New perspectives for digitalization in logistics

Information from research and for companies

What opportunities are associated with digitalization in logistics?

The rapid pace of development in digitalization is constantly opening up new opportunities for companies to further develop their structures and networks. New digital technologies form the basis for a profound optimization of logistics processes. For more and more companies in Germany, digital transformation is now firmly anchored in their self-concept – including the willingness to make lasting changes to established processes.

Menschliche Hand berührt digitale Energie, symbolisiert digitale Transformation in der Logistik
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Many companies, especially small and medium-sized enterprises, are still not fully exploiting the potential offered by digital transformation: “Digitalization is more important than ever: increasing globalization has intensified competition and made supply chains more complex,” says Christian Prasse, Head of Strategic Development at Fraunhofer IML. “To serve international markets while minimizing transport costs and delivery times, companies must therefore develop increasingly efficient processes.”

Digital transformation enables companies to increase process transparency through seamless real-time monitoring and to plan and control them proactively. By using historical data, real-time information, and basic algorithms to predict future events, companies can take proactive measures. According to Christian Prasse: “Transparency and the ability to make forecasts are now the most important prerequisites for corporate competitiveness.”

Sustainability has also become an increasingly important aspect of process optimization in logistics. Digitalization makes it possible to minimize environmental impact, conserve resources, and achieve climate targets, whether self-imposed or legally required.

Digitalization in logistics also extends to continuing education and training: technologies such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (XR) simplify training and shorten onboarding times. This helps to mitigate staff turnover and the shortage of skilled workers.

What are the advantages of digitalization in logistics?

++ Increased efficiency

++ Faster decision-making

++ Greater transparency

++ Higher flexibility

++ Quicker delivery

++ Cost reduction

++ Improved use of resources

++ Error reduction

What are the key factors for the successful digitalization of logistics?

The digital transformation of logistics is not a task for individual companies, especially in times of rapid technological progress, but rather a joint effort: Today's supply chains and value creation networks connect a large number of different players around the globe. Digitalization does not stop at the boundaries of a company and must therefore always be considered across company boundaries. Technological progress and cultural change must go hand in hand in today's digital transformation projects. This is also a key finding of the large-scale research project Silicon Economy conducted by Fraunhofer IML.

More than ever, companies need a vision, a high degree of willingness to change and a systematic approach in order to successfully shape the digital transformation. In the Silicon Economy project, researchers have defined four key factors for the digital transformation of logistics – as new drivers of innovation for the digitalization of logistics. The institute conducts intensive research on these topics as part of its own initiatives and publicly funded projects. The aim is to offer companies the best possible support in implementing digitisation projects. Researchers at Silicon Economy have developed numerous exemplary software and hardware components that companies can use to drive forward the digital transformation in a targeted manner.

Logo open logistics foundation

Collaboration

Logistics is inherently designed for collaboration. Today, more than ever, digitalization projects require cooperation between competitors. With the Open Logistics Foundation, Fraunhofer IML has initiated the establishment of a foundation under which companies can work together on digital solutions.

Open Source

Open source is a concept for developing and publishing software that has been established for many years. In the context of logistics digitalizing, open source is now becoming a driver of innovation. In the Open Labs at Fraunhofer IML, companies have the opportunity to define the requirements for new software in communities.

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© Fraunhofer IML

Artificial Intelligence

Artificial intelligence (AI) has become one of the most important tools in logistics for closing gaps in digitalization. Both fundamental research results and industry-ready components are available at Fraunhofer IML.

Sustainability

Companies have the opportunity to use new technologies and greater cooperation to initiate a “twin transition”, i.e. a simultaneous digital and sustainable change. This will conserve resources and make processes more efficient and better.

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© Fraunhofer IML

Our research and service portfolio

Our services for companies

Fraunhofer IML offers companies a wide range of opportunities to drive forward their digital transformation and further develop their business: step by step, based on specific problems, or disruptively through the introduction of new technologies. One focus is on advising clients on the selection of technology.

 
 

Our research

The success of digitalization in logistics depends largely on the development of standards for logistics processes. The Fraunhofer IML has already laid the foundations for this in publicly funded research projects. The institute is constantly addressing new research fields, particularly in the sections “digital platforms” and “digital infrastructure” and “human-technology interaction”.

FAQ on digitalization

  • The term Industry 4.0 basically stands for the intelligent networking of machines and processes in industry based on information and communication technologies. The digitalization of logistics is in turn understood as a necessary basis for the introduction of Industry 4.0 solutions and concepts that can be incorporated into innovative business models. This makes it the starting point for change. At the heart of these developments is always the same essential question: How can real added value be created that makes it worthwhile to change established processes or existing business? To achieve this, companies must consider digitalization and their corporate strategy hand in hand and develop them further. Digitalization thus becomes a vehicle for achieving corporate goals.

  • The focus of digital optimization is on decision support in business and work processes with context-related processing and needs-based provision of information by support systems. Unlike with autonomization, the responsibility for operation and decision-making lies with humans. In general, a distinction is made between the system (the actual “intelligence”) and the interaction medium (the device) in support systems.

  • Positions remain unfilled, staffing levels are declining, and employees are getting older: the shortage of specialists now affects all areas of logistics and calls for (digital) alternatives. The digital transformation is making it easier to recruit, train and qualify employees for logistics. At the same time, new demands are being placed on job profiles and fields of activity in logistics. However, acceptance of digital technologies is increasing as their added value becomes apparent: digital tools are attractive to young people and support systems make physical work easier for older employees.

Contact

Christian Prasse

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Dipl.-Logist. Christian Prasse

Fraunhofer Institute for Material Flow and Logistics

Veronika Kretschmer

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Dr. phil. Dipl.-Psych. Veronika Kretschmer

Research Scientist

Phone +49 231 9743-289

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Benedikt Mättig

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Dr.-Ing. Benedikt Mättig

Member of the Scientific Board

Phone +49 231 9743-270

Benjamin Korth Dipl.-Inf.

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Benjamin Korth Dipl.-Inf.

Head of Department Information Logistics and Decision Support Systems

Phone +49 231 9743-232