Genius of Things: golden state foods transforms the supply chain with IoT and blockchain

Genius of Things: golden state foods transforms the supply chain with IoT and blockchain


Thank you for the warm introduction, I’m pleased
to be with you all today. Many of you in the room have been to a Gartner
supply chain or Gartner IT conference in the last two years or you’ve had associates in
your organizations attend. And you’ve heard a phrase that they’ve captured
called bimodal and what they’re referring to those who haven’t heard it, is challenges
we have as business leaders to both simultaneously take our legacy 20th century systems, upgrade
them, keep them viable and competitive, and at the same time have a mode of our operation
which looks at innovation and transformation. And what I’m going to share with you today
is a little bit about how we at Golden State Foods have partnered with IBM to take on that
innovation leg of our strategic imperatives. First, let me give you a little bit of overview
about Golden State Foods to put it in perspective. We as Harriet said global diversified supplier,
we have a few of our customers in the room today. Very pleased with our journey with IBM. You think of IBM, you think of, I do, big
systems. And I go back to the 360 days, and three‑ring
binders with requirements definitions. And I tell you, the last year that we’ve been
working on Watson IoT and blockchain, it’s a new IBM. It’s a new day. The pace is accelerated and the engagement
is at a much more here now six to eight week chunk and fits within our footprint because
we can scale within IBM’s global reach. To give you a sense of how it fits in our
operational excellence DNA, we have manufacturing around the globe and in this one category
we have liquid products, condiments and sauces and syrups. We have, as Harriet mentioned, hamburger patties
and protein products. We have produce set of operations, we have
a thousand acres in China where we grow produce and teach Chinese farmers how to improve the
quality of their produce. We have aseptic high tech high temperature
processing for shakes and syrups. So, we have a wide range of manufacturing
products and then we have the logistics services where 100 percent of the contents of some
of these big brands get put in our warehouse delivered to the back of the restaurant in
the middle of the night. We’re a 70 year old company. Values‑based, very proud we want to align
with companies that have a similar philosophy and culture. We have over 80 percent of our associates
that contribute to our foundation then give back to the communities for children in the
areas around our facilities. Let me tell you a little bit about how we
bridged in this bimodal strategy. You know, in your day job, most of the time
you’re thinking about large, complex movements forward in a big company. It’s just the nature of how you interact internally
and with your customers. What we’ve encouraged our leaders to do is
to think really big, but chunk it up to start small and go fast. It’s hard to do that simultaneously with the
big projects. So, what we decided to do was partner with
IBM and I’m going to share with you three pilots we have underway in both Watson IoT
and blockchain. And what we like the most about this is the
combination of both the short‑term possibilities, but then if these pilots are successful and
if the think big vision holds true, then we’re already partnered with somebody that has global
scale and in my view, most importantly, has a deep history in security and transaction
processing for major corporations. So, we know that what we’re going to take
forward has scalability to it, partnered with IBM. I think the premise that you can go fast is
something that I’ve seen a change in IBM this past 18 months and a cadence around let’s
get it done, let’s chunk it into those six to eight weeks and then let’s go forward. So, let me share with you three of our projects. The first is what we refer to ‑‑ all right,
let’s let it ‑‑ let’s get it going here. The first is what we refer to as fleet management
driver safety. We have lots of devices out there already. We have GPS data. We have temperature IoT data. We have drive cam in each cab that looks at
video forward, video back. All these sensor inputs. But our drivers are sometimes 80 percent of
the time they’re delivering in the middle of the night. We’re working with IBM for wearable devices
be able to to talk to Watson. We’re overlaying weather and traffic information
from Watson into the decision tree of how our drivers increase the success they have
when they make deliveries. And then longer term, help us on decision
making and trans late that more into a command center, a service center for our drivers that’s
enabled by Watson to get to the answers quicker, to more precisely. That’s a medium term vision. Imagine the possibilities if we invest all
this time with Watson and we get these benefits in the short term. Long term, now Watson knows our business. And when autonomous vehicles come along, what
a great position to be in to have the IoT information and the routing information and
the decision logic already in Watson and now we’re better positioned to handle autonomous
vehicles in five, six, years whenever they come along. We’re really excited about this project. In another area, pilot we have with connected
restaurant. So, imagine each one of these houses is a
restaurant. Inside the restaurant, our customers are challenging
us to be more innovative, to drive the personnel out of the back of the restaurant up to the
front of the counter. So, what can we do for inventory in the back,
for better predictability on maintenance, for HVAC management, et cetera? Last month we started small. We’ve got two restaurants. We’ve got about 25 sensors that IBM worked
with us to install in two restaurants. We’re gathering data. We’re applying predictive analytics to it
and the early results are promising. Now you have a tool that helps the store personnel,
if you’re a regional manager you have a healthier restaurant, healthier system available through
a mapping network with drop‑down capability. Lastly, and I think most game changing for
us, is the intersection of IoT, Watson IoT and blockchain. Global food safety is obviously paramount
to us as a human society. As we go forward and say how do we take these
islands of information and islands of process that connect the farm all the way to the fork,
is there a way to use blockchain to have a tighter integration of the handshake between
the transactions, between the data? And we believe the answer is yes. On top of that, can we layer in RFID for track
and trace at the case level and can we put temperature data for temperature sensitive
products. We have a pilot underway to do that for one
product and I want to compliment Walmart for working with IBM to get this started for pork
in China and mangoes and they’ve proven it out and IBM is working on a platform. We’re working with IBM on an ecosystem concept
with 11 other companies, and the idea here is that the world will transform into a more
of a cloud‑based connectivity and we need to drive that scale on a shared economy basis. Walmart and Golden State Foods are proud to
be part of that. And we think others of you in the room will
have major shifts occur in your industry based on the concept of shared economy and ecosystem. And it’s better to get started now with small
pilots so you know how to play in the game and in our belief partnering with IBM was
a great path to get us going and it will be a path for success. So, with that I want to thank you for your
time today and welcome questions as I’m available throughout the day. Thank you very much.

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