© Copyright 2013 Hewlett-Packard Development Company, L.P. 1
The Transformation of Manufacturing and Supply Chain by Industrial 3D Printing and 'The Digital Thread'
SAP Leonardo LiveJuly 12th, 2017
© Copyright 2013 Hewlett-Packard Development Company, L.P. 3
$ 6 1 B R e v e n u e
1 0 8 , 0 0 0 Ve h i c l e s
~ 2 1 0 0 D a i l y F l i g h t s
1 9 . 1 M D a i l y D e l i v e r i e s
4 5 0 , 0 0 0 e m p l o y e e s s e r v e o v e r 2 2 0 c o u n t r i e s / t e r r i t o r i e s a n d e v e r y a d d r e s s i n t h e U . S . a n d
E u r o p e
© Copyright 2013 Hewlett-Packard Development Company, L.P. 4
D i s r u p t i o n w i l l c h a l l e n g e e v e r y c o m p a n y
F r o m t i m e t o t i m e …
UPS IS NO EXCEPTION
© Copyright 2013 Hewlett-Packard Development Company, L.P. 5
We’re accelerating into a future shaped less by countries than by connectivity. Mankind has a new maxim – Connectivity is destiny – and the
most connected powers, and people, will win. – Parag Khanna
Essentially…UPS is a connectivity company...and the way the sellers and buyers connect continues to change.
© Copyright 2013 Hewlett-Packard Development Company, L.P. 6
6
On Demand
Manufacturing
On Demand
Supply Chain
On Demand
Products
Instant access to
production capacity
Prototypes & Volume
Production
Virtual Warehouse
Legacy Part
Re-engineering
Three Key On Demand Manufacturing Use Cases Have Emerged
New, on-demand and
custom products and
business models
© Copyright 2013 Hewlett-Packard Development Company, L.P. 7
The Vision: Global On-Demand Manufacturing Capabilities
© Copyright 2013 Hewlett-Packard Development Company, L.P. 8
COMBINING THE OLD WITH THE NEW TO
UNLOCK VALUE
The optimized logistics network better matches supply with demand, reducing waste and producing products closer to the point of consumption
© Copyright 2013 Hewlett-Packard Development Company, L.P. 9
A c c e l e r a t i n g t h e N e x t I n d u s t r i a l R e v o l u t i o n
W o r l d E c o n o m i c F o r u m – D a v o s 2 0 1 7
© Copyright 2013 Hewlett-Packard Development Company, L.P. 11
From the beginning … our vision was to create technology that makes life
better for everyone … everywhere!
To engineer experiences that amaze.
© Copyright 2013 Hewlett-Packard Development Company, L.P. 12
Foresight: Speed of technology, localized production and fulfillment systems are creating ‘while you wait’ manufacturing expectations by brands & consumers.
As mass production is being replaced with “lot size 1”,
supply chains with long order fulfillment processes are
replaced, making room for “just-in-time” onshore,
localized production and distribution.
Design will become increasingly democratized as the dominance
of brands gives way in favor of open business models.
© Copyright 2013 Hewlett-Packard Development Company, L.P. 13
Projection
Global Footwear Production and Consumption
0
2,5
5
7,5
10
12,5
0
5
10
15
20
25
30
Shoeproduction[billion pairs]
Total 2016 23,15 billion
Sources: DESMA market analysis 2016; based on numbers of WTO, UN, Footwear organisations, Material supplier
Current World Population2017-04-19
7,498,890,601
© Copyright 2013 Hewlett-Packard Development Company, L.P. 14
Projection
China Footwear Production
6
7
8
9
10
11
12
13
14
15
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
China 2015 13,53 billion pairsChina 2016 ~13,23 billion pairs
Billion pairs/year
China 2015 to 2016 ‒300 mio pair
Sources: DESMA market analysis 2016; based on numbers of WTO, UN, Footwear organisations, Material supplier
© Copyright 2013 Hewlett-Packard Development Company, L.P. 15
2016 Production in Countries and Regions
13,23
2,35
0,901,58
0,81 0,79 0,55 0,39 0,35 0,42 0,31 0,30 0,29 0,32 0,22 0,17 0,12 0,060
2
4
6
8
10
12
14 Numbers indicate production in billion
pairs/yearTotal 2016 23,15 billion
Billion pairs/year
Sources: DESMA market analysis 2016; based on numbers of WTO, UN, Footwear organisations, Material supplier
© Copyright 2013 Hewlett-Packard Development Company, L.P. 16
Supply Chain 2016
order
shipping
design
manufacturing
design
distribution retail
© Copyright 2013 Hewlett-Packard Development Company, L.P. 17
Development of the Footwear Industry over 60 years
0
1
2
3
4
5
6
7
8
9
10
Order lot Size WarehouseInventory
Product Variation Customer Influence
1960
1980
2000
2020
© Copyright 2013 Hewlett-Packard Development Company, L.P. 18
Driving digital transformationSilicon Valley Neighbors, 28 Year Relationship
Strategic Supplier to SAP
Personal and Mobility Systems
Member of SAP Strategic Customer Program
Select SAP Global Technology Partner
Additive Manufacturing Market-Maker & SAP GTM Partner
Growing Co-Innovation and Go-To-Market Partner
Strategic Supplier to HP
SAP Finance & Enterprise Resource Planning
SAP Supply Chain and Demand Chain Management
SAP Hybris and Concur (T&E)
SAP Multi-channel Consumer Relationship Management
Select HP Global Independent Software Vendor
HP Business, Platform & Co-Innovation Partner
© Copyright 2013 Hewlett-Packard Development Company, L.P. 19
HP’s first step toward this revolution starts with individualized footwear.
© Copyright 2013 Hewlett-Packard Development Company, L.P. 20
From many to ONE!
Today, designing for 7 billion Tomorrow,
designing for the individual
© Copyright 2013 Hewlett-Packard Development Company, L.P. 21
Let us walk you through the future Customer Experience
CustomerRetail
Location
Customer IDOnline Purchase
1. SCAN 2. ANALYZE & RECOMMEND
3. ADVANCED FIT WHILE YOU WAIT
NEAR FUTUREFULL CUSTOM SHOES
3D SCAN
PRESSURE SCAN
SHOE GEOMETRY+ CUSTOMER ID
3D PRINTED INSOLES
PERSONALIZED LASTS NOW
FOR CUSTOM SHOES LATER
Custom Midsoles
Custom Uppers
Custom Outsoles
UNIQUE TO BRANDSDigital Twin Cloud
SAP Hybris
HP Manufacturing & Procurement Cloud
SAP Distributed Manufacturing
Business Network of Distributed
Manufacturing