Mobile internet usage is rapidly growing, especially in Asia and emerging economies, impacting supply chains significantly. The combination of mobile technology and social media is driving process innovation, with supply chain software vendors making large investments in mobile solutions. Early adopters, such as consumer packaged goods companies and third-party logistics providers, are already reaping benefits from these mobile technologies.

1. Mobile Technologies and Supply Chain
Beyond the Perfect Order Metric Seminar
February 10, 2011
Adrian Gonzalez
Director, Logistics Viewpoints
Adrian@Logisticsviewpoints.com

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Key Takeaways
 Mobile Internet usage is and will be bigger than
most people think.
 Use of mobile technologies by consumers is
growing quickly, especially in Asia and emerging
economies. This will impact supply chains.
 Mobile + Social Media = Process Innovation
 Supply chain software vendors are investing
heavily in mobile solutions.
 Early adopters, including CPG companies and 3PLs,
are already achieving benefits.

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Consumers Much More Instrumented
“Today’s consumers are much more instrumented than their predecessors,
and they are increasingly ready to use these technologies to interact both
with retailers and with other consumers. Our research suggests that they
would like to use…mobile phones to find out where the nearest store is
located (75 percent), compare prices (71 percent) and check that the goods
they want are in stock before going to the store (66 percent).”

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Kraft Foods’ iPhone App
“Business will be mobile and supply chains
have to respond.”
Deborah Lentz, Vice President Customer Service and Logistics,
Kraft Foods Europe, at the CSCMP Europe 2010 Conference

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Mobile Internet Usage Is and Will Be…
…Bigger Than Most People Think!
Source: Mary Meeker, Morgan Stanley, Web 2.0 Summit, October 2009

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Mobile + Social Media = Process Innovation
Source: Mary Meeker, Morgan Stanley, Web 2.0 Summit, October 2009
Improvements in social networking and mobile computing
platforms…are fundamentally changing the ways people
communicate with each other ...

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Facebook & Twitter in SCM?

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Con-way Redefining Brokerage Process

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ARC Survey Results
Source: ARC Advisory Group web survey of 60 supply chain and logistics executives, May-Aug 2010
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Other
Active (battery-powered) RFID tags
Not using any mobile technologies
Passive (no battery) RFID tags
Wearable (hands-free) computers (e.g., Motorola)
In-cab computers
Mobile voice recognition headsets (e.g., Vocollect)
Telematics (engine and vehicle sensor data)
Environmental sensors (temperature, humidty, etc)
Global Positioning Satellite (GPS)
Mobile bar code scanners
Cellular networks (voice and data)
Handheld computers (e.g., Motorola, Intermec)
Smartphones (e.g., Blackberry, iPhone)
Mobile Technologies Currently Used in Supply Chain and Logistics Operations
N = 59
Smartphones are becoming a
ubiquitous computing platform

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ARC Survey Results
Source: ARC Advisory Group web survey of 60 supply chain and logistics executives, May-Aug 2010
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Other
To facilitate product recalls
To prevent/detect counterfeiting
To track, communicate, and execute transactions with/by merchandisers
To track the location/status of ocean containers
Not using mobile technologies
To enable end-to-end track and trace (including ePedigree)
To track the location/status of mobile assets (e.g., pallets, totes, cages, forklifts)
To enable direct store deliveries (DSD)
To track, communicate, and execute transactions with/by field technicians
To obtain environmental sensor data
To enable dynamic routing of trucks
To track the location/status of trailers
To obtain engine and vehicle sensor data
To better manage and track inventory (incl. lot #s, experation dates, etc.)
To enable just-in-time (JIT) operations
To track, communicate, and execute transactions with/by drivers
To communicate and execute transactions with suppliers, customers, partners
To access enterprise applications remotely (ERP, CRM, TMS, WMS)
To track, communicate, and execute transactions with/by warehouse workers
To track the location/status of trucks
Reason for Using Mobile Technologies Today
Mobile facilitates tracking, communication,
and process execution

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ARC Survey Results
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
To obtain engine and vehicle sensor data
To enable direct store delivery (DSD)
To obtain environmental sensor data
To track the location/status of ocean containers
To track the location/status of trailers
To track, communicate, and execute transactions
with/by drivers, field techs, or merchandisers
To track the location/status of trucks
To track the location/status of mobile assets
(pallets, totes, etc.)
To track, communicate, and execute transactions
with/by warehouse workers
To communicate and execute transactions with
suppliers, customers, partners
Use of Mobile Technologies at Your Company in 5 Years
More than today
About the same as today
Less than today
Source: ARC Advisory Group web survey of 60 supply chain and logistics executives, May-Aug 2010
Mobile expected to enhance communication and
collaboration with external partners

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ARC Survey Results
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Other
No benefits, not using mobile technologies
Cost avoidance by rejecting shipments that violated environmental specs
Increased sales (e.g., from enabling DSD or driver sales transactions)
Reduction of lost/stolen mobile assets
Faster payment cycle (e.g., invoice triggered by proof of delivery sent wirelessly)
Reduced downtime of vehicles via proactive maintenance
Improved safety performance (e.g., telematics data leading to less speeding)
Increased utlization of mobile assets
Enhanced security of goods in transit (e.g., geo-fencing)
Increased utlization of trucks
Increased on-shelf availability of product
Faster resolution to exceptions (due to enhanced real-time visibility)
Reduced lead times via enhanced visibility
Increased productivity of warehouse workers
Increased productivity of mobile workforce (drivers, technicians, etc.)
Improved customer service (e.g., enhanced visibility to order/shipment/service status)
Benefits Achieved Using Mobile Technologies
Source: ARC Advisory Group web survey of 60 supply chain and logistics executives, May-Aug 2010
Enhanced productivity is primary benefit of mobile!

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ARC Survey Results
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Other technologies are a better fit
Other
Inability to convince upper management of value
Lack of trading partner support (suppliers, customers, carriers,…
Too complex to implement and manage
Cultural change issues
Would require significant process changes to achieve benefits
Freeze on capital investments
Not compatible with ERP or supply chain software
Lack of global standards/protocols
Lack of business case
Too cost prohibitive
Biggest Inhibitors to Greater Adoption of Mobile Technologies in Supply Chain
Source: ARC Advisory Group web survey of 60 supply chain and logistics executives, May-Aug 2010
Cost is viewed as largest inhibitor to greater adoption

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Summary
 Mobile Internet usage is and will be bigger than
most people think.
 Use of mobile technologies by consumers is
growing quickly, especially in Asia and emerging
economies.
 Mobile + Social Media = Process Innovation
 Supply chain software vendors are investing
heavily in mobile solutions.
 Early adopters, including CPG companies and 3PLs,
are already achieving benefits.

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Thank You!
Adrian Gonzalez
Director, Logistics Viewpoints
617.529.9639
adrian@logisticsviewpoints.com
Go to LogisticsViewpoints.com to stay informed of the latest logistics trends, technologies, and services