comprehensive overview of current state vs. digitally transformed supply chain incl. megatrends such as internet of things, industry 4.0 and autonomous driving.

1. Sept. 22 ,2016
Wiesbaden / Germany
by
Dr. Hans-Bert Bong

2. Agenda:
●About..
●Automotive Supply Chain
●Automotive complexity
●7R+ in logistics
●SCM* challenges
●SCM* requirements
●Today's SCM* Track&Trace
●Industry 4.0
●Digitally transformed SCM*
●Artificial dialogue ( internet of things)
●In-plant logistics
●More of the digital future
* SCM : Supply Chain Management

3. About
● 5 years University research & development
● 26 years automotive OEM experience of which:
● 8 years in various positions in:
● Product development
● Production quality,
● Production management
● Manufacturing engineering
● New model program management
●
● 18 years in various logistics functions such as:
● Bill of Material and prototype management
● Finished vehicle distribution
● Material flow & packaging engineering
● Supply chain management
● Plant logistics
● Customs & foreign trade
Est 2016
info@drbongbusinessconsulting.net

4. Automotive Supply Chain(simplified)
S
S
S
S
S
S
S
S
S CC
S
S
S
CC
S
S
S
Assembly Plant
Supplier
Consolidation-
Centre
FCL / FTL
LTL
Milk-run
CC
S
(C) 2016 Dr. Bong business consulting
FTL: Full Truck Load; FCL : Full Container Load; LTL :Less than Truck Load
Simplifications:
● Tier1 supply base only
● 1 customer plant only
● No de-consolidation centers
● No supplier parc
● No inter-plant supplies
● No trans-shipment shown
( e.g. in ports)
● No combinations of LTL /
FTL / LTL, Milk-run and CC
● ...
S

5. Automotive complexity
Example: Saloon / Sedan ex Bavaria / Germany
In addition : 20 alloy wheels, 17 exteriour colors, 13 interior colors & trims etc.
Existing product offering based on 2016 German market option list
engines&transmissions
rearviewcam
parcdistcontrolf&r
lightassist
linechangeassist
activeprotect
driveassist
activecruisecontrolnormal/active
surroundview
parcassist
speedlimitinfo
adaptivessuspension
heatedsteeringwheel
airconautomatic
steeringwheelsport,leatherorindivleather
antitheftalarm
keylesstrunkopenening
greysunprotectionwindscreen
sunroof
sunblindsrear/sidemechorelectr
towbar
smokerspack
memoryseats
splitrearseat
heatedseatsfront
heatedseatsrear
navigationsystems
Radio/TV
Headlampsnormal/LED/adaptive
variablepowersteering
RHD/LHD
1
100
10000
1000000
100000000
10000000000
1000000000000
1 million
1 million millions possible combinations
(C) 2016 Dr. Bong business consulting

6. 7R+ in logistcs
QC
passed
Part 4711-ab
Qty 5
dest CGN
Shipped
ETA 02.00 pm
Right part*
at the Right time
in the Right quantity
with the Right quality*
at the Right cost
at the Right location
with the
Right
information
(C) 2016Dr. Bong business consulting
* includes 8th R : right packaging
$ 100
$ 100
$ 100
$ 100

7. SCM challenges
customers expect short order to delivery
customers expect more product offerings / individual cars
complexity drives mass production towards batch size 1
high volatility in part requirements
high flexibility in supply base to satisfy demand
intercontinental suppliers need 4-6 weeks forecast
conflictconflict
Lean principles and JIT do not support storage
...
(C) 2016Dr. Bong business consulting

8. SCM requirements
Nible production
high built complexity
real time visibility of parts in supply chain
flexible transport organisation (non-sequential)
self-optimizing logistics and production schedules
real time location & ETAs of transport equipment (trucks, containers, ships, trains)
...
(C) 2016Dr. Bong business consulting

9. Today's SCM Track & Trace
B Shipping LinesB Shipping Lines
Scan
Status msg
Status msg
Status msg
Scan
Parts status
Data Characteristics:
- Static
- event based
- batch
- de-centralized
(C) 2016Dr. Bong business consulting
physical transport
data flow
MS B
Status msg

10. Industry 4.0
(C) Dr. Bong business consulting
Smart Factory
Internet of things
Cyber Physical Systems
Autonomous driving
Productivity / Efficiency
Mechanisation
Steam Power
Assembly line
Electricity
Mass Production
Computer &
Automation
WWW.

11. Digitally transformed SCM
(future state)
B Shipping LinesB Shipping Lines
Data Characteristics:
- dynamic
- continous
- live / real time
- multi-way
- centralized in cloud
(C) 2016Dr. Bong business consulting
W W W
physical transport
data flow
MS B
ADV : Autonomous Delivery Vehicle ( yet to be developed)

12. B Shipping LinesB Shipping Lines
B Shipping LinesB Shipping Lines
(C) 2016Dr. Bong business consulting
W W W
MS B
ADV : Autonomous Delivery Vehicle ( yet to be developed)
Box to Container:
Hi , I'm box Xyz
May I join you?
Artificial Dialogue (internet of things)
Cloud to cloud:
I wonder how they did it
in the past without me ?
Plant to boxes
and ADV:
Welcome, come in
ADV to boxes, plant
and cloud:
Hey guys,
We're nearly thereContainer to Box:
Hi , I'm Container BSL1
Come in, you're welcome
Ship to Containers:
Hi ,I need a bill of lading,
what have we got today?
somewhen on
the journey.....
Box to Container:
Hey , do you know where we are?
my customer wants to know !
somewhen
later.....
Container to Box:
I lost signal but I'll ask the ship.
we'll let you know, Cc the cloud
Cload to all:
Thanks to all,
we made it!
a modern fairytale:
once upon a time....

13. In-plant logistics
(C) 2016Dr. Bong business consulting
11 02 080696 1 5 16 4711
name: bearing ball
KANBANID 4711-aa
Store 4
Shelf 8a
User :
assy 23
# 240
Supplier
balls ltd UK
3 of 6
A
N
D
O
N
Digital
Transformation
Smart
Flexible
Autonomous
Self-optimizing
W W W

14. More of the digital future...
Augmented reality ( e.g. for parts picking or assembly)
3D printing (production @ user site)
(C) 2016Dr. Bong business consulting
Skytrain
south
B Tower
Ind Zone
friendDeli
Skytrain
south
B Tower
Ind Zone
friendDeli

15. (C) 2016Dr. Bong business consulting
Video links :
https://www.youtube.com/watch?v=JUatoYN9P_8
https://www.youtube.com/watch?v=7TUyQpnWa14&feature=youtu.be
https://www.youtube.com/watch?v=ve63xdzc3hg&feature=youtu.be