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Supply Chain

SU M M ER ED I TI ON
Contents

3 — Four ways to unshackle the supply chain

7 — Vision Detection

8 — Four Technologies driving the future of Supply


Chain Traceability

19 — Beef supply chain vulnerable to COVID-19 pandemic

21 — Project uses AI to strengthen global supply chains

24 — Würth Knowing Series Trailer

25 — Würth’s VMI Solutions and Today’s Supply Chain

28 — Strategies for securing the supply chain

31 — Automated container terminal streamlines U.S.


supply chain

2
Four ways to unshackle the
supply chain Four ways to
unshackle the
supply chain
COVID-19 has caused many supply chain challenges, but being proactive and
Vision Detection
aggressive can help manufacturers reduce potential headaches.
Four Technologies driving
the future of Supply Chain

S ince the onset of the COVID-19 pandemic, the disrupted global supply chain has
resulted in an unwelcome purchasing experience, including empty store shelves,
delayed deliveries and unavailable merchandise. Given the worldwide scope of this
Traceability

Beef supply chain


vulnerable to COVID-19
issue, the building industry hasn’t been immune to these shortages and delays either. pandemic
The demand for building facilities of all types, from healthcare to retail and warehouse,
Project uses AI to
remains strong. However, the availability of the equipment, components, and materi- strengthen global supply
als needed to complete these projects on time and on budget remains uncertain and chains
seemingly shifts on a whim. Würth Knowing Series
Trailer
Our approach to this challenge is a balance of technical ingenuity, industry know-how Würth’s VMI Solutions and
and leveraging relationships to minimize delays. With supply chain woes likely to con- Today’s Supply Chain
tinue for the foreseeable future as new COVID-19 variants emerge, here are four ways Strategies for securing the
to deliver projects with minimal disruption. supply chain

Automated container
1. Early procurement terminal streamlines U.S.
supply chain
Supply chain issues lengthen lead times for when equipment and materials can be
delivered to a job site. Procuring equipment earlier in the design phase of a project
is one key to countering this challenge. This is accomplished by working closely with
our clients to establish early equipment specifications in advance of design document
completion.

3
Four ways to unshackle the supply chain

Four ways to
unshackle the
supply chain
Vision Detection

Four Technologies driving


the future of Supply Chain
Traceability

Beef supply chain


vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global supply
chains

Würth Knowing Series


Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain

Automated container
Henderson Building Solutions is uniquely suited to sup- Courtesy: Henderson Engineers terminal streamlines U.S.
port early procurement. Since Henderson Building Solu- supply chain
tions is a licensed contractor in most states, we’re often able to personally assist our
clients with advanced procurement of equipment before a general contractor or sub-
contractors even begin working on a project. Early procurement specifications also
give clients the same advantage of being able to acquire items in advance if they
prefer to purchase equipment independently, thus avoiding any supply chain issues
4
Four ways to unshackle the supply chain

that may arise at later stages. Through Henderson’s longstanding vendor relationships, Four ways to
we are also able to connect clients with high volume building projects to our National
unshackle the
supply chain
Account connections and assist them with establishing procurement provisions in their
agreements. Vision Detection

Four Technologies driving


2. Open specifications the future of Supply Chain
Traceability
While early procurement is a helpful tool, open specifications that include multiple
vendors from whom to source equipment and products are also a key to combatting Beef supply chain
vulnerable to COVID-19
supply chain issues. Open specifications give contractors and subcontractors the free- pandemic
dom to choose which products to purchase, offering them much-needed flexibility
Project uses AI to
in both price and lead time throughout every phase of a project. However, not every strengthen global supply
product is created equal. A quality, open specification is especially beneficial for proj- chains
ects pursuing a design-bid-build project delivery method, where there is a lengthy lead Würth Knowing Series
time between project kick-off and completion of design documents and when supply Trailer
availability can have a drastic shift. Würth’s VMI Solutions and
Today’s Supply Chain
3. Leveraging industry relationships Strategies for securing the
The old saying goes, “It’s not about what you know, but who you know.” Henderson’s supply chain
technical and in-the-field expertise are key advantages during this unpredictable peri- Automated container
od. We design countless projects in a variety of markets on an annual basis, giving us terminal streamlines U.S.
supply chain
scale that helps forge relationships with manufacturers and suppliers across the coun-
try. Furthermore, our national office footprint in these markets has helped us establish
bonds with local and regional manufacturers’ representatives who can often help in
acquiring priority assistance. Manufacturers and supplies are also our clients and the
personal relationships we develop with them go a long way toward curtailing supply
chain issues.
5
Four ways to unshackle the supply chain

4. Open communication and education Four ways to


unshackle the
In addition to going the extra mile to achieve project goals, open communication is a supply chain
cornerstone of the client experience and we’re leaning into it even further. While no
Vision Detection
company can foresee supply and pricing fluctuations during this uncertain period, our
experts are keeping close watch and relaying our findings to clients and business part- Four Technologies driving
the future of Supply Chain
ners in a timely manner to ensure all relevant parties are aware and can make educated
Traceability
decisions and adjustments as we maneuver through these challenges together.
Beef supply chain
vulnerable to COVID-19
Brent Felten, Katie Molstad and Brian Sander pandemic
Brent Felten, retail sector client relationship director | principal, Henderson Engi-
Project uses AI to
neers. Katie Molstad, retail sector design & construction director | retail sector luxury strengthen global supply
practice director | principal, Henderson Engineers. Brian Sander, retail sector techni- chains
cal director | principal, Henderson Engineers Würth Knowing Series
Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain

Automated container
terminal streamlines U.S.
supply chain

6
Vision Detection

Four ways to unshackle the


supply chain

Vision Detection
Four Technologies driving
the future of Supply Chain
Traceability

Beef supply chain


vulnerable to COVID-19
pandemic

Project uses AI to


strengthen global supply
chains

Würth Knowing Series


Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain
Vision Detection Automated container
terminal streamlines U.S.
Today, you can buy just about anything online from small electronics
supply chain
to large garden furniture and even tires. This inevitably requires
handling of large, non-conveyable items. The growth rate of non-
conveyable items is higher than parcels with standard dimensions.
A new vision detection technology called Mass Flow Detection
System automates data collection of non-conveyable items.

7
Four Technologies How AI, Machine Vision, Smart devices, and
Optimized Pixel Density can reduce traceability
costs and manual labor expenses
driving the future
of Supply Chain R ecent world events, including the COVID-19 outbreak
and international political tensions, have highlighted
vulnerabilities in the global supply chain. In most cases

Traceability
these vulnerabilities manifested themselves as tighter
labor pools coupled with increased demand. This combi-
nation of increased work and decreased labor created the
perfect storm for many supply chains leaving them crip-
pled and unable to deliver for their customers.

Advanced automation technologies can help mitigate


these vulnerabilities for warehouses and distribution cen-
ters working to keep up with demand. Specifically, four
technologies can improve supply chains by reducing the
labor, labor costs, and costs associated with traceability.

Advancing Technologies
In the last two years, the pandemic has driven many of the
trends in supply chain, e-commerce, and the labor force.
In short, there has been an enormous increase in online
purchasing; likewise, the expectation for end-to-end and
last mile traceability has also increased enormously. Unfor-
tunately, the available labor force to meet these expecta-
Four Technologies driving the future of Supply Chain Traceability

Four ways to unshackle the


supply chain

Vision Detection

Four Technologies
driving the future
of Supply Chain
Traceability
Beef supply chain
vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global supply
chains

Würth Knowing Series


tions has dramatically decreased. These challenges drive incorporation of automation Trailer
into production, packaging, and the supply chain. While this is not a new phenome- Würth’s VMI Solutions and
non, four new technologies deliver greater benefits to supply chains significantly re- Today’s Supply Chain
ducing the cost of labor and traceabil- Strategies for securing the
ity: supply chain

• Machine Learning
“ Camera technology in traceability
devices provides plenty of images for
Automated container
terminal streamlines U.S.
supply chain
every Read and No Read. When a No
• Vision Detection Read event occurs, vision algorithms and
artificial intelligence can extract value
• Smart Scanning from these images. Using these tools, AI
can pinpoint the No Read root cause in an
• Optimized Aspect Ratio automated way.
” 9
Four Technologies driving the future of Supply Chain Traceability

Four ways to unshackle the


supply chain
AI Prevents Problems
Vision Detection
Almost every parcel traveling in supply chains is tracked and traced using barcodes.
Driven by regulatory requirements, customer expectations, or needs within the enter- Four Technologies
prise, traceability is crucial to supply chains. Therefore, maintaining a contiguous track- driving the future
ing history is important. In most cases a tracking history is interrupted by a barcode No of Supply Chain
Traceability
Read. No Reads kill the efficiency of traceability systems and wreak havoc on sorting
processes. No Reads result in automated systems becoming manual, so how do you Beef supply chain
vulnerable to COVID-19
prevent this? pandemic

Project uses AI to
Camera technology in strengthen global supply
traceability devices pro- chains
vides plenty of images for
Würth Knowing Series
every Read and No Read. Trailer
When a No Read event
Würth’s VMI Solutions and
occurs, vision algorithms Today’s Supply Chain
and artificial intelligence
Strategies for securing the
can extract value from supply chain
these images. Using
Automated container
these tools, AI can pin- terminal streamlines U.S.
point the No Read root supply chain
cause in an automated way. For example, the label Parcel with broken barcode classification
shown here should be recognized as a broken bar-
code classification.

AI can automatically do this classification along with aggregation and reporting. This
10
Four Technologies driving the future of Supply Chain Traceability

is the key to quickly helping understand major No Read causes and promptly define Four ways to unshackle the
supply chain
corrective action. One example of implementing AI to prevent No Read is the No Read
Classifier Engine. This is software Datalogic has added to the Web Sentinel™ Plus Vision Detection
platform. This engine automatically processes images related to No Read, classifying Four Technologies
them into different categories. Using this information, reports and queries can be run driving the future
on the database. For example, a trend report can show the hourly trend of No Reads of Supply Chain
on a certain day.
Traceability
Beef supply chain
vulnerable to COVID-19
Drilling down into the report could show several parcels of the same shape, from the
pandemic
same customer with labels placed across the seam. Rather than have this continue, a
corrective action with that customer can be issued. Without the automated classifica- Project uses AI to
strengthen global supply
tion, this issue may not have ever been identified and the manual work from No Reads chains
would have continued.
Würth Knowing Series
Trailer
There are many ways AI can be used to prevent No Reads. Corrective action, preventa-
Würth’s VMI Solutions and
tive maintenance and other activities can be done as the AI system sees No Reads and Today’s Supply Chain
categorizes them. All of this is done in real-time.
Strategies for securing the
supply chain
AI analysis makes improvements possible without spending large amounts of time to
Automated container
manually check parcel by parcel, image by image. Even at a very low throughput of 4,000 terminal streamlines U.S.
parcels per day, you would need to spend multiple hours per day for manual classifica- supply chain
tion to get to the root of a problem. This technology has a great benefit keeping auto-
mation running and workers focused on real high value tasks instead of manual rework.

Vision Detection
Supply chain applications have become more complex as items of varying shape,
11
Four Technologies driving the future of Supply Chain Traceability

size, and type are being Four ways to unshackle the


supply chain
purchased and fulfilled
through e-commerce. Vision Detection
The cardboard box and Four Technologies
poly bag are not the only driving the future
type of packaging moving of Supply Chain
through supply chains. As
Traceability
e-commerce grows, so do Beef supply chain
vulnerable to COVID-19
the shapes and sizes of
pandemic
parcels. Large or irregularly
shaped, non-conveyable Project uses AI to
strengthen global supply
items require manual mea- chains
surement, sorting, and Mass Flow Detection of items Würth Knowing Series
data collection. A new data collection system based on using on a conveyor Trailer
dynamic vision detection called Mass Flow Detection can
Würth’s VMI Solutions and
automate and eliminate the need for manual sorting for these large, irregularly shaped, Today’s Supply Chain
non-conveyable items. Vision systems deliver the ability to collect and do more with
Strategies for securing the
data. For example, a parcel with a miss- supply chain
ing label may still be identified through
its shape, color, or optical characteristics. “ Vision systems deliver the ability
to collect and do more with data. For
Automated container
terminal streamlines U.S.
Vision systems can process data applying example, a parcel with a missing label supply chain
algorithms that allow them to detect and
may still be identified through its shape,
decipher items in 3D.
color, or optical characteristics. Vision
systems can process data applying
The Mass Flow Detection System can
algorithms that allow them to detect and

” 12
determine if an image shows one irreg-
decipher items in 3D.
Four Technologies driving the future of Supply Chain Traceability

ularly shaped item or multiple parcels touching. The system provides volume data for Four ways to unshackle the
supply chain
each item, using advanced real-time image analysis to recognize and separate items.
Multiple scanners generate hundreds of images, which are stitched together to pro- Vision Detection
vide a high-resolution top view. Scanners collect barcode data from each item, and a Four Technologies
color camera takes a multi-sided view of each item running over the belt. The color driving the future
JPEG image is saved with a bounding box, created by 3D measurement data. The im- of Supply Chain
age and the bounding box provide proof of the object’s condition. All the data is ag-
Traceability
gregated creating a complete picture of the item’s physical characteristics (size, shape, Beef supply chain
vulnerable to COVID-19
weight), traceability data (barcode), and condition.
pandemic

The Mass Flow Detection System is revolutionary. The system eliminates the need for Project uses AI to
strengthen global supply
manual work that is currently performed to properly size items that do not fit or travel chains
on traditional conveyor systems. Moreover, its high accuracy certifies it for Legal for
Würth Knowing Series
Trade applications. In applications where clients provide dimensional data for their Trailer
non-conveyable shipments, the Mass Flow Detection System can audit shipments to
Würth’s VMI Solutions and
endure accuracy of the shipment and facilitate revenue recovery when shipment data is Today’s Supply Chain
incorrect.
Strategies for securing the
supply chain
Getting Smart with Barcode Detection Automated container
Technology advances are driving the creation of smarter devices. This is particularly terminal streamlines U.S.
true for data capture devices, specifically barcode imaging scanners. Most scanners are supply chain
considered dumb devices, they have one function which they are specifically designed
to do. To do this function they require other ancillary devices such as power supplies,
proximity sensors, cabling, switches, and programmable logic controllers (PLCs).

A new generation of Smart Scanners is emerging. One example is the AV900 from
13
Four Technologies driving the future of Supply Chain Traceability

Datalogic, a Smart Scanner that can Four ways to unshackle the


be programmed directly and can oper-
ate autonomously without much of the
“ Smart Scanners reduce the system
cost of traceability systems in two ways.
supply chain

Vision Detection
ancillary devices traditional scanners First, their built-in intelligence reduces
Four Technologies
require. Smart Scanners reduce the the componentry required to operate. driving the future
system cost of traceability systems in Second, this same intelligence when of Supply Chain
two ways. First, their built-in intelligence coupled with higher resolution imagers Traceability
reduces the components required to reduces the number of scanners required Beef supply chain
vulnerable to COVID-19
operate. Second, this same intelligence and makes the solution more effective


pandemic
when coupled with higher resolution im- with enhanced features.
agers reduces the number of scanners Project uses AI to
strengthen global supply
required and makes the solution more effective with enhanced features. chains

Würth Knowing Series


For example, fast and wide conveyor systems would require two standard barcode Trailer
scanners with 5 megapixels of resolution. These devices would need dimensioners,
Würth’s VMI Solutions and
power supplies, proximity sensors, cabling, switches, or Programmable Logic Control- Today’s Supply Chain
lers (PLCs) to ensure that the right parcel gets to the correct location. A Smart Scanner
Strategies for securing the
such as the AV900 delivers 9 megapixels of resolution allowing one device to replace supply chain
the traditional units. Importantly, the intelligence within the Smart Scanner directly
Automated container
increases its functionality and effectiveness with new features such as three different terminal streamlines U.S.
focusing modes: supply chain

• Fixed focus

• Dynamic focus

14
Four Technologies driving the future of Supply Chain Traceability

• Sequential focus Four ways to unshackle the


supply chain
Sequential focus is the most powerful mode in the Smart Scanner. In this mode the
scanner can be programmed to look for barcodes at different positions, with different Vision Detection
frame rates. The information for sequential focus is sent directly to the Smart Scanner Four Technologies
and stored locally. The sequence is executed directly without the need of a computer driving the future
or PLC. This type of intelligence illustrates how smart scanners do more than just scan of Supply Chain
barcodes; they cut the cost of traceability systems.
Traceability
Beef supply chain
vulnerable to COVID-19
Higher Accuracy with Barcode Scanners pandemic
While high resolution
Project uses AI to
remains an important strengthen global supply
specification in many chains
industrial applications,
Würth Knowing Series
how that resolution is Trailer
utilized can be even
Würth’s VMI Solutions and
more important. Most Today’s Supply Chain
barcode scanners have
Strategies for securing the
a 4:3 aspect ratio, cre- supply chain
ating a field of view that
Automated container
resembles a square. If terminal streamlines U.S.
one of these scanners supply chain
is positioned to scan a
Parcels travelling on a
2-foot conveyor covering the full width, the field of view is 2 feet conveyor with a 4:3 FOV
x 1.5 feet, with pixels evenly spaced over that area. Most bar- barcode scanner

codes are detected close to the starting edge of the field of the
view, meaning that many of the available pixels go unused, creating serious system in-
15
Four Technologies driving the future of Supply Chain Traceability

efficiency and problems Four ways to unshackle the


supply chain
for barcode detection.
If an application requires Vision Detection
an increased field of Four Technologies
view, the scanner must driving the future
be raised to cover the of Supply Chain
width of the conveyor.
Traceability
Increasing the scanning Beef supply chain
vulnerable to COVID-19
area reduces pixel densi-
pandemic
ty in the field of view and
impacts how well the Project uses AI to
strengthen global supply
scanner can detect and decode barcodes. Poorly printed, dam- Parcels travelling on a chains
conveyor with a 16:9
aged, or low-contrast barcodes can become difficult or impossi-
FOV barcode scanner Würth Knowing Series
ble to read. A common solution is to add more scanners, but this Trailer
increases cost and complexity.
Würth’s VMI Solutions and
Today’s Supply Chain
Optimizing the aspect ratio is a better way to solve this challenge and it provides a
Strategies for securing the
better fit for industrial applications. For example, the Matrix™ 320 from Datalogic de- supply chain
livers a 16:9 aspect ratio, a flatter rectangle than the 4:3 aspect. Changing the aspect
Automated container
ratio provides a wider field of view making it more effective to cover conveyor applica- terminal streamlines U.S.
tions while maintaining high pixel density. The real benefit comes when reading poorly supply chain
printed, damaged, low-contrast, or multicolor barcodes. The 16:9 aspect has more
pixels in the read zone enabling higher often, when a barcode scan fails, a person must
intervene to make sure the package continues to its destination. This human involve-
ment is required to ensure the accuracy of a parcel’s traceability data. An optimized
aspect ratio provides more pixels in a rectangular field of view, which greatly increases
16
Four Technologies driving the future of Supply Chain Traceability

the number of readable labels. Reducing barcode scan failures reduces labor costs. Four ways to unshackle the
supply chain
While aspect ratio might seem basic, optimizing it for better detection plays a critical
role in reducing labor costs and increasing traceability effectiveness. Vision Detection

Four Technologies
Technology to Stay Competitive driving the future
Optimizing aspect ratio, smart scanning, vision detection, and machine learning pro- of Supply Chain
Traceability
vide tangible, quantifiable advantages for traceability improvement. Moreover, they
deliver real business benefits that increase the enterprise bottom line. Companies not Beef supply chain
vulnerable to COVID-19
utilizing these technologies will find it increasingly difficult to stay competitive. Tech- pandemic
nology is not stagnant, improvements in traceability systems will continue to bring
Project uses AI to
benefits to enterprises willing to adapt while laggards fall farther behind. To see how strengthen global supply
these technologies can benefit your enterprise, contact your local Datalogic represen- chains
tative or visit: www.datalogic.com.
Würth Knowing Series
Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain

Automated container
terminal streamlines U.S.
supply chain

17
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HandScanner is the lightest Don’t grab a scanner to read
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Designed specifically for it automatically. With an
supply chain applications, it amazing depth of field and
makes picking items and data industry leading performance,
capture fast and easy. The the Matrix will read every bar
HandScanner is very easy to code as parcels are moved
use and Bluetooth connects it through the field of view.
to any smart device.

Request a no-cost evaluation device – CLICK HERE


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800-BAR-CODE (800-227-2633)
Beef supply chain vulnerable
to COVID-19 pandemic Four ways to unshackle the
supply chain

Vision Detection
Kansas State University researchers found multiple supply chain
Four Technologies driving
vulnerabilities for the beef industry, which are further heightened by the
the future of Supply Chain
COVID-19 pandemic. Traceability

Beef supply chain


A n interdisciplinary team of Kansas State University researchers developed a com-
puter simulation that revealed beef supply chain vulnerabilities that need safe-
guarding — a realistic concern during the COVID-19 pandemic.
vulnerable to
COVID-19 pandemic
Project uses AI to
strengthen global supply
Caterina Scoglio, professor, and Qihui Yang, doctoral student, both in electrical and chains
computer engineering, recently published “Developing an agent-based model to sim-
Würth Knowing Series
ulate the beef cattle production and transportation in southwest Kansas” in Physica A, Trailer
an Elsevier journal publication.
Würth’s VMI Solutions and
Today’s Supply Chain
The paper describes a model of the beef production system and the transportation
Strategies for securing the
industry, which are interdependent critical infrastructures — similar to the electrical grid supply chain
and computer technology. According to the model, disruptions in the cattle industry —
Automated container
especially in the beef packing plants — will affect the transportation industry and togeth- terminal streamlines U.S.
er cause great economic harm. The disruptions modeled in the simulation share similari- supply chain
ties with how the packing plants have been affected during the COVID-19 pandemic.

“When we first started working on this project, there was a lot of emphasis on study-
ing critical infrastructures; especially ones that are interdependent, meaning that they
need to work together with other critical infrastructures,” Scoglio said. “The idea is if
there is a failure in one of the systems, it can propagate to the other system, increasing
the catastrophic effects.”
19
Beef supply chain vulnerable to COVID-19 pandemic

The study included a variety of viewpoints to create a realistic and integrated model Four ways to unshackle the
supply chain
of both systems. The researchers used the model to evaluate which supply chain com-
ponents were more robust and which were not. They determined that packing plants Vision Detection
are the most vulnerable. Scoglio said that recent events in the middle of the COVID-19 Four Technologies driving
pandemic raise important issues about how to safeguard the system. the future of Supply Chain
Traceability

“An important message is that after understanding the critical role of these packers, Beef supply chain
we need to decide how we could protect both them and the people who work there,” vulnerable to
COVID-19 pandemic
Scoglio said. “While the plants are a critical infrastructure and need to be protected,
taking care of the health of the workers is very important. How can we design a pro- Project uses AI to
strengthen global supply
duction process that can be flexible and adaptable in an epidemic?” chains

Würth Knowing Series


According to the paper, the beef cattle industry contributes approximately $8.9 billion
Trailer
to the Kansas economy and employs more than 42,000 people in the state. Since trucks
Würth’s VMI Solutions and
are needed to move cattle, any disruption in either cattle production or transportation
Today’s Supply Chain
almost certainly would harm the regional economy, Scoglio said.
Strategies for securing the
supply chain
“Packers need to be considered as a critical point of a much longer supply chain,
Automated container
which needs specific attention to make sure it will not fail and can continue working,”
terminal streamlines U.S.
Scoglio said. “Beef packers are a critical infrastructure in the United States.” supply chain

The project was supported by the National Science Foundation and focused on south-
west Kansas, but the researchers acknowledge that cattle come from outside the re-
gion and interruptions may have larger national effects.

Stephanie Jacques
Stephanie Jacques, Kansas State University 20
Project uses AI to strengthen
global supply chains Four ways to unshackle the
supply chain

Vision Detection
Cornell University researchers are developing machine learning and
Four Technologies driving
blockchain tools to better understand and support the global supply chain,
the future of Supply Chain
whose vulnerabilities were exposed by the COVID-19 pandemic. Traceability

Beef supply chain

C ornell University researchers are looking into developing machine learning and
blockchain tools to better understand and support the global supply chain, whose
vulnerabilities were exposed by the COVID-19 pandemic.
vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global
Andreea Minca, associate professor of operations research and information engineer- supply chains
ing in the College of Engineering, was awarded a three-year, $250,000 grant by Axa,
Würth Knowing Series
the multinational insurance company based in France, for the research. Trailer

Würth’s VMI Solutions and


“In March we were experiencing shortages, especially in some medical devices, be- Today’s Supply Chain
cause everything had broken down – there was really a collapse of the supply chains,”
Strategies for securing the
said Minca, whose usual area of research is in finance and systemic risk. “This funding supply chain
will allow us to develop mathematical technology methodology to identify vulnerabili-
Automated container
ties in global supply chains and in their insurance/reinsurance networks, so those sys- terminal streamlines U.S.
tems become more robust.” supply chain

Reinsurance is pooled insurance purchased by insurance companies to protect them-


selves from large losses stemming from major events. When reinsurers cover primary
insurers of the supply chain system, as well as other reinsurers, it creates a complex
system; poor design of these systems can lead to catastrophic losses.

21
Project uses AI to strengthen global supply chains

Four ways to unshackle the


supply chain

Vision Detection

Four Technologies driving


the future of Supply Chain
Traceability

Beef supply chain


vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global
supply chains
Würth Knowing Series
Trailer

Würth’s VMI Solutions and


Today’s Supply Chain
Courtesy: CFE Media and Technology
Minca’s project aims to develop tools for machine
Strategies for securing the
learning-based market designs in supply chain net- supply chain
works with reinsurance contracts, in order to identify potential gaps before another
Automated container
pandemic or disaster occurs. terminal streamlines U.S.
supply chain
Because these systems are so complex, machine learning is helpful in identifying the
structures that could pose systemic risk, Minca said.

Her team will also use mathematical tools to study the design of system insurance, in
which entities such as local governments are incentivized to contribute to a “rainy-day
fund” that could buffer supply chains in the event of disasters.
22
Project uses AI to strengthen global supply chains

Thirdly, the project will design blockchain systems that use geographic information to Four ways to unshackle the
supply chain
verify maritime data, to ensure that this data is consistent and accurate across different
providers. Vision Detection

Four Technologies driving


“How do you design a system in which people are reporting the location of a ship- the future of Supply Chain
Traceability
ment, in a context where there are severe restrictions on where the shipments can go
because of a pandemic?” Minca said. “You could have closed ports, you could have Beef supply chain
vulnerable to COVID-19
outbreaks in some areas, and those become no-go zones – all of that needs to be veri- pandemic
fiable by multiple parties.”
Project uses AI to
strengthen global
Minca hopes the research will help supply chains and the companies that insure them supply chains
better prepare for future catastrophes with worldwide consequences.
Würth Knowing Series
Trailer
“What was really shocking with COVID-19 was this disjointed supply and demand,” she
Würth’s VMI Solutions and
said. “Borders were shutting down, which made it impossible to make and route ship-
Today’s Supply Chain
ments in an optimal way. To be prepared for that, you need to have some contingency
Strategies for securing the
plans, and they need to be financially supported, so things don’t break down at the
supply chain
next shock.”
Automated container
terminal streamlines U.S.
Melanie Lefkowitz supply chain
Melanie Lefkowitz, Cornell University

23
Würth Knowing Series Trailer

Four ways to unshackle the


supply chain

Vision Detection

Four Technologies driving


the future of Supply Chain
Traceability

Beef supply chain


vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global supply


chains

Würth Knowing
Series Trailer
Würth’s VMI Solutions and
Today’s Supply Chain

Strategies for securing the


supply chain
Würth Knowing Series Trailer Automated container
Würth Knowing, a YouTube Series inspired by Würth Industry terminal streamlines U.S.
supply chain
North America’s industry-renowned Fastener Academy
training, dives into topics related to fastener engineering,
bolted joint design, and fastener assembly.

24
Würth’s VMI
Solutions and
Today’s Supply
Chain

M aintaining the right stock of C-Parts, which have low


value but high procurement and processing costs,
can be an expensive, time-consuming process—especially
when the global supply chain becomes as tumultuous as it
is today. Why not leave that to us?

For Würth, Vendor Managed Inventory (VMI) refers not


only to the physical inventory management systems and
solutions we provide—like Kanban 2-bin systems, vending
solutions, kitting and assembly, etc.—but also refers to the
expertise and service we provide to support those systems.
The expertise of our team is just as much a part of our ser-
Wes Revercomb vice offering as our technology.
National Business Development Manager
Würth Industry North America
Würth’s VMI Solutions and Today’s Supply Chain

Four ways to unshackle the


How is our team supporting our customers during these supply chain
times?
Vision Detection
Understanding the nuances of today’s complex supply chain can be challenging, but
our logistics team possesses that understanding. Beyond excelling at business-as-usu- Four Technologies driving
the future of Supply Chain
al logistics management, they can navigate the gap buys and expedites necessary to Traceability
keep our customers running during turbulent times.
Beef supply chain
vulnerable to COVID-19
Beyond simply fulfilling orders as they come in automatically via our RFID and pandemic
vending technologies, our experienced sourcing team can support by proactive- Project uses AI to
ly bringing in additional inventory that is anticipated to become more difficult to strengthen global supply
source in the future. chains

Würth Knowing Series


If a part becomes impossible to source due to shortages or supply chain hang-ups, our Trailer
knowledgeable engineers can provide part alternatives, and the information and sup- Würth’s VMI
port needed to implement those alternatives. Solutions and Today’s
Supply Chain
These are just some of the many ways we are here to support our customers and shield Strategies for securing the
them from the impacts of today’s market conditions. supply chain

Automated container
We provide global reach, but local knowledge. terminal streamlines U.S.
supply chain
Family-owned and privately held since 1945, the Würth Group spans over 80 countries
and employs over 80,000 individuals. Our access to global knowledge and resources
provides us with a network of stability that is so important at this time, while our boots-
on-the-ground local teams has the personal relationship and understanding to ensure
that each individual customer’s needs are met.

26
Würth’s VMI Solutions and Today’s Supply Chain

Four ways to unshackle the


Inventory management can be optimized for YOU. supply chain
We don’t offer one-size-fits all VMI programs. We understand that inventory manage-
Vision Detection
ment needs differ from customer to customer, and even from facility to facility—that’s
why we tailor-make each VMI program to optimize each of our customers’ needs, with Four Technologies driving
the future of Supply Chain
the capability to serve multiple facilities with a consistent approach, but custom solu- Traceability
tions for each site. Before implementation, we conduct a thorough study of customers’
Beef supply chain
culture, specific needs and requirements, and manufacturing environment and process-
vulnerable to COVID-19
es to gain a full understanding of how best to serve them. pandemic

Project uses AI to
Once implemented, our VMI programs are data-driven as opposed to the standard strengthen global supply
“set it and forget it” approach. Each time a bin is scanned or an MRO or PPE item is chains
dispensed from a vending machine, we obtain data. We then use this data, combined Würth Knowing Series
with our customers’ forecasts, to continuously improve and “right-size” the program. Trailer
This approach has been proven to drive costs out of our customer’s operations and Würth’s VMI
allows our customers to truly focus on core aspects of their business. Solutions and Today’s
Supply Chain
We have what it takes to move you forward and further, even during this difficult time. Strategies for securing the
Are you ready to partner? supply chain

Automated container
Wes Revercomb terminal streamlines U.S.
Wes Revercomb is based in Fort Worth, TX and on the WINA National Business Devel- supply chain

opment Team, specifically covering the South-Central region of the United States. His
focus in this role is identifying and pursuing strategic opportunities to implement our
programs with national-level prospects. Wes has been with Würth since 2017 where he
started his career as a regional sales rep with Wurth Snider Bolt & Screw in the Texas
market. Before coming to Würth, Wes was a professional fly-fishing and snowmobiling
guide in Jackson Hole, WY.
27
Strategies for securing the
supply chain Four ways to unshackle the
supply chain

Vision Detection
The National Institute of Standards and Technology (NIST) is working on a
Four Technologies driving
publication designed to reduce cybersecurity risks to the supply chain.
the future of Supply Chain
Traceability

R educing the cybersecurity risk to the global supply chain is the goal of a new pub-
lication by the National Institute of Standards and Technology (NIST). Key Practices
in Cyber Supply Chain Risk Management (Draft NISTIR 8276) provides a set of strate-
Beef supply chain
vulnerable to COVID-19
pandemic
gies to help businesses address the cybersecurity issues posed by modern information Project uses AI to
and communications technology products, which are commonly built using compo- strengthen global supply
nents and services supplied by third-party organizations. The composed nature of chains
these devices and systems makes them difficult to secure effectively against malware Würth Knowing Series
and other threats, placing manufacturers, service providers and end users at risk. Trailer

Würth’s VMI Solutions and


“The seed of the problem is that everything is interconnected nowadays,” said NIST’s Today’s Supply Chain
Jon Boyens, one of the draft report’s authors. “Products are very sophisticated, and Strategies for securing
with our globalized economy, companies often outsource the tasks of developing com- the supply chain
ponents and code to other companies, involving multiple tiers of suppliers.”
Automated container
terminal streamlines U.S.
Vulnerabilities in the cyber supply chain, which is a complex network of connections supply chain
rather than a single strand, involve not only microchips and their internal code, but
also the support software for a device and the other companies that have access to its
components. Put them all together, and it can be a daunting task to anticipate every
weakness a bad guy could attempt to exploit.

Recent cyber breaches ended up linked to supply chain risks.


28
Strategies for securing the supply chain

One high-profile attack from the Four ways to unshackle the


supply chain
second half of 2018, Operation
ShadowHammer, is estimated to Vision Detection
have affected up to a million us- Four Technologies driving
ers. A 2013 attack by the Dragon- the future of Supply Chain
Traceability
fly group targeted companies with
industrial control systems, such as Beef supply chain
vulnerable to COVID-19
those distributing energy within pandemic
the U.S. This attack infected com-
Project uses AI to
panies in critical industries with strengthen global supply
malware. Symantec’s 2019 Inter- chains
net Security Threat Report found Würth Knowing Series
supply chain attacks increased by Trailer
78 percent in 2018. Würth’s VMI Solutions and
Today’s Supply Chain
The NIST report is a high-level
Strategies for securing
document intended to be easily the supply chain
understood and applied in man-
Automated container
aging these risks. Its core is a terminal streamlines U.S.
27-page section outlining eight supply chain
key practices that have proven
to be useful, from establishing a
formal risk management program
to collaborating closely with key
suppliers. Each key practice is ac-
companied by a set of recommen-
29
Strategies for securing the supply chain

dations, and because each organization will have its own specific needs, the authors Four ways to unshackle the
supply chain
also include guidance on how to apply these recommendations.
Vision Detection
Acknowledging that companies in different economic sectors might manage supply Four Technologies driving
chain risk differently, the authors also offer a set of 24 case studies in risk management the future of Supply Chain
Traceability
that feature a variety of businesses ranging from aerospace and IT manufacturers to
consumer goods companies. Beef supply chain
vulnerable to COVID-19
pandemic
“Many companies share the same suppliers, but their overall supply chains are still very
Project uses AI to
different,” Boyens said. “To supplement our report you can look for the case studies strengthen global supply
that are relevant to your industry.” chains

Würth Knowing Series


Public comments will be considered before NIST releases a final version planned for Trailer
Spring 2020. Würth’s VMI Solutions and
Today’s Supply Chain
Gregory Hale
Strategies for securing
Gregory Hale is the editor and founder of Industrial Safety and Security Source (ISS- the supply chain
Source.com), a news and information website covering safety and security issues in the
Automated container
manufacturing automation sector. terminal streamlines U.S.
supply chain

30
Automated container terminal
streamlines U.S. supply chain Four ways to unshackle the
supply chain

Vision Detection
The TraPac San Pedro Bay facility in Los Angeles is the first automated
Four Technologies driving
container terminal in North America, bringing more goods through the same
the future of Supply Chain
footprint, with faster truck turn times and a 90% reduction in emissions Traceability

Beef supply chain

C ontainer terminals are vital links in the U.S. supply chain between manufacturers
and consumers. The TraPac San Pedro Bay facility in Los Angeles shows how auto-
mation enabled terminal operators to move goods more quickly and efficiently, while
vulnerable to COVID-19
pandemic

Project uses AI to
doing more to protect the environment and workers. strengthen global supply
chains
The facility is the first automated container terminal in North America (see Figure 1). Würth Knowing Series
Automation bringing more goods through the same footprint than a manual facility, Trailer
with faster truck turn times and a 90% reduction in emissions. The company also oper- Würth’s VMI Solutions and
ates container terminals in Oakland, Calif., and Jacksonville, Fla. Today’s Supply Chain

Strategies for securing the


The Los Angeles and Oakland terminals have a cargo capacity of 1.6MM TEUs and supply chain
650,000 TEUs, respectively, with volumes increasing. TEU stands for twenty-foot equiva- Automated container
lent unit, a measure of containerized cargo. Agricultural exports from the Midwest and terminal streamlines
imported goods from Pacific Rim countries transit through the terminal. U.S. supply chain

An investment toward automation


“We’ve invested in the future, using automation technologies to move cargo through
the terminal quickly and safely, heighten security for personnel and cargo, minimize
customer risk and delays, and reduce emissions,” said Mark Jensen, vice president for
asset management at TraPac.
31
Automated container terminal streamlines U.S. supply chain

Four ways to unshackle the


supply chain

Vision Detection

Four Technologies driving


the future of Supply Chain
Traceability

Beef supply chain


vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global supply
chains

Würth Knowing Series


Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain

Automated container
Containers at TraPac’s Los Angeles Figure 1: The TraPac San Pedro Bay facility in Los Angeles terminal streamlines
terminal now move in a highly choreo- was the first in California to implement many automated U.S. supply chain
systems, including truck handling, on-dock (intermodal) rail
graphed dance between ships, trains and customs scanning. Courtesy: PI North America
and trucks, using hybrid automated
straddle carriers (auto-strads) and electrical grid-powered automated stacking cranes
(see Figure 2). The terminal was the first in California to implement many automated
systems, including truck handling, on-dock (intermodal) rail and customs scanning.

32
Automated container terminal streamlines U.S. supply chain

By confining most container handling functions behind a secure fence, the operation Four ways to unshackle the
supply chain
is also safer, with many features designed to keep humans and machines separate,
such as kiosks to protect truck drivers as automated equipment moves to load or un- Vision Detection
load their trucks. If a driver steps off the pressure sensor pad in the booth, automated Four Technologies driving
equipment is immediately halted. These and other safety features were implemented the future of Supply Chain
Traceability
through secure collaboration to aid large-scale remote operations.
Beef supply chain
vulnerable to COVID-19
Linking efficiency, safety with Profinet pandemic
A Profinet Ethernet network links the automated stacking cranes at the terminal
Project uses AI to
and allows facility-wide programmable logic controller (PLC) monitoring of devices strengthen global supply
to maintain uptime and safety, while ProfiSafe is integrated into the access control chains
for the automation system (see Figure 3). (ProfiSafe is an additional software layer Würth Knowing Series
that provides functional safety over the bus on top of existing Profibus and Prof- Trailer
inet protocols.) The conveyor that moves containers through customs scanning also Würth’s VMI Solutions and
uses Profinet. Today’s Supply Chain

Strategies for securing the


“The risk controls call for a deterministic automation network to provide for predict- supply chain
able heartbeat-type PLC monitoring from field devices that, in turn, allows other el-
Automated container
ements of the system to respond in a known time to both expected and emergency terminal streamlines
commands,” Jensen said. “For example, in the event of an access point being forceful- U.S. supply chain
ly breached, the automation control system is able respond in sub-seconds, bringing
our massive cranes and [automated straddle carriers] to a stop.”

The multi-protocol multi-vendor approach


Profinet and Profibus communications are deployed in two main ways at the terminal.
“Profibus is the dominant protocol between the PLC and motion drives in the auto-
33
Automated container terminal streamlines U.S. supply chain

Four ways to unshackle the


supply chain

Vision Detection

Four Technologies driving


the future of Supply Chain
Traceability

Beef supply chain


vulnerable to COVID-19
pandemic

Project uses AI to
strengthen global supply
chains

Würth Knowing Series


Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain

Automated container
mated cranes,” Jensen said, “while Profinet Figure 2: Containers at TraPac’s Los Angeles terminal streamlines
terminal now move in a highly choreographed
is used extensively over the crane itself with U.S. supply chain
dance between ships, trains and trucks, using
both copper and fiber physical layers. Profinet hybrid automated straddle carriers (auto-strads).
Courtesy: PI North America
also connects the automated stacking cranes,
access control and the centralized controller
PLCs. This across-facility communication to bring cranes and access control together
also relies on a combination of copper and fiber physical layers.

34
Automated container terminal streamlines U.S. supply chain

“In the case of the Four ways to unshackle the


supply chain
across-facility communi-
cation application be- Vision Detection
tween PLC equipment Four Technologies driving
nodes, this includes a the future of Supply Chain
Traceability
lot of heartbeat-style
monitoring by the PLCs Beef supply chain
vulnerable to COVID-19
to ensure a continuously pandemic
connected fail-safe sys-
Project uses AI to
tem, as well as grander strengthen global supply
automated interactions chains
between the paired Würth Knowing Series
cranes on common rail Trailer
runways within a crane Würth’s VMI Solutions and
block.” Today’s Supply Chain

Strategies for securing the


The automated stacking cranes were the first Figure 3: A Profinet network links the automated
supply chain
stacking cranes at the terminal and allows
to use a Profinet network at the facility. Mod- facility-wide programmable logic controller (PLC) Automated container
bus is used in a number of other applications, monitoring of devices to maintain uptime and
terminal streamlines
safety. Courtesy: PI North America
and intra-equipment systems deploy other U.S. supply chain
fieldbuses, such as CANbus, CANopen and
ASi. Wireless communications also link the automated straddle carriers and various
portable devices, such as those used by union clerks for exception handling and for
reefer monitoring by union mechanics.

“Throughout these communication arrangements, we are interfacing across many


35
Automated container terminal streamlines U.S. supply chain

brands,” Jensen said. “Additionally, we maintain certain redundancies within our infra- Four ways to unshackle the
supply chain
structure to effectively manage scenarios that may create delays.”
Vision Detection
On-dock rail uses Profinet for remote desk connection for exception handling. “Our Four Technologies driving
intermodal yard cranes also interface with the infrastructure and systems through an the future of Supply Chain
Traceability
orchestrated automated arrangement,” Jensen said. “As a company, we are continu-
ing to improve and surpass challenges through equipment abilities and operational Beef supply chain
vulnerable to COVID-19
scenarios.” pandemic

Project uses AI to
Kalmar, a Finnish maker of material handling equipment for container and industrial strengthen global supply
applications, designed and manufactured the terminal’s automated systems. chains

Würth Knowing Series


A multi-stage transition Trailer
The TraPac terminal’s transformation from diesel-powered material handling equip- Würth’s VMI Solutions and
ment to automated grid-electric with hybrid machines was accomplished through a Today’s Supply Chain
multi-stage project, allowing the terminal to keep operating on schedule throughout Strategies for securing the
the transition. supply chain

Automated container
The first phase, which began in 2012, saw the installation of the first auto-strads and terminal streamlines
the first four automated stacking crane blocks. This was followed between 2014 and U.S. supply chain
2018 by 11 more crane blocks and an increase in the auto-strad fleet.

The automated stacking cranes, which can stack containers up to five high and lift
loads up to 41 tons, have enabled TraPac to stack containers more densely, freeing up
space for the intermodal rail system, which also was brought online during this period.
It’s the only fully automated, emissions-free on-dock U.S. rail yard.
36
Automated container terminal streamlines U.S. supply chain

The terminal now deploys 29 giant, rail-mounted gantry stacking cranes powered by Four ways to unshackle the
supply chain
grid electricity to move containers, replacing rubber-tired, diesel-powered cranes.
Truck handling is a sub-feature of the automated stacking cranes. Vision Detection

Four Technologies driving


“Although it does not exclusively rely on Profinet, the interface has been improved,” the future of Supply Chain
Traceability
Jensen said. “With continued reliability, interfacing communication and behaviors have
allowed better handling of containers for landside delivery. This is achieved by main- Beef supply chain
vulnerable to COVID-19
taining a driver on a pressure sensor in their respective kiosk box, allowing the crane to pandemic
operate and safely handle the evolution at the landside transfer point.”
Project uses AI to
strengthen global supply
A cleaner ecosystem, faster motion control chains
“By being able to pack containers more densely, we’ve been able to better match yard Würth Knowing Series
capacity to berth capacity as well as reallocate space for intermodal operations,” Jen- Trailer
sen said. “Before, we had to truck every container through local streets to the terminal. Würth’s VMI Solutions and
Now, with 30 percent of the collection and distribution moves completed by rail, street Today’s Supply Chain
congestion and emissions have been reduced and containers are moved more quickly Strategies for securing the
to rail hubs closer to the beneficial cargo owners.” supply chain

Automated container
There has also been a huge reduction in emissions from over-the-road truckers in the terminal streamlines
vicinity of the terminal, according to Jensen. This is important because an average of U.S. supply chain
1,000 trucks move through the terminal during each shift, with nine shifts every week.

“A key difference in our automated terminal area is that we get the truckers to an au-
tomation area where they wait (engine off) while we collect or bring the containers to
them as the case might be for either single or dual transactions. This way of working
significantly reduces the truckers ‘engine on’ time within our terminal,” he said.
37
Automated container terminal streamlines U.S. supply chain

Emission control measures even extend to the ships that call at the port, with 100% Four ways to unshackle the
supply chain
of the vessels using alternative maritime power (AMP) or an equivalent technology to
reduce pollutants and greenhouse gases. All of these advances have created a near-ze- Vision Detection
ro emissions ecosystem at the Los Angeles terminal, in keeping with California’s strict Four Technologies driving
environmental requirements and TraPac’s goals for achieving a more efficient, safer and the future of Supply Chain
Traceability
cleaner operation.
Beef supply chain
vulnerable to COVID-19
Nelly Ayllon pandemic
Technical marketing director, PI North America.
Project uses AI to
strengthen global supply
chains

Würth Knowing Series


Trailer

Würth’s VMI Solutions and


Today’s Supply Chain

Strategies for securing the


supply chain

Automated container
terminal streamlines
U.S. supply chain

38
Supply Chain

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