“Logistics is simple, but not easy” -by Joe Lynch.
Logistics 4.0 is a term that was initially used in the first world war by the American military, and it’s been argued that it was the most important thing to not only breaking trench warfare however, to the achievement of the D-Day landings nearly 30 years later (Gropman 1997).New Oxford Dictionary of English explains Logistics 4.0 the unique coordination of a complicated operation related to many people, facilities, or supplies.
Logistics is essentially bothered with the flow of goods thru a supply chain. This is referred to as ‘logistics flow’. Logistics flows include:
1. Demand flow:
Managing the demand vs. supply dynamic.
2. Product flow:
The movement of materials & goods.
3. Information flow:
This eases the movement of materials & goods, and informs decision making.
4. Cash flow:
The flow of funds between the various organizations and/or functions in a supply chain.
The Chartered Institute of Logistics & Transport UK (2019) defines 7 R Of logistics as: Getting the Right Product, with inside the Right Quantity, within the Right Condition, on the Right Place, on the Right Time, to the Right Customer, at the Right Price.
It explains the function of logistics, getting things moved approximately in a synchronized manner to satisfy a particular standard like condition, timeliness & the appropriate place. Rs of Logistics defines the system of planning, executing & controlling the efficient and effective ahead and reverse flow & storage of goods, services, & related information from the origin point to consumption point for the purpose of meeting consumer needs.
Inescapable technological change has turned away the manner industries operate. Logistics has been hit by disruption after the introduction of the 4th industrial revolution. Logistics 4.0 is progressively important for companies that want to compete successfully in the market. Logistics 4.0 shows the impact of Industry 4.0 on the field of transport & logistics. The subsequent era of successful supply chain management is known as logistics 4.0 which will leverage edge computing & the Internet of Things (IoT) to give real-time automated, sense-and-respond feedback mechanisms.
“Industry Logistics 4.0 makes use of smart technology derived containers, pallets, vehicles & transport systems. This makes sure in developing a fully networked supply stream chain that provides supply chain managers, shippers, freight forwarders, and others the essential transparency & visibility to route shipping & performs other logistics duties in an optimal manner.”
The Logistics 4.0 goals are the automation & optimization of material flows and the utilization of resources in inbound & outbound logistics. This will drive an interactive flexibilization of business processes, models & partner networks, both as a precondition & as a result of digitization. The technology power of Industry Logistics 4.0 enables companies to work more efficiently than ever before with customers & partners, e.g. suppliers, retailers, manufacturers, wholesalers & logistics providers.
In a technologically advanced warehouse aligned with high-end technologies, the sensors on their own could provide an alert to the supplier brightening that a restock order was necessary without needing any human intervention at all.
Hand-picked for you: Supply Chain Vs supply Chain 4.0
How does Logistics 4.0 work?
Logistics 4.0 is not one-time planned process & then maintained in the same form forever. It is consistently learning, consistently adapting to new requirements & is therefore consistently implemented.
Logistics 4.0 concentrates on the utilization of new, innovative technologies, such as forecast-supported supply chain management, optimizations using artificial intelligence or pricing based on machine learning. These & many more new technologies can be used to optimize the subsequent logistics key forms: Supply security, flexibility & quality of the offer, delivery capability & service level.
To attain this, you must develop & execute new concepts for planning, controlling, monitoring & implementing information and material flows in Logistics 4.0. All levels of your company logistics must be engaged in the Digital Transformation.
Industry 4.0 is nothing without Logistics 4.0
Some of the main goals of the fourth industrial revolution can only be attained through adapted logistics. These involve the main features of Industry 4.0 such as real-time capability, networking, decentralization.
By initiating Logistics 4.0, you can create the essential foundations for your company to master the future challenges of Industry 4.0. For instance, paperless processing of transport orders with digital consignment notes or pallet exchange in the digital age are important basic requirements for a functioning Industry 4.0.
Key Elements of Logistics 4.0
One of the most essential elements of modern logistics is the increase in transparency & visibility that comes from digitization across the whole supply chain system. Visibility is the initial step to develop a smarter value stream system; also & it has proved to be a necessary precondition that has made logistics transparent & intra-operational much more efficient & comprehensive than its previous presentations.
For instance: Abu Dhabi’s Smart ports are so far executing solutions that not just performs real-time tracking, but real-time viewing of documents & other mission-critical information for freight forwarders and their consumers.
2. Smart Utilities
“Smart” versions of traditional logistics components has already modified the manner shipments move from suppliers to end users. Involvement of technology in logistics utilities like smart containers & smart pallets are modifying traditional shipping workflows already & including fresh hopes that gather data & perform judgements based on the evaluative information in Business Transformation.
For instance, a smart pallet could notify users whether it’s being filled up significantly more or less than its maximum weight capacity, thus preventing amplifying load-time efficiency.
3. Adoption of IoT
Due to beginning of Industry 4.0 in the market, many IoT (Internet of Things) development companies have come up with digital devices that can be deployed & inserted on factory floors of warehouses. Such enhancements of IoT inclusion are all technical & very evaluative. IoT adoption both enables & enhances technology like smart containers, both by connecting them (generally via the cloud) to a company’s existing IT, but also by achieving progressively particular & granular vision.
For instance, some businesses have installed heat & light sensors in their storage areas to discover the likelihood that a specific product might become damaged or destroyed by poor physical conditions. If the sensors determine that this damage is likely to have occurred, alert is sent back to inventory managers & production planners to make sure that existing production & transport plans are adjusted to allow for the creation and distribution of replacement parts.
4. Industry 4.0 Integration
The technology driven logistics model is intimately associated with Industry 4.0. One of the most essential aspect of Logistics 4.0 is its ability to unite flawlessly with Industry 4.0 systems, generating a symbiotic, coactive relationship between manufacturers & shippers. Moving forward, this will help to bring about a global supply chain that is leaner, smarter & more supple—not in a gradually fashion, but as a coherent, unified system.
How Technologies are Revolutionizing Logistics & Supply Chain?
Artificial Intelligence, Machine Learning & related technologies help leaders to focus IoT and countless other data feeds on attaining bigger optimization & responsiveness across logistics & supply chain. Consider examples such as:
When will customers be prepared to order? Surely the sales team eagers to know, but this is also essential information for logistics, supply chain & transportation planning. Looking particularly at transportation requirements, IoT can help determine when a vehicle may need preventative maintenance, thus avoiding breakdowns & decreasing the risk of failing to meet customer needs & expectations leading to a better transformation.
Augmented Real-time Decision Making:
Logistics teams often handle a broad range of complicated but recurring activities that need big amounts of input data in order to make the best choices. Optimal carrier selection, for instance, means combing through thousands of possible candidates, routes & schedules. In general, workers often require 10 minutes or more to collect the information. But with AI & associated tools, supply chain professionals can automate the analysis and narrow their selections to just 2-3 within a matter of seconds.
When, Where & how? Leaders in these disciplines are studying how to acquire & comb records to make the best decisions concerning the deployment of now no longer simplest inventories however additionally the transportation assets required to join all the dots from beginning to consumer location. Where are the drivers? Where are the consumers? Where are the vehicles? What commitments were made?
With advanced tools that constantly research & improve, industry professionals are capable of make better, up-to-the-moment selections in addition to extra knowledgeable longer-term, strategic choices which include warehouse locations, fleet size/specifications, etc., leading to great Business Transformation.
Check out the Video-
What Forces are Modifying Logistics & Supply Chain?
1. Advancement in Frontline Technologies
Companies like Tesla, Starsky Robotics, Waymo & Embark are so far road testing long-haul robotic trucks in states such as California, Florida & Texas. Certainly, executives in the industry must start including such developments into medium & long-term planning.
A potentially impactful technology is the aerial delivery drone. A broad array of frontline safety technologies is already having a notable impact. For instance, trucks of all sizes today can be equipped with lane departure warnings so if they start to weave left or right, the driver hears thundering. Similarly, vehicles can be installed with systems that will slow them if there’s a danger ahead. Some other safety features include forward-looking cameras & radar, alerts for drivers when objects are in blind spots.
2. Advancement in behind-the-scenes Technology
Artificial intelligence, IoT, machine learning, blockchain, these & related tools have the potential to consult huge competitive vision & advantage to early adopters in VUCA.
Now, “we see all of this added computing power—IoT, data mining, artificial intelligence & machine learning—that can be focused on making better decisions.” This will drive refinement & innovation not only from a complete strategic & resource planning basis but also in real-time decisions.
According to expert at Learn Transfomation anyone who is operating in a logistics or supply chain concerned-capacity, modification of this extent drives to a broad range of risks, however also opportunities. Companies should decide whether to act like “wait & watch” or to act now. Anyhow what their decision is but, of course “these are exciting times.”
Frequently Asked Questions
1) What does industry 4.0 mean to Supply Chain?
Industry 4.0 is nothing without Logistics 4.0. Some of the main goals of the fourth industrial revolution can only be attained through adapted logistics. These involve the main features of Industry 4.0 such as real-time capability, networking, decentralization. By initiating Logistics 4.0, you can create the essential foundations for your company to master the future challenges of Industry 4.0.
For instance, paperless processing of transport orders with digital consignment notes or pallet exchange in the digital age are important basic requirements for a functioning Industry 4.0.
2) What are 4 Key processes in Logistics?
Logistics flows include:
- Demand flow,
- Product flow,
- Information flow,
- Cash Flow
“4 Best Supply Chain Books”
👉 Global Reader’s Click Below:
- The New (Ab)Normal: Reshaping Business and Supply Chain Strategy Beyond Covid-19
- Greensight: The Sustainability Guide for Company Directors
- Operations and Supply Management 4.0: Industry Insights, Case Studies and Best Practices (Future of Business and Finance)
- The End of the World Is Just the Beginning: Mapping the Collapse of Globalization
👉India Reader’s Click below:
- Made in Future: A Story of Marketing, Media, and Content for our Times
- Operations and Supply Management 4.0: Industry Insights, Case Studies and Best Practices (Future of Business and Finance)
- Fashion Logistics: Insights into the Fashion Retail Supply Chain
- Supply Chain Management 2/e: Text and Cases
👉 Leader’s Choice:
- WIN AWARD by sharing your good practices
- Leaders Shop – Exclusive Books/ Gifts selection for Leader’s
- Leader’s Courses that are best suitable to your role
- Check your Your Leadership Score in 1 minute
- Community- Leader’s Only
- Submit/Publish your events/webinars
- Best Quotes for leaders in VUCA World
👉 Hand Picked for Leader’s :
- Call Me Him : A Transgender Coming Of Age Story
- Leaders Who Lust: Power, Money, Sex, Success, Legitimacy, Legacy
- Why Women Harassment still exist in organizations?
- Best Leadership Book that every leader should read before die
- Top 25 Lean tools in the world
- How to be a VUCA Leader?
- 10 Best Leadership Styles of Great Leaders