Challenges - Shippers - Logistics 4.0 Requirements

Inbound Pull

Incomplete and outdated information. Failure to synchronize with actual data. Resultant sub-optimal logistics scenarios, poor asset utilization, and high operating expenses.

With suboptimal logistics, parts demand is determined based on fixed transport schedules and is not flexible, transport orders are not synchronized between multiple factories, and possibilities for efficient use of buffer stock capacities are not utilized in an efficient way and lead to suboptimal logistics cost:

  • Parts demand has been defined with fixed transportation schedules and is inflexible.
  • Transportation is not being synchronized across plants.
  • Interim storage capacities are not leveraged effectively.

Modern production environments are impacted by numerous systems, e.g., ERP, APS, MES, Supply Chain Management, etc. The increasing dynamic of operating networks requires instantaneous planning and coordination. The effective management of constantly changing markets, supply chains, product and productions attributes, requires a continuous synchronization of processes..

With manufacturing and assembly processes already optimized, the focus shifts toward increasing parts logistics efficiencies, e.g., lot sizes, storage, safety stock, etc.

Traditional logistics planning is often done with isolated, home grown tools, e.g., MS-Excel, Access, etc. Keeping those systems in sync and quick communication of results and modifications is cumbersome and infrequent, just-in sequence, Industry 4.0 requirements cannot be realized.