Smart software determines success of logistics

Author without image icon
Marcel te Lindert
29 February 2016
3 min

"The bar for logistics is so high that we can no longer manage with state-of-the-art storage systems and forklift trucks. This is where smart IT systems come into play." So states Christoph Beumer, ceo of sorter manufacturer Beumer, during a preview of CeMAT. The striking theme of this international trade fair that starts in Hanover at the end of May: smart supply chain solutions.

CeMAT, scheduled from 31 May to 3 June, is traditionally a trade fair where forklift suppliers and warehouse fitters set the tone. Today, however, all that 'iron and wheels' is no longer enough to provide an appropriate logistics response to the fast-moving economy. More than ever, the major international trade fair in Hanover will focus on intelligent IT systems to drive operations on the warehouse floor smartly and efficiently.

Christoph Beumer points to the increasing number of companies investing in autonomous vehicles in the warehouse. "These small, multifunctional vehicles are much more flexible than the large, inflexible warehouse systems we know. Imagine, for example, a warehouse with a fleet of autonomous vehicles that constantly communicate with each other and together decide which vehicle does what and which route through the warehouse," says Beumer's ceo, who is also chairman of CeMAT's advisory board and vice-president of the German Logistics Association (BVL).

Scalable systems
Beumer indicates that the digitisation of internal logistics processes is paving the way for highly scalable systems. "Although smart IT systems are already widely available today, we are still far from getting the most out of digital technology. We are rapidly moving towards a new era where all goods flows are controlled by intelligent systems. Only with highly flexible IT systems will we be able to cope with rapid fluctuations in order patterns and other changes."

The demand for smart, flexible systems comes largely from the growth in e-commerce. Over-night delivery will soon no longer be fast enough; same-day delivery is already a reality here and there. Another development is the growing interest in lean in the industry, which leads to reduced inventories and more frequent deliveries, among other things. "That leads to smaller shipments. Customers have little regard for the sophisticated logistics required for this. They easily place two orders within a few minutes' time with the expectation that they will be delivered in one shipment."

New business models
While the focus in many supply chains has long been on reliable and cost-efficient logistics, the demand for fast, scalable and flexible solutions is now growing. "Digitalisation, however, will bring more than optimised logistics processes. This trend will fundamentally change entire chains and create completely new business models. I recently had the opportunity to tour Berlin's start-up scene. I can recommend that to everyone. It changes the view on many things that many managers in our sector tend to regard as unchangeable."

Like Beumer, board member Andreas Gruchow of Deutsche Messe, the company behind the CeMAT, also hints at trends such as Industry 4.0 and Internet of Things. "In the short term, all load carriers, racking, material handling components, transport systems and also goods themselves will be intelligent. This will increase the ability of companies to make logistics processes more flexible and under better control than today. Competing in logistics is no longer just about costs, but also about speed, accuracy, flexibility and availability."

Packaging fair
To emphasise the theme, part of the fair is dedicated to logistics software. Topics such as software in the cloud, big data, mobile solutions, network planning, visualisation and virtualisation will also be covered extensively in the lecture programme.

Also new is the cooperation with Empack, the packaging trade fair that will have its own venue in Hanover. CeMAT will take place from Tuesday 31 May to Friday 3 June. The fair will be open for four days from 9 am to 6 pm.

Marcel te Lindert - journalist logistics & supply chain

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