DIGITIZATION OF GLOBAL SUPPLY CHAINS

Live streamed from Huawei’s OpenLab in Munich, the 2nd installation of our CAR.Digital series Corona Situation Room took a step further from the industry’s reaction to the crisis to proactively looking into how the digitization of global supply chains is being catalyzed by Corona and becoming more crucial to future success.

Prof. Dr. Ferdinand Dudenhöffer

Prof. Ferdinand Dudenhöffer, Director CAR Center Automotive Research, opened by addressing that risk management in supply chain against the backdrop of global sourcing has never been more challenged than the pandemic of Corona virus.

It’s clear that Artificial intelligence and Blockchain technology are essential to an efficient and secure purchasing strategy safe from risks factors like Corona.

Dr. Cesim Demir

“From reacting mode to acting mode”, this is the power of data utilized through the AI capabilities of Huawei, as Dr. Cesim Demir, CTO Manufacturer Solutions of Huawei explained. This is how Huawei is helping their clients make better decisions in time.

The big data across the supply chain once beyond human grasp are now usable information increasing 33% operation efficiency in certain parts, up to 50% cost reduction in areas like warehousing for Huawei’s clients.

Dirk Wollschläger

Dirk Wollschläger, General Manager Global Automotive from IBM gave some more examples of how their technologies have been providing precise traceability and increased visibility. Now they are tackling the challenge of the ever-changing regulatory requirements of different countries by incorporating Blockchain network to improve compliance.

Wollschläger shared further about how IBM is benefiting from their AI tools like Cognitive Advisers that gave advance alerts identifying suppliers that would be affected when the virus first broke out in Wuhan.

“Situation like Corona has proven AI to be crucial to the robustness and resiliency of the supply chain.”, he added.

Prof. Dr. Ferdinand Dudenhöffer

“What we also need is balanced industrialization across the globe for a balanced international trade.” Prof. Dudenhöffer suggested, and that 5G will play an important part in building the digital infrastructure to achieve that balance.

Dr. Cesim Demir

“I would like to add two more letters to Artificial Intelligence Logistics (AIL). ACAIL stands for All Connected Artificial Intelligence Logistics. An example: The transport of components can be significantly reduced by 3D printing technologies in the future. It is not components that are sent from A to B, but data so that these components can be produced on site.”, Dr. Demir said.

Prof. Dr. Ferdinand Dudenhöffer

“We will see an intelligent and smart supply chain. The data will be transmitted in real-time using 5G standard and solutions will be developed simultaneously as well as implemented in real-time.”, Prof. Dudenhöffer added.

Guanqi Hao

Looking into the future, Guanqi Hao, Chief Representative Office Germany, CATARC, said “There will be a global supply chain that will change the world and our lives through digitalization. We need to be prepared for that, and that may happen faster than we can imagine.”

Dirk Wollschläger

“By 2025 almost 100% of Supply Chain workflows will be either automated or augmented by artificial intelligence.”,  Dirk Wollschläger predicted.

Dr. Hans-Peter Kleebinder

Our moderator Dr. Hans-Peter Kleebinder from the University of St. Gallen concluded that “Digitization will be the main driver combined with artificial intelligence and blockchain technology as well as 3-D printing technology.”

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