Logistic Trends 2014

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Logistic Trends 2014 by Mind Map: Logistic Trends 2014

1. Megatrends

1.1. Circular Economy & Sustainability

1.1.1. Driving Forces Climate change, higher global energy demands, material resource scarcity, and varying government regulations Ineffective utilization of assets and resources. For example: According to the World Economic Forum, only about 40 % of available load capacity is being effectively used today

1.1.2. Requirements Developing of a business strategy integrating both business profitability and sustainability

1.1.3. Solutions / Best Practices Key enablers of 'circular' logistics are local, regional, and global supergrids, bundled logistics flows, synchromodality, and network orchestration

1.2. Global Uncertainty & Volatility

1.2.1. Driving Forces Even small risks can have unpredictable impact on globally distributed supply chains Causality is not linear but net-like (Network Economy)

1.2.2. Requirement flexible asset management reduction of fixed costs greater scalability more raw goods must be transported over long distances finished products may have to be distributed via different channels or delivered individually to end consumers increased network elasticity, capacities, and capabilities development of smart business networks

1.2.3. Solutions / Best Practice bring sourcing and production facilities closer to customers Switching from the low-cost production capabilities of outsourcing and offshoring back to more individual strategies such as intelligent sourcing and X-shoring

1.3. Omni-Channel Business Models

1.3.1. Driving Forces New shopping habits of customers caused by E-Commerce

1.3.2. Requirements In future, there will be a split between the physical presentation of goods in traditional or digitalized stores in cities or outlet centers, and their storage and delivery Processing of higher volumes but smaller orders to be picked, packed, placed, and delivered Processing and handling of larger quantities of returns, exchanges, and damaged goods

1.3.3. Solutions /Best Practices Setting-up online shops, multichannel management, inventory tracking, and technical support Establishing of lean stores Focus on customers experiences (feel, touch and smell) instead of holding large quantities of stock of every product

1.4. Regional Empowerment

1.4.1. Driving Forces 'In a globally connected world nobody cares if a company is a small business' 'The death of distance' means connectivity and low-cost transmission goods can be achieved without gatekeepers Products sold and moved efficiently by many small traders worldwide

1.4.2. Requirement Expansion of the global footprint is necessary Innovative Payment & Settlement Services Transparent legal rules and administrative procedures

1.4.3. Solutions / Best Practice Logistics Supergrid Smooth and flexible integration of all parties globally along the door-to-door delivery chain

1.5. Collaborative Crowd Economy

1.5.1. Driving Forces Share-Economy: Societal shift from ownership to asset-sharing has been one of the most groundbreaking trends in the last few years, generating a huge variety of new business models using the crowd Collaborative consumption

1.5.2. Requirements Creatingv new business models

1.5.3. Solutions / Best Practices Airbnb which rents private living space to travelers. car2go, mobility.ch MyTaxi mitpackgelegenheit.de MyWays solution by logistic provider DHL Observing Crowd funding platforms: Companies can identify pioneering ideas and participate in their development and application at an early stage

2. Technology Trends

2.1. Big Data / Open Data

2.1.1. Meaning Big data and logistics are a perfect match. Thanks to the vast degree of digitalization, the enterprise’s data can become liquid and shareable in an unprecedented way. Integrated supply chain data streams from multiple logistics providers and open data sources have the potential to overcome logistics market fragmentation and empower global logistics supergrids. According to the McKinsey Global Institute, data sharing and using open data in transportation can enable additional value of $720-$920 billion per annum

2.1.2. Benefits Enhance operational efficiency, visibility, and control over supply chains, assets, and staffing Enable better forecast and real-time adjustment, reacting to demand and capacity fluctuations More reliable, customized, personalized logistics services

2.1.3. Solutions / Best Practices last-mile optimization with real-time scheduling of assignments for crowd-based pick-up and delivery and real-time prediction of ETA (estimated time of arrival) predictive network and capacity planning at both strategic and operational level Supply chain risk management Use big data to expand revenue streams of existing products and create new data-based products (e.g., market intelligence, real-time local intelligence, environmental intelligence).

2.1.4. Example www.dhl.com/Resilience

2.2. Cloud Logistics

2.2.1. Meaning Logistics-as-a-service (LaaS), logistics mall, Supply Chain-as-a-Service (SCaaS), and on-demand SCM belong to the ‘Future Topics of Logistics’, according to the Scientific Advisory Board of the BVL Cloud computing meets the challenges of complex, distributed, uncertain, volatile, and less-predictable logistics environments

2.2.2. Benefits Reduction of the total cost of services (including costs for installations, upgrades, maintenance fees, IT resources) Agility, flexibility, and elasticity of business; quick and cost-efficient reaction to less-predictable events and changing customer requirements Risk reduction, globally accessible services, easy and fast implementation Customized, personalized logistics services become affordable and more of a commodity More transparency, control, information, participation

2.2.3. Solutions / Best Practices More and more companies offer open, web-based access to a complete range of modular, flexibly configurable logistics-ondemand services Pay-per-use models allow flexible reaction to market volatility Service integration with new, emerging sales channels like social, community, crowdfunding Cloud IT Services: Cloud computing enables the provision of scalable service levels (e.g., fixed or flexible delivery times) without additional resources Cloud-based subject-oriented BPM: Process cloud-based concepts such as subjectoriented BPM (S-BPM) provide new methods to cope with the complexity of globally distributed, federated logistics networks and enterprises

2.2.4. Examples www.shipwire.com S-BPM: www.metasonic.de

2.3. Autonomous Logistics

2.3.1. Meaning This utilizes innovations such as cellular transport systems,self-steering vehicles, and unmanned aerial vehicles (UAVs) that offer new transport and warehousing solutions, enhancing the efficiency of established assets and providing infrastructure alternatives in remote areas Autonomous devices can be found along the entire supply chain: From ‘warehouse of the future’ to driverless vehicles and unmanned aerial vehicles for last-mile delivery. In the coming years, autonomous devices will reach maturity and become reality in logistics and everyday life

2.3.2. Benefits Reduction of traffic, risks, accidents, congestion and pollution Increased reliability and elimination of human error Increased operational productivity Logistics network expansion and enhancement Increased service availability and flexibility Reduced transport costs and time

2.3.3. Solutions / Best Practices Warehouse of the future: In future, warehouses will transform into fully automated environments. Traditional push-driven multiple-layer distribution will be replaced by consumer-driven pull for goods directly from a central warehouse Cognitive vehicles: Following on from the first wave of pilot projects such as Google’s self-driving car, an increasingly hot topic in the automotive industry is self-steering vehicles capable of acting and reacting proactively on behalf of the operator Autonomous logistics in the air: In 2013, the first demonstrations of UAV application pilots in logistics went public. Today, UAV pilots and research projects are on the agenda of all big players in the CEP (Courier Express Parcel) sector

2.3.4. Example DHL Parcelcopter Parcelcopter Amazon

2.4. 3D Printing

2.4.1. Meaning 3D printing or additive manufacturing (AM) is a process of making three-dimensional solid objects from a digital model. This disruptive technology will change tomorrow‘s logistics by adding a new diversity of manufacturing strategies. Innovative logistics providers can become thought leaders in orchestrating complex networks that include traditional and 3D manufacturers

2.4.2. Benefits Participate in new market segments, such as a ‘digital warehouse’ or ‘3D fab’, and become a trusted service provider for secure data hosting and exchange Increased service availability and flexibility Reduced transport costs and time

2.4.3. Solutions / Best Practices 3D printing will lead to a new diversity of manufacturing strategies: Some industries will be able to completely replace traditional fabrication by additive methods; some will use 3D for selected ingredients of their end products More speed and cost-savings in prototyping This diversification, as well as the integration between traditional methods and 3D printing, will challenge established logistics networks. Especially aftermarket supply chains (e.g., warehousing and distribution of spare parts 3D opportunities for logistics providers: These range from purely supporting the new logistics needs of the industry (e.g., 3D material supply) to becoming a player in the industry itself (e.g., by establishing own 3D on-site factories located close to hubs, warehouses, and fulfillment centers, or by hosting and distributing 3D data models).

2.4.4. Examples www.sculpteo.com www.stratasys.com

2.5. Robotics & Automation

2.5.1. Meaning Due to the growing popularity of e-commerce, an increasing number of small individual orders have to be handled in warehouses, and fulfillment and distribution centers. Robotics and automation are an increasingly hot topic for global players.

2.5.2. Benefits Flexible automation and robotics solutions offer more agility and elasticity of logistics infrastructure capacity to cost effectively meet market fluctuations Optimization of time-intensive laborious activities Improved efficiency and cost reduction More personal flexibility through 24/7 service availability

2.5.3. Solutions / Best Practices Flexible automation in warehousing and fulfillment: tilt tray sorters (rapid continuous loop sortation conveyor), Self-learning systems, autonomous transport robot Parcel robots Automated pickup and drop-off points (PUDOs) Autonomous transport shuttles steer each other with complete freedom through available space without any guidelines, by using swarm intelligence

2.5.4. Examples www.dematic.de in scientific cooperation with www.fraunhofer.de

2.6. Internet of Things

2.6.1. Meaning The Internet of Things (IoT) empowers smart objects to be active participants in self-steering, event-driven logistics processes IoT is disruptively changing industry rules, leading to a new revolutionary step: Industry 4.0 is imminent. Wireless sensor networks turn physical space into an information system and enable maximum flexibility in logistics

2.6.2. Benefits IoT increases significantly the transparency, traceability, and reliability of all logistics processes IoT automates decision-making in complex environments, and increases efficiency through flexible use of logistics infrastructure and equipment Logistics costs reduction (in-stock items, delivery routes) End-to-end real-time monitoring of goods condition, and smart interactive logistics solutions, tailored to individual requirements and routines

2.6.3. Solutions / Best Practices Intelligent objects, smart packages, and load units Intelligent grids: The sensor network, sensor cloud, or even smart planet represent an overall dynamic framework with self-configuring capabilities enabling smart services by interconnecting (physical and virtual) thing Intelligent technologies enabling IoT: These include RFID, near-field communication, barcodes, visual recognition, 3D scanning, remote control, machineto- machine (M2M) communication, object-generated content (OGC), device-to-grid, geotagging, GPS, wearable computing, responsive environments, augmented reality, mobile internet, semantic data integration, and IPv6 (Internet Protocol version 6) Smart application areas: smart cities (lighting, traffic control), smart transport (electro mobility, smart cars), smart buildings (presence sensors, thermostats), smart energy (electric grid), smart living (entertainment), smart health (bio sensors, remote health), smart industry (production control, robotics), and smart planet (environmental sensors).

2.6.4. Examples www.smart-rti.de

2.7. Localization & Local Intelligence

2.7.1. Meaning By adding the dimension of ‘where’ to the traditional parameters of ‘who’, ‘what’, ‘when’, and ‘how much’, LI offers critical insights to enterprises, enabling better operational and strategic decisions and supporting process improvement and applications automation.

2.7.2. Benefits New insights into operational processes, asset, resource and capacity utilization Technology foundation for warehouse of the future New sources of real-time location information for more precise network design and asset management Localization services can provide real-time information on the current location of couriers and shipments

2.7.3. Solutions / Best Practices Indoor localization and indoor navigation Indoor location analytics Location intelligence for places of interest and urban landscapes Crowdsourced location information Next-generation predictive traffic management: Intelligent real-time, dynamic traffic orchestration by reserving timeslots for cars on the streets, thus preventing traffic jams, enabling traffic flows twice as fast, and reducing CO2 (Greenway/ NUNAV).

2.7.4. Examples www.locoslab.com

2.8. Wearable Technology

2.8.1. Meaning The term ‘wearable computing’ refers to computerpowered devices or equipment that can be worn by a user, including clothing, watches, glasses, shoes, and similar items

2.8.2. Benefits Real-time operational analytics with proactive correction capabilities Revolutionary potential for task execution through gesture and thought control, hands-free operational processes Holistic life experience seamlessly integrating the online and offline worlds into a new enhanced reality

2.8.3. Solutions / Best Practices Wearable devices supporting working routines Wearable devices offering context information and enabling context-driven, hands-free interaction Wearable devices monitoring physical and mental condition, health and fitness Wearable books and Working instructions

2.8.4. Examples Airwriting - Research prototype at Karlsruhe Institute of Technology (KIT) / Germany

2.9. Augmented Reality

2.9.1. Meaning By adding virtual layers of contextual information at the right time and in the right place, augmented reality (AR) will provide new perspectives in logistics planning, process execution, and visual analytics

2.9.2. Benefits Picking solutions enable higher efficiency, error-free processes with ongoing quality checks and navigation guides (reduces training time Reduction of assembly training Shorter warehouse handling times Increased performance, reduced costs, improved quality

2.9.3. Solutions / Best Practices Logistics operations, manufacturing, and production covering execution of warehouse operations such as picking and assembly (pick-by-vision), facilities service and maintenance, staff training, and risk, quality, and incident management. Logistics transport, first-and-last-mile logistics Logistics planning and modeling - integrative modeling of warehouses with virtual walkthroughs, simulations of air, light, and acoustics, conveyance integration, material flows Visual analytics support fast operational decisions by providing 3D or 4D visualization of complex data

2.9.4. Examples www.vuzix.com

2.10. Low-Cost Sensor Technology

2.10.1. Meaning With sensors, everything can get measured. As universal tools capable of online data access and exchange, and designed to be physically robust, smartphones and tablets are clearly suited to many business and industrial applications. With access to low-cost sensors, logistics is likely to increase the use of sensors, creating smart infrastructures for monitoring, inspecting, and controlling industrial and logistical processes.

2.10.2. Benefits Picking solutions enable higher efficiency, error-free processes with ongoing quality checks and navigation guides (reduces training time) Reduction of assembly training Shorter warehouse handling times Increased performance, reduced costs, improved quality

2.10.3. Solutions / Best Practices Once equipped with one or more sensors, mobile devices are ideal for monitoring and controlling the supply chain which may enable completely new business uses and improve current solution The sensor technology in mobile devices is already suitable to execute a broad range of logistics operations, from barcode scanning, freight image documentation, proof of delivery (POD) capture, and wireless RFID-identification, to smartphone and cloud app-supported tracking, and synchronization of delivery routing and customer availability.

2.10.4. Examples Volume Scanning Using Low-cost 3D Sensors

2.11. Crypto-currencies & Crypto-payment

2.11.1. Meaning Started by an underground community of cyberpunks in the 1990s, crypto-currencies and crypto-payment quickly evolved to become a significant technology trend with strong potential as a serious alternative to the established financial infrastructures of governments, banks, and credit card companies Crypto-currencies and crypto-payment as a peer-to-peer version of electronic cash (allowing any two willing parties to transact directly with each other) is based on cryptographic proof, without financial institutions being involved

2.11.2. Benefits Potentially new payment and charging modes for logistics services Flexible cross-national payment and settlement options End-to-end-convertibility and equality of conventional currency, crypto-currency, and loyalty points Fluid financial transactions and settlement across country and currency boarders based on a virtual reference currency as a potential core capability of a global logistics supergrid

2.11.3. Solutions / Best Practices Service provider like Ripple or Coino enable secure, instant, and nearly free global financial transactions of any size with no chargebacks Crypto-currency integration into established platforms: First players are already providing services that allow online shops to accept crypto-currency while getting paid in local currency (e.g., Cryptopay, UK). Convertibility of virtual and physical currency - In future, people will earn credit points by just executing daily routines (e.g., jogging or making phone calls), which will be easily transferable into crypto-currency or physical currency

2.11.4. Examples www.ripple.com

3. Social & Business Trends

3.1. Supergrid Logistics

3.1.1. Meaning Supergrid logistics rests upon a well-structured, modularly configurable logistics service portfolio. Per service module, internally operated or external services can be selected, orchestrated, and executed ‘on demand’.

3.1.2. Benefits Global players: Enhancing the networks. Small companies: Participating in the global market. Reduction of infrastructure and service development costs, rapid time-to market More flexibility, fast and cost-efficient configuration of individual solutions and scenarios, and cost reduction

3.2. Real-Time Services

3.2.1. Meaning Real-time services provide data in cycles timed to seconds that can be received, analyzed, and integrated into operational activities at any time and in any location.

3.2.2. Benefits Increases efficiency through faster processes and real-time data Enhances customer service, enables value-added services Improves visibility, transparency, capabilities, and security functions (e.g., asset control, theft reduction) Information at any time about the location and delivery status of goods

3.2.3. Solutions / Best Practices Real-time tracking services Real-time order management Real-time risk management Real-time inventory services Real-time tracing of intelligent logistics objects

3.2.4. Example Pulse.Agheera.com

3.3. Anticipatory Logistics

3.3.1. Meaning predictive logistics planning and execution can profit from new analytics methods as well as from new types and sources of data

3.3.2. Benefits Increased prediction accuracy Efficient resource and capacity utilization (e.g., warehouse and transportation) Supply chain risk reduction

3.3.3. Solutions / Best Practices Volume forecast and predictive capacity utilization and planning Anticipatory shipping Predictive supply chain risk management

3.3.4. Example www.transmetrics.eu

3.4. Urban Logistics

3.4.1. Meaning The sustainable and climate-friendly supply circle of goods and services, when weighed against customer demand for consumer products and home-delivery services, will influence the development of advanced urban logistics solutions.

3.4.2. Benefits New operational areas for logistics providers to offer 4PL services; integrated logistics planning for airports, hospitals, construction sites, etc., and innovative logistical rent-and-share solutions, urban mining, and reverse logistics Decreased variability through adopting a planned model Reduced externalities associated with last-mile deliveries Improvement of flexibility, speed, and quality of logistic services

3.4.3. Solutions /Best Practices Urban freight consolidation through logistics clusters Urban supply-stream consolidation by bundling logistics and non-logistics services (e.g., retail, MRO, medical care, convenience services) into a ‘smart grid’ for cities Utilization of urban infrastructure using existing infrastructure for additional logistics purposes Sector-specific urban navigation solutions Next-generation PUDOs (pickup and drop-off automation solutions)

3.4.4. Example www.binnenstadservice.nl http://www.iml.fraunhofer.de/de/themengebiete/verkehrslogistik/themen_transportverkehrlogistik/ebase4mobility.html

3.5. Logistics Marketplaces

3.5.1. Meaning Electronic logistics marketplaces (ELM) offer business partners, as well as private customers, flexible logistics services tailored to the specific one-off requirements ofa shipper at time of request

3.5.2. Benefits Access to a broader customer base Flexible sourcing of externally operated services insteadof long-term partnerships and dependencies Optimized capacity utilization, acquisition of additional capacity, reduction of empty rides Access to flexible logistics service More price and service transparency

3.5.3. Solutions / Best Practices Marketplaces for cloud-based IT services enabling logistics processes B2B logistics marketplaces M2C (manufacturer-to-consumers) and B2C logistics marketplaces C2C marketplaces for transportation services(e.g., car sharing for parcels and cargo)

3.5.4. Examples www.logistics-mall.com

3.6. Omni-Channel-Logistics

3.6.1. Meaning In future, e-commerce and traditional brick-and-mortar commerce will no longer move on parallel tracks The next evolutionary step within the retail business is blending online and offline into a single 24/7 shopping experience

3.6.2. Benefits Increasing volumes in the area of B2C delivery New business opportunities in warehousing, fulfillment, and transportation services tailored to the needs of omni-channel commerce Combining the best parts of online and offline shopping Flexibility and convenience, with shopping and delivery services fully integrated into daily routines

3.6.3. Solutions / Best Practices Digitalization of traditional storeswill include tablet/ smartphone integration Store as a materialized app Customer behavior as a currencyincludes runnersin Mexico paying for Nike goods with kilometers completed More alternative delivery services More same-day delivery with intelligent storageand warehouse network enhancements Retail platforms and marketplacesenabling omni-channel commerce include payment solutions and end-to-end configurable logistics services

3.6.4. Example www.hointer.com

3.7. Crowd Logistics

3.7.1. Meaning Crowd-based business strategies such as crowdsourcing first-and-last-mile activities by integrating daily individual routines into professional logistics processes

3.7.2. Benefits Network enhancement, better capacity utilization, reduction of transportation costs New business opportunities by providing crowd-based logistics solutions New level of customer participation Reduction of transportation costs Flexible service options for deliveries

3.7.3. Solutions / Best Practices Crowdsourcing Crowdfunding Crowdnavigation Crowdmining and web-screening

3.7.4. Example www.myways.com

3.8. Fair Logistics

3.8.1. Meaning As a responsible member of the global society, logistics is challenged to proactively address social and environmental issues, and to develop concepts and solutions providing social benefit, creating value, and generating social win-win outcomes for all parties involved alongthe supply chain

3.8.2. Become a specialist service provider for circular economy business (e.g., reuse/recycle)

3.8.3. Improve business sustainability by solving social problems

3.8.4. Solutions / Best Practices Establishment of fair products as a standard part of retail portfolios, fair-trade promotion Establish collaborative business modelsby involving private individuals from around the globe Take over responsibility for fair conditions and social benefit along the entire supply chain (e.g., fair working conditions, fair pricing, environmentally friendly transportation and production) Enable the circular economy

3.8.5. Examples www.dhl.co.uk/envirosolutions

3.9. Grey Power Logistics

3.9.1. Meaning Grey power logistics – the logistics for an aging society – will offer new services to answer the resulting challenges of this demographic development (e.g., special home delivery services and health logistics services)

3.9.2. Benefits Potential new business opportunities, e.g., transportation of elderly, sick, and disabled people, proactive supply of convenience and health goods Further expansion of e-commerce with special focus on aged customers leads to increased transport volumes and individual delivery schedules

3.9.3. Solutions / Best Practices The aging population needs both emergency healthcare and well-being services delivered in clinics, hospitals, and surgeries, and at home Working beyond the age of 67 will require logistics organizations to offer flexible HR conditions to employees

3.9.4. Example

3.10. Convenience Logistics

3.10.1. Meaning Convenience logistics is the response to the specific requirements of next-generation e-commerce, covering the entire spectrum of commodity goods including sensitive and cold-chain products

3.10.2. Benefits New business opportunities in the field of B2C food logistics Lower food distribution costs, due to using standard networks Flexible solutions to connect with customers (B2C)

3.10.3. Solutions / Best Practices Cold-chain network enhancement Solutions integrating real-time prediction with standard time schedules enable dynamic and cost-efficient delivery integrated into standard logistics networks Established automated pickup-and-delivery solutions can be enhanced to enable cold-chain services independent of the customer’s presence at the delivery location (e.g., cold-chain parcel lockers) Smart, reusable, and recyclable packaging, tailored to standard parcel network capabilities, is required to enhance efficiency, reduce customer effort, and support environmental protection

3.10.4. Example www.allyouneed.com

3.11. Multiple Purpose Networks

3.11.1. Meaning By using standard networks for the transportation of special goods, network and capacity utilization can be optimized, and costs and delivery times for both customers and logistics providers can be reduced.

3.11.2. Benefits Optimized load capacity for standard network trucks with enhanced capabilities (e.g., temperature control utilities) for special and dangerous goods Cost savings due to better resource efficiency and capacity utilization

3.11.3. Solutions / Best Practices In future, standard network providers will enhance their capabilities to enable temperaturesensitive transport and handling services (e.g., for B2C food-chain deliveries) Use of public transportation and infrastructure for logistics purposes Public spaces such as parking garages in cities can be used during the night as warehouse, storage, and distribution centers (e.g., eBase4Mobility)

3.11.4. Examples Allyouneed.com MyTime.de eBase4Mobility

3.12. Shareconomy Logistics

3.12.1. Meaning The web and its open-source culture has expanded the circle of people with whom each of us can share; it has taught us how to share, and made sharing a commodity of social interaction.

3.12.2. Benefits Flexibility, agility, elasticity, better capacity and capabilities utilization, ‘on-demand logistics infrastructure’, one-off cooperation New hybrid business models, listing excess capacity (truck load, warehouse capacity, and equipment, etc.) on peer-to-peer rental sites or shareconomy courier platforms Operational costs optimization, environmental protection, CO2 reduction

3.12.3. Solutions / Best Practices Collaborative consumption. Logistics providers are requested to support this trend with high-quality C2C services, including value-added services such as secure peer-to-peer online and offline payment solutions By sharing development, investments, logistics infrastructure (warehouses, fleet, networks, etc.), and services with coopetitors within flexible and smart business networks, logistics providers can increase capacity utilization, and reduce costs and CO

3.12.4. Example www.Stuff2Send.com www.CheckRobin.com www.CarPoolCargo.com

3.13. Near- and X-Shoring

3.13.1. Meaning As an alternative to the offshoring praxis, near-shoring moves core business and enabling services closer together (e.g., to neighboring countries). The concept of X-shoring provides holistic methods to dynamically rebalance logistics networks, meeting a broad range of decision criteria.

3.13.2. Benefits Lower freight and in-transit inventory costs Greater forecasting flexibility Supply chain risk reduction Improved speed-to-market Time-zone advantages Improved cultural alignment

3.13.3. Solutions / Best Practices A typical development is the closer collaboration between US and Mexican companies. Sourcing from surrounding countries lowers logistics costs, offering multimodal services (flexibility to choose air, road, rail, and even LTL shipments); shorter delivery cycles enable more effective inventory control; and due to shorter distances, costly warehouses and fulfillment centers canbe avoided X-shoring or Right shoringis the next evolutionary step in 3PL, implying the dynamic rebalancing of supply chains. The approach gives companies the choice of the most appropriate sourcing strategy with respect to current economic conditions (in some cases, it might be offshoring, in others near-shoring

3.13.4. Example

3.14. De-Stressing the Supply Chain

3.14.1. Meaning Adjusting supply chain modules and selecting the right configuration of logistics services according to specific customer requirements in terms of speed, security, carbon footprint, etc., enable logistics to operate more sustainably, at lower cost, and with higher quality.

3.14.2. Benefits Efficient capacity utilization across transportation modes and velocity levels Optimized cost and quality of operations balance Tactical and operational flexibility Tailored transportation and supply chain solutions serving different priorities Logistics costs and operational quality optimization through better orchestration of transportation, storage, and warehousing times and schedules

3.14.3. Solutions / Best Practices ‘Slow Steaming’: Within the sea freight business, already a small speed reduction shows significant impact on fuel costs and the carbon footprint. ‘Synchromodality’:Logistics method allowing dynamic interchangeability of transport modes at any point of the supply chain and at any given time during its execution. Supply chain risk management

3.14.4. Example www.europeangatewayservices.com

4. Technology Enablers

4.1. Internet of 'Everything'

4.1.1. Meaning The 'Internet of Things' has reached a new stage of maturity and become the ‘Internet of Everything’. The things are starting to talk directly with each other and become more intelligent and autonomous The things are building swarms and organizing themselves, dynamically responding to changes in their environment

4.1.2. Solutions / Best Practices Tagged goods that already ‘know’ their entire lifecycle and can autonomously steer their way Fridges generating supply orders for groceries when their content falls belowa specified level

4.2. Social Business & Enterprise 2.0

4.2.1. Meaning While Web 2.0 connects people, Web 3.0 connects information by interpreting the context of the activity

4.2.2. Solutions / Best Practices The ‘semantification’ of company data and open data yields great opportunities to enhance business value by enabling anticipatory and predictive operations, and much more

4.3. Open Data & Data Sharing

4.3.1. Meaning Open data published by governments and private institutions, and a company’s own data shared with partners

4.3.2. Solutions / Best Practices Adjusting and synchronizing transport schedules in the context of, for example, synchromodal and other smart logistics networks

4.4. Holistic human-machine interface

4.4.1. Meaning Abstract concepts, ideas, and data become more and more sensual and seamlessly integrated into the physical world Physical processes can be visualized and simulated in a near-real-life virtual environment allowing the actors to haptically experience their role in the process and bring it to perfection before implementing it in real life Physical processes and information flows no longer run on parallel tracks but interact with and navigate each other through the entire logistics lifecycle

4.4.2. Solutions / Best Practices Car intelligent infotainment, contextual and predictive navigation, and transport management Integrative and virtual modeling and simulations of warehouses and plant operations Pick by Vision enabled on Augmented Reality technologies. Example: http://www.youtube.com/watch?v=WYUn_MVbl9A

4.5. Web Fragmentation

4.5.1. Meaning As the internet becomes a commodity, more from experts and politicians wants to red-flag increasing web fragmentation and insist on global web governance and internet jurisdiction For the logistics industry, unpredictable cyber-attacks on supply chains and logistics infrastructure are likely to be disruptive and even devastating The damage caused by cyber-attacks isn’t merely virtual; it can also be physical – air or rail traffic control, GPS systems, track-and-trace systems, and real-time control applications can be strongly affected

4.5.2. Solutions / Best Practices Establishing regulations in terms of web security, privacy protection, and cryptography

5. Mindmap Author: Marcus Näher www.logisticaudit.wordpress.com

6. Source: Logistics Trend Radar - Delivering insight today. Creating value tomorrow! (accessed on 15.11.2014)