HOW TO IMPLEMENT A 4.0 LOGISTICS IN YOUR COMPANY?

We are not very enthusiastic about the idea of ​​using this expression which we do not like. But it would be a mistake not to realize that today the term is everywhere. The suffix 1.0, 2.0, 3.0 or 4.0 comes from the digitization of our modern societies.

It is no coincidence that the suffix 4.0 has also been used to designate the industry of the future. The industrial environment and the logistics environment are very closely linked, so the suffix was naturally attached to logistics.

 (from: https://c-marketing.eu/du-web-1-0-au-web-4-0/) 

Logistics 4.0 definition

This concept was born from the appearance of industry 4.0 which consists of linking all data systems together in order to digitize all processes. This industry 4.0 is made possible thanks to technological advances in the field of digital technology, robotics, etc.

The fact of connecting everything allows the automation of a good number of processes and indirectly an increase in productivity, yields as well as a reduction in production costs and better tracking of goods. This industry, coupled with new logistics, makes it possible to meet the challenges of competitiveness in the sector.

Logistics 4.0, also called supply chain 4.0, will therefore consist of organizing the reception, storage and shipping processes in a different way in order to integrate the hyper connectivity of customers, whether they are distributors or manufacturers.

This digitization will allow companies to benefit from increased monitoring and control of activity. These elements together will make it possible to maintain the good quality of the products and to make decisions in real time in order, for example, to anticipate unforeseen events in the supply chain.

The 3 challenges of logistics 4.0

Concretely, if we had to advise you on 3 challenges to take up to begin the transition to logistics 4.0, here are the ones we would advise you:

Traceability

In our experience, this is the key element. On import, very often, the products we receive in the warehouse do not have a barcode, although this is the essential condition for good inventory management in particular. Inventory management is an important advantage, especially in e-commerce. The bar code will allow, among other things, faster access to product characteristics, faster identification, reliable order preparation and faster inventories.

Adopt an ERP (Enterprise Resource Planning)

An ERP is a business management software package, for all its levels and services and specialized by sector of activity. Without a management tool, you will not be able to meet the challenges of supply chain 4.0. Some of our customers use M3, an ERP that can satisfy both distributors and manufacturers. It allows teams to operate more agile and faster by optimizing logistics flows.

Adopt an omnichannel distribution strategy

This strategy consists of optimizing the various distribution channels. By having a robust stock and an ERP to manage your strategy, you will find yourself in the best possible position. Indeed, nothing is worse for an e-merchant, distributor or industrialist not to be able to honor an order or not to have a reliable stock, which would lead to disappointment for his customer who would be tempted to switch to competitors at the same time. 'coming.

Marketplaces, a 4.0 distribution channel?

Marketplaces, or marketplaces, undoubtedly represent a booming distribution network. This was verified during the Covid-19 crisis in France and all over the world.

They attract a growing number of Internet users every day. The number of unique monthly visitors to Amazon is estimated at more than 29 million, nearly 20 million on the competitor Cdiscount and nearly 15 million on the Fnac website. These are potential buyers to whom more modest e-merchants would not have had access because the latter do not have such striking power in terms of digital marketing.

The advantages of a marketplace

For a merchant site, integrating a marketplace offers many privileges.

We have already mentioned it upstream, having a marketplace allows you to take advantage of the marketing impact of the marketplace. For the e-merchant, there will be an impact on his reputation, his visibility on search engines and social networks, etc.

A marketplace also increases the chances of reaching new markets or different customers, who would not have been able to see these products otherwise. Especially since the marketplaces are, for some, generalists, but others are sometimes specialized in a specific field, which allows a monopoly.

One of the other advantages of a marketplace is that it gives a French e-merchant, for example, the possibility of selling their products internationally, which they could hardly have done otherwise. This aspect linked to e-commerce represents a real asset in an international logistics strategy.

A marketplace allows risk control and protects against the risk of non-payment, etc. Logically, this increases sales, since buyers can trust thanks to the secure payment offered by platforms such as Amazon, Cdiscount or even Fnac.

A marketplace allows greater control of its costs, in particular the costs relating to acquisitions. The marketplace will be remunerated only in the event of an effective sale. In this case, no marketing budget and no web platform development are to be expected for the e-merchant benefiting from a marketplace.

In some cases, the marketplace allows buyers to take advantage of the delivery and storage option offered by the marketplace (Amazon Prime for example), it is then fully supported in the distribution of goods, shipping until delivery to the end customer.

Conclusion: supply chain 4.0 is the logistics of tomorrow

As you will have noticed, supply chain 4.0 above all represents the ability of a company to adapt its processes to new consumer requirements. Indeed, it is indeed these requirements that have caused the logistics plans to evolve.

The ever lower price has prompted many distributors to seek to produce in countries where the cost of labor is lower. The recent crisis linked to Covid-19, and new consumer habits, led to growth in the e-commerce sector (products and services) and made it possible to reach 112 billion euros in 2020, up 8.5 % over one year.

With globalization, longer distances and ever faster commitments to deadlines, the optimization of logistical resources has become more complex, as has the anticipation of flows. The challenges of tomorrow's world are also ecological and we see objectives set for cities in terms of sustainable development. The supply chain 4.0 must meet the challenge of finding the right compromise between customer satisfaction and respect for the environment.

This " new " logistics also invites us to rethink organisations. Rather than asking carriers and logisticians to be more efficient, it might be wise to " pool and share logistics resources " and " interconnect networks and services ". Logistics 4.0 can effectively help to implement multiple and multidirectional supply chains.

One of the services offered by XP LOG is the pooling of logistics and transport means in order to anticipate and share resources in the interest of customers and the use of resources wisely.

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