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More connectivity. Smarter.
Dear future, we are ready!
The digitization and connectivity of logistics processes is by no
means a new phenomenon – and developments are continuing.
Following on from Logistics 4.0 the sector is now embarking on
a new era – of cognition. What exactly is this all about and what
does it mean for logistics processes?
Mr. Ehrhardt, we are now at Logistics 4.0 – yet we
are already approaching the next development
phase in the sector?
Increasing digitization, changes in consumer behavior and the
growing e-commerce sector are all factors which require compa-
nies to have a rethink. Customers' expectations are also increas-
ing. If the ordered item is not delivered at the latest on the next
day or if the desired item is not in the warehouse, dissatisfaction
can quickly ensue. This poses totally new challenges for logistics
and by implication there needs to be more intelligence integrated
into the underlying IT systems. As well as the connectivity of all
logistics processes and technologies along the supply chain, this
must also be managed smartly and centrally as one whole entity.
A modern Supply Chain Execution System (SES) as a smart con-
trol center provides all data relevant to the entire supply chain
transparently and interconnects them all. Because only when
ensuing data volumes can be managed transparently, is an end-
to-end overview and a more efficient process design possible in
practice. SES tools are already used in this regard to increase pro-
ductivity and avoid errors and therefore SES are also used as a
platform for the next development phase of cognition.
What exactly is this all about?
In future logistics will be defined by cognitive systems. These
systems are able to learn, recognize patterns and derive recom-
mended actions from them. This means they can support em-
ployees in their decision-making or provide advance notification
of events likely to occur.The logistics sector will absolutely benefit
from these functionalities, because until now process optimiza-
tions have been based on past findings. The era of cognition will
change the perspective because it operates on a forward plan-
ning and analysis basis. Big data becomes smart data. No longer
will data volumes be the crucial factor, but their quality. Trends
will be detected automatically and probable scenarios will be
forecast which will flow through into increased certainty when it
comes to planning. It is conceivable that smart systems will make
decisions based on predictive analytics without any human in-
tervention at all. A sophisticated, cognitive - or learning - system
can communicate with human beings in natural language. It will
become a smart colleague by contributing to thought processes,
supporting employees in their decisions and dispensing advice.
This takes us into the methodology of deep learning where artifi-
cial neural networks teach machines to think. Although the real-
ity of self-learning systems being deployed in warehouses is still
far in the future, companies must nevertheless lay the ground-
work today.
How are companies preparing for the cognitive
future?
Here are the facts: Cognitive logistics is still in its infancy. Many
companies have either not yet completed the digitization and
connectivity phase or are still at the very beginning of the imple-
mentation. And in many companies this still forms the basis of
their next steps. However, they must be made aware of the fact
that the implementation of Logistics 4.0 scenarios are absolutely
necessary for future survival. Our LFS has been designed for the
connectivity and digitization of logistics processes and technol-
ogies – and is therefore already moving down the path towards
a cognitive SES. In future, only companies who rely on compre-
hensive systems will remain competitive. Connected thinking
and actions are key requirements for the solution of the future.
And this is what we are working towards every day.
“Creating a Smarter Logistics
World – we create the future of
your logistics.”
58 59 LFS.vision