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Returnable Container Management

Supply Chain Visibility & Optimization for a “Smarter Factory” Brian Dalgetty, Director Solutions Development IBM Sensor Solutions. Smarter Factory Solutions: IBM Teaming with Honda Italia - Important to have support from both “IT and LOB”. Garage. OEM. Dealer. T. Tier 1 Supplier. T. T.

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Returnable Container Management

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  1. Supply Chain Visibility & Optimization for a “Smarter Factory”Brian Dalgetty, Director Solutions Development IBM Sensor Solutions

  2. Smarter Factory Solutions: IBM Teaming with Honda Italia- Important to have support from both “IT and LOB”

  3. Garage OEM Dealer T Tier 1 Supplier T T Tier 2 Supplier Transport Spare Part Stock Automotive/Industrial Supply Chain use cases:- Delivering business value from increased visibility Returnable Container Management 1 SCM (JIT/JIS) Processes 2 Brand Authentication 3 Theft Control Use Cases 4 Yard Management 5 Dealership Parts Logistics 6 Dealership Finished Vehicle Logistics 7 Value chain

  4. Automotive/Industrial Manufacturing use cases:- Delivering business value from increased visibility Assembly Documentation 8 9 Assembly Automation Assembly Information & Control 10 Use Cases Work in Process Tracking 11 Tool Tracking 12 Inventory Mgmt. Inventory Mgmt. Inventory Mgmt. 13 Assembly station Assembly station WIP Stock Assembly station Assembly station Stock outbound Stock inbound Assembly line Assembly line transportation system

  5. Business Value from increased visibility example:- IBM Returnable Container Management solution Transportation Provider Automotive OEM Supplier Improved returnable container turnaround time Reduced losses and shrinkage Reduced returnable container inventory Savings in inventory carrying cost Reduction in reconciliatory processes Better control over transportation Reduction of one-time packaging Inventory visibility and cycle counts 20% (of total) 5 – 15% (of total) 10% (of total) 30% (of total) 75% (cost reduction) 75% (cost reduction) 75% (cost reduction) 15% (efficiency gain) 5% (cost reduction) 80% (of total) 65% (cost reduction) 65% (cost reduction) Additional Benefits: • Ability to utilize RFID in assembly • Ability to recall containers • Ability to direct container flows • Optimized supplier processes • Application of RFID to supplier manufacturing • Automation of supplier payments • Better organizational management • Enhanced data reliability • Better requirements planning • Ability to locate individual containers • More efficient refurbishment process • Higher control over full containers • Ability to locate containers in manufacturing Source: IBM Whitepaper on Container Management, 2008

  6. 2. When to act? Analyze events to identify insights that determine when to act 4. What to do? Determine the best course of action to respond to identified business situations Steps to Achieve Business Value from Visibility 1. What is really going on? Collect and interpret new data from sensor systems to determine events INSTRUMENTED 5. How to do it? Manage and choreograph the processes that perform the action INTERCONNECTED 3. What is happening? Visualization of events in business context INTELLIGENT

  7. Smarter Supply Chain SolutionsUse case implementation created with a palette of IBM capabilities When to act? 2. 3. What is happening? What is really going on? 1. Event Patterns VisualizationDashboardsKPIs, Analytics Sensor EventServices What to do? 4. DeviceInterfaces Performance Management with Master Data 5. How to do it? Asset Management Tools Process Models, Runtime & Adapters BusinessRules & Optimization Tools Communication& Collaboration ESB

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