On a slide in the Material Handling Theater in hall 10, they briefly passed by: eight technologies that will change supply chains in the coming years. Eight technologies too that will enable us to better respond to customer needs and increase our competitive edge. They came from a study by Material Handling Industry, which outlined material handling developments in the US market.
Supply chains are under great pressure. The value they create for their customers must grow and grow, faster and faster to increase or at least maintain the competitive edge. Research by Material Handling Industry, a US-based industry association, shows that customer demand for lower prices, faster delivery times and more service is currently the biggest challenge for supply chain professionals.
Investing in technology is necessary to meet those challenges. In its 2015 Industry Report, MHI lists eight technologies that will play an important role:
1 Inventory and network optimisation tools
Of the eight technologies mentioned, these tools are already the most commonly used. They allow companies to calculate how much stock to put in which location in order to best serve customers at the lowest possible cost. With a relatively low investment in these software tools, which consist of a collection of smart algorithms, companies can significantly reduce their costs. This includes not only a reduction in inventory costs due to decreasing stock levels, but also decreasing transport and handling costs. In any case, these tools include all these cost aspects in their calculations.
2 Sensors and automatic identification
These technologies provide real-time visibility of inventory levels and goods flows. This allows companies to plan better, deploy their people and resources smarter at the locations where they are needed and also allocate orders received better. In addition, these technologies offer the possibility of preventing errors during order picking or loading and unloading. And preventing errors is always cheaper than repairing them. A great example is Ravas' triple-scale forklift forks, which were nominated for the Logistica Award.
3 Cloud computing and storage
More and more companies are using software solutions in the cloud, where they then also store their data. Since 2011, spending on cloud solutions has tripled and this trend is sure to continue, including in the supply chain. Cloud solutions act as a barrier to entry because companies need to invest less in software licences, IT infrastructure, etc. Moreover, companies can get new solutions faster, which are also easily scalable. ICT & Logistic shows a large number of cloud solutions, especially for applications that require frequent updates such as customs systems and route planning systems.
4 Robots and automation
Robots have been commonplace in industry for decades, think of the impressive welding lines at Nedcar in Born. As robots become cheaper, faster and smarter, they can perform much more than tasks of a highly repetitive nature, think picking, packing and sorting various items. And don't forget: robots and automated storage and order-picking systems achieve higher speeds and make fewer mistakes than humans. Real robots will not be on display at Logistica, but shuttles and agv-based systems that come close.
5 Predictive analytics
Predictive analytics is basically nothing more than analysing 'big data' to recognise patterns and predict the future based on them. Companies already make great use of data, but so far it mainly tells what has happened in the past, not what will happen in the future. Predictive analytics can be used to predict and prevent failures of material handling systems, but also to design supply chains that are calculated for different growth scenarios. Simple applications are already visible, think of TomTom's navigation systems that can already predict where your current trip is going based on past driving behaviour.
6 Wearable and mobile technology
Consumers have become accustomed to mobile devices such as smartphones and tablets in recent years. Such devices will be seen even more in the workplace in the coming years, complemented by wearable devices such as smartglasses, smartwatches and headsets. Logistica will show several examples of such applications, for example Logitrade's 'order picking vest' as a replacement for the traditional headset in voice picking. Besides order picking, these technologies will increasingly be used for other processes such as repairing products, handling returns or checking incoming goods.
7 3D printing
3D printing will have a major impact on supply chains. Why should we still send sea containers full of products across our oceans if we can suffice with emailing a digital design to a local 3D printer? MHI expects 3D printing to be used for spare parts in the short term, so that machine manufacturers are not obliged to keep parts in stock for years to come that may never be used. In addition, 3D printing will be used for complex high-volume products, think of chocolates that now require a tight hand from pastry chefs, and for fashion accessories or other trend-sensitive products with a short life cycle. Logistics can also benefit from 3D printing, for example by reducing the downtime of material handling systems when spare parts are available more quickly.
8 Unmanned vehicles and drones
Of course, unmanned vehicles are not entirely new in logistics. AGVs have been around for years and are already quite common in warehouses and distribution centres. What is new, however, is that unmanned vehicles will soon be able to drive on public roads. Together with drones already being experimented with here and there, they offer new possibilities for delivering parcels to consumers. The technology being developed for this will lead to increasing opportunities for AGVs and perhaps even drones in warehouses too. Think of AGVs working together to transport large products, for example.
Marcel te Lindert: logistics and supply chain journalist
