4.0: What is it, and what are its advantages?

Industry 4.0: A change to the digital era

Nowadays everyone and every company uses technology. It is the way of the world and it seems to have changed the way companies function forever. Almost every company requires an online website where the average consumer can buy and sometimes even sell across digital means. Industry 4.0 refers to this change and the use of digital assets to not only allow consumers to easily access their products, but it allows for companies themselves to evaluate their own supply chain, along with statistics and logistical information.

In a similar vein to Industry 4.0, Logistics 4.0 is that exact evaluation of said supply chain on a digital front. The logistics department of a company is in charge of analyzing the supply chain of a company in order to determine what is working on every front of the process. This includes things like inventory, shipping, and customer satisfaction. Logistics 4.0 allows for all of these things to be done on a digital front now. The supply chain has become accessible online now and allows those in charge of logistics to be able to clearly communicate with other branches of the company as well as determine what is and is not working within the supply chain. An example of this would be a spreadsheet that includes all the information of the supply chain that is plain to see and can be altered with the touch of a button.

 

What has the supply chain changed?

The supply chain in a company includes from the point in which a company allows a consumer to purchase a product, all the way to when the consumer actually receives the product. The management of said supply chain has always been done using verbal communication as well as written communication, but that is all changing as humanity enters the digital age. Gone are the days of fax machines and phone calls. Instead, companies can use many other, more practical and digital methods to be able to transmit and view that data. This allows for other members of the company to be in the loop for all supply chain information.

Advantages of Logistics 4.0

The change to Logistics 4.0 allows the supply chain to be easily accessible and evaluated by anyone within the company, mainly the logistics department. Companies are now able to use data analytics to be able to determine what the best means of shipping, handling, and customer satisfaction can be for whatever product they desire. A major factor of Logistics 4.0 also includes the use of newer and more advanced technology in order to not only evaluate products, but ship them as well. Drones are a major advantage of using Logistics 4.0, as they can ship products with ease. Using this kind of technology allows for ease of access to information as well as maximum efficiency on all fronts. This way the logistics department has more time to focus on the actual numbers and avoid any hassle involving human error. It is also helpful to the environment, as digitalization reduces waste. Warehouse workers even benefit from Logistics 4.0 as they can get more precise information on tracking and labeling any product that leaves the warehouse. This is optimal as it does not require less workers or a loss of jobs, instead allowing for ease within the jobs and higher accuracy within calculating orders and customer bases. There is also a cost saving benefit as well, with many machines working extra fast and efficiently.

 

We recommend that you continue updating yourself on the latest trends and acquire the right knowledge. If you want to know more about logistics 4.0, we invite you to take a look at our Master’s degree in Logistics, Transport and Supply Chain Management.