The modern business environment is based on fierce competition, which is why logistics service providers are verifying their traditional business models in search of opportunities to introduce innovation. Innovation, especially technological, is seen as the main determinant of the development of service providers, influencing their competitiveness (increasing competitiveness) and allowing them to stand out in the market, while simultaneously helping to orient service activities towards the customer, who is often individualized. To succeed, logistics service providers must excel in conditions of increasing complexity and uncertainty, effectively strive for operational excellence, and constantly improve the quality of management. Currently used information technologies offer significant potential for optimizing business processes, leading to the so-called digital transformation of business models.
The Fourth Industrial Revolution
In the history of our civilization, we have already experienced three industrial revolutions that were milestones in human development, fundamentally changing production processes, which ultimately influenced and shaped the current world.
The first industrial revolution involved activities related to the use of water power, which resulted in the creation of the steam engine, contributing to the development of mechanical tools.
The second industrial revolution was the result of the invention of electricity, enabling the launch of mass production on assembly lines.
The third industrial revolution is the so-called scientific and technical revolution, consisting of the automation of processes using electronics and IT tools to improve the quality and efficiency of production processes.
Just as in the case of the first two revolutions, one can say that this is history, but the third revolution does not yet belong to it, as it is still ongoing. However, there is increasing talk of an upcoming new revolution, the so-called fourth industrial revolution, called the Industry 4.0 era (or Management 4.0) or digital transformation. It constitutes a collection of technologies and ideas for creating a modern supply chain, based on the Internet of Things and the Internet of Services (Cloud Computing). The idea is to create a so-called smart factory, i.e., a factory where we deal with machines communicating with each other to perform a task as optimally as possible. It can be said that the currently existing world is one large IT system, based on constant digitalization and the complexity of IT solutions. What does this mean for logistics service providers – companies providing logistics services?
“Companies will operate in distributed locations, while groups of suppliers concentrated in a small area will allow for the free flow of ideas. The phenomenon called the democratization of industry, meaning the blurring boundary between the world of information and the physical world, can remove barriers blocking the development of small or highly specialized companies. It is possible that even mobile production units will appear, autonomous cells that will be able to move and carry out production for the local market without the need to build a full-scale factory. Such an approach will revolutionize the issue of foreign direct investment in developing markets. The creation of a complex production network will change the roles of designers and suppliers of physical products and relationships with customers. The first step will be the defragmentation of the supply chain. Business leaders will have to restructure value streams and identify areas that will be key in the future to reducing costs and increasing profits”.
It can be assumed that digital transformation poses a very serious challenge for existing entities in the TSL sector. The competitive position will depend on the speed of actions in business models, and the winners will be those entities that will be characterized by radically different business models, especially in the area of sales and customer service.
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Source: Logistyka Magazine