Logistics 4.0 and smart supply chain management in Industry 4.0


Logistiek 4.0 en slim supply chain management in Industrie 4.0

Logistiek 4.0 en Supply Chain Management 4.0 of slim supply chain management hebben betrekking op de verschillende aspecten van end-to-end logistiek en supply chain management in de context van Industry 4.0, het internet der dingen, cyber-fysieke systemen, opkomende technologieën, geavanceerde data-analyse en (semi-) autonome beslissingen mogelijk gemaakt door AI.

Op onze Industry 4.0- pagina hebben we vermeld dat Industry 4.0 meer is dan alleen de slimme fabriek of de implementatie van technologieën. Op deze pagina bekijken we de essentiële elementen van slimme logistiek, logistiek management en supply chain management (SCM) in Industrie 4.0, vaak Logistiek 4.0 genoemd.

Industrie 4.0 verandert de productielogistiek en transformeert de eisen met betrekking tot logistieke organisaties

Als u meer nodig hebt dan een overzicht van de essentiële elementen van de supply chain en logistiek in het tijdperk van Industrial IoT , autonome applicaties en cyber-fysieke systemen, wilt u misschien onze artikelen over het gebruik van robots en cobots in de logistiek bekijken , de rol en evoluties van IoT (Internet of Things) , cloud en geavanceerde analyses in verbonden logistiek of lees eerst over digitale transformatie in transport en logistiek .

Het is duidelijk dat de verschillende technologieën, evoluties en uitdagingen / oplossingen in deze artikelen een rol spelen bij het bekijken van logistiek 4.0, slim supply chain management en de digitale supply chain zoals hier. Overweeg ze dus deel uit te maken van dit supply chain- en logistieke artikel.

Supply chain en logistiek management in industriële transformatie

Logistics 4.0 – the crucial aspect of autonomous decisions and applications

Just as Industry 4.0 is a holistic given with a (partial) transfer of autonomy, intelligence and autonomous decisions to machines and to the edge, supply chain and logistics in Industry 4.0 is very similar, albeit with, on top of the overlaps, different applications, technologies, human and business aspects and elements.

There are many types of logistics and there are many definitions of logistics, ranging from the organization, planning and management of something complex, such as the logistics of setting up an event, to activities whereby many moving parts and processes are involved. It’s in the latter sense of moving things (goods, assets, materials, data and more) around in a business, supply chain and Industry 4.0 context that we look at logistics here.

Digitization and digitalization lead to the rise of 4PL providers and disruption is expected as the shifting relationships in logistics and the technology-driven capabilities enable new players to enter the 4PL market

When we see logistics as essentially getting things from A to Z with the many intermediary steps and the components of the supply chain and intelligent and efficient movement across all these different steps in a holistic way and add the aspect of autonomy to it we quickly see what types of applications we really talk about: from driverless transportation to intelligent containers, smart warehousing, smart ports, smart shelves to the human and information exchange in all possible logistical chains and contexts. A major game-changer in this regard is also blockchain as we’ll see further with myriad use cases for the distributed ledger technology in transportation, smart ports, cross-border maritime shipping, retail, the list is long.

You can imagine that there are several other components in the supply chain and that without a digital supply chain Logistics 4.0 simply isn’t possible. You can also imagine that, just as is the case in Industry 4.0 the Industrial IoT plays a key role, as does a thorough understanding of all data and insights and actionable intelligence for supply chain management.

Logistics 4.0 and Supply Chain 4.0 – from data and autonomous decisions to intelligence and actions

The latter aspect of data, turned into actionable intelligence and ultimately (autonomous, semi-autonomous and human) actions is key to smart supply chain management and logistics in Industry 4.0 and industrial transformation, whereby we looked in depth at several data-intensive elements such as vertical and horizontal integration.

The road ahead is one of more autonomy across various logistics components such as supply chain logistics, inbound logistics, warehouse management, intralogistics or line feeding, outbound logistics and logistics routing

It is also important to bring the Industrial Data Space in mind again as a way to enable a secure data exchange between its participants, while at the same time ensuring data sovereignty for the participating data owners. When many moving parts and many processes are involved, the same goes for the data, also in logistics.

The Industrial Data Space is just one approach, heavily promoted by the people behind Industrie 4.0. All major players who are involved in the future of logistics have already at the very least looked at the potential of blockchain technology in supply chain management and logistics of the hyper-connected and (semi-)autonomous kind. If they haven’t yet they will soon as the combination of blockchain and IoT, a core component of Logistics 4.0 is accelerating fast. And there certainly are blockchain initiatives in logistics. Just think about the BiTA in the US (Blockchain in Trucking Alliance). Blockchain initiatives in logistics are popping up fast, as are important consortiums (e.g. Maersk and IBM). Also on more local levels there are ample initiatives as this smart port case whereby blockchain is used in the port of Antwerp shows.

While we increasingly speak of the digitization and digitalization of logistics and supply chains with the IoT (enabling multiple logistics use case and, along with other technologies such as cloud computing and edge computing or fog computing if you prefer, bringing intelligence to the edge across logistics), digital supply chains and (semi-)autonomous decisions and logistical assets such as self-driving trucks and so forth, the role of people in supply chain management is far from over.

SCM and Logistics 4.0 – people and the human element in supply chain management transformation

Regardless of how autonomous we want systems to be, there remains an important human element whereby supply chain management is changing in the decentralizing context of Industry 4.0 but nevertheless needs people to plan and take actions as not all actions can be or should be automated.

To meet the demands and decentralization behind Industry 4.0, however, an automated, intelligent and increasingly autonomous flow of assets, goods, materials and information between the point of origin and the point of consumption and the various points in-between is key.

With warehouse management systems, intelligent containers and driverless transportation systems, intralogistics is increasingly supporting intelligent production. However, separate technical solutions remain widespread (Hannover Messe)

It might sound contradictory but it makes supply chain management more central in this connected and decentralizing movement in industrial transformation and the digital transformation of logistics. As intelligence and autonomy move to digital platforms and the edge, the decisions and tasks of supply chain management become key since there is far more insight and monitoring to decide on overall efficiency.

Additional core tasks of smart logistics and supply chain management in the Industry 4.0 context of logistics then become:
  • Adding the right level of autonomy and intelligence to logistics in order to make logistics as such more intelligent but mainly to make it more efficient, effective, connected and agile/flexible in order to meet the needs of a far more connected economy and an increasingly real-time economy.
  • Starting from the goals of industrial transformation in this holistic vision of which logistics and supply chains are part, strike the right balance between self-organizing and (semi-)autonomous systems and human planning, with also a focus on action and intelligence whereby the collaboration between man and machine (e.g. cobots in warehousing) and the end goals in function of changing ecosystem demands are crucial.
  • Transforming the ways of working and managing in line with Industry 4.0 deployments, realities and aspects such as data analytics, information ecosystems, required skillsets to manage it all and take the right decision in a changing environment of decentralization, fast decision making, the development of real-time capabilities and agility with a shift from centralized organizational and planning approaches to on-demand planning and managing uncertainty (core in digital transformation overall) in far less pre-determined logistical scenarios.

The road ahead for Logistics 4.0 and Supply Chain 4.0

In the end the traditional pyramids we are used to see in supply chain management and logistics are poised to be disrupted. While we aren’t fully in that stage yet and most organizations start to explore the possibilities of smart logistics and supply chain management, others are taking the lead or forced to move faster to meet demands of the stakeholders in their ecosystems (including internal stakeholders).

The road ahead is one of more autonomy across various logistics components such as supply chain logistics, inbound logistics, warehouse management, intralogistics or line feeding, outbound logistics and logistics routing.

One of the best images depicting the evolutions towards more autonomy across all these areas is the roadmap image from UNITY Consulting and Innovation which you see below. In that roadmap a highly autonomous, flexible and predictive picture is painted in later stages, even up to the point that there is no more warehouse in the supply chain.

Slimme logistiek en supply chain - de weg vooruit volgens UNITY Consulting and Innovation - via The Network Effect
Smart logistics and supply chain – the road ahead according to UNITY Consulting and Innovation – via The Network Effect

Also watch and download the SlideShare presentation from UNITY on smart supply chain management from early 2017 below.

It contains a great model of the development levels of smart logistics across typical planning areas such as network design, transportation logistics, purchasing logistics, warehouse logistics, intra-logistics and outbound logistics, as well as an operational overview and notes on the supply chain and logistics in the age of Industry 4.0 with particular attention for, among others the need for new planning systems and new types of training (and do add the mentioned skillsets to that) for employees.

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The technologies and value in connected logistics and the digital supply chain: SCM, flexibility, speed and quality

With regards to the future stages as shown in the image, before we would ever get there quite some challenges arise and changes are needed and the macro-economic context would have to seriously change (leaving aside regulations regarding security, the digital economy and the organization of work).

Today everyone most people have heard – or even deploys or test – one or more of the several applications which have been known for years as in the 2015 (!) presentation on Logistics 4.0 below: autonomous vehicles, swarm intelligence, AVGs and trucks, smart shelves that organize their replenishment, smart containers that organize their supply chains, bins and so forth.

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Yet, as per usual it’s not just about the technologies, even if newer technologies keep being added, for instance on the level of interfaces, blockchain, new advancements in AI and machine learning, better drones in logistics, cobots, the list goes on.

It’s about the way logistics and supply chain management meet the needs of all stakeholders, knowing that flexible, smart supply chain decisions, enabled by the human, organizational and technological components of Industry 4.0 and logistics 4.0 make the difference in gaining competitive benefits but also in surviving in a hyper-connected age where the need for speed is high and regardless of the supply chain, performance and speed are crucial but so is quality.

To put it simply: having a smart container is one thing, being able to track what’s inside it, where it comes from and in what state it is, that’s when you start reaping the benefits of a strategic and holistic approach that looks at the value and customer demand.

More resources on Logistics 4.0 and supply chain management amidst industrial transformation

As we work on more articles with regards to logistics and supply chain management (SCM) in the Industry 4.0 and overall industrial and digital transformation scope below is a list with resources to check out.

Warehousing logistiek concept

Videos on supply chain and logistics in transformation

In the videos below you can see and hear more about SCM and Logistics 4.0 from various perspectives. The videos respectively include:

  • A 45 minute lecture from the Technical University of Denmark on Logistics 4.0, its present, its future and the human aspects,
  • A video from the Bremer Institut für Produktion und Logistik with a specific focus on cyber-physical systems in reverse logistics,
  • A webinar on total supply chain optimization and connected demand and logistics in Industry 4.0 (from Hitachi Consulting and sponsored by Oracle),
  • A panel from The Automotive Logistics Supply Chain Conference 2016 on supply chain 4.0 and
  • A video from Deloitte showing the digital transformation of supply chains with some scenarios.
  • Logistiek 4.0 en hoger
    Lecture on logistics in Industry 4.0 by Allan Larsen, Professor at DTU Management Engineering, Technical University of Denmark.
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Supply chain and Logistics 4.0 content

Ten slotte is hieronder een lijst met meer geselecteerde en beheerde bronnen over de onderwerpen supply chain en logistiek in transformatie en Industry 4.0.

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List of resources on the evolution in digital supply chains, supply chain management and logistics in Industry 4.0.

Source: https://www.i-scoop.eu/industry-4-0/supply-chain-management-scm-logistics/

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How digitization makes the supply chain more efficient, agile, and customer-focused

Supply chains are extremely complex organisms, and no company has yet succeeded in building one that’s truly digital. PwC analysis and advice on how to get there.

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INFOGRAPHIC: supply chain planning for industry 4.0

Infographic showing the changing world of advanced planning for supply chain

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Logistics 4.0: Internet of services and things driving force

Professor Michael Henke talks about the future of logistics. The Internet of things will become an important driving force.

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Mindmap High-Tech Supply Chain 4.0 - Supply Chain Movement

Supply Chain Movement has created a mindmap outlining the route for high-tech supply chains, including road signs indicating potential hazards along the way.

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Rise of the digital supply network

Supply chains are traditionally linear, but today supply chains are transforming into dynamic, interconnected systems. These digital supply networks integrate information from many different sources to drive production and distribution, potentially altering manufacturing’s competitive landscape.

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In Supply Chain 4.0, supply-chain management applies Industry 4.0 innovations--the Internet of Things, advanced robotics, analytics, and big data--to jump-start performance, and customer satisfaction.

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Supply Chain Management

Bain consistently finds that supply chains play a critical role in helping companies achieve growth objectives. In today’s markets, companies are increasingly challenging their supply chains on multiple dimensions, including flexibility, cost reduction, predictable risk management and customer service levels.

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Topafbeelding  : Shutterstock - C auteursrecht: one photo  - warehousing image: Shutterstock - C auteursrecht:  Jojje Alle andere afbeeldingen zijn eigendom van hun respectieve eigenaars.