Internet-Edge (I-e) Supply Chain Management Elliot Rabinovich John G. and Barbara A. Bebbling Professor of Business Elliot.Rabinovich@asu.edu Dale Rogers Professor Dale.Rogers@asu.edu Supply Chain Management Department W. P. Carey School of Business Arizona State University 2015

Traditional View of Supply Chains Linear flow of information between organizations Retailer Supplier Information Information is monolithic Quality/accuracy of information is not considered Information perishability is not considered

What is the Internet Edge (I-e)? Boundary shared by Internet and physical systems, where users can interact directly with the Internet to send and receive data It includes: Desktop (e.g., desktop computers and Linux boxes) Mobile (e.g., portable computers, tablets, and phones) With the accelerating rate at which Internet systems are advancing, objects like digital cameras, thermostats, industrial refrigerators, containers, pallets, are all becoming connected to the Internet as end systems

Supply Chains at the I-e: Stage 1 Fixed Internet Access Technology Linear and non-linear flows of information across organizations and the consumer Individual End Consumer Retailer Supplier Information Information Information Information

SCM Implications from Stage 1 Greater consumer access to products Greater variety Anywhere/anytime shopping Greater consumer knowledge about products Product prices Product substitutes Product quality Product availability Greater consumer influence on information obsolescence Dynamic pricing Dynamic product availability Greater consumer say in decision making in the supply chain Right time, Right quantity, Right location, Right quality, Right price

Supply Chains at the I-e: Stage 2 Mobile Internet Access Technology Dispersed information flow across consumers, retailers, suppliers, and individual sellers and their locations Many End Consumers and Locations Many Individual Sellers and Locations Many Retailers and Locations Many Suppliers and Locations Information Information Information Information Information Information

SCM Implications from Stage 2 More effective usage of assets and resources owned by organizations and individual sellers Inventory Stores Distribution centers Transportation equipment – point to point distribution Faster consumer access to products Same day delivery In-store pick up Greater access to individual consumer and seller knowledge for decision making Peer to peer influence in buying decisions among consumers Product and service design through crowdsourcing among sellers and consumers Greater risk of quality deterioration of information

Supply Chains at the I-e: Stage 3 Internet of Things Technology Dispersed information flow across peripheral assets and resources in different locations Assets (Inventory, DCs, Trailers) Many End Consumers and Locations Many Individual Sellers and Locations Many Retailer s and Locations Many Suppliers and Locations Public Resources and Infrastructure (Roads, Railways, Ports)

How Could IoT Improve Transportation and Distribution Operations? Fragmented and uncoordinated use of assets within single transportation modes due to limited access to real time conditions in infrastructure and in destinations Asynchronous multimodal transportation caused by poor visibility of cargo conditions during long hauls and lack of standardization across carriers Inefficient use of distribution centers due to seasonality and uncertainty in demand and supplier/inbound logistics performance Suboptimal delivery routes for shippers due to carriers’ reliance on static contract rates in industry segments such as motor carriers’ TL transportation

SCM Implications from Stage 3 Greater effectiveness (timeliness, value) in the implementation of utilization actions involving assets and resources Distribution Centers Transportation equipment Greater effectiveness in the implementation of adaptive actions based on unexpected environmental changes Infrastructure (road, rail conditions) Weather conditions Demand and supply uncertainty Greater effectiveness in the implementation of preventive actions Maintenance Product quality control

I-e SCM: The Road Ahead

Our Vision Become the leaders in knowledge creation regarding SCM at the edge shared by Internet and physical systems

Our Mission To create rigorous academic and user inspired research that articulates generalizable knowledge and advances the understanding of technology innovations, challenges, and opportunities involving SCM at the boundary shared by cyber and physical systems

Our Goals Develop collaborative programs between companies, faculty, and students to address research issues of relevance to industry and academia through the application of rigorous methodologies Disseminate insights through a variety of means, including research workshops, annual sponsor conferences, lunch seminars, site visits, white papers, and journal publications

Thank you! Internet-Edge (I-e) Supply Chain Management Elliot Rabinovich John G. and Barbara A. Bebbling Professor of Business Elliot.Rabinovich@asu.edu Dale Rogers Professor Dale.Rogers@asu.edu Supply Chain Management Department W. P. Carey School of Business Arizona State University