Category: Digital Supply Chain

Digital Supply Chain and Digital Logistics – a chat with Till Dengel

The logistics aspect of supply chains is increasingly being digitised, and is now often referred to as Digital Logistics.

To find out more about this I invited Till Dengel to come on the show. Till is the Global Head of Digital Logistics Solution Management at SAP, so if anyone could fill me in on Digital Logistics, what it is, and where it is going it would be Till.

We had a great discussion and right at the end Till mentioned that his team had created a digital logistics compendium. This is a very comprehensive ebook with a lot of videos and interactive material for anyone interested in trends and customer stories in this field.

Below is a full transcript of our conversation:

TR: Hi everyone. Welcome to the digital supply chain podcast. My name is Tom Raftery and with me on the show today, I have our special guest Till. Till, would you like to introduce yourself?

TD: Yes. Good morning Tom. I’m very happy to be here. So Till Dengel is my name I globally cover our solution management for digital logistics, which includes our solutions for fulfillment, for warehousemanagement, for transportation, and the Logistics, Business Network.

TR: Okay, cool. Interesting. Just for anyone who isn’t completely aware with logistics, can you give us kind of a logistics 101. What, what is logistics? What does it do?

TD: Well, the logistics I think per definition is the know how goods move through a system and managing that system as goods flows through a supply chain and through different processes in a supply chain. And as we talk about the digitization of logistics processing, it’s basically how to automate and how to process things through warehousing, through a transportation, like scheduling, routing of logistics, or move in a supply chain and then eventually tracking those moves, with solutions for track and trace. But also with visibility tools to provide transparency as the goods move through the supply chain. So it’s really that end to end management and transparency that you’re trying to gain by using technology, as goods flow through a supply chain, or anetwork.

TR: Okay. And obviously the digitization of logistics has given huge advantages and is disrupting the markets;I imagine significantly for our customers. Can you give me some examples of the kinds of things that arechanging, and ways in which our customers are benefiting?

TD: Yeah, so for absolutely, I mean on one thing, technology has changed the game, but on the other side also the way we perceive logistics in our private life. And I think that has a very big impact also on the, on how companies deal with each other. I mean by now we are used to when we order something online that had arrives next day or sometime even same day, and there isn’t, are the same expectation of course, in a business to business environment. And in order to achieve that, you can only do this if you can automate your business processes to a very large extent. And these are the business processes that you have in the warehouse for picking, packing and shipping, but also the business processes around scheduling and routing a truck. So there has to be a lot of automation and that’s obviously, you know, what SAP, where we, where we come from of driving those business processes and trends.

But then there’s of course other technologies which are really changing the playing field in logistics. So one I think is very significant is around internet of things and sensor technology. Um, you can stick a sensor on almost anything today because the sensor technology is so cheap, um, that that you can just put it on some thing and you can track that item as it moves throughout the supply chain. Um, so that’s one big trend that’s changing the game here. Um, the other big one is the blockchain trend of course. It’s still a trend that I would say is I’m moving from its infancy, getting more and more mature. Almost every customer I talked to has at least a proof of concept in the blockchain environment. But that obviously speaks to the supply chain integrity and how goods move through supply chain, tracking on who touched the goods, where did they originate from and and what happens to the goods as they move throughout the supply chain. So that’s another technology that’s very big.

And then the last one I want to mention or the second to last is machine learning and data science. And obviously data science is not new to solutions like, transportation management with automated routing and scheduling. But with machine learning and the advent of machine learning and so many universities, working in this field, there’s just a lot more skills and a lot more knowledge around the topic and the market, which is really useful for the logistics industry, which has a lot of data from all these movements and can make use of that.

And then the last one I would like to mention is the cloud. And why is the cloud important? Well, because you have, different deployment models and you can much more quickly spin up and spin down for example, awarehouse. And we see those quite often with our customers. They are for example looking for that they run a campaign and they’re looking for a, they need a warehouse for six weeks, eight weeks as they ran a campaign in a city. So with the cloud you can spin up warehouse really quickly, run your warehouse processes to your pick pack ship and then spin it down again. So this was not possible many years ago and that’s, I think the big trends that are driving on the logistics industry.

TR: Okay. That’s interesting. That’s four huge trends that are happening and they’re obviously happening at kind of different paces as well. I mean you mentioned that uh, blockchain is very much in its infancy, whereas I imagine cloud is probably further along the line and machine learning is probably somewhere in the middle. How are we doing with, you know, the likes of a customer adoption? You mentioned some and blockchain are doing proofs of concepts, where are we with adoption rates in some of these technologies?

TD: Yeah, I would say the sense that technology and the IOT is probably most adopted just because there has been a lot of investment in those areas in the past few years. And it’s, I mean, building out interfaces and integrating these sensor technologies. Um, blockchain I mentioned, I think it’s, um, there are first few really good use cases. Um, customers are making the business case to invest broader and they are experimentingwith it, which I think is a really good sign that something is moving here. And obviously in blockchain what’s also interesting, it started with a few industries like for example, pharma, which obviously has that need for end to end visibility and enter and tracking of products and batches and everything. But it now moves across into other industries that is also a good sign. So, for example, we’ve talked to a lot of customers from the luxury goods industry, which of course also wants to know the whereabouts of these high value items as they move them through the supply chain and they want to know who touches with them. So thatsthe blockchain in terms of maturity.

Data science I think is a very mature in this industry. Like I said, machine learning is now coming to it, but working with algorithms and more sophisticated methods to determine scheduling  and routing and things like that, that’s been around for 10 years, maybe even more. So I think that’s probably the most mature I would say.

TR: Okay. And then, the adoption of these things depends on many factors. I mean, part of it is skilled resources availability, but part of it as well is potential for outcomes. If something is only going to give me a 1% increase or a 10% increase, does this big difference between the two. In in terms of outcomes, where do you see the the best potential for people with digital logistics?

TD: It’s an interesting point. You mentioned as obviously outcomes is always the end of every business case that, that our customers are driving when adopting those technologies. So when we talk about this data science part and a machine learning part, the outcome of that of course is increased efficiency and increased automation. And if you look at logistics, I mean logistics is reoccurring patterns. There’s only, you know, a certain amount of possibilities and variations that you can move a container through a network, let’s say from Asia to Rotterdam, for example, there’s only a certain amount of vessels, only a certain amount of routes you can take, and a main leg and, and some sequence they can pre leg and things like that. So there’s only a certain amount of variation. So why shouldn’t a system  automatically plan this and support the dispatcher sothe dispatcher doesn’t have to do this manually. So it’s clearly the outcome here is using these technologies like the data science part of it to automatically drive this and by that increase efficiency.

The other outcome of course in the same area is in the warehouse management space. I mean many warehouses these days run completely in the dark. Nobody, humans only touch in a very few touch points the product, but there’s a lot of automation already in the warehouse since many, many years. I mean, that of course speaks very much to the outcome and efficiencies and that’s where our customers make the case that they say, I want to come from a manual warehouse into more of an automated warehouse using software and using for example, packaging algorithms and algorithms that run, pick wave and things like that and thereby increase efficiency on automation. So that’s the efficiency side of the outcome.

What’s also very interesting and that’s a change that you’ve seen lately, is that if you look at more of the top line and the revenue portion of it and the customer centricity part of it, many customers we talk to these days look at logistics as a differentiator. In the past that was looked a lot like it’s a cost driver and we need to, you know, drive cost out of the system. Now it’s looked at more and more like if my logistics experience or if my delivery experience is not good, if my parts, my container arrived late, the experience reflects on the product. So the more I invest in product experience, customers tend to also invest in that delivery experience part of it, which is another outcome, but which is obviously not on the cost side and the bottom line, but rather more on the top line.

TR: All right. Very good. Very good. So lots to think on there. Where, where is all this going? You know, we’re seeing trends towards digitization, but you know, where is all this going to go in the next five to 10 years do you think?

TD: Well, there’s obviously a lot of movement in automation in terms of drone technology and self driving vehicles and things like that. I mean, all of that is obviously in the beginning, but I think in the next few years we see a lot of that becoming more and more mainstream. Obviously not everywhere in the world but incertain parts for example. We get already today, um, we connect to, for example robots and, and different parts in the warehouse so robotic technology in the warehouse is becoming mainstream as we speak. And I think this will expand into the yards and it’s been expand more and more onto the roads or maybe on, you know, some closed roads or from specific lanes where you see automatic driving and, and things like that. So, I think that’s one big trend that’s happening.

And then the other big thing is the rise of the networks, which we haven’t talked much about. So logisticsnetworks basically, meaning that you can manage a business process with your stakeholders, with your partners, or a shipper can manage that with the 3PLs and the carriers. They can all get together online in one single system in the cloud and manage a business process end to end. So that obviously contributes a lot to the business process execution capabilities and the efficiencies of that end to end processing, but also to the transparency that you can provide as if everybody that participates in that supply chain is on one single system. So I think here we will see a lot of that.

And if you look into where investment money is going these days on VC capital is going is exactly in that area of business networks across the different modes and across the different regions of the world.

TR: Interesting. Great. One final question Till. This is a question I often ask people at the end of the show, just in case I’ve missed something. Is there any question that I haven’t asked that you think I should have?

TD: Usually that is the question is, you know, around we talked a lot about automation and efficiency and those things. So usually there is always the question of what does that mean in terms of will there people be in the, I mean the logistics is a huge industry. Will the people be put out of jobs and things like that. And I think the interesting part around that is, I think, you know, the manual labor parts in the warehouse and transportation and things like that and I think they will definitely be challenged in my perspective because there is a robot, there’s more and more automation coming in, similar to what we’ve been seeing in the manufacturing industry a few years back. But on the other side there is a lot of skills and a lot of new employment opportunities around the topic of data science, machine learning, and digitizing these end to end supply chains,which is obviously a different kind of job. But here we definitely, and that’s what we hear from our industry councils and from customers we speak. There’s still a huge skill gap. And for example here in central Europe, it was identified that skilled people, in the logistics industry that know the process, that knowthe industry and that know technology, a huge gap and actually imposing a risk on the digitization of global supply chains.

TR: Interesting. Right, so if people want to know more Till, about Till or about digital logistics, our supply chains or any of the topics we’ve discussed today, where would you have them go? What, what kind of links would you like me to put in the show notes?

TD: So you’ll find myself on LinkedIn. I’d be very happy. There’s a lively community going on. Very happy to connect to anyone that wants to be connected and talk more about the logistics industry, which I’m very passionate about. That’s LinkedIn. Otherwise, sap.com of course there is a, a very large area around logistics and supply chain. And the last topic Tom I’ll provides you with a link to what we have created which is ourdigital logistics compendium, which is a very comprehensive ebook with a lot of videos and interactive material for anyone that’s interested in what’s going on in terms of trends and what are customers doing, obviously using our software in this field.

TR: Oh very good superb. That’ll be very useful, I’m sure for lots of people. I’ll definitely put a link to that in the show notes. Thanks a million for that.

Till that’s been great. That’s been really interesting. I’ve learned a lot. I hope all our listeners have as well. Thanks a million for coming on the show today.

TD: Thank you so much.

If you want to know more about any of SAP’s Digital Supply Chain solutions, head on over to www.sap.com/digitalsupplychain and if you liked this show, please don’t forget to rate and/or review it. It makes a big difference to help new people discover it. Thanks.

This podcast was initially published on the DigitalSupplyChainPodcast.com website

The advantages of Digital Supply Chains – a podcast with Johannes Drooghaag (aka @DRJDrooghaag)

I started a podcast series called The Digital Supply Chain podcast over on DigitalSupplyChainPodcast.com (because I have no imagination and that can’t hurt the search engine rankings!).

For the most recent episode I used Lately‘s transcription service to output the text of the podcast so I could add it into the post but Buzzsprout, my podcast host doesn’t allow posts with a lot of text, so I decided to post the podcast, and the full text of the conversation here. I hope you like it – do let me know in the comments how I could make it better.

This is episode 17 of the Digital Supply Chain podcast. In this episode I interviewed Dr Johannes Drooghaag (also known simply as JD, and @DRJDrooghaag on Twitter).

We had a wide-ranging conversation on Digital Supply Chains covering many aspects including Manufacturing, Industry 4.0, and cybersecurity.

Check out the podcast above, and the transcript below:

TR: Good morning, good afternoon or good evening, wherever you are in the world. This is the digital supply chain podcast and I am your host Tom Raftery.

TR: Hey everyone. Welcome to the digital supply chain podcast. My name is Tom Raftery with SAP and my special guest on the show today is JD. JD would you like to introduce yourself?

JD: Well, thank you Tom. First, first of all, thank you for having me on your, on your podcast. I’m really appreciate this opportunity. Um, my name is Johannes Drooghaag but it’s shortened to JD because that’s much easier and it doesn’t hurt so much to pronounce. Um, I started my career in industrial automation, the classical way, putting a lot of robots and a lot of sensors and a lot of PLCs in a factory. And through time I learned that there are other options and that we can do a lot more with the, with the data we are collecting and turn it into information or what I prefer actionable information. After some 25 years career in corporate roles, I decided to start my own consulting company and I’m focusing on those two fields on the, on the one hand and the organizational side, do human being that is working with the information. And on the other side, the technology that is creating the data out of which we can create that actionable information. I’m 30 years on the, on um, on the road now and I keep learning every day. And that’s one of the reasons why I’m with you today, Tom, to keep learning from you as well.

TR: Oh dear. No, no pressure on me. So no. Okay. So I, I typically start the show asking the guests on the show to give me their personal definition of what a digital supply chain is. Because you know, everyone has a kind of a slightly different approach to it. It’s a broad topic. So how do you define digital supply chain JD?

JD: Well, for me, the digital supply chain is basically the digital twin, so to speak, of the classical supply chain, which as we all know it with, with all the parts moving and the orders. And the digital supply chain is, is the digital twin in which we can do two things. We can constantly respond to what is happening because we need to respond much faster than we used to do in the past. In the past we had mass production, we had large batches, we had orders which were sent out months before we start producing. Nowadays we have to, we have much more dynamics. Orders are changed, we have smaller volumes, we have smaller production batches. We even want to avoid production batches. We want to create, um, single piece flows in our factories. And the second thing we can do is we can start simulating in our digital supply chain. We can do real what scenarios without actually having to touch the process. So we can start looking for opportunities and for optimization, uh, items. We can also look back to the past and see what failed, what didn’t do, what we were expecting that it would be doing and how can we prevent it and what can we learn from that. And that for me is the digital supply chain. The information that we on the one hand get from the existing supply chains, which are much more complicated than they were in the past. And on the other end, the learnings, the organizational handling of that digital supply chain.

TR: Excellent. Excellent. Very good. Very good. You, um, you started off saying that there were kind of two aspects to, uh, your, looking at digital supply chain. One was the human side and the other was the actionable items. Uh, you know, I’ve, I’ve often said that, in these kind of scenarios that the technology is generally very straightforward. It’s getting people to change because the hard part is, is that, is that your, inkling as well that, you know, technology is generally straightforward. People are hard?

JD: Well, we can make the technology as complicated as we want, but that doesn’t lead to anything, right? So if we put, if we start with a straightforward concept and then make sure that the people who we expect to work with it also actually understand what we are expecting from them, which, which kind of responses we want, then we see that there is a, um, an enormous gap because most people are already pretty much loaded with their actual work. Um, and, and we need them to first of all have the mindset then what that when the system is telling them something, they should take it serious. And now on the other hand, they need to understand what the difference is between some kind of general status update and an urgent item that they actually need to respond to. Now having three decades of experience, I have learned a couple of things. First of all, people do not really trust the system because there’s always something which is not right. If we take a closer look, that means we can learn and we can say, okay, we found something in the system, which is not correct. Let’s improve it. Yeah. But the human behavior is to use that as an excuse almost to also ignore all the other things that they see in the system. And the second thing that I’ve learned is when you’re busy going from A to B and somebody is telling you there’s a smarter way you could go through C and then to B, okay. You were focused on going to B, so you’re not paying attention to that additional information. And that’s an enormous challenge on top of the normal change management and organizational challenges we already have.

TR: Yeah,indeed. And how do you overcome that?

JD: Well, the first thing that I always do with my clients is start with the people and look at what their routines are and look at what kind of information they would need instead of the information that they have. Because what I see in my experience is that most service providers make the mistake of just sending more information to the already available information. And production manager or a scheduler or a planner doesn’t need a new report on top of all the reports they need to report or an information overview that tells them what to do and where they should respond to. So I start by filtering. I start by asking them, if you have 20 reports and I take 10 away, which one would that be? Yeah. And the interesting thing is that in most of the time when I ask for 10, they give me 18 because they’re going to use me.

TR: Yeah. There’s a professor of journalism New York whose name is Clay Shirky and he’s got this great quote that I love. He says, there’s no such thing as information overload. There’s only filter failure.

JD: Exactly. I love that.Yeah, yeah, yeah, yeah. No, that’s great. That’s great.

TR: You, you talked as well, uh, not just about the, the people aspect, but of the actionable items. What do you mean by that?

JD: Well, an actionable item. I always take the example of the, of the scada world where I’ve, I’ve spent five years, um, all over the world. If you look at the scada system, you will always have a state to screen where where the operator can see entire refinery or the entire pipeline or any other utilization of that scada. But as soon as the operator is expected to take action, that is automatically put in focus. So at the moment that the operator is expected to take action, the operator sees that action item and that can be a small decision. That can be a big decision, but the system automatically, um, focuses the attention of that operator on that particular item where an action is needed. Okay. Providers of SCADA systems have learned over over the years and they have learned that if you keep that action item in the entire status screen of the refinery, operator won’t notice it because it’s just one little thing in sometimes they have up to a thousand different aggregated devices in the overview and an actionable, actionable item. And an actionable, actionable piece of information means that first of all, the person who shoots take action is informed in the proper way without any kind of distractions. And secondly, the person has a couple of options or has supporting information to make that decision. Now, if I then compare it to what I see, especially in production facilities, that there’s an operator is overloaded with a lot of status written information, which that person should not respond to. And hidden in that stream is that one item where the person should respond to, well then I cannot blame him for not seeing it or ignoring it or pressing the standard button. So the, the popup goes away. Actionable information means to me, I see it when I need it. I get the information I need to take a decision or that actionable information informs me that something is not the way we wanted it to be and I need to do some, some optimizing or it means I need to get some additional resources.

TR: Right. A lot of that sounds like it’s, um, it’s design led issues potentially are maybe not maybe issues with the wrong word, but uh, properly designed screens and user interfaces should do away with a lot of these issues.

JD: Exactly. And then it’s also a system thing because if you look at a supply chain, then it’s not just a screen on a, on a machine. It is a whole stream of information. And if I have somewhere in my supply chain, the change, which was not part of the current, um, planned activities, I cannot wait until that arrives at my facility. I need to respond to that with the appropriate lead time. And if that means a change over in the production planning and that means that I need to schedule some additional machine change over, I need to know that in the proper appropriate time. So we also need to add some intelligence to it. We need to add, um, which timeframes we need. We need to add which kind of materials we need. And if we start figuring that out at the moment that it has already happened, well we are too late, especially when our supply chain is a bit more complicated then the local grocery shop.

TR: Okay. And so you, we have some customers with some very, very complex supply chains. So yeah, like tying all those disparate pieces of data together can prove challenging.

JD: Exactly. I always use this, this lovely example from my own automotive experience. If we look at at the classical, at a car, we have up to 40,000 components. If we look at an electrical vehicle, your favorite topic, we still have about 10,000 components for just one car. Yeah. Now if make one change, just one change, we might have to reschedule, um, a couple of, of those components in the assembly. Now the further we go down the line in that supply chain and we make that significant change, well the more others will have to respond to that. So supply chains are complicated and supply chains are no longer, um, single or dual parties. The same car with, with 40,000 components has up to 1,500 suppliers of those components. And that needs to be managed and it needs to be managed very actively.

TR: Yeah. Yeah. If I needed them or delayed and getting parts to you. Maybe there’s a Coronavirus outbreak and they can’t get their workers to their factories and they have to hold production. It throws everything out.

We are managing the past. With a digital supply chain we are capable of learning how to manage the future

JD: Exactly and if you do that in a in a smart way, and this is what I really enjoy about the digital supply chain because the Corona virus is an example. We have a crisis that might impact our supply chain. Now if we have a properly built and properly designed digital edition of our actual supply chain, that’s the moment where we are capable to say, okay, what happens if we, for example, slow down this line of supply and what does that mean for the other parts? Can we make changes in the capacity or can we increase some full human from another supplier and decrease some folio with this supplier and navigate around that crisis and that crisis never establishes the way we thought. So we can then the next day updated again and we can really start looking forward instead of what most people in the supply chain business always tell me. We are managing the past. With a digital supply chain we are capable of learning how to manage the future.

TR: It’s a, it’s an amazing change isn’t it? In in going from older, more analog technologies where as you write these, say people ran a lays in the past to the digital where we’re analytes in the future. It’s, it’s, it’s, um, I don’t know how to, how to phrase that exactly, but it, it’s, it’s, it’s a huge, huge change in the way people are now able to do business.

JD: It’s, it’s an amazing change and it’s, there’s the simple, in English, we have a wonderful, in German it’s, it’s, it’s almost as wonderful in English we can say, it makes the difference between reacting and acting in the classical analog supply chain management, UI reacting. You’re always reacting to things that have already happened in a digital supply tent. You can act based on the things that you know that will happen because that’s the information you receive. And that’s how you can build your scenarios.

TR: Yeah, that’s it. Exactly. Um, JD. Looking forward the next five, 10 years, where do you see the, the, the biggest, we’ll say potential for change. Um, where do you see the biggest changes that are going to happen? How will they impact?

JD: Well, the biggest changes that I will see, there’s one thing that we are not yet aware of the up to 80% of the production facilities we currently have are built in the previous century classical, uh, built for big batch batches built to, to produce a lot of the same. And companies are starting to learn that you can still use those industry 4.0 and the IOT and the smart supply chain solutions. You just have to be a bit more creative about how to implement them for those, those classical old things. So one of the things that I am already seeing and it’s developing, fortunately that companies are moving forward with their infrastructure, which is in some cases they still plan to use it for the next 20 years. So people stop. I’m believing that all those, all those, those technologies are only available when they build something new or Greenfield facility or to purchase a new machinery. We see that rolling out into the existing infrastructure and that I believe is a wonderful change.

TR: Yeah, yeah, yeah. We, we had an example, I mean, we have, you know, a bunch of examples with different customers, but there was one that, uh, really kind of blew my mind and it was with Harley Davidson. It used to take them 21 days to create a custom motorbike and when they shifted over to digital manufacturing, they brought the time of manufacture from 21 days down to six hours. Just incredible.

JD: That’s incredible. But, but that’s possible.Yeah. Yeah. it’s going back to what you were mentioning, uh, going from facilities which are built to just build lots of, one type of thing. And then when you try and do custom, in this case, motorbikes, it takes a lot more work and takes 21 days. When you switch to a facility which is built to be completely customizable and your lines could be completely fluid, uh, then you can do mass customization and then kind of lot sizes of one and you can drop the time to manufacturer again, in this case of bikes down to as six hours for a custom Harley.

TR: It’s, it’s, it’s really impressive.

…that’s also what industry 4.0 is about. And that is what, what a smart supply chain is about. It’s not just about more data and more technology, it’s especially about becoming more flexible so you can respond to what happens on the market

JD: That’s, that’s, that is really impressive. But it also demonstrates what is possible if you move away from the classical, from the classical patterns. In some cases, that will mean that you actually need to invest in your existing machinery in some cases will mean that you, uh, that you must must reduce some capacity for the mass production, which you don’t need any way, uh, anymore. And in some cases it means that you actually discover that your equipment is doing, is capable of doing much more than you thought it could. You just have to sit down and, and with, with concepts like design thinking, most of it is logical thinking. You need to be able to investigate, to explore, um, to do some, some testing and discover how flexible you can become. Because that’s also what industry 4.0 is about. And that is what, what a smart supply chain is about. It’s not just about more data and more technology, it’s especially about becoming more flexible so you can respond to what happens on the market. Right?

TR: Yeah, that’s true. That’s true. And in the case of Harley, it wasn’t that they did it in the same facility, so they kind of, I won’t say they cheated, but it took a kind of a hybrid approach. Uh, they built a second facility beside their existing facility and then they transferred all of their staff and all their machinery into the new facility. But it was two thirds the size of their existing facility. And yet, and yet, because it was completely digitized, they were able to then, as I say, bring the, the lot times down from days to hours.

JD: Yeah. But, but this is, this will happen in, in many cases and sometimes you have the luxury to say, okay, I’ve got a second production facility and I can basically redesign my existing process with a single piece flow concept in mind instead of batches and long production. In other cases you will have to do that. And we did it at one major automotive supplier, which unfortunately I cannot mention by name. We did it. We did the same thing we did in the existing facility. We started with machine number one and, and eliminated all the batch containers and, and uh, the batch flow, um, and created a single piece flow structure around that and then took it to the next level. And it was very fortunate that we have a very good tie in of the ERP system from, from SAP at that moment. So we could get all the production data, we could get, um, all the, all the settings, uh, the proper product identifications from the system. And we were capable of building a single piece flow throughout the production facility. It took two years because we had to do it step by step and we could not, um, go from, from, um, from the old school to the new school, uh, by just closing down the factory. But one of the results is, is that we decreased the capital on hand to time, which was around 18 days. Um, we’ve decreased that to two days. So from purchasing the material to shipping it to the next facility was reduced by, by more than 80%. That is serious money.

TR: That’s a lot, yeah. That’s impressive. That’s really impressive. Yeah. That’s amazing. Okay. Look JD. We’re coming towards the end of the podcast and uh, typically at this time of the podcast I’ll ask people, uh, is there any question that I haven’t asked you that you wish I had?

JD: Um, one question Tom, and that’s my favorite second topic. Cybersecurity. Um, so if you ask me, um, JD, what would be your top priority in digital supply chain? Besides all the technical opportunities we have and the organizational opportunities we have? I would say cybersecurity has to be the top priority because the more digitized we get, the more risk we have that something bad happens to the digitized world. So cybersecurity, big picture approach, make sure that it is by design and not by coincidence.

TR: Very good, very good. Very good. Yeah, no, hugely important. As we are, uh, opening up our manufacturing facilities and our logistics and everything as we’re opening them up to the internet, we are massively increasing the threat landscape. So yeah, absolutely. Very, very important to consider cybersecurity from, as you say, from the design phase, right through not, you can’t be something that you kind of cobble on afterwards dead right?

TR: So JD, if people want to know more about yourself, what’s the best place they can go to find information about JD?

JD: Well, they can visit me always on my LinkedIn profile or on my website under your JohannesDrooghaag. My website is JohannesDrooghaag.com. Unfortunately, jd.com was already taken, so I kind of,okay. Um, I am on Twitter. I am on, on Facebook, Instagram. Twitter is my main social media exposure. They can find me there under JohannesDrooghaag as well. Um, and otherwise, uh, drop me a note at my website and I will, uh, reply as soon as possible.

TR: Superp, super JD. I will put those links in the description of podcast when I publish it so everyone can have access to them. Thanks a million for taking time and joining me on the show today.

JD: Well, thank you for having me, Tom. It was a great discussion.

TR: Okay, we’ve come to the end to show thanks everyone for listening. If you’d like to know more about digital supply chains, head on over to sap.com/digitalsupplychain, or simply drop me an email to Tom dot raftery@sap.com.

And if you liked this show, please don’t forget to rate and/or review it. It makes a big difference to help new people discover it. Thanks.

This episode was originally published on the Digital Supply Chain podcast.