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Digital transformation in automotive supply chain


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comprehensive overview of current state vs. digitally transformed supply chain incl. megatrends such as internet of things, industry 4.0 and autonomous driving.

Published in: Automotive
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Digital transformation in automotive supply chain

  1. 1. Sept. 22 ,2016 Wiesbaden / Germany by Dr. Hans-Bert Bong
  2. 2. Agenda: ●About.. ●Automotive Supply Chain ●Automotive complexity ●7R+ in logistics ●SCM* challenges ●SCM* requirements ●Today's SCM* Track&Trace ●Industry 4.0 ●Digitally transformed SCM* ●Artificial dialogue ( internet of things) ●In-plant logistics ●More of the digital future * SCM : Supply Chain Management
  3. 3. About ● 5 years University research & development ● 26 years automotive OEM experience of which: ● 8 years in various positions in: ● Product development ● Production quality, ● Production management ● Manufacturing engineering ● New model program management ● ● 18 years in various logistics functions such as: ● Bill of Material and prototype management ● Finished vehicle distribution ● Material flow & packaging engineering ● Supply chain management ● Plant logistics ● Customs & foreign trade Est 2016
  4. 4. Automotive Supply Chain(simplified) S S S S S S S S S CC S S S CC S S S Assembly Plant Supplier Consolidation- Centre FCL / FTL LTL Milk-run CC S (C) 2016 Dr. Bong business consulting FTL: Full Truck Load; FCL : Full Container Load; LTL :Less than Truck Load Simplifications: ● Tier1 supply base only ● 1 customer plant only ● No de-consolidation centers ● No supplier parc ● No inter-plant supplies ● No trans-shipment shown ( e.g. in ports) ● No combinations of LTL / FTL / LTL, Milk-run and CC ● ... S
  5. 5. Automotive complexity Example: Saloon / Sedan ex Bavaria / Germany In addition : 20 alloy wheels, 17 exteriour colors, 13 interior colors & trims etc. Existing product offering based on 2016 German market option list engines&transmissions rearviewcam parcdistcontrolf&r lightassist linechangeassist activeprotect driveassist activecruisecontrolnormal/active surroundview parcassist speedlimitinfo adaptivessuspension heatedsteeringwheel airconautomatic steeringwheelsport,leatherorindivleather antitheftalarm keylesstrunkopenening greysunprotectionwindscreen sunroof sunblindsrear/sidemechorelectr towbar smokerspack memoryseats splitrearseat heatedseatsfront heatedseatsrear navigationsystems Radio/TV Headlampsnormal/LED/adaptive variablepowersteering RHD/LHD 1 100 10000 1000000 100000000 10000000000 1000000000000 1 million 1 million millions possible combinations (C) 2016 Dr. Bong business consulting
  6. 6. 7R+ in logistcs QC passed Part 4711-ab Qty 5 dest CGN Shipped ETA 02.00 pm Right part* at the Right time in the Right quantity with the Right quality* at the Right cost at the Right location with the Right information (C) 2016Dr. Bong business consulting * includes 8th R : right packaging $ 100 $ 100 $ 100 $ 100
  7. 7. SCM challenges customers expect short order to delivery customers expect more product offerings / individual cars complexity drives mass production towards batch size 1 high volatility in part requirements high flexibility in supply base to satisfy demand intercontinental suppliers need 4-6 weeks forecast conflictconflict Lean principles and JIT do not support storage ... (C) 2016Dr. Bong business consulting
  8. 8. SCM requirements Nible production high built complexity real time visibility of parts in supply chain flexible transport organisation (non-sequential) self-optimizing logistics and production schedules real time location & ETAs of transport equipment (trucks, containers, ships, trains) ... (C) 2016Dr. Bong business consulting
  9. 9. Today's SCM Track & Trace B Shipping LinesB Shipping Lines Scan Status msg Status msg Status msg Scan Parts status Data Characteristics: - Static - event based - batch - de-centralized (C) 2016Dr. Bong business consulting physical transport data flow MS B Status msg
  10. 10. Industry 4.0 (C) Dr. Bong business consulting Smart Factory Internet of things Cyber Physical Systems Autonomous driving Productivity / Efficiency Mechanisation Steam Power Assembly line Electricity Mass Production Computer & Automation WWW.
  11. 11. Digitally transformed SCM (future state) B Shipping LinesB Shipping Lines Data Characteristics: - dynamic - continous - live / real time - multi-way - centralized in cloud (C) 2016Dr. Bong business consulting W W W physical transport data flow MS B ADV : Autonomous Delivery Vehicle ( yet to be developed)
  12. 12. B Shipping LinesB Shipping Lines B Shipping LinesB Shipping Lines (C) 2016Dr. Bong business consulting W W W MS B ADV : Autonomous Delivery Vehicle ( yet to be developed) Box to Container: Hi , I'm box Xyz May I join you? Artificial Dialogue (internet of things) Cloud to cloud: I wonder how they did it in the past without me ? Plant to boxes and ADV: Welcome, come in ADV to boxes, plant and cloud: Hey guys, We're nearly thereContainer to Box: Hi , I'm Container BSL1 Come in, you're welcome Ship to Containers: Hi ,I need a bill of lading, what have we got today? somewhen on the journey..... Box to Container: Hey , do you know where we are? my customer wants to know ! somewhen later..... Container to Box: I lost signal but I'll ask the ship. we'll let you know, Cc the cloud Cload to all: Thanks to all, we made it! a modern fairytale: once upon a time....
  13. 13. In-plant logistics (C) 2016Dr. Bong business consulting 11 02 080696 1 5 16 4711 name: bearing ball KANBANID 4711-aa Store 4 Shelf 8a User : assy 23 # 240 Supplier balls ltd UK 3 of 6 A N D O N Digital Transformation Smart Flexible Autonomous Self-optimizing W W W
  14. 14. More of the digital future... Augmented reality ( e.g. for parts picking or assembly) 3D printing (production @ user site) (C) 2016Dr. Bong business consulting Skytrain south B Tower Ind Zone friendDeli Skytrain south B Tower Ind Zone friendDeli
  15. 15. (C) 2016Dr. Bong business consulting Video links :