To keep the financial sustainability in a highly competitive and challenging environment, the transportation and logistics companies need each time more to make bold strategic decisions. The concept logistics 4.0 based on technology, intelligence and data analysis will support this new scenario and optimize the goods transportation, with better routes planning.
The Brazilian logistic matrix is focused on the highway modal (62.70%, according to study performed in 2016 by Ipea – Institute of Applied Economic Survey) as long as the railway sector responds by 21.70% and waterway 11.70%. This concentration, along with factors such as precarious roads, cargo theft, among others, makes the Brazilian logistic cost to be high.
Information of Transportation and Logistics Plan from CNT – National Transport Confederation – show that in Brazil, in 2016, the logistic costs in highways represent 11.6% of the GDP – Gross Domestic Product. In comparison, in the United States, the percentage is 8.7%.
And for the companies, the estimation is that the expenses with logistics, considering costs with transportation, stocking and warehousing, represent 7.6% of your net revenue.
Logistics 4.0 and the New Possibilities
Logistics 4.0 is based on IoT, where trucks, equipment, sensors, cameras and many other “things” exchange real time information. Integrating all these data and transform them into intelligence will assure the business survival. The logistics digitalization reduces costs, improves the efficiency, makes the path flexible, among other possibilities, that generate more value to the business.
McKinsey consultancy performed a study on how the transportation and logistics companies can generate more value and increase their profitability, since the sector commonly presents a ROIC – Return Over Invested Capital – inferior to other sectors such as retail and utilities.
According to the analysts, the future of the logistics sector will be led by some mega trends, which are, among others:
- Mega cities and transportation routes
- Shared transportation
- New markets
- Higher operational efficiency
And what all these mega trends have in common? The technology and intelligence of logistics 4.0: sensors, safe and fast connections transporting the information, Big Data tools that change data into intelligence, asset and logistics solution, such as OKTO platform, that integrate the entire chain.
Connection, intelligence scripting and tracking systems will allow to analyze and cross in real time, for instance, meteorological information, possible traffic jams, traffic restraints, and automatically adjust the route of a truck, optimizing the path from point A to point B inside a mega city.
For the sharing, it is necessary to integrate industrial, administrative and logistic systems of all the partners involved in the transport. Besides, new business models based on the shared economy, as Uber, serve as a model for space sharing between carriers. And, for such, technology and connection are also necessary.
Opening new markets implies in collection and analysis of different information, with the use of managerial tools helping and speeding up the decision making.
However, operational efficiency, planning routes that join speed in transportation and less operation costs will only be possible with automation, mobility, real time monitoring, predictive analysis and smarter loading and unloading procedures.
How Logistics 4.0 Optimize Routes
Identifying smart routes is one of the optimization possibilities offered by logistics 4.0, improving the delivery service and customer service. With logistics process management and governance solutions, it is possible to analyze all the variables involving the cargo transportation, how the best route, conditions and routes circulation restrictions, customers’ restrictions regarding the receipt, roads conditions and even risks of cargo theft.
And what are the main advantages of defining the smarter route for the cargo transportation?
In first place, with the cargo monitoring, we can highlight the optimization of the collection and deliveries routes, planning the routes to meet the schedule, taking into account the delivery time, place and characteristics, with flexibility to follow possible changes identified by the real time cargo monitoring.
This monitoring also contributes to the safety, since it allows identifying in real time any route deviation that, in case not foreseen, may indicate that the vehicle was target of felons and the consequent calling of the police.
In second place, we have the reduction of the operational costs, with fuel economy and lower expenses with the fleet maintenance, like tires change, contributing to the world trend of implanting a sustainable logistics, with less use of natural resources and pollutants emissions.
And finally, adopting better practices, with a logistics turned to the customer, increases the loyalty, offering fair price, delivery deadline, cargo integrity. Such loyalty allows getting competitive advantages and generating value to the entire chain.
The Importance of Integrated Process Management
In logistics 4.0 scenario, administrative and operational procedures must work in an integrated way, contributing for following up the results and offering reports in customized dashboards that deliver intelligence to the decision making.
The unique set of solutions for the Asset Management and Logistics– OKTO – developed by Atech, offers this intelligence in the integrated process management, optimizing:
- The planning and execution of the operation
- The services management
- The events management
- The management of process’ documents and costs
- The schedule of the cargo transportation