Insights

Einblicke / Insights

01
Fly.Bot

The initial hype surrounding the use of drones in logistics has faded. After the first pilot operations, it has given way to realistic pragmatism - there is currently little sign of delivery logistics being turned upside down by the drone. Even though the Gartner Hype Cycle predicts that the drone will only reach the peak of its exaggerated expectations in the future, the reality of logistics is that the drone has already passed through the valley of tears with regard to the expectations placed on it and realistic assessments of possible drone applications in logistics are now pending.


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02
Smart logistics 4.0

Autonomous robots for smart warehouse automation, AI-assisted cameras for container recognition and tracking without any human intervention, and digital twins for the physical warehouse or the planning supply chain show the departure into a digital logistics world. We look at 12 key action areas that are driving the paradigm shift to Logistics 4.0.


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03
coming soon

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03 

Blue Color Cyborgs 
In the Smart Factory and Smart Warehouse, a large part of the information from day-to-day business must be available in real time. Human-machine interfaces (MMIs) make this possible. The wearables or interactive assistance systems help, for example, with the execution of picking tasks, assembly and
manufacturing activities, service and maintenance tasks or employee qualification. We present in particular useful MMIs, thanks to which work in production and logistics is faster, more flexible and error-free today. 

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04

Enhanced efficiency in the Warehouse 4.0
Warehouses and distribution centres are becoming more efficient and automated,
faster, more reliable and smarter. The development stages to the
Warehouse 4.0 are already clearly recognizable today: First of all, we will be presented with a
Dynamic, real-time localization to any box, package, and
every product in stock. Where we will still be in the future
Wearables support us, but the human-machine interface becomes more effective. At the same time, in many places the travel time can be used as the largest part of the time during storage or picking from the system.
can be taken. Only tasks that automats and robots do not have so
efficiently as we do, we will continue to do it ourselves in the future.
For all other activities come (cellular/swarm-based)
Shuttles, independently acting Cobots/Robots as well as AGVs (Automated
Guided Vehicles).

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05

One-touch - everything else would be a waste
Under the buzzword Warehouse 4.0, a number of technologies such as Cobots, Smart Transport Robots or swarm-based shuttles are currently making their triumphal march in the warehouses. Many logistics managers hope that they will make warehouse processes even more automated, faster, more reliable and smarter than ever before. However, the underlying processes are often neglected. Because the use of digital tools per se usually does not deliver any real added value. Only when these technologies are used in such a way that they enable a lean, waste-free warehouse can significant efficiency gains and cost advantages be realized. 

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06

Supply Chain Superpower

The Internet of Things and developments in electronics, mechatronics and information technology are changing the world of logistics enormously. The Internet no longer serves primarily as a source of knowledge and consumption, but also as a communication and connection platform for smart devices and cyber-physical systems (CPS). This creates new opportunities and perspectives for logistics. Companies should already keep an eye on five technologies today. 

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07

Black numbers thanks to green technology
In recent years, many companies have regarded "green logistics" as the means of choice for minimizing risks in the supply chain and polishing up their brand image at the same time. But the greater the verbal commitment, the lower the actual implementation performance. At the moment, it is worthwhile to look into this topic again, as new technologies are opening up new perspectives for green logistics. The article describes these opportunities and concrete approaches for companies. 

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08

Giant traffic jams through online shopping
For city dwellers, online shopping is a popular way to escape the hustle and bustle and traffic chaos on the streets. Unfortunately, in the future the goods will not move to the customer by beaming, but via the known traffic routes. Studies by the Bundesverband Paket- & Expresslogistik (Federal Association of Parcel & Express Logistics) assume that the volume of parcels delivered in Germany today will increase by a third from approx. 3 billion per year today to approx. 4 billion by 2021. Other studies predict that in 2030 about 40 percent of traffic in European conurbations will be caused solely by logistics. Our consumer behaviour is therefore making a major contribution to this pre-programmed mega jam in the conurbations, because in e-commerce we expect ever faster deliveries in ever smaller quantities. 

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09

The chatbot as delivery hero
The market leaders in the logistics sector do not only use the opportunities offered by technological innovations for the effective management of their supply chains. They also consistently pursue the strategy of aligning their supply chains completely with customers and their needs. The article describes the role bimodal supply chains play in this. 

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10

Logistics 4.0: Guide to digital supply chains

The Trucker slogan "As long as you can't send apples by email, we have to share the road" also applies at the beginning of the 21st century. Still. But this "wisdom" loses its validity. Of course, the flow of information and real goods will continue to be the focus of logistics. However, several driving forces are ensuring a rapid transformation to "Logistics 4.0": firstly, a significant change in customer behaviour; secondly, new economic rules and thirdly, new technological opportunities (see chart). Three megatrends in logistics 4.0 show what knowledge and skills are needed to actively shape this change. 

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11

How to manage the last mile smartly
The current delivery concept for the last mile is no longer suitable for our inner cities: many delivery vehicles of parcel and express service providers standing in second lanes with their hazard lights on are blocked by dense traffic and themselves cause further bottlenecks and obstacles for other road users. Looking at the forecast growth rates in online trade or the trend towards ever shorter delivery times, it is clear that this problem will not solve itself.

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Fly.Bot

Fly.Bot

 

When will you get your pizza delivered by drone?

A status on the use of drones in logistics

By Dr. Wolfgang Keplinger, ECCELL GmbH

 

The initial hype surrounding the use of drones in logistics has faded. After the first pilot operations, it has given way to realistic pragmatism - there is currently little sign of delivery logistics being turned upside down by the drone. Even though the Gartner Hype Cycle predicts that the drone will only reach the peak of its exaggerated expectations in the future, the reality of logistics is that the drone has already passed through the valley of tears with regard to the expectations placed on it and realistic assessments of possible drone applications in logistics are now pending.

 

Three different areas of use for drones in logistics have emerged. One for transporting information, two for transporting physical loads.

 

  1. Drones for the extraction and transport of information.

The inspection and monitoring of large outdoor facilities such as bridges, power lines, wind farms or photovoltaic plants is the most widely realized application of drones outside of logistics. More logistics-related but similar drone applications for the extraction of information are the external visual inspection of large aircraft, the monitoring of production plants with regard to the inflow of trucks or of port facilities via the inflow of ships. In the latter applications, however, the drone competes with GPS-based localization solutions in combination with geo-fencing.

 

In logistics itself, the most widespread drone application at present is that for the automatic recording of inventories or for inventory creation, predominantly in manual pallet warehouses. The providers of corresponding systems see the advantage of these logistics drones in the generation of current and correct inventories, as well as in the simpler, safer, more correct and more efficient recording of this inventory data. The main applications for this are found in warehouses in the food and chemical industries, as well as in fast-moving warehouses. However, this application must be countered by the fact that drone-assisted inventory serves to conceal weaknesses in the existing process (namely the lack of knowledge of which material is currently stored in which place) by means of an efficient, technically digitized solution. In the spirit of a lean paradigm that also applies to digitization, however, only processes that are efficient, waste-free and robust should be digitized.

 

Three technologically different types of inventory drone are offered on the market:

  • Inventory drones flown manually by a human pilot
  • Drones flying autonomously
  • "Follow-me" drones that follow a ground-guided autonomous rover

The future, of course, belongs to the two autonomous solution directions. The advantage of rover-based drones lies in the simpler navigation software for the drone (the AMR rover takes over the navigation in the x/y axis) but above all in a significantly longer flight time. Because the drone is connected to the rover via a cable, a much more powerful and thus heavier battery can be integrated into the rover, which increases the flight time of a drone with one battery charge tenfold from 0.5h to 5.0h. However, autonomous flying drones with a charging station with multiple batteries and autonomous battery replacement will also make progress in this regard. If the current areas of application of the inventory drones are aimed primarily at the non-operational times in a warehouse (night/weekend), in the future the autonomous drones will also have no restrictions on simultaneous operation with the (autonomous) mobile warehouse equipment. However, for the accuracy of the inventory creation itself, it is not a disadvantage to perform it in the non-operational warehouse time.

The drone as a technological tool to be able to reach all storage bins easily and without much additional effort is, however, only one aspect of this solution. Another important technological component lies in an AI-assisted camera for label recognition, a camera for taking photos of the labels, software for reading the label information, and an LED light for illuminating the camera area, since the drones are also used during non-operational (and thus unlit) storage time. I.e., the novelty character of this technological solution lies not only in the drone as a flying device, but also in the autonomous control of the drone and/or the rover and, above all, in the AI-based computer vision that recognizes and can read and store labels or containers/pallets. The leading provider of these solutions in Germany is Doks. However, inventory drones can also be obtained from Linde, Eyesee, Corvus, Ware, Flytware and other suppliers.

 

With these technologies (AI-based computer vision), a described drone system can also be used for counting (empty) containers, i.e., for warehouse areas where there is usually no booking of incoming and outgoing containers. This can happen in connection with a drone flying over the storage area (both inside a storage building or outside/outdoor storage area) or without drones by fixed mounted ki-supported camera systems on the building ceiling.
 

2.     Drones for intralogistics transport

Another important area of application for logistics drones is in the intralogistics sector for the transport of physical goods. Here, the drones will not take over the transport of large material flows/volumes, but will be used in a well-selected spot-to-spot transport area. The large mass flows will continue to run on the ground in the future.

 

The drone operations tested in pilot applications or in continuous use in this regard are used

§ In large-scale production plants to transport urgent express deliveries of defective parts on the line in order to avoid production interruption or line stoppage

  • to link external logistics hubs with production plants (also for express deliveries, as Seat does at its plant in Martorell, for example)
  • the connection of decentralized units with a central laboratory equipped with high-end equipment (e.g., at ThyssenKrupp, where 4 blast furnaces were connected to the central laboratory via a drone)
  • the connection of operating theaters with a central laboratory if the latter is spatially distanced

 

All intralogistics transport applications have one thing in common: they transport individual products or samples that are not too large and not too heavy and that are needed quickly at a more distant location. In doing so, the drones usually fly no further than 5 km, no longer than 0.5h and no faster than 50 km/h. The advantage of many of these intralogistics solutions is that they are usually flown over private company grounds; public areas are not affected, which facilitates the sometimes lengthy, expensive and often not yet regulated acquisition of flight licenses. Dealing with the problem areas of logistics drones, their noise and ensuring the safety of transport, is also easier to clarify and regulate on private property than for drones flying in public space.
 

3.     Last Mile Delivery

The third major area of application for drones is in the delivery of (e-commerce) shipments over the last mile. Here, all major logistics providers such as Amazon, UPS, DHL, FedEx and others have had their first pilot experiences with drones. Three useful areas of application have emerged:

1. supplying generally sparsely populated areas that are difficult to reach, such as islands or mountainous regions.

2. supplying densely populated urban areas from urban logistics hubs to be faster than traditional delivery by parcel truck (0.5h - 2.0h delivery)

3. drones brought to the delivery region by parcel truck, then assisting the driver in covering the very last mile

Technologically, the main issues for small parcel drones have largely been resolved. Current development has now reached the point where Volocopter is working on an all-electric drone that can transport a pallet weighing up to 200 kg over 40 km.

 

Delivery over and into sparsely populated areas is not only affected by permits, but also by the question of economic viability. The biggest problem with using drones for last-mile delivery in densely populated areas at this time is

  • The acceptance by the general population (noise and safety) and especially
  • The lack of regulations on the operation of drones in public areas.

Switzerland is considered a driver of innovation in this area and plays a pioneering role in Europe. Since 2017, the Swiss Federal Office of Civil Aviation and Skyguide have been working together to test regulated drone traffic in public areas. Issues such as flight altitudes, safety, control, blocked and permitted corridors or entry lanes/drone highways for reaching major cities are being discussed and clarified. Regulations, safety in public spaces and noise caused by drones are the biggest hurdles to making last mile delivery by drones a breakthrough. These hurdles are currently so great in Europe that delivery by drones will not become a standard offering of logistics service providers or parcel and express service providers in the next few years. In the next few years, you will get your pizza delivered faster and faster and with a high probability still warm. However, the probability that it will be delivered to your home by drone is very low for the next few years.

Smart Logistics 4.0. 12 fields of action


By Dr. Wolfgang Keplinger, ECCELL GmbH


Autonomous robots for smart warehouse automation, AI-assisted cameras for container recognition and tracking without any human intervention, and digital twins for the physical warehouse or the planning supply chain show the departure into a digital logistics world. We look at 12 key action areas that are driving the paradigm shift to Logistics 4.0.


1.         I, LOGISTICS-ROBOT 
           
Smart productivity booster @ zero-defects

In the past, you either had a manual warehouse or a very rigidly automated warehouse with expensive, heavy stacker cranes. Intelligent warehouse automation with smart and flexible warehouse robots is one of the most significant current trends in logistics. Smart automation options in the warehouse include:

  • Automated shuttle warehouses with many small robots/shuttles instead of the large, heavy and less flexible stacker cranes.
  • Pick buddies, (e.g. from Locus, Geek+ or 6River Systems) that pick up manually picked goods from the picker and bring them to the shipping department
  • Shelf buddies, (e.g. from Amazon or Swisslog) that bring entire shelves to the pick station, where they are then picked manually
  • Conceptually completely new, smart automated warehouse types such as

Autostore, which does not require racking and achieves enormous
   storage density by directly stacking totes

Servus, a shuttle system where the robots travel on rails to the
   production area and transfer the picked totes directly to the assembly
   line.

Exotec, a shuttle system in which the shuttles independently take over
   the vertical movement (climbing on the rack), but otherwise move freely
   and autonomously

  • Autonomous picking robots (e.g., from Magazino or identytec), which autonomously pick or move the material/containers into the storage bin
  • Cobots that unstack, sort, empty and queue picks or bins
  • Autonomous Mobile Robots (AMRs) that move independently and autonomously in the warehouse alongside the employees working there and transport and move material and containers as underride/stacking/KLT-FTFs
  • Autonomous tugger trains (e.g. from Schiller, Linde or Asti) for transport on routes with high transport volume

All robot-based solutions are characterized by significantly increased productivity and extensive freedom from errors. At the same time, the systems are intelligent, partially autonomous, collaborative, flexible and agile, scalable, electric, energy-efficient and plug&play. They help to relieve employees of heavy, unergonomic handling activities and in many cases take over those work steps that are tedious, difficult or not really value-adding from a lean point of view (e.g. long transport routes).
 

2.         FINALLY HANDS-FREE
           
Wearables liberate employees

The now almost traditional scanner in logistics helps employees to clearly identify material and securely document material movements (e.g. putting into a storage bin / picking from a storage bin). But the traditional handheld scanner keeps employees busy searching for where the scanner is or grabbing/putting the scanner away. Thus, the scanner sequentially drags out the work sequences because the employee is either busy with the scanner or walking/driving through the warehouse.

 

The major benefit that Logistics 4.0 has brought to manual workplaces is to free up employees' hands again for the primary value-adding logistics activities: for handling materials or driving forklifts or tugger trains. Freely following the motto: "automate it or wear it," all logistics work that cannot be economically automated, and thus remain manual, should be supported by wearables. These wearables (X-by technologies, gloves, rings) are the technological solution to make information communication or confirmation independent of the hands, so that they are available for the core activities of manual logistics: Handling and steering. And this makes the processes more streamlined, because the information message or confirmation is integrated into the core value-adding steps.


Currently, the most important wearables that enable employees to work hands-free/bi-manually and thus ergonomically and productively are pick-by-voice, pick-by-vision/smart glasses, forklift fork scanners, scanner/RFID gloves, data watches, and NFC and smart motion rings that support access control, quality control, and execution confirmation control.

The wearables increase the productivity of the employees who wear them. But what is at least as important: they improve the ergonomics of the employees and they reduce errors.
 

3.         NO-TOUCH-LOGISTICS
           
Any additional step would be waste

One of the biggest effort but also time drivers in logistics is the number of necessary handling steps, i.e. how often a tote/pallet/carton is handled, picked up, set down, moved, put into storage, retrieved, stacked or retrieved. With regard to low-handling no-touch inbound logistics, the following alternatives are available (starting with the leanest alternative):

  • Warehouse on Wheels (WoW): The materials are staged directly in the trailer/swap body near the location where the materials are to be installed and are only removed from the trailer/swap body and installed immediately when required. WoW is usually applied for large-volume fast-moving items that are planned and staged in a JIT/JIS mode, because there is no logistical goods receipt control in this staging mode.
  • Decentralized goods receipt / ship-to-line: Here, the materials are delivered decentrally, i.e. close to the line, are unloaded and are then available in the form of small buffers with a short range (a few hours) directly at the shoring location. This staging is also primarily used for fast-moving materials in JIT/JIS mode, but has one more handling step than WoW due to the immediate unloading from the truck. In return, fewer gates are needed and trucks can usually deliver more than one material.
  • Central Goods Receiving / ship-to-stock: Here, materials are traditionally delivered to a central goods receiving department, with the usual checks regarding correct material number in the correct quantity, in the correct container and label, delivered undamaged. This process is suitable for all medium- and slow-moving materials. Ship-to-stock, however, requires additional handling steps through storage in the central warehouse (i.e., storage remote from production/assembly line) and provision as needed on the line or in the supermarket by logistics.
     

4.         DATA | DATA | DATA
           
Transformational power of data driven insights

The current starting points of Big Data Analytics are

  • Finding correlations that have not been found before. Modern graphical analysis tools (graph analytics, e.g. from Tableau, Y42, Visplore, ...), which allow intuitive work with large amounts of data, help here. For example, to establish a connection between plants in the market, plant failures and required spare parts and thus ensure the availability of spare parts in the right region in time.
  • Correctly predicting demands and necessary capacities. Just as Amazon does and extrapolates future demand from the sales of comparison/reference products, test regions or the behavior of certain customer groups/clusters and then places the individual items in advance in a quantity to meet demand in the individual customer fulfillment centers. Long before actual customer demand arises or even customer orders are received.
  • Real-time simulation and optimization of supply chains. For example, Spain/USA-based startup Factic offers a SaaS platform that provides predictive analytics solutions for the food and beverage industry. It does this by using data mining and AI techniques to analyze data from internal and external sources and predict future sales. Data-driven decisions are derived from the predicted demand variances to automate procurement. Or Flexport, a San Francisco startup, uses cloud-based, real-time analysis of material volumes from importers, exporters, freight forwarders, airlines, shipping lines, ports, airports, and customs expected at individual ports/airports/logistics hubs. This controls which nodes shipments should be sent through to get into the country and to customers as quickly as possible.
     

5.         AS TO YOUR NEED
           
Marketplaces for everything

The underlying logistics trend is "elastic logistics," which enables companies to make their supply chains more efficient in times of fluctuating demand. This is achieved by increasing or decreasing the size of the logistics network in line with demand. In other words, the company's own formerly fixed assets are replaced by logistics services that can be purchased or returned on the market at short notice.

The basis for elastic logistics are marketplaces for transports, warehouses or the last mile. The transport marketplaces bring together the demand for transport capacity and the supply of forwarders at short notice. These marketplaces have existed for a long time, they exist for truck full loads, for LTL transports but also for general cargo. The newer warehouse marketplaces do the same in the area of storage space and bring together supply and demand there flexibly and at short notice. Some well-known warehouse marketplaces are Flexe, Stowga, Stord, Hive, storingcargo or log-hub. And finally, the last mile marketplaces, which are therefore of great importance because they represent one of the largest single cost blocks (usually at least one third of the total delivery costs). For example, Walmart in the U.S. is currently working on a pilot with a last-mile marketplace to deliver express deliveries in a timely manner. Amazon has announced the Amazon Flex platform, which relies on "on-demand service providers" to accelerate the expansion of its Prime One Day delivery program.
 

6.         CLAIRVOYANCE
           
Knowing your materials – anytime, anywhere

Through the sensor-based connection of objects/items/consignments with the Internet (IoT), we know practically everything about the condition of these connected consignments in real time: in addition to the location, we either know the quality of the incoming consignment in detail, or we can intervene in time before qualitative damage (e.g. due to heat) happens. Here, the latest generation of microscopic sensors (e.g., from RVMagnetics) can help to accurately detect and track this logistical condition. The applications for IoT-connected logistics sensors are now manifold: they help logistics buildings manage climate better, more effectively, and more "green/sustainably." IoT systems for fleet management (e.g. Fleetroot) optimize the use of vehicles in logistics fleets. Or real-time monitoring systems for containers (e.g., the one from IoT startup Globe Tracker) help track or find them more easily.

One example is the service offerings of Roambee, a company that provides a supply chain monitoring system consisting of sensors connected via IoT to a platform or control tower to monitor and track the location, security and condition of materials in the supply chain. And this is flexible on demand, i.e. as Logistics-as-a-Service. Without investments for the user.

This increasingly fine-tuned and real-time-based tracking of individual shipments will increasingly transform the currently rather reactive tracking & tracing into a proactive management of the expected time of arrival (ETA). This means that the backward-looking question of "where is my material currently en route?" will increasingly give way to the question of "when will my material arrive?" and "what do I have to do, if necessary, to be able to meet customer expectations as planned despite deviations from the planned inflow?
 

7.         SUPER-MODELS
           
A virtual representation of everything

Digital twins are a unique virtual representation of a potential or physical object or process. In logistics, there are now digital twins for warehouses/distribution centers. These are 3D models of an actual warehouse so that capacity utilization and storage locations can be optimized, volume/material flows can be simulated for daily operations and bottlenecks can be avoided, or shift and working times can be adjusted to achieve the best possible performance and customer service. dm received the German Logistics Award in 2020 for its new distribution center in Wustermark. Based on digital twins for all stores supplied, the distribution center packs the goods for each store in such a way that the store-specific shelf stocking process can be carried out with as little effort as possible. In other words, the distribution center takes into account which materials are next to each other on the shelf in a specific store when creating the colli.

Logistics twins are also available for entire supply chains. In this case, the supply chain is mapped in a digital twin from the supplier through the individual delivery stages or across the logistics service providers. These digital twins are then used to optimize the planning and controlling processes of logistics. These twins are used, for example, in the Control Tower to control the supply chains. It is recognized how bottlenecks affect the supply chain or which improvement measures are necessary to keep the impact on customer delivery service as low as possible or to prevent the costs for express transports from exploding.
 

8.         PROGRAMED KNOWLEDGE BOOSTER
           
As if by magic

AI (artificial intelligence) is now firmly established in core areas of logistics, leading to significant improvements in efficiency, quality and productivity. Core application areas of AI in logistics include:

  • Predictive demand forecasting - in the area of logistics planning, as a basis for future customer requirements, as input for S&OP processes. The reliable detection and prediction of customer needs long before they actually materialize is the basis for robust supply chains with a high level of customer service. New Zealand start-up Insite, for example, offers AI-based software solutions for price prediction, demand forecasting, and optimization of operations and processes, primarily in the consumer goods and retail industries.
  • Route optimization - both in the last mile of delivery and for AMRs in the warehouse or on the factory floor. Australian startup Adiona is developing AI-based optimization software-as-a-service (OSaaS) that enables companies to improve their logistics processes and reduce costs by optimizing delivery routes statically and dynamically.
  • Process automation based on intelligent recognition of handwritten forms (AI-based OCR recognition). This can significantly simplify, standardize and accelerate many manual paper/form processes in international supply chains.
  • Visual image recognition - AI-enabled smart cameras recognize containers, labels, people, machines, forklifts and display them with ever greater accuracy and reliability. This enables AMRs to find their routes independently, even if they or the obstacles in the routes change dynamically. Other applications support the rapid and reliable counting of materials in containers, the recognition of labels in the course of drone-supported inventory, the detection of containers in the empties warehouse or screen-guided and controlled packing processes.

 

9.         LOST DRIVER
           
Who controls in the background?

The experts distinguish between the categories of assisted driving, automated driving and autonomous driving. The current development status in Germany is just reaching level 3 - automated driving. This means that the first vehicles (e.g. Audi A8, Daimler S-Class) for highly automated, autonomous driving on highways at speeds below 60 km/h and in traffic jam situations will be completely handed over to the driving computer; the driver will then no longer have any control duties. In the field of logistics, there are three main areas of application for autonomous driving:

  • Driverless trucks - TuSimple, an American startup, specializes in technologically equipping trucks for autonomous driving. The company is currently leading the way with its Level 4 capabilities for the U.S., in which the vehicle handles certain highway sections completely autonomously and the driver can completely relinquish control of the vehicle. 
    In Europe, Swedish company Einride offers a driverless truck. Its futuristic vehicle design without a driver's cab attracts attention during the first journeys on public roads between two logistics hubs from application partner DB Schenker.
  • Autonomous vehicles for intralogistics - here the development has taken place in recent years from AGVs (Automated Guided Vehicles - contactless guided vehicles), which were on the road on more or less fixed routes independently of guidance technology, to AMRs (Autonomous Mobile Robots), which are truly autonomous on the road, freely choose the route and can also avoid obstacles without any problems.
  • Delivery rovers for the last mile - these autonomous robots drive on public roads and especially also on sidewalks and take over the home delivery of e-commerce orders or in many cases also the delivery of food orders from restaurants.

 

10.      EVERYTHING AUTOMATED
               Process automation not only physically in the warehouse

With the new blockchain technology and RPA (Robotic Process Automation), technologies are now available that also enable automation of previously manual/back-office processes. The blockchain-based smart contracts allow the automatic execution of process steps if certain conditions are met. The advantage of these smart contracts also lies in the fact that these conditions do not necessarily have to be met on site, but the processes can also be triggered remotely. This makes blockchain technology suitable for automating the information/paper flow in supply chains. Payments can be triggered or a transfer of ownership or responsibility can be confirmed when certain physical conditions have occurred (such as goods arrived at port XY) or when certain paperwork such as waybills have been recorded at certain locations. In this way, customs clearance can also be simplified and (partially) automated. The start-up Steamchain, for example, allows blockchain-based payments, IBM and Maersk have just initiated a Bockchain project for end-to-end global shipment tracking.

RPA (Robotic Process Automation) enables cost-effective automation of repetitive simple tasks (e.g., transferring data between different computer systems), eliminating human error and reducing overhead costs. For example, RPA software performs operations such as invoice processing, automatically storing information in audit trails, or automatically entering a purchase order.

 

11.      SUSTAINABLY GREEN
           
For the sake of the planet

The rather small-scale improvements towards green logistics in the past, have turned into a serious application of environmentally friendly technologies and practices in recent years. Many companies are now working on the well-known 4V strategy to make logistics more sustainable: Avoid, Shift, Reduce, Reward. For example, Gartner found the Supply Chain Top 25 to be learning from the best, working sustainably to reduce their carbon footprint, in many cases working closely with selected suppliers or customers. The key sustainability trends in logistics are:

  • Reduction of the transport volumes through better planning, better demand forecasts, bundling of transports together with suppliers and customers in order to reduce the sometimes 40% empty runs of trucks. After all the activities in the direction of same day/2-h deliveries, Amazon now also offers customers in the USA the option of selecting a delivery only within the next 6 days in order to be able to bundle transports and thus reduce trips and make delivery more sustainable.
  • 0-emission vehicle fleets - conversion of vehicle fleets to all-electric vehicles at logistics service providers. For example, DHL has already put a total of 20,000 all-electric Streetscooters into service in recent years and plans to add another 100,000 to its fleet in the coming years. Or Amazon, which has ordered 100,000 all-electric delivery vehicles from Rivian.
  • Closed logistics loops for containers, or reusable packaging - made possible by new startups offering closed-loop packaging to industrial customers but also to end consumers. These include companies such as Loop, RePack, Returnability or The Wally Shop. Or Ikea, which is currently testing new, environmentally friendly and recyclable packaging made from renewable mushrooms (e.g. from Ecovative).
  • Logistics buildings without CO2 emissions. In addition to using the roofs of logistics warehouses to produce electricity or heat by means of solar roofs, the focus is now increasingly on further optimizing and improving energy control (light, heat, cold) through intelligent IoT-based sensors.

 

12.      SEE AND BE SEEN
           
Reliable vision recognition for everything

The company identpro currently offers a sensor-based solution for scanner-free container/GLT tracking using forklifts. Here, the forklifts are equipped with various sensors, for continuous determination of the current x-/y-coordinate of the forklift in space and a height sensor on the fork to determine the z-coordinate. Each time the fork load is changed, the x-/y-/z-coordinates are written away to a database (digital twin). Thus, with a single, one-time acquisition of a GLT or a pallet (a single scan e.g. at the goods receiving area), any current localization of any pallet/GLT can be determined in real time via the digital twin. This is a working solution for scanner-free but still reliable material tracking of GLTs/pallets via forklift.

Work is currently ongoing on what is probably one of the most impactful technological trends: automated, AI camera-based container tracking without label scanning. The computer vision approach uses AI-based camera systems that continuously track and intelligently identify any movement in the respective camera's field of view from both fixed locations (e.g., mounted on the ceiling of a production floor or warehouse) or mobile locations (on AMR/route trains/stackers). The software then ensures that the movement of each container is tracked seamlessly (offered, for example, by logivations). AI support is accessed for this purpose. Even though many solutions in this area are still in pilot and test applications, this is one of the most exciting developments for the next few years that could truly revolutionize intralogistics.

AI-based label recognition is already a standard feature of the inventory drones on the market today and already works flawlessly there. The use of AI-based camera systems at goods receipt to perform a fully automated logistics check (correct goods, correct quantity, matching the order, correct label, correct packaging, and delivered free of transport damage) is only a natural further development of these camera miracle systems. This will then also bring incoming goods closer to one-touch logistics, make it even more productive, and create one of the prerequisites for automated truck unloading in the future.

 

Not all of the 12 fields of action are equally relevant for all companies. Priorities must be set depending on industry requirements and the Logistics 4.0 roadmap already implemented. What is certain, however, is that among the 12 fields of action that fundamentally change logistics, there are probably at least 8 with real relevance for action for each individual company. Identify your top areas of change and start implementing them as soon as possible. The topics are exciting because there have never been so many opportunities for technological innovation in logistics as there are today.

           

 

Abbreviations

  • KLT / GLT                     Kleinladungsträger / Großladungsträger
  • AMR                              Autonomous Mobile Robot
  • NFC                               Near Field Communication
  • WoW                             Warehouse on Wheels
  • IoT                                 Internet of Things
  • SaaS                              Software as a Service
  • LaaS                              Logistics as a Service
  • KI                                   Künstliche Intelligenz
  • LTL                                Less than full truck-load
  • API                                Application Programming Interface
  • RFID                              Radio Frequency Identification Technology
  • UWB                             Ultra-Wide-Band
  • BLE                                Blue Tooth Low Energy
  • WLAN                           Wireless Local Area Network
  • S&OP                            Sales & Operations Planning
  • OCR                               Optical Character Reading
  • FTF                                Fahrerloses Transportfahrzeug
  • RPA                               Robotic Process Automation
  • ETA                                Expected Time of Arrival

Blue Color Cyborgs

Blue Color Cyborgs
The most important human-machine interfaces in industry
By Dr. Wolfgang Keplinger, ECCELL GmbH

In the Smart Factory and the Smart Warehouse, a large part of the information from day-to-day business must be available in real time. Man-machine interfaces (MMIs) make this possible. The wearables or interactive assistance systems help, for example, with the execution of picking tasks, assembly and manufacturing activities, service and maintenance tasks, or employee qualification. We present particularly useful MMIs that help make production and logistics work faster, more flexible and error-free. 

Headsets:Headphones with microphones are probably the best known and most widespread interactive assistance system in logistics today. Their main application is Pick-by-Voice, in which the order picker is guided to the next item to be picked by means of acoustic announcements and confirms execution by means of a voice command.

Smart Glasses:The data glasses project additional information into the natural field of vision via a transparent display or laser projection into the eye (Augmented Reality). This additional information shows, for example, the order picker the way to the next article, how many pieces he should pick and confirms the execution of the task by scanning the article barcode. Data glasses can also help a maintenance technician to (de)mount the machine / system in the correct order. Smart Glasses can also be used by an experienced expert from a specialist area such as R&D to guide a maintenance technician in his tasks - for example, on site at a local production plant or remotely for special tasks. In this way, the maintenance worker finds faults faster, rectifies them in less time and trains his know-how. In addition, the work steps performed can be summarized directly in a documentation, which contributes to a continuous improvement of quality and know-how management.

Some companies are working on transferring the functionalities of a Smart Glass to contact lenses, so-called Smart Contact Lenses. According to current forecasts, these will be approved and available on the market in 2018/2019.

Data clocks and forearm computers:Data clocks are mini-computers for the wrist that are usually coupled with a mobile device. The data clock collects information from the wearer (e.g. the number of steps taken, the distance travelled) and displays work orders. The advantages: this MMI is very compact and no additional device. Disadvantages are the limited operability and the small display. 

Forearm computers are fully functional computers attached to the forearm. The input takes place at a touch display. The user therefore has both hands free, but the information is not automatically in his field of vision. The monitor can only be read and operated with a certain hand position.

A further technological development of these MMIs could be a thin projector wristband that projects the image signals of a handheld directly onto the user's forearm. The monitor is then operated directly on the skin. The advantage is that the small and light wristband does not disturb, the disadvantage is the warped / weak image.

RFID and data gloves:An RFID glove has an RFID reader for reading out data from RFID transponders. This leaves the user's hands free and rebooking of the picked goods is more or less automatic. Whether from the shelf to the picking trolley, from the picking trolley to the shipping package or the shipping pallet, a scanning step is no longer necessary.

The data glove is different from the RFID glove. This is a 3D input device which, in conjunction with Virtual Reality (VR), enables flexible and simple data acquisition of a specific arm or finger position or the determination of the position of the glove relative to its surroundings. This enables VR applications or robot control.

RFID wristbands and sensor wristbands:An RFID transponder is integrated into a wristband to uniquely identify the user. Thus, machines can be automatically adjusted to the user's body size or the next work steps displayed can be adapted to the employee's level of qualification. This can also include permission to put a specific system into operation or to carry out a specific repair. The execution of critical work steps can be documented, as can who has assembled, tested or released a particular product.

Sensor wristbands can track order pickers' routes and times or transmit data on the physical condition of certain strenuous Tasks.

NFC and Smart Motion Rings:  One ring contains a transponder that communicates with the environment via NFC (Near Field Communication) over short transmission distances. This unlocks systems or smartphones, opens doors or access controls and prevents picking errors. 

Smart motion rings incorporate sensors that enable very precise work for controlling devices with gestures. However, gesture control via cameras/laser scanners is also becoming more and more precise and gesture control is therefore becoming increasingly independent of additional sensors such as smart motion rings. 

Motion Capturing Clothes:Sensors integrated into the fabric fibers measure the movements of the wearer and generate data about the wearer. The objectives of this MMI group are, among other things, to improve the health of employees, which in turn should lead to longer retention of manpower and a reduction in absenteeism due to posture or accidents.

Magic Shoes:Microchips embedded in shoes measure and transmit data. This enables the user, for example, to control machines using gestures with his feet, but also to receive (warning) signals by vibrating the chip. 

Exo-skeletons:In addition to applications in the health and rehabilitation sectors, more and more companies are offering exo-skeletons to support workers during heavy lifting or handling work. Panasonic, for example, has developed an assist-suit that supports logistics staff in the many daily lifting processes of parcels and thus relieves the strain on the lower back in particular.

Enhanced efficiency in the Warehouse 4.0

Enhanced efficiency in the Warehouse 4.0
A tour of the warehouse of the future 
By Dr. Wolfgang Keplinger, ECCELL GmbH

Warehouses and distribution centres are becoming more efficient, automated, faster, more reliable and smarter. The development stages to Warehouse 4.0 are already clearly visible today: First, dynamic real-time localization will lead us to every box, every package and every product in the warehouse. Wearables will support us where we will continue to move to the goods ourselves in the future, making the Man Machine Interface (MMI) even more effective. At the same time, in many places the travel time can be taken out of the system as the largest part of the storage or picking time. Only tasks that automats and robots do not carry out as efficiently as we do will be performed by us in the future. For all other activities (cellular/swarm-based) shuttles, independently acting cobots/robots as well as AGVs (Automated Guided Vehicles) are used. These technologies will shape the warehouse of the future: 

Dynamic localization everywhere
Future warehouses are characterized by a significantly improved information situation, where which materials/articles are currently located - whether in the supply or already on the way to the customer. We will receive this information dynamically, i.e. in real time. The use of RFID and beacons, together with appropriate reading devices, will then allow us to use smart boxes, smart bins and smart racks so that any material can be located at any time. If the products themselves become smarter and smarter, we no longer even need the support of the "logistics RFIDs", because the readers in the warehouse then communicate directly with the smart products. By further developing the familiar localization technologies (such as DGPS or UWB), methods such as geofencing can be used within the warehouse in the future, which today are predominantly used outside.

Wearables to increase efficiency and ergonomics
Wearables enable a significant increase in efficiency and ergonomics by assisting in the execution of picking tasks, assembly and manufacturing activities, service and maintenance tasks or employee qualification. This enables work in the warehouse to be carried out faster, more flexibly and error-free. Since many wearables efficiently guide warehouse employees from the warehouse to the goods, they will above all optimize those warehouse processes in which the employee still moves to the goods.

Wearables include headsets, smart glasses, smart contact lenses, data clocks and forearm computers, RFID and data gloves, RFID wristbands and sensor wristbands, NFC and smart motion rings, motion capturing clothes, magic shoes and exo-skeletons. The group of recent developments in the field of wearables includes motion capturing clothes and exo-skeletons. In the Motion Capturing Clothes, sensors integrated into the fabric fibers measure the wearer's movements. The focus is on improving workers' health and reducing the number of lost working hours due to posture or accidents. Exo-skeletons, on the other hand, support warehouse workers during heavy lifting or handling work, as the smart electro-mechanical assist suites relieve the strain on the lower back, for example.

Automation through cellular/swarm-based shuttles, cobots and picking robots
Warehouse automation towards efficient goods-to-man systems has made significant progress in recent years with the development of shuttles. Small, flexible and independent shuttles take over the transport in the horizontal storage level within an HRL or AKL, while the vertical movement is carried out by automatic lifters. The advantage of the shuttle systems: they are scalable, they allow higher storage/retrieval capacities than an RBG (rack and shelving device) when fully extended (with one shuttle per level and aisle) and they are relatively insensitive if a shuttle fails. Since the moving masses are significantly lower than those of RBGs, the energy balance of a shuttle system is significantly better than that of an RBG, which is an important argument in the direction of green logistics. 

Automatically Moved Racks 
Amazon enables very efficient nest order picking with its fully automatic robots, which bring an entire shelf rack independently and self-controlled to the order picking station. The robots drive under the rack, lift it and bring it from the storage location to the picking location and back again. The advantages for Amazon: basic retention of the established, efficient warehouse processes with simultaneous elimination of travel time - the company achieves a 50% - 70% increase in efficiency. Further advantages are the increased storage density (articles stored per unit area), the scalability of the system, the insensitivity to robot failures and the low energy consumption. In addition to the robot manufacturer Kiva acquired from Amazon, Swisslog also offers this highly efficient system for e-commerce providers or mail order companies with its Carry Picker. 

Autostore
A radically new storage system was developed in Norway for KLTs: by stacking the KLTs directly on top of each other and operating the warehouse by automated robots driving on the top storage level, a storage system has been created that cannot be surpassed by the storage density today: the unused storage volume created by the racks, the space required for storage/retrieval and above all all all all the traffic areas are eliminated. The system is characterized by a very high storage/retrieval capacity, is scalable, insensitive to the failure of a robot and exceptionally energy-efficient. This is ensured by the low moving masses and modern recuperation in all movements. The only disadvantage of this system lies in the necessity to "dig out" containers stored further down before the actual order picking. Conversely, slow-movers automatically slide into the depths of the warehouse, while the frequently required fast movers remain in the upper levels all by themselves.

Cellular/Swarmbased Shuttles
More and more AGVs/FTS (Driverless Transport Systems) are taking over transport within the warehouse, from the warehouse to the shipping area or from the warehouse to production or back again. In recent years, the vehicles have become smaller, more reliable, more independent in their control, more cost-effective and safer. Another advantage is the increasingly greater independence from fixed route guidance means such as cables, lines or markings. The vehicles control themselves more and more reliably by means of laser scanning of the surroundings for orientation at permanently installed orientation marks in the building or by means of camera-based environment/contour recognition.

These AGVs with free route guidance differ only slightly from self-guided vehicles for logistics delivery over the last mile (e.g. 6-wheelers from Starship or from DHL's PostBot). These vehicles are self-controlling, can be additionally supported remotely via cameras or react more and more to gesture control by the operator. 

While today a handling or transfer process between the warehouse shuttles and the AGVs is still necessary for onward transport, in future the shuttles will also travel to the shelf area in front and bring the desired material directly to the picking location or into production. This means that one more "touch" from the intralogistics chain is no longer required and we are one step closer to a "no-/few-touch" warehouse. The first attempts at a swarm-based shuttle system that travels from the shelf directly to picking stations or production were made several years ago by the Fraunhofer Institute and Dematic.

Drones in the warehouse
Just as drones in the field have found their way from the first exuberant hype of delivering parcels over the last mile to the sensible and possible areas of deployment (e.g. in rural, less densely populated areas, or on islands or in the mountains), there will also be a development within our warehouses. Today drones are already being used there for inventory purposes. Or by flying off by means of an RFID reader the individual RFID transponders activated and thus a clear information about the location of individual articles created. However, dynamic localization will make these operations superfluous in the future. 

The future use of drones within a warehouse or production building for fast and direct express transport in exceptional cases is conceivable. A drone could then deliver the urgently needed last link in a logistics chain, for example to complete an extensive customer delivery or to start a final production. It is also conceivable that drones could be used in a clearly defined warehouse area, e.g. to carry out sorting tasks (from a conveyor belt in KLTs or on pallets).

Cobots and Pick Robots
Industrial robots are currently finding their way out of their cages to take on new tasks as sensitive robots that safely and reliably take care of people in their environment. With these Cobots (Collaborative Robots) humans can perform tasks together. The robots take over the "heavy" part of the tasks, which requires humans, the "informative" part, the overview or experience knowledge or quick recognition of different situations/requirements. Cobots then help, for example, with sorting or handling large, voluminous or heavy items in logistics.

In recent years, great progress has also been made in identifying and handling articles in a box or storage compartment using artificial intelligence. Today, these picking robots can already recognize and pick up different materials and objects. Amazon or Magazino have presented a first attempt/application of picking robots. If the performance rate (picking speed) of these picking robots reaches a competitive level, they will also be used across the board in warehouses and production facilities.

Hubs2Move
Due to ever shorter logistics cycles and ever more short-term shifts in demand, larger corporations and logistics service providers will have to make their warehouse hardware more standardized, scalable and adaptable in the future. Only in this way can warehouses be flexibly adapted to changing customer requirements. The last step could then be to make the warehouses more portable (from location A to location B) and more virtual. In this case, the current physical transport of products could be replaced by a "transport of information" via the Internet. The customer then creates the final products himself using additive manufacturing/3D printing at the place of need/consumption. Only the necessary raw materials will have to be physically transported in the distant future. 


Abbreviations:
AGV Automated guided vehicles = FTS - Driverless Transport Systems
AKL Automatic small parts warehouse
DGPS Differential Global Positioning System
HRL high bay warehouse
KLT small load carrier
MMI man-machine interface
NFC Nearfield Communication
RBG shelf-operating device
UWB Ultra Wide Broadband

One-touch - everything else would be a waste

One-touch - everything else would be a waste
How Digital Technologies Enable Low-Waste Processes in the Warehouse
By Dr. Wolfgang Keplinger, ECCELL GmbH

Under the buzzword Warehouse 4.0, a number of technologies such as Cobots, Smart Transport Robots or swarm-based shuttles are currently making their triumphal march in the warehouses. Many logistics managers hope that they will make warehouse processes even more automated, faster, more reliable and smarter than ever before. However, the underlying processes are often neglected. Because the use of digital tools per se usually does not deliver any real added value. Only when these technologies are used in such a way that they enable a lean, waste-free warehouse can significant efficiency gains and cost advantages be realized. 
Consistently implemented, this approach means that all warehouse activities that go beyond one-touch logistics are a waste. The goal is therefore an uninterrupted process flow from the incoming truck to the warehouse and from the warehouse back into the truck. Applied correctly, the technological possibilities of digital and smart warehouse management help to implement this one-touch logistics radically and consistently.

One movement - no interruption
Looking at today's logistics processes in the warehouse, they usually consist of several separate process steps. This multi-stage nature results from the fact that each process is interrupted again and again. One-touch logistics therefore tries to reduce these interruptions to a minimum through the consistent implementation of lean principles and the use of digital technologies. Instead of several individual steps, the process thus consists of a flowing movement - "one touch". This not only increases the speed, but also reduces the error rate.
In order to better understand how one-touch logistics differs from conventional logistics processes in the warehouse, it is worth comparing the two flow charts:

Conventional warehouse logistics:
  • Arrival truck & registration 
Conventional logistics processes begin in the infeed control where the truck that delivers the goods arrives at the warehouse and logs on at the gate. He has to register with his transport or delivery number and is assigned a loading ramp and a time window for unloading by the employee on site. This can already lead to standing and waiting times, for example if the delivery is unknown or if language problems occur during the instruction of the truck drivers.  
  • Drive-in and docking
After entering the warehouse, the truck heads for the loading ramp assigned to it in order to dock there. This can also result in downtimes if, for example, the unloading team has not yet completed the last unloading or the unloading area is still full of material.
  • Unloading and pallet staging
The pallets are then picked up from the truck with a forklift and parked in the goods receiving area. Possible interruptions occur when there is a break, e.g. during a shift change, or when too few employees are present due to illness.
  • Entry, identification & booking
The pallets are then identified and checked for completeness and physical integrity. The goods received are recorded, usually by booking the accompanying documents in the system on the screen, less frequently by scanning the pallets and comparing them with the data received electronically in advance (ASN = Advanced Shipping Notification). 
  • Further transport to the warehouse area
The pallets are then picked up by a forklift truck and brought to the storage area. Here, too, the rapid further processing of the goods depends on the availability of the responsible warehouse employees at the respective time. 
  • Storage / Booking
Arrived in the storage area, a narrow-aisle stacker, for example, takes over the storage on the shelf, where the goods are then finally posted. 

___________________________________________________________________________________

One-touch logistics:
  • Arrival truck & registration 
Since the arrival of the truck was announced in advance to the Transport Management System (TMS), its arrival is recorded by GPS and tracked by the system in real time. Geofencing automatically reports when the truck reaches the 50 or 20 km limit and as soon as it arrives in the vicinity of the distribution center. 
  • Drive-in and docking
There he is already expected and electronically assigned to a loading ramp to which he docks without interruption or waiting time. Since the details of the incoming delivery have been transmitted via an ASN to the ERP/Warehouse Management System of the warehouse, it is already known in advance what will be delivered and which materials are distributed on which pallets or packages. 
  • Unloading and pallet staging
Immediately after docking and automatic opening of the loading flap, autonomous forklifts/lift trucks enter the truck, lift a pallet and drive it from the truck into the warehouse area. 
  • Recording, identification & booking
Using an identification and localisation technology such as RFID or BLE/WLAN/UWB, the goods are electronically recognised by the system when they leave the truck, identified and compared with the data of the ASN and the order. Correctly delivered goods are immediately booked in the system as delivered. Incorrectly delivered goods are detected, rejected and either cleared by the Warehouse Management System with the supplier delivery system or returned to the truck. The transmission of the data and their correctness and completeness comparison takes place in the cloud. 
When crossing the warehouse boundary, a camera also visually checks the physical integrity of the goods. Sensors on the pallet have recorded data over the entire transport route and delivered it to the cloud. The connected warehouse management system detects possible anomalies during transport, such as jolts as an indication of physical damage or temperature overruns or underruns. 
  • Further transport to the warehouse area
If there were no abnormalities, the self-propelled stacker transports the goods to the warehouse and places them in the previously selected optimum storage compartment. Since every product in the warehouse is known at any time and any place via sensors on the pallet, the system knows by itself that the product has arrived in the storage compartment. 
  • Putaway / Booking
Postings or inventories are no longer necessary. The goods have been picked up, inspected, accepted and stored by the passing truck with a single pick-up by a self-propelled forklift truck.

The future: The smart warehouse
The advantages of one-touch logistics are obvious: As all waiting times for the resources involved are eliminated, the goods arrive faster and are available in the warehouse faster. Since all information, both about the transport and about the goods themselves, was transmitted electronically in advance, the use of the goods can be planned very early and very securely. Urgently required goods are no longer stored at all, but forwarded directly from goods receipt to production. Or it was already redirected during transport to another warehouse, where the goods are needed even more urgently. 
Expensive and time-consuming system changes, e.g. from one stacker to another, are eliminated from the system - thus reducing the costs of collection. The same applies to smart automation. There will be almost no more errors. All in all, the goods are available faster, more reliably, undamaged and at lower costs. Unnecessary storage is avoided; stock levels can decrease while service remains the same and the overall level of logistics service will increase.
Success factors for one-touch logistics
One-touch logistics thus represents the most streamlined and digital form of logistics currently available. It offers many advantages, but also requires some adjustments compared to the existing processes. The following success factors are decisive: 
  • Clear process orientation
First of all, one-touch logistics requires the responsible logistics team to think and act in processes. Each individual step in the process chain must be critically checked to see whether it is really necessary and what effects it has on the upstream and downstream process steps. This does not only depend on the correct conception of the processes, but also on the continuous optimization of the conceived steps.
  • Courage to use new technologies
In addition, one-touch logistics also requires the use of new technologies, both physical and informational. With regard to the physical flow of goods, the focus is on intelligent driverless transport systems (AGVs), which are used for unloading trucks and should be equipped with environment recognition and laser-based control. They will be controlled by agents or, in the future, even by swarms and will be equipped with four-wheel steering and extensive energy recuperation. 
The optimisation of the information flow, in turn, requires the use of a new transport management system, real-time truck tracking & tracing and automatic yard and dock management. The warehouse should have a cloud-based ASN and the ability to read the sensor data of the arriving load carriers and process them in real time.
  • Desire and will for cross-company supply chain integration
After all, one-touch logistics requires the active integration of suppliers into supply chain management. The previous approaches of standardizing interfaces and setting up clearly regulated forms of transmission using EDI and webEDI will not suffice. Sometimes the costs are too high for small suppliers, sometimes the number of suppliers is very high. 
Also by small procurement volumes the possibility sinks to move the suppliers to the integration of the supply chain. Here, the introduction of one-touch logistics requires the adoption of new approaches, for example by efficiently reading order and delivery confirmations, which were previously sent in the traditional way by paper or e-mail, into one's own ERP systems using intelligent scanners or cameras. Or the use of web platforms on which the supplier and customer can store the order data and mark the shipments with easily printable barcodes so that they can be optically read at goods receipt. Even more suitable are integrated RFID-based solutions for goods recognition and identification, which are set up together with the supplier.

Supply Chain Superpower

Supply Chain Superpower 
Five technology trends of tomorrow's logistics
By Dr. Wolfgang Keplinger, ECCELL GmbH

The Internet of Things as well as developments in electronics, mechatronics and information technology are changing the world of logistics enormously. The Internet no longer serves primarily as a source of knowledge and consumption, but also as a communication and connection platform for smart devices and cyber-physical systems (CPS). This creates new opportunities and perspectives for logistics. Companies should already keep an eye on five technologies today. 

RFID instead of barcodes
RFIDs are already among the known innovations in the automation of logistics, but their spread is not yet very far advanced. However, the advantages of RFIDs, their technological advancement and their cost reduction will contribute to a continuous replacement of barcode identification in the coming years and thus make the supply chain more decentralized, faster and safer with regard to a larger quantity of identified materials. 

Pick-by ... everything
The logistics achievements of augmented reality include pick-by-light and pick-by-voice, which are now almost standard repertoire in modern logistics centers. Important new developments in this area include Pick-by-Vision, which uses a smart glass to show employees the next picking location and the corresponding pick information. But also Pick-by-RFID, in which the employee records the goods to be picked without scanning and with both hands, and the corresponding goods booking is automatically made by the RFID reader integrated in the glove. However, the latest logistics trend in augmented reality is pick-by-motion, in which a camera correctly interprets the picker's gestures, which in turn enables fast and efficient work with both hands, because no devices are required.

Bionic Enhancements: feather-light loads
With the so-called Bionic Enhancements / Wearable Devices, mobile and controlled "outer skeletons" made of plastic, metal, sensors, nanotechnology and electronic controls support physically working people in lifting and manipulating very heavy objects. This allows longer and less tiring work. These new logistics helpers also include so-called cobots or collaborative robots. These robots perceive humans and are programmed not to touch or injure them. This will take the robots out of the production areas closed off to humans, enabling a new form of human-machine collaboration. 

Autonomous transport robots
First practical application tests show the possibilities but also the current limits of autonomous logistics, specifically for self-guided vehicles on land and Unmanned-Aerial Vehicles (UAVs) in the air. Although the widespread use of drones for parcel delivery in densely populated areas may still sound very much like a dream of the future, tests of drones to supply areas that are difficult to reach, such as lonely islands or remote mountain regions, are already delivering satisfactory results. Whether the legal hurdles for an area-wide use of drones will fall is difficult to assess at present. 
Intelligent and very fast processors, which also contain sensors for speeds, rotations, directional changes, acceleration and braking, already enable largely self-controlled and accident-free flying of the drones. Within logistics warehouses there are already concrete tests with self-guided logistics vehicles. These include self-guided forklift trucks, which find their way independently through a warehouse while avoiding mobile obstacles, and cellular shuttle systems, which master the same exercise even in swarms. 

Material supply for 3D printing
3D printing / additive manufacturing has a significant influence on tomorrow's logistics. Today, this is mainly used in the plastic and metal sectors to produce components that cannot be produced economically or at all with a metal-cutting technology. Or for the production of spare parts that are no longer produced in the required small quantities due to the age of the machinery and for which storage for decades is simply too expensive. At first glance, this technological trend seems threatening for logistics due to the associated de-materialization. But even 3D printers need a material supply, if with other materials and with a significantly lower complexity. Agile logistics companies will also adapt to this trend at an early stage, recognize new market opportunities and optimally cover new customer needs.


Black numbers thanks to green technology

Black numbers thanks to green technology
Perspectives for environmentally friendly logistics
By Dr. Wolfgang Keplinger, ECCELL GmbH

In recent years, many companies have regarded "green logistics" as the means of choice for minimizing risks in the supply chain and polishing up their brand image at the same time. But the greater the verbal commitment, the lower the actual implementation performance. At the moment, it is worthwhile to look into this topic again, as new technologies are opening up new perspectives for green logistics. The article describes these opportunities and concrete approaches for companies. 

If we look purely at the figures, in the case of our infrastructures or supply chains, we would have to speak of a currently "grey-green" logistics. The fact is that even though CO2 emissions in the EU-28 fell by -22% between 1990 and 2015, they rose significantly in the area of transport over the same period. It is also a fact, however, that many large, internationally positioned logistics companies in particular are seriously addressing their ecological footprint and have already achieved significant improvements - not only for the environment, of course, but also for their own balance sheet. Particularly in the areas of "Green Transportation" and "Green Warehousing" there are a number of serious developments in the direction of truly "green" logistics.

1. Green Transportation
With the continuous improvement of diesel technology as the world's most important drive technology for trucks, emissions per kilometre driven have fallen significantly in recent years - but a non-practical definition of statutory exhaust emission tests left gaps open for manufacturers to manipulate or skilfully interpret the law. In addition, the improvements achieved could not compensate for the effect of the constantly growing number of route optimization programs, which are used almost everywhere in the freight forwarding sector today. 
In addition, the withdrawal of the USA from the Paris Climate Agreement can strengthen a retrograde development in the consumption of fossil fuels in other nations as well. But only if the state governments take the environmental goals laid down in the agreement seriously and the legal framework for transport and logistics is significantly tightened can the next push towards truly green transport logistics be expected. On the positive side, however, the necessary technologies and solutions are already in place or will be in the near future. One of the most important hopes for green transport logistics at the moment is that the technologies and solutions will already be available or will be in place in the near future:

E-Transporter in urban space
The pioneer in the field of small trucks and vans in Germany is DHL with its fully electric StreetScooter. Developed in 2010 from a research initiative of RWTH Aachen University, since 2014 approx. 100 employees of the company now owned by DHL have been manufacturing this urban delivery vehicle. In 2016 the 1,000th vehicle was produced, now 10,000 are to leave the production line every year - among other things with the aim of electrifying the total stock of approx. 70,000 DHL delivery vehicles. In addition, there are already external interested parties for the StreetScooter such as city councils, dealers or craftsmen.
With the Fuso Canter E-Cell, Daimler has had a light, fully electric truck in everyday use since 2014, which is to go into small series production in 2017 as the Fuso eCanter. Mercedes-Benz also unveiled the first all-electric truck for heavy urban distribution traffic up to 26 tons and with a range of up to 200 km. This truck will go into everyday test operation in 2017 and production could start in 2019/2020. MAN also announced that it would test the MAN eTruck concept vehicle for medium and heavy urban distribution traffic in everyday use at the end of 2017.
The advantages of these electric trucks are obvious: they meet the increasingly stringent urban requirements for zero-emission driving and enable night deliveries in urban areas. With the increasing capacity of the new battery generations and their continuous decline in manufacturing costs, the vehicles could soon reach a level of costs comparable to today's diesel technology. Of course, in the best case scenario, their drive current should come from emission-free wind power or solar energy / photovoltaics.

Platooning: sensor-based control of truck columns
Even if the technological leap to pure battery operation is not yet possible in long-distance traffic and in the heavy truck segment from 26 to 40 tons, there are still interesting technological innovations here, especially in the electronic, WLAN sensor-based control of truck columns. In a study conducted by the Massachusetts Institute of Technology (MIT), trucks driving closely behind each other consumed up to 20 percent less diesel due to their lower air resistance and only about half the motorway surface area than in normal operation. The controller's short response time allows necessary braking operations to be triggered in just 0.1 seconds, enabling extremely short vehicle distances of only 10 - 15 m (less than the length of a truck with trailer). Volvo and Daimler carried out their first platooning tests in 2016 and 2017. DB Schenker and MAN have just announced a major practical platooning test in networked truck convoy operations for this year.

Big/Smart Data Analytics improve freight space utilisation
One of the biggest transport problems on the way to reduced CO2 emissions is the unused but moving freight capacity. Of course, with constant demands for even faster delivery times, it is not possible to optimize and improve the volume of freight space used at the same time. But above all Big Data Analytics can help to make it possible to plan requirements that have not yet been realized but can be anticipated earlier and thus to combine them with ongoing transports and to bring the existing range of cargo space together with the demand at shorter notice. 

2. Green warehousing
What do warehouse managers today understand by "green logistics" in their warehouses? The reduction of water or energy consumption, e.g. by (automatically) switching off lighting in unused storage areas, is a popular term. So far, the effort required to reduce the use of resources has been just as low as the benefit gained. New technologies also offer numerous opportunities for improvement here, for example: 
- Water treatment plants to clean the water for the cleaning of circulating tanks
- New low-consumption electric forklifts with energy recuperation during braking
- Reduction of moving masses in automatic warehouses and use of low-consumption drives
- Sensor-based, automatic control of ceiling lighting depending on the current use of warehouse aisles/areas
- Energy-saving, long-life LED luminaires
- More effective heating and ventilation systems in combination with the reduction of heat/cold losses (high-speed doors, thermal insulation) 
- Separation of packaging material, pressing and pure preparation/sale to specialized raw material companies
- Standardised packaging systems in which incoming transport packaging is reused on the own dispatch side
- Solar panels/photovoltaic systems on the roof of the warehouse building 

Best-Practice: Photovoltaic system on the warehouse roof
More and more logistics centers are using photovoltaic systems, such as the Müller-Drogeriemärkte logistics center in Ulm or the Dutch ThyssenKrupp logistics center in Veghel. These are considered to be standard values: For every seven to eight square meters of module surface area, a peak/nominal output of one kWp can be generated, which provides an average German output of around 900 kWh per year. As a rule, self-generated photovoltaic electricity is cheaper for own use than purchased electricity. The costs for self-generated electricity are between eight and 12 ct/kWh. Logistics companies thus achieve a return on equity of seven to eight percent. An alternative for logistics companies is to lease their own roof space to a service provider who installs and operates the photovoltaic system there with his own capital. This can provide additional, fixed rental income over a period of 15 to 20 years.

The more of the options described above a company already uses in the transport and storage sector, the more likely it is to speak of "green logistics". Of course, it would also be interesting to quantify the cost advantages achieved in this way. However, given the variety of possible measures and the different starting positions, this is not seriously possible. Practical examples show, however, that "green" oriented cost reductions in delivery and transport costs as well as in one's own operating costs in the order of two to five percent each are realistic. In the case of pure energy costs, the figure is even between five and ten percent, and even higher if the starting level is low.
However, the next step in the economy towards truly green logistics is not being taken by new technologies alone - increased political pressure and a tighter legal framework are equally necessary. As long as mineral water is transported from northern Europe to southern Europe for reasons of taste or marketing, and at the same time mineral water from southern Europe to northern Europe, our transports are too cheap. Green logistics can only live up to its name if every waste of resources is removed from our logistics chains. 

Giant traffic jams through online shopping

Giant traffic jams through online shopping
Sustainable logistics solutions for Europe's conurbations
By Dr. Wolfgang Keplinger, ECCELL GmbH

For city dwellers, online shopping is a popular way to escape the hustle and bustle and traffic chaos on the streets. Unfortunately, in the future the goods will not move to the customer by beaming, but via the known traffic routes. Studies by the Bundesverband Paket- & Expresslogistik (Federal Association for Parcel & Express Logistics) assume that the volume of parcels delivered in Germany today will increase by a third from approx. 3 billion per year today to approx. 4 billion by 2021. Other studies predict that in 2030 about 40 percent of traffic in European conurbations will be caused solely by logistics. Our consumer behaviour is therefore making a major contribution to this pre-programmed mega jam in the conurbations, because in e-commerce we expect ever faster deliveries in ever smaller quantities. 
This development is gaining additional momentum, especially in Europe's metropolises, as a result of demographic change: the urban population is growing numerically and ageing rapidly. This is creating new logistics and delivery services: the first generation of retirees with an Internet affinity is already actively taking advantage of online shopping. The associated free domicile deliveries mean that the carrying of heavy or large-volume goods (e.g. drinks or toilet paper) for the elderly is no longer necessary. With such services, some providers also create additional customer loyalty through automatic subscription orders. Still others want to simplify these goods orders by means of order buttons at the place of consumption (e.g. Amazon Dash), special smartphone apps or simply by voice via a chatbot and thus make them the norm.
This development requires new approaches and solutions for a functioning megalopolis logistics system - otherwise traffic collapse in a mega jam threatens. Promising prospects for relieving the burden on conventional transport routes are currently being offered: 

1. New business models for the first/last mile 
How can competing logistics service providers cooperate better in existing supply chains? These approaches include the operation of collaborative warehouses, distribution centers, city hubs and transports. Instead of "everyone competes with everyone everywhere", a "competition for regional sovereignty" will (have to) emerge so that within these sovereign regions a single logistics service provider serves all customers with a smaller number of journeys. 

2. Transport compaction using new, decentralised pick-up/drop-off points (PUDOs) 
These reduce traffic and help to avoid multiple journeys for the first/last mile. PUDOs are an alternative to the collaborative city hubs described above. These PUDOs are currently also called "white shops", where consumers can pick up their parcels, not just from one service provider, but from all parcel delivery companies. This bundling on the last mile would also help to reduce the threat of traffic collapse. The same effect would be achieved by using a bicycle courier on the last mile of these PUDOs.

3. Better use of existing systems and traffic,such as existing metro networks for night-time cargo transport. Crowd-based on-demand delivery models ensure that passenger cars are better loaded with people or additional freight. A good example is DHL's MyWays pilot project in Stockholm. 

4. Use of autonomous transport modes such as self-guided vehicles and unmanned aerial vehicles
In London, for example, the company "just eat" launched a delivery service for fast food restaurants with a self-propelled, six-wheeled transport robot in December 2016. A delivery service would also be conceivable if a vehicle of a parcel service provider were to drive into a residential street - and then swarm out five to ten self-propelled robots or drones from this vehicle in order to efficiently take over the delivery of the last mile.
 
5. Tube Logistics Systems
In Switzerland, for example, the company Cargo Sous Terrain is giving initial conceptual consideration to the construction of cargo underground railways to supply and dispose of city centres. Autonomously moving wagons, each loaded with one to two pallets, control underground stations under logistics hubs, business centres or PUDOs. The goods are then automatically moved by a lift from the underground station to the surface, where the pallet is automatically transferred to another autonomous means of transport. The Hyperloops in the USA also belong to these tube systems, whereby in this case people or goods are to be transported quickly between city centres in vacuum tubes suspended on magnets. 

However, the opportunities offered by new technologies will have to keep pace with a further increase in consumer demand for even faster deliveries. This underlines the urgent need for digital innovations in logistics 4.0. They lay the foundation for supply chain management that meets the demographic and ecological requirements of a megalopolis. Otherwise, we can spend many more years hoping to be saved by an air taxi in a permanent traffic jam. 


The chatbot as delivery hero

The chatbot as delivery hero
With bimodal supply chains for new customer value orientation
By Dr. Wolfgang Keplinger, ECCELL GmbH

The market leaders in the logistics sector do not only use the opportunities offered by technological innovations for the effective management of their supply chains. They also consistently pursue the strategy of aligning their supply chains completely with customers and their needs. The article describes the role bimodal supply chains play in this. 
No matter whether you urgently need the latest smartphone model, a specific DVD or a portion of fresh apples - "urgent" means with today's e-commerce possibilities that delivery and delivery within a few hours are almost a matter of course. A few large market leaders are now ensuring that the "logistical clockwork" in the background runs smoothly and cleanly. Such as DHL, for example, which made the transition from a bureaucratic state-owned enterprise to a competitive technology leader. Or, of course, Amazon and Zalando - one company is on its way to becoming the world's dominant superstore, the other is developing from a smart shoe provider to a world champion in reverse logistics. All three companies are united by the success strategy of consistently focusing on the customer and his expectations in all considerations and changes. An approach that very quickly sent old business models such as traditional mail order into a struggle for survival.
The maxim of this intensively lived customer proximity is: listen to your customer, understand his needs and align the logistics chain exactly with them. "Customer proximity" is also created by real-time data on purchasing behaviour and product usage. The product performance provided is no longer compared with the performance specification, but with the actual expectations of the customer. All top logistic performers want to make it as easy as possible for their customers: Delivery on the same day develops into delivery within two hours, instead of at the push of a button, the customer now orders by voice control of a chatbot. And if necessary, delivery to the front door is replaced by an overnight delivery into the trunk of the localizable car or to an individual delivery point that can be changed shortly beforehand.

Growth thanks to bimodal supply chains
This intensive customer and value orientation in the supply chain has led to a serious paradigm shift in the value creation of all leading logistics companies. According to this, not only the customer and the value added generated for him are the focus of all considerations - this new need orientation is also regarded as a central differentiation factor in the market and competition. "Functional silos" from sales, development and operations are now a thing of the past, and logistics leaders have replaced them with integrated management of demand, replenishment and production. 
It is precisely this combination of integrated demand, replenishment and production management plus intensive customer and value orientation that forms the basis for establishing bimodal supply chains. Only with these can suppliers of complex technological products such as smart phones or tablet PCs, for example, manage to bring new technological solutions to market every year with high-frequency innovation activities. Bimodal supply chains thus make it possible to achieve an excellent cost position within a supply chain. At the same time, they support the desired growth through the rapid conquest of new technologies or new markets. This simultaneous mastery of two different capabilities - continuous performance improvement and cost reduction on the one hand, and innovation and growth on the other - is what we call bimodal supply chain management.

Innovation excellence as a new supply chain requirement
The new component of this bimodal supply chain strategy is the rapid development and adaptation of innovations. Until now, logistics has been known to primarily improve service and reduce costs. However, the new top performers convince through both operational excellence and innovation excellence. Companies can therefore not only learn from the industry's top performers how to establish optimal customer relationships using bimodal supply chains. They should also be guided by the best practice methods of the market leaders in order to 
  • to establish new suppliers within a very short time;
  • to arrive at new innovations with existing suppliers (co-innovation);
  • to design new product generations together with the development department in the shortest possible time and to make them deliverable;
  • to bring new talents on board with HR and to organize cross-functional cooperation within the company;
  • to develop new software solutions with IT; 
  • to quickly integrate new acquisitions together with the M&A department. 

This innovation perspective should not be an annoying compulsory task, it should be deeply anchored in the company's DNA. In case of doubt, the customers, the competitors or the technological possibilities are always guaranteed to be one step ahead of their own planning. For example, if you continue to think about the possibilities of Smart Analytics, it will soon be possible to use information available in the personal Smart Digital Assistant in every mobile phone (such as appointments in the appointment calendar, stored preferences or actual whereabouts) to automatically control the expected shipment to where we are at the earliest possible time of arrival of the shipment. The "logistical clockwork" is clearly ticking digitally - and ever faster in terms of customer and value orientation. 

Logistics 4.0: Guide to digital supply chains

Logistics 4.0: Guide to digital supply chains
From Dr. Wolfgang Keplinger, ECCELL GmbH

The Trucker saying "As long as you can not send apples by email, we have to share the road!" Is also true at the beginning of the 21st century. Still. But this "wisdom" loses its validity. Of course, the flow of information and real goods will continue to be the focus of logistics. However, several drivers are ensuring a rapid transformation to "Logistics 4.0": first, a significantly changed customer behavior; second, new economic rules and, third, new technological opportunities (see chart). The knowledge and skills required to actively shape this change are shown by three megatrends in Logistics 4.0.

Graphic: Change driver of logistics 4.0 ©Dr. Wolfgang Keplinger

1. Always "on" - the new digital consumer behaviour
A new generation of Digital Natives and Smarter (Grey) users is operating continuously on the Internet, sometimes even simultaneously on multiple channels. This generation takes the permanent handling of Smart Devices for granted - and the associated possibilities of continuous localization as well as the short-term generation and redirection of demand. This is accompanied by a need for more and more product and service individualization. For logistics this means that requirements are generated more and more later and spontaneously, goods are transported via completely new shareconomy channels ("there is still free space in my car") and delivery addresses can change during delivery.

2. Logistical superlatives not an exception, but a norm
This consumer behaviour has already produced new or changed logistics service providers: DHL mastered the transition from a state-owned enterprise to a competitive technology leader, Amazon puts the customer at the centre of all considerations and created a new logistics standard on this basis. And Zalando not only proves to be a smart shoe provider, but also a world champion in reverse logistics. What a few years ago was still considered a "logistical superlative" is now apparently logistical normality. 

Logistics deliveries and logistics services are therefore …
  • increasingly short term initiated, leading to an increasing volatility of demand  
  • faster and faster delivered - after initial tests for two-hour deliveries, the half-hourly delivery with drones is comingas next target into the realm of feasibility
  • more and more transparent, since real-time tracking and tracing is standard
  • cheaper, more convenient, more spontaneous and more error-free - wherebyerror tolerance and loyalty of the customers constantlydecrease

3. New logistics business models thanks to collaborative supply chains 
Established logistics service providers or manufacturing companies will collaboratively use warehouses, distribution centres, city hubs, transports and also reversed logistics chains in logistics 4.0. This not only creates local, but also global logistics super networks to enable faster and more efficient deliveries. More and more specialized and dedicated logistics service providers and start-ups are being integrated into these super networks. Moreover, thanks to IoT and cloud computing, non-material, i.e. web-based Logistics-as-a-Service, Logistics on demand and Logistics Marketplaces are being created. The following trends are particularly important: 

On-demand delivery, i.e. delivery exactly as required by the customer, regardless of the business hours of established logistics companies and regardless of the short-term nature of demand. This creates new competitive models for the first and last mile. Examples are My Ways, MyTaxi, mitpackgelegenheit or UberRush.

Multi-channel models as new prerequisites for efficient logistics management. More and more companies serve several distribution channels at the same time. Logistics 4.0" must therefore serve all channels according to their specific requirements and at the same time be efficient. This only works with the help of newly developed standard processes, which are used modularly according to requirements and sales channels. 

Low cost sensors integrated via the IoT drastically increase the accessible data volume for all logistics companies. This allows individual items to be located in real time or actual customer behavior to be digitally mapped. On the one hand, supply chains are becoming more and more difficult to control due to growing data volumes. On the other hand, Big Data Analytics' algorithms are becoming smarter and smarter, and thus part of the solution for mastering this complexity.

How to manage the last mile smartly

Current and expected changes in parcel delivery in our cities
By Dr. Wolfgang Keplinger, ECCELL GmbH

The current delivery concept for the last mile is no longer suitable for our inner cities: many delivery vehicles of parcel and express service providers standing in second lanes with their hazard lights on are blocked by dense traffic and themselves cause further bottlenecks and obstacles for other road users. Looking at the forecast growth rates in online trade or the trend towards ever shorter delivery times, it is clear that this problem will not solve itself. Our current thoughts about the necessary reduction of the CO2 footprint are completely ignored, because the current solutions for the last mile are a long way from real green logistics. So the question arises whether there are approaches that will change this situation for the better or suggest a solution on the horizon.
How could we now improve delivery on the last mile? 
To answer this question, we would like to deal with three fundamentally different solution directions. The delivery concept on the last mile would improve if we
1. reduce the volume of parcel and express shipments to be transported
2. bundle the volume to be delivered so that fewer individual deliveries are necessary
3. use new technologies and delivery modes
And of course we would also be able to achieve a significant improvement in last mile delivery by cleverly combining these three basic solution directions.

Reduce the volume of parcel and express shipments to be transported
Initially, all market assessments and forecasts on online trade and e-commerce speak against this approach to improvement. All experts assume that consumers will increasingly tend towards online-based sales and distribution channels. At least for the next decade. The convenience of shopping from home and having the goods delivered to your door at short notice seems to be gaining ground, especially as the previous bottlenecks are continually being reduced by limited access, IT aversion and lack of online skills.
Nevertheless, there are approaches to achieve improvements on the volume side as well. Firstly, there is the possibility of bundling. This bundling of orders and shipments could be achieved by:
  • Increasing the volume offered with fewer providers (Amazon effect): the larger the range of products offered with a few large providers, the more likely it is that customers will order previous individual orders from this provider together in the course of just one shipment / delivery. Important factors for intensifying this effect are continuous growth in the product range of the already large providers, maintaining the high level of service and, of course, intense competition. This means that this effect will only occur if there are several, but not too many, competing large providers in the future (i.e. in addition to Amazon also ebay, Otto, Zalando, ... and of course Alibaba).
  • Influencing customer behaviour to choose short-cycle express deliveries (e.g. "within 2 hours" or "same-day") very consciously and only selectively in case of really urgent needs. This influence could also be achieved by the cities by increasing delivery costs (e.g. by means of a city toll) or by legal framework conditions (e.g. by increasing energy costs/taxes for transport services). Or by means of city taxes that decrease degressively over the delivery time.
Bundle the volume to be delivered so that fewer individual deliveries are necessary
Volume bundling could be achieved through the following approaches:

Volume bundling on the part of the suppliers/online dealers
This would be possible if customers gave the suppliers/online merchants more time to combine different (individual) orders into a total shipment per customer. This means that the customers would have to be willing to extend their delivery time expectations by 1-2 days. At the same time, the providers/online merchants would have to adapt their IT systems to the extent that for each order it is checked whether other orders that can be bundled are available. And they would have to change current optimizations of pick-/pack and shipping processes so that fewer individually packed shipments and more combined shipments are sent out of the fulfillment centers

Volume bundling within each individual delivery service provider
Bundling would also be possible here if customers also granted the delivery service provider an extended delivery time. A prerequisite here, as with the providers, would of course be an adjustment of the internal optimization programs: the IT systems would have to be able to recognize identical shipments to a specific customer within a certain period of time and then bundle them. Or, using AI-based systems, they would also have to be able to forecast that it is highly probable that additional parcels could be expected from certain customers, which would then be delivered to the customer in just one delivery trip.

Volume bundling between different delivery service providers
One of the most efficient ways of reducing last mile traffic would be to achieve volume bundling between different delivery service providers. This means that a certain region within a city, a certain district is served exclusively by only one delivery service provider, which would increase vehicle utilization, reduce the number of transports and facilitate the establishment of new delivery concepts. This "monopolization" of regional sovereignty over the last mile could be achieved by tendering regions / city districts. Or for those who prefer less regulatory intervention by politics, by "market-regulating" control through the introduction of a correspondingly high city toll. The costs of the last mile could then be used to consciously bring about or control "economically sensible" cooperation between delivery service providers from above. Some cities are currently considering whether they should take up and promote the idea of city consolidation centres that span multiple service providers, as in the 1970s/80s of the last century.

Use new technologies and delivery modes
In this area there are the largest number of solutions that are already possible today or foreseeable in the future. We can distinguish the following approaches
  • Fewer delivery trips due to collection of the goods or reduction of repeat deliveries
  • Less infeed travel due to smarter infeed control
  • Deliveries in different modes of transport to relieve the most congested road traffic
Fewer delivery trips due to collection of the goods or reduction of repeat deliveries
There are already delivery options available today that reverse the principle of delivery: Pickup instead of delivery. The basic idea behind this is that the end customer picks up the goods from delivery points and takes them himself on the last mile on a journey that would have taken place anyway. The delivery trip by the parcel service provider is no longer necessary. This principle applies to PUDOs (Pick-up / drop-off centres), i.e. transfer points where the parcel is picked up from a service shop (stationery shop, tobacco shop, tailor's shop, petrol station, ...) or a return is posted there. However, the pick-up principle is also made possible by controlling parcel and transfer stations where the parcel is deposited and the customer knows by means of an electronically transmitted message that the parcel is ready for pick-up and can also open his parcel compartment by means of a code sent. Also more specifically defined delivery points, where the deliverer can drop off or deposit a parcel even if the destination addressee is not at home, reduce delivery journeys on the last mile by eliminating repeat delivery journeys. At these points, the carrier can simply drop off the parcel in the stairwell or at a neighbor's house, or leave it in a box that can only be opened by the carrier and the customer. The trunk of the target customer's car is also part of this limited-access deposit area - initial trials are underway at Audi and Volvo. 

Less infeed travel due to smarter infeed control
Smarter, real-time-based information about the current delivery status in combination with a corresponding real-time-based control system could also reduce delivery journeys on the last mile. If the customer sees that the parcel arrives at home at a time when he himself is not there, he could redirect the parcel to a PUDO center or delivery station, or the next day at his workplace. Using a smart controller, individual delivery windows could also be arranged at times when the customer is safely at home (e.g. after 7 p.m.), or the customer could have his smart mobile phone communicate the current location coordinates so that a delivery driver only approaches the home address when the customer is actually at home.

Deliveries in different modes of transport to relieve the most congested road traffic
If the road is blocked, then the delivery service must swerve off the road on the last mile. This could happen over the air, over the ground, or over the cycle path or sidewalk.

Evasive action in the air: we are at the delivery drone made famous by Amazon, UPS, Fedex and DHL. First tests with different drone concepts have been run and we know that the drone is a suitable means of delivery in remote and sparsely populated areas such as the Alps or on smaller islands. In contrast, the drone is less suitable for densely populated urban areas. This is where future concepts could be effective, in which the drone is really only used on the very last mile. This means that the delivery driver drives into an urban area with his electrically operated delivery truck, then 5 - 10 drones swarm out of this delivery truck and really only make the final delivery to the customer. The use of drones over densely populated areas will also depend on whether questions of security and disturbance of the inhabitants living there can be satisfactorily regulated. 

Diversion into the underground: There are already lining concepts that diverge into the underground. Simple concepts use underground railway lines to transport materials in the city at night. More recent concepts such as the Swiss Cargo Sous Terrain are based on their own underground supply lines for self-propelled pallet and package transport. Here the acceptance is greater, but also the costs of implementation are significantly higher. Furthermore, although the current concepts envisage the development of the cities from regional logistics centres, they do not yet provide for underground fine distribution over the last mile. 

Switching to cycle paths or sidewalks: The delivery service providers drive into a city district with electrically powered vehicles or with containers, these vehicles or containers then serve as a central micro/city hub or transshipment point from which the last mile is bridged with many individual trips using delivery bicycles (with or without container superstructures, with or without electric drive support), small electric vehicles or on foot using hand trucks or a smart parcel cart that autonomously follows the delivery person. To this end, various pilot tests are being conducted by different delivery companies in different German cities. The advantage of these City-Hub solutions is not only that the last mile is once again managed smoothly instead of standing, but also that most of these alternatives represent a truly green solution for the last mile thanks to the underlying electric or "per pedes" drives.

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