ADVANTAGE THROUGH EFFICIENT STORAGE AND DIGITAL NETWORKING: OPPORTUNITIES FOR ENTERPRISES.

The importance of logistics is changing rapidly. We can see just how important it is every day in any workplace. In many companies, logistics is developing into the linchpin offering extended services that would hardly have been achievable in the traditional way. Logistics is becoming an essential USP and factor for success.

CHANGES IN LOGISTICS IN RECENT DECADES

Phase 1: Transport, handling, storage

Phase 2: Design of logistic processes from incoming to outgoing goods

Phase 3: Optimization of value chains beyond company boundaries

→ from the source (raw material) to the end of product life (recycling / disposal).

Many companies are about to move from Phase 1 to 2, and only a few are already in transition to Phase 3, which will be needed sooner than expected.

PREREQUISITE

Markets are changing daily, requiring modern concepts such as efficient consumer response (closer collaboration between manufacturers and distributors to reduce costs), just-in-time production, and supply chain event management (cross-company transparency of logistics processes to optimize logistics costs).

This all requires adequate technological support such as through electronic data interfaces (EDIs) among those directly involved (sender, shipping company, and recipient); continuous product identification with radio frequency identification (RFID), QR, or barcodes; enterprise resource planning (ERP) or application-specific warehouse management systems (WMS) with online information for customers about their orders and their current status with tracking and tracing options as already seen with some online retailers.

TRENDS – VISION FOR WAREHOUSE MANAGEMENT

Inventory management is being taken to a new level. Lowest possible warehousing costs combined with high product availability: is it just a pipe dream or can it become a reality? We’ll find out soon enough.

We will use mathematical algorithms that constantly measure inventory, identify seasonality and trends to make sure the right products are always in stock, and place orders automatically to ensure availability when demand increases.

Ultimately, an optimized procurement planning that substantially reduces the amount of capital tied up in inventory which involves direct online integration and networking of business partners into one’s business processes.

For production and logistics processes, this will mean a massive change, especially in terms of work processes and content. This will require new ideas for work and process design.

EVERYTHING AT YOUR FINGERTIPS

Modern monitoring systems show the efficiency, utilization, and status of all processes and resources starting from the arrival of deliveries and progress in processing orders to providing customers with delivery information and much more

Networked internal and external systems that provide real-time information on orders, inventory, utilization information for customers, and process control information, all without a paper trail.

VISIONS BECOMING REALITY

Traditionally managed warehouses and processes push companies to the limits and are failing to meet changing requirements. Smart logistics systems offer new opportunities to increase competitiveness and bring economic, functional, and psychological benefits.

  • reducing costs by
    • increasing efficiency
    • reducing errors, shrinkage
    • reducing throughput time
  • ensuring the right inventory levels – in real time
  • controlled and improved processes
  • increased availability
  • transparent processes
  • secure, guided, and documented processes

NEXT STEPS

In order for these systems to be of use, it will be essential to adapt processes and warehouses to market demands. Quickly. An optimization or redesign of material logistics is absolutely necessary. New technologies support the processes, while the organization of these according to ecological and economic aspects is up to the companies themselves, with or without external support. Don’t be late in making the necessary changes.

The winners will be the companies that exploit the potential in warehousing and logistics early on. A 30% increase in efficiency with a simultaneous boost in order fulfillment rates and quality is not uncommon and is, indeed, vital for survival.