1. How the innovation is driving the always on supply chains
Accelerating Change
Alberto Joel Martinez CPIM CSCP
Presidente APICS Capitulo Mexicali
Noviembre 2016
Based on the 2016 MHI Industry Report
www.mhi.com

2. Agenda
What is the Always ON Supply Chain
Examples of Old and New SC
What is driving The digitalized supply chain and challenges
8 technologies driving the always on supply chain
Examples of each tech
Suggestions for the leaders
How to prepare here in the Region
Q&A
Accelerating Change

3. The Always “ON” Supply Chain
An integrated set of
supply networks
characterized by a
continuous high velocity
flow of information and
analytics creating
predictive actionable
decisions to better
serve the customer

4. Integrated supply chain
Apple has the best
supply chain for 10
consecutive years per
the Gartner research
group, they been
elevated to Master
Supply category

5. Disrupting the business model
Technology driven
innovations
Computing power
Artificial Intelligence
Moore’s Law
The iphone has 1000 more
computing power; than the
computers that put a man
on the moon

6. From physical to digital
Information as a key asset
Geo space not as Important
A.I. do the data mining
Consumers create data
To Generate:
• Predictive Analysis
• Streamline Ordering
• Anticipatory Shipments

7. Eight disruptive technologies
1. Predictive analytics
2. Robotics and automation
3. Sensors and automatic identification
4. Wearables and mobile technologies
5. Driverless vehicles and drones
6. Inventory network and optimization tools
7. Cloud computing and storage
8. 3D printing

8. Key Survey Data

9. Predictive Analysis
Competitive Advantage for Breakthrough Performance
What to do ?
Research what companies are doing, what’s working ?
Determine ROI of predictive analysis to replace a legacy system
Start Small and work with IT to determine benefits and cost
Listen to the voice of the customer
Is an enabler to the always on supply chains
It difficult to figure out, but once performed will bring great benefits
Has the potential to be a disruptive force in your industry
There is today an abundance of data not used especially in supply chain

10. What we need to know
Data only is valuable if it
modifies future actions
• Improves the learning
process
• Moves from hindsight to
foresight
• Has a clear ROI
• Improves customer
experience

11. Robotics and Automation
Big Cool Robot – Small Collaborative Robot
What to do ?
Proceed with caution – challenge engineers to be clear in vision
Go slow, several short steps of a complete automated lights out
Develop your talent strategy, New roles and skillsets needed
Talk and chose the correct partner for robotics implementation
Rise of collaborative robotics – must have alignment to companies vision
Safety issues resolved as robots sense humans
Will replace an assembly worker – Cost benefit is a must.
Improved quality reduces variations speeds the process

12. Sensors and Automatic Id
The Internet of Things for Manufacturing
Is a suite of technologies – sensors, communication devices, servers,
analytical engines, devices that can automatically identify items and
decision making aids- that have the ability to link the physical and
information worlds more together, expanding ways to generate value

13. Sensors and Automatic Id
What to do ?
Chart a course based on leading practices from others
Consider sensors and applications to support an always on supply chain
Identify supply chain challenges can be solved by the IoT
Consider the cost of not investing, and possible positive impact on customers
The customer preferences are always being monitored
More sensors = More data (Cost for sensor have decreased )
Real world applications are now being utilized by mayor retailers
Increased visibility with traditional (RFID – Intelligent tags – GPS)
Sensors Drive Supply Chains

14. The Internet of Things (IoT)

15. Wearables and Technologies
On the Warehouse smart glasses
What to do ?
Chart a course based on leading practices from others
Consider sensors and applications to support an always on supply chain
Identify supply chain challenges can be solved by the IoT
Consider the cost of not investing, and possible positive impact on customers
Devices that incorporate in clothing or accessories that can be worn
Wearables enhance existing technologies
Supports hands free – censoring and scanning
Still need to develop enhanced ecosystems for full integration

16. Driverless vehicles and drones
More at www.deloite.com/us/thefutureofmobility
What to do ?
Explore possibilities, start preparing today for tomorrow
Look for cross industry opportunities or share transportation
The 4 future states of technology
1 Incremental Change adaptation cost per mile $1.00 Dlls
2. A World of car sharing Cost per mile $0.65 Dlls
3. A Driverless revolution Cost per mile $.045 Dlls
4. New age of accessibility and autonomy $0.35 Dlls

17. The rest
Inventory network and optimization tools
WMS – SOP – CRM – 3PL – SCEP
Focuses on integration
Cloud computing and storage
Critical in new roles, access to all data form anywhere
Works as an enabler for all new technology
3D printing
Additive process changes form subtractive manufacturing
Reduces cost of supply chain (Lead time and Inventory)

18. What we need to know

19. Suggestions for Leaders
Invest, Test and Learn ( Technology and knowledge)
Partner with solutions suppliers
Determine where to start and how current data needs to be
Make sense of data, so that you can act on it
Bottom Line:
Talent management is key need to start thinking how
technology affect our lives today and how it will be affected in
the next 20 years

20. To the leaders of the Region
How can we stay competitive ?
Review current technologies in the local market
Invest in developing people and learn to collaborate
CSCP – SOP Continue to be key for success
Train to reduce cost – Eliminate waste
Be prepared to show the value of Mexico and our people

21. Here to support – Questions ?