The progressing globalization of the economy and the removal of trade, political, and economic barriers generate a need for fast and effective actions that result in adapting company operations to new conditions. Logistics, being a fundamental factor in the competitiveness of enterprises, is particularly susceptible to the introduction of all types of innovations and new ideas, which—if successful—have a chance to attract the interest of the business community and be implemented quickly. This translates into financing further research into new technologies and constitutes a self-propelling mechanism for seeking new solutions.
Looking at modern logistics, it should be noted that it utilizes technical, technological, and organizational innovations that have appeared over the last few years. Introducing innovative solutions is becoming a standard for many companies in the TSL market, a determinant of so-called best practices. One could talk a lot about innovative solutions applied in logistics. They cover almost all spheres of logistical activity, starting from the development of means of transport and handling equipment, through the organization and control of material flow, to the development of structures of systems implementing logistical and transport processes, as well as the development of so-called business principles that condition sound rules of competition and cooperation.
According to K. Gourdin, every implemented innovation improving the quality of services in existing logistics chains should be characterized by: reliability (the supplier should meet all customer expectations in accordance with the order); lead time (specifying the time of operation which affects costs—often a significant factor in choosing a logistics operator); operational functionality (taking into account the possibility of technical cooperation, etc.); communication (monitoring the flow of cargo, materials, goods, payments, information management); and integrity (honestly presenting capabilities and then performing services in accordance with declarations).
On the other hand, Dan Gilmore, editor-in-chief of Supply Chain Digest, considered the Toyota Production System, ECR and CPFR (Continuous Planning Forecasting and Replenishment) applications, the container, EOQ (Economic Order Quantity), Ford’s assembly line, the barcode, FedEx tracking systems, and DRP (Distribution Resources Planning) to be among the most important innovations in the history of supply chains. These solutions are standards today and cover both technology and the organization of material flows.
Means of transport and auxiliary equipment
It seems that in the field of means of transport and handling equipment, the near future will not bring radical changes that could quickly replace currently used systems and solutions. Of course, due to technical progress itself, design details, materials, and manufacturing technologies for transport vehicles will be continuously improved. The goal of these changes will be to reduce machine operating costs and increase their efficiency and reliability.
Currently, one of the main challenges in this area of logistics operation is ecology in the broad sense. In this aspect, innovation in handling equipment and means of transport primarily means alternative drive techniques (e.g., hybrid, electric drives), ergonomics and ecological cleanliness of vehicles, new materials for manufacturing bodies, components, and road surfaces, new control and automation systems, and increasing the safety of both internal and external transport means.
A great deal of attention is paid to improving communication—both between different management systems and employees performing tasks in various functional areas of the company’s logistics system, for example, the cooperation of employees working in different areas of the warehouse, forwarders, and vehicle drivers, etc. To improve this, systems such as Voice-Picking, Pick-to-Light, or RFID technology in warehouses are being developed. Barcode scanners built with high-resolution camera technology and other ADC devices streamline the implementation of warehouse processes, and portable PDA terminals support the work of drivers.
I would like to emphasize that when introducing innovative solutions in logistics, a systemic approach should be taken into account. For example, solutions in the field of warehouse systems, including material handling and storage layouts, are determined by the technological standards of pallets, containers, or vehicle bodies, and vice versa. Innovations made in such systems therefore consist of automating part or all of the logistics process and integrating industrial automation with advanced control algorithms. In this case, the control process is important. The implementation of algorithms supporting the execution of logistics processes at the operational level is controlled by mid-level systems of the WMS (Warehouse Management System) or SCM (Supply Chain Management) class, as well as superior ERP (Enterprise Resources Planning) systems. Meanwhile, functional solutions such as Multi DC-View enable the integration and cooperation of various systems in extensive logistics networks.
It should be noted that all these solutions are actually components that, when combined in an appropriate way in a technological project—preceded by an appropriate analysis and logistics design—can constitute innovation. A well-prepared project, after implementation, not only results in improvements but also reduces costs and increases the satisfaction of both employees and customers. Due to the research work conducted at the Department of Logistics and Transport Systems, we carry out many such studies. Students of the Logistics and Transport Technology specialization, while doing internships in many companies, develop projects concerning improvements to the logistics systems of many companies in the solutions proposed in their diploma theses, adapting innovative solutions to the industry and the company’s profile.
The article comes from the magazine “Logistyka” 5/2011.