TRENDS AND RISK IN
GLOBAL LOGISTICS
Gina Chung, DHL Trend Research
September 19th 2016
Why should we look into trends? Frog’s dilemma
Inability or unwillingness of people to react to significant
changes that occur gradually
HPCLC | 19 September 2016
2
How do we look into trends?
HPCLC | 19 September 2016
3
Megatrends driving requirements for tomorrow
HPCLC | 19 September 2016
4
How do we look into trends?
HPCLC | 19 September 2016
5
Trend radar as basis for
exploration
Source: DHL Trend Research
HPCLC | 19 September 2016
6
Translating research into
commercial success
1
2
4
3
PROOF OF
CONCEPT
INNOVATION
CENTER
EXHIBIT
TREND REPORT
TREND RADAR
Source: DHL Trend Research
HPCLC | 19 September 2016
7
Augmented Reality
Which smart glasses can be used today?
Vuzix M100
Google Glass Explorer
Lumus DK-40
Sony SmartEyeglass
Recon Jet
Si14 GlassUp
Epson Moverio BT-200
Knapp Kisoft Vision
Brother AirScouter
META Spaceglasses 01
Omnivision OVP2200
Microsoft Hololens
Source: DHL Trend Research
HPCLC | 19 September 2016
9
Vision picking explained
Source: DHL Trend Research
HPCLC | 19 September 2016
10
From PoC to global roll-out
Since the initial pilot in
December 2014…
Source: DHL Trend Research
HPCLC | 19 September 2016
11
Internet of Things
Why is IoT so important?
By 2020, there will be over 50 billion
connected devices on our planet
- Cisco
HPCLC | 19 September 2016
13
Why is progress taking so long for IoT in logistics?
Scalable
Interoperable
Sufficient
Lifespan
Durable &
Robust
Low-cost
Certified
Source: DHL Trend Research
HPCLC | 19 September 2016
14
DHL Smart Sensor for intelligent temperature tracking throughout the supply chain
DHL Smart Sensor RFID
Plug & play UHF RFID solution that monitors
in real-time temperature data during the
course of air, ocean, road freight
transportation.
DHL Smart Sensor GSM
Plug & play GSM solution that measures
humidity, temperature, shock and light data and
identifies the geo location during the course of
transportation near real time for air, ocean
transportation
HPCLC | 19 September 2016
15
Leverage new IoT connection technologies (LPWAN)
Low Power Wide Area
Network (LPWAN)
Cellular Network
Short Range
Communication
IoT/M2M
Traditional M2M
40%
45%
15%
Local Area Network
(LAN)
Used for
% Future IoT Applications
Benefits
-Well established
standards
-In building
-Low power consumption
-Low-cost
-Positioning
-Existing coverage
-High data rate
Challenges
-Battery lifetime
-Provisioning
-Network cost &
dependencies
-High data rate
-Emerging standards
-Battery lifetime
-Total cost of ownership
NB-IoT
Technologies
Source: Adapted from Semtech 2016
HPCLC | 19 September 2016
16
IoT: Connected Warehouse
Use Wi-Fi-based localization technology to:
 Track handsets and other warehouse assets
in real time
 Use collected data to record potential
collisions
 Track and provide information about asset
utilization to optimize costs and asset
availability.
 Aggregate tracked movements to identify
potential efficiency improvements
HPCLC | 19 September 2016
17
Big Data
The power of data
“As people shop, we’re re-pricing
products to reflect the true
underlying economics of getting
those products to the customer,
based on what products are already
in the (checkout) basket and based
on how far away those products are
from where the customer lives.”
Marc Lore, Jet CEO
Source: http://www.investors.com/news/technology/how-e-tail-startup-jet-com-plans-to-take-on-amazon/
19
Big data in logistics
Operational
Efficiency
Customer
Experience
New Business
Models
The importance of resiliency
81%
companies had at least one SC
disruption in 2013 with average
disruption costs of 3 million
Dollars1)
91%
of American Supply Chain
executives cannot assess
the impact of a disruption within
hours3)
93%
of the leaders of the worlds top
companies in the CEO summit in
2012 are unprepared for Supply
Chain disruptions2)
10%
is the average of shareholder
value reduction after a supply
chain disruption4)
Source: 1) Business Continuity Institute & Experton Group; 2) World Economic Forum Supply Chain and Transport Risk Survey 2011; 3) Jeff Dobbs, Global Sector Chair, Diversified Industrials and a
partner with KPMG in the U.S 4) Hendrick & Singhai, “The Effect of Supply Chain Disruptions on Long-Term Shareholder Value, Profitability and Share Price Volatility
HPCLC | 19 September 2016
21
Using data intelligently to mitigate risk
HPCLC | 19 September 2016
22
DHL Resilience360 – End-to-end supply chain risk management
Rates your supply chain risks
and resiliency, identifies risk hot
spots and recommends suitable
mitigations
Monitors your supply chain in
near real-time for incidents,
filters relevant information and
triggers follow-up
24/7 Risk Control Towers
determines your impact on
business continuity, highlights
existing gaps and implements
mitigation actions
HPCLC | 19 September 2016
23
Robotics & Automation
Did you know…?
80%
35
$30k
…of warehouses today are
manually operated
(St. Onge Company)
…shortage of workers in
the US in the next 30 yrs
(Pepperdine)
…the price to build a
Kinect prototype, three
years before its release
(NY Times)
mil
HPCLC | 19 September 2016
25
Robotics applications: near and future use cases
Trailer and Container
Unloading
Collaborative Order
Picking
Collaborative
Co-packing
Mobile Piece Picking
HPCLC | 19 September 2016
26
Collaborative value-added services robots
Several global pilots completed with customers
to test collaborative robots ‘Baxter’ and
‘Sawyer’ from Rethink Robotics
Sawyer weighs just 19kg and has a payload of
4kg. He is fully mobile and can be taught tasks
instantly
Targeted applications are for repetitive tasks
such as co-packing activities
Source: DHL
HPCLC | 19 September 2016
27
Source: DHL
HPCLC | 19 September 2016
28
Collaborative order picking robots
Early PoC conducted together with French
startup Effidence to test the Effibot at a retail
site in Germany
Effibot is an autonomous follow-me robot that
assists pickers by reducing stress and strain.It
also enables the transition from single to multiorder picking
The Effibot can carry up to 150kg and operates
max 7km/h
Source: DHL Trend Research
HPCLC | 19 September 2016
29
HPCLC | 19 September 2016
30
Visit the
Innovation
Center
Arrange an
innovation
workshop
Start a joint PoC
with us
HOW TO
ENGAGE
WITH US?
Give us feedback
on our trend
radar
DHL Innovation & Trend Research
FOR MORE INFORMATION PLEASE CONTACT:
[email protected]
DHL Innovation & Trend Research