They say that those who don’t learn from history are doomed to repeat it—but in point of fact, relying too heavily on historical knowledge can often be just as bad. History tells us a particular new innovation will never work, or a new strategy will never succeed, and as a result we’re often blindsided when something truly innovative or unusual comes around. This is particularly true in the logistics industry, where changes in the global economy and the nature of supply chain technology are causing an exponential increase in the number of paths that any given cargo might take from producer to consumer.
You know that one product that seems to be in every outgoing order? The one kept all the way in the corner of warehouse 2, opposite from the loading dock? How much is it costing you to keep sending the forklift across 10,000 square feet of warehouse, multiple times per day? What if you moved that item to an empty bay 2 rows away from the docks? How much time, energy, and money would that save your logistics budget? If you don’t know the answer to any of these questions, it’s time to take a good, hard look at the logistics end of your supply chain to weed out the wasteful spending and tighten things up a bit. To get you started, we’ve pulled together a list of our top 5 areas of waste in supply chain logistics. If you can get these under control, you’ll be well on your way to a streamlined value chain and much-improved logistics ROI.
In our last look at Logistics 4.0 statistics, we discussed 5 that we feel will help define the shipping and logistics sector in the coming years. Today, we’re going to add to that list with 5 numbers we feel might be getting short shrift in coverage of this arena. Logistics is undergoing a collection of disruptions that seem to have hit out of the blue. There’s a seeming tsunami of dissatisfied customers, rising fuel costs, and global weather pattern changes, to name but a few. In order to respond appropriately, the shippers of the world have had to pivot, fast. Many are choosing to dive headfirst into the emerging world of Industry 4.0 technologies that promise to help predict at least some of these disruptions far enough in advance that alternative plans can be set in motion. Among the technologies seeing increasing adoption are AI, machine learning, RPA, and IoT. These technologies, combined with intelligent deployment tactics, are already having a big impact on the global supply chain.
Logistics 4.0 is an offshoot of the larger trend in manufacturing known as Industry 4.0. Think of it as being to the supply chain what Industry 4.0 is to the factory, and you’ll begin to see the potential for massive disruption (of the good kind). As such, there is considerable overlap in the technologies at play. For example, the same IoT sensors that are revolutionizing preventative maintenance on the production line are also revolutionizing how the purchasing department determines what supplies to order. And the ability to automate production processes is being mirrored in the way those orders are being placed and the shipments themselves are being handled when they arrive. With the arrival of smart pallets, shelves, trucks, containers—even entire warehouses—logistics providers are able to create complete transparency up and down the value chain.
The practice of trying to get the right goods to the right place at the right time in the right condition is virtually as old as time—and yet, each year, new trends, ideas, and best practices emerge in the fields of logistics and supply chain management. With the rise of digital technology and increased connectivity across the supply chain, the current rate of change in these fields is unprecedented. The world of logistics even 5 to 10 years from now will probably have undergone even more dramatic evolutions, and it may be virtually unrecognizable compared to the supply chains of the past.
Topics: Logistics 4.0
Whether you’re a freight forwarder seeking out a new ERP system that helps to manage the flow of goods from origin to destination or a manufacturer looking to add visibility and bolster efficiency within your own transportation management processes, selecting the right logistics or transportation management software can be a difficult task. In some ways, the process of selecting the right technology is a lot like finding a 3PL (third party logistics provider) with whom to partner. In both instances, you need to consider price, customer service, existing relationships, and scalability—but you also need to take stock of your organization’s values and provide a clear roadmap for the future of you're your operations. Even if you choose the most reputable partner in the business, the partnership likely won’t be a success if their goals aren’t well-aligned with your own.
The rise of Industry 4.0 has saddled supply chain managers with a lot of lofty expectations. With the idea of the so-called global factory, we’re given visions of a future supply chain in which manufacturing processes are so decentralized that the boundaries of any individual production facility become meaningless. By the same token, as we look towards the future of connected digital logistics, we tend to envision a world in which demand-capacity planning is so sophisticated and transport logistics are so agile that the need for physical warehouses of products will dwindle away and ultimately vanish.
Topics: Logistics 4.0
Once you send a finished product out into the world, it sometimes feels like you’re no longer in control of it—whether or not it reaches its final destination is a matter of preparation and luck. Even if you’re a shipper or freight forwarder, the routes that any piece of freight might take through the global supply chain sometimes seem too chaotic to optimize. There’s good reason to feel this way, but in the era of Logistics 4.0 there’s also reason to hope. Digital shipping and forwarding workflows are adding new degrees of sophistication to route planning processes, and giving logistics planners new opportunities to reduce costs and optimize their shipping flows.
Topics: Logistics 4.0
A few years ago, three days was considered a reasonably quick shipping turnaround. Today, for many consumers three days is considered glacial, two days is considered standard, and only shipping times shorter than one day really count as fast. These changing expectations have put numerous businesses, from manufacturers to logistics providers, in a position to either optimize their transport processes for greater efficiency or cede transportation management as a competitive advantage. The latter is obviously not something that any business really wants, but the former can be a tall order.
Let’s talk about Sherlock Holmes for a second. When you think of this famous English detective, a few things probably come to mind: his iconic deerstalker cap, maybe his pipe or his violin, and his magnifying glass—that critical tool for finding clues that Scotland Yard might have missed. Though Holmes was a fictional construct, sprung from the mind of Sir Arthur Conan Doyle, the method he employed in his stories and novels actually had a real-world impact on how detective work and criminal investigations were conducted in the 20th century.