I gave this presentation at Global Smart Manufacturing & Process Automation Conference by Conferenzia in June 2021.

1. Operating IBM Cognitive
Supply Chain with AI, IoT,
Cloud, Blockchain and
Quantum
Thorsten Schröer
IBM Industrial Sector
June 11th. 2021

2. Let’s start a poll
Cross industries, what do
you think is the single one
key technology driving
revenue shifts during
COVID-19?

4. 4
Business segment revenue 2020 in million USD
Hybrid Cloud & AI
Company
IBM Corporation
Cloud and Cognitive Software
Global Business Service
Global Technology Services
Systems
Global Financing
Other
23,376
16,162
25,812
6.978
1,123
169
Total revenue
73,620
CEO
Arvind Krishna

5. IBMs Supply Chain has been… and is now systems and parts
System x
Printers
Harddisk
Semiconductor
PC & Laptop
Retail Store Mainframe / Z
Tape Library Software
Storage Disk
Power

6. IBM
Supply Chain Landscape
Part-Numbers
84k
received
Supply Chain
Professionals
3k
world-wide
Client-
Deliveries
98%
on time
Client-Orders
165k

7. < 2015
Harmonized
Supply Chain
2016-2018
Transparent
Supply Chain
>2019
Cognitive
Supply Chain
Gain insights
Learn exponentially
Integrate globally
IBM’s Supply Chain Transformation Journey

8. Manage operations in Covid 19 times.
Supply Chain disruption is not a new phenomenon.

9. Eyjafjallajökull

10. “In our supply chain we are leveraging AI, Blockchain and
IoT Technology to drive faster and smarter decisions with
our suppliers.
This makes our supply chain more flexible and resilient.‘’
Jim Cavenaugh, IBM CFO
April 2020 Analyst Meeting

11. Our Top 3
challenges

12. #1
Lack of real-time
information

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

14. #2
Inefficient,
manual supply
chain processes

15. Process
frequency
rules based
situational
exceptional regular
Process
complexity

16. 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 +
actuals
Supply /
Demand
situation.
Sizings
Adoption of
ETN Supply
Capacity
Planning
(e.g. hires
needed) BOM
Reviews
Inventory
Planning /
Mgmt
Demand
/Supply
Execution
Supplier
Mgmt
BMA &
Rework
Process
Delivery
Expectat.
setting
Import / Export
Compliance.
Import / Export
Licence
Planning
Decisions
Demand
Conditioning
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
Tracking
Tracing
Configure to
order
MFG
Assembly
Process
Tariff Fore-
casting

17. 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 +
actuals
Supply /
Demand
situation.
Sizings
Adoption of
ETN Supply
Capacity
Planning
(e.g. hires
needed) BOM
Reviews
Inventory
Planning /
Mgmt
Demand
/Supply
Execution
Supplier
Mgmt
BMA &
Rework
Process
Delivery
Expectat.
setting
Import / Export
Compliance.
Import / Export
Licence
Planning
Decisions
Demand
Conditioning
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
Tracking
Tracing
Configure to
order
MFG
Assembly
Process
Tariff Fore-
casting
Augment/
Cognitive
Automate
Alert
Intelligent Workflows

18. 18

19. • Covid-19 trained Q&A
’’Watson, show me all tier 1 supplier
with MFG location in Japan.’’
’’Watson, show me all MFG location
information for component PN 77P8389’’
’’Watson, show me the current
inventory of PN 77P8389’’
• Data platforms enable cross-functional analysis
Sample:
Multi-Tier
Supply Risk
IBM Supply Chain / © 2021 IBM Corporation
What are the results?
’’What took hours and days of manual work in the past is now a
matter of seconds.’’
Director of Supply Assurance

20. Workers Safety
• Social Distancing Scoring
• Elevated Body
Temperature Monitoring
• Face Mask Detection
2
IBM Supply Chain / © 2021 IBM Corporation

21. IBM Systems Manufacturing Use Cases with AI and Edge
Finished Production Inspection
Incoming Parts
Inspection
MFG Operation Monitoring
Test Operation Monitoring
IBM Confidential
21

22. #3
Incomplete
supply chain
data
www.trustyoursupplier.com
www.tradelens.com

23. Our Transformation enabled
us to operate our supply
chain during the Pandemic -
better than our competitors.
Inventory
Cash Management
Supplier Management
Total Cost
Client Satisfaction
Revenue

24. Artificial Intelligence (AI) in Supply
Chain: Threat or the game changer?
Manufacturing Leadership
Awards
High Tech Supply
Chaininovator Award

25. Whats helped us to succeed?
Strong culture of innovation
Skills & Talent
Data & Technology
Method, Tools and Accelarators
(e.g. AI Design Thinking &
Garage)

26. What’s next?

27. Quantum Computing
Supply Chain Use Cases
Manufacturing Supply Chain
Quality Control
Distribution Management
Network Optimization
Vehicle Routing
Freight Forecasting

28. AI@Manufacturing
collaboration with
clients

29. Visual Inspection
at the edge with
SPOT Robot

31. Hybrid Cloud & Edge
Ensures infrastructure is
in the right place, and the
right data is always
available
Blockchain
Drives security,
provenance, multi-
enterprise visibility and
info sharing
Artificial Intelligence
Makes supply chains self-
learning and adaptive
In Summary
Quantum
Solves Problems that could
not be solved previously

32. „THE SUPPLY CHAIN
STUFF IS REALLY TRICKY“
Elon Musk, CEO of Tesla and SpaceX
Jan. 2018
© US News & World Report

33. Operating IBM Cognitive
Supply Chain with AI, IoT,
Cloud, Blockchain and
Quantum
Thorsten Schröer
IBM Industrial Sector
June 11th. 2021