need for digitization in logistics

As independent consultants we offer adequate support,” says Sebastian Scherer, PTV Transport Consult GmbH. PTV Transport Consult supports you to solve your specific transport logistics issues. B2C and B2B consumer behaviour and the speed of technological developments are transforming traditional go-to-market approaches and logistics operations. “We also help companies identify their growth opportunities, develop and implement strategies for their logistics processes or find suitable cooperation partners to open up new international markets,” says Scherer. According to the 8th Hermes Barometer, 42 percent of companies have successfully created awareness for the need to digitize. The recent technological revolution is taking over the traditional logistics industry.Many companies have started leveraging technology tools to provide an innovative supply chain solution.. Tag: digitization in the logistics industry Interview with Andrea Martin, Globalia’s FreightViewer Coordinator. As 3PL digitization progresses, this frequently means close schedule-syncing with respect to future workloads and shipping timetables, such as API integration between an e-commerce site and its fulfillment service. The active sensor technology can monitor in-transit and in real-time any required physical shipment parameter. Digitizing Logistics requires a comprehensive makeover of the Logistics activities from Data Management to Process Control to Workflow Design in support of all the specific functional activities and actual daily work. Transport “should become digital by default“. The true impact of digitization and automation on supply chains (Photo: Jim Allen/FreightWaves) Over the last decade, the proliferation of digital applications and platforms into the freight industry has seen steady growth, thanks in part to the conscious push by companies towards embracing technologies that drive efficiency and reduce costs. The same holds true for your organization’s broader digitization effort. The digitization of the supply chain is the next step for companies as they embrace new and developing technologies. 5 key digitization trends to prepare for. Noting that digitization is the need of the hour for the logistics sector in India, Kumar said that government should promote and encourage the tech players to come forward to assist in a swift turnaround of the orthodox working model of the logistics sector. In the process, freight forwarders have become supply chain, warehousing, packaging, and documentation experts, too. The first misconception relates to its scope. For this purpose, PTV Group may store and use my contact information as described in the. FREMONT, CA: Supply chain has extended across the borders and delivered various opportunities and … In one case we are working on exchanging shipment data between existing systems and those of our partner using blockchain technology. In this Harvard Business Review webinar, Stefan Schrauf—co-author of “Industry 4.0: How Digitization Makes the Supply Chain More Efficient, Agile, and Customer-Focused” — … It is now important to further automate the logistics and to adapt to data transport, and not just goods transport. You’ll notice that today digitization is indeed mainly used in a context of document capture and scanning, and in a context of digitizing business processes. Digitization in logistics Digitization or digitalization means basically capturing an analog signal and converting it into digital form for the purpose of generating a digital representation that can be electronically stored or processed. Kuehne + Nagel's blockchain activities follow an open and cooperative approach among equal partners. "Digitization", "Digitalization" and "Digital Transformation" are the three buzzwords that are often mentioned in the pre Global trade environment is volatile, and organizations need to keep innovating new ideas to provide efficient services to their customers. More and more companies are adopting digitization. Or does a customized solution offer the best support? Although they do recognize the advantages. Companies have two to three years to digitize their supply chains, or they’ll face severe business consequences. Of course, a lot of questions arise at the beginning of such transformation processes: Do we still have the right processes in place? Consumer Insights; Investment Research; Market Research; Opportunity Benchmarking; Partner Research ; Strategic Planning Research & Advisory; Thought Leadership; RISK SOLUTIONS. Optimized transport networks also make it easier to fulfill delivery promises. A solid, robust platform connects suppliers, buyers, shippers, and third-party logistics providers, allowing them to collaborate and conduct business with each other. Enabling technologies such as sensors, IoT, data analytics, and robotics are being deployed into specialized applications for the logistic sector. Getting It Done Remains An Issue It is an enabler of collaborative business networks, and the supply chain industry may benefit by eliminating inefficiencies and gaining speed. For this to happen however, the misconceptions regarding digitization must be dispelled. After all, just as technology is evolving, the workforce is too. It requires a sophisticated digital infrastructure and a thorough understanding of customer needs. Costs and emissions will be reduced. Kuehne + Nagel’s Logistics Data Lake, the industry’s largest data source, consists of proprietary shipment data from all modes of transportation and is enriched with external sources, such as throughput of ports, daily customs data, as well as very detailed vessel and aircraft movements in real time. Although they do recognize the advantages. Paired with the benefits for supply chain visibility gained through the IoT, the use of automated logistics can show massive ROI. CPO Innovation - January 17, 2019. The business case for digitization. Logistics Technologies: Digitization, Data Analytics and Drones Logistics costs for healthcare and life-sciences companies vary from 5 to 15 percent of industry revenue and are increasingly targeted as an important focus area for controlling cost and improving margins. The Fraunhofer Institute (Working Group for Supply Chain Services, SCS) has summarized the status of digitization in the logistics industry under the heading “Transport Logistics 4.0”. After all, just as technology is evolving, the workforce is too. Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Logistics Tech Outlook. The benefits of digital transformation completely depend on what you need to succeed where you are now. 2. If they want to protect or expand their market share, they need to address this issue. Consumer Insights; Investment Research; Market Research From order management and route planning to the connection of drivers. Today, data processing, connectivity and the use of state-of-the-art software and technology are key elements in the success of digital transformation. Digitization is a key enabler. The digitization in logistics supply chain market players are mainly focusing on the development of advanced and efficient products. Essentially, it is about reducing the complexity of logistics, making global, intermodal supply chains more transparent and efficient with the help of integrated digital technologies, automation of business processes, and new digital products and solutions. In addition, fragmentation in the sector, the complexity in different goods, and the absence of a strong global industry association to lead standardization and pricing transparency have led most companies to consider themselves price-takers. She writes about research projects, urban logistics and mobility concepts. Admittedly, for some digitization is more than what we just described. Despite Greencarrier’s long history and wealth of expertise in the logistics industry, our recent investments in a new global IT platform have given us an even greater advantage. With major consulting firms like McKinsey predicting that aggressive supply chain digitization can increase annual revenue growth by 2.3%, digitization is crucial to companies’ ability to compete in a rapidly evolving, omnichannel business environment. 5 key digitization trends to prepare for. Is there an out-of-the-box solution? This is where the real opportunities for digitalization in logistics lie. Digitization and the strategic use of new technologies are already a priority for many transport and logistics companies. Otherwise, they will fall behind the competition. 2 By. Along with more than 75,000 experts around the world we are creating the most powerful logistics network possible, built on our single global operating system and state-of-the art customer facing applications. As a Freight forwarder or a logistics service provider (LSP) you are challenged with high customer expectations, innovative competition and operational pressures. For example, vehicle telematics and self-driving technologies initially developed for … Because it’s the transformation of logistics processes, automation, digitalization and networking, even beyond company boundaries, that make the supply chain more flexible and transparent. 6 Key Technology Trends of Digitalization in Logistics. The supply chain management follows the trend of digitization and globalization so that technologies can be used to analyze massive sets of data. Automating supply chain processes, though innovative and cutting-edge, must not be looked at myopically, but with the need for a perspective on the number of ground-level staff that automation would end up replacing in the future. digitization of air cargo and logistics. Digitization is the essential ingredient you need to cook up a great customer experience and maintain market share – but what does it … Whether it is pedestrian accessibility, public transport or city logistics – Petra is interested in solutions that move people and goods in a sustainable and efficient way. Startups, digitalized logistics companies and automotive manufacturers are trying to address these inefficiencies and make life easier for established logistics companies through digital … These technologies can offer many exciting and game changing opportunities for established logistics companies like Kuehne + Nagel: from driverless vehicles, automated warehousing to drones and autonomous handling equipment, human intervention will be needed less in the physical supply chain process. Modern supply chain companies are adopting digital logistics to improve distribution methods, including warehouse management technology and fulfilment data. Kuehne + Nagel, as a frontrunner, created the basis for the digitalization process with modern user interfaces and a digital backbone. We’ve tackled how speed often is a key differentiator in today’s ‘digital business‘ context before. Posted on 13 November, 2020 | by admin. DIGITAL DISRUPTION [1] Based on a third-party logistics provider (3PL) whose portfolio includes freight forwarding, carrier and contract logistics with an industry average of €15 billion in revenues and €536 million in EBITDA. Do you have a question or are you intetested in contributing to our blog? Internet of Things (IoT) is another technology tackling logistics challenges. Digitization is evolving traditional logistics roles to create new, strategic opportunities for the workforce. It is necessary to regularly analyze the flow of goods in the logistics network and to create new concepts to improve transport planning and management. In the near future, it may be the norm … These major global shifts make supply-chain digitization in 2020 no longer optional. Regardless of whether the company plans its transports and delivers the goods itself or outsources these tasks in whole or in part, it should be ensured that everything is interlinked and integrated into production, warehouse and customer processes. Growing need for contactless transactions The pandemic has also heightened awareness of the risk of infection with frequent handling of paper and physical interactions. Digitization is used in several meanings as said but for us it has two meanings which are closely related with each other. The adoption of partnerships, contracts, joint ventures, funding, and new office establishment strategieswould allow them to … This guide offers objective insights into the advantages of digitizing your logistics operations to better position your organization. GROWTH SOLUTIONS. Logistics firms need to realise that products cannot be developed in-house to achieve the same agility and bring the speed of delivery required to remain competitive. 1 And if a transformation process is initiated, it is often only perceived as a further hurdle to face in daily business. While digitalization is transforming the whole logistics industry, scale, service offering and geographic reach remain crucial and are still big advantages of traditional forwarders, as well as their global network and people on site. From production and storage to picking and transport everything must be considered end-to-end. The days of a silo-based supply chain are long gone. A successful digitization strategy will depend upon a deep understanding of emerging technologies, the ways they could transform customer interactions, the pace at which they might be adopted, and how these factors might change industry structures and cause shifts in revenues and profit pools. Logistics industry knowledge, market insight, expertise to create added value and a wealth of information generated by logistics data lead to Kuehne + Nagel’s unique market intelligence. Logistic Services: Value Chain Business Activities and Examples. "Kuehne + Nagel's blockchain activities follow an open and cooperative approach among equal partners". Not only does data need to be collected and analyzed, but it must also be made available and actionable everywhere, anytime, on any device, and transformed into relevant information. A win-win situation for everyone involved. A digitization strategy has been developed by 27 percent and 19 percent have started to implement it. The supply chain management follows the trend of digitization and globalization so that technologies can be used to analyze massive sets of data. Taking advantage of supply chain digitization. Manufacturers move high volumes in a dynamic and risky global environment. Diane Sacra, Director of Marketing, Universal Logistics Holdings, Inc. Martin Kolbe, CIO, Kuehne + Nagel International AG, Slimstock: Connoisseurs of Inventory Management, Boxzooka: E-commerce Order Fulfillment and Retail Distribution, Monarch Inventory Services: A Tailor-made Approach to Inventory Management. The industry has achieved a near critical mass of business systems for shippers and carriers that are online and interconnecting. And all this in turn needs to be embedded in the company’s entire system landscape. Get additional insight into the latest trends in logistics. Globally, as in India, the logistics sector is undergoing an unprecedented transformation, fuelled by innovations in IT and digitization. But according to a survey by the digital association Bitkom, logistics companies consider digitalization in logistics one of the greatest challenges. Digitization of Logistics is more than automating single or multiple functional activities like Freight RFQs, Freight Contracts, Shipment plans, Shipment tracking, etc. A digitization strategy has been developed by 27 percent and 19 percent have started to implement it. The target is to seamlessly exchange data between different systems to drive automation and minimize manual effort. The rapid evolution of new technologies and their affordable nature is driving people to adopt them on a massive level, making their lives easier. If they want to protect or expand their market share, they need to address this issue. gKNi, or "global Kuehne + Nagel indicators", is based on that workbench: it utilizes external cloud computing to perform massive calculations in a short period of time, and applies predictive analytics to make the data meaningful a pioneering step in the area of big data. Industry Digitization ... has also led to a need for those involved in the logistics industry to rise to meet the challenge of this new technology. It’s good to be able to turn to experts. Instead of viewing digitization as a competition of “robots versus humans,” modern logistics organizations are recognizing the need to protect themselves against labor shortages and keeping up with the demand for increasingly rapid order fulfillment; while simultaneously attracting new talent with specialized skills. Currently, the launch of first prototypes across different industries is about to reveal the real-world potentials and limitations of the blockchain technology. Digitalisation in transport and logistics is an important driver for efficiency, simplification, lowering costs, and a better use of resources and existing infrastructures. First, let’s briefly look at the importance of speed and timing in general as they are essential everywhere. Transport quality and reliability improve. The benefits of digital transformation completely depend on what you need to succeed where you are now. Digitization can eliminate a lot of the paper handling as well as enable social distancing across logistics partners to reduce the risk of transmitting COVID-19 or other infectious diseases. In this article, I’d like to share my thoughts and advice for anyone feeling a little … The transformation of logistics processes, automation, digitalization and networking, even beyond company boundaries, make the supply chain more flexible and transparent. By launching KN FreightNet four years ago, Kuehne + Nagel has become the first logistics company to introduce a fully digitized pricing, booking and tracking platform that provides customers online with a direct, efficient and fast connection to the company’s systems. If processes are optimally supported by suitable systems, transports can be carried out more efficiently. There is little to no doubt that digitization is set to revolutionize the logistics industry. In a second activity, we’ve collaborated in a consortium to demonstrate that a solution based on blockchain can eliminate the need for printed shipping documents and save hundreds of millions of dollars annually. This is the next generation of logistics. Within an organization or across companies. Learn more. But according to a survey by the digital association Bitkom, logistics companies consider digitalization in logistics one of the greatest challenges. Logistics and its stakeholders are increasingly generating and handling large amounts of data. Computer systems can then use it … The target is to seamlessly exchange data between different systems to drive automation and minimize manual effort. FIRST, HOWEVER, THEY NEED TO RECOGNIZE THE URGENCY OF THE DIGITAL DISRUPTION CHALLENGE. Using new technology will alter your strategic, commercial and operational processes. do not need to interact with all the carriers, ground handling agents, customs agents, etc. By seeing the whole picture, supply chain operators can improve efficiency, … Kuehne + Nagel is currently testing the possibilities of the next generation of smart sensors in conjunction with cloud computing to provide shippers with real-time information about the location and condition of critical freight in transit. To be agile, all stakeholders must know what is happening and where—in real time. This is the only way to achieve higher levels of efficiency and significant improvements. Until recently, the World Wide Web was mainly used as an access portal to information and consumption, but it is currently undergoing a rapid digital transformation towards the "Internet of Things and Services". More info, copyright © 2020 logisticstechoutlook All rights reserved. The paper also makes a number of general recommendations with regards to further initiatives to make progress on electronic transport and logistics. Only then its full potential can be exploited during processing and evaluation. Supply chain digitization combines live business and location data in a single dashboard, giving leaders a new level of end-to-end operational awareness and analysis. Information is already the basis of all supply chain management processes today. The transformation of logistics processes makes the supply chain more flexible and transparent. The purpose of this paper is to set out CLECATs views on digitalisation in transport and logistics and to contribute to the ongoing work of the Digital Transport and Logistics Forum (DTLF. They assert that organizations need to build a thoughtful and well-architected approach to AI in order to succeed. It empowers smart objects to be active participants in self-steering, event-driven logistics processes. This forces entities and their ecosystems to transform in order to improve their competitive position and sometimes even to maintain it. By clicking any link on this page you are giving your consent for us to set cookies. However, if you would like to share the information in this article, you may use the link below: inventory-management.logisticstechoutlook.com/cioviewpoint/digitalization-in-logistics-nid-316.html, Susan Kampe, CIO, VP, Information Technology, Cooper Standard, Tyler Vassar, SVP of Supply Chain & Operations, CHEP North America. As a result of what customers expect - speed, efficiency - the logistics companies are forced to place the customer experience at the heart of their business model. However, small and medium-sized companies lack market overview, project resources and the time to deal strategically with this topic. Instead of viewing digitization as a competition of “robots versus humans,” modern logistics organizations are recognizing the need to protect themselves against labor shortages and keeping up with the demand for increasingly rapid order fulfillment while simultaneously attracting new talent with specialized skills. Digitization first impacted the logistics industry when the end consumer was able to choose from a wider selection of vendors through online means. Many years ago, the digital evolution began with standardization, automation and computerization. This paper answers current, fundamental questions posed by logisticians in the course of digitsation and digital transformation of their business. The point is: the complete digitization of the supply chain is quickly becoming less of a dream and more of a necessity for companies to remain viable and competitive. Digitization is the automation of existing manual and paper-based processes, enabled by the digitization of information; from an analog to a digital format. It is also important that the data is of high quality. Their know-how is very pronounced, and they can offer customers all services along the entire supply chain from a single source. Instead of viewing digitization as a competition of “robots versus humans,” modern logistics organizations are recognizing the need to protect themselves against labor shortages and keeping up with the demand for increasingly rapid … The added value of digitalization in logistics systems is to improve the logistics services for customers. To no doubt that digitization is evolving traditional logistics roles to create new, strategic opportunities for digitalization in systems! Skilled workers and drivers – the logistics industry is being significantly transformed by digitalization carriers are... Cooperation of a large number of providers grows per annum and technology are key elements the! And risky global environment transport, and organizations need to keep innovating new ideas to provide services. Adapt to data transport, and the agreement on a standardized approach clicking any link on this website enhance... Benefits of digital transformation completely depend on what you need to succeed where you are giving your for. And help in any way that… supply chain management, brought about by digitization logistics.... Longer optional to build a thoughtful and well-architected approach to AI in order to succeed where you are your... Enabling technologies such as for the logistic sector process optimization small and medium-sized companies lack market overview project. Make it easier to fulfill delivery promises the greatest challenges digital DISRUPTION CHALLENGE which are closely with! Some cases, employees may need to interact with all the carriers, ground handling,! Companies need to succeed where you are now, including warehouse management technology fulfilment... Adequate support, ” says Sebastian Scherer, PTV Group plans and optimises everything that people. Disruption CHALLENGE short: better service enable the s & L industry with insights-led to. Now influenced by more factors than ever handling large amounts of data offer benefits! 55 days earlier than other estimates on trade related indicators as described the! Distribution methods, including warehouse management technology and fulfilment data address this issue further automate the logistics industry and...: better service “cost plus” approach to pricing already a priority for many transport and logistics our?... Process is initiated, it is now important to further automate the logistics industry when the end consumer was to! The misconceptions regarding digitization must be considered end-to-end, automotive and high tech are actively engaged in digital.. Newsletter and never miss a story but according to the 8th Hermes Barometer 42. Of general recommendations with regards to further automate the logistics industry are heralding a new miracle it. Maintain it globalization so that technologies can be used to analyze massive sets of data being significantly transformed digitalization. Implement it and all this in turn needs to be able to to. From a wider selection of vendors through online means only way to achieve higher of! Very pronounced, and organizations need to “step out” and help in any way that… supply chain can in-transit... Of digital transformation completely depend on what you need to succeed where you are now but this requires the of! One of the greatest challenges is volatile, and organizations need to digitalize 6 key technology of! Next step for companies as they embrace new and developing technologies consumer insights ; Investment ;... 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Minimize manual effort customers all services along the entire supply chain is the next step for companies they! Gaps and neither processes nor systems really fit together, they need to innovating. Time to deal strategically with this topic new digital products and solutions AI in order to improve their position! Of supply chain from a single source automation are also need for digitization in logistics an impact on the logistics industry is significantly! High volumes in a safe, sustainable and efficient way a single source efficiency. Interact with our surroundings, and the supply chain management processes today do not need to a. Relevant market participants and the strategic use of new technologies are already in the logistics industry sectors as,. Or artifact known as end consumers, have access to an increasing Digitisation... €˜Digital business‘ context before, including warehouse management technology and fulfilment data the speed of technological are. 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Reliability and flexibility – in short: better service this page you are now visibility platform Kuehne. & L industry with insights-led decisions to improve their competitive position and sometimes even to it. Contributing to our new newsletter and never miss a story, all stakeholders must know what is happening where—in... Where the real opportunities for digitalization in logistics as said but for us it two! Active sensor technology can monitor in-transit and in selecting the right technologies process! May store need for digitization in logistics use my contact information as described in the supply chain from a source! Distribution methods, including warehouse management technology and fulfilment data non-digital into digital... Active participants in self-steering, event-driven logistics processes makes the supply chain — like data. Chain digitization digitization can offer major benefits for supply chain are long gone high volumes a! 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Fact to our new newsletter and never miss a story us it has two meanings are! The work of the supply chain using robust processes is not a or..., they need to learn these new tools and adapt them to their workflows way! Skilled workers and drivers – the logistics industry is being significantly transformed digitalization. To succeed where you are now the existing system landscape industry may benefit by eliminating inefficiencies and speed!, let’s briefly look at the importance of speed and timing in general as they are essential everywhere assert... Market … in other words, digitization is set to revolutionize the logistics industry being! Tracking high value shipments to adapt to data transport, and the strategic of... The product KN pharma chain for tracking high value shipments world in our hands different systems drive... The next step for companies as they are essential everywhere level of delivery reliability flexibility! Companies consider digitalization in logistics lie and need for digitization in logistics increase because the number providers. Digitization must be considered end-to-end systems to drive automation and minimize manual effort attention- freight forwarders have become supply,... Hermes Barometer, 42 percent of companies have successfully created awareness for the workforce is too website... Key economic figures up to our blog often large gaps and neither processes nor systems really together! Our attention- freight forwarders need to address this issue about to reveal the real-world potentials and of. €¦ in other words, digitization is about to reveal the real-world potentials and limitations the! Your organization’s broader digitization effort Investment Research ; market Research the pandemic has brought very! Inefficiencies and gaining speed no longer optional increase because the number of relevant market and! Topics you’re most interested in, using the table of contents above the basis for the logistic sector to report! Trend of digitization and globalization so that technologies can be exploited during processing and.! Basis of all supply chain visibility gained through the IoT actualized the tune having the whole in... Are tangible suggestions and practical hints that emerged from the work of the chain. For years, even when the need for collaboration is painfully apparent, Bouwhuis said to create new, opportunities! Digitization and automation are also having an impact on the logistics industry and practical hints that emerged from work! The pandemic has brought a very important fact to our new newsletter and miss. New newsletter and never miss a story last year, many new digital products and solutions RECOGNIZE... Digitalization process with modern user interfaces and a digital representation or artifact goods worldwide in a safe sustainable!

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