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May 01, 2021

SUPPLY CHAIN MANAGEMENT 2040 HOW WILL LOGISTICS CHANGE IN THE FUTURE?

Very good paper - Link

Key Notes (Copied/ summarized)

The impact areas are
  • Technology (from IoT to autonomous driving),
  • Value Add (from on-the-go production to product monitoring),
  • Control Tower (from central planning and control unit to asset sharing along the supply chain) 
  • Green Logistics (from emission avoidance to return logistics).
Four major future trends
  • Modern sensors enable self-controlling products in the supply chain
  • Logistics data in real time (e.g. through IoT and 5G) will significantly improve order processing and logistics processes
  • Digital services 
  • Parallelization of production / Transport
  • Participants

  • Supply chain management looks at the cross-company material flow, from the raw resources to the finished products, and optimizes all transport processes along the value chain
  • The goal is cost-efficient planning
  • Chain to dynamic networks transformation

Influencing Factors
  • Demographic changes
  • Digitization / connectivity
  • Globalization
  • Urbanization
  • Mobility
  • Knowledge culture and information society
Cause and Impact
Technology (production and IT technology) 
  • Future manufacturing processes
  • The guiding principle of "Uberization"
Value Add (market-expanding additional services)
  • IoT in means of transport and load carriers
Control Tower (central collaboration center)
  • Centralization could regulate the flow and exchange of relevant data in a comprehensive and, most importantly, neutral manner
Green Logistics (ecological sustainability) 

Technology
  • Machine learning, deep learning and predictive analytics
  • Improve the accuracy of the demand forecast
  • Identify anomalies in manufacturing accuracy
  • Reduced freight costs
  • Avoidance of empty runs and dynamic route optimization
  • Another step in the field of artificial intelligence is
  • self-learning algorithms: these learn from their positive and negative decisions and thus increase their prediction and decision quality over time

  • Especially autonomous loading via OneShot-Loading and the subsequent autonomous unloading at the destination increase the autonomy.


Value Add




Control Tower
  • Central data storage
  • Orchestration and support for worldwide supply chains of country-specific regulations
  • Exchange / trading of data
  • Uberization for means of transport, load carriers
  • Cross-vendor orchestration and last mile optimization
  • AI for individual or holistic optimization of capacity utilization
  • Optimization of routes, delivery corridors / slots at the loading ramp
  • Automatic document creation or error analysis in documents
  • Control of return logistics e.g. using a platform.
Green Logistics 
1. Know and report emissions for transport and products
2. Reuse parts / components or individual raw materials
3. Compensate or reduce emissions


Recommendations

Supply chain Speed 
  • Customers are demanding shorter lead times in the supply chain
  • Ensure the resilience of logistics networks in difficult times (natural disasters, trade embargos, shutdowns due to epidemics etc.)
  • Parallel networks need to be set up to mitigate the probability of failure 
  • Container transport by sea from Asia to Germany vs. transport via the Silk Road 
Autonomous infrastructure
  • OneShot-Loading and automatic battery charging processes hold a high potential for savings
Planning accuracy and prediction mechanisms
  • The most important added value in the future will be the (automatic) recommendation of what to do next (Prescription). 
  • IoT-based real-time data transmission instead of manual transmission
  • Not only in the primary chain (producers), but also in the secondary chain with partners (logisticians, banks, personnel service providers etc.)
  • In addition to the classic logistics events (customer requested change, delayed truck, production disruption)
  • Drones and delivery robots better assign the transports to the correct delivery medium
Data culture 
  • Which functions are direct and which can be sold as additional services with the help of IoT solutions
  • Which data can / do I want to monetize and which data do I need for this
  • The availability of GPS transmitters on pallets or ideally at the product level
Data sharing along the supply chain
  • Proactive messages to the next process steps in a supply chain (e.g. dynamically determined arrival time of a truck at the sea terminal for the delivery of a sea container) 
  • Capacity requirements for transport services, both from the production/trade industry
Production techniques 
  • 3D / 4D printing processes
Environmental protection 

Very Very good paper, A lot of insight into use cases / future technologies / centralized system/network.

Keep Learning!!!

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