformation of the Supply Chain
May 08, 2018

organized by: UW E-Business Consortium

presented with Marc Blazich and our friends at: Centare

Add Value to the Supply Chain with IoT

This presentation reviews several applications that we have been involved with from the beginning of the supply chain, in the middle of the supply chain, and at the end of the supply chain and in different industries. I hope that we can get you fired up with ideas about how IoT can decrease costs, increase speeds, increase quality and improve your businesses by leveraging IoT in your supply chains.

When i ask people what they think IoT is ..the most common answer is connecting to things with your phone. In fact that type of 1-to- connectivity has been around longer that man could fly…Nikola Tesla presented is first remote control boat in 1898 that was controlled by the equivalent of the smart phone of the time…the telegraph.

I have a few words to characterized IoT
SCALE—millions of devices together..
DISTRIBUTED – processing at the sensor, gateway or cloud
SECURITY—without security everything would be broken or stolen
AUTOMATED WORKFLOW — computers are here to make things easier —not generate work for humans to sort out…

Example: Precision Agriculture

The supply chain of “Hamburger” begins with the production of cows…and before the production of cows comes the production of feed. More recently farming scientists have discovered that the particle size can vastly effect the ability for a cow to absorb the nutrition…too big and too small and a lot of grain exits the cow undigested. Total Mixture Ration (TMR) is the name given to feed where the particle size is carefully monitored and traditionally this is measured by hand with a stack of sieves. We are using our smart sensor to provide a not contact real-time measurement of TMR. This sensor impacts the costs of production directly. However, by aggregating this data into the vertical supply chain data from customers… the best TMR settings to provide maximum hamburger juiciness may be determined.

Example:  Vendor Managed Inventory

The balancing act between minimizing stock and inventory while still maintaining the correct type and quantity of parts to provide uninterrupted assembly can be a challenge. Vendor Managed Inventory (VMI) has been one solution to control costs. However, ebbs and flows of customer orders can disrupt the estimating systems commonly utilized by VMI companies. We are using our smart sensor to monitor actual quantities of parts used in real time. Currently, this is information is confined to the local assembly cell where it used to drive high-mix assembly processes. However, we are working to integrate this into ERP/MRP functionality with goal of driving inventory management from customer through to vendor. We are continually enhancing the classification capabilities with the vision of sensors that can differentiate parts and anomalies in inventory.

Example: Medical Adherence

The pharmaceutical manufacturing process is highly regulated right down to where products are delivered to consumers. 30% of prescriptions drugs are administered improperly resulting in a $300 billion healtcare problem that is the second largest cause of accidental death next to automobiles. Our smart sensor counts each individual pill that is removed from the container. When tied to the dosage schedule, SMS messaging and phone messing, it provides a closed loop on the supply chain that currently has a gaping hole of compliance and quality. It also has the advantage like VMI, to automate the replenishment process directly from pharmacy.

Example: Replacement Parts and Service

Tractors, cars, trucks, machine tools and other durable goods typically are sold through dealers where a significant source of revenue is derived from parts and service. IoT may be applied to maximum the effectiveness of the manufacturer-dealer relationship and supply chain. The simple hour monitor can be converted into a connected sensor and by combing it with a mobile applications as a recommendation engine a product can drive the sales of aftermarket parts. The product/application can order parts and schedule maintenance.

Take Away

  • IoT adds value to individual parts of the supply chain
  • IoT applied to individual parts of the supply chain can impact the whole
  • All portions of the supply chain may benefit from IoT
  • All supply chains in all industries may benefit from IoT

IoT Considerations for Supply-Chain Applications

  • Build local value by combining sensor, edge devices, gateways, workflow software and output devices into closed loop workflows.
  • Build value to entire supply chain by aggregating sensor data and implementing machine-learning and other closed loop workflows.
  • Consider Quality of Service, Security, and end-to end continuity of solution hardware and software
  • Consider Product Lifecyle, Quality Audit and Security audit capabilities of managed services

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