I held this presentation in front of about a 200 audience on Jan 29th 2020 in Berlin at the annual Connected Manufacturing Leadership Summit in Berlin. I gave a deep insight on how IBM leverages AI within its own Supply Chain Operations and an outlook what will come in next 5 years.

1. Operating IBM’s
Cognitive Supply
Chain
—
Thorsten Schröer
Director
Automotive & Electronics Industry
IBM Corporation
January 2020
/thorstenschroeer

2. 50x2019 more SCM data than 2017
Data according IBM Institute of Business Value
80%is not searchable

3. IBM Supply Chain has been …….
System x
Printers
Harddisk
Semiconductor
PC & Laptop
Retail Store

4. …and is now….
Mainframe / Z Tape Library Software
Storage Disk Power

5. 8 Billion US$
revenue
IBM Direct Supply Chain
Fast Facts (2018 Data)
165,000+
Client orders managed
2,800
Supply Chain professionals
207,000
Replenishment orders placed
98%+
Client deliveries on time
412
Global Tier 1 suppliers
84,000
Part numbers received
28
Countries

6. Harmonized
Supply Chain
Transparent
Supply Chain
Cognitive
Supply Chain
Gain insights
Learn exponentially
Integrate globally
IBM’s Supply Chain Transformation Journey

7. Level of
augmented
intelligence
Locates and invites experts to join
21
Provides relevant information
Cognitive Butler
43
Run cognitive playbooks
Provide trade-off analysis
Cognitive Moderator
6
Personalized advise
5
Cognitive Advisor
Pro-active engagement
Our Journey to a Cognitive Supply Chain

8. 100% of workflows will be either automated or
augmented by intelligent machines.

9. Process
frequency
rules based
situational
exceptional regular
Identified critical workflows in each domain to start with:
Process
complexity
Processes which differentiate us – have high impact on our clients
Processes which require permanent decision making
Processes where we regularly make non optimum decisions

10. Inspection
Process
Planning
Response
Mgmt
Hot List
Tracking
(priority
deals)Supply
Allocation
E/S/Z
Mgmt
LTB / Buy
Ahead
Proposal
Supply
Assurer.
-> Subs
Order
priorities @
month end
SC Services
Bus. Dev.
EC Mgmt
Approvals
- Dev/SC
- Disposition
EC Release
/ Workflow
EC Process
Financial
Cost
Report.
Warrenty
Terms
Mgmt
Altern.
Warrenty
Process
Altern.
Warrenty
Process
Real Time
Cost
Mgmt
Assynchr.
Regen
Cycles
Planning +
avail. Parts
+ actualsSupply /
Demand
situation.
Sizings
Adoption of
ETN Supply
Capacity
Planning
(e.g. hires
needed) BOM
Reviews
Inventory
Planning /
MgmtDemand
/Supply
Execution
Supplier
Mgmt
BMA &
Rework
Process
Delivery
Expectat.
setting
Import /
Export
Compliance.
Import /
Export
Licence
Planning
DecisionsDemand
Conditionin
g
Operator &
Mainten.
training
Metrics
Dash
boards
Order
Entry
Process
PO Controls
@ Hubs
Physical
Location
Dock Del.
Demand
Planning
S/OP
Supply
Commit
Manual
repetitive
MFG
Process
TrackingTracing
Configure to
order
MFG
Assembly
Process
Tariff Fore-
casting
Process
frequency
rules based
situational
exceptional regular
Process
complexity

11. Process
frequency
rules based
situational
exceptional regular
Process
complexity
Inspection
Process
Planning
Response
Mgmt
Hot List
Tracking
(priority
deals)Supply
Allocation
E/S/Z
Mgmt
LTB / Buy
Ahead
Proposal
Supply
Assurer.
-> Subs
Order
priorities @
month end
SC Services
Bus. Dev.
EC Mgmt
Approvals
- Dev/SC
- Disposition
EC Release
/ Workflow
EC Process
Financial
Cost
Report.
Warrenty
Terms
Mgmt
Altern.
Warrenty
Process
Altern.
Warrenty
Process
Real Time
Cost
Mgmt
Assynchr.
Regen
Cycles
Planning +
avail. Parts
+ actualsSupply /
Demand
situation.
Sizings
Adoption of
ETN Supply
Capacity
Planning
(e.g. hires
needed) BOM
Reviews
Inventory
Planning /
MgmtDemand
/Supply
Execution
Supplier
Mgmt
BMA &
Rework
Process
Delivery
Expectat.
setting
Import /
Export
Compliance.
Import /
Export
Licence
Planning
DecisionsDemand
Conditionin
g
Operator &
Mainten.
training
Metrics
Dash
boards
Order
Entry
Process
PO Controls
@ Hubs
Physical
Location
Dock Del.
Demand
Planning
S/OP
Supply
Commit
Manual
repetitive
MFG
Process
TrackingTracing
Configure to
order
MFG
Assembly
Process
Tariff Fore-
casting
Augment/
Cognitive
Automate
AlertHands off - Eyes on

12. Cognitive supported IBM Supply Chain professionals
Resolution
Rooms
Ask
Watson
Event Watch
& Smart
Alerts

13. COGNITIVE
SC ADVISOR
360
Resolution
Room
Operation Center
Risk Review
Who are the customers that have the most sales dollars
on predicted late shipments.
Sam 10:44 AM
Have we experience this problem in the past?
Sam 10:44 AM
Show me the average inventory of the past 10 weeks for
part 46001 at MW WH..
Sam 10:44 AM
Watson 10:44 AM
There are 8 customers with predicted late shipments.
Here are the top 2:
- Aurora has 15 order(s), with total value of $24,673.04
- CityCool has 2 order(s), with total value of $12,442.94
Watson 10:44 AM
Here are the issues that seem most relevant:
- Battery shortage 4Q2016
- PET shortage for pats 1Q2017
Watson 10:44 AM
The average inventory of part 46001 in the past 10
weeks at MW WH is 163 units.
Watson Advisor
Watson
Cognitive
Supply Chain
Advisor 360°

14. 14
Blockchain in Supply Chain
Transparency & Paperless Trade
www.trustyoursupplier.com
www.tradelens.com

15. Supply Chain track trace
Crypto anchors & sensor data

16. Currents on Demand for
2.2 Billion
Points On Earth
Project Luci
“Logistics Utility with
Cognitive Insight”

17. April 2019 Edition
Artificial Intelligence (AI) in Supply
Chain: Threat or the game changer?
High Tech Supply Chainnovator Award
Manufacturing Leadership Awards

18. Future of Disruptive
Technology

19. 19
CIMONCrew Interactive MObile companioN

20. CIMON’s AI Components
„Brain“
Watson Assistant
„Eyes“
Watson Visual Recognition
„Ears“
Watson Speech to Text
„Body & Movement“
Airbus GNCS
„Nervous System“
IBM Cloud Data Center Frankfurt
„Emotions“
Watson Tone Analyzer
„Mouth“
Watson Text to Speech

21. 21

22. Quantum
Computing

23. 10.000 years 3 minutes

24. Chemicals & petroleum
Distribution & logistics
Manufacturing
Quantum @ Supply Chain & Manufacturing – Use cases
HORIZON 1
Structural design
& fluid dynamics
Materials discovery
Quantum chemistry
Surfactants, catalysts
Drilling locations
Oil shipping/trucking
Feedstock to product
Refining processes
Chemical product design
Network optimization
Vehicle routing
Consumer offer recommender
Seismic imaging
Irregular behaviors (Ops)
Freight forecasting
Disruption management
Distribution Supply Chain
HORIZON 2 HORIZON 3
Manufacturing Supply Chain
Process planning
Quality control
Fabrication optimization

25. ”Don't fear
intelligent machines.
Work with them”
Gary Kasparov, TED 2017

26. May 4 – 7
Moscone Center
San Francisco, CA
think 2020
ibm.com/think
ibm.com/watson