OCTOBER 2017 Digital Supply Networks · Dynamic Network Load Balancing & Synchronization Demand &...

Digital Supply Networks

O C T O B E R 2 0 1 7

2 | Copyright © 2017 Deloitte Development LLC. All rights reserved.

DISRUPTION SPANS ALL INDUSTRIES

Exponential Technology Change… …Disrupting Supply Chains Across All Industries

1992

$1,245 per Gbps

<$10Bandwidth

$222 per million transistors

<$0.06Computing

<$0.01

$569 per GB

Storage

Cos

t of

Per

form

ance

Today

Source: Deloitte University Press


OUR 4TH AND CURRENT INDUSTRIAL REVOLUTIONPower Generation Industrialization

Electronic Automation

Digital Supply Networks

Late 18th century

4th Industrial Revolution

1970s to 2000s

Early 20th century

Optimize Traditional Objectives…Cost Innovation Service

Quality Safety Flexibility

…By Better ManagingVisibility Variability

Volume Velocity

…and New Objectives…

Revenue


Sensor-driven Replenishment

3D Printing

TRADITIONAL SUPPLY CHAIN

EVOLVING THE SUPPLY CHAIN TO A DIGITAL SUPPLY NETWORK (“DSN”)

Develop Plan Source Make Deliver Support

Quality SensingCognitive Planning

DIGITALCORE

DigitalDevelopment

SmartFactory

Dynamic Fulfillment

Synchronized Planning

IntelligentSupply

ConnectedCustomer

DIGITAL SUPPLY NETWORKS


DIGITAL SUPPLY NETWORK TECHNOLOGIES

Additive Mfg& Advanced Materials

Robots & Autonomous Vehicles

Augmented / Virtual Reality

Robotic & Cognitive

Automation

Digital Scanning

ERP, PLM, & Structured Systems

Cellular, Satellite, &

Wi-Fi Comms

Signal Ingestion &

Cloud

Edge Computing

OT Security IT Security

Machine Controls & APIs

Visualization, UX, & Mobile

Sensors & Wearable Technology

Data Science & Algorithms

Machine Learning

Deep Learning & AI

Natural Language Processing

Video & Spatial Analytics

Blockchain & Cryptography

Physical Digital


The biggest roadblocks organizations face in beginning a digital pilot are…

Source: SCM World 2017

45.2%

19.4%

9.7%

9.7%

6.5%

17.7%

Lack of an overall roadmap

Lack of a priority based on other initiatives

Lack of a budget

Lack of a clear use case

Lack of direction from leadership

Others


THE COMPLEXITY BARRIEROvercome complexity and enabling Next Level of Lean Manufacturing

Lean 4.0 Optimization Curve

Deg

ree

of O

ptim

izat

ion

Effort of Optimization

Traditional Lean Optimization

Curve

Next Level of Lean Optimization

Curve

ComplexityBarrier

PokaYoke

SMED2

VSM1

TPM

5S

JIT

1) VSM: Value Stream Mapping 2) SMED: Single Minute Exchange of Die

Complexity Challenges:

• Higher degree of product individualization

• Increasing product complexity

• Greater variety of variants

• Demand for high flexibility

• Limited usability of classic Lean optimization methods

Next Level of Lean Manufacturing:

• Use Industry 4.0 as a suitable "tool" to enrich classic Lean

• Build up integrated optimization solutions

• Pursue the economic useful instead of technical possible

…

Δ

Only the development of an integrated bundle of useful digital options and use cases

will release the complete potential of Industry 4.0


Digital Development

Smart Factory

Dynamic Fulfillment

Synchronized Planning

Intelligent Supply

Connected Customer

Model-Based Design & Manufacturing / Design for Manufacturing Innovation

Autonomous Transportation

Advanced Worker Solutions

Predictive Maintenance

Material / Asset / Product Tracking & Visibility

Store Operations

Efficient Return Management

Autonomous & Augmented Factory Automation

Control Tower (End-to-End Visibility)

Smart Connected Products / Real-Time Product Intelligence

Robotic & Cognitive Automation

Additive Manufacturing

Real-Time Collaboration & Integration (Partners & Products)

Dynamic Network Load Balancing & Synchronization

Demand & Supply Sensing & Synchronization

Predictive / Sensor-Driven Replenishment

Quality Sensing & Prediction

Automated Purchase-to-Pay

Cognitive Source-to-Contract

Pro-Active & Collaborative Supplier Management

Design Simulation

Design for Cust. Exp.

Optimize product lifecycle management with advanced

digital tactics

Provide significant efficiencies through

synchronization

Reduce costs through new advanced technologies, models, and capabilities

Unlock new efficiencies by a more connected, agile, and

proactive factory

Boost customer service through new levels of speed

and agility

Create seamless customer engagement from inspiration

to service

Intelligent Procurement Operation Management

Environmental & Social Impact

Adv. Plan & Sch. Optim.

Personalized Fulfillment

Autonomous & Augmented Warehouse Operations

Cog. Spend Analytics

Should-Cost Modeling

DIGITAL SUPPLY NETWORK CAPABILITIES


DIGITAL PD CAPABILITIES, TRANSFORMED BY DIGITAL ENABLERS, HELP UNLOCK AMPLIFIED BENEFITS TO ORGANIZATIONS

Digital PD Capabilities

Smart Real-Time Data

Advanced Technologies

Agile Innovations

Digital Enablers

Real-Time Collaboration

Design for Mfg.

Innovation

Real-Time Product

Intelligence

Model-Based Manufacturing

Design for Customer Experience

Rapid-Design

Optimization

Model-Based Product

Definition

Connected Customer Experience

1

2

3

45

6

7

8

123

Increase Market Share by 20% - 30%• Improved customer experience with individualized design• Integration of IoT, sensors / data-driven design enhancements•Open innovation / customer co-creation

Speed up Time-to-Market by 50%•Concurrent engineering / Real-time Collaboration•Rapid prototyping and virtual design simulation• Improved R&D / engineering organizational Efficiency

Reduce Cost by 20-50%•Product portfolio rationalization•Reduced material and labor spend through manufacturing innovation•Less inventory

Increase Productivity• Improved impact analysis of requirements changes• Improved interaction across a multi discipline team•Reuse of existing models to support design and technology evolution•Auto-generation of design documentation

Improve Design Quality•Early identification of requirements issues•Enhanced system design integrity•Fewer errors during integration and testing•Consistency in design approach across programs

Po

ten

tial

Bu

sin

ess

Imp

acts

Po

ten

tial

PD

En

han

cem

ents

Enhance Communication and Visibility•Reduced communication barriers across regional and functional barriers•Real-time collaboration with a digitized footprint as single source of truth•Early, and on-going, requirements validation and design verification


PACE OF CHANGE IS ACCELERATING, YET FOUNDATIONAL ELEMENTS ARE SLOW TO REACT


FOCUS DRIVING FORWARD• Identify capability gaps• Establish new recruiting techniques • Refresh retention and development tactics

• Embed security as a central theme• Remember importance of OT security • Develop emergency mitigation plan

• Lean on your partners for insights and recommendations• Share risk and be open to co-development• Facilitate open communication across all functions & areas

• Link insight strategy to business strategy• Prioritize pilots with short time to value• Apply innovative science to the old problems

• Apply agile tools (e.g. cloud) and approaches at every turn • Remember that speed matters • Don’t be afraid to ‘fail fast’ and ‘fail forward’ to grow

Workforce Skills & Capabilities

Enable Agile Systems Development & Deployment

Develop Ecosystem of Supply Chain & Technology Partners

Identify Data Analytics Opportunities

Manage Cyber Security Risk


THANK YOU.

Stephen LaaperPrincipalDeloitte Consulting [email protected]

www.deloitte.com@DeloitteStratOp

mailto:[email protected]

OCTOBER 2017 Digital Supply Networks · Dynamic Network Load Balancing & Synchronization Demand &...

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