Some conceptual views on iot in the supply chain

Some conceptual views on IOT in
supply chain
ECSCIA, European Centre of Supply Chain
Information Architecture

In its simplest form,
“IOT” allows for richer sensing.
Machines will be sending and receiving
more data from
more sensors more frequently.
(At lower cost and lower complexity)

All that that sensing and the “big” data it generates
is just one side of the change.
The other side is increased delegation to objects,
direct local interaction & decisions between objects
“autonomy”

“IOT” allows for local initiation and local
coordination of actions.
Objects can exchange data and decide upon
suitable actions based on rules as they meet and
handshake.
Objects will be able to “Seize the day”.

Reaping the benefit of local handshakes between
objects will require
changes to business models
as (some) actions will
no longer be pre planned
or centrally governed.

sense
Report
Recommend
Act
Handshake
Analyze
The tasks are the same, but….

There is a huge difference between IOTin
(”traditional”)
centralized business models and
the opportunity of IOT in
localizedbusiness models

Information ArchitectureECSCIA, European Centre of Supply Chain
Central without IOT
Current local
reality
Central
assumed
view of reality
Central view
on future
Central
decision
Central
action
local
action

Traditional business models are based on
Long term, centralcontracts / agreements
and centralplans being pushed down
on ”local”. ”Local” is standby for execution.
The whole setup is based on a paradigm where
execution occurs under/as a result of quite
detailed central supervision.

Central + IOT (IOT only sensing)
Current local
reality
Central
sensed
view of reality
Central view
on future
Central
decision
Central
action
local
action

When traditional business models first envision
usage and potentially adopt IOT, the
IOTcapability is positionedas a tool
toempower the old central model
by bringing in and analyzing
more data centrally
and then communicate top down directives
to execution which is still a standby function

Local + IOT (IOT ”smart”, autonomous mechanism)
Current local
reality
Local view on
future
Rules and
guidelines
Central view
on future
Central
monitoring
local
action
Sensed state
Local decision

IOT can be an enabler for less central directives.
The role of ”local” can be transformed from being
standby, only acting on/within detailed directives into a
model where ”local” actively looks for opportunity/need
and acts upon/within a set of rules
Central will still listen to and anlyze sensed ”big data”
but not to refine long term and detailed contracts/plans.
Central will instead use sensed information to formulate
rules that local execution can act within

Localdecision making, directly between objects allows for
more efficient resource usage

Make more money while lessening the load
on the planet.

To utlize the potential, business relations
can no longer
be predefined point to point on detailed
level.
IOT empowered objects require room to
capture opportunity

Autonomous?

The “old”, prevailing model does not allow the two object to resolve the situation
between them. The model relies on escalation to central.
I have
empty
shelves
I will plan
and order
I will approve
replenishment
I will execute

Hello
I am a display
stand. I have
empty shelves
Hello
I am a distribution object. I
can replenish shelves.
May I? Should I?
New business models…. Frameworks that allow objects to
resolve situations between themselves locally under rules, without traditional
escalation and communication chains. Bypass traditional business silos &
hierarchies, act off what is know locally within the constantly updated framework
IOT supports maintenance of.
Resolve

Hello
I am a container. I
have a destination
Hello
I am a ship. I can move containers. I
got room/ability to transport an
(additional) container
May I/ Should I?
Local, unplanned agreements directly between objects bypasses the traditional separation
and escalation required in traditional business models.
Example : Focus will be on overall logistics efficiency (full ship/optimization of the lane)
rather than individual contracted forwarder/shipping company. Focus is on the transport
lane, not the individual operator in that lane. Reaping that efficiency is in conflict with
existing business models where operators rather let a container wait for the next “own”
ship
Resolve

Forecast and optimization will still be
important, even more so…
but it will change
from the traditional,
aggregate/disaggregate top down model
and accelerate in frequency.

Go beyond sensors reporting data. Go beyond central
analytics. Start thinking “Smart things talking and
acting”
Think “Any thing talking to any thing”
Enable objects “to meet”
Enable objects to “Get to know each other”
Enable objects “to do together”

Objects are very many and different
Objects need to describe themselves and have some mandate
Theoretically, the “central” supplier and “central ”customer can handshake and share
the exact layout of objects in the ecosystem, the exact specs and capabilities of each
object.….In reality, such an approach is doomed to break down as the objects are
constantly changing from the bottom up.
Keeping “central” in sync with the actual local state within cost, skillset and tempo
is a challenge. Local objects will need to sync locally

IOT Choreography
IOT APIs
IOT Messages
I am
something
I can do
things
I have
states
I am
somewhere
I have a
layout
I can share
I listen I act
Automate
I am

Hello
I am thing 1011-
2233-9988
“I am” An IOT enabled thing needs to identify itself
Hello
I am thing 7711-
2663-1112

I am cooler
(fridge)
“I am something” An IOT enabled thing needs to describe itself on high level
I am cargo ship

I offer (my menu)
“I am something” An IOT enabled thing needs to describe itself on detailed level (layout,
features, restrictions, compliance…)
Four shelves
Shelf 1 is X Y Z large
Shelf 2 is…..
Max weight is….
I can generate
temperatures
between….
I offer (my menu)
Three loading bays
X square meters of
deck loading space
Bay 1 can hold
(Volume, weight X Y
Z)….
I can hold containers
I can generate
temperatures
between….
I am approved for
these types of goods
according to these
standards
Max sped 12 knots
Depth (full load) 3 m

I can do (my
catalogue)
“I can do things” An IOT enabled thing needs to describe its ability to act, the
services it support
I can store
I can open (be
opened)
I
I can refrigerate
I can move
I can be loaded by
crane
I can be loaded by
roll on
I can dock (without
assistance)
I can do (my
catalogue)

I can share
“I can share ” An IOT enabled thing needs to describe what information it can share
My position
My inner
temperature
My content
My engine energy
consumption
My energy
consumption
External
temperature
Door status
These statistics over
this period…
I can share my load
I can share my open
space (for additional
load)
My requirements on
quay/dock
My engine state
My position
My direction
My speed
I can share

I currently
“I have states” An IOT enabled thing needs to describe what states it is in
I am vibrating at
frequency…
My inner
temperature is…
My engine
temperature is…
My energy
consumption is…
External
temperature is…
Shelf 1 is 44 % free
Shelf 1 holds these
items
Loading bay 1 is
holding 300 tons
Tank 2 is holding
22000 liters
I am heading
compass bearing….
I currently

Some conceptual views on iot in the supply chain

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Some conceptual views on iot in the supply chain