Better networking of business development with logistics managers and planners (3PL & 4PL)

Know-how of the logistics industry in e-commerce must be improved - Logistics manager and planner has become one of the most challenging professions in the last 20 years - 5 points that are important

The worldwide statistically recorded export of goods increased more than 19-fold between 1960 and 2017. From 1970 to 2014, world trade volume increased from 0.3 to 18.9 trillion US dollars.

The globalization of politics opened the markets to a globalization of culture and language. The number of telephone connections on the global telephone network has increased tenfold since 1960. In addition to the telephone, new communication technologies are developing: cell phones, VoIP telephony, video conferences over IP, faxes and the Internet. Internet-based telephony enables globally networked collaboration through a cost-effective, permanent, high-quality communication connection. Cross-border communication processes have multiplied, especially via the Internet, and the number of Internet connections continues to rise exponentially.

While at the beginning of the 1990s there were just a few thousand computers connected to each other, today there are well over 30 million in Germany alone. When the Internet did not yet play a significant role in private use in 1990, the number of Internet users was already 495 million in 2001. In 2010 around 2 billion people used the Internet and in 2015 more than 3 billion.

In 1988 only eight states were connected to the Internet, in 1993 there were 55 and in 1995 for the first time more than half of all states (115). Only since the beginning of this millennium have all countries been connected to the Internet.

The mobility of goods and people increased at the same rate. Uninterrupted urbanization and the uninterrupted supply of rural regions are further focal points of the modern global era.

Suitable for:

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In 1991, Germany exported goods worth 340.43 billion euros. According to preliminary information, the value of German exports in 2019 amounted to around 1.33 trillion euros. In the same period in 1991, German imports amounted to 329.23 billion euros. In 2019, the value of German imports was around 1.1 trillion euros.

This immense increase is no coincidence. In addition to all the factors mentioned above, e-commerce plays an important role. Sales of goods via e-commerce increased a good 70-fold from 2000 to 2019! Sales via online marketplaces or digital platforms such as E.g. eBay, Zalando or Amazon are not even included.

In parallel, in comparison: At the online mail order company Amazon, shipping and fulfillment costs have skyrocketed over the last ten years: the total logistics costs between 2009 and 2019 had increased more than 20 times.

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While Amazon is already fully committed to automation and autonomous power supply , there is still a great need for solutions and individual concepts in this country. The market demand is diametrically opposed to the experts who have a comprehensive eye on global and digital issues as well as logistical requirements.

Here are five points that matter:

 

1. Know-how of the logistics industry in e-commerce must be improved

When I moved from one of the leading intralogistics companies in the warehouse logistics sector to active ingredient cosmetics, I got to know a completely new world despite many years of experience in logistics and the digital sector. The complexity and connections, as well as the almost daily innovations and changes were the biggest exciting challenge for me.

Logistics & e-commerce are almost a completely different world than I knew before. Logistics managers were actually supposed to join here as trainees for several months. The gain in knowledge is enormous for every company and cannot be replaced by anything else.

Konrad Wolfenstein

2. Now: Modernize and digitize supply chains

Due to the possibilities of digitalization, the advantages of the respective storage type and form are becoming blurred. Today you can no longer say in general terms what is cheaper or better. While the focus was once on organization and implementation for a smooth delivery of goods, the task profile changed due to growing customer requirements and wishes.

• More about that here

3. Green logistics – individual measures are not effective
Environmentally friendly and resource-saving intralogistics require highly efficient and well-thought-out material handling systems. This not only means the energy consumption of systems, but also the efficiency of individual components of a logistics center. When optimizing and designing logistics buildings and facilities, it is not enough to just improve individual components. Even if logistics halls are built according to current energy efficiency standards, their inner workings must be included in the energy planning.

• More about that here

4. Autonomous power supply, at the same time for CO2 reduction and achieving the EU climate goals

It is an ambitious goal of the EU to become the first climate-neutral continent in the world by 2050. It's about green intralogistics, sustainability, CO2 reduction and decarbonization. The CO2 balance, also known as the greenhouse gas balance or CO2 footprint, will become more important in the future if there are tax and cost surcharges in the CO2 labeling of goods and services.

• More about that here

5. The logistical challenges and tasks are enormous

The main tasks of the warehouse manager and warehouse manager are warehouse management, storage space, inventory management, picking and transport, as well as the distribution of goods.

Due to market developments, warehouse scalability and flexibility are added.

To a certain extent, flexibility can be compensated for by automating certain processes. Energy efficiency is once again an ongoing issue in view of the 100% CO2 reduction set by the EU by 2050.

Smart Factory is the solution that cannot be implemented without digitalization. Back in 2014, we described Smart Factory as the future of production logistics .

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Growth is good, but companies have to be careful not to become overwhelmed by the demands. Sales and business development must adapt their goals to the logistical possibilities or ensure that logistics is prepared for developments.

Smart Factory

If we are honest, Smart Factory is the next level that everyone needs to work on together. From management, business development to the warehouse manager himself.

The EU guidelines for CO2 reduction through to climate neutrality in combination with renewable energies alone set this direction.

Smart Factory is a term from research in the field of manufacturing technology. It is part of the German federal government's high-tech strategy as part of the future Industry 4.0 project. It describes the vision of a production environment in which manufacturing facilities and logistics systems largely organize themselves without human intervention.

Smart factory
The networking of embedded production systems and dynamic business and engineering processes enables profitable production of products, even with individual customer requirements down to batch sizes

Smart logistics
In connection with the smart factory, similar concepts are now also being worked on in areas that are directly linked to the production of products. Systems are being developed, especially in transportation and in internal logistics and material flow, that can move and transport the material autonomously, so that, for example, production can be supplied autonomously. Communication and location and identification technologies such as the Internet, WLAN, GPS or RFID play an important role here.

Smart electricity network
It includes the communicative networking and control of electricity generators, storage devices, electrical consumers and network resources in energy transmission and distribution networks for the electricity supply. This enables optimization and monitoring of the interconnected components. The aim is to ensure the energy supply based on efficient and reliable system operation.

As a rule, photovoltaics are used here. We also have our own power storage units, which ensure that the factory and logistics run smoothly in the event of temporary voltage drops.

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How far is your company on the way to becoming a smart factory?

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Are you already pursuing smart factory initiatives?

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Have you already introduced smart factory processes in your company? (Proportion of yes votes by sector)

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What are the biggest challenges in smart factory strategy planning?

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Further information and data can be found here:

Smart Factory – Statistics and Facts

Important note: The PDF is password protected.
Please get in contact with me. Of course, the PDF is free of charge. Important note: The PDF is password protected. Please contact me. Of course the PDF is free of charge.

German version – To see the PDF, please click on the image below.
German Version – To view the PDF, please click on the image below.

Smart factories – Statistics & Facts

Important note: The PDF is password protected.
Please get in contact with me. Of course, the PDF is free of charge. Important note: The PDF is password protected. Please contact me. Of course the PDF is free of charge.

English version – To view the PDF, please click on the image below.
English Version – To view the PDF, please click on the image below.