Factors Related to Modern Capabilities in Logistics Engineering and their Influence on Supply Chain Resilience and Flexibility
Keywords:
Logistics 4.0, Logistics Engineering, Digitalisation, Supply Chain Resilience, Supply Chain FlexibilityAbstract
Industry 4.0 technologies have shaped the logistics capabilities under their new framework of Logistics 4.0. Under the evolving framework of Logistics 4.0, the industrial electrical and mechanical machines traditionally controlled by on-plant supervisory programmable logic controllers can be controlled by software-based monitoring and control systems hosted on cloud computing. This shift towards vertical integration requires all machines and equipment to transmit data from their sensors directly to the cloud-hosted software designed to monitor and control multiple manufacturing plants spread globally. Thus, a fully interconnected system of machines and equipment can be achieved enabling visualization of the physical processes at the cloud computing layers. In this evolution, the traditional ERP and MRP systems can be deployed on cloud computing for controlling multiple manufacturing plants spread globally. Further, layers of intelligent software systems using artificial intelligence and machine learning can be deployed for advanced predictive analytics. In such an environment, new logistics capabilities can be created: digitalization, real time visibility of logistics events, automated remote monitoring and controls, self-configuration and diagnostics, self-collaboration and communication, intelligent management of dynamic processes, and cognitive and environmental awareness. This research investigated their impacts on supply chain resilience and flexibility using the Fuzzy Interpretive Structural Modeling (FISM) method. Rankings of influences were collected from eighteen experts using a five-level scale. The rankings were processed and analyzed using the FISM method. The final model shifted the intelligent management of dynamic processes to the dependent variables’ group alongside supply chain resilience and flexibility thus creating a model of the remaining above-mentioned variables grouped as independent variables influencing them. Revisiting theory, it was proposed that digitalization and real time visibility of logistics events are foundations for enabling the remaining new logistics capabilities. Remote monitoring and control of logistics events can be done by cloud-based applications supporting the ERP and CRM. The self-diagnostics capabilities may help the machines in invoking preventive maintenance and troubleshooting thus improving their longevity and reducing their outages. Environmental awareness may help in reducing disruptions, outages, engineering failures, and environmental hazards. The key aspect to be kept in mind is that every plant and other facility networked under the Logistics 4.0 framework should have digitization feasibility of all machines and reliable Internet connection at sufficient capacities.
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