Big data & Internet of Things
in Global Automotive Logistics
Automotive Logistics China 2016, Chengdu
INFORM I Leader in Optimizing Logistics What makes INFORM special: Optimization in logistics More than 550 employees - global projects - focus on automotive logistics HQ in Germany; revenue in 2015 €60 million Many automotive customers like
INFORM I Leader in Optimizing Logistics
Industry Logistics
Mathematical
INFORM I Leader in Optimizing Logistics
Industry Logistics
Mathematical
INFORM
INFORM I Worldwide Customers
INFORM optimization systems are used by more than 1,000 companies worldwide
INFORM I Worldwide Customers
Memphis Cargo Hub: 250 planes / 17 million parcels each night
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INFORM I Worldwide Customers
Hamburg CTB: Germany`s largest container terminal
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INFORM I Finished Vehicle Logistics
Yard / Compound Flow Optimization Regional / Global Distribution Networks
Road / Rail / Sea Transport Optimization
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© 2016 2015 – INFORM GmbH
e@logistics award 2008 of the German Automotive Industry
INFORM I Inbound Logistics
More than 50 car factories
More than 12.000 trucks per day handled by SyncroSupply
INFORM I Real time optimization technology in automotive
Automation & Innovation I How can it help supply chain managers?
1) Big data 2) Internet of Things 3) Physical Internet 4) Innovation in trailers, containers and racks 5) Make all pieces work together
New technologies I How can it help supply chain managers?
There is still a lot to win: 1) Global inventories
How reduce it with 20%?
2) Global transport cost
How reduce it with 20%?
- reduce waiting - reduce empty driving - reduce half empty trucks - reduce leadtimes
Big data I How can it help to reduce inventories?
Russia Germany
Hungary
USA
ADV (Areas
Shanghai Thailand
Taiwan
India
Panama
Distribution Center)
Venezuela
LDCs - in planning
Central warehouse (world-wide delivery)
Japan
South Korea
LDCs (Local Distributio n Center)
Malaysia Singapore
Brazil Argentina Chile
Potential commencement
Copyright INFORM GmbH 1991 - 2014
Australia
Big data I How can it help to reduce inventories?
Big data I How can it help to reduce inventory costs?
Availability
[%]
Service level > 99 % Stock – Availability
Stock value
CW 16 – CW 52
Sustainable stock reduction > 20%
Big data I How can it help supply chain managers?
1) Global inventories
How reduce it with 20%?
2) Global transport cost
How reduce it with 20%?
Big data I How can it help to reduce transport costs? Input: All possible locations, connections + rates from RFQ portal
…throw this at the optimizer…
Output: Least cost routing
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Big data I How can it help to reduce transport costs?
Plant
Port / Compound
Modification
Distribution Center
Transport Means
Dealer
Carriers Yardoperators Contract Conditions • Rates • Capacity Constraints • Lead & Dwell Times
• Transport Time • Emissions
Carrier Quality • Damages • On-Time performance
Operational Considerations • • • •
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© 2016 – INFORM GmbH
Number of Ports, Compounds Number of Carriers Compounds or Carriers for Regions Changes from Current Network
Big data I How can it help to reduce transport costs? • • • •
Build Scenarios according to different business criteria Compare savings potential for different conditions Analyze the impact of different weight on optimization criteria Analyze the impact of applying restrictions Baseline – Current Network
47,148,634 USD
Validate current network • Impact of rate changes • Impact of volume changes
Optimization Result 1
Optimization Result 2
41,989,001 USD
39,459,245 USD
Lowest cost scenario • No limit on changes • Low weight on transit times
Lowest risk scenario • Limit on changes • Focus on transit times
The impact of changing input and optimization conditions is fully visible
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Scenario33 Scenario Optimization …
© 2016 – INFORM GmbH
User defined Scenarios
Big data I How can it help to reduce empty driving?
1) From route optimization to balancing flows 2) From individual optimization to collaborative optimization 3) From own industry to inter industry
Internet of Things I How can it help supply chain managers?
1) Input:
Via smartphone app or handheld
2) Output:
From paper to smartphone/handheld
3) Planning:
From daily to minute
4) Accuracy:
From block to parking space
5) More self service:
E-gate at DC/factory
Examples today in logistics?
Internet of Things I How ensure cars are produced & delivered on time?
Internet of Things I How can it help supply chain managers?
1) In the factory at the production line 2) In the vehicle distribution center 3) In inbound logistics for incoming trucks
Internet of Things I How can all parts be on time at the production line?
Audi 180,000 move orders per day to supply the assembly line
Internet of Things I How can all parts be on time at the production line? „From ramp to assembly line“ plant border
Supplier
deliveries of large units Storage locations
Transport Service Provider
H12 H4711 ... ... B4513
Logistics Centre Supplier
Hub/Supplier
Systems Logistics Division
1 62345
1 2 3 4 5 6 7 8 9 10
picking zone
delivery of picked material
small-parts single delivery
JIT-deliveries
1 2 3 4 5 6 7 8 9 10
P r o d u c t i o n l i n e
Internet of Things I How can it help supply chain managers?
1) In the factory at the production line 2) In the vehicle distribution center 3) In inbound logistics for incoming trucks
Internet of Things I How are vehicle distribution centers changing?
2.5 million cars in 2015 in Zeebrugge port: largest car terminal in world User
40% growth since 2012 ICO is leading party: 1.7 million in 2015 in Zeebrugge
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Internet of Things I Every spot is pointed out to person and system
User
VW Mexico, Yard and Transport Optimization
Truck 17
Truck 48
Truck 11
Truck 76
Truck 37
Truck 12
Truck 30 Truck 31 Truck 46 Truck 07
priority units
fast mover slow mover
ByPack
CP 8
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premium cars Nave 38
Internet of Things I Person gets instruction via smartphone or handheld
Job assignment
Movements and inspections are triggered by orders
Resources are planned in an optimized way
Optimizer assigns automatically best order to driver
1 2
Damage Yard
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Minimize number of handled cars Minimize use of shuttles Minimize time and distances 29
Optimized Workflow
Internet of Things I Drivers can have Quick Check In
Self- check-in and check-out for automated gate processes
50% reduction in waiting
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Internet of Things I How can it help supply chain managers?
1) In the factory at the production line 2) In the vehicle distribution center 3) In inbound logistics for incoming trucks
Audi Quick Check In via Geofencing
Internet of Things I How create quick check in in factories?
Internet of Things I How much improvement can be realized?
Slotting
From 3 hours to 2 hours
Quick Check In
From 2 hours to 1,5 hour
650 trucks per day save 0,5 hour per trip using - Smartphone app - Paperless process - No stop at gate (automatic recognition based on geofencing)
Automation & Innovation I Physical Internet Initiative
http://physicalinternetinitiative.org
New technologies I Hardware
Stop with empty trucks in finished vehicle logistics
Stop with transporting empty containers
Stop with half full trucks
New technologies I Summary
Create global optimized logistics & help to reduce CO2 Big data
Internet of things Collaboration between companies and industries
New logistic tools - foldable container - convertible trailer - tools to fill trucks/containers better We need to combine all these pieces to solve the puzzle!
INFORM I More Information
Ruud Vossebeld Director Business Development Email
[email protected]
Phone
+31 6 54 677680 or +49 2408 9456 0
Internet
www.inform-software.com
INFORM I Finished Vehicle Logistics SyncroTESS CPS
Northamerica
Europe + Asia
UK
EU Network Planning
Valencia*
Lincoln China (Shanghai)
India: CVAP CVAP VMC SVAP, ports
Used in 22 locations 1.7 Mio. VIN in 2015 CPS + CMS CPS + CMS/VMC CPS
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Thailand: FTM *, AAT, ports
Southafrica FoA/FNZ (planned 2016)
© 2016 – INFORM GmbH
Thank you!
