Supply Chain

Powering remanufacturing with AI

Companies are accelerating remanufacturing as a way to mitigate supply chain shortages, reach new customers through affordability, and implement high-margin alternatives for parts. However, those looking to build or optimise their remanufacturing operations face unique challenges, such as pricing a long tail of SKUs and undertaking accurate core forecasting—that is, predicting the volume, timing, and quality of returned products (core) that will be available for remanufacturing. Enter AI. As the costs of cloud storage and processing and prepackaged tools decrease, AI is becoming more accessible for organizations, helping them improve efficiency, yield, and margins. Unlocking AI in remanufacturing AI is an umbrella term for leading-edge techniques and methods of analysing data, predicting outcomes, and generating insights. While AI and gen AI technologies have garnered a lot of attention, they are only part of the AI landscape. Core forecasting The unpredictable nature of core availability is a challenge for remanufacturers, and conventional analytics lack the sophistication needed for predictive analysis. Introducing a specialised system such as a forecasting tool could help remanufacturers evaluate core availability at a per-SKU level. This forecasting tool could be trained on historical part performance data to assess the following: the estimated useful lifetime of a part the historical use rate of a part (such as hours or miles per day) macroeconomic conditions by region and industry that may affect trade-in timelines Adopting AI tools for core forecasting could help remanufacturers reduce core safety stock by 2 to 4 percent and save 3 to 5 percent in freight costs by reducing the cost of expedited shipping. AI tools could also help remanufacturers reduce overtime expenses, lose fewer sales due to stockouts, and ensure they have the parts that end customers need. Case study: Incentives for core availability. A top technology OEM struggled to match the regional availability of core […]

Unlock the value of data to drive business intelligence

By Kevin Dherman, CIO at SYSPRO Data forms the backbone of any manufacturing enterprise. With continuous supply chain disruptions, the allure of data and Business Intelligence (BI) is the ability to look deeper into production, performance, and efficiency. For today’s industries the issue isn’t whether they’re generating enough data, it’s whether they’re getting value from that data. SYSPRO research reveals that only 20 percent of manufacturing and distribution businesses have looked at investing in big data analytics tools to process and analyse data in response to ongoing disruptions, and only five percent of businesses have investigated the use of Artificial Intelligence (AI) and Machine Learning (ML) to draw any long-term benefits from data collection. As industries look to digitally transform to the factory of the future in a data-first world, investment in technologies is irrelevant without data analytics to understand the internal and external factors impacting a business. Without the right data insights businesses are unable to compete with global supply chains as they don’t have the visibility to anticipate shifts and respond to market changes. Here’s how manufacturers can obtain visibility across the entire operation and collect accurate real-time data to not only automate processes but make data-driven decisions that drive the factory of the future: Actionable insights with ERP Ultimately, ERP fuels data-driven decision making and drives business intelligence. It allows information to be centralised and organised into readable reports and dashboards. With a variety of valuable KPIs, metrics and more information at their fingertips, they can act on new opportunities, respond to issues, and make informed decisions quickly. A SYSPRO customer, Ruprecht, was able to tackle supply chain disruptions and remain competitive through leveraging data insights. The business which supplies ready-to-eat food products in the US integrated their ERP system with AI and a predictive model to maintain […]

Automation: The Future of Logistics Companies in Asia Pacific

-Aik Jin, Tan, Vertical Solutions Lead, Zebra Technologies Asia Pacific In recent years, Asia Pacific (APAC) has seen a rapid growth in e-commerce adoption, but the pandemic has undoubtedly accelerated digital transformation, leading to an even bigger surge in e-commerce. Between 2020 and 2025, the Asia market is estimated to account for 57% of the growth of the global e-commerce logistics market1. As more consumers switch to online delivery platforms, click-and-collect models, and curbside collections, supply chains are being challenged to adapt quickly. Though container shortages, shipment delays2 and the growing demand for air cargo demand in Asia3 have affected fulfillment in recent months, industry leaders are rapidly investing in technology solutions to ease these growing pains – especially automation. There are several different automation solutions that enable manufacturers, warehouse operators and logistics providers to get goods to consumers faster with greater accuracy and efficiency, and at a lower cost. And now that technological advancements are making automation solutions more accessible to companies of all sizes, it will be easier for entire supply chains to keep up with evolving consumer demands, process more orders, and expand operations, all while keeping workers safe. Automation Solutions Have Become More Scalable and Flexible Companies in APAC that are looking for new ways to meet changing business requirements are beginning to realise the importance of automation in warehouse processes. Zebra’s Intelligent Enterprise Index found that nearly half of transport & logistics (46%) and manufacturing (42%) organisations had already deployed Internet of Things (IoT) solutions on a company-wide scale by 2019. Fortunately, warehouse automation solutions have become much more scalable and flexible in recent years, delivering significantly faster returns on investments (ROI) than were previously possible, a result born from the need for innovative technologies that could be rapidly deployed. Necessity is truly the mother […]

A humanoid robot with a shopping trolley is shopping at a grocery store. Future concept with robotics and artificial intelligence. 3D rendering

The technologies driving opportunities in automation

Swisslog Australia & New Zealand Managing Director Francis Meier discusses these trends and the future of automation. Fast-moving industries like retail, food and beverage, warehousing, and logistics have been driving the boom and rapid advancement of e-commerce and the digital marketplace. Intralogistics, AI, Digitalisation and IoT are already thrusting industry forward in ways we never would have thought possible in years gone by. “Just as the merging of digital, AI and remote monitoring are hallmarks of Industry 4.0 in industrial markets, these giant steps in automation will be commercial markets’ pathway to the future. Leaders in their field are already moving into these fields, and the benefits are beginning to filter through to new levels of industry,” said Mr Meier. “As these future-focused technologies advance further, automation-driven industries need to ask how they can not only utilize these advances, but actively shape the new technology to deliver specific business advantages, and achieve long-term growth,” he said. Turning big data into big opportunities One of the key themes is big data, and how forward-thinking companies can better utilise this information to drive growth and company advancement. “Big data refers to large and complex data sets being collected and stored continuously. Collection is one part of the equation – how we use it is the more challenging, and exciting part,” says Mr Meier. “With the right tools, such as intelligent software, it is possible to transform big data into ‘smart data’. This is where you can optimise processes, provide clarity on past, present and future operation figures, and be proactive rather than reactive to change.” Companies to benefit from automation growth The continued growth in automated solutions and intelligent use of data will significantly improve warehouse performance, and allow companies to flexibly adapt to change, says Mr Meier. “The Covid-19 pandemic has […]

Working across the supply chain

Industry 4.0 is changing the way we work across the supply chain. Using AI, sensors, and Internet of Things (IoT) technology, a smart and data-driven distribution center can be developed. For example, by cross-referencing enterprise resource planning (ERP) systems with consumer trends data, AI technology can automatically order the correct amount of raw materials to fulfil orders, reducing waste and increasing profit. As the complex web of distribution is opened to the benefits of AI, the supply chain could have a bigger economic benefit than any other application of AI in manufacturing. Using this technology, distributors will no longer need to predict demand for products through guesswork but will instead merge datasets to make accurate predictions about the future, enabling them to make well-informed business decisions. Inventory level efficiency With insight into future demand, AI can also help with forecasting the demand of your suppliers, based on previous orders. This means crucial decisions can be made to optimize stock levels. For example, if your AI software lets a distributor know that many other distributors will want the same equipment in 12 months’ time, you would be sure to jump the queue and get ahead by ordering it much sooner than this. Cost of goods sold Why does it matter if inventory levels aren’t optimised? Well, it’s related to inventory level efficiency. Your cost of goods sold (COGS) will reduce since you don’t incur costs of holding inventory beyond its use. In 2015, the cost of over-stocking was $470 billion, and of under-stocking was $630 billion worldwide, according to IHL Group. Freeing up cash and storage space creates the potential for savings. Lead times As Industry 4.0 empowers your supply chain to manage different orders faster, lead times for customers will shorten. However, this increases the pressure to deliver on time, […]

SkyDrive launches test flights of first-ever cargo drone

SkyDrive Inc., a leading flying-car developer, has successfully launched test flights of a cargo drone which could revolutionise the way heavy goods are transported and speed up the movement of equipment in remote locations. The first operational testing took place Toyota. It was carried out to test the technology by moving heavy equipment in remote locations. This new technology has been tested with a load capacity of 30kg–utilizing SkyDrive’s world-leading aircraft development technology to achieve high safety standards. There is the potential to develop this further and achieve greater capacity loads of up to 50kg and 80kg, according to demand. The cargo drone also has the potential to change the way products are moved from manufacturers to warehouses and onto depots. SkyDrive is developing the cargo drone for use in industries that carry heavy materials on complex terrain such as slopes, mountain valleys, overpasses, power transmission towers, civil engineering/construction sites, agricultural fields, etc. Usage of cargo drones will help avoid dangerous works, save personnel and shorten the term of works. SkyDrive can contribute to responding to labour shortages and improving labour productivity sagging. Cargo drone can be used by companies for transporting materials to hard-to-reach places such as slopes, mountain valleys, overpasses and sites of steel tower maintenance. The total length is 1.3m x total width 1.7m x total height 1.0m -Recommended payload: 30kg -Flight speed: 40km/h -Flight time: 15min. Winch mechanism to move up and down without landing.

Versatile barcode reader for harsh industrial use

With the new Industrial Handheld Reader BVS HS-P Balluff expands their offering of optical identification: the portable reader with intuitive operation reliably reads high-resolution barcodes as well as codes over a wide range at a read distance of up to 110 centimetres. Direct Part Marking (DPM) codes can also be read. The ruggedly constructed device offers IP 65 protection and withstands drops from up to two meters without any damage. The wireless version features Bluetooth to give the user the greatest possible freedom of movement within a range of up to 100 meters around the base station. This flexible portable reader is ideal for a variety of applications including traceability, automated replenishment and logistics. The ergonomically designed Industrial Handheld Reader BVS HS-P decodes all common 1D, 2D and stacked barcodes on objects moving at up to 0.8 meters per second. Even tilts of up to 40° and rotation angles of up to 180° do not affect the read reliability. The optical aiming system with a highly visible laser marking border makes handling and target acquisition simple. Acoustic and optical LED signals including a projected LED spot on the code ensure reliable read confirmation in loud or bright surroundings. The wireless version with its high-capacity rechargeable battery increases the flexibility and enables a variety of portable situations. The Industrial Handheld Reader BVS HS-P is simple to integrate via USB, Bluetooth or RS 232 interface. The ergonomic design and low weight ensure comfortable and fatigue-free work.

Supply Chain Excellence: Sales and Operations Planning

-Vishnu Rayapeddi Do the following represent a typical day in your work life? • Nothing goes right • Everything seems to be a mess • Materials are late • Customers are unhappy • Too much inventory • Too many shortages • Too many dumps • Crisis Management is the order of the day! If you answered YES to any of the above, then you need a robust Sales & Operations Planning. A number of businesses do a very good job of having business plan and also day to day production scheduling. But not many realise that, there is a missing link, which is Sales & Operations Planning. S&OP integrates all the different plans for a business and also ensures that every functional department is on the same page. Sales and Operations Planning (S&OP) is a powerful decision making tool for business executives as well as line managers. S&OP enables the company’s managers to view the business holistically and gives them “one set of numbers to work with” and a window into the future. The value to any company of balancing supply and demand has long been understood. When we add volume and mix to this equation, we get the four fundamentals needed for effective business balance. For those companies grappling with these 4 fundamentals, S&OP can provide excellent benefits. The role of S&OP process is to balance supply and demand at the volume level. S&OP process engages all business functions, finance, human resources, marketing, materials, operations, product management and sales. Ensure people recognize that S&OP is an integral part of their responsibilities. Management should view the process as an avenue to effectively running the business and determining what levers should be pulled in order to better meet customer expectations. S&OP runs in monthly cycles. Each month the person (usually an […]

Supply chain transparency is not going away

Consumers want to know where the products they buy come from. Companies will have to disclose more supply chain information than ever before as consumer pressure and regulations increase. While the demand for transparency in the supply chain increases, most companies are unaware of labor practices, product material contents and/or potential risks past their direct suppliers. Supply chains, in reality, are ten times the number of direct suppliers and require sophisticated data management to be properly maintained. Among many pieces of potential supply chain data, regulations in particular require detailed supply chain information to be collected and maintained. The most prevalent regulations affecting the supply chain are Dodd-Frank 1502 (Conflict Minerals Rule), Foreign Corrupt Practices Act (FCPA), Restriction of Hazardous Substances (RoHS), Registration, evaluation, authorisation and restriction of chemicals (REACH), Supply Chain Transparency Act (SB657), United Kingdom Modern Slavery Act and CA Prop 65. Supply chain regulations do not appear to be decreasing either. Right now, talks about managing and regulating “conflict minerals” in the European Union (EU) as well as monitoring trafficking and slavery in the United States are underway. With so many regulations and supply chain data to manage, companies experience a number of challenges including international supply chains, multiple languages, many suppliers that exist in multiple tiers of their supply chain and a constantly changing profile of products and suppliers.

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