Logistics 4.0: what does the future of the industrial sector look like?

Over the past ten years, the industrial sector has undergone a major transformation. In the era of digitalization, greatly accelerated by the health crisis, The traditional supply chain model is becoming increasingly obsolete and a true “logistics 4.0” is now taking shape.

We take stock of the issues, challenges and levers related to this industry of the future.

 

What is Logistics 4.0?

Logistics 4.0, also known as “supply chain 4.0” or “industry 4.0”, refers to the fourth industrial revolution that we are currently experiencing.

The main feature of this new industrial era is the integration of new technologies into every stage of the supply chain, in order to create a more efficient supply chain. This includes the creation of 4.0 warehouses, networking, digitization, process automation and the use of high-performance management tools (cloud, robots, Big Data, AI, etc.). Logistics 4.0 can thus concern all industry players (mass distribution, agri-food, aeronautics, automotive, etc.)

According to a 2020 Wavestone study, 86% of companies have launched projects related to Industry 4.0 and 66% of those surveyed have already seen the benefits of these actions.

 

What are the challenges related to Logistics 4.0?

Logistics 4.0 responds to both human and financial challenges and performance issues.

Here are some examples of the benefits of implementing Logistics 4.0 :

• Improve productivity, autonomy, operational efficiency and performance at all levels of the supply chain: storage, production, order preparation, transport, freight, warehousing, handling, etc.
• Rationalize the company’s human, material, financial and logistical resources and optimize the overall flow management;
• Reduce costs as well as delivery and production times with just-in-time management;
• Improving the optimization of processes, logistics flows, inventory management, supply management, etc.
• Improve customer satisfaction and relations with stakeholders (suppliers, carriers, logistics providers, etc.);
• Ensure compliance with quality norms and standards ;
• Reduce the risk of errors during logistics operations: order preparation, deliveries, shipments, goods processing, routing, etc.
• Guarantee a better flow of information as well as fluid communication and coordination between the different departments of the company;
• Anticipating possible risks, malfunctions, crises and other hazards…
• Obtain better traceability of products in real time;
• Improve waste management and reduce waste;
• Accelerate decision-making;
• Strengthen the motivation and commitment of the teams and improve working conditions;
• Strengthen the company’s reputation, competitiveness and brand image;
• Increase production rates;
• Meet the growing demand and customer requirements;
• Contribute to meeting CSR (Corporate Social Responsibility) issues;
• …

 

What are the tools for logistics 4.0?

Many tools, methods and software can be deployed to turn to logistics 4.0, such as:

• flow management software for a smart warehouse: WMS (Warehouse Management System); ERP (Enterprise Resource Planning), MES (Manufacturing Execution System);
• automation tools (robots, PLCs, etc.);
• Big Data;
• artificial intelligence (AI) tools;
• the Internet of Things (IoT);
• machine learning;
• the robotization of production;
• the creation of an omnichannel journey;
• cloud computing to manage large amounts of data;
• smart sensors;
• augmented reality, 2D or 3D vision;
• autonomous vehicles;
• RPA (robotic process automation );
• automatic data analysis;
• …

 

These various tools are intended to optimize all management operations, improve the flow of information and streamline processes.

The objective of Industry 4.0 is not to completely replace human intervention, but rather to merge the know-how and interpersonal skills of logisticians and employees with the performance of digital technology and technology.

To activate this profound transformation, it can be beneficial to call on an interim manager specialized in supply chain. This high-ranking leader, with more than 15 years of experience in demanding positions, will be an ally of choice in carrying out this large-scale digital transformation. Thanks to its network of 8,000 high-level executives and managers, WAYDEN is able to appoint an interim manager specialized in Industry 4.0, with the expertise and the human and managerial qualities necessary to promote the success of this transformation towards the industry of the future.