Statement - E-Commerce

Challenges in the age of Logistics 4.0

A good 20 years ago, a development began in retail that has had a lasting impact and changed not only retail itself, but also society, consumer behavior and technology. If we take a closer look at the challenges of Industry 4.0 or the digital transformation today, it is clear that many of the developments were either made necessary by e-commerce or that e-commerce was only made possible by these developments. At the very least, e-commerce (in both B2B and B2C) was largely the role model for Industry 4.0.

Prof. Dr.-Ing. Johannes Fottner is Professor of Technical Logistics at the Technical University of Munich, where he teaches at the fml - Chair of Materials Handling Material Flow Logistics. © Private

When "shopping on the Internet" was launched, the main argument was obviously the previously unimaginable flexibility in terms of time. However, no longer being able to inspect the goods immediately was also associated with a certain degree of uncertainty.

In order to establish and expand e-commerce beyond the already successful book trade into the areas of fashion, consumer goods, etc., a decisive step was necessary for successful implementation: the granting of a far-reaching right of return.

However, this in turn not only multiplies the flow of goods. The goods distribution systems must also enable companies to manage this with intelligent processes and flexible, responsive technology - and do so economically.

Today's distribution centers have to do a remarkable job when it comes to fast delivery. Quality must be guaranteed, because incorrect, missing or late deliveries destroy customer confidence quickly and permanently - the competition is already waiting. Today, systems are in use in which people and technology together not only ensure throughput rates that were unimaginable until recently, but also have to achieve almost 100% delivery quality.

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In the area of article picking, not only fully automated systems, but also pick by light, pick by voice and pick by vision have been developed to make man-machine systems highly efficient and virtually error-free.

Certain product ranges allow the use of fully automated systems. In order to make these scalable and, above all, adaptable, autonomous robots, shuttle systems and automated guided vehicles have been further developed into highly flexible, intelligent subsystems. Volatility, cost optimization, flexibility and efficiency are no longer contradictory criteria, but target values that need to be combined.

Of course, ERP and control systems and their responsive implementation of new requirements are of paramount importance. It is clear that the selection of the optimum system for the optimum application can no longer be based solely on static plan values, but also on the market dynamics of future developments and those over the course of a financial year.

Similarly, changes in the course of business that cannot be planned today will also have to be reflected in the business model in some cases. In the interests of sustainable plant engineering, the useful life must not be too short as a result.

Trade, industry, developers, science and education have achieved enormous things here in recent years and will have to continue to achieve great things in the coming years. Logistics 4.0 is not coming tomorrow, but has been state of the art for years.

Prof. Dr.-Ing. Johannes Fottner is Professor of Technical Logistics at the Technical University of Munich, where he teaches at the fml - Chair of Materials Handling Material Flow Logistics. The chair is based in Garching near Munich.

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