INSPIRATION SERIES:

THE FUTURE OF
LOGISTICS AND
SUPPLY CHAIN
MANAGEMENT

1. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
Inspiration sessions from
trendwatcher & futurist

RICHARD VAN
HOOIJDONK

Are you ready for a mind-blowing journey

into the future of your industry?

In our inspiration sessions we will show you

how the current technological developments
are set to change everything you thought
you knew about life and business. Book a
session and let’s explore that future together.

For more information, visit:

richardvanhooijdonk.com

2. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
CONTENTS

1.O 4.O
THE INTERNET 3D PRINTING
OF THINGS (IOT) PAGE 11
AND BIG DATA
PAGE 5

2.O 5.O
ROBOTS AND QUANTUM
AUTOMATION COMPUTING
PAGE 7 PAGE 12

3.O 6.O
DRONES AND BLOCKCHAIN
SELF-DRIVING PAGE 13
SYSTEMS
PAGE 9

3. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
 INTRODUCTION
Logistics and supply chain management
have been defined by traditional
methods and the slow adoption of new
technology. But refining existing tech
has reached its practical limit, and
the demands of global businesses and
changing customer expectations are
pushing change. Customers are asking
for shorter lead times, lower prices, and
more frequent, smaller deliveries. And
the costs of mistakes, inefficiencies,
and missed deadlines is growing as
competition increases.
To meet these evolving expectations
and challenges, logistics will soon
adopt a slew of innovative, disruptive
technologies, transforming the industry
forever. The move to digital supply
chain management, leveraging the
power of the Internet of Things to
‘smarten’ logistics, will redefine what it
means to keep an eye on a delivery. Big
data will allow a level of optimisation
unheralded by the past, and the new,
smart automation of warehouses will
vastly improve efficiency while lowering
overheads. By investing in drones, self-
driving systems, and 3D printing, the
“We are at a turning point way products are delivered will undergo
in the industry where transformative change. And quantum
disruptive innovation is processing and Blockchain offer new,
required to meet the expo- exciting opportunities for supply chain
nentially growing customer management.
expectations.” In short, the future of logistics is high-
tech, defined by a new array of smart
- D a n n y H a lim , vi c e p re s i d e n t o f advances that offer a profound break
dis trib u tio n a n d 3 P L s t r a t e g i e s a t
JDA S o f tw a re
with the past.

4. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
1.0
1.O
THE INTERNET OF THINGS
AND BIG DATA
“In my specific area, we’re just starting to see Internet of Things (IoT) technology
really take hold because this industry is... a bit medieval in terms of adopting
leading-edge technology. Logistics companies tend to be slow followers,
in most cases, except perhaps for the UPSes and the FedExes of the world.”
- J ohn M a ley, g lo b a l l e a d e r f o r f re i g h t l o g i s t i cs at I BM
The Internet of Things (IoT) is the connectivity that allows
smart devices to talk to one another, and it’s at the foun-
dation of the supply chain management of the future. By
gathering and sharing information from and between
connected devices, the IoT is the beating heart of big data
and the nervous system at the centre of the supply chain.
Without it, supply chain management is essentially blind.
“These are industries which, despite
the constant chatter about optimi-
sation, streamlining and technology,
remain bloated and inefficient.”
- F inb a rr Be rm in g h a m, G l o b a l Tr a d e R ev i e w
For instance, end-to-end visibility is critical for ensuring
delivery, increasing efficiency, and avoiding loss, spoilage,
and unnecessary duplication. By harnessing the power of
5.
sensors, and enabling these sensing devices to communi-
cate, the logistics services of the future can guarantee the
kind of visibility that will allow them to stand out.
But when we speak of sensors, we mean far more than RFID
badges or GPS tracking for cargo containers. The future of
sensors is sophistication and complex information gather-
ing. For instance, sensors embedded on pallets of perish-
able goods can alert you to temperature fluctuations that
might damage items in transit, letting you know about an
emerging problem before cargo is spoiled. Smart sensors
in your trucks can tell you when they’ll need maintenance
before they break down in transit. And cargo containers
that know when they’re open, delivery trucks that signal
when they’ve been idling for unusual periods, and wearable
smart badges that track the location of your delivery men
in the field, can help you lower costs by ensuring that your
deliveries arrive as promised.
T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
Think of this as a process that begins with the IoT, moves
through data collection to analysis, resulting in improved
customer service. The IoT is the glue binding a process of
refinement and analysis that improves the quality of your
service. Smart sensors are a company’s eyes in the field,
generating data about the strength of its logistics chain.
This data isn’t just information about where shipments
are - that’s the old way. Instead, think of the wealth of new
information they provide: average idling times for delivery
trucks, temperature averages and extremes in transit, and
the frequencies of various problems. By analysing this data,
the companies of the future will refine their service and
enhance customer satisfaction.
Indeed, the savings of IoT optimisation can be enormous.
As Finnbarr Bermingham reports for Global Trade Review:
Lasse Eriksson, vice-president of digitisation at
Finnish company Cargotec, said that in the cargo
trade, using smart devices to monitor and control
vessel fuel consumption, to conduct requisite mainte-
nance and repairs and to manage and co-ordinate the
fleet correctly could save US$350,000 per vessel per
year. With more than 90,000 ships currently sailing
the world, that is a colossal US$32bn industry saving
each year.

“...Big data logistics can be used to

optimise routing, to streamline
factory functions, and to give trans-
parency to the entire supply chain,
for the benefit of both logistics and
shipping companies alike.”
- Mona Le b ie d , Da ta p i n e

Maersk Line has adopted the IoT to manage its colossal

fleet of refrigerated containers. By equipping each unit with
connected sensors, they’re aware of problems as they hap-
pen, know precisely where the problem is, and can provide
the resources necessary to fix it in real-time. UPS is also an
early adopter in the industry, using smart devices to track
its delivery men on urban routes, where the last mile prob-
lem is the most pressing due to issues like parking and
long walks to the final destination. ‘Big Brown’ is a perfect
example of how to use the IoT for analysis. As they gathered
information about these deliveries, they realised the need
for micro-hubs, streamlining the process and improving
their bottom line.
© SergeevDen / Shutterstock.com

6. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
2.O

ROBOTS AND AUTOMATION

“Robotics have been around for more than 50 years, but they have become
dramatically more dynamic in the last five. They are no longer stationary,
blind, expensive and unintelligent but can work alongside people and learn
as jobs change.”
- Paul D ittm a n n , e xe c u t i ve d i re c t o r o f t h e G l ob al Su p p ly C h ain In st it u t e

Robotics is revolutionising warehouses, and the future of warehouse logistics is a smart mix of humans and machines.
This was a disruption that was slow in the making, as the last generation of robotics was simply to clumsy, strong, and
stupid to improve warehousing. Moreover, until recently, the cost of machines exceeded the price of human labour.

THE HOURLY COST OF ROBOTS V HUMAN OPERATORS

(€/hour, France)
Over time, increased productivity, the lengthening in the lifespan of solutions and the drop in equipment prices all favour the
move towards robotisation, while labour costs continue to rise.

116
ROBOT

50

39

20 19
OPERATOR 15 17

9 18
10

1990 2005 2010 2015 2020

Source: www.consultancy.uk/news/12161/logistics-robots-to-make-40-of-sectors-low-skilled-workers-obsolete

7. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
But both concerns are falling to the new automation.
Amazon, perhaps the most forward thinking company
when it comes to warehouse robotics, went all-in in 2012,
purchasing the robotics company, Kiva, to supply its grow-
ing need for logistical automation. Over the last three years,
it’s added no less than 15,000 robots a year, quickling build-
ing to a present total of 45,000.
These tiny robots, just 40
centimetres tall, move in
collaborative order,
ing entire shelves of stock
and bringing them to their
human coworkers for pro-
Click for video cessing. The people stay put,
working at centralised fulfillment stations; the robots do the
moving, and their precision, speed, and organisation means
that more items can move through a warehouse than ever
before.
“With Sawyer able to undertake a
range of repetitive tasks on a variety
of products, its up-and-down-scalable
nature helps us fulfil e-commerce
orders more efficiently.”
- M
 ar k Par so n s, C h ie f C u st o m e r Of f ice r,
D H L Su p p ly C h ain
lift- Traditionally, automation meant powerful, dangerous
equipment, demanding its own workspace, carefully sepa-
rated from human beings. But a new generation of robotic
coworkers - designed with collaboration in mind - are alter-
ing how warehousing works. Such ‘cobots’ are equipped
with sophisticated sensors that alert them to the presence
of their human partners, and they have a range of safety
features that allow them to work alongside people without
risking injury.

Locus Robotics, building on Rethink Robotic’s Sawyer is

an $8 million venture capital a great example. Their first
foundation, has developed design, Baxter, took the man-
the LocusBot, an alternative ufacturing world by storm
to Amazon’s system. It’s now because of its low cost, high
selling these warehouse flexibility, and impressive
Click for video robots to clients including Click for video safety. Sawyer is a more
DHL at an estimated price of about $30,000 per robot. compact version of the same tech, and both cobots have var-
The LocusBots, too, work with humans - they find an item ious ways of ensuring worker safety: they operate at human
on the shelf, while people patrol allocated ‘zones’ of the speeds, sense contact and stop or slow automatically. They
warehouse, meeting the robot at the item. The human then also have ‘force limit’, so that any contact that might occur
logs the item on a robot-mounted touch screen and drops is below a force capable of causing injury. Additionally, both
it in the LocusBot’s basket for shipping. Again, this system cobots have ‘faces’ with digital eyes that signal the cobot’s
minimises the distances people move, relying on tireless, intent, telling coworkers where they plan to move next.
efficient, precise robots to do the heavy lifting. Sawyer is a small design, ideal for warehouse packaging.
Because cobots can work with people, tirelessly repeating
the same task, they are ideal for packing containers, load-
ing palettes, and shipping stock. This cobot has already
been employed packing “pet food, confectionery, aerosols
and canned drinks,” and the range of items that Sawyer can
manipulate is essentially unlimited.

8. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
3.O
DRONES AND
SELF-DRIVING SYSTEMS
“Right now, we’re at a point where conventional technology is already at such
a high standard, there’s not much more room for improvement. As a result,
companies are looking for new technologies they can use.”
- A rne Vie h m e iste r-Ke r n e r, MU LT IR OTO R
Drones are small, unmanned aerial vehicles. They typically
use four propellers to provide lift, thrust, and control for a
centralised, lightweight chassis. They’re fast, nimble, and
strong, and depending on their size, they can carry signif-
icant payloads. Industry insiders like Aren Viehmeister-
Kerner think that the explosion in drone tech is driven
by the exhaustion of capacity in logistics. With consist-
ent double-digit growth in online shopping, for instance,
logistic chains are reaching the limits of traditional tech.
And improvements in materials, design, flight control, and
battery life have led to these tiny workhorses to make the
transition from expensive toys to cheap helpmates for
industry.
9.
Unsurprisingly, Amazon is leading the way here, too. Given
its tremendous investment in automation, this was the next
logical step for the online retail giant. In March, it unveiled
its first automated delivery, four pounds of sunscreen
ferried by drone to a crowd at an outdoor conference.
But the reality is still a few years from deployment. The US
Federal Aviation Authority needs to set guidelines for drone
delivery, and that won’t happen overnight. But we have a
good sense of what the service will look like when it’s oper-
ational. Amazon doesn’t intend to use the drones for reg-
ular delivery; they’re an emergency option for super-fast,
one hour delivery. They’ll cruise at about 90 metres at a
T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T

touch more than 95 kilometres per hour, dodging birds and
obstacles with automated sensors. You’ll need an Amazon
landing pad for the drones to recognise from the air, and
when they see it, they’ll hover, slowly descending to deliver
your package before returning to base for a recharging.
Realistically, you’ll need to live close to a distribution cen-
tre - the drones won’t be crossing Texas to make deliveries.
We think drones will revolutionise the last mile problem for
hard to reach customers and urgent deliveries, and as the
tech improves even more, drone-ferried packages may end
up being more cost effective than current methods.
Self-driving systems, however, are poised to transform
logistics. They use sophisticated sensors, radar, and LIDAR
to detect obstacles, see their position relative other objects,
and steer clear of hazards. And they’ve already proven
themselves more than roadworthy.
Freightliner developed the Highway Pilot program, leading
to the licensing (in Nevada) of its first autonomous truck.
Its advanced sensors and smart driving algorithms allow
it to navigate roads better than a human driver can. As
Antuan Goodwin reports for CNET, “The truck can steer to
stay between lane markers and adjust its speed and braking
to maintain a safe following distance behind other cars on
the road, all while the driver is free to do other things.” The
human driver, however, is still an integral part of this deliv-
ery system. He’s needed to negotiate inclement weather,
interchanges and exits, and to drive surface roads and back
the trailer in for deliveries. For its part, the self-driving sys-
tem handles the long-haul cruising.
10.
© Otto/Uber
If you think this is far-
fetched, consider that
Anheuser-Busch has already
put autonomous delivery
into action. It unveiled its
own self-driving platform
Click for video powered by Otto, a subsidi-
ary of Uber. It completed a 193-kilometre autonomous deliv-
ery run in Colorado, paving the way for self-driving systems
to assist or replace professional drivers for the 450 billion
kilometres per year they log in the US alone.
But even bigger disruptions are coming.
Europe’s Maritime Unmanned Navigation through Intelli­
gence in Networks (MUNIN) project seeks to automate
ship traffic, the medium of 90 percent of the world’s goods.
Fully automated ships would radically alter the calculus
of maritime logistics. Ørnulf Jan Rødseth, a scientist with
the MUNIN project, insists that this is “an idea that opens
up entirely new possibilities in terms of new business
models.You cannot underestimate how important it is.”
T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
4.O

3D PRINTING
Major delivery players like UPS are exploring the power of 3D printing to
replace delivery for a variety of goods. 3D printing is a form of additive
manufacturing in which a high precision nozzle extrudes material in
layers, quickly building the desired shape. These printers are small, often
only slightly larger than a water cooler, and they can be installed anywhere.
As the cost of this technology has continued to drop, we anticipate a shift in
logistics from centralised hubs to decentralised printing stations, changing
the way products are delivered to customers.

The idea, says Tim Gohoc, managing director of UPS
Philippines, is to move to ‘zero inventory’ warehousing. The
ultimate idea is to deliver goods to a consumer instantly,
and have them print the item in their homes or factories.“
On-demand manufacturing allows certain goods to be
transported digitally to their location before taking shape
as a physical product,” he explains.
This instant delivery is a big sell with customers who need
spare parts to continue production, for instance. With virtu-
ally no lead time, companies that leverage the power of 3D
printing as part of their logistical chain can quickly corner
the market on this emerging tech.

11. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
5.O

QUANTUM COMPUTING
Logisticians nearly always have to consider the optimal route between
varying points. This sounds like a simple problem, but the number of varia-
bles induce calculations beyond the capacity of even the fastest computers.
To get around this problem, software engineers are forced to take shortcuts
and divide these mammoth calculations into smaller problems.

But the advent of quantum computing will end this, allow-
ing computers ‘to swallow complexity whole.’ Quantum
computing takes advantage of the strange properties of
tiny particles. In some ways, they bend the laws of phys-
ics, allowing some very interesting advances in computing.
Normal computers depend on upon standard binary - a bit
can be encoded with either a 1 or a 0. But one of the strange
properties at the quantum level is that quantum bits, or
qubits, can be more than one thing - representing both a 1
and a 0 at the same time. This property is called quantum
superposition. Moreover, and perhaps even stranger, quan-
tum particles are linked to each other in sometimes mys-
terious ways, entangled in such a way that more than one
qubit immediately shares information, across space. This
allows the state of one qubit to depend on another, instantly.
This is called quantum entanglement.
fastest supercomputers decades to do. And while quantum
processing is not better at every task than conventional
processing, for logistical calculations it will unlock answers
that will transform supply chain management. They’ll be
able to plan routes, order supply chains, and streamline
logistics to a level that has been simply unattainable with
existing tech.
Until recently, however, the promise of quantum comput-
ing was thought to be decades from commercial applica-
tion. But a first step was recently taken by D-Wave Systems,
who sell a ‘quantum chip’ that’s very good at optimisation
problems. Scientists don’t think that the D-Wave’s chip is
truly quantum - it relies on quantum annealing - rather than
the real thing, but it’s already available and solving complex
problems.

The combination of these two quantum properties means
that quantum processing is to conventional computing as
counting on your fingers is to your iPhone 7. A quantum
processor can handle enormously complicated calcula-
tions, finishing a process in hours that would take even the
But the real thing is almost here. IBM is developing a true
quantum computer with 50 qubits of processing power, a
large, expensive, unwieldy device the size of a refrigerator.
They plan to sell this behemoth in the next few years, and it
promises to truly revolutionise… well, everything.

12. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
6.O

BLOCKCHAIN
“...This is a world premiere and a huge achievement considering the transac-
tion involved actual physical goods being traded across borders.”
- Auré lie n M e n a n t, t h e f o u n d e r a n d C E O o f G at e co in

You’re probably familiar with Blockchain as the software
undergirding Bitcoin. Blockchain can do this well because
it provides a secure, diffuse, transparent system to record
transactions. Here’s how it works. Information is embedded
in a time-stamped block. This block is then placed between
two others, forming a chain. The chain is stored on every
computer running Blockchain, ensuring that there’s never
an outage. Moreover, these chains are publicly accessible
- guaranteeing transparency - and virtually unhackable.
To alter one block, you need to hack them all.
But the power of Blockchain is useful for more than crypto­
currency. Because it can record any transactional informa-
tion, it’s being considered for storing medical records, as it
would allow physicians to see a patient’s medical history
over time. This is promising a new era in patient informa-
tion record keeping.
Similarly, Blockchain can do wonders for supply chain
management.
By joining Blockchain to the IoT and smart contracts, it’s
possible to make shipments and payments automatic and
transparent, providing immediate payment when the con-
ditions of a contract are filled. The Commonwealth Bank
of Australia (CBA), Wells Fargo and Brighann Cotton are
experi­menting with an international shipment of 88 bales
of cotton from the supplier in Texas to the customer in
China. Using a digital smart contract and a distributed
ledger system like Blockchain, they’re doing away with the
paperwork and uncertainty.
We think this is the future of supply chain management.
Forget paperwork, signatures, and labour intensive manual
processing. Distributed ledger systems, smart contracts,
and the IoT will enable a new era of autonomous logistical
management.

CONCLUSION
We promised that the future of logistics and supply chain management would constitute a radical break from the past, and
it’s clear we believe that to be true. From the data supplied by the IoT to self-driving systems, from advanced automation
to Blockchain, the next decades of logistics and supply chain management will enable faster, more efficient, more precise
delivery, allowing tomorrow’s companies to meet the growing needs of their customers.

13. T H E F U T U R E O F L O G I S T I C S A N D S U P P LY C H A I N M A N A G E M E N T
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