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Redefining Supply Chain& Manufacturing
Sofia Katsara, Channel Sales Lead
18th April 2019
1920 1980s 2010s 2020s
Source: Yale Professor Richard Foster
Average lifespan of a company on S&P 500
Creating new digital leadership imperatives
Global access to food and water would reduce poverty for
65% of world’s
rural poor8
Predictive analytics is the
#1 AI use case
for enterprises across
manufacturing5
$1T global
spend on cybersecurity products andservices by
202113
$6T annual
global cost of cybersecurity damages by
202112
70% expected increase in
agriculture output needed to feed
the world in 2050975% of
chemical companies plan
to double level of digitization by
20204
400% expected
increase in amount of water needed for
manufacturing through 205010
75 millionjobs displaced by automation and
133 millionnew jobs created between 2018-
202211
Industry
AI Workforce
Cybersecurity
Sustainability
50% of
companies that embrace AI over the next five to
seven years may double their cash
flow2
When fully integrated, new
technologies could create up to
$3.7 trillionof global GDP by
20251
Machines complete
29% of
tasks today and
71% by
20256
Manufacturers are seeing an average
17-20%productivity gain
from smart factories3
$60B estimated
energy cost savings for commercial buildings with
1-4% increase in
intelligent technology7
42,5%of the global
workforce
(1.87 billion) will be mobile
by 2020
76% expected
increase in worker production and
70% expected
increase in demand for products and services based on
AI5
Product-as-a-service
Collect and leverage data from
sensor-based products, optimize
revenue streams, and reinvent the
product experience through service
Factory of the future
Connect the factory to existing
systems, achieve end-to-end visibility,
and enable quality assurance with
operational data
Intelligent supply chain
Identify process inefficiencies,
develop flexible and digital
technologies, and improve
responsiveness
Recommendations
Recommendations
Real-time customer view
Automatic part detection uses smart cameras to detect model
and part numbers
Smart devices enable self-learning and self-healing
devices
Guided service workflow enables a
high first-time fix rate
Upsell and cross sell opportunities enable additional revenue
opportunities
Service history insights transform maintenance logs
into smart graphics
Cognitive service alerts automatically triggers alerts
AI enables predictive anomaly detection at the Edge
Tuned and optimized AI models give access to
optimized AI model library
Service bots diagnose assets automatically
Smart routing enables smart routing of work
orders
Thyssenkrupp lays the foundation for intelligent buildings
Challenge
Thyssenkrupp, wanted to
find new ways to use IoT
sensor technology to
make a building interact
with the facility manager
and the owner. A way
also to try new
technologies and
showcase them to
customers / public
Results
Optimizing how the building and its
components are used
• MULTI makes smart decisions about
where the elevator cars go
• Predictive maintenance solution MAX -
reduce elevator downtime by half
• multifunctional dashboard w/ digital
representation of the physical unit
Using a real-life laboratory to
accelerate innovation
“We don’t have to install massive new physical assets for testing because we do it all
through the digital replica—with keystrokes rather than sledgehammers. We have this
flexibility thanks to Willow Twin and its Azure infrastructure.”
- Professor Michael Cesarz: Chief Executive Officer for MULTI thyssenkrupp Elevator
Strategy
“Innovation Test Tower”
– a digital twin takes in
live data from IoT
sensors that are
monitoring all of the
building’s systems, along
with data about the way
space is being used and
occupied. Live process-
analyze-act
Next pickup: bin 5141
Bin 5139
Bin 5140
Bin 5141
9
Process optimization controls high speed processes
Autonomous vehicles/robots optimize
warehouse utilization
Machine calibration automates system
tuning
Smart systems enables process automation and optimization
Smart spaces transmits information on energy
consumption
Factory assistance provides operators with information
upon request
Predictive maintenance enables condition-based maintenance
Cognitive quality detects defects with image
recognition
Product traceability allows end-to-end
tracking
Health and safety mitigates and prevents
incident factories
Industrial robots/cobots adapt to
changing location
Tailor your product in a connected factory
Challenge
KUKA, a robotics
manufacturer, was looking
to design the next
generation of robots—
ones that could sense
their surroundings and
safely work side-by-side
with humans.
Strategy
Connect 60,000 devices
and robots to back-end
monitoring systems,
enabling them to adapt
quickly and provide
actionable insights into
factory operations on
the Azure platform.
Results
• Humans and robots worked
together in close proximity, with
robots alerting human technicians
of issues and calling for
assistance when needed
• Improved safety and operations
“Thanks to disruptive breakthroughs in robotics technology, combined with the
power of the cloud…our solution enables human-robot co-working and directly
connects the management with the shop floor.”
— Dominik Bösl, Technical Fellow, Corporate Innovation Office, KUKA AG
Challenge
• Toyota sought a digital transformation to regain market leadership.
• It’s first project was a predictive maintenance solution for field technicians.
Strategy
• Microsoft Enterprise Services provided envisioning, design, and delivery.
• Microsoft Adoption and Change Management Services provided training.
Results
• Unlocks maximum value from data.
• Boosts customer satisfaction.
• Supports more effective employee recruitment, retention.
“Far from being a ‘mere’ technology provider, Microsoft is our close partner, providing advisory services from the envisioning phase and business case development to design, deployment,
change management, and more.”
— Joakim Plate, Director, Service Market, Toyota Material Handling Europe
Toyota Material Handling Europe partners with Microsoft to build a digital future
Inventory levels
452232111
Customer part no.
Customer location
10 week forecast Stock on hand
45245465
36525224
58744563
36225412
12545583
London
Zurich
Brazil
Singapore
Sydney
London
Understock
Understock
Over stock
Over stock
On track
On track
Increase supply level
Decrease supply level
102
352
521
124
346
356
Recommended adjustments
Steel price
Salvador product flow San diego product flow
Outsourced supplier options
• Nabtech corporation
• Commonwealth aero
• GRS aerospace
• DandC engineering
• Advanced
electronics, ltd.
• Apex industries
• Eastern aircraft tires
• Fabritech ab
Outsourced supplier options
Mombasa product flow Hamburg product flow
New distribution center options
Marketing event timeline
Projected production levels
Planning Demand forecast
Region CategoriesAsia Automobile
Q4Q3Q2Q1
Demand forecasting predicts future demand with AI
Predictive and cognitive quality, yield uncovers defects through
image recognition
Inventory planning and optimization spans across
multiple echelon and location
Warehouse automation optimizes warehouse
utilization
Sourcing and procurement enhances spend analytics,
contracting, and BOM management
Supply chain visibility and orchestration drives agility,
responsiveness, and flexibility
Integrated track and trace enables product
tracking
Integrated business planning empowers businesses with
prescriptive analytics
Products and Services Organization Size Industry Country Business Need
Supply chain dreams: Microsoft SCE uses serverless computing to drive innovation & Control Tower for Realtime Supply chain visibility
To effectively manage supply chains for all Microsoft software and hardware,
Microsoft Supply Chain Engineering (SCE) has to collect, analyze, and report
petabytes of data and millions of integration points in a timely manner. SCE uses
Azure serverless technologies to create a service that helps it relate and search
cross-functional data in near real time, without buying new infrastructure or writing
new code.
Combining predictive analytics, ML and Advanced AI, Navisphere gives you a
vision of the future. Enabling the visibility of your good between the loading
points, consolidating with real time info on weather, global events, traffic, etc
anticipating obstacles before they occur and enablin AI to route/re-route your
cargo
Business AgilityUnited StatesProfessional Services
120,000 employees
Azure serverless technologiesAzure Event GridAzure Event HubsAzure Cosmos DB
Waberer’s
International:
achieving a whole
new level of
planning
optimization
through AI
RESULTS
SOLUTION
a powerful new business tool - the Waberer’s Intelligent
Planning Engine, WIPE, a cloud-delivered planning
automation platform that uses complex mathematical
models and algorithms to seamlessly allocate driver team,
load and journey schedules in the most efficient way.
• Full automation of mission critical business process –
real time
• Performance now above industry best practice - 92% of
trucks full on the road, instead of 87%
• Significant annual cost savings due to improved
resource allocation
• Reduced chance of scheduling ‘human error’
• Greener operation, less fuel used
Waberer’s International EMPOWER EMPLOYEES | ENGAGE CUSTOMERS | OPTIMIZE OPERATIONS |TRANSFORM PRODUCT|
“92% of the time our trucks are on
the road they are now loaded,
which means significant annual
cost savings for us.”