The Future of Logistics
Logistic & Supply Chain Trends
• External Forces
• Optimization
• Risks
Sustainability
Technology
Equipment Advances
Warehousing
Modal Trends
External Forces
“The Past Does Not Reflect the Future”
Demographics
–urbanization, aging population, shifting wealth and economic power
Technology
–social media, new communication technologies, “Cloud” based economy
Health and Safety
–visibility/ accountability for consumers, suppliers, manufacturers
Sustainability
–scarcity
–CO2, climate change, alternative fuels
Regulatory Pressures
Optimization
“Trading partners share information in their relationships”
Consumer Driven
 Multiple partners connected
 Systems Collaboration
 Shared Assets & Competencies
Risks
What risks surround supply chain?
 Theft and counterfeit
 Higher valued goods
 Global Supply
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Increase in Fuel Prices
Government Regulation
Sharing of Information
Margin Compression
Sustainability
Three Dimensional
1. Environmental - Reduce Carbon Footprint
2. Society – Improved lifestyle
3. Economy - Transportation Efficiency
Sustainability
Global Strategic Initiatives:
• Source Locally
• Long Term Relationships with Suppliers
• Buy larger quantities from fewer suppliers
• Keep Operations Lean
• Reverse logistics
• Less petroleum dependent supplies / transport lanes
• Alternative fuels and energy
Sustainability Solutions
Shared
– Infrastructure , transportation, warehousing
– Planning, ordering, manufacturing
– Recycle, reuse
Efficient Assets
– Modernize equipment
– Green buildings
– Alternative fuels (biodiesel), natural gas
Sustainability Solutions
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Alternative Power Units
Satellite monitoring system
SmartWay Transport Partnership
Alaska’s Green Star program
Carlile purchased Kenworth’s First Hybrid
Tractor in PNW
Technology
“Engaging with the user versus talking to the user”
Trends
– “Cloud” Utilization Collaborative systems
– Accessibly
• Pads
• Onboard equipment
• Freight technology
Goals
• Visibility and accessibility resolving issues
• Real time and forecasting instead of
reacting
Technology -Enterprise Resource Planning ERP
• Operating systems
– Warehouse Management Systems (WMS)
– Transportation Management Systems, (TMS)
– Global Data Synchronization, Bar-coding,
Radio Frequency Identification RFID
Electronic Data Interchange
• Sales and Marketing
– Customer Relations Management (CRM)
• Financial
• Other Management Systems
Collaborative ERP
Virtual Shared Logistics Management Systems (VSLMS)
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Collaborative systems
suppliers
manufacturers
warehousing
logistics
consumer
regulatory agencies
Equipment Advances
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Planes
Trucks & Trailers
Vessels
Tractor/ trailer bullet train by 2020
Trains
Terminals
Planes by 2020
Trucks by 2020
Equipment Advances cont.
“Robotics “ They never call in Sick”
• Automated Equipment
– Types:
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Stationary
Gantry
Robotic Arms
Mobile
• Automated Guided Vehicles (AGV)
– Walk Around Technology
– 10 years 30% of warehouse with AGVs
Logistics Warehouse
 Future Distribution Centers (DC) – centrally located, fully
automated & computer controlled
 Order Fulfillment & Automation
Logistics Warehouse
Networked Warehouse
Management Systems
– Interact directly with automated
equipment
– Full visibility to Provider and
Supplier
– Read / Write Tags – modify on
site
– Hand Held and Screen Touch
Mobiles
Modal Trends
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3PL Integrated Operations Warehousing / Transportation
4PL trademarked by Accenture – Integrator of Resources
Regional hub / distribution into cities
E Commerce
Conclusion/Questions
Sources
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2020 Future Value Team Report, “Building Strategies for the New Decade”.
Global Commerce Initiatives “Future Supply Chain 2016 Report
2020 Future Value Chain Building Strategies for the New Decade, Capgemini Group 2011
Brad Mitchell President of UPS Distribution and Logistics.
Taken from Inbound Logistics Interview with Alison Dennis at Burgerville
Tompkins and Associates
Next Big Future, Sept 2011
Paul Kellett Robotic Warehouse Report
Study of Logistics and Transportation Trends: Navigating transportation’s Bermuda Triangle
20th Annual study of logistics and
• Transportation Trends (Masters of Logistics). Mary C. Holcomb, Ph.D., and Karl Manrodt, Ph.D.,
Contributing Editors September 01, 2011
• Slide #16
http://www.youtube.com/watch?feature=player_detailpage&v=6xvBj4hBQ9k
• AGV slide #
18 http://www.youtube.com/watch?feature=player_detailpage&v=lDyi9Yipt7c
• The Slide #20 Voice vs
http://www.youtube.com/watch?v=BcbhbGRXZRE&feature=player_detailpage