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Key Benefits of Implementing Logistics 4.0 in Post-Pandemic Era

By Sthitaprajnya Panigrahi

As rapid technological development progresses, platforms for ‘intelligent’ products will emerge at a wider level connecting people, data and machines. This has also significantly impacted the logistics sector as well, especially with regard to the speed, flexibility and controllability of its processes. As a novel trendsetter, Logistics 4.0 is becoming increasingly significant for organizations that want to position themselves successfully on the market. Logistics 4.0 generally refers to the networking and integration of logistics processes within the trading companies and production facilities ensuring a real-time control of logistics networks. In the post-pandemic era, the goals of Logistics 4.0 have increased manifolds owing to the prerequisite and consequence of digitization as well as interactive flexibilization of business models, processes and partner networks.

Some of the key benefits of implementing Logistics 4.0 in Post-Pandemic Era are highlighted below.

1. End-To-End Visibility

One of the foundations of Logistics 4.0 is the summarization of new information as result of data being gathered from RFID chips and internet of things (IoT) devices. This is integrated with up-to-the-minute demand and pricing information in such a way that it ensures transport planners complete insight into their shipping and freight forwarding options as they unfold. In other words, this novel innovation of data from various sources helps businesses to get closer than ever to E2E (end-to-end) visibility. This way, businesses can not only evade the late deliveries or parts shortages that result from over or underestimating demands but also the possibilities of overpaying for fuel or capacity due to out-of-date information. E2E visibility eventually reinforces each of the benefits on this list by producing and making available the sort of high-quality and mission critical information upon which effectual transport operations depend.

2. Significance of Real Time Planning

As we discussed about the up-to-the-minute transport information above, it is clear that the closer you drive to complete E2E visibility the better you will be able to bring forth real-time data into your value chain. This basically enhances the value of high rates of visibility, ensuring that planners never use out-of-date information and are able to effectively monitor their plans as they reveal. In this way, shippers and freight forwarders can identify and respond to disruptions such as extreme weather conditions or hike in fuel price in the most agile and approachable way possible.   

3. The Creation of an Integrated Planning

In Logistics 4.0, when you perform strategic, operational, and tactical planning tasks, it is easier to visualize the effects of each hypothetical planning action on your entire supply stream as well as your other planning functions. Logistics 4.0 systems adapt to each new piece of information, showing you the effects of any planned changes to your routes, network structure, or hub usage. Not only does this have the effect of removing guesswork from your planning processes, but it also helps to remove silos between different planning levels which include strategic, operational, and tactical levels by making palpable suggestions that each one has for the others.

4. Routing Optimization

In Logistics 4.0 the immediate traffic and weather information is automatically imported to planning environments. Logistics 4.0 systems make it easy for shippers and freight forwarders to exploit the most well-organized possible route configurations, even giving them the ability to add new stops or extra pickup and drop-off points on the route, based on the new recalculated information. Whereas previously the planners often struggled with a lack of insight about changes in routes that could significantly affect their outcomes, Logistics 4.0 ensures novel degrees of certainty while choosing the ideal path. This certainly enhances the higher percentage of on-time deliveries and a decrease in fuel costs.  

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