Smart logistics is attracting attention in the logistics industry, and its introduction is progressing. But what exactly is smart logistics? Also, what kind of effects can be achieved by making logistics smarter? This article introduces the meaning of smart logistics, the background to its popularity, the technologies it is applied to, and representative examples of smart logistics.
What is smart logistics?
The word "smart" means "clever and sophisticated." In modern society, it is also used to refer to high performance. It is also used in the field of logistics as the expression "smart logistics." Smart logistics is a system that aims to improve the efficiency of logistics by introducing IT for the first time or combining it with existing systems.
There are various challenges in logistics, and traditional methods are not keeping up with task processing. In fact, major transportation companies have announced delays in operations due to labor shortages and have decided to raise freight rates. From this current situation, it is clear that change is needed in the logistics industry.
That is why the use of IT is attracting attention. Smart logistics was born as a new form of logistics that uses IT to address various logistics challenges and work to improve efficiency.
Why smart logistics is attracting attention
In recent years, several issues have come to light in the logistics industry, and measures are needed. Let's take a look at what the specific issues are.
Labor shortage and working conditions
The labor shortage in the logistics industry, which is becoming more serious, is not only a matter of absolute numbers, such as the declining birthrate and the shrinking labor force, but also stems from the working environment. For example, in the transportation sector, long working hours and excessive work are seen as problems, leading to a labor shortage.
The logistics industry is working to address these issues, but no fundamental solution has been found. While efforts are being made to improve the working environment, make working styles more flexible, and create comfortable workplaces, a different approach is also needed.
Expansion of EC and increase in small parcel deliveries
Due to the rapid expansion of the EC market using the Internet and the diversification of consumer needs, small-lot deliveries are increasing. Therefore, the logistics industry will be required to build an efficient logistics system that can handle small-lot deliveries in the future. Delivery companies will be required to meet more detailed customer needs, such as detailed instructions on how to hand over the package and time designation. They will also need to be able to smoothly process package receipts and returns according to customer requests.
The expansion of EC and the increase in small-lot deliveries are causing changes in all processes related to logistics. In order to respond to these changes, advanced information technology, human resource development, and the construction of an efficient and smooth logistics system are required.
Responding to shorter delivery times
Delivery times for goods are becoming shorter, with some services even delivering on the same day. As it has become common for consumers to shop online, there is a demand for many goods to be delivered in a short time. Shorter delivery times require logistics companies to research and realize even faster delivery. To achieve this, a wide range of improvement measures are essential, such as optimizing delivery routes and improving delivery systems. Shorter delivery times are also likely to reduce the time spent on tasks such as collecting and packing packages and preparing for delivery. This will require logistics companies to work more efficiently.
Many tasks are inefficient due to manual work
In the logistics industry, there are still many inefficient manual processes. Small and medium-sized businesses, in particular, still have many outdated processes, such as manual inventory management and paper-based shipping procedures that require multiple documents. These types of processes are prone to human error, which can lead to incorrect ordering and delivery delays, lower customer satisfaction and increased costs.
Benefits of introducing smart logistics
In order to solve the problems facing the logistics industry as we have seen so far, it is necessary to improve efficiency by utilizing IT. Smart logistics is one such approach. Let's take a look at the specific features of smart logistics that are effective in solving these problems.
Labor saving, manpower saving, improved work-life balance
Labor-saving is the process of streamlining work by promoting automation and mechanization, and saving human labor and time. If labor-saving measures can be implemented to reduce the amount of work required by one worker, labor-saving measures will be achieved. By introducing smart logistics, work efficiency will improve and labor-saving and labor-saving will be realized, which will create more room for human work and help alleviate the labor shortage. In addition, by having machines perform tasks that have previously been performed by humans, humans will be able to spend more time on more creative tasks.
This will increase motivation for work and increase the possibility of further innovation. The effects of labor-saving and labor-saving measures do not only work to alleviate labor shortages. There will be more room for personnel placement and each person's work style, which will improve employees' work-life balance. If the working environment improves due to improved work-life balance, it will also lead to a decrease in turnover rates, and we can expect to further alleviate the labor shortage.
Standardization and error prevention
Smart logistics automates tasks, creating greater consistency in work processes. Tasks performed by machines and software are highly reproducible and follow the same set procedures. This eliminates the variability that occurs when humans perform tasks due to changes in physical condition and concentration, making it possible to standardize work. At the same time that work is standardized, automation can prevent human error. This improves the quality of work, and if it becomes possible to lower the price of products and services while maintaining quality, market competitiveness will also improve.
Improving productivity and ensuring profits
Smart logistics makes it possible to optimize delivery routes, streamline inventory management, and automate tasks. This leads to improved productivity as it can significantly reduce losses caused by human error and manual labor. The introduction of smart logistics is also expected to improve customer service. By making it possible to check delivery status in real time and change delivery times, it is possible to provide services that meet customer needs, and it is also expected to increase business opportunities.
Technologies used in smart logistics
The following technologies are applied in smart logistics:
IoT
IoT is a technology that connects different types of devices to the Internet and allows them to communicate with each other to collect, analyze, and share data. It is an essential technology for smartifying all industries, including smart logistics. An example of using IoT in smart logistics is installing sensors at various locations in the logistics field to grasp the location and status of packages in real time. It is possible to visualize the location and status of products and materials and receive information in real time. It also makes it easier to manage inventory and delivery, and improves the speed of operations, such as planning accurate delivery schedules and responding quickly to problems and changes in conditions.
AI
AI (Artificial Intelligence) is a system that uses technologies such as machine learning, deep learning, natural language processing, and image recognition. Traditionally, only humans could make judgments and distinguish between different things. With the practical application of AI, it is now possible for machines to perform tasks such as judgment and distinction on behalf of humans.
AI can also find the optimal method from a huge amount of data, and depending on how it is used, it can achieve work efficiency that exceeds that of humans.
Smart logistics aims to realize an efficient and cost-effective logistics system by optimizing the logistics process. By utilizing AI here, the automation of logistics processes can be promoted through data analysis and predictive capabilities. And by analyzing real-time data using AI, it is possible to optimize the delivery routes of products and supplies, inventory management, delivery schedules, and more.
5G
5G is the fifth generation mobile communication system. It has features such as faster communication speeds and lower latency than 4G, allowing for high-speed and stable communication. In smart logistics applications, it is used not only to send and receive information, but also to control equipment such as AGVs.
For more information on AGVs, please see here.
What is an AGV (Automated Guided Vehicle)? Types, Benefits of Introducing It, Technologies that Can Be Combined, etc. | Stratus Blog
High-speed, stable communications are also important for safely operating equipment in places without human presence. 5G is also expected to be an essential technology for self-driving trucks and drone delivery.
Edge Computing
Edge computing is a technology that improves processing efficiency by processing data on computers located at the edge of a network, rather than centralizing processing in the cloud. Rather than sending everything to the cloud, high-speed processing is made possible by dividing the data to be processed at the edge and the data to be sent to the cloud according to the situation.
Logistics systems that use edge computing improve speed and accuracy by processing information in real time. This makes it possible to manage inventory, optimize delivery routes, and monitor environmental information such as temperature and humidity appropriate for each type of luggage.
For more information about edge computing, please see here:
Why is edge computing attracting attention? What are the differences compared to cloud and on-premise computing? | Stratus Blog
A representative example of smart logistics
Smart logistics is actually being implemented in many logistics situations.
Picking is moving towards the age of robots
Traditionally, picking work in warehouses was mainly done by a person pushing a cart around the shelves to collect the necessary products. One method that has attracted attention is the robot-based picking work introduced in the warehouses of major online shopping site Amazon, which has significantly changed this method. Unlike traditional methods, the robot carries the shelves and brings them to where people are, allowing workers to work with almost no movement. Since multiple robots take turns bringing the shelves, the time previously spent on movement can be reduced and work efficiency is greatly improved. IoT, 5G, and edge computing technologies are applied to the robots that are active in these warehouses.
Inventory management using RFID
RFID is a technology that uses radio waves to identify items. RFID tags that can record information are attached to items, and the information can be read using an RFID reader. RFID readers can be attached not only to handheld devices, but also to conveyors and forklifts, making it possible to automate the identification of luggage. Another major feature of RFID is that it can read and identify the information of multiple packages at once. This makes it possible to speed up and improve the accuracy of inventory management and incoming and outgoing management. RFID is widely used in the logistics field, and also contributes to quality assurance through logistics traceability.
Accurate warehouse management with WMS
A WMS (warehouse management system) is a system that can efficiently manage various tasks in a warehouse, such as receiving and sending goods, checking inventory, and assisting with inventory work. In recent years, warehouse operations require a huge amount of information processing due to the multifunctionality of warehouses, the diversification of products handled, and faster delivery. This volume of information is far beyond the capacity of traditional manual or paper-based management, and WMS has become indispensable for logistics operations.
However, to operate a WMS, data is required to manage it. IoT is used to acquire data, and 5G is used to send and receive it. In addition, some WMS combine edge computing to process data to improve the real-time nature of information and use AI to optimize management.
In this way, by linking multiple technologies, logistics systems can process more accurately and quickly, supporting the complex logistics operations that require modern processing.
Will the introduction of smart logistics be the key to solving these issues?
The logistics industry faces various challenges such as labor shortages and rising costs, but efforts are underway to find the key to solving these problems through the application of IT. Logistics that utilizes IT, in other words, smart logistics, will likely become the shape of logistics in the future. With regard to logistics as well, it is thought that the use of new digital technologies such as IoT, AI, and edge computing will become increasingly important.
