Trends and challenges in the logistics industry

Ask any person on the street what their first thought when hearing the word “logistics” is, and they will say “trucks”, “warehousing”, transport” - not surprising in this day and age of flourishing online trade. But the logistics industry is about far more than just transporting goods from the warehouse to customers. Logistics is a highly complex operation within and between industrial, retail and logistics companies and end consumers. Innovative concepts are now more in demand than ever before. Industry 4.0 also poses new opportunities for logistics. Always on the cutting edge, Wanzl Logistics + Industry spoke with Prof. Dr.-Ing Johannes Fottner (Chair of Material Flow Logistics at the Technical University of Munich) about developments, trends and challenges in the industry.

Prof. Dr. Fottner, what milestones have changed the logistics industry in recent decades?

One driver in the logistics industry was and is the objective of greater effectiveness – more, quicker, more precise. A key factor in increasing efficiency in logistics has therefore been standardised load carriers such as VDA containers, pallets or ISO containers. These made automated technologies possible. There has also been a general rethink in industry, such as in retail, in the last 20 years. Logistics is no longer seen as an auxiliary function, but as a key process contributing to the success of a company. Today, it is a core process, product characteristic, business model and competitive factor for many companies. Logistics leaders are also often market leaders. Amazon is likely the best-known example here. With a view to future innovations, logistics is often regarded as a pilot sector for new technologies such as autonomous systems, virtual and augmented reality or artificial intelligence.

Let's stay in the here and now. What are the challenges facing the logistics industry?

The increasing digitalisation and the associated, extremely fast business processes also require a significant increase in the dynamics of physical processes, such as order picking, sorting and the distribution of goods. Product individualisation is increasingly overshadowing this trend. Product cycles are becoming ever shorter, but asset life cycles are not, with the result that a significant increase in the flexibility and adaptability of assets must be achieved right through to self X-configuration and commissioning.

Flexible concepts such as Wanzl's "Dynamic Materials Handling" offer solutions for these development trends, but how do you generally assess the increasing digitalisation?

Digitalisation has been the backbone of logistical processes for many years, both in the planning process and in operational use. This is, of course, reinforced by an extensive network across the entire supply chain. At the same time, digitalisation and networks lay the foundation for highly dynamic, smart processes and technologies. This allows the supply chain to be optimised right through to internal company processes under rapidly changing conditions. The original idea of the Internet of Things (IoT) as a precursor to Industry 4.0 was the autonomisation of logistics systems with decentralised control principles and thus a high degree of adaptability, even in the event of changes and glitches in the process.

Which innovations, systems, technologies are currently making the industry sit up and take notice?

A number of new technologies, in particular hybrid systems with a variety of technologies, allow a completely different approach. From self-optimising, intelligent systems to additive manufacturing techniques to small-scale, scalable technologies – coordinating these heterogeneous system structures is another field, for example in production environments where both forklifts and driverless transport systems or autonomous transport robots are used.

Wanzl Logistics + Industry has specialised in intralogistical processes. Could you please give us a brief definition of "intralogistics" and describe its significance for companies?

Intralogistics includes all the processes and technologies within a company required for the provision and disposal of materials. Factory gates do not automatically form the boundary, but relevant processes in the supply chain (e.g. just-in-sequence production supply) must also be taken into account. In addition to pure material flow, the flow of information and the general relationship from the supplier to the customer over the entire supply chain are highly relevant. Due to its complexity, intralogistics, in my opinion, plays an important role in all branches of industry and retail, regardless of the size of the company. Even in the area of services, optimising intralogistics can be of decisive importance within the meaning of a high level of service.

People are currently playing a major part. Will this change with Industry 4.0 and how will people be involved in the future?

Precisely that is the challenge. We must include people in the networked world of Industry 4.0 and see them as an integral part. Collaboration between man and machine must become part of everyday life. Intuitive operating procedures are therefore becoming more important, especially for semi-automated / automated systems that no longer allow pure routine operation. For years to come, people will have a multitude of even simple tasks in which they can be used more economically and flexibly than automated technology.