What Google is up to in Supply Chain, Logistics and Manufacturing (Hans Thalbauer, Google Cloud)

Show notes

Today we will take a look at what Google, in particular Google Cloud, is up to when it comes to Logistics and Supply Chain Management. Google Cloud has been active in this space for a couple of years now and it’s starting to become clear now why it may actually be a great match.

Our guest today is Hans Thalbauer who has a rich history in Supply Chain tech, and is now the Managing Director of Google Cloud’s Supply Chain and Manufacturing capabilities.

Together with our host Marco Prüglmeier, Hans covers the following topics:

  • Hans’ path from Austria to Silicon Valley

  • What prompted Google to enter the field of Supply Chain?

  • Google's Supply Chain Twin

  • The different data segments that can be leveraged for Supply Chain Management: Private segment (e.g. ERP data), community Segment (e.g. orders, tracking data), public data segment (e.g. weather, traffic, health data)

  • Google's Supply Chain Pulse

  • How Artificial Intelligence can be applied to SC data

  • Why Google is not creating applications, but is partnering with SCM solution providers instead

  • How to make it easier for companies to connect and exchange data: EDI, API, Google’s Data Warehouse (BigQuery), even GMail.

  • Google’s flexible Data Model

  • Last-Mile Solutions

  • Google Cloud Fleet Routing

  • An example of how weather and climate data can be combined with agricultural satellite data to predict impacts harvests

  • Dynamic ETAs for truck transports leveraging real-time Google Maps data

  • Sustainability KPIs and Scope 3 data

  • How to measure the impacts of your sustainability efforts.

  • On a 10-year time frame: What does the future of supply chain and logistics operations look like?

  • Hans’ prediction of the “post outsourcing” world

  • and much more

Show transcript

00:00:00: Hello and welcome to the logistics Drive

00:00:08: I'm boys felgendreher founder of the logistics tribe in today we will take a look at what Google and particular Google cloud is up to when it comes to Logistics and Supply Chain management

00:00:17: Google cloud has been active in this space for a couple of years now and it's starting to become clear now why it may actually be a great match

00:00:23: Our Guest today is hands tybor who has a rich history in supply chain Tech and is now the managing director of Google Cloud supply chain and Manufacturing capabilities this episode is hosted by Marco prüglmeier.

00:00:34: Before we get started a quick thanks to our supporters great orange great our jaw tomates Warehouse operations through a combination of AI software and autonomous mobile robots.

00:00:43: Ground systems are in place at some very prominent companies such as Ikea or the Danish household goods and Furniture retailer use

00:00:49: if you're looking to get your warehouse and fulfillment operations to the next level with the help of autonomous robots and automation you should definitely have great orange on your list

00:00:57: check them out at grey orange.com

00:01:00: all right and now let's move on to the show with hunt style boa hosted by Michael prüglmeier enjoy hello Hans are welcome to the logistics tribe.

00:01:10: Hi Marco thanks for having me it's good that we have you here on the show.

00:01:14: Because it's a dedicated Logistics show and I think there are a lot of people out there.

00:01:20: Interested in what you are doing and what you are telling us the next half an hour or so

00:01:25: but just to jump in right now I would like to ask you to give a short introduction and how did you get to the Silicon Valley and to Google and what did you do before.

00:01:35: And I think you're coming from Austria or originally right I come from Oscar that's very correct actually I'm right now in Australia and I'm.

00:01:42: Taking this recording you from from Austria so yes I.

00:01:47: My background is very much my entire life I was working with companies around the world in all different Industries

00:01:56: on the topic of supply-chain on the topic of manufacturing Logistics so.

00:02:01: That's pretty much my my background and I did that in many different forms and Fashions I started my career at a Manufacturing Company actually and really worked in the manufacturing companies that in the strategy function and then I joined sap

00:02:15: and that was there for 20 years and in these 20 years I really had a chance to get to know all sizes of companies and all companies around the world in all different Industries and.

00:02:27: Really covered all the time the topic of supply chain manufacturing product lifecycle management asset management and every related kind of

00:02:36: about two years ago I tried to Google and Google Cloud to be precise and now the managing director for the supply chain Manufacturing.

00:02:45: Cloud and I'm very happy actually what we can do at Google and how we can support companies it's very much a data-driven world we're living in and.

00:02:55: Of course Google actually stands for data and making data accessible universally for companies for everyone who is.

00:03:03: Working in this context and I think that's the task right now everyone asked for visibility everyone needs more information.

00:03:12: But more information is not always good so you also need intelligence that they have for the data combined with artificial intelligence was exactly which kind of attracted me why I joined

00:03:22: control so it seems that you can now apply everything that you learned at sap regarding Logistics and so on and supply chain.

00:03:30: Um to the data-driven world of Google and use the tools of Google to apply them on the supply chain that's absolutely correct right so.

00:03:39: I mean my career at sap was was super.

00:03:43: Good I really liked it I really enjoyed it a lot we were working on improving the efficiency of companies we working on.

00:03:50: Introducing optimization algorithms really introducing transactional environment bringing Master data together and then so a lot of this.

00:03:58: Really hard problems so we solved there but I think actually.

00:04:02: Wherefore we can do so make so much difference at Google cloud is really focusing on data and really bringing data together from all kinds of different systems and.

00:04:11: Really not just providing data in the context of the Enterprise but also include data which are out there in the world which described the world right so.

00:04:20: One of the key things but I always struggled with when when people ask for supply chain visibility is.

00:04:27: Well they have the data from the Enterprise from the SAP systems from the Erp systems but what they're missing is

00:04:33: all information like what is the weather what is the traffic roads to climate what are the health issues right now and everything which describes it for a disruption.

00:04:42: All these data sets are typically ignored and this is where could really make a difference in bringing this information together to with the Enterprise information with.

00:04:51: We provide complete end-to-end visibility for supply chain professionals

00:04:56: yeah it seems quite logical let's dive into that topic a little bit deeper I read something up loud a program name.

00:05:03: Supply chain twin and I think that's only one part of what you're doing actually in the logistics world right now but let's start with this one because I think that's kind of.

00:05:13: The flagship

00:05:13: for love to think about this I mean when I started at Google do we two years ago and then really defined how can we actually help companies in the area of supply chain again it was really the topic of visibility which came to mind and really making sure that

00:05:30: you bring data data sets together from everywhere around the world in order to really make sure that

00:05:36: company gets this visibility so that was kind of the starting point the second piece to the puzzle is the flexibility so it's not just invisibility companies are asking for but also more flexibility because world is changing so

00:05:49: dramatically fast and with all these different disruptions companies need to adjust their systems and their processes

00:05:56: and their decision processes actually very very fast so

00:05:59: more flexibility is needed and the last point which we also want to really address is the Innovation topic really making

00:06:07: and thinking about problems differently

00:06:09: and really using machine learning artificial intelligent processes in the context of this data we bring together in order to drive better outcomes right so that's kind of when we started thinking of

00:06:21: how can we really make a difference from a Google perspective and.

00:06:25: This is what we started to do and then our strategy is very very simple and straightforward we said First Foundation is that we

00:06:33: that really describe the supply chain World which we call the supply chain to when it should it's a digital representation of the physical supply chain right so that's in one word what it is but we do there is actually.

00:06:44: That we have three segments of datasets the first segment is what we call the private segment this describes the Erp data right so this would be the forecast.

00:06:53: Capacity is all the information about orders and everything actually reject which is typically handled in and.

00:07:01: Erp environment the second segment is what we described is a community.

00:07:06: This is actually all the data which is shared between business partners so think about track and Trace data think about what others think about sustainability.

00:07:15: So they do which is typically shared between companies.

00:07:19: We have therefore created a community segment in this election to win it could be either your suppliers or your custody has a or business partners you have.

00:07:29: Or sizes and that's that's very important we want to really make it simple and easy to provide this connectivity.

00:07:35: Which is a big problem right now connectivity well it's yes still the EDI kind of topic.

00:07:41: We need to overcome that and make it much easier for companies to share information in a trusted environment and maybe it's not necessarily actually really exchanging data but much more effort referring to the

00:07:54: so that's another discussion I think when we want to Deep dive but that's the community segment and then the third segment which is very important is the public data segment and this public data segment.

00:08:04: Really includes now the information which I described before like it comes from climate information to better information traffic information.

00:08:11: They're whatever pandemic like the Health crisis could type of information and Annette so whatever describes the world actually want to bring together in this in this public

00:08:22: and all three together a really describing this supply chain twin so once we have this Foundation we have a data model on top.

00:08:29: Now we can really apply the different use cases so the business processes and this is what we call the supply chain pulls where we have 10 analytical applications or Solutions

00:08:39: which allow companies to really analyze it but we do here is actually providing templates and which are being adopted by customers in their specific way when they start implementation the third part of.

00:08:52: Strategies then artificial intelligence and really using AI ml algorithms and apply them and we have started to really

00:09:01: or use them according to the let's say end-to-end value chain where we start on the demand side then address the inventory we address the.

00:09:10: Delivery site of the Fulfillment aspect and also the sustainability aspect so these four kind of categories we've been we use in order to

00:09:19: the con this AI Solutions and the fourth very very important part of the strategy is we work with Partners we are not creating applications.

00:09:28: So we actually booked partners and this means we are working with the sap is of this world will be working with the under plans and Manhattan's and an end of this world.

00:09:37: And really make sure that the system landscaper customer has can be applied right so we don't want to replace.

00:09:45: We actually want to go argument the existing landscape and really provide with that the benefit and the efficiency which is needed also interesting hands and you mentioned already the connectivity which is always some are hard to achieve right

00:10:00: because you got the different systems and you have.

00:10:04: Connect in different ways and then the connection changes in some way or the application and then you have to redo the connection and things like that.

00:10:14: How do you do that with the supply chain two and then the user right right so that's that's one of the most important piece that we make it easy for everyone to connect and so there are different ways to do that right

00:10:27: um of course it could be we also provide the possibility to have a pi or EDI integration right so we Leverage The Good Cloud platform and Technology.

00:10:37: There's one important part of the technology which is called a PG which allows us to really use the apis and and create apis and with that make the connectivity work between business partners typically this is done

00:10:51: between large Enterprises I want to say there's a second way how to share data and share information we have the possibility to do that

00:10:59: right away in our data warehouse right so we have bigquery and within the query we can say I want to share any secure way only this data set with my business partner the business partner can access it also in a secure way.

00:11:13: Again actually also add data to a.

00:11:16: The difference is there's no standard defined with apis and Edis you have a standard definition right so you know exactly what kind of data you can expect.

00:11:25: And the second way when you transfer data or share data just in the data where was you actually do that and trust that the business partner understands what kind of data you share.

00:11:35: The Third Way which I actually think is very very underestimated is the way how we can connect the data warehouse or bigquery also with emails

00:11:44: no so we use Gmail and generate extra energy males with data and with that really enabling everyone to connect and their interactive maps their interactive data sets which can be shared with with business partners and you can also add the text and we actually translate back and forth between structured and unstructured information.

00:12:04: In this data sets right so three ways where we can

00:12:08: Gia and connect actually business partners and I think actually there will be more coming right so there's a lot of discussion orders in terms of networks in different Industries think about Cortana X when it comes to auto mode

00:12:20: let's really think about other Industries there's a lot of effort underway how companies can share information anymore

00:12:29: transparent way and easy way

00:12:32: so that everyone knows actually what kind of information that can expect I'm interested about the third way that you mentioned with the email protocol let's say how does that work is it an automated email generated out of

00:12:46: bigquery or.

00:12:47: How can I imagine that you can imagine it exactly like that right so we have work space and in Gmail is part of it and so we can actually really translate the information from

00:12:57: obituary from gcp and and transform it into the email and from the email you still have.

00:13:04: Possibility to make it interactive so if you share actually route for a truck and then we only have small carriers and

00:13:12: maybe not this sophisticated it landscape so maybe that's the best way how you can she actually this routing information and you can keep this up.

00:13:22: Just updating the deer out in the email and then you reference back right so you get an email back and you can refer back and there's the translation between structured unstructured information.

00:13:32: So that works quite nicely and like a man actually it's a little bit underestimated and people hesitate to call it as really a collective collaboration

00:13:41: but I would actually argue it is very much a collaboration which allows computer people actually owned companies to make an easy connection between each

00:13:50: and it seems to be very flexible right and and that's also what you mentioned at the beginning visibility and flexibility so that you easily can connect also smaller Partners to the to the whole supply chain

00:14:03: transparency let's assume that we have connected all the data and of course the public data is.

00:14:10: Anyway Google is the star in in this category how does the outcome look like for the company using it is it like a supply chain vision board where I see where is my stuff which one is critical where do I have

00:14:26: shortages where do I have to react because there are two things that come to my mind hunts the Oneness.

00:14:34: That sometimes we have too much data then people cannot.

00:14:38: Can it really work with it anymore because it's just get are getting over flooded with data and the other one is how is the data is structured so that everyone can easily work with it and and take out the gains of it are you using AI also on top

00:14:53: of that for certain procedures on how does this work yeah absolutely right so so the way it works is

00:15:00: I would say straight forward right so what we did and what we are doing is we have a data model which can be expanded right so we are not defining and then kind of

00:15:10: if you fix data model it's a flexible data model which can be extended by every company then on top of it we actually with this data modeler able to.

00:15:20: Really create all the different use cases how we call it or address the business processes for that we use looker another application

00:15:29: Google is offering analytical tools we offering there

00:15:33: and visit is Google and look at dashboards a company can exactly do what you described creating these dashboards creating

00:15:41: these control centers and with that really see what's going on of course there's a lot of definition necessary so it's not only a data model you also need to have a semantic layer.

00:15:50: In between where you describe the business rules what Ben is an alert and alert and these kind of.

00:15:57: Definition is done in that in the semantic model by using Luca the analytic.

00:16:04: But we are open here right so this is also very important it's a very open environment it's not a closed environment which means first of all we support the.

00:16:13: Hybrid Cloud environments we support multiple Cloud environments and on top of it also and analytic tools we support actually multiple

00:16:21: analytics tools but of course as Google we offering this look at the analytics tools which allow companies to really describe what I mentioned before they control

00:16:31: the towers control centers and so on but it's not just the control Towers control centers right it's really very much business processes like Adam and sending process or inventory optimization business process where

00:16:45: companies want to understand what is made of risk level on the supply think about manufacturing and all the disruptions.

00:16:52: And easy is the microchip issue where there's a lot of shortages and so.

00:16:58: You need to understand what is the risk level with my components it's not just the availability but also the risk level to it.

00:17:04: And this is what you need to take into account nowadays when you do inventory optimization

00:17:09: it's not just the traditional my demand variability Supply variability and then I calculate what is the optimal inventory situation on the multi economic environment.

00:17:19: But I need to take the risk level into account as well and that's very important

00:17:23: his by side as well as on the on the on the demand side and so these are the things which really very important when we then talked about what kind of machine learning artificial intelligence algorithms we are putting on top of it

00:17:37: But Here We Go From the forecasting side to the inventory to the Fulfillment Transportation side and just on Transportation because.

00:17:45: Of the changing demand how consumers are buying products of course e-commerce is a huge topic and.

00:17:53: They call Michelle is ever-increasing and fast increasing and accelerating.

00:17:58: Then before and so for that we will be really focusing on last-mile last-mile shipment and there we have integrated.

00:18:05: And introduced two solutions actually bond together with Google Maps.

00:18:10: Where we have last-mile shipment Services which ensure that the addresses which are and consumers typing in

00:18:18: entered correctly that we can share a little information to the carriers that the analytical tools and it's the execution of the.

00:18:26: Truck actually when the truck needs to drive is this taking place in can be tracked and traced so this is kind of the Google Maps services.

00:18:34: And then on the Google Cloud what we did there is really focused on creating an artificial intelligent algorithm which we call Cloud Fleet routing which is really the planning process right.

00:18:44: Google Maps is focusing on the execution of one truck drives and and foot needs to go from point A to point B and dusted in a very efficient way and most sustainable way.

00:18:54: Then on the cloud Fleet routing we plan all the Vans or trucks company is and.

00:19:01: Did thousands of trucks and cry they optimized route and do that in a very very fast way so we can do that almost

00:19:07: real time when it comes to simple environments when it comes to a very big environment still it's super fast and how we can calculate.

00:19:15: Not the best routes and then is that deal with disruptions during the day these are just examples right how we

00:19:22: yes using AI technology in the context of the data and in the context of Google Shout

00:19:28: yeah you just mentioned to basically new solutions to the cloud Fleet routing and The Last Mile Fleet solution

00:19:37: Auntie's then interconnected to the supply chain twin or

00:19:42: is it just different tools and you can use them together they work together but you don't have to use them.

00:19:48: Combine exactly so you don't have to but you can

00:19:52: right so it's almost built in a way you can use the supply chain to end without anything else without analytic tools without a i tools and so on

00:20:01: you can use the AI tools which every true and the applications which we just discussed so the cloud regrouting also without the twin and you can use it with the twin

00:20:10: so that's how we defined it and the reason is companies need flexibility

00:20:15: and his ability is not just in the business process but also on the it side some companies have already Maps Tools in place and they don't want to replace that just in order to.

00:20:27: Cloud with routing on the other side maybe they use Google Maps and have already.

00:20:32: Another Fleet routing optimizations that we want to provide the flexibility and provide the best option for the companies and therefore yes it works together but you can run it

00:20:43: basically just to understand a little bit better on how much the public data plays into that game so I imagine if I have a factory and I have 500

00:20:55: Supply us all over the world connected to the supply chain twin and then there is an earthquake in somewhere in Mexico and.

00:21:04: Close to one of my suppliers would I get an alert

00:21:08: yeah it depends on what kind of data sets you you include and your supply chain Trend and yes so if you do that in this way yes you get an alert and it's not just another try

00:21:19: but think about it in a different way right so it's not just that you use this data for.

00:21:26: Let's say disruptions which are called going on right now you can use that also more for the planning processes and what for Detective

00:21:35: hit / strategic planning processes and give an example think about climate and climate crisis and think about the drought.

00:21:43: In California and many other parts of this world there's a real issue with not enough rain and the crowd gets more severe.

00:21:52: Every year and this is of course a huge impact.

00:21:55: In the vegetable in aquaculture production right and agriculture in California is very big almost vegetables actually

00:22:03: produced in the US are produced and

00:22:06: in California so now you have a dependency right and now you want to understand what is the impact which Farm actually get what kind of rain during during the next season and what is the climate situation overall so we use Google Earth engine

00:22:21: need to get the satellite images and the satellite information then we overlaid it with very Farms are what kind of products they are growing there

00:22:30: and then we actually applied the actual situation and this actually gives us a trend right so this actually lets us understand

00:22:38: what kind of products are will be at high risk in which part of this world so that's just an easy example how use climate information and agriculture world but you can also

00:22:49: look at similar processes like a ship is stuck in the suicide and now what is the disruption actually and then what is the how can I solve that right at this mortise tactical problems you can look at

00:23:04: with this type of information where you have public data sets combined with the operational.

00:23:10: And the cloud Fleet routing API that you have what I read about it is that it's very good in ETA prediction so estimating the arrival time very good assuming probably also taking traffic.

00:23:24: Data into account and and all that and I read about that you're using something called super segments to even be able to

00:23:32: to calculate that can you talk to us three sentences about that because that sounds very interesting for Logistics

00:23:39: for the logistics of Health yes it is again right so they're based on the data sets and based on the variables we can include in the routing solution and it's correct.

00:23:49: The calculated etas that are taking into account actual situation in combination with also more historic information right it's not just.

00:24:00: Actual situation and real

00:24:03: starting from scratch again and again it's really based on learning and that's I think one of the key elements how you can calculate and come up with

00:24:12: improved etas over time we even go further than that right and the plans are.

00:24:18: That we do have more and more track constraints in with Google Maps covered and that means that you really have all the streets.

00:24:29: Cupboard where you can drive is a truck and that's a huge difference if you have these Maps that's a big big difference

00:24:37: and how we can calculate ETA because then you understand that some trucks cannot drive on all the streets and they need to actually follow certain other routes and if you can optimize that that's really a big big difference so we're going in

00:24:52: multiple directions here in order to improve the the ETA for the.

00:24:57: And deficiency actually for the route swim you mentioned already that you are working with partners and

00:25:04: two questions on that the first one is are the solutions that we were talking about

00:25:09: these open for everyone that is using the Google cloud or do you have to pay for it and it's an extra charge or what's the business model behind it.

00:25:20: And the second question will be there are a lot of startups in this area also do they have to be afraid now because

00:25:27: Google is taking over now nobody needs to be afraid like I said it's a very open environment our interest is actually to really make a big difference with these type of solutions and also allow Partners to use them.

00:25:40: Right so that means on the example of cloud feed routing we work with a number of software companies where they embed the AI algorithm into their.

00:25:50: And that's exactly what we want so

00:25:52: let's use that technology from a pricing model the AI artificial intelligence applications typically I have a value-based

00:26:01: pricing but the majority of our Solutions like is a virgin twin is actually only based on consumption

00:26:07: it's a day it's not a traditional kind of charge the use that but for apis or a is it's typically value-based pricing and the rest is consumption

00:26:17: very interesting everything for the logistics World Hans and I think very well structure because you are actually using a lot of what is already there at Google right you mentioned using Loco for the.

00:26:31: Basically the pulse dashboard I assume that you are using vertex AI to do the machine learning stuff at the AI stuff

00:26:40: and also if you need a data warehouse then it's all connected to bigquery so I think that's that's really

00:26:47: genius yeah I mean that's the that's the key right at the reason why we were very fast actually and we were able to create this type of solutions very fast was that the technology is there and it's already part of Google Cloud

00:27:01: platform it has been there since the beginning and therefore we didn't need to reinvent those so we can leverage but we needed to

00:27:08: bring it into the context of supply chain context of logistics context of manufacturing and this is exactly what we are doing there right so and how we create this solutions and today I Solutions on this

00:27:21: yeah very clear very clear makes really sense in one sentence you also mentioned our sustainability I know that there has been a study on sustainability I think

00:27:31: quite recently I don't know several months ago and is there also something where you can actually get the sustainability

00:27:40: kpis for your supply chain yeah I mean sustainability is a huge topic right and I

00:27:46: just recognize that I only mentioned it once so far in this in this talk and typically sustainability is being mentioned every second sentence and so let's talk a little bit more on sustainability.

00:27:59: It is a huge topic and then this very much related to supply chain sustainability is very much driven and impacted by Supply

00:28:07: and we typically really focus on three different aspects the first one is really round.

00:28:13: Their carbon footprint right so the greenhouse gas emissions the second is really to focus on.

00:28:20: The circle economy so bring in the Recycled return reuse processes and the third one is really around the social.

00:28:29: X right so this is how we kind of categorize the sustainability work and also here it's so super important when you think.

00:28:38: Let's go 1 2 and 3 data and now you want to actually get more.

00:28:42: Precise and more correct scope three data this is a huge focus of ours how we can do that and how we can help companies to do that look she's these companies really.

00:28:52: The possibility to provide this data more accurately also to their customers today to the shippers and and I think that's a huge topic which will.

00:29:02: Go on and continue actually in the next coming months and years how we can become better and better on that but it is for us a huge Focus as you can easily imagine and therefore we also introduced this survey and then really wanted to understand.

00:29:17: In this context what were companies are thinking and what they're doing and I'm in the service of this study.

00:29:23: We looked at different aspects and we're very straightforward simple questions on how respondents.

00:29:34: Yeah you saying or do they have an effort I'm going for ESG so then mental and social and sustainability.

00:29:44: Environment as packed sand and so

00:29:47: if you ask companies do you have that as a priority of your organization is sustainability a priority for organization and more than two-thirds would answer yes right so it varies really clear yes and then you would ask them.

00:30:01: How would you rate actually your company's sustainability effort

00:30:06: again most companies would answer we have quite good sustainability

00:30:13: targets and also processes in place and we are getting better better so More than 70% in the supply chain manufacturing world would say we have actually above average great sustainability efforts then you ask

00:30:27: fishing right where that is

00:30:29: can you measure it that's always the problem right quite right so then you ask the question can you really measure it and this is where actually only ten percent would actually say well we have actually the tools in place in order to measure it

00:30:41: right so that's kind of where the uncertainty comes in right so people believe in sustainability makes a big difference the older believe their companies have made the right choices and their programs.

00:30:52: Can you measure it this is where people struggle.

00:30:55: And then there's the uncertainty what is the real impact of the data which we generate correct or not right so in this is I think exactly where Google can make a big difference

00:31:05: maybe can make sure and working with.

00:31:07: Companies that is co Bond 23 data I'm were correct that you can measure actually the impact and the expect right so that's why it is a huge draw

00:31:15: cross if we take a time frame of let's say 10 years around about how do you envision because.

00:31:24: That's quite my hobby you know once the the future of logistics and how does everything evolve and so on.

00:31:31: How do you envision Supply chains Logistics operations in the future a very good question and I'm also thinking about this question a lot and you know.

00:31:43: Looking in this industry now for more than.

00:31:46: Two decades 25 years and I've seen actually an evolution of supply chain processes over this time frame and and even before right so and this is quite interesting when you look into it.

00:32:00: What happened and why things are as they are and why are disruptions going on at a pace where they have never been before and.

00:32:09: I'm a strong believer that we are not going back to supply chain processes as we have seen them before the pandemic I believe actually we are in the middle of a transition and there too.

00:32:20: Tribe us which are driving this transition the one driver is the dependencies of companies want to be less and less dependent from

00:32:29: um let's say events which are being coerced by something around the world and it would.

00:32:39: They stood the need and the purpose to reduce risk and with that.

00:32:45: It drives more and more into a regionalization and the second Big Driver is sustainability and this is very much a society driven aspect of our society doesn't want to have

00:32:57: yeah they carbon footprint which we which is being caused but being product being sent around the world so it's both actually go.

00:33:06: More in this direction that companies start to think about regionalization of their business I call it the post Outsourcing world

00:33:14: M and this post Outsourcing world.

00:33:16: Is really what it exactly means you don't go to China anymore for cheap labor and leverage cheap labor you go to China in order to sell the products which you produce there.

00:33:26: And this is I think a very different way of thinking which we need to understand and it's not just try not it's just an example which everyone immediately understands.

00:33:36: But I'm very much believe that this transition ended his post Outsourcing world is regionalization less dependencies is actually driving

00:33:46: and you set up and how Supply chains will work what I'm not saying is that global trade will go away actually no not at all but you will produce more locally for the local market.

00:33:57: Makes absolutely no sense and only source those goods from far away where the region has the resources for it right where you have no other

00:34:07: possibility basically and where it makes sense from a value stream thinking absolutely

00:34:13: hey absolutely and then what it requires though is the highest degree of automation right so only if you really are able to manufacture products with a high degree of automation

00:34:25: and then you have a cost structure which allows you to really distribute and then sell products

00:34:31: in the different markets right so thank you this goes meant so this High degree of automation the visibility of data

00:34:40: but then also less depends either risk reduced risk to focus on sustainability.

00:34:46: All kind of point to a Direction Where We see this regionalization / post Outsourcing world

00:34:52: so more robots and Logistics very actually see the already quite heavily entering are you also on the robotic side doing something at Google

00:35:04: that's actually in the broader context of alphabet right so then parent company of

00:35:09: will there are also initiatives on robotics but I'm not directly involved so I can really dance.

00:35:16: Okay but yes robotics is huge and we work with quite a number of Partners as well here.

00:35:22: Because you have to automation individual house processes and it's the conveyor belt robotics whatever have and.

00:35:31: I think if you look at their houses there is a new strategy Warehouse as a service what a pop-up their house is in order

00:35:40: the fulfill the demand on the spot so all these kind of things need to be covered in an efficient way.

00:35:47: Um and so here we work is for example with the visit partner like demotic think he's a German company or a US company actually but.

00:35:58: Phil is part of key on and so we're working with them very closely on this aspect and Automation in warehouses how we can be efficient and Logistics process

00:36:09: all right and the next steps for the Google cloud in regards of supply chain

00:36:15: the next steps are that we already discussed now will be deployed to hundreds and thousands of customers hopefully very soon that.

00:36:25: Really work and learn from this customers how they want to leverage the data in a better way that we really focus on Innovation innovation in the sense of

00:36:35: really driving efficiency having all these aspects in mind in terms of sustainability as well not just cost and with that.

00:36:43: Really creating an impact in the world and a better future.

00:36:48: I think that's a very good closing word hunt thank you very much for this talk it was highly interesting for everyone working in logistics so

00:36:58: thank you very much for Dad and for interrupting your holidays in Austria enjoy those days back home thank you thank you very much and thank you for having me thanks

00:37:08: all right that was the logistics try podcast episode with hunts tybor from Google Cloud hope you enjoyed Today's show if so please make sure to subscribe to the podcast so you don't miss any of the future episodes I'm boss felgendreher until next time.

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