Logistics 4.0 and Future of Supply Chains

Table of Contents

1. Frontmatter

2. Introduction Chapter

   1. Frontmatter

   2. Chapter 1. Introduction

      İsmail İyigün, Ömer Faruk Görçün

      Abstract

      Over the past 40 years, we have seen dramatic changes and transformations in the operations carried out in the logistics and supply chain management. First of all, operations carried out today are not the same as those that were carried out in the past. Furthermore, they are more complicated in comparison with those of the past, and organization of these logistics operations is not possible unless logistics companies use advanced technologies. More importantly, while technology has rapidly developed, customer demands have also shown dramatic changes. Also, advanced technology usage has been more advantageous to companies. Even small-scale companies have become very competitive to stay in the business environment, thanks to their own technological developments. This, of course, assumes the companies and supply chains can easily compete depending on their technology usage in the highly competitive environment, which is often not the case. It is not sufficient to be aware of the power of technology; small enterprises should internalize the fourth logistics revolution as an important component of the industry 4.0. It is not an instrument for reducing cost alone, it is a circular process that requires an evaluation from a wider perspective. In addition to the theoretical background of logistics 4.0., real-world examples and case studies are available in this book. It has successfully examined the techno-logical improvements concerning the logistics management. It has proposed a methodological frame to understand the technological revolutions happening in the present day from the perspective of logistics management.

3. Logistics 4.0 and Future of the Supply Chains

   1. Frontmatter

   2. Chapter 2. Logistics 4.0 and Technologic Applications

      Barış Öztuna

      Abstract

      Along with Industry 4.0, which was first outlined at the Hannover Expo in 2011, work–life balance has gone under a major transformation. With the 4th industrial revolution, new technologies, such as artificial intelligence, cloud computing, 3D printers and the Internet of Things started to take greater prominence in the world of business. One of the sectors affected by the process that started with Industry 4.0 is logistics. For that reason, a concept called Logistics 4.0 has emerged. The concept of Logistics 4.0 denotes a process that causes an increase in efficiency and a decrease in the costs of automation. The objective of this study is to make predictions about the innovations that will be brought to logistics with the new process started by Industry 4.0. This study covers information and predictions regarding the technologic applications brought by Logistics 4.0.

   3. Chapter 3. Technology, Supply Chain, and Logistics Management

      İsmail İyigün

      Abstract

      It can be stated that developments in information communication technologies and micro-electromechanical systems have opened the door to the last industrial revolution (Industry 4.0). The effects of Industry 4.0 show its effects in all areas of life in addition to the area of supply chain management. In this context, this study intends to go over the effects of Industry 4.0on supply chain management. For this purpose, a meta-analysis of academic publications in the literature related to Industry 4.0 has been carried out. Academic publications published since 2013, when the concept of Industry 4.0 emerged, have been analyzed and their contents have been investigated. In particular, the key technologies that form the basis of Industry 4.0 have been put forward and the most studied technologies are listed under Industry 4.0. On the other hand, publications examining the concepts of logistics and supply chain management with Industry 4.0 have been also examined. As a result, it is aimed to reveal the most commonly used Industry 4.0technologies in the Logistics 4.0 and SCM 4.0 applications. As a result of the meta-analysis, technologies including IoT, CPS, smart factory, big data and smart product have been at the forefront in the Industry 4.0. On the other hand, it is seen that many different technologies such as cloud computing, artificial intelligence and data mining have been used in the researches examined. It has been determined that the studies, especially about logistics and supply chain management, which were taken together with Industry 4.0, have been concentrated in 2017 and 2018.

   4. Chapter 4. A General View of Big Data and Machine Learning

      Özhan Görçün, Hande Küçükönder

      Abstract

      Nowadays, winds of digitalization have continuing blow in the world. No one cannot ignore these kinds of changes and is continuing to cause dramatic changes in our lives. Big data is one of the crucial parts of these changes. Nowadays, almost millions of people have become the main element providing the data flow. Furthermore, they are continuing to perform it voluntarily and willingly. As a result, companies, industries, and other stakeholders have started to encounter a very huge volume of data about their customers. However, most of the data are not be useful because they are not structured. This chapter is organized into two parts. In the first part, the big data concept was explained and its important elements were discussed. In the second stage, machine learning and its elements were presented information on some computational tools used for converting the unstructured data to structured data.

   5. Chapter 5. 3D Printing and Logistics

      Ayşegül N. Bayraktar

      Abstract

      3D printing is a production process. 3D printing takes place among the techniques known as additive manufacturing and is used in the market as synonymous with additive manufacturing, and even commonly 3D printing is used instead. When there are three elements as digital model, feed material and 3D printer, then the needed product can be produced at any time and at any place by 3D printing. This technique has changed the principles of traditional production as producing the parts separately and then assembling. In other words, the traditional way of business will have been transformed to a new style. 3D printing is a disruptive and a growing trend in the business. It is assumed that 3D printing will cause and economic effect as 230$ billion to $550 billion per year by 2025. Also the increase in enthusiasm of companies in trying and using of this technology supports this assumed economic effect. Worldwide trademarks as Mercedez Benz, BMW, IKEA, Ford have shared their experiences, productions and savings. Experiences with 3D printing have shown that its usage is beneficial. Some of the benefits gained by 3D printing can be defined as shorter lead time, cheap production, fewer stocks, elimination of assembling requirement, acceleration of design process, etc. Shorter lead time, fewer stocks and elimination of flow for assembling requirements point out the change in supply chain and logistics market. With 3D printing, it is possible to produce closer to the customer by minimizing inventory, transportation and handling costs. As a service provider, logistics companies should review their service infrastructure in line with the needs of their customers who will adopt these strategies.

   6. Chapter 6. Autonomous Robots and Utilization in Logistics Process

      Ömer Faruk Görçün

      Abstract

      The autonomous robots are required in our logistics operations? It is one of the crucial questions that asked to him by logistics managers. Depending on technological developments, some requirements, which can be defined as speed, lower cost, and high quality, have become more important to stay in a highly competitive environment for companies and supply chains compared with the past. Autonomous robotic systems can help to reach these aims. They can provide a more safe working environment in warehouses, distribution centers, and other logistics facilities. İn addition to that, they can provide opportunities for carrying out lower costly, speedy, and quality logistics operations. Furthermore, robotic systems continue to improve, and creating more specific robotics that will be used in the field of logistics will be possible in the near future. Moreover, robotic systems becoming smart and autonomous thanks to artificial intelligence, developed sensors, and trainability. In the future, requirements for human force may reduce in logistics operations since robotics may carry out logistics activities autonomously depending on these technological improvements. Finally, autonomous robots can provide opportunities for carrying out more quality and excellent logistics operations to logistics managers and staff in the near future.

   7. Chapter 7. Warehousing 4.0 in Logistics 4.0

      Mahmut Tutam

      Abstract

      Warehousing is an important component of logistics and plays a critical role in contributing to a company’s success. With the advent of e-commerce, warehouses are becoming increasingly more important than ever in logistics. Typically, warehouses receive, store, preserve, retrieve and deliver millions of products on a daily or weekly basis. Therefore, warehouse systems are being continuously revised to accommodate a continuous flow of products in logistics. In recent years, a large and growing number of studies related to the development of warehouses have been conducted. Accordingly, mobile, autonomous, compact, or collaborative systems are increasingly applied in warehouses (called Warehousing 4.0). This chapter presents the state of advancement of Warehousing 4.0 by evaluating the current situation and considers future prospects by including emerging technologies.

   8. Chapter 8. Cloud Information Systems

      Evrencan Özcan, Tamer Eren

      Abstract

      With the development of information technologies, the needs such as transferring and storing data, and providing quick access to the data have arisen. Cloud service providers have emerged on these needs. Businesses can stream and store data, and access it at any time over a fixed portal thanks to cloud service providers which have advantages such as low storage costs, working with cross-platforms, fast data flow and access facilities at any time. In this context, considering the importance of data in the effective management of commercialorganizations, these advantages of cloud computing systems offer great opportunities to businesses. From this point of view, it can be said that an analytical evaluation is of great importance in the selection of cloud service providers. Within this scope, in this study, the criteria such as performance, satisfaction, data transfer rate, suitability and network latency, etc.) that businesses should consider renting the most suitable cloud service provider were examined and cloud service providers were compared under these criteria by suitable multi-criteria decision-making algorithms.

   9. Chapter 9. Logistics, Supply Chains and Smart Factories

      Hazar Dördüncü

      Abstract

      The automation systems and the human factors advancing within the scope of technologies that develop under the impact of Industry 4.0 become of secondary importance in every field where human dominance exists. While labeling companies as smart factory wherein all courses of action that involves the replacement of human brain with artificial intelligence within the production processes are digitalized, and all transactions are made by digital technologies, it is revealed that this new process provides a more opportunistic system for companies that focus on supply chain management. Smart and data-based technological improvements along with the developments in barcode, sensors, internet of objects and RFID technology, and advancement in Industry 4.0 have provided great convenience to companies that use supply chain processes; logistics companies in particular. The use of artificial intelligence and new technologies ensures supervision of customers and the better management of customer relations, and companies gain a competitive advantage over their competitors. In this study, the transition of companies using traditional supply chain management to the new smart and data-based supply chain process will be explained.

   10. Chapter 10. Internet of Things (IoT) in Marketing Logistics

       Ezgi Uzel Aydınocak

       Abstract

       The increase in international trade around the world has expanded the markets in which businesses operate, while increasing the demand and diversity for products and services. This triggered the need for more information and visibility in managing supply chains and logistics activities. For this reason, the spread of the Internet of Things, one of the most important elements of Industry 4.0, has accelerated today. The data gathering power provided by the Internet of Things and its ability to rapidly transform this data into information is to make all activities taking place along the supply chain more visible. In this way, the control of the flow of goods and information in logistics activities has been facilitated, costs have been reduced and most importantly, it has helped enterprises increase their customer satisfaction by increasing their competitiveness. The aim of the chapter is to briefly explain the development of Internet of Things technology and demonstrate its effects over logistics and supply chain activities.

   11. Chapter 11. Integrated Systems and Utilization in Logistics

       Haci Mehmet Alakaş, Tamer Eren

       Abstract

       Logistics takes place as a support system in every phase of a product life cycle, starting from the supplier to the recycling or disposal process of the product. At these stages, logistics systems work both integrated with other systems and different systems work integrated with logistics. Logistics systems support systems such as supply chain, purchasing, production, storage, sales and marketing. Decision processes and outputs of these systems are effective in decision-making in the logistics system. In addition, systems such as geographic information systems, vehicle tracking systems and the Internet of Things also work integrated with the logistics system. With their structures that affect the system’s performance, they play an essential role in the traceability of the logistics system and the establishment of effective system infrastructure. In this section, systems that are effective in the operation of logistics systems are discussed. Analytic network process which is one of the multi-criteria decision-making methods was used to determine the impact of systems on the efficiency of the logistics system. Thus, the systems that have the most effect on logistics system efficiency have been determined. Finally, information technologies used to facilitate and speed up the logistics system are mentioned. The effects of new systems developed with Industry 4.0 on logistics are emphasized.

4. Future of Industries and Applications

   1. Frontmatter

   2. Chapter 12. Sustainability and Industry 4.0

      Mustafa Özan

      Abstract

      Three major industrial revolutions took place until the time we are in. Today, the fourth biggest industrial revolution, called Industry 4.0, has been entered. Industry 4.0 has a structure that includes production systems that respond to the consumer’s changing needs very quickly and automation systems that facilitate coordination between business processes. With the Industry 4.0revolution, businesses made their production processes more efficient, discovered new ways to facilitate communication with consumers, and ensured their collaboration with their partners was coordinated. It is impossible not to be affected by the logistics sector, one of the leading sectors in the world within the mentioned domain. Industry 4.0 has significantly impacted the sustainability of resources using digital technologies (Özdemir and Özgüner 2018, p. 43). They are emerging with the industrial revolution within Industry 4.0; the Internet of things, smart factories, big data analytics, cyber-physical systems, and so on. Many technologies have facilitated sustainability by significantly reducing environmental problems. This study aims to explain how to use Industry 4.0 effectively in ensuring sustainability and reveal the benefits that digital technologies can provide to the sustainability efforts of businesses. For this purpose, the literature has been studied in detail, the crucial points have been identified and focused on, and Industry 4.0 and Sustainability concepts to which it depends are explained. While working towards the stated purpose, the central premise, the complex technical concepts, and dynamics of the subject have been filed optimally, and the efforts to highlight vital points have been shown. It informs industrialists, academics, and university students about the impact of the Industry 4.0 revolution on the sustainability efforts of businesses.

   3. Chapter 13. Finance and Cost Management in the Process of Logistics 4.0

      Lokman Kantar

      Abstract

      Industry 4.0is a revolution of creating added value, based on the use of machinery and robot power instead of arm strength of works that do not require any qualification and specialization on jobs that require qualification. Replacing the manpower of the machines, making them coordinable; thanks to new developments in computers and internettechnology, and making the production processes self-manageable, led to the emergence of the Industry 4.0concept. Logistics 4.0 explains the implications of Industry 4.0 on transport and cross-functional coordination tasks and how digitalization and automation in logistics should be shaped and supported. In the case of applying Logistics 4.0 in the supply chain, it provides significant and potential cost savings. The financing of the supply chain in the Logistics 4.0 process, which is the subject of this study, is extremely important for logistics companies to gain profits with low resource cost and working capital, and maximize cash flows and increase firmvalues. The supplier companies and the focal company in the supply chain utilize the credibility of the focal company to finance their investments at a low cost. Firms in the supply chain also need to reduce their working capital and increase asset turnover (sales/assets) by lowering their stock levels in order to increase their return on equity (ROE). In order to reduce the working capital of logistics companies, they need to decrease their stock levels, storage costs, transportation costs, and increase their service levels to customers. According to the case study findings relatedto SCF, if the suppliers in the supply chainuse the SCF instrument, a serious decrease in credit costs is observed. In order for Focal Company to take advantage of these transactions, the supplier companies in the supply chain must make an additional “pro rato” payment or sale discount.

   4. Chapter 14. The Effects of Industry 4.0 Components on the Tourism Sector

      Gülüm Burcu Dalkiran

      Abstract

      The industrial revolution that emerged in Europe in the 1800s has affected all sectors by spreading to different continents with the use of different technologies over time. Developments in technology have enabled the tourism sector to develop by affecting both production and consumption dimensions. In addition to the factors that improve the tourism supply, such as transportation and communication technologies, the increase in commercial activities with the ease of production and supply provided by mass production, and the expansion of the tourism market with the increase of travel, technologies that can be closely followed digitalized tourism market, allowing customized marketing, have revealed the demand for tourism. In this section, industrial revolutions and their effects on the tourism sector are evaluated under the titles of Industry 4.0 components such as big data analytics, augmented reality applications, internet of things and artificial intelligence.

   5. Chapter 15. The Problem of Employment and Growth in the Fourth Industrial Revolution

      Duygu Yücel

      Abstract

      Having been the products of arising needs, industrial revolutions led to many innovations in economic and social life during their respective periods. The Fourth Industrial Revolution has started the digital age we are in, thanks to the development of the Internet of Things, the Internet of Services, Cyber-Physical Systems, Robots, Big Data, and Cloud Computing Systems. The technological development of automation and information systems in production paves the way for certain changes in macro dimensions such as economic growth and employment. Digital advances in the Logistics sector, which cannot be considered independent from production, on the one hand provided increased productivity in the sector, yet, on the other hand, gave a rise to an unemployment problem for the labor sector. The unfavorable landscape that the Fourth Industrial Revolution initially created regarding employment can be overcome by lifelong learning, higher education, and the supply of a qualified and competent workforce. First of all, it has been the humancapital itself that triggered technological developments. In the present study, the first three industrial revolutions are briefly discussed in terms of their economic effects and the Fourth Industrial Revolution is examined theoretically. The effects of digitalization on economic growth and employment, and especially the changes induced thereby in the logistics industry are mentioned. The fact that technological developments are inversely associated with employment at the beginning, is examined as a disadvantage along with the many facilities it introduces.

5. Backmatter