some conceptual views on iot in the supply chain

ECSCIA, European Centre of Supply Chain Information Architecture

Some conceptual views on IOT in supply chain


In its simplest form,

“IOT” allows for richer sensing. Machines will be sending and receiving

more data from

more sensors more frequently.

(At lower cost and lower complexity)


All that that sensing and the “big” data it generates

is just one side of the change.The other side is increased delegation to objects,

direct local interaction & decisions between objects

“autonomy”


“IOT” allows for local initiation and local coordination of actions.

Objects can exchange data and decide upon suitable actions based on rules as they meet and

handshake.

Objects will be able to “Seize the day”.


Reaping the benefit of local handshakes between objects will require

changes to business models as (some) actions will

no longer be pre planned or centrally governed.

sense

Report

Recommend


Act

HandshakeAnalyze

The tasks are the same, but….


There is a huge difference between IOT in (”traditional”)

centralized business models and

the opportunity of IOT in

localized business models

ECSCIA, European Centre of Supply Chain Information ArchitectureECSCIA, European Centre of Supply Chain

Information Architecture

Central without IOT

Current local reality

Central assumed

view of reality

Central view on future

Central decision

Central action

local action


Traditional business models are based on

Long term, central contracts / agreements

and central plans being pushed downon ”local”. ”Local” is standby for execution.

The whole setup is based on a paradigm where execution occurs under/as a result of quite

detailed central supervision.



Central + IOT (IOT only sensing)


Centralsensed

view of reality


Central decision

Central action

local action


When traditional business models first envision usage and potentially adopt IOT, the

IOT capability is positioned as a tool

to empower the old central model by bringing in and analyzing

more data centrally

and then communicate top down directives to execution which is still a standby function



Local + IOT (IOT ”smart”, autonomous mechanism)


Local view on future

Rules and guidelines


Central monitoring

local action

Sensed state

Local decision


IOT can be an enabler for less central directives.

The role of ”local” can be transformed from being standby, only acting on/within detailed directives into a model where ”local” actively looks for opportunity/need

and acts upon/within a set of rules

Central will still listen to and anlyze sensed ”big data” but not to refine long term and detailed contracts/plans.

Central will instead use sensed information to formulate rules that local execution can act within


Local decision making, directly between objects allows for

more efficient resource usage

Make more money while lessening the load on the planet.


To utlize the potential, business relations can no longer

be predefined point to point on detailed level.

IOT empowered objects require room to capture opportunity


Autonomous?


The “old”, prevailing model does not allow the two object to resolve the situation between them. The model relies on escalation to central.

I have empty shelves

I will plan and order

I will approve replenishment

I will execute


HelloI am a display stand. I have

empty shelves

HelloI am a distribution object. I

can replenish shelves. May I? Should I?

New business models…. Frameworks that allow objects to resolve situations between themselves locally under rules, without traditional

escalation and communication chains. Bypass traditional business silos & hierarchies, act off what is know locally within the constantly updated framework

IOT supports maintenance of.

Resolve


HelloI am a container. I have a destination

HelloI am a ship. I can move containers. I

got room/ability to transport an (additional) container

May I/ Should I?

Local, unplanned agreements directly between objects bypasses the traditional separation and escalation required in traditional business models.

Example : Focus will be on overall logistics efficiency (full ship/optimization of the lane) rather than individual contracted forwarder/shipping company. Focus is on the transport

lane, not the individual operator in that lane. Reaping that efficiency is in conflict with existing business models where operators rather let a container wait for the next “own”

ship

Resolve


Forecast and optimization will still be important, even more so…

but it will change from the traditional,

aggregate/disaggregate top down modeland accelerate in frequency.


Go beyond sensors reporting data. Go beyond central analytics. Start thinking “Smart things talking and acting”

Think “Any thing talking to any thing”

Enable objects “to meet”

Enable objects to “Get to know each other”

Enable objects “to do together”


Objects are very many and different

Objects need to describe themselves and have some mandate

Theoretically, the “central” supplier and “central ”customer can handshake and share the exact layout of objects in the ecosystem, the exact specs and capabilities of eachobject.….In reality, such an approach is doomed to break down as the objects are constantly changing from the bottom up.

Keeping “central” in sync with the actual local state within cost, skillset and tempo is a challenge. Local objects will need to sync locally


IOT ChoreographyIOT APIs

IOT Messages

I am something

I can do things

I have states

I am somewhere

I have a layout

I can share

I listen I act

Automate

I am


HelloI am thing 1011-

2233-9988

“I am” An IOT enabled thing needs to identify itself

HelloI am thing 7711-

2663-1112


I am cooler (fridge)

“I am something” An IOT enabled thing needs to describe itself on high level

I am cargo ship


I offer (my menu)

“I am something” An IOT enabled thing needs to describe itself on detailed level (layout, features, restrictions, compliance…)

Four shelvesShelf 1 is X Y Z large

Shelf 2 is…..

Max weight is….

I can generate temperatures

between….

I offer (my menu)

Three loading baysX square meters of deck loading space

Bay 1 can hold (Volume, weight X Y

Z)….I can hold containers

I can generate temperatures

between….I am approved for

these types of goods according to these

standards

Max sped 12 knotsDepth (full load) 3 m


I can do (my catalogue)

“I can do things” An IOT enabled thing needs to describe its ability to act, the services it support

I can storeI can open (be

opened)I

I can refrigerate

I can moveI can be loaded by

craneI can be loaded by

roll onI can dock (without

assistance)

I can do (my catalogue)


I can share

“I can share ” An IOT enabled thing needs to describe what information it can share

My position

My inner temperature

My content

My engine energy consumption

My energy consumption

External temperature

Door status

These statistics over this period…

I can share my load

I can share my open space (for additional

load)

My requirements on quay/dock

My engine state

My position

My direction

My speed

I can share


I currently

“I have states” An IOT enabled thing needs to describe what states it is in

I am vibrating at frequency…

My inner temperature is…

My engine temperature is…

My energy consumption is…

External temperature is…

Shelf 1 is 44 % freeShelf 1 holds these

items

Loading bay 1 is holding 300 tons

Tank 2 is holding 22000 liters

I am heading compass bearing….

I currently

some conceptual views on iot in the supply chain

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