The Digital Transformation of Logistics

The Digital Transformation of Logistics
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The digital transformation is in full swing and fundamentally changes how we live, work, and communicate with each other. From retail to finance, many industries see an inflow of new technologies, disruption through innovative platform business models, and employees struggling to cope with the significant shifts occurring. This Fourth Industrial Revolution is predicted to also transform Logistics and Supply Chain Management, with delivery systems becoming automated, smart networks created everywhere, and data being collected and analyzed universally.  The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution   provides a holistic overview of this vital subject clouded by buzz, hype, and misinformation.  The book is divided into three themed-sections:  Technologies  such as self-driving cars or virtual reality are not only electrifying science fiction lovers anymore, but are also increasingly presented as cure-all remedies to supply chain challenges. In  The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution , the authors peel back the layers of excitement that have grown around new technologies such as the Internet of Things (IoT), 3D printing, Robotic Process Automation (RPA), Blockchain or Cloud computing, and show use cases that give a glimpse about the fascinating future we can expect.  Platforms  that allow businesses to centrally acquire and manage their logistics services disrupt an industry that has been relationship-based for centuries. The authors discuss smart contracts, which are one of the most exciting applications of Blockchain, Software as a Service (SaaS) offerings for freight procurement, where numerous data sources can be integrated and decision-making processes automated, and marine terminal operating systems as an integral node for shipments. In  The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution, insights are shared into the cold chain industry where companies respond to increasing quality demands, and how European governments are innovatively responding to challenges of cross-border eCommerce.  People  are a vital element of the digital transformation and must be on board to drive change.  The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution   explains how executives can create sustainable impact and how competencies can be managed in the digital age – especially for sales executives who require urgent upskilling to remain relevant. Best practices are shared for organizational culture change, drawing on studies among senior leaders from the US, Singapore, Thailand, and Australia, and for managing strategic alliances with logistics service providers to offset risks and create cross-functional, cross-company transparency.  The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution  provides realistic insights, a ready-to-use knowledge base, and a working vocabulary about current activities and emerging trends of the Logistics industry. Intended readers are supply chain professionals working for manufacturing, trading, and freight forwarding companies as well as students and all interested parties.

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Группа авторов. The Digital Transformation of Logistics

Table of Contents

List of Tables

List of Illustrations

Guide

Pages

The Digital Transformation of Logistics. Demystifying Impacts of the Fourth Industrial Revolution

List of Contributors

Author Biographies. Editors

Authors

Foreword

Acknowledgments

A Note from the Series Editor

1 Demystifying the Impacts of the Fourth Industrial Revolution on Logistics : An Introduction

Introduction. Future of Work in the Fourth Industrial Revolution

The Role of Digital Transformation

Hub Economy Companies Leading the Way

Current State of the Logistics Industry. Effects of the Second and Third Industrial Revolutions on Logistics

Technology Is Easy; But People Are Hard

The Role of Startups in the Logistics Community

Logistics Companies Under Pressure

Technology Investments by Logistics on the Rise

New Entrants Threaten Status Quo

Disintermediation Threat Looming

Navigating a Digital Transformation. Budget Considerations for Technological Upgrades

Lessons Learned from Other B2B Industries

Automation Leading in Terms of Return on Investment

Winners and Losers of a Digital Transformation

The Necessity of Economies of Scale

Foundations of a Digital Transformation. Prioritization of Technology Exploration

Connectivity Standardization in Logistics

New Business Models Emerging

Participation in Platforms and Marketplaces

Zoom Out/Zoom In Approach

The Time Is Now

Conclusion

Key Takeaways

References

2 Technologies Driving Digital Transformation

References

3 Logistics Management in an IoT World

Introduction

Logistics Management in an IoT World. Get Connected

Criteria for Defining the Right Things

Sensors and Identification

Means of Connection

Triggers

Standards

Security

Get Decisions

Get Prepared

Data Quality

Organization

Skills

Ecosystem

Conclusion

Key Takeaways

References

Notes

4 Additive Manufacturing : Shaping the Supply Chain Revolution?

Introduction

AM Supply Chain

Evaluation

Advantages

Bottlenecks

Technologies and Materials

Technologies

Materials

Application Scenarios

Market and Trends. Market

Trends

Conclusion

Key Takeaways

References

Notes

5 The Role of Robotic Process Automation (RPA) in Logistics

Introduction. Companies Under Pressure

RPA as a Solution

Evaluating Heavyweight IT to Lightweight IT Automation

Achieving Operational Excellence. Process Improvement on the Rise

Outsourcing Versus Automation

Center of Excellence as a Leader of RPA

RPA: Hype or Realistic Solution. The Facts

Rote, Repetitive Tasks Ripe for Automation

Process Considerations of Implementing RPA

Motivating Example: Konica Minolta Using RPA

Konica Minolta's RPA Roadmap

Use Cases for RPA in Logistics. Track and Trace

RPA Adoption at DHL

Navigating Your RPA Journey. Who Should Own This RPA Journey?

Process Mining and Process Mapping

Choosing the Right RPA Provider

Change Management Considerations

RPA Implementation Announcement

Liberated Knowledge Workers

Interacting with RPA. Training the Bot

Next Evolution of RPA Training

Conclusion

Key Takeaways

References

6 Blockchain Will Animate Tomorrow's Integrated Global Logistics Systems

Introduction

The Origins of Blockchain Technology

The Potential of Blockchain Technology

Revolution via Protocol

Essential Properties of Blockchain

Blockchain Applications in Logistics

Public Blockchain Applications in Logistics

Private Blockchain Applications in Logistics

Conclusion. From Trusted Actors to Trustless Networks

Key Takeaways

References

Notes

7 Digitalization Solutions in the Competitive CEP Industry – Experiences from a Global Player in China

Introduction

Challenges in Key Logistics Segments

Digitalization Solutions Today

E‐Commerce in China and Its CEP Market

A New Competitive Environment

Digitalization Solutions of the Future

Internet of Things (IoT)

Artificial Intelligence (AI)

Blockchain

Case Study: Enhanced Address Translation Through AI

Conclusion

Key Takeaways

Acknowledgements

References

Notes

8 Understanding the Impacts of Autonomous Vehicles in Logistics

Introduction

Evolution of AGVs

Intelligent Logistics

The Automation of Indoor Transport Systems

Opportunities for AGVs

Challenges of Adopting AGVs

The Automation of Outdoor Transport Systems

History of the Automation of Outdoor Transport Systems

Opportunities and Challenges in Logistics

Drones and Their Use in Logistics

Conclusion

Key Takeaways

References

9 Logistics in the Cloud‐Powered Workplace

The Cloud Revolution

Growing Dominance of Cloud Computing. Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

Enabling New Business Models

How Software Drives Logistics

Warehouse Management Systems (WMS)

Transportation Management Systems (TMS)

Shortcomings of Conventional Logistics Software. Complexity

Difficult Data Integration

The Impact of SaaS on Logistics. A New Technology Delivery Model

SaaS Warehouse Management Systems

SaaS Transportation Management Systems

APIs

SaaS‐Enabled Value Creation

Automation

Integration

Analytics and Artificial Intelligence

Conclusion

Key Takeaways

References

10 Platforms Enabling Digital Transformation

References

11 The Digital Transformation of Freight Forwarders : Key Trends in the Future

Introduction. The Specter of the Digital Transformation

Actors in the Shipment Cycle

Key Trends That Will Shape the Future

Technology

Specialization

Omnichannel

Virtualization

Reshaping Logistics Service

Collaboration Is Key

Digitalization Impact for White‐Collar Workers

The Regulatory Environment

Conclusion

Key Takeaways

References

Note

12 International Trade Revolution with Smart Contracts

The Blockchain Revolution

Smart Contracts. Smart Legal Contracts

Service Level Agreements

Smart Contracts in International Trade

Paperless Trade

Trade Finance

Bill of Lading

Letter of Credit

Trade Facilitation

Smart Import Declaration

Trusted Payment

we.trade Case Study

Information Distribution. Information Transmission

Tradelens Case Study

Information Symmetry

Smart Contract Initiatives. Government Initiatives. Chinese Central Bank

South Korea

Private Initiatives. Mizuho Bank Using IBM

Marco Polo Trade Initiative

Risks and Challenges of the Implementation. Technological Challenges. Scalability

Sustainability

Security

Interoperability Challenges. Compatibility

Data Standardization

Legal Issues. Validity

Privacy

Conclusion

Key Takeaways

References

Notes

13 Exploring China's Digital Silk Road

Introduction

Digital Integration and Supply Chain Along China's BRI

Challenges of Digitization for the Freight Industry Along the BRI

Challenges in China

System Connectivity Challenges

Digital Silk Road as an Answer to the Digitalization Deadlock

Summary

Key Takeaways

References

14 Marine Terminal Operating Systems : Connecting Ports into the Digital World

Introduction

Terminal Operating Systems

Ports and Local Governments Recognizing the Value of Modern TOS

An Increasingly Competitive TOS Software Market

Navis as a Terminal Operating System

Breaking Down the Costs of Implementing a TOS

What to Consider When Selecting a TOS?

Importance of Visibility at the Terminal

Digital Communication is Key

The Future of Terminal Operating Systems

Conclusion

Key Takeaways

References

15 Improving Cross‐Border eCommerce Through Digitalization : The Case of Compliance in B2C Shipments

Introduction

Customs Clearance as a Barrier Constraining Growth

Lack of Integration as the Root Cause of Customs Misdeclaration

How the Digitalization Can Revolutionize Cross‐Border ECommerce

Increased Customer Satisfaction

Supply Chain Visibility

Speed of Customs Clearance

Technology as Enabler for a Cooperative Model

Technical Requirements

Conclusion

Key Takeaways

References

Notes

16 Enabling Platform Business Models for International Logistics

Introduction

Current International Logistics Technology Landscape

The BCO's Perspective

The Future

SimpliShip: Deeper Dive into an Existing Logistics Marketplace

The Era of Data and the Impact on the Workforce

Conclusion. Key Takeaways

References

Note

17 The Evolution of the Cold Chain : A Story of Increasing Complexity Amidst a Sea of Traditional Thinking

Introduction

Cold Chain Transportation

Cold Chain Transportation Modes

Ocean Freight

Airfreight

Technological Differentiation Between Air and Ocean Cold Chain Transportation

Cold Chain Transportation Considerations. Condition Monitoring

Controlled Atmosphere (CA)

Modified Atmosphere Packaging (MAP)

Evolution of Cold Chain Transportation

Technology Solutions

Blockchain

IoT and AI

Gaps to be Addressed

Food Safety as the Key

Conclusion

Key Takeaways

References

Notes

18 People Navigating Digital Transformation

References

19 Change Management Falling Short – the Call for Business Transformation

Introduction

Change Management and Business Transformation – Two Sides of the Same Coin?

Business Transformation in the Context of “Digital”

Change Management in the Context of “Digital”

Business Transformation and Change Management in the Context of the Fourth Industrial Revolution in Logistics

Conclusion

Key Takeaways

References

Notes

20 Organizational Culture Change : Process to Sustainably Improve Performance

Introduction

OCC Business Practices. Strategic Matching

Purpose, Vision, and Mission

Values and Beliefs

Recruitment and Placement

Training and Development

Rewards and Recognition

Performance Management and Feedback

Artifacts

OCC at Toll

Background

New Purpose, Values, and the Case for Change

Changing the Way to Manage Performance

Tone from the Top (Leadership)

Next Steps

Conclusion

Key Takeaways

References

Notes

21 Competence Management as an Enabler for the Digital Transformation of the Supply Chain

Introduction

Competence Management in Supply Chain Functions. Fundamentals of Competence Management

Bosch Case Study: A Competence Model Example

Current Competencies Required

Future Competences Needed

Digital Transformation Competence Management: A Learning Transformation. Fundamentals of Learning

Transitioning from Passive Learning to Active Learning

Transitioning from Classroom Training to Digital Learning

Future Learning Trends

Micro‐learning

Mobile Learning

AR/VR

Blended Learning

Conclusion

Key Takeaways

References

22 Impacts of Digitalization on Traceability : A Case Study of the Carbon Fiber Supply Chain

Introduction

Carbon Fiber, The Material of the Future

Global Supply Chains: A Fragmented Picture

Several Constraints Characterize the Global Supply Chain

Case Studies on Lack of Material Traceability and Digitalization

Case Study 1: An Aerospace Company Losing a Qualified Supplier

Quality Management

Quality Control

Standards

Case Study 2: Traceability, Which Affects Efficiency and Compliance

Case Study 3: A Global Carbon Fiber Converter's Internal Waste System Could Use an Upgrade

Interwoven Processes for Traceability, Created by the Author

Tracking Waste

Compliance

Digitalization Benefits in the Global Carbon Industry

Implementation Challenges. Manual Entry

Cost

Training and Staffing

Motivation

Digitization Opportunities

Conclusion

Key Takeaways

References

23 The Evolution of Freight Forwarding Sales

Introduction

The Rise of the Digital Freight Forwarder as a New Entrant

Market Shifts. Amazon Effect

Instant Visibility and Pricing

Redefining Customer Service

The Evolution of Freight Forwarding Sales. The Traditional Sales Representative

Traditional Sales Reps Evolving

Rise of Technology and Its Effects on Sales

Connectivity

Freight Forwarding Sales Executives at Risk of Losing Their Jobs?

Analytical and Creativity as Valued Skills

Future Job Market

Sales Enablement in a Digital Age

Information

Training

Talent

New Cultures and Skills

Conclusion

Key Takeaways

References

24 Managing and Selecting Logistics Service Suppliers

Introduction

Identifying Business Needs, Capacity, and Capabilities

Motivational Example. Background

Current State Enterprise Network

Services that Will Be Needed to Achieve the Goal

Industry Vertical Experience

Technology Solutions

Forecasted and Desired Demand

Previous Wins and Challenges

Deconstructing the Issues

Defining a Solution

Choosing a Solution

Sourcing and Managing Suppliers in the Continuum

Strategies for Developing Strategic Alliance. The Vested Outsourcing Model

Pricing Considerations for Outsourcing

The Roadmap for Success: Onboarding, Measurements, and Service Level Agreements

Key Performance Metrics

On‐Time Delivery (Inbound)

Order Accuracy

Cost per Shipment

Customer Order Cycle Time

Carrier Scan Rate

Inbound (Purchased) Order Cycle Time

Inventory Accuracy

Fill Rate

Data or Document Transfer Error Rate

Logistics Billing Accuracy

Supplier Development and Managing the Supplier Relationship

Conclusion

Key Takeaways

References

25 The Digital Transformation of Logistics : A Review About Technologies and Their Implementation Status

Introduction

State of Digitalization in Logistics and Supply Chain Management

Logistics Infrastructure. Seaports

Airports

Warehousing

Logistics Execution. Road Transport

Sea Transport

Air Transport

Courier, Express, and Parcel Delivery (CEP)

Logistics Services and Advisory

Conclusion

Key Takeaways

Acknowledgments

References

Notes

Glossary

References

Index

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d

e

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IEEE Press 445 Hoes Lane Piscataway, NJ 08854

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Axel Neher

Axel has 15 years of working experience for Bosch and Bosch Rexroth globally in various management and consulting positions in logistics and lean production. He has published several articles on supply chain management, international logistics management, and accounting. He has an MBA and a PhD from the University of Marburg.

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