Tag Archives: Internet of Things

IIoT: Tomorrow Thinking for Supply Chain

The Internet of Things (IoT) is designed to make our data more useable. What opportunities and concerns does it present within logistics, where it is referred to as Industrial Internet of Things (IIoT) ?

The trends of Supply Chain technology are shaping the future of logistics management.

The common thread is the push toward hyper-interoperability, where technology, people and process collaborate to create true visibility, accurate orders, and happy customers.

It is impossible to ignore the pressure on retailers and distribution centre (DC) to re-engineer operations to meet the Omni-channel fulfilment mandate. The evolution of the Internet of Things (IoT), designed to make data more usable, is quickly becoming a reality across global supply chains.

The Industrial lnternet of Things

Definitions of IoT spin around connecting sensors, programmable logic controllers, and RFID data with the internet so that other systems or analytical software can respond to or make sense of the data. An RF gun, voice recognition, and RFID in the warehouse all provide IoT–style sensor data; it is called the “Industrial Internet of Things” (IIoT) to differentiate from consumer applications.

The order management system needs to orchestrate the fulfilment by interacting with inventory allocation, warehouse, management, transportation, and workforce scheduling systems using user-configurable business rule. The overall goal for Omni-channel is to satisfy more consumer demand with acceptable profit margins.

Logistics management in the warehouse

Many opportunities for improvement through smart forklifts, diagnostics of the equipment, speed controls, anti-slip technology, collision detection, fork speed optimisation, promoting new process flows, autonomously trip to a shipping dock for unloading, etc., are some of the applications and possibility a multi-channel system provides for the improvement of the overall process.

Transportation management

Tracking trucks based on RFID, GPS, RF scans, temperature, sensors embedded in the freight -all of these fit the definition of IIoT, the benefits being: improving network-based routing, the use of a smart phone for routing to determine congestion and better alternative routes.

Security

Security is the number one concern around IIoT, working hand in hand with public cloud solutions. It helps to detect Cyber attackers’ techniques quickly and avoid being tricked by them.

Inventory Management

This is a  hidden key to success. A major application of Omni-channel is a customer ordering a product and the retailer fulfilling the order from within their store network versus a distribution center. This introduces the requirement of advanced information systems to provide awareness of inventory throughout the store network. The omnichannel system would identify the stores with the right inventory and determine the most cost-effective location to fulfill from to provide the promised service level. Retailers challenge is the implementation of new order of management systems, to build a single view of inventory availability – foundation of Omni-channel fulfillment – and to recognize the new consumer’s expectation, the goal being to optimize inventory deployment so that the required inventory is where it should be to satisfy consumer demand at a lower cost.

Ordering

The first step is for the retailer to understand the Omni-channel strategies and how the customer’ buying patterns have changed (ordering an item online, by a mobile, from a store and picking it later, the item being shipped to the customer’s home, the customer calling to a call centre, etc. A fully-functional technology Omni-channel fulfilment operation has to be integrated according to the various selling systems.

Shipment and Delivery

Omni-channel technology, as the one IIoT provides,  plays a vital role in this environment by enabling store employees to efficiently navigate the store floor to find the ordered inventory. Once the item is retrieved, store employees utilize packaging stations to prepare order for shipment and utilize small parcel carriers to pick-up and deliver the orders. Using the same trailers scheduled for normal store delivery, however, separating these pre-ordered items on the trailer is the critical piece in this strategy. Loading these items at the front of the trailer, labeling them with special tags utilizing barcode-scanning technology, and using colored totes are a few ways to flag the inventory.

Returns processing

Returns processing is still an improvement opportunity for many Omni-channel retailers. The goal is to allow a consumer to return purchases to either stores or a central returns facility regardless of where the sale originates.

The top three priorities identified are inventory planning, fulfillment capabilities and returns processing. Retailers have to keep working on the enterprise-wide visibility of available inventory. Inventory must be deployed differently in an Omni-channel world; many retailers are beginning to address that challenge, developing flexible fulfillment capabilities that leverage stores, DCs, and vendors to fulfill consumer demand. However, store fulfillment processes are not as efficient as they are in a DC where conditions are more controlled. Omni- channel is having a profound impact on supply chain organizations-especially logistics across all levels of maturity, being better equipped to embrace Omni-channel from a people, process and technology perspective.

So what new approaches are you applying to your Supply Chain? Let us know in the comments below.

This article was first published on LinkedIn

Are You A Procurement Starter Or A Finisher?

Are you a starter or a finisher? According to IBM’s Barry Ward, you’d better be both! Barry discusses the key skills most critical to procurement in the coming years.

Barry Ward, Procurement Brand Manager, Global Business Services at IBM is a keynote speaker at Big Ideas Summit 2017.  He’ll be explaining the big ideas behind Watson and the opportunities that cognitive tech presents to procurement. When we spoke to Barry ahead of the event he was keen to remind us that, despite rapid tech developments, traditional procurement skills are far from being made redundant.

How do you stay productive and current in a world of fast-paced innovation?

  • Collaborating with colleagues
  • Networking with others – using social media and other channels
  • Building and nurturing an ecosystem of organisations that are leading or developing solutions that may have or will have an impact in your function

What key skills are critical for procurement in the next 5 years?

We will always need traditional procurement skills such as the ability to be a strong negotiator, to communicate well internally and externally, to be a starter and a finisher. But, on top of this I think the importance of an open mind and curiosity in terms of the role that technology can play in the future is going to be more important than ever.

There will be an increasing need for project management skills, change management, relationship management skills. This is on top of the usual and still critical traditional procurement skills such as category expertise or negotiation skills. I can also say that there is a growing importance in soft skills: communication, teamwork and collaboration and problem solving.

How has technology, the Internet of Things and e-Procurement affected IBM?

Technology has placed a key role in IBM’s transformation over the past 20 years or so. Its importance is perhaps more critical in the the current phase of our procurement transformation. Understanding how digital technology can transform the supply chain and our source to pay activities is critical in terms both driving our efficiency and effectiveness but also to showcase how procurement can drive value throughout our organisation.

This positions Procurement in a much more strategic role than ever before. Procurement data is much more visible than ever before.  Insights through combining unstructured and structured information augment our knowledge, with alerts being posted to mobile devices instantaneously means that buyers can have much better assurance of supply continuity, of being able to understand price opportunities and to focus their time and energies on higher value activities than ever before. Lower value work will become automated or systems-driven. This is all good news for Procurement.

One clear impact of this transformation is that our key stakeholders now have very high expectations of high performance from Procurement personnel, perhaps more so than ever before, but the rewards are clearly evident in terms of the value that individuals can bring as well as the procurement organisation as a whole.

How valuable have mentors been in your career?

Mentoring is a highly personal thing. Some people need to have guidance and direction particularly in an organisation that may be widely spread and fast-moving, and if you are looking to move around different functions. Similarly for those who are in a smaller organization, mentors can bring an external, broader perspective.

Others are confident of their own abilities in charting a course for their own development and progression. I have had mentors in the past, particularly when I was in the early stages of my career. The more confident you are of your attributes and ambitions the less I have found that I needed mentoring. I spend time mentoring others mainly from within IBM and mainly from other geographies.

How did you first become interested in procurement?

I didn’t know very much about Procurement in my time as an undergraduate. It was not a profession that had much coverage when I was at University, unlike Finance or Engineering.

My first job as a business graduate was as a Purchasing Analyst running Bill of Material queries in a MRP system for a large manufacturer. This brought me into contact with many parts of the organisation including procurement. The procurement manager at the time was quite an intellectual and gave me a broad view of the role that procurement can play in an organisation.

Clearly he influenced me as I have spent my subsequent career in procurement and supply chain roles!

How will cognitive technology impact procurement professionals?

Cognitive technology will transform the role of the procurement professional and the impact that he or she can make for their organisation. It will be able to remove some of the more prosaic parts of the procurement role, such as data gathering and analysis, together with augmenting a buyer’s knowledge thus enabling them to spend more time on higher value tasks and ultimately make better decisions and be more effective.

Procurement professionals will need to understand how cognitive technology works – so they can be alert to potential mistakes that can happen from cognitive solutions, so that data input from these solutions is relevant and accurate.  It will eventually help, and force, them with their career progression as well as developing their expertise.

Join the conversation and register as a digital delegate for Big Ideas 2017

Keen on the Internet of Things? Beware of IoT Botnet Zombie Attacks!

Everyone’s talking about the Internet of Things and all of the exciting things it can do for us! But just how much have we considered the possible security risks? 

What’s All the IoT Fuss About?

CPOs are becoming ever keener on enhancing hyper-connectivity within their organisations using the Internet of Things. This is unsurprising given the potential opportunities for procurement teams; warehouses that can tell you what parts you’re running out of and reorder them for you, more efficient processes and the chance to revolutionise how they manage supply chains.

Of course, it’s not just businesses that will benefit from IoT. Early adopters are already using IoT in their homes with smart fridges, smart toasters and smart collars for their pets. Experts predict that by 2020, more than half of new organisations will run on IoT.

Given all of these benefits, you might well ask what’s not to love? Well, judging by recent events, it might be prudent for us all to exercise a little more caution as far as IoT is concerned. As it stands, the process is wide open to cyberattacks.

Botnet Zombie Attacks

Individual devices pose almost no threat to any computer or data centre but what happens if millions of them were taken over at once? IoT devices are likely to have weaker security (research suggests that default usernames and passwords for devices are rarely changed), which makes them an easy target. Hackers will pre-program their malware with the most commonly used default passwords in order to hack multiple devices.

Back in October, an IoT botnet, Mirai, attacked a number of the internet’s websites including Spotify, Netflix and PayPal. The botnet works by consistently searching for accessible IoT devices protected by default passwords. Once these have been identified, the malware turns them into remotely controlled bots and is able to use them for large-scale network attacks – think robot zombie army!

This week, computer security journalist Brian Krebs posted an article on his blog, Krebs on Security, revealing the identity of Mirai author to be Paras Jha, owner of a DDoS mitigation service company ProTraf Solutions and a student of Rutgers University. Whilst Mirai has only been used mischievously so far, to shut down certain sites, the actions have brought to question what damage could be inflicted by real cybercriminals.

The Worst Case Scenario

Whilst the Mirai October attacks were relatively harmless and only resulted in some websites crashing, some tech commentators are regarding it as a test-run. It’s concerning that the next botnet attack could be aimed at data theft or physical asset disruption.

As Krebs stated in his blog “These weapons can be wielded by anyone – with any motivation – who’s willing to expend a modicum of time and effort to learn the basic principles of its operation.” Someone with a grievance against a particular website could easily have it taken offline or simply employ a hacker to do it for them.

It’s especially concerning to imagine the consequences of IoT devices being hacked within critical or high security areas such as hospitals, banking, government, transport etc. Time will tell if we are able to secure IoT before we are subject to further, and perhaps more significant, botnet attacks.

What Can Be Done?

How can individuals and organisations improve their IoT security and prevent cyber attacks? We’ve put together a quick checklist to help you strengthen your security.

  • Use strong login passwords for all your devices and strong Wi-Fi passwords. A strong password contains upper and lower case letters, numbers and symbols.
  • Make sure all the software you use is fully updates – this can fix security flaws.
  • Don’t open mysterious email links or attachments – if you weren’t expecting it, don’t open it!
  • Never reveal card information.
  • Don’t trust anyone who calls you to discuss your computer or devices – hang up the phone.

What do you think about the IoT security risks? Should CPOs halt their investments and wait for the cybersecurity to catch up with the technology? Let us know in the comments below.

Here’s what else has been going on in the world of procurement this week…

Trump Kills TPP

  • President Trump upended America’s bipartisan trade policy on Monday as he formally abandoned the ambitious, 12-nation Trans-Pacific Partnership.
  • In doing so, he demonstrated that he would not follow old rules, effectively discarding longstanding Republican orthodoxy that expanding global trade was good for the world and America.
  • Although the Trans-Pacific Partnership had not been approved by Congress, Mr. Trump’s decision to withdraw carries broad geopolitical implications in a fast-growing region.
  • Trump said American workers would be protected against competition from low-wage countries like Vietnam and Malaysia, also parties to the deal.

Read More on New York Times

Wal-Mart Cuts 1,000 HQ Jobs

  • Wal-Mart Stores began a round of some 1,000 layoffs at its corporate headquarters, with most cuts targeting the retailer’s supply chain operations.
  • The shakeups, which have been expected, suggest that Wal-Mart is willing to undo much of the work in its existing e-commerce operations in favour of Jet’s signature pricing and fulfilment algorithms, which reward shoppers in real time with savings on items purchased and shipped together.
  • The dent in its supply chain ranks could undermine one of Wal-Mart’s core strengths: its highly efficient brick-and-mortar-based distribution system.

Read More on Retail Dive

Samsung’s Exploding Galaxy Note7 Blamed on Battery Suppliers

  • Approximately 2.5 million phones have been recalled by Samsung due to explosive defects of the Galaxy Note since September 2016.
  • Recalls happen all the time, but while the Samsung case rose to infamy due to its flammable and potentially injurious nature, the revelation that Samsung’s primary and backup suppliers independently produced a faulty phone component is equally remarkable.
  • What was a supply chain problem was resolved by an operations solution in this particular case. However, batteries will be subject to more strict quality controls to avoid future issues.
  • Previous analyses also have suggested Samsung’s rush to production — both before and after the first recall — may have also impacted the finished good’s quality.

Read More on Supply Chain Dive

Procurement Salaries On The UP In 2017

  • Procurement professionals can expect to see pay rises averaging 10% in 2017, according to a salary survey
  • However, contractors will get the biggest rises – 15% – while permanent staff can expect to get 4%
  • Sam Walters, associate director at Robert Walters, said: “Across all levels of seniority we have seen demand grow for high quality procurement professionals over the past year, with those with IT procurement experience being particularly highly sought after

Read more at Supply Management

3 Ways the IoT Can Benefit the Supply Chain

We’ve heard about the IoT disrupting our personal and home lives. But where will these technologies really stand up in the supply chain?

iot in supply chain

We’ve come to know the Internet of Things as a technological phenomenon that is revolutionising many ways of life. The idea is that devices and computer systems can communicate and work with each other, and make things easier. And we’re starting to see applications in all manner of places.

The IoT is making exercising more intuitive, making homes more secure, and making offices and hospitals more efficient. But these benefits are only scratching the surface. There are also many IoT benefits that are less visible to the general public. One that is becoming fairly interesting is the effect on business supply chains.

This may not be the sexiest application of the IoT, but it’s one with significant potential to change the nature of big retail companies and even lower costs for consumers. Here’s how it’s happening.

IoT In Production Plants

IoT sensors are allowing manufacturers to collect key data from various physical spaces within production plants and manufacturing facilities.

Sensors can be used to monitor machine temperatures and send automatic alerts to problems by way of changing lighting. They are also able to monitor the use of safety equipment (and the condition of that equipment) automatically.

Additionally, factory conditions such as temperature and humidity can be tracked and controlled. Individual pieces of inventory can be tagged the moment they’re created, so as to be kept track of in the future. Other functions more typical of ordinary office environments can also come into play, like security and communication measures.

It’s easy to see how basic IoT sensors can help to automate some of the trickier aspects of production that kick off the supply chain process.

IoT On The Road

Perhaps the most fascinating impact of the IoT on supply chains is occurring on the road, in shipping vehicles. Tracking sensors on individual pieces and crates of inventory help companies to “watch” those materials until they arrive at retail locations or other points of sale.

However, there are also IoT measures being put in place to keep fleet vehicles operating safely and on schedule.

By outfitting fleet vehicles with high-end GPS and WiFi, companies can provide managers with real-time sharing of vehicle diagnostics and more important data. These devices can keep track of vehicle performance, driver activity, and routing information, effectively automating the management and scheduling process that was once a headache for everyone involved.

Vehicles can be repaired precisely when needed, and be directed on the most efficient routes. Plus drivers can be kept on reasonable schedules, and held accountable for their own tendencies on the road.

IoT In Stores

Finally, once the product has been shipped to retail locations, there are also IoT-related technologies in place to monitor that selection for the sake of restocking inventory when necessary.

The IoT has the potential to drastically alter numerous aspects of the retail experience. However, when it comes to the supply chain, “smart shelves” are making the biggest difference.

These are shelves that can recognise when inventory is getting low and send automatic alerts to store managers, or even directly to production facilities, communicating orders and keeping the store in supply.

That about covers an overview of how the IoT is changing the supply chain in retail businesses. On the business end of things there’s no telling how much these changes can cut costs and improve the speed and accuracy of production.

And for consumers, those same benefits should ultimately translate to fair prices and consistently stocked store shelves. All in all, it could be one of the more impactful mainstream IoT developments.

Blaine Kelton is a programmer and freelance writer currently living in Beverly Hills. From technological advancements to new albums by favourite artists, he’s eager to just write and get his work out there.

Week In Tech: IoT Security Spending, Spiceworks & Drones

Does the future of IoT security lie in the Cloud? New research published suggested that security spending is set to take off.

IoT Security

If the latest research from Gartner is to be believed, security spending on the Internet of Things (IoT) is set to accelerate in 2016. The figure could well top $348m in 2016, meaning an increase of 23.7 per cent compared to $281.5m in 2015.

Research director Ruggero Contu, commented that the current IoT security market is small, but ripe for growth, as both businesses and consumers  migrate towards smart and networked devices.

“Gartner forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 per cent from 2015, and will reach 11.4 billion by 2018. However, considerable variation exists among different industry sectors as a result of different levels of prioritisation and security awareness,” he said.

Looking further afield, Gartner predicts that spending could rise to as much as $547m in 2018. This assumes that IoT adoption continues to gather at this same increased pace. These figures assume a march towards connected cars, heavy trucks, commercial aircraft, farming and construction equipment.

With more and more transport and equipment becoming part of the connected world, Gartner say that cyber attacks stemming from IoT will amount to 25 per cent by 2020. A lot more clearly needs to be done because as it stands IoT security spending accounts for only 10 per cent of IT budgets.

What can IT do then to better prepare itself for the connected future? Contu says we must look towards the cloud for answers to our security concerns, commenting:

“IoT business scenarios will require a delivery mechanism that can grow and keep pace with requirements in monitoring, detection, access control and other security needs.”

He goes on to say: “The future of cloud-based security services is in part linked with the future of the IoT. In fact, the IoT’s fundamental strength in scale and presence will not be fully realised without cloud-based security services to deliver an acceptable level of operation for many organisations in a cost-effective manner. By 2020, Gartner predicts that over half of all IoT implementations will use some form of cloud-based security service.”

Spiceworks Deploy Mobile Help Desk

Spiceworks has debuted a new app that takes its cloud-based help desk solution mobile for the first time.

The app will allow IT professionals to deploy and manage its services on smartphones and tablets, and allow push notifications to help them stay on top of tickets while on the go.

“We’re focused on helping IT professionals become more efficient by enabling them to run their help desk entirely from their phones or tablets,” said Sanjay Castelino, VP of Marketing at Spiceworks. “With a tool that’s easy to deploy and use on the go, IT professionals can now support their growing business in a way that works best for them.”

The platform also doubles as a social network and allows members to share their own technical know-how with others in the community. What’s more, users can submit requests for quotations for IT purchases to vendors direct from the app itself.

The Spiceworks Help Desk mobile app is available for download today on iOS- and Android-based smartphones and tablets.

When Will Drones Lead to Loss of Life?

As drone flight increases in popularity, and with Amazon’s delivery plans seeing no signs of abating, aviation officials say it’s only a matter of time before the inevitable.

On 17 April, a British Airways plane was believed to have come close to a drone that had flown into its airspace. James Stamp, global head of aviation at KPMG commented on the recent near-miss at London’s Heathrow Airport:

“People who fly drones in controlled airspace are potentially putting lives in danger, and should be subject to the strongest possible sanctions available under the law. A number of practical steps should be taken, including requiring drones to be registered, tougher penalties for irresponsible behaviour, and technology based solutions that will prevent the drones entering restricted airspace in the first place.

“More research is also required into the potential impact of collisions because, while the impact of bird-strikes has been well researched, the impact of drone impacts is less well understood.”

On Valentine’s Day, a drone came within 20-150ft of an Airbus A320 flying at 12,500 feet near Biggin Hill in Kent. The incident was made all the more serious by the fact that drones are permitted by law to fly only under a height of 400 feet.

Incidents are only gathering in pace – to put things into perspective, there were nine near misses in 2014, but this increased to 40 last year.

Have you got an interest in IoT security, networks and drones? Want to connect with fellow procurement professionals in IT? Then head over to Procurious’ dedicated Group for IT Procurement.