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When it comes to Logistics 4.0, many people think of automation and artificial intelligence. But what exactly does this mean? On closer inspection, the term refers to a wide range of developments that are of key importance to the transportation industry. SpediFux explains the most important trends.
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Analogous to Industry 4.0, the Logistics 4.0 concept refers to the use of digitalization and innovative technology in the transport sector. IT-supported transport management, RFID cards, delivery drones or networking through programming interfaces are just a few examples of this. Overall, the aim is to make the previously rather rigid industry more flexible and dynamic.
And that is sorely needed: the transportation sector is very fragmented, with numerous companies involved in every delivery. Logistics still works in a very analog way to a large extent, which is accompanied by a high level of intransparency and inefficiency. In addition, logistics is already heavily integrated into production processes and industrial supply chains as a result of the increasing demands for just-in-time production and on-demand deliveries. Digital networking is becoming a necessity not only across companies, but also across industries.
As the heart of national and global goods transportation, logistics is in close contact with almost all sectors of the economy. To ensure smooth future cooperation, transport companies must therefore always be up to date and look beyond their own industry in order to remain competitive. So what about progress?
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Digitalization has arrived in almost all areas of life. This also applies to the world of logistics and transportation. Online services such as SpediFux tracking are just one small example of the link between the virtual and real worlds. We have already analyzed a few others in our blog.
The areas of application for Logistics 4.0 are diverse: digital twins, for example, are used to create model-like images of reality that can be used to virtually simulate and continuously improve real processes. Digital documents can be used to track and trace transported goods in real time. In cyber-physical systems, interconnected physical devices can exchange sensor data. Programming interfaces (so-called APIs) enable simple networking with other companies.
Even pioneering technologies such as autonomous driving and transportation drones are no longer castles in the air. Numerous field trials by young tech start-ups and professional industry giants prove this. At some point, artificial intelligence could even replace most human decisions in the transportation process. But even beyond the media frenzy surrounding prestigious pilot projects, companies of all sizes and from all sectors are increasingly turning to digital solutions in all areas.
There is no question that we are on the right track. Nevertheless, there is still room for improvement. For example, German industry representatives recently announced the transition to digital delivery bills. Basically positive: the digital delivery bill has immense advantages for everyone involved. However, the question arises as to why the change was not initiated earlier. According to the recently published Digitalization Index 2021, logistics and transport still have some catching up to do.
Of course, the introduction of new concepts always takes time. After all, Rome wasn't built in a day either. However, despite the ability to expand on a small scale, the modernization trend can be seen on the whole.
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Adapting to the digital age is essential for transport companies to remain competitive. Apart from this, Logistics 4.0 also offers numerous innovations and opportunities to optimize existing processes and make work more efficient.
Logistics and transport management systems now work with large volumes of data that can be analyzed in detail. These analyses can be used to make precise statements about future deliveries, storage times, etc. In many places, intelligent algorithms use previous journeys and the current traffic situation to optimize routes for future transports or combine several smaller deliveries into one tour. Digital storage systems act autonomously and can request replenishments in good time when material stocks run low to prevent bottlenecks.
Above all, companies benefit from lower costs. By reducing empty runs and utilizing transport volumes, empty runs are also avoided. This makes logistics more sustainable and greener overall.
Many intermediate steps and background processes relating to ordering and delivery are now automated and therefore not tied to regular opening or working hours. Here's an example from everyday life: while browsing late in the evening, you come across a fashion store whose local branch is already closed. You find what you are looking for in the online store and order it by overnight express before you go to bed. The next day, you receive your package on time after work with the clothes you ordered, which you can wear straight away to your evening appointment.
What is a common situation for many people today is only possible thanks to modern technology. Before digitalization, all steps had to be carried out analogue and in person and, in our example, you would have failed because of the store's opening hours. IT systems, on the other hand, work continuously. They can also process many inquiries in parallel in the shortest possible time and forward information independently. By analogy, imagine a store in the city center on a Saturday or before public holidays. The advantages of highly digital concepts are clear here.
However, it is likely that the human factor will remain irreplaceable for the foreseeable future. This applies to logistics and the economy in general. However, digital support and optimization will make work processes significantly more efficient, more resilient and easier to scale.
Orders and deliveries are now accompanied by continuous data streams. Everyone involved can call up the current status around the clock. This includes, for example, drivers being able to report delays in heavy traffic in real time. Many transport companies transmit photos of the goods during loading and unloading to make any damage clearly traceable. This also makes pricing clearer and more transparent, as the services provided can be clearly documented. This simplifies communication between companies and customers enormously and avoids ambiguities.
There are also numerous advantages here for the omnipresent topic of sustainability. For many customers, their own ecological footprint has become an important criterion. That is why SpediFux offers a so-called Greenscore, for example, in addition to the typical tracking and information services for a delivery. This means that customers and partners always have an overview of their carbon footprint.
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Logistics 4.0 offers countless possibilities. Not all technologies are ready for use yet. Nevertheless, the trends are clear. Transportation and deliveries will become more dynamic and flexible in the future. This is how companies are responding to the challenges of a globally networked and increasingly digitalized economy. However, the industry must not miss the boat. In addition to the positive developments, there is still plenty of room for improvement in many areas.
That's why SpediFux is always up to date. We offer smart transportation services, simply and digitally - and keep up with the times.
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