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PRESENTATION TITLE
Cindy Goodman – AT&T, Business Development
David Kalan – RM2, SVP of Marketing and Business
Development
Why You Need IoT
in Your Operations
© 2017 MHI®
. All rights reserved.
issue in supply chain management is the timeliness of data 1
pallet loss reported annually by U.S. Postal Service 2
billion ‘things’ will be connected to the Internet by 2020 3
trillion economic value from IoT in the supply chain and logistics sector over next 10 years 3
1 ‘Visibility, Speed, and Agility’, eft reports, 2014 2 ‘The Eye Popping Numbers for Reusable Packaging and Pallet Loss’, June 25, 2015, Rick LeBlanc 3 Internet of Things in Logistics, DHL Trend Research | Cisco Consulting Services, 2015
20%
$1.9 50
Lost Assets #1 Inhibitor to the growth of reusable packaging
#1
Location
Light
°C Humidity
Level
Shock
Usage Hours
What is IoT for the Supply Chain?
How Does IoT Work?
AT&T M2X cloud
AWS Azure
AT&T IoT gateway
analyze
visualize
act
• Verify product quality while in transit
• Reduce manual labor
IoT Can Empower You to…
• Automate chain of custody records
• Comply with regulations
• Identify weak areas in your supply chain
• Proactively address critical incidents
Verify product quality while in transit
Reduce manual labor
Automate the scheduling of deliveries, creating delivery
routes, dispatching technicians, etc.
Automate coordination with customers, such as in the
produce industry
Detect when shelves are empty and automatically place
an order to the supplier for replacement merchandise
Supply Chain Benefits of IoT
Before, onsite supply chain managers would spend time manually checking the condition of each container. Maersk now has near-real time visibility into the conditions of each refrigerated container at almost any part of its journey during the supply chain - reducing resource needs and ensuring the quality of goods during shipping.
Cell Site On board
ZigBee AT&T GSM Device
On Container
AT&T Cellular Core
Network
Customer Asset Tracking Portal
VSAT Earth Station
Cellular Terrestrial
Auto Switches
Maersk Monitoring Containers Globally
Identify weak areas in your supply chain
Proactively address critical incidents
Monitor temp, humidity of food during harvest to prevent
spoilage
Reduce number of deliveries (by 48%), by filling a tank
only once it needs to be filled
Remove manual scanning, automate input to supply
chain systems using cellular and RFID
Supply Chain Benefits of IoT
What IoT Can Show You
Automate chain of custody records
Comply with regulations
Detect/notify when shipments go outside of desired path
so someone can act
Detect when merchandise is tampered with during transit
Use automated time, location stamps to verify custody of
goods at each exchange and enforce accountability
Supply Chain Benefits of IoT
FOR SUPPLY CHAIN PROVIDERS
Return on Investment
FOR END CUSTOMERS
Tank Monitoring ROI Example 1
(1000 units) - IoT Cost per Asset: $17.50 - Reduction in Deliveries: 7,700 - Efficiency Increase: 26% - Total Savings: $300,000 annually
1 ROI example for illustrative purposes only
AT&T IoT Connectivity: LTE-M • LTE Category-M is a licensed
LPWA network that AT&T is
launching
• Low Power, Wide-Area (LPWA)
networks are wireless networks
optimized for machine
communication and IoT
Lower Hardware Cost
Extended Battery Life
Enhanced Coverage In-building and subterranean
LTE-M Enables IoT
“If your pallets could talk, what would they say?”
I think I have been stolen.
Hey I’m over here!
Man, this road is bumpy!
Why did this trip take so long?
I’m carrying a recalled product!
Wow its hot in here! Don’t send me to that
warehouse they treat me bad.
Electronic Link to the Internet of Things.
10 year ZERO maintenance life span, environmentally sealed and designed to withstand a wide range of conditions. Cost effective and accurate monitoring of assets with far reaching traceability and connectivity across multiple regions. Cloud based data platform allowing customers access to data via APIs, Web Portals or a newly designed bespoke system. RFID Enabled
The First Smart Pallet
630 RM2 pallets 540 Wooden pallets
A connected durable pallet reaches cost parity with traditional wood pallets after 35-70 trips. Once losses are decreased through connectivity technology, one fifth of the pallets are required to make the same number of trips using durable, as compared to traditional wooden pallets. * from Sultz sustainability document
It takes 899 BLOCKPal to do the same job as 4,400 wooden pallets
Driven by
Reduced weight
25%
Greater durability
20x
Reduce carbon emissions by 1.4M lbs. for every
million RM2 pallet trips*
*Compared with standard wooden pallet, 2014 RM2 Pallet Life Cycle analysis, Pure Strategies Inc.
Low profile
IoT Enables more Advanced Materials
1
4
BLOCKPal Compared to Traditional Pallets
Use of BLOCKPal reduces 1,588 truckloads = 30 truckloads per week
10,000 BLOCKPals used equivalent to removing 1,800 automobiles from the road annually
BLOCKPal eliminates 1,588 trucks for collection delivery annually
Better vehicle fill results in a 17% reduction of inbound empty pallet traffic
Real Savings of a 6 Million Pallet Trip
Origin
Transit Point
Distribution Center
End Point
• Inventory holding • Dwell Time
• How long was it here? • Why is my material sitting here? • True transit time
• When does product need to leave? • Are we traveling for an extra day?
• Quantity needed • Transit time.
Supply Chain Story Bottlenecks Delays Opportunity for savings More timely PoD Reports
Trip of a Pallet Through the Supply Chain
Each RM2ELIoT has a unique ID which notifies LTE-M Network of its: - Pallet ID - Date - Latitude - Time - Longitude
RM2 secure cloud platform holds status and full location history of all the pallets in the supply chain.
LTE-M Network receives information sends to the RM2 secure cloud.
Cloud based data can be securely integrated into existing IT infrastructure using standard APIs or used to create a fully featured bespoke system.
Add RFID mention How RM2ELIoT Communicates with AT&T
Why You Need IoT in Your Operations
• IoT is here now • Available worldwide • No infrastructure
investment required
• IoT enables the story of reusable assets
• IoT can make your existing assets smart
IoT can contribute to • Cost savings • New revenue
PRESENTATION TITLE
THANK YOU
© 2017 MHI®
. All rights reserved.
Cindy Goodman – AT&T, Business Development
Cindy.goodman@att.com, 281-727-9455
www.att.com/iot
David Kalan – RM2, SVP of Marketing & Business Development
David.kalan@rm2.com, 480-334-1016
www.rm2.com
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