Internet of Things in Logistics

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Ask for a show of hands…how many in the audience are shippers? Suppliers or Consultants to Shippers?

Here’s the three things we’ll cover today:

We want you to walk away provoked – personally & professionally – enough so that you’ll think differently about your day-to-day tasks.

Many of you are probably familiar with the term “Smart Home”; Some of you may have this technology in your homes today.

Smart Homes are an example of the “internet of things,” and they are here today – not some distant future.

Studies repeatedly show that one of the most important IoT fields will be in Logistics and the Supply Chain.

In fact, the same Cisco study estimates the fields will make up $1.9 trillion at stake in IoT’s future.

There are many definitions of the Internet of Things, but we like to boil it down to this:

Let’s look at each part of that definition…

https://www.lordabbett.com/en/perspectives/equityperspectives/finding-growth-in-an-increasingly-digital-world.htmlion today.

Projections differ, but a conservative report estimates there will be 50 billion devices connected to the Internet by 2020, compared to 15-18 billion today

So that’s going from less than 1% of devices that could be connected to about 3%...what happens when it hits 30%!

Every one of these “things” will have it’s own IP address. Every device on the Internet is assigned an IP address for identification and location.

The new IP version 6 will allow up to 3.4 X 10 to the 38th power number of IP addresses – 340 trillion, trillion, trillion addresses.

There are many definitions of the Internet of Things, but we like to boil it down to this:

Let’s look at each part of that definition…

http://postscapes.com/what-exactly-is-the-internet-of-things-infographic

Connectivity is one thing, but smart connectivity is another, and that’s where Sensors come in. The sensors are like nerve endings in the body – we are building a digital nervous system.

A sensor on something can make that something “smart” – it can tell something else…

Know position
Detect motion, temperature, humidity
Sound, vibration
The presence of chemicals
Force, load or pressure
Leaks,
Electricity or magnetism
Acceleration

Structured & Unstructured data. Unstructured data might include weather or news reports, social media and trend analytics about events that could disrupt operations. That could be everything from the Japanese tsunami to the bankruptcy filing of a critical vendor

Average sensor prices have dropped to 60 cents from $1.30 in the past 10 years (Goldman Sachs).

Flexible

http://venturebeat.com/2015/02/07/how-the-internet-of-everyday-things-could-turn-any-product-into-a-service

If you think about all the different kinds of “things” in the world, you realize how innovative these sensors must be. They continually have to be flexible, like this product

This is a printable, flexible circuit/sensor created by Thinfilm Electronics.

Small

http://techcrunch.com/2015/11/23/chaotic-moon-explores-biometric-tattoos-for-medicine-and-the-military/?sr_share=facebook

Chaotic Moon, a software design and development firm based in Austin, Texas, is developing a high-tech tattoo made of components and conductive paint to create circuitry on the body.

The tattoo is temporary and washes off much like a temporary fashion tattoo.
Body temp
Sweat
Heart rate
Hydration

Use Low-energy blue tooth.

http://globalbiodefense.com/2013/03/13/electronic-sensor-tattooed-on-skin-as-real-time-health-monitor/

This was developed by researchers at the University of Illinois for health monitoring.

It’s a temporary stamp that lasts about two weeks, then flakes off like the natural process of exfoliation.

But somehow this data has to get to the Internet – it requires power and signal.

There are many definitions of the Internet of Things, but we like to boil it down to this:

Let’s look at each part of that definition…

For instance, Diageo could upload promotional offers while the bottle is in the shop but change that information to cocktail recipes when the sensors show the bottle has been opened at home.

http://www.diageo.com/en-row/ourbrands/infocus/Pages/diageo-and-thinfilm-unveil-the-connected-smart-bottle.aspx

This bottle has a “smart label” attached to it. It’s a printable-sensor created by ThinFilm that has NFC capabilities.

They will always know where this bottle is in the supply chain – location

They will always know it’s temperature.

Diageo knows when it gets into a retail outlet and can change the messaging that a consumer sees when they tap their phone to the bottle, like, “We have a special today – buy one, get one for half price.”

After you take it home, the bottle can tell Diageo if it’s been opened, and it could changes the messages, like, “Try this receipe.”

Think about all the data Diageo is getting through this product’s life cycle, and the customized experience the consumer is getting.

So all of this smart, connected stuff, talking to each other…is it a good thing?

Have we just gone too far?

http://www.gartner.com/newsroom/id/2819918

Gartner puts the Internet of things very clearly at the top of the “Peak of Inflated Expectations.” And by being here today, talking to you about this, we are clearly adding to those expectations.

But they are also projecting the IoT will reach the “Plateau of Productivity” in the next 5-10 years.

We categorize the impacts to Supply Chain in three parts:

What happens to “The box” -- the building itself.

What happens “Inside the Box” – the manufacture, movement and storage of products inside the building

What happens “Outside the Box” – transportation of goods

Energy & Sustainability

Predictive Maintenance

http://www.wsj.com/articles/cisco-tests-internet-of-things-in-its-supply-chain-1431554801?cb=logged0.13812174461781979

http://blogs.cisco.com/cloud/energy-management-and-the-factory-of-the-future

In one of the latest initiatives to get its own supply chain fully wired, Cisco has been installing thousands of sensors in a plant in Malaysia to monitor and reduce energy consumption. Mr. Kern said in an interview with The Wall Street Journal that the team leading the project believes that implementing the system throughout Cisco’s worldwide production sites will help reduce energy consumption by 20% to 30%, translating into tens of millions of dollars in cost savings.

The Malaysia project is a pilot program that is part of a $4 million fund the company established in which employees brainstorm and test projects to make the company more productive. The projects cover a wide range of supply chain issues and are relatively small-scale for a $47 billion company—the energy management project in Malaysia cost less than $700,000—with the understanding that most will fail. But those that succeed can provide innovative solutions and major savings, Mr. Kern said.

Material Handling Systems
Warehouse Control Systems
Warehouse Management Systems
Robotics

“Current research shows that 80 percent of logistics facilities today are still manual.” DHL

Distributors and manufacturers are challenged with keeping track of assets that are in almost constant motion. Without appropriate strategies in place to manage the tracking of equipment, supplies, and products, the likelihood of misplacing or losing valuable assets increases.

Utilizing real-time IoT devices eliminates manual data entry and automates tracking processes, reducing human error and insulating businesses from costly asset loss.

http://www.supplychain247.com/article/enter_the_smart_internet_of_things_warehouse/Zebra_Technologies

Lids, an Indianapolis company, sells fashion athletic headwear, team apparel and other fan novelties.

In the old days, order takers - known as pickers - would get a list of items and walk around the warehouse, looking for the right ones and loading them up in a tote. It took a long time.

Recently, however, Lids started using an Internet of Everything (IoE)- based robotic system and life has become a lot more efficient.

Now a list with items is automatically sent to cart-like robots, which retrieve the products, place them in bins, and deliver them to a worker.

The worker then loads the material onto a truck in the correct order. Sensors detect everything from a robot’s location to whether pallets are en route to the shipping dock and then wirelessly transmit that information to a remote monitoring team.

Fetch Robotics: E-commerce applications

http://fetchrobotics.com/

http://www.wsj.com/articles/dhl-unit-plans-google-glass-experiment-in-us-warehouses-1439568950?mod=WSJ_TechWSJD_NeedToKnow

Wearable computers like Google Glass never took off with consumers but the Internet-connected eyewear are finding their niche in the logistics industry.

Exel, the freight forwarding arm of Deutsche Post DHL Group’s supply-chain management business, is preparing to test “vision picking”— replacing handheld scanners and paper job orders with wearable “smart-glass” devices outfitted with warehouse management software—in two U.S. warehouses later this year.

The devices can tell workers the fastest route to find products and can read bar codes, which reduced the time needed to pick out an item and pack it for shipping by 25% in tests at a Dutch warehouse earlier this year, Exel says. The technology has the most application in e-commerce warehouses, where workers might need to find a handful of items out of more than a million individual products, the company said.

http://www.kansascity.com/news/business/technology/article15650132.html#storylink=cpy

As the nation’s overall repair needs reach the trillions of dollars, Sylvester and a coming generation of engineers hope to convert dumb old infrastructure into tech-rich traffic lanes, pipelines and utilities boasting brains tuned to the 21st century.

A highway project in the Netherlands uses solar panels and tiny windmills blown by passing trucks to store energy for embedded LED lights, allowing roadways to glow at night.
▪ Scientists are testing “self-healing” concrete designed to produce bacteria to fill cracks, according to the global engineering firm Arup.
▪ Some U.S. bridges are currently dotted with sensors that provide real-time data when the heaviest trucks, possibly illegally overloaded, rumble across.
▪ Drawing boards around the world include pavement threaded with heating elements to melt snow and roadside Wi-Fi to alert motorists to rough patches ahead.
▪ Many futurists expect that by 2030, self-driving cars will be wirelessly talking to one another and to the road itself, promising to make motoring safer, swifter and mistake-free.

http://www.supplychain247.com/article/how_the_internet_of_things_transforms_trucking/verizon_networkfleet

With falling costs for smart tags, pallets will talk to trailers, containers will talk to trucks and fleets could talk to fleets.

Telematics sensors in trucks and multisensor tags on items transmit data on location, condition and whether a package has been opened. Sensors that measure the capacity of each load can provide additional insight into spare capacity in vehicles.

The IoT data could then populate a central dashboard that focuses on identifying spare capacity on particular routes or destination pairs and analytics could recommend suggestions for consolidating and optimizing the route.

This additional visibility would create fleet efficiencies, improve fuel economy and reduce deadhead miles, which account for up to 10 percent of truck miles.

With each link connected to the cloud, there will be an unprecedented level of supply chain visibility from dock to dock and every step in between.

http://www.fastcompany.com/3031272/can-jeff-immelt-really-make-the-world-1-better

Measuring 73 feet long and weighing in at around 436,000 pounds, the Evolution drinks diesel from a 5,300-gallon tank

At roughly 220 tons, it is in many respects a hurtling computer. Its array of sensors and data-collecting devices complements its bulky mass with a sleek, digital agility that will grow only more impressive and more significant with time.

Its insides contain 6.7 miles of wiring and 250 sensors that put out 9 million data points every hour.

For example, GE has begun putting a radio-frequency sensor inside the locomotive's gear case to transmit data on oil levels and contaminants, and by parsing that data, Stokes says they should be able to predict the conditions that lead to axle failures.

"The goal is not just to take data I have today, but to go back and look at the data we have already and see if it shows we could have predicted a historical failure," Stokes says. His team would look at the broken-down locomotive and comb through its data banks to try to discern a pattern. "We want to turn that into an algorithm that helps us predict the future," Stokes explains. "We want to say: These three conditions, in this sequence, mean there's a 90% chance this failure will happen."

Structured data would include information generated by a system such as a purchase order, confirmation of the receipt of a shipment or a wave of orders created in a warehouse management system (WMS).

Unstructured data might include weather or news reports, social media and trend analytics about events that could disrupt operations. That could be everything from the Japanese tsunami to the bankruptcy filing of a critical vendor.

The second layer analyzes that information and makes decisions about what needs to happen next based on rules and protocols. That way, only the exceptions that fall outside the rules have to be handled by people.

The third layer includes the execution systems, like warehouse and transportation management, that put plans in motion and route orders to where they need to go. This is facilitated by workflow, decision support and intelligent agents in a machine-to-machine, management-by-exception environment.

An approaching third wave, enabled by data and analytics, does something new. It strikes an agreement between GE and a customer for a certain kind of outcome, rather than a certain kind of functionality.

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Internet of Things in Logistics

Jeff Risley

Internet of Things in Logistics