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Moving towards the future: How Logistics 4.0 can improve supply chain resilience


In an ever-evolving world, the logistics industry is no exception to the winds of change. The emergence of Logistics 4.0, a shift driven by technological innovation and data-driven decision-making, is revolutionising the way companies manage their supply chains. Supply chain resilience and visibility are at the heart of this transformation, with data emerging as a central player to release its true potential. In this article, we will delve into the various aspects of Logistics 4.0 and explore how it can reinforce supply chain resilience through real-time data, cloud-based platforms, IoT, AI, machine learning, and blockchain technology.

Real-time data and analytics

One of the pillars of Logistics 4.0 is the utilisation of real-time data and analytics to provide organisations with immediate visibility of their supply chains. From suppliers to end customers, this real-time insight enables companies to swiftly identify and respond to disruptions. By making data-driven decisions, organisations can optimise their supply chain operations for maximum efficiency and profitability. This newfound agility is a game-changer, especially in an era where supply chain disruptions have become increasingly common.

You can learn more about digital twins and real-time data in our guide.

Cloud-based platforms

Centralising supply chain data on cloud-based platforms is another vital component of Logistics 4.0. This approach ensures that all stakeholders have access to real-time data, fostering greater transparency and enabling collaboration. With everyone on the same page, organisations can identify and resolve issues, preventing minor hiccups from snowballing into major problems. Cloud-based platforms offer the flexibility and scalability needed to adapt to the ever-changing demands of modern supply chains.

IoT and sensors

The Internet of Things (IoT) and sensor technology are key enablers of real-time visibility within Logistics 4.0. These technologies provide constant updates on inventory levels, shipment locations, and other critical data points. This real-time insight empowers organisations to proactively address issues before they escalate into significant disruptions. For instance, our fully-autonomous robots scan your inventory on a daily basis, transmitting real-time inventory data into our analytics system, DexoryView.

Artificial intelligence and machine learning

AI and machine learning are employed in Logistics 4.0 to analyse vast amounts of supply chain data, identifying patterns and trends that may go unnoticed by human analysts e.g., order, inventory, customer, risk, financial data. This allows organisations to make data-driven decisions and proactively address potential disruptions. Predictive maintenance of equipment, demand forecasting, and route optimisation are just a few examples of how AI can enhance supply chain operations.

Blockchain technology

Blockchain technology provides a secure and transparent means of tracking products throughout the supply chain. It ensures authenticity, traceability, and accountability, making it a valuable tool for combating counterfeiting and ensuring product integrity.

Why organisations should pay more attention to data for enhancing growth strategies

Adopting Logistics 4.0 isn't just about implementing new technologies, it's a strategic shift that can redefine a company's growth trajectory. Here's how companies can utilise data to strengthen their supply chains:

Full transparency

Digitising the supply chain is just the first step. To optimise operations and improve efficiency, companies must ensure that all stakeholders have access to real-time data. Full transparency enables better collaboration, problem-solving and decision-making, ultimately leading to a more resilient supply chain.

Organisations can do this by investing in a unified digital supply chain platform that integrates all aspects of its supply chain, by sharing real-time data to stakeholders with a dashboard tailored to their role or standardising data formats ensuring all data from diverse sources can be easily understood by all. It ensures that information from various sources is not only accessible but also presented in a clear and visually informative manner, moving beyond the numerical data-centric approach typically associated with Warehouse Management Systems (WMS).

Data infrastructure

To eradicate data silos and individual systems, companies should invest in creating a data infrastructure that consolidates real-time data from all sources. This unified approach ensures that decision-makers have a comprehensive view of the supply chain, enabling them to make informed choices.

Analytical environment

By using data analytics tools and techniques, organisations can gain insights and identify trends e.g., they can pinpoint inefficiencies and opportunities for improvement, leading to data-driven decisions that optimise their supply chain.

Predictive analytics

Companies can anticipate supply chain disruptions, optimise inventory levels, and enhance delivery accuracy. Predictive analytics not only reduces costs but also minimises waste and improves customer satisfaction.

Training and development

Offering training on data analytics tools and techniques and fostering a data-driven culture within the organisation allows employees to make better use of data for decision-making.

In summary, Logistics 4.0 represents a transformative journey towards a more resilient and efficient supply chain ecosystem. By adopting real-time data, cloud-based platforms, IoT, AI, machine learning, and blockchain technology, companies can thrive in an increasingly complex business environment. To fully reap the benefits of Logistics 4.0, organisations must commit to a culture of data-driven decision-making and invest in the necessary tools and training.

Read more on the power of data in Logistics 4.0 in our latest guide:

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This company has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement number 849938