Industry 4.0 in Logistics

Main article: Fourth Industrial Revolution

How to Use Big Data for Predictive Analytics in Logistics

Main article: Big Data

Demand forecasting and supply planning are among the main applications of this technology, however, planning upfront costs does not make sense for every business. In March 2022, MHI released an analytical report "From Evolution to Revolution," which provides scenarios for the application of predictive analytics in the logistics industry.

Predictive analytics is not a new technology. In fact, she is older than the United States. In 1689 Lloyd's of London began using forecast analytics to insure sea travel.

Since then, predictive analytics have moved forward as access to information has become better and faster, and computers have been a great help in the process.

When we look at the modern algorithms behind predictive analytics, there really isn't much new. What has changed is the amount of data and what is being done with it. We got to the point where people stopped shouting that they didn't have enough data. They're screaming about having too much data, "said Rudolf Leuschner, assistant professor of supply chain management at Rutgers Business School.

Software and technology companies, he said, are "doing a better job of absorbing information that comes" like a brandspot "and making something out of it."

Worldwide real-time tracking of delivery times

In an industry report, MHI and Deloitte^[1] surveyed more than 1,000 supply chain professionals around the world on innovation investments in the supply chain. They found that 31% of respondents say predictive analytics are already in use, while 48% say it will be in use in the next five years. The success of predictive analytics changes the expectations of industry representatives.

We have moved from near-zero expectations for things like delivery timing forecasts and the likelihood that delivery will appear within the timeframes that were originally predicted to more accurate forecasts. Everyone expects to get an increasingly accurate indication of when they can expect goods to arrive, "said Ken Wood, executive vice president of product management at Descartes

Waiting for accurate forecasts of delivery times is becoming more common - for shippers, freight forwarders and recipients, regardless of whether this recipient is a business or a consumer.

Planning, Forecasting - Key Applications of Predictive Analytics

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Predictive analytics provides near-real-time visibility in the most advanced supply chains.

Now we're on track for you to see where the cargo is relative to your location with an accuracy of 30 minutes, "Wood said

He added that the widespread adoption of cloud technologies has promoted predictive analytics as they provide easier access to algorithmammachine learning and big data processing. The better the technology sorts the data, the better the predictive analytics will get, Wood said, especially when it comes to dealing with uncertainty.

Predictive analytics perform best when it makes forecasts in stable circumstances. But when something extraordinary happens, and some of these things are driven by external factors, whether it's weather, labor protests or geopolitical struggles, the technology isn't as good at predicting such scenarios, "Ken Wood recounted.

Value barriers of predictive analytics

Predictive analytics is still an expensive technology to implement. Even if it helps to reduce costs after launch and during the work process, not every enterprise can allow such capital expenditures. [1]More than half of businesses spend between 5 million and 10 million dollars on predictive analytics, according to MHI's^[2]. Three percent spend more than $100 million.

Companies spend heavily on predictive analytics

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For some warehouse operators, such costs don't make sense, Leushner said. Adding predictive analytics to a warehouse can make employees a little more efficient and a little less error prone, but if a company doesn't use its warehouses on a large scale, the savings won't be realized in those price brackets.

Things could change if the system could be installed like an application on smartphone without much maintenance instead of having to invest in hardware, software and consultants to make it all work. If a company can download an app to my phone and create it for everyday use, it's a lot easier to implement, "Leuschner said

How Cloud Technology Helps Scale Supply Chains

White Paper: Cloud Computing (Global Market)

Cloud Investment in Logistics

In the first half of 2022, the cloud is still a buzzword, and there is a good reason: it changes the way all enterprises operate, but especially supply chain management. The MHI and Deloitte^[3] surveyed more than 1,000 supply chain professionals around the world on innovation investments in the supply chain. They found that 54% of companies surveyed were increasing or substantially increasing their investments in cloud computing and storage to make the supply chain more sustainable. The report's authors also found that companies that already used cloud-based supply chain platforms before they started were pandemics able to create new channels to meet customer needs and scale quickly to meet exponential demand growth in. e-commerce

Most companies spend less than $10 million on cloud technology.

The cloud is at an important transition point, said Suresh Acharya, professor of decision-making, operations and information technology practice at the University of Maryland's Robert H. Smith School of Business

He compared it to how drivers moved from using paper maps to apps like Google Maps and Waze. They all take drivers from point A to point B, but apps constantly use new information about things like accidents, construction and weather to tell drivers where to go to save time and nerves.

We're really comfortable getting real-time information that they can use to make real-time decisions. Supply chains are undergoing such transformation, "Suresh Acharya said

Cloud is growing

As with most technologies, lower prices and better products have made cloud and cloud storage affordable.

It used to be that if you needed any cloud computing or storage, you had to host it yourself. It was necessary that entire teams support these systems. The cloud made them unnecessary. Instead of building your own servers, installing and running them, you can outsource it, "said Rob Wood, vice president of hardware and embedded security services at NCC Group

The cloud part of storage has also matured, with Amazon Web Services turning 20 in 2022.

That maturity has reached enough levels that companies can now get a sense of their supply chain as a "control tower." They are able to really see, understand and get real-time information about the supply chain, "Acharya said

This allowed logistics professionals to better understand their entire supply chain and make decisions based on it.

From "control tower" to trend

The next advantage of cloud and cloud computing in the supply chain is likely to be the increased use of cloud computing, which can receive real-time data and make real-time decisions based on it. Just as Google Maps and Waze can identify issues and chart a new route, optimized cloud platforms in logistics will be able to get information on things like supply delays, weather, geopolitics, subcontractor issues and anything else that can impact the supply chain by helping logistics. Network professionals make more real-time decisions.

If there is any problem with the warehouse, can I send this batch to another warehouse or at least delay it. These are the elements of the supply chain that help bring logistics to a new level of efficiency, and this is what we are seeing in the cloud, "said Suresh Acharya

He also believes sharing this information between manufacturers and retailers will become more common, in part because it could improve supply chains, and because younger generations simply share more information.

According to Generation Influence: Achieving Generation Z in the New Digital Paradigm^[4], produced by the Center for Generational Kinetics and the WP Engine, 54% of Gen Z members are not shy about posting images online, and 50% regularly share videos. This is a leap forward compared to Generation X and baby boomers - only 35% and 34%, respectively, do not mind sharing photos, and in both groups 31% do not mind sharing videos.

We are experiencing a technological shift, but we are also seeing generational change. This will start to creep into the workforce, too, where retailers open up to the outside environment because they've realised sharing that information is mutually beneficial. It's not a zero-sum game, "Acharya said

How the use of wearable devices changes the operation of logistics centers

Main Article: Wearable Electronics (Global Market)

Until the first half of 2022, wearables were not very successful in managing warehouses and supply chains.

Mobiles were scanners barcode popular, but there were few other uses. Perhaps there were some ergonomics professionals who used the devices to understand how many orders pickers collect in a day, but nothing more, said Fadel Megahed, assistant professor of information systems and analytics at the School of Farmer Business at the University of Miami

The pandemic has created a new need as wearables and mobile technology have emerged as a potential solution to keep workers safe. This has opened the door to more investment in these technologies, especially as workers become more accustomed to wearable devices being part of their day's work.

Now companies are trying to figure out what to do with all the data coming from wearable devices. In the process of working on the industry report, MHI and Deloitte^[5] that 26% of respondents plan^[6] invest in mobile and wearable technology over the next three years.

Health of workers in logistics

The pandemic has forced supply chain specialists to take a fresh look at wearable devices, such as those already used to warn workers of the imminent danger. Knowing someone's temperature with a wearable device could be faster than to identify a sick worker. In addition, location data provided by wearable or mobile devices may speed up contract tracking if the employee tests positive for. COVID-19

This showed that companies were ready to use it if there is a suitable case - said Megahed, referring to the pandemic

Wearable devices are also used in other areas of worker safety, such as injury prevention. In July 2021, Verve Motion, a wearable robotics startup, raised $15 million in Series A funding, which followed a pilot deployment of exosuits at ADUSA Supply Chain grocery stores, Ahold Delhaize's distribution arm in the United States.

According to the company, the device, which can be worn in 30 seconds, reduces the load on the back by 30-40% during a normal working day. Wearable devices and mobile technology are also used to improve the wellbeing of employees in general, which can help employees stay at work. This is USA especially true for trucker drivers, who are twice as likely to be obese compared to the general population, according to the Centers for Disease Control and Prevention. They are also twice as likely to smoke, with only 1 in 4 men and 1 in 5 women drivers saying they exercise for 30 minutes a day, five days a week.

Driver safety is becoming a problem, and you have to believe that wearables like Fitbit and Apple Watch will make a huge difference, "said Paul Beavers, Chief Technology Officer at PCS Software

In 2021, Koch Trucking rolled out the Rolling Strong app and platform for its 850 drivers and administrative staff. It includes the RS Flex system, which creates a gym in the cabin, as well as competitions in the app to meet the criteria for wellness, health and fitness.

Drivers are a rare commodity these days, so we hope that this program will help achieve our main goal of keeping them behind the wheel, Angela Scanlon, director of HR at Koch Trucking, said in an interview with the Commercial Carrier Journal.

From Data to Decision Making

For wearables and mobile technology to become more common, different types of devices must work in the same ecosystem.

We have the ability to get data, whether it's about a person, a cargo or a truck. We don't necessarily know what that means in terms of decision-making - Megahead Rock

One possible use case is to identify inefficiencies in the warehouse using location data from workers. Paul Beavers believes it will take time before supply chain workers fully master wearable technology. They can resist, and think about the "big brother" watching them, but then, acceptance will appear. According to Beavers, this is similar to when truck drivers were first forced to start using dashcams and other control devices. Many drivers hated them until they saw real cases of the devices helping them, he said, such as when they turned on alarms reporting a violation by another driver.

Looking at the recordings from when someone cameras clipped the driver, they realized that if I didn't have a camera, I would be in trouble. The same trend will be with wearable devices in stock. It's just a matter of time, "Beavers revealed

How Robotics and Automation Will Inform Supply Chains

Main article: Robotics (Global Market)

Robots often make news on sensational occasions: robot dogBoston Dynamics impersonates Mick Jagger; a replica of Spider-Man flies over Disneyland visitors. But in the supply chain, robotics and automation had gone from something radical, even secondary, to the mainstream by early 2022.

This is considered a low risk. And very soon this will be an important bet for operations in supply chains, where 10 years ago it was considered either advanced or risky, said Jeff Christensen, vice president of products at Seegrid

According to McKinsey's^[7] forecast, ]annual installations of industrial robots will grow from 450,000 a year in 2015 to 600,000 in 2022. The firm also predicts that 10% of modern manufacturing processes will be replaced by additive manufacturing by 2030. The combination of factors, including a pandemic, labor shortages and technology development, is significantly pushing robotics forward starting in 2021.

Robotics evolve with AI

Like most technologies, robots became more widespread when their technical side improved and the price of them fell. The introduction of the robots-as-a-service model has allowed businesses to supplement their operations when they need help, or try to add robots without major capital investments.

Pretty soon robotics and automation will become the basis for operations in the supply chain - said Jeff Christensen

The development of artificial intelligence also helped, Christensen said. The sheer amount of data being collected is changing what is possible. What people can do on any computing device today is very different from what it was 10 or 20 years ago.

The best robots, best sensors and AI have reached the maturity threshold at the right time when the market is demanding what it needs to do. This is not always the case. There are often technologies that reach maturity in a vacuum or in a laboratory without real key demand for them, "Christensen said

Pandemic push

The pandemic has given a significant impetus to the introduction of automation in the logistics industry. In 2022, there is a corresponding demand: the growth of e-commerce business, lack of labor, lack of truck drivers and instability in supply chains force robots to take on business, especially when it comes to increasing sustainability.

In MHI's annual industry report^[8] Report, 53% of^[9]the more than 1,000 logistics professionals surveyed said^[10] were increasing or substantially increasing their investments in robotics and automation to make supply chains more sustainable. The study also found that 38% use robotics and automation today, with another 38% predicting they will be used within five years.

How companies plan to increase investments in robotics

The need for efficiency and error reduction is also pushing the adoption of robotics and automation in manufacturing.

The pandemic has put a "particular strain" on diagnostic companies. We are seeing our volumes increase and at the same time we may have to limit the number of people in the facility. This made us realize that we need to find more creative ways so that we can continue to move our products, even when [we are] limited in the physical movement of products, "said Samantha Betancourt, vice president of supply chains and external operations at Ortho Clinical Diagnostics

She said assigning tasks to robots also allows members of their team to "become opinion leaders," which is very important now.

Employees can focus on strategic work and leave repetitive activities, whether in a spreadsheet or in a warehouse, robotics, Betancourt said

Overcoming barriers to acceptance

While robots are becoming more common, they are still new in logistics for the first half of 2022.

When communicating with something new, it takes time to gain trust. Until team members get used to working alongside robots and can truly trust their work product, oversight adds additional tasks, Betancourt said

Not every company has the money to make a capital investment right now. According to Bill Ferrell, professor of supply chains and associate dean of Clemson University's Graduate School, this, as well as concerns about maintenance and repair costs, are keeping companies on the sidelines.

It will help to see successful application in other enterprises, Ferrell added. He pointed to autonomous forklifts already in use in warehouses and Walmart releasing autonomous trucks.

We are beginning to see the beginning of application and implementation in the real world. It's not scale yet, but it's not that far into the future - Bill Ferrell said

How to transform the logistics industry with AI

• How to transform the logistics industry with AI

How autonomous vehicles will transform the logistics industry

Main article: Autopilot (self-driving car)

In 2022, perhaps people are not close to a world where they have stopped driving vehicles. But in logistics, autonomous vehicles and drones have infiltrated supply chains since 2015 and continue to change the way goods are moved.

Based on the MHI report released in 2021^[11] - 21% of managers from logistics and production said they plan to invest in autonomous vehicle and unmanned aerial vehicle technologies in the next three years. And 20% of respondents said their companies already use autonomous vehicles and drones, and 37% predict they will be used within five years.

We will see an increase in the autonomy of robots, drones and other things inside warehouses and controlled space, said Scott Buchholz, managing director of research in new technologies and chief technical officer of public and public services at Deloitte

He said he expects these technologies will continue to change logistics, especially the way goods are delivered, as warehouse specialists and supply chain managers will continue to "experiment by trying to deploy these technologies in external spaces such as delivery to us."

Implemented applications of autonomous trucks

Autonomous vehicles and drones have an impact on supply chains, especially under controlled conditions. For example, in 2021, DHL SupplyChain deployed 15 automatic forklifts at one of the company's warehouses in the UK. And Walmart operates self-driving trucks around a seven-mile circle in Arkansas. Still, these technologies depend either on the static nature of the place they work (Walmart trucks don't have a safety driver, but they only drive that seven-mile loop) or the backup person, even if those people work remotely.

Drones will continue to get smarter. Soon we will see cars in which the driver will never have to take control. The infrastructure to support such vehicles will have to mature and be launched to support these vehicles, but I predict that in the next five years it will be a rather mature technology, "said Katerina-Olivia Lacey, co-founder and product director of Quincus

How drones are used in and out of stock

Currently, drones are used in two main ways. Inside warehouses, they can scan stocks like a Corvus Robotics drone, which can scan 200 to 400 pallet positions per hour. Outside the warehouse, they can deliver, as Flytrex does with products in North Carolina.

In the next few years, drones will become a common vehicle. As a mode of transport, drones can avoid traffic jams. In logistics, we will see the introduction of drones that will go from warehouse to airport or ship, and supplies will be delivered where they are needed - Lacey said

Buchholz said he expects options for using drone technology in logistics to continue to expand as manufacturers and practices see the technology applied in other areas. This will allow them to determine how these use cases apply to them, even if it's not as easy as taking a drone from a store. Buchholz cited Southern California Edison, a utility that currently uses drones to test electrical infrastructure in areas at high risk of fire, as an example of how UAVs can be used, and what work is required to implement this kind of technology.

They had to buy a bunch of drones - and they had to purchase cloud storage, whereas before people just went and took a couple of pictures - Buchholz said

Managers in logistics will have to go through the same process and acquire the right technology to use things like drones in their own environment.

Barriers to the introduction of autonomous transport in logistics

General concerns about autonomous vehicles and drones may be holding back the adoption of technology, even if it's an unconscious feeling. A survey conducted by YouGovAmerica in 2021 found that 43% of the international pool of respondents are worried about the use of self-driving cars. If we take only Americans, then this figure rises sharply to 58%.

It is very interesting to see how little tolerance some people have for the idea that a computer can make a mistake. It actually holds back a lot more achievements than people think. Businesses that want to implement the technology also need to understand and respect how much work is required to make things like drones and autonomous vehicles work and work safely. The idea of an autonomous forklift is a great idea. The skills needed to create an automatic forklift and move around the warehouse are still very high, "said Buchholz

Companies also need to understand how to maintain the hardware and software that keeps the technology running.

I think it's necessary before we see an explosion of use. It's actually harder than most people think, "Scott Buchholz said

How 3D Printing Lets You Personalize Supply Chains

Main Article: Additive Manufacturing

In 2022 3D printing , it changes the idea of ​ ​ manufacturers and suppliers about the methods of its use and the possibilities of transformation, logistics changing the principles of operation of warehouses taking into account the use of this technology.

Based on MHI's early 2022^[12]21% of companies currently use 3D printing and additive manufacturing, while 32% plan to invest in the technology in the next five years. The growing popularity of 3D printing is driving innovation and change in how companies use the technology in their supply chains.

With progress in machines and materials, you start to see people become a lot more creative about what's actually being printed and where it's being printed, "said Scott Buchholz, director of new technical research at Deloitte

How improved processes and materials promote 3D printing

The rapid introduction of additive manufacturing is due to improvements in almost all aspects of 3D printing. Machines are faster, more accurate and can handle more volume. There are also more options for what can be done, including ways to 3D print things like high-temperature plastics and metals. PTC Manufacturers and Onshape supply chains are increasingly considering how the technology can be applied to their work, said John McEleney, corporate vice president of strategy and co-founder of the product development platform.

When people look at supply chains, they try to expand their supplier strategy. It has pretty profound implications, "McEleny said

GE Aviation, for example, uses 3D printing to make nozzle tips for LEAP engines, which are commonly used in commercial aviation. The technology allows you to create tips from just one part instead of the usual 20.

Advances in other technologies, such as cloud computing, have also contributed to the increased adoption of 3D printing and additive manufacturing, McEleny added. Cloud-based web tools mean designers and manufacturers can work on prototypes and collaborate better, "thereby changing the nature of what vendors do."

How individualization makes companies closer to consumers

3D printing is expected to change the way retailers interact with consumers. Because the technology is so customizable, businesses can quickly produce in-store items based on customer specifications.

I would like to see that we get a lot more clothes for customers made for us in a local store, not universal clothes made thousands of miles away, Buchholz reported.

This is already happening in the area medicine and. stomatology Orthodontic products with eliners, such as, can Invisalign now be printed on 3D printer the dentist's office instead of making them outside the office and mailing them. Superfeet uses machines to HP FitStation scan the foot and create custom orthopedic steles that can be sent to customers in about a week, reducing the time and cost of purchasing inserts.

Advances in 3D printing and additive manufacturing could also change the structure of supply chains in the future, Buchholz added. If more items are individually printed, the location of the 3D printer will be able to redefine where companies need to store raw materials or where to process final products.

How to use blockchain to ensure supply transparency

Main article: Blockchain in the transport industry

Although blockchain often talked about in 2022 in connection with (cryptocurrency and this attracts attention), it is used in to supply chains provide greater transparency.

If you're thinking about the supply chain today as well as the volume of paper, faxes, emails, data exchanges and phone calls that actually support the process, it seems pretty obvious that if you could get enough people together to optimize these things, using a common system and a conventional application, you could benefit a lot from this process, "said Scott Buchholz, managing director of emerging technology research at Deloitte.

For^[13], MHI and Deloitte interviewed more than 1,000 supply chain professionals from around the world about innovation investments in logistics for the annual 2021 industry report. They found that 10% of companies surveyed planned to invest in blockchain and distributed registry technologies through 2024. They also found that 12% use blockchain at the end of 2021, while 41% plan to apply blockchain. And while utility is already visible in areas such as groceries and luxury goods, blockchain technologies that could provide transparency in other industries are difficult to sell. However, as the technology develops, its place in logistics, as a means of ensuring transparency of supplies, will grow stronger, according to researchers^[14].

How blockchain boosts traceability

Blockchain is entrenched in the grocery store, where knowing the source of a product can be a matter of life or death. This technology allows retailers to quickly identify the source of outbreaks of pathogens such as E. coli, for example. Walmart, which uses IBM's blockchain platform, says it can track the mango source in any of its stores in 2.2 seconds. They used to take six days. Blockchain not only helps the retailer quickly find out where the outbreak began, but also allows you to understand which food needs to be destroyed and which may remain on the shelves. While this is important for consumer safety, if retailers allow consumers to access the blockchain through a QR code, it could also give grocery stores an advantage in marketing.

You see a bag with coffee beans, with a QR code applied, and with it you can see where they came from and even the production process, "said David Furlonger, vice president and research fellow at Gartner in the Gartner CEO and Digital Business Leaders research group.

Blockchain has also found use in luxury goods, especially those where buyers seek authenticity. Hong Kong jeweler Chow Tai Fook sells diamonds certified by the Gemological Institute of America, they meet the requirements of the United Nations "Kimberley Process," which means they are ethically obtained. They use blockchain to digitize their diamond certificates.

This is how we protect our customers. Thanks to blockchain, they have complete transparency in understanding the origin and quality of their diamond, said Jade Tin Hei Lee, general manager of business analytics and technology applications at Chow Tai Fook Jewelry Group

How to manage a decentralized system

For blockchain to work across the supply chain, each participant must add product information to it and make that information available to everyone else.

Not all organizations feel comfortable sharing data with others. Blockchain also faces a management challenge and various underlying issues need to be addressed. Who will own the blockchain system? Who's going to pay for it? And if the owner of the blockchain wants to make an update, how will this affect and how can it be coordinated with each individual link in the supply chain? - says Arthur Carvalho, assistant professor of information systems and analytics at the University of Miami Farm School of Business.

A company like Walmart could roll out blockchain - as it did in 2019 for fresh leafy greens suppliers - because of their market dominance. The seller could say no, but then he could lose Walmart as a buyer.

Walmart has so much power, leverage and influence that they can reach out to farmers and packers and say, "Please accept my system," "Carvalho said

But they can also provide software and subsidies to implement it. Successful use cases can build trust in the technology and lead to its adoption in other areas, Buchholz said.

There will be waves of acceptance that begin with things like expensive jewelry or items at high risk of spoilage, such as food. As costs decrease and standards are adopted, the technology will be introduced more and more, the implementation of any standard begins gradually, but then growth comes - said Buchholz

Notes