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Innovation in logistics | CoreTeka

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Cases: how technologies help to solve business problems in logistics.
Blockchain in logistics
Big Data in logistics
3D printing in logistics
Chat-bots in logistics
Internet of things in logistics
Sharing economy in logistics
Self-driving vehicles in logistics
Drones in logistics
Computer vision in logistics
AR/VR in logistics
Machine learning in logistics
Omnichannel in logistics

Published in: Automotive
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Innovation in logistics | CoreTeka

  1. 1. Cases: how technologies help to solve business problems in logistics Alex Isachenko, CEO, Managing Partner, CoreTeka +380 93 570-56-28, isachenko@coreteka.com
  2. 2. FOCUS CoreTeka focuses on three main categories: Retail, Transportation, Automotive. Retail Transportation Automotive
  3. 3. CONTENT • Blockchain • Big Data • 3D printing • Chat-bots • Internet of things • Sharing economy • Self-driving vehicles • Drones • Computer vision • AR VR • Machine learning • Omni channel
  4. 4. Blockchain
  5. 5. BLOCKCHAIN IN LOGISTICS Blockchain technology in logistics gives the possibility to avoid unnecessary mediators, save costs, reduce the amount of paperwork and provide security by reducing the number of errors and frauds. • Smart Contracts • Tag and track system • Safe transactions • Real-time feedback from consumers • Supply chain certification • Integrating payments • Fraud prevention
  6. 6. CASE: IBM & WALMART Walmart and IBM have collaborated on several pilots to trace goods via the blockchain in an effort to find bottlenecks, decrease food waste, and enhance food safety.
  7. 7. CASE: IBM & MAERSK IBM and Maersk are using a blockchain built on the Hyperledger Fabric to manage supply chain for container shipping. Problem Solution One shipment can require sign-off from 30 unique organizations and up to 200 communications. One lost form or late approval could leave the container stuck in port. The entire process can take more than one month.
  8. 8. Big Data
  9. 9. BIG DATA IN LOGISTICS Delivery Route Optimization Package Movement Monitoring On Ground Resource Management Big Data technology provides the information on the patterns of customer behavior, market trends, and maintenance cycles. It also offers cost reducing methods, optimal price and processes optimization strategies and considerably facilitates the decision-making process.
  10. 10. DHL As the world leader in logistics, DHL prepares the reports and shares the accumulated knowledge with its customers and everyone who might be interested in it.
  11. 11. CASE: TRANSPORT OF LONDON Transport of London (TfL) smartcard ticketing system enables a vast amount of data to be collected about journeys that passengers are taking. The information allows the company to understand load profiles, plan interchanges, ticket facilities, signage and commercial offering. Problem Bridge was closed repair work. Bus services had to stop either side of bridge. Solution Sent targeted e-mails to provide customers with information about alternatives routes. • Oyster and contactless card • Traffic information • Social media • Bus location data • Asset data • Mobile app data
  12. 12. CASE: DHL At the core of the DHL Smart Truck lies the dynamic route planning system. It processes all the information on the road and sends relevant updates to the vehicle’s on-board computer instantaneously. This allows the delivery to become more efficient, (the implementation of the Smart Truck reduced the number of miles traveled by 15%).
  13. 13. CASE: UPS Why UPS drivers don’t turn left? UPS started its 2011 initiative for each driver to save one mile per day. Its Big Data analytic approach to driving performance and route optimization, termed ‘On-Road Integration Optimization & Navigation’ (ORION). Processed data Vehicles Tracked 46 000+ Packages Tracked 16,3 million per day Customers 8,8 million Results Miles Saved 85 million per year Gallons of fuel saved 32 million per year $ Saved $30 million per year
  14. 14. 3D Printing
  15. 15. 3D PRINTING IN LOGISTICS The total transportation spent by a warehouse may be reduced by up to 85% Transportation cost may be reduced by up to 90% as the product is now manufactured closer to the customer Supply chain managers can reduce their inventories to virtually zero while still maintain 100% item fill rate Volume Cost per unit Time to market Cost of complexity Small batch, Highly customized High variable costs, No fixed costs Very fast (<1 day) No higher that simple parts Large batch, Not customized Low variable costs, High fixed costs Very slow to moderately slow Much higher that simple parts 3D PRINTING TRADITIONAL 3D Printing may change the traditional logistics. The technology allows quickly printing of spare parts/details/products with the use only of electronic library of projects available on the computer and the 3D printer. As a result, transportation and warehousing costs will be reduced.
  16. 16. CASE: MERCEDES-BENZ Mercedes-Benz launched the printing of metal parts of machines. According to the press service of Mercedes-Benz, the details printed on the 3D printer passed all the stages of quality control and are in no way inferior to the reliability of metal products produced by traditional methods.
  17. 17. CASE: UPS & FAST RADIUS UPS and Fast Radius has strategically located its 3D printing factory just minutes from the UPS global air hub. The value of this end-of- runway location is that orders can be manufactured up to the 1 a.m. pickuptime and be delivered anywhere in the U.S. the next morning.
  18. 18. Chatbot
  19. 19. CHATBOT IN LOGISTICS Quality control Easier production planning Instant connect departments and workflows Quickly respond to customers demand Reduce waste by tracking inventory Order/shipments tracking Chatbots allow the business to exchange the necessary information with customers, suppliers and employees.
  20. 20. CASE: UPS UPS has launched the chat-bot, an artificial-intelligence-enabled platform that mimics human conversation to help users easily find UPS locations, get shipping rates and track packages. The UPS chat-bot available through Facebook Messenger, Skype and Amazon platforms.
  21. 21. CASE: FRANK TAXIBOT Frank is a friendly bot that proves that ordering a cab is as easy as chatting on Facebook. Customer can order a taxi anywhere around the world, just by writing to him on Facebook. Its aim is to create an international partnership of mobile taxi apps.
  22. 22. IoT
  23. 23. IoT IN LOGISTICS Real-time fleet management Predictive maintenance Cargo integrity monitoring Smart labels Storage conditions control Inventory tracking & analytics End-to-end visibility into delivery process Optimized warehouse workloads With the use of IoT technology, logistics providers can achieve high levels of operational efficiency in regard to fleet management, cargo integrity monitoring, and automated warehousing operations.
  24. 24. CASE: MAERSK & ERICSSON Maersk operates in 343 ports across 121 countries. Back in 2012, the Danish giant teamed up with Ericsson to install real-time monitoring across its fleet with Ericsson’s mobile and satellite communication technology. • Reduction delivery preparation time • Fast changes of routes • Reduced fuel consumption • Higher ship productivity • Information on temperature and stability of a container
  25. 25. CASE: OCADO Grocery store Ocado is leveraging IoT and robotics to improve inventory management. The technology enables Ocado to control and co-ordinate the movements of hundreds of thousands of crates containing millions of grocery items, in real-time and in parallel.
  26. 26. Sharing economy
  27. 27. SHARING ECONOMY IN LOGISTICS $0.97 Incremental change $0.63 A world of car sharing $0.46 The driverless revolution $0.31 A new age of accessible autonomy Cost per mile, by future mobility state Personal SharedAutonomusDriver 1 2 43 • Truly Shared Warehousing • On-Demand Staffing • Logistics Data Sharing • Community Goods On-demand • Logistics Asset Sharing • Transport Capacity Sharing • Urban Discreet Warehousing Sharing economy gives new opportunities for classical logistic business in the sphere of warehousing, transportation and delivery of "the last mile".
  28. 28. CASE: FLEXE American Seattle-based startup Flexe has also developed a marketplace for excess warehouse space that includes a network of over 370 warehouses across 45 markets, creating access to over 400,000 rentable pallet spaces in North America.
  29. 29. CASE: UBER FREIGHT The first product from Uber Freight is a marketplace to connect a shipper with a truck, much like the Uber app connects drivers and riders.
  30. 30. Self-driving vehicles
  31. 31. SELF-DRIVING VEHICLES IN LOGISTICS Warehousing operations Outdoor logistics operations Line haul transportation Last-mile delivery • Autonomous loading and transport • Assisted order picking • Assisted highway trucking • Convoying systems • Parcel station loading • Autonomous shared cars • Self-driving parcels • Improve safety in yards • Automated containers, unit load devices (ULD)
  32. 32. CASE: PELOTON Peloton is a connected and automated vehicle technology company. Peloton uses vehicle-to-vehicle communications and radar-based active braking systems, combined with sophisticated vehicle control algorithms, to link pairs of heavy trucks.
  33. 33. CASE: KNAPP OPEN SHUTTLE Open Shuttle developed by KNAPP provide autonomous transportation in the warehouse. Using laser navigation technology, this free- moving vehicle can be deployed for transport and picking activities involving cartons and containers – this makes it ideal for many kinds of low-throughput transportation.
  34. 34. Drones
  35. 35. DRONES IN LOGISTICS Point To Point Delivery Asset/Inventory Tracking Inspection Urban First and Last Mile Rural Delivery Drones provide new solutions to problems in the logistics field, such as сosts reduction, eliminating "human" mistakes, delivering goods to hard-to-reach places, monitoring and protecting transport routes.
  36. 36. CASE: AMAZON PRIME AIR Amazon Prime Air — a delivery system designed to safely get packages to customers in 30 minutes or less using unmanned aerial vehicles, also called drones. Drone features • Delivery in 30 minutes or less • Flying below 120 m • Drones weighing less than 25 kg • Use of «Sense and Avoid» technology • Travel distance up to 20 km
  37. 37. CASE: MERCEDES-BENZ VANS Van manufacturer Mercedes-Benz Vans has unveiled its strategic future initiative adVANce for the transport industry. The Vision Van features a fully automated cargo space, integrated drones for autonomous air deliveries and a state-of-the-art joystick control.
  38. 38. Computer vision
  39. 39. COMPUTER VISION IN LOGISTICS Reading of 1D and 2D barcodes Identification of uncoded text (Optical Chatacter Recognition) Verification of the presence of the logo Quality control Automatic sorting packages Automation of logistic operations becomes more complicated and requires new solutions for effective use of production capacities. Laser devices do not always cope with their tasks. Computer vision comes to rescue them.
  40. 40. CASE: COGNEX Code readers using computer vision can be used just like standard laser scanners, stationary or handheld. An example of the executive stationary readers is DataMan 500 by company Cognex, which is based on its own chip technology for computer vision, Cognex VsoC (Vison System on a Chip). Speed shooting: up to 1000 frames per second Total: 270 readings per second
  41. 41. CASE: AMAZON Amazon already operates a mobile Kiva robots which outweigh high shelves unit with goods. These robots based on the automated instructions take him to the destination. They move in a specially reserved area and for orientation using computer vision, because on the route are QR codes at regular intervals stationed on the floor, according to which then orientate where they must turn onto.
  42. 42. AR VR
  43. 43. AR VR IN LOGISTICS Warehousing operations Transportation optimization Enhanced value-added services Last-mile delivery • Warehouse Planning • Pick-by-Vision: Optimized Picking • Assembly and Repair • Customer Services • Parcel Loading, Drop-off • Last-meter Navigation • AR-secured Delivery • Completeness Checks • Dynamic Traffic Support • Freight Loading
  44. 44. CASE: DHL DHL will expand its “Vision Picking” solution, establishing a new standard in order picking for the industry. During the pilot, productivity increased 15% on average. The smart glasses provide visual displays of order picking instructions along with information on where items are located and where they need to be placed on a cart, freeing pickers’ hands of paper instructions.
  45. 45. CASE: VOLKSWAGEN Volkswagen rolls out 3D smart glasses as standard equipment. Plant logistics personnel are to use these glasses for order picking. The objective is to further improve process security in production.
  46. 46. Machine Learning
  47. 47. MACHINE LEARNING IN LOGISTICS Demand forecasting Supply forecasting Production planning Stock analytics Recommendations in drop shipment business Inventory planning Price planning Speech recognition By means of machine learning technology the computer may be taught to reveal certain regularities and to perform certain operations, for example, calculation of the shortest delivery route of delivery, instant calculation of the transportation cost and optimization of schedules, fleet. Order aggregation Effective route planning Accidents predictions Schedule optimization
  48. 48. CASE: DHL DHL introduced supply chain risk management platform called DHL Supply Watch. The platform uses machine learning and natural language processing to detect disruptions in a company's supply base before they cause financial losses or long lasting reputational damage. Supply Watch monitors some 140 different risk categories including financial, environmental and social factors The system analyzes data of up to 30 million posts from more than 300,000 online and social media sources to detect potential supply chain disruptions
  49. 49. CASE: UBER Uber’s Head of Machine Learning Danny Lange confirmed Uber’s use of machine learning for ETAs for rides, estimated meal delivery times on UberEATS, computing optimal pickup locations, as well as for fraud detection.
  50. 50. Omni- channel
  51. 51. OMNI-CHANNEL IN LOGISTICS High-performing, cost-effective omni-channel fulfillment network • Flexible dynamic omni-channel warehouses • Leveraging warehouses as showrooms • Logistics marketplaces and real-time consumer engagement Enhance speed, flexibility and convenience in last-mile delivery • Anytime, anywhere delivery models • Range of omni-channel value-added services • Increasing microwarehouses Building an omni-channel sales model is completely new task for the retailer. Omni-channel strategy includes two interrelated blocks: marketing / sales and logistics. In case of the first block, the tasks are solved relatively easily, where the logistics for most retailers becomes a serious challenge.
  52. 52. CASE: WALMART Walmart debuted its Walmart Pickup Grocery service to registered customers. The test concept, which is a free service, allows customers to place their orders online any time and pick them at special stations.
  53. 53. CASE: TMALL.COM & JACK & JONES China’s largest B2C website Tmall.com is exploring a ‘bricks-and-clicks’ delivery system with Jack & Jones, a Danish male apparel retailer. When Tmall.com receives an online order, the IT system analyzes merchandise availability and dispatches from the store that’s closest to the customer.
  54. 54. THANK YOU FOR ATTENTION! Alex Isachenko, CEO, Managing Partner, CoreTeka +380 93 570-56-28, isachenko@coreteka.com

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