05 Apr What awaits logistics companies in Industry 4.0?
The 4th industry revolution is slowly coming to our doorstep. Automated and digitized manufacturing is growing to the next level and new-generation software enables production tools’ reciprocity. While these high-tech processes are taking over the production sector, logistics will be forced to make similar changes in order to maintain efficient and profitable supply chain.
Smart grids will control production
The first industrial revolution was initiated by the discovery of steam technology. The second revolution rumbled through manufactories with the dawn of electric power: electricity unlocked mass production capabilities. The third industrial revolution – digitization of production processes – is happening now. Simply put, producers adopt software and hardware tools in order to automate the production process.
Industry 4.0 will be the fourth technological leap for production sector. It is driven by autonomous production tools, interdependent and efficient, able to further optimize the production process.
The main principle of Industry 4.0 is to create smart grids: systems that encompass all automated production tools, interconnect them and in doing so, control the production process. The goal is simple: to create autonomous factories that manufacture produce without human intervention.
The revolution of Industry 4.0 is only starting now, although experts say it will need another 20 – 30 years for smart grids to dominate production processes globally. Looking at the next 10 years, evolution is expected to proceed, with more complex and efficient digital tools taking over the production process that later will become popular worldwide.
Because of fast technological evolution, it is becoming harder to predict the future and Industry 4.0 revolution might explode faster than anticipated. When it does, businesses that did not invest in technological innovation might find themselves left behind.
In the name of efficiency
It’s no secret that the main goal of digitization is increased efficiency and speed of production process. Studies show that specialists of highest skill still make between 500 and 1000 errors out of million tasks given. The most developed robotic production tools only make 11,5 mistakes out of every million tasks given.
This way, human error factor has been all but eliminated, giving way for more efficient production. No doubt robotic trend will continue in order to also lower personnel costs.
These changes in production sector will bleed into logistics sector, as they are most interconnected. Timely, efficient and defect-free delivery will be the corner stone of supply chain, as well as satisfying the market demand when produce leaves factory floor.
The biggest innovation right now in the logistics sector is the self-driving truck. American Transportation Research Institute predicts that this form of transportation (especially in long-haul branch) will enter the mainstream within next 5 to 10 years. It will reduce personnel costs and increase efficiency, as well as maintain road safety.
For this form of delivery to function, logistics organizations will be forced to invest in fleet management software as well as scheduling, oversight and management tools in order to keep up with the production sector. They will also be necessary to maximize benefits of self-driving truck fleet.
To take the first step towards meeting future Industry 4.0 standards, B-NOVO Technologies, LLC is offering an innovative software tool Business Social for Logistics.
It is an online business management system for transport and freight forwarding companies. It helps with managing fleet, organizing business processes, monitoring employee workload.
In the name of efficiency, Business Social for Logistics offers a great deal of analytics. It is possible to track the efficiency of managers, order profitability, state of the fleet, service schedule, etc.
Reach your efficiency goals together with B-NOVO Technologies.