WEBVTT

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JOS VAN HILLEGERSBERG: Today's
supply chains are

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transformed into dynamic
networks of businesses.

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They deliver customised
products and services

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to the consumer in ever more
smart and sustainable ways.

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How does this work?

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Meet Hans and Crystal.

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Crystal buys most of
her clothes online.

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Sometimes, she orders
at the online store

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that can deliver
within three hours.

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She often returns clothes
that do not fit well.

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She usually orders multiple
colours and returns the ones

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she does not like.

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She has recently subscribed to a
home delivery meal service that

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ships a box to her home every
weekend, with fresh ingredients

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to cook three meals a week.

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Hans loves to go out shopping.

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He often buys electronics
in local stores

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to try out the products
and get more service.

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He thinks of the life cycle
costs of what he buys.

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He likes to get
information on energy

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usage and environmental impact.

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Sometimes, his
equipment breaks down

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and he wants quick repairs.

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In some cases, he sends
back the entire product.

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Luckily, some companies
offer product monitoring

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and provide service remotely
to help Hans use his products.

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Hans buys his clothes from
an internet shop that offers

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customised shirts and suits.

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His shoes, he gets
from a local store

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so that you can try them on.

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If his size is not on
stock, he asks the store

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to ship the shoes
directly to his house.

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Retail stores today
are innovating hard

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to service modern customers
like Crystal and Hans.

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Retailers install
equipment like 3D printers

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to customise products.

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They are integrating their
physical and online stores.

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We call this
omni-channel service.

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They transform traditional
stores into experience centres.

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Digital price tags help them
to dynamically manage prices.

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They monitor web traffic
to learn about the interest

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of consumers for new products.

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They try to predict demand
and share this information

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with the logistics service
provider and the manufacturer.

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The logistics service providers
experience these changes.

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Order size decreases,
product variety increases.

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More frequent and fast
deliveries are demanded.

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They risk that volumes
are becoming too small.

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They have difficulty to fully
fill trains and barge vessels

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and have increasingly
used trucks.

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Even these are
hard to completely

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fill, leading to empty miles.

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To fight these trends,
they try to collaborate

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horizontally and bundle goods.

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In this way, they can
reduce empty miles

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and use more sustainable
modalities like rail and water

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transport.

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They set up multimodal
terminals to be

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flexible in using
water, road, and rail.

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They set up distribution
centres near

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busy commercial and
industrial centres

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to bundle last mile transports.

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In synchro model
transport, the transport

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modality is always
optimised to meet demand.

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A lot of effort is put into
bundling and fine-tuning

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delivery times in favour of
energy efficient transport

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and storage modes.

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As soon as the market changes or
emergency events require this,

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modalities can be
changed on the fly.

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All of these efforts
require a lot

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of sharing of information
and intelligent planning.

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By embedding sensors in
products, whereby asking end

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users to share usage
data with manufacturers,

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the need for service and
maintenance can be predicted.

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This allows producers to
organise proactive maintenance

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and to anticipate where spare
parts are needed and when.

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Products that do break down
or reach their end-of-life

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will be returned
to repair centres,

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refurbished, or recycled in
specialised recycle centres.

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There is no need to transport
them all the way back

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to the original manufacturer.

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Components and resources may be
reused in other supply chains,

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and waste will be reduced.

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To coordinate all
these activities,

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high-quality information
collection and sharing is key.

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ICT enables supply chains
to anticipate much better

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on what needs to be done.

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Knowing the current
state of the supply chain

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is greatly supported by
real time information

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on, for example, sales, stock
levels, returns, location,

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and volume of stock.

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Trucks, trains, and ships can
be followed using their location

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information.

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Using all this
information, plans

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can be computed,
shared, and discussed.

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Actors in the supply chain
can anticipate on changes

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and adapt plans as needed.

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Information can be aggregated to
enable higher level decisions,

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such as how to design the
structure of the supply chain

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network.

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Using ICT smartly, it will
change the supply chain

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manager's profession
from a firefighter

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to a strategic business manager.

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