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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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)

9. 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

10. 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

11. I-e SCM: The Road Ahead

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

13. 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

14. 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

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