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It is important to know that nowadays, consumers are demanding more and more personalized services that can adapt to their schedules and lifestyles. If we evaluate last year´s world situation, where a pandemic unleashed new ways to reinvent ourselves, we can clearly see how consumer behavior is constantly changing, requiring real time data to keep up with the requirements. A few years ago, Logistic Intelligence was implemented to help companies with their clients’ demands.

Logistics intelligence

This concept merges logistics with the use of intelligent devices, and tries to improve and optimize all the supply chain through the application of technology and the digitization of its processes. This is the reason why it connects with the internet of things (IoT).

As Logistics Intelligence moves forward, it allows managing all processes more efficiently not only reducing costs due to optimization, but also controlling stock levels and inventory movements in real time.

The IoT describes the network of things that are embedded not only with sensors but also with software and other technologies, for the purpose of exchanging data and connecting with other devices over the internet, obtaining information from various sources in real time.

As Logistics Intelligence moves forward, it allows managing all processes more efficiently not only reducing costs due to optimization, but also controlling stock levels and inventory movements in real time.

Beyond this, it seeks to streamline all billing processes and consequently those of collection, have a better control of carriers and dispatches and be able to carry out a complete follow-up of shipments, controlling all processes of the supply chain until the product reaches the customer.

Logistics intelligence benefits
1
Optimization of
logistic processes
2
Time
reduction
3
Decrease in
operating costs
4
Increased visibility of
supply chain
5
Realtime decision
making capacity
6
Effective
communication
7
Compliance with
regulations and security
throughout logistics
8
Remote control of
variables in a productive
environment
Logistics intelligence benefits
1
Optimization of
logistic processes
2
Time
reduction
3
Decrease in
operating costs
4
Increased visibility of
supply chain
5
Realtime decision
making capacity
6
Effective
communication
7
Compliance with
regulations and security
throughout logistics
8
Remote control of
variables in a productive
environment

How can we achieve an
efective implementation?

It is important to understand that companies have had high growth at the digital level. This is an indicator that shows us how companies have developed their technologies according to the digitalization of their processes.

Design

This is the reason why it is mandatory to carry out achievable, realistic plans making sure that these are oriented towards improvements.
To successfully implement any technological improvement linked to logistics processes, it is important to ensure that you have a plan that clearly determines objectives, scope of the project, the necessary resources and the performance indicators that will be of course measured at the end of the project. At the same time all related areas should be informed about the project and ensure that it has the support of all stakeholders.

Comprehend

When working with processes of a logistical nature, it is essential to do a diagnosis of inventories, to understand the way they are managed, how stock movements are recorded and clarify the levels of existence beyond the focus of the improvement plan. Knowing every step that needs to be taken will definitely improve our plan bringing excellent results.
If the improvements are aimed at the location of products, this must be accompanied by all the master data linked to warehouses, distributions, and infrastructure. If it is aimed to the monitoring of vehicles, not also the fleet must be known but also its characteristics and principally counting with the support of everyone involved in the distribution.
Even though different technological tools exist, to start implementing an intelligent logistic it is always recommended to study which is the best for the specific business.
stands for “Radio Frequency Identification” and defines the technology through which digital data encoded in smart tags is captured through radio frequency waves.

This system has several advantages over systems that use barcode asset tracking software. What´s most remarkable is that the data on the RFID tags can be read without line of sight, while barcodes must be aligned with an optical scanner. This type of reading belongs to a group of technologies called Automatic Identification and Data Capture (AIDC). AIDC methods automatically identify objects, collect data, and enter it straight into computer systems with little or no human intervention at all. RFID methods use radio waves to accomplish this. RFID systems consist of 3 elements:

  • an RFID tag
  • an RFID reader
  • and an antenna

RFID tags contain an integrated circuit and an antenna which is used to transmit data to the RFID reader (also called an interrogator). The reader then converts the radio waves into usable data. The information collected from the tags is then transferred through an interface to a host computer system, where the data can be stored in a database and analyzed at a later time or directly enter into a WMS as an inventory movement notification input.

This is why RFID optimizes inventory management, asset and personnel tracking, allows control of access to restricted areas, prevents counterfeiting and therefore increases the traceability of companies.

Even though RFID technology has been in use since World War II, the demand for RFID equipment is increasing very fast, in part due to many companies requiring their suppliers that their products have to be RFID traceable. Beyond the requirements, RFID codes allow handling much more data about an item than a barcode does. In addition, these are not susceptible to the typical damage of labels and the code reading is remote.

The Advantages of Using Big Data in the Logistic Sector: Big Data, refers to large-scale data that, due to its volume, growth speed and complexity, makes it difficult to capture or process.

However, each time, more organizations seek to work with this type of information, since applying it, mobility and markets in general could be totally transform. There are several applications of these technologies, and it goes from the implementation of algorithms that providemore efficient transportation routes, the use of "cloud manufacturing" that allows global sharing of resources, to redefining the way of distribution or order preparation.

The application of Big Data in the sector proposes sustainable vehicles, proactive infrastructures, intelligent logistics ports and hubs combined with efficient air transport that does not interfere with multimodal urban mobility. This dynamic supply chains adjust not only to the needs of the industry but also to society.

To achieve a successful project, first, a large-scale experiment must be carried out in a controlled environment and then yes, we are ready to start involving end users, with large volumes of real time data. One of the goals of these projects should be to provide solutions that are scalable.

Why BigData is
so important?

Analysis always helps organizations optimize their processes and use their data in order to identify new opportunities, and this is not the exception. Big Data not only provides a reference point to improve the organization internally, but also allows reducing costs and increasing service level.

Working with Big Data not only helps in decision making but also in having a clear overview which makes it easier to define key aspects of the organization, as well as taking executive and operational decisions that generate a great impact on the profitability of the processes.

For example, it not only helps to find and plan routes but also to minimize wasted time due to traffic, it allows you to have absolute control of all the routes and their timing. Being able to analyze driving habits allows you to control excessive speeds, driving times, among other things that allow you to take all the necessary measures and consequently save on fuel consumption and maintenance.

Beyond this, all companies try to control and develop strategies aimed at reducing their environmental footprint. These measures will be much more effective if they are developed from the organization real time data. Sustainability is a matter of concern and requires that companies care more about it.

Lastly, the marketing area uses Big Data to automate personalization of products; attempts to communicate effectively and as a result, captures new sales opportunities.

Some benefits of Big Data
1
Route planning and
traffic management
2
Cost reduction and
optimization
3
Analysis of
driven habits
4
Reduction of
environmental impact
5
Marketing and
sales
Some benefits of Big Data
1
Route planning and
traffic management
2
Cost reduction and
optimization
3
Analysis of
driven habits
4
Reduction of
environmental impact
5
Marketing and
sales
The transition to smart logistics is inevitable and will not only respond to major challenges but also to the potential economic, environmental, and social positive impacts that it promises to generate. The success of the transition depends on taking specific measures for each context and having a committed team that leads the organization to success.
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Eng. Maria Eugenia Silvera
Head of Process Consulting
Date: 03/09/2021