Logistics 4.0: how technology is revolutionizing the supply chain

Understand the main advantages of investing in innovation for your operations 

  

What is the secret to having an efficient supply chain? Part of the answer is technology. Solutions such as Internet, Artificial Intelligence, Blockchain and other innovations bring transparency and speed to the processes. All of this is part of Logistics 4.0 – a new phase in the area, permeated with technology and connectivity. 

In this article, understand more about the challenges of the supply chain area, understand about new technologies that promise to bring solutions to these bottlenecks and read about the relationship between logistics and sustainability. 

• Complexity and challenges 
• The big news of traceability 
• Blockchain and Supply Chain 
• Sustainability in logistics 

 

The complexity and challenges of logistics 

Have you ever thought that there is a story behind every product you buy? parts of products and raw materials travel the globe, to the place where they will be sold. And after you discard? Perhaps a more complex path regarding the arrival. 

One of the challenges for companies is to have an efficient control of this logistics. There are many steps – in the case of a multinational, this involves a series of branches, not to mention other companies and suppliers, making everything more complex. For these reasons, every day, managers face many responsibilities. 

In general, when we talk about logistics, the main challenges are: 

• More operational efficiency 
• Cost reduction 
• Synchronization of demands with supply / stock 

In the specific case of companies operating in Brazil, other problems are pointed out, such as the concentration on the road modal (which makes freight more expensive and slows down freight), freight management and lack of security, with high rates of cargo theft. 

 

The big news of traceability 

Technology is an important tool to face this series of challenges, and the 21st century has been generous with the innovations it has brought. Communication technologies, for example, facilitated the exchange of information between customers and companies, as well as suppliers and partners; big data and cloud storage are also able to collect a lot of information and turn it into useful data for managers to make decisions. 

Traceability has certainly brought numerous advantages to those dealing with complex logistics systems. With blockchain, it is possible to track the product, from sale to delivery. Innovation brought more quality to the operations and facilitated the transmission of this knowledge to the leaders. The companies that invest the most in technology in their processes are those that are at the top of the market – and of consumers and customers. 

In the logistics chain, several areas benefit from traceability systems. Asset management is an example. Some sensors are able to identify the functioning of machines and equipment, pointing out if there are any errors before they break. It is also possible to detect the availability and idleness of devices – which improves the productivity of the industry. 

In automated production, the systems track the path taken from the extraction of the raw material to the final product. This is the case of PlataformaVerde: we operate at this point offering blockchain tracking software with a focus on clean production. Real-time data helps companies make better decisions, identify waste and quantify waste generation. This type of technology brings transparency, information, financial improvement for organizations and savings in administrative time. 

External logistics can also benefit from technology, controlling inventory flow, deposit, transport and deliveries. It is a guarantee of satisfaction when a store is able to track the delivery of its product and provide predictability for the customer: the shopping experience improves and safety also. 

 

Blockchain and Supply Chain 

One of the ones that most impacts the supply chain is the blockchain. One of the most recent studies on this was from Capgemini. In early 2019, the multinational launched the report “Does blockchain hold the key to a new age of supply chain transparency and trust?”, In which it explains that many companies are looking for blockchain for applications in their production chains. Among the main advantages, they would be: 

• Audit for all transactions
• Immutable tool – safe from unwanted changes 
• Almost in real time 
• Digitization brings speed 
• Tamper-proof and easily verifiable data 
• Brings a single shared source of truth 

All of these advantages would help to combat problems such as lack of traceability, risks, long and complex processes, compliance and regulations. In the case of PlataformaVerde, when we use this application for our customers, we bring reliability to the process and connect these links that do business to facilitate the sharing of information.  

So, we estimate that our customers have increased their productivity by 35% with administrative time savings. 

Still, the vast majority of organizations are still in the stages of experimentation and proof of concept in relation to blockchain: 87%. Only 3% already work with scale solutions, such as PlataformaVerde. The trend is that, in the coming years, this will accelerate: Capgemini bets that, by 2025, the adoption of blockchain will be more structured. 

 

Sustainability in logistics 

The transparency placed by the blockchain has a significant impact on the sustainability of logistics processes – including facilitating Reverse Logistics processes. In actions that relate to the circular economy, it brings the necessary traceability to the cradle-to-cradle processes, managing to certify whether a waste becomes raw material and whether it is reused in the production process. 

And not only in this area: transparency brings a better selection of suppliers and sustainable purchases for organizations, which are able to make sure that their partners are complying with the law. 

Some benefits of thinking about sustainability in logistics processes: 

• New opportunities to generate revenue and reduce costs; 
• Reduction in the use of inputs and raw materials 
• Compliance with legislation; 
• Market differential, with positive impact on reputation and marketing. 

Are you interested in knowing the  GreenPlat solution and how we can help your business to have a logistics chain with more transparency, traceability and sustainability? Access our website or contact us by email: [email protected]