Different Industries, Same ProblemGlobal value chains are missing item-level digitalization
Industries and Applications
Warehousing: largest cost factor is the picking step which is 91% manual
The total logistics costs are driven by three major factors: warehousing with the highest cost contribution, followed by transportation and lastly, by inventory carrying. 91% of inventory registration, validation, and booking procedures are still performed manually by human operators.
- Error-prone manual data entry often with pen and paper processes
- Quality and quantity low inspection standards (visual inspection)
A $1.5 Trillion Problem
The global food market amounts to $9 Trillion markets with a very high loss rate of up 30-40%. These losses accumulate with 1.6 Billion-Ton or nearly 8% or 3.3 Billion-Ton of the equivalent CO2 emissions. Excessive waste occurs in all stages of the food value chain with a total loss rate of $2.66 per kg.
- No digital twin and traceability across product-life
- No holistic "IoT-Layer" to manage products
A $12 Trillion underperforming value chain
Innovation and digitalization are not widely adopted in jobsites. The construction sector accounted for a staggering 39% of global CO2 emissions in 2018 and 30,000 casualties are caused each year by collapsing buildings because of structural issues No digital twin and traceability across product-life. Inefficiencies are caused by:
- Non-digital processes are driven by the experience of architects, engineers, and builders that rely heavily on pen and paper processes.
- Supply chain disruptions that led to the cost of construction materials to hit all-time high levels in 2022.
Pharma Market & Trends in Numbers
The global pharma market amounts to $1.265 Trillion (2020) and is expected to grow to $1.7 Trillion by 2025. Transformations of supply-chains in Pharma will see more production facilities moving back in part to home countries and markets. Opportunity:
- The industry with high growth rates expected in the next 5 years with about 8%
- The COVID pandemic did not only massively influence the pharma industry in the short term & catalyzed further growth for the years
Global Packaging Market: $900 Biliion
Four elements that drive today's packaging industry are an increasing e-commerce sector, customers seeking sustainable products (including the packaging), dynamic consumer habits and needs, and digitalization. Major challenges within:
- No digital turnkey platforms to connect with physical assets
- No offer for cost-effective IoT sensors and a scalable cloud system to connect with
A $5 Trillion Industry losing 30% along the way
The world population expects to reach 9.7 billion in the next decades. Demand for food is growing while the supply chain faces limitations regarding land and farming. What Agro-Industry requires is more sophisticated digital solutions, as an answer to the 70% increase in available calories for consumption for the racing population. Some benefits are:
- Yields optimization driven by real-time data
- Fair labor and improved economics
Complex supply chains such as automative are heavily impacted by shortages
- Shortages in complex products with long supply-chain as cars that require 20,000+ components continue to fall short of potential production
- Just-In-Time production flows vs. planning for 1 $Trillion opportunity in the next 5 years
The great consumer migration: over 60 percent of global consumers have changed shopping behavior
The ongoing global COVID-19 pandemic supercharged a migration that otherwise might have taken years. The e-commerce deliveries in some markets have reached a pace of 10 years in about 8 weeks, while general e-commerce has grown two to five times faster than before the pandemic. Most Consumer Packaged Goods (CPG) markets have seen more than 10 percent growth in their online customer base during the pandemic.
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