Digitalization in logistics: What it is and how Logistics 4.0 works
The phenomenon of digitalization is influencing companies in all fields. Logistics is one of the sectors where software applications have brought about major transformations, with impressive results in terms of efficiency, transparency and predictability. We will now present the role that digitalization plays in Logistics 4.0 and what it means.
After the initial industrial revolution marked by mechanization (Logistics 1.0), followed by the discovery of electricity (2.0), mankind created the first software programs making a new leap, this time into the age of digitization/digitalization (3.0).
Digitalization in logistics means adapting processes or workflows so that they can be controlled or coordinated via the Internet and specific devices (laptops, mobile computers, etc.). In other words, it means implementing software solutions, interconnecting applications and combining software and hardware solutions. Digitalization helps streamline workflows, speeds up processes and, indirectly, contributes to the diversification of the range of services offered by companies.
The importance of digitalization cannot be downplayed in any way as the findings of ‘stage’ 3.0 are the foundation of Industry 4.0 and, by extension, Logistics 4.0.
Logistics 4.0 refers to the integration of complex process management and optimization software solutions into the supply chain, and the use of Artificial Intelligence (AI-Artificial Intelligence), Big Data and the Internet of Things (IoT).
Artificial intelligence for digitalization in logistics
Artificial intelligence refers to software applications and systems that perform complex tasks previously performed by humans. AI also includes devices or machines that imitate human intelligence to perform programmable operations.
Cloud computing technology solutions and advanced algorithm-based software are needed to implement AI solutions. Artificial intelligence applied to specific business activities has adaptive intelligence characteristics, combining real-time internal and external data through a scalable computing infrastructure.
Digitalization in logistics is based on the application of AI elements to automate and optimize operations across the supply chain.
Technologies and software applications for digitalization in logistics
Blockchain technology
Blockchain technology, based on the real-time exchange of verifiable ‘blocks’ of data, is implemented for a more efficient supply chain management. Traceability is improved and more efficient logistics operations are carried out in a secure, transparent and controlled way.
Barriers along the supply chain are removed and picking, warehousing, handling, transport and delivery activities are fully automated.
Blockchain technologies can be combined with IoT to develop real-time monitoring systems for deliveries through digital sensors attached to goods. This reduces delivery time, allows for fast and up-to-date inventories that provide complete data on available stocks, including the history of items stored in warehouses (previous locations, storage times, special storage conditions, etc.).
Logistics robots
The use of AI robots has expanded vertiginously in recent years. In our daily lives, we either “talk” to them when we have a problem with our phone, or ask them to write us a text after dictation, for example. Or they track us and manipulate us, analyzing our internet traffic and bombarding us with ads. Their algorithms may ‘learn’ from our interactions with them, but we have also have our guard up, learning how to exploit their capabilities in different areas.
Let’s get back to logistics… Axes Software uses a suite of xTrack WMS robots that take over repetitive tasks from warehouse managers and help increase efficiency. In this way, a better allocation of manpower can be achieved and human decision-makers can focus on strategies to optimize activities. The names of these robots reflect their main functions.
Task Generator
Task Generator automatically identifies and creates logistics tasks according to specific criteria set at each warehouse level, without assigning them to any worker.
Task Manager
Task Manager orders the tasks created by Task Generator and checks them continuously, acting as a quality controller and regulator of all the activities in the warehouse.
Task Allocator
The Task Allocator is in charge of allocating the tasks continuously transmitted by the Task Manager according to skills and priorities, in order to optimize activities and reduce the number of mistakes, delivery errors and returns.
Virtual logistics planning
Virtual logistics planning is a high-performance computer technology based on Artificial Intelligence. It allows 3D scans to be made, which can identify objects in warehouses and transport vehicles (containers, pallets, parcels, building structures or machinery).
This optimizes storage and transport spaces and ensures that goods are allocated correctly and quickly. By simulating and evaluating layout changes in storage facilities, a higher level of efficiency in warehouse organization and optimal use of available space are achieved.
How digitalization benefits logistics
The main benefits that digitalization brings to this field are:
- reduced execution time of logistics activities;
- increased speed of delivery of goods;
- optimization of transport routes;
- lower transport and maintenance costs;
- fewer losses due to logistical errors and delays that can occur in the supply chain;
- greater transparency of logistics operations by ensuring traceability;
- improved quality of logistics services;
- environment protection;
- higher profitability of activities throughout the supply chain.
How Logistics 4.0 works
Logistics 4.0 is the result of applying Industry 4.0 principles to logistics. Interconnecting customers, processes, devices, material resources used and supply chain partners through a digital network to ensure continuous communication and precise control of workflows by integrating innovative technologies can make a decisive contribution to increasing a company’s efficiency, performance and competitiveness.
Digitalization in logistics means the intelligent use of technology and depends on three main elements: strategy, process and tools. In an economy increasingly based on electronic transactions, adapting supply chain activities has become a necessity for developing a new way of organizing businesses.
With Logistics 4.0, the supply chain is becoming increasingly ‘smarter’, more technologically advanced and more integrated into a network that manages it efficiently, while allowing its constituent parts to operate independently.
The components of the management system gradually become self-regulating, make decisions and “learn” from each other as they are constantly communicating. Logistics 4.0 therefore results in greater transparency, significant simplification of processes and a much lower error rate in the activities that are carried out.
Automation and business optimization throughout the supply chain, coupled with the AI component of data collection and ‘learning’ are key elements that will promote the increasingly widespread deployment of AI solutions and the integration of innovative technologies. Why? Simple. All managers want real-time visibility of processes, resources and activities.
Axes Software provides complex solutions for managing logistics activities in the areas of production, warehousing, transport and delivery. For further information, you can send us a message by filling in any form on our website. And we will get back to you!
