When Henry Ford introduced the assembly line into auto manufacturing, he changed the nature of the industry forever. What people sometimes don’t consider is that that revolution sparked a subsequent revolution in distribution and logistics. As cars became less expensive and more widely used, they quickly became the preferred method for transporting goods between producers and consumers. In turn, the introduction of automobiles into the distribution of materials changed the nature of auto manufacturing once again. How? By offering new avenues through which to source raw materials, resulting in new efficiencies in the manufacturing process.
Topics: Logistics 4.0
Let’s say you’re trying to become a healthier person. Seems simple enough, right? You just need to choose healthier foods and exercise a few times a week—it’s just a matter of making a new weekly schedule that includes time set aside for exercise and for cooking a few health-conscience meals. Right? Well, maybe not. When you set down to actually create this new schedule, you realize that you’re not sure how much exercise you’re getting currently or how many calories you’re burning during that exercise. As a result, you determine that you need to get a Fitbit to track to your current exercise levels. By the same token, you find that you need a food scale to help you measure out portions for your new recipes, and you need to do a lot of advanced research on the actual calorie counts and other nutritional information for various foods.
Logistics 4.0: buzzword, or critical concept for the future of supply chain management? We might be a little bit biased over at flexis, but we’re pretty sure it’s the latter. As the global supply chain becomes every more complex and ever more digital, businesses are going to need a new framework for making decisions, developing shipping plans, and creating cohesion between their various IT choices. We think that Logistics 4.0 is going to provide that new framework, and we think that after you’ve had a chance to peruse some of these interesting facts, you’ll heartily agree.
So far, the story of Logistics 4.0 is largely one of untapped potential. As a critical counterpoint to Industry 4.0, Logistics 4.0 represents the promise of a highly responsive supply chain that can self-monitor and self-adapt, but so far this promise has only been met in a few select areas. Though smart pallets, smart containers, and smart ports are quickly becoming a reality in global shipping routes, most businesses aren’t in a position to take advantage of those things in a value additive way. That said, slow change is better than no change, and the face of logistics really is evolving. As we more firmly enter the Industry 4.0 era in manufacturing, shipping and freight forwarding paradigms will have to keep up by offering the same levels of integration and digitization as their industrial counterparts.
Let’s look at some statistics in order to dig deeper into the present-day realities of the shipping and freight forwarding industries.
In discussions around supply chain logistics in the past few years, some people have been describing the systematic increase in customer delivery expectations as the “Amazon Effect.” And it's certainly true that Amazon’s push towards faster and faster delivery turnarounds has had a huge impact not just on how (and how quickly) customers expect their items to be shipped, but on the way supply chains are administered around the globe. Where traditional shipping workflows might have required a few touches to get a given shipment from the manufacturer to the final destination Increased delivery speeds have increased the average number of touches, i.e. the number of legs in each journey.
When you play chess, you’re supposed to think several moves ahead. This means that whenever you move one of your pieces, you should be anticipating the possible moves that your opponent will make in response, and what you’ll do in response to your opponent’s next moves. Since at each stage there are multiple possibilities, the possible scenarios you need to keep in your head at any given time begin to multiply pretty quickly. And yet, for each scenario it’s imperative to be able to look at the entire board in your mind and consider all of the hazards and opportunities that present themselves. In this way, it’s a little bit like logistics planning.