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The Next BIG Thing in SCM - AI @ CSCMP Barcelona
Thorsten Schröer discusses the transformative impact of artificial intelligence (AI) on supply chain and manufacturing at the 2017 CSCMP European Conference. He outlines how IBM has evolved into a cognitive solutions and cloud platform company, emphasizing the integration of AI in their operations for enhanced efficiency and transparency. The presentation highlights substantial benefits from AI deployment, including over $100 million annually from supply chain analytics solutions.
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The Next BIG Thing in SCM - AI @ CSCMP Barcelona
- 1. The next BIGthing in Supply Chain and Manufacturing - Artificial Intelligence?! Thorsten Schröer Director & Industry Leader IBM Watson IoT @ThorSchroeer Thorsten Schroeer CSCMP SUPPLY CHAIN LEADERSHIP FORUM EUROPEAN CONFERENCE 2017 Barcelona, Spain May 19th, 2017
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- 3. 3 >1890 Tabulating 1960Programmable >2010 Cognitive
- 4. >80% of alldata is dark and not used at all 20172013 2020
- 5. IBM, Google, Facebook,Amazon und Co tun sich zusammen
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- 9. 9 AI / Watsonin IBM’s Supply Chain Operations
- 10. ©2016 IBM Corporation10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 5 9 13 17 21 25 29’60 ’90 ~$2B Hardware and Systems Management A hardware company through 1990 … the emergence of Services Database and Middleware Services (including Maintenance) IBM Revenue Mix IBM Revenue
- 11. ©2016 IBM Corporation11 Hardware-Software-Services company…a dramatic transformation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 5 9 13 17 21 25 29 IBM Revenue Mix Services Financing Hardware and Systems Management Middleware Analytics Platforms Cloud IaaS/PaaS Security Software “Platforms” ’60 ’90’60 ’90 ’00 ’10 ’14
- 12. ©2016 IBM Corporation12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 311 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 5 9 13 17 21 25 29 We are becoming a Cognitive Solutions & Cloud Platform company IBM Revenue Mix ’60 ’90 ’00 ’10 ’14 Cognitive Solutions Services Cloud Platform Middleware Analytics Platforms Cloud IaaS/PaaS Security Financing Hardware and Systems Management
- 13. IBM Supply chainhas been also……. Printers Retail StoreSemiconductor System x PC & LaptopHarddisk
- 14. …and is now…. Mainframe/ Z Storage Disk Tape Library +15k People Software Power
- 15. 15 IBM Supply Chain GlobalSystems & Solutions Fulfillment Network
- 16. Solution Centers Guadalajara Poughkeepsie Vac, Hungary Singapore Global Systems& Solutions Fulfillment Network Manufacturing locations 2015 Revenue Supported: $81.7B 18K+ suppliers connected online $7B in procurement saving annually 100% Purchase Orders electronic >96% of Invoices electronic Over 3.9M visits to eTools
- 17. Globally Integrated Enterprise 2005 onwards Transparent SupplyChain up to 2015 Cognitive Supply Chain >2015 § Enterprise efficiencies § Streamlined Global processes § Information sharing § Advanced Analytics, Optimization, Data Management § Supply Chain Transparancy § Network Orchestration, Trusted Transactions § Cognitive / Learning § Agile / Resilient/Mobile § Data Driven /Digitally Executed
- 18. We have deployedover 30 supply chain analytics solutions with $100M+/year in benefits.
- 21. 21 Part# 50W3214 QTY 100pieces Status: damaged Part# 48Y5324 QTY 500 pieces Status: usable but delayed Super-Taifun Meranti Quelle: dpa / 15.09.2016
- 22. © 2016 IBM Corporation 22 1 Identify& Alert 2Analyze & Understand 3 Interact & Resolve 4 Learn
- 23. off-load customer orders Runmanual process work-arounds chase supply shape demand pull additional parts stop shipments adjust mfg capacity adjust test times prioritize customer orders pre-build orders alert CF on late deliveries substitute parts start unfirm orders / parallel assets switch shipping lane expedite inbound logistics adjust forecast install 3rd shift 23
- 24. 24 ALL EXPERIENCE INONE ROOM – our original plan but we course corrected © 2016 IBM Corporation
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- 26. 26 SITUATIONAL AGILE TEAMS- DEMOCRATIZED EXPERTISE © 2016 IBM Corporation
- 27. Pulse Points in ourSupply Chain DEMAND / FORECAST SUPPLY / INVENTORY ORDERS ServiceabilityServiceability Multi Tier Critical Parts Uncovered Supply Hub Health Delivery Progression SC Risk Quality Early Warning 27
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- 29. Watson Supply Chain- Training
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- 33. Hands Off –Eyes On
- 34. IBM Supply Chain’sCognitive Journey… Cognitive Butler Cognitive Moderator Cognitive Advisor take minutes locate, suggest, and invite available experts Identify similar scenarios Provide relevant information Run cognitive playbooks Dynamic, personalized, real-time Supply Chain Expert on hand Provide Options
- 35. 35© 2016 IBM Corporation We teach WatsonSupply Chain. Test OperationDemand Planning Supply Order Mgmt Quality
- 36. #CognitiveSupplyChain Augmenting Supply ChainDecisions Supply Chain Professionals We teach Watson. We program Advisory. Operation Center Alerts Resolution Room We use IBM’s Cognitive Data Lake We utilize Enterprise Data Sources. 36 © 2016 IBM Corporation We gain insights from IoT. We upload Data into Watson Analytics. We analyze data recorded in Blockchains Watson Q&A
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- 41. Visual Inspection –Image Analytics Blistering Defect of Paint LCD Panel Inspection Mobile phone chassis inspection
- 42. Acoustic & NoiseAnalytics
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- 44. The next BIGthing in Supply Chain and Manufacturing - Artificial Intelligence?! Thorsten Schröer Director & Industry Leader IBM Watson IoT @ThorSchroeer Thorsten Schroeer CSCMP SUPPLY CHAIN LEADERSHIP FORUM EUROPEAN CONFERENCE 2017 Barcelona, Spain May 19th, 2017