Intelligent logistics
Interview: "Huge upheavals"
Today, more and more goods, products and merchandise have to be transported to a wide variety of locations faster and faster in order to be available at precisely defined times and in precisely defined quantities - in urban areas as well as in the countryside or in industry. An immense effort, and of course at the lowest possible price. In an interview with Andreas Mühlbauer, Dr. Christian Baur, CEO of Swisslog, explains what this development means for logistics.
Dr Baur, what has already changed in the logistics sector in recent years as a result of changes in conditions such as individual production and digitalization?
Logistics is facing huge upheavals. In addition to digitalization, urbanization, advancing automation and demographic trends are also changing the world. As a result, all areas are becoming increasingly interconnected. Logistics is also feeling the effects of this. The flow of goods across all stations through to the end consumer must be understood as a holistic process. This is nothing new. What has changed, however, are the requirements. Goods are part of a networked system at all times and at every stage of processing. Products that are subject to temperature regulations, for example, are monitored by software at all stations to ensure that they are processed correctly. This is just a simple example, but the trend is recognizable. Logistics must be able to meet these requirements. Individual mass production also ensures differentiation in production. For both intra- and extra-logistics, these developments mean a shift from overarching, rigid systems to modular, flexible and software-controlled solutions.
Are the requirements for logistics in urban and industrial environments comparable or are there fundamental differences?
The industrial logistics environment in particular is characterized by robot-supported automation technologies. Software applications are also highly relevant. Close networking and coordination of all logistics components with their environment are important here.
The rapidly growing private customer sector plays a major role in urban logistics. Due to digitalization and the rise of e-commerce, the volume of parcels has increased significantly in recent years. According to a survey by real estate consultants Colliers International, the parcel volume already amounted to 3.52 billion shipments in 2018. And we have not yet reached the end of these developments. The German Parcel and Express Logistics Association forecasts 4.15 billion shipments per year by 2021. These are huge dimensions. The resulting requirements for logistics are sometimes contradictory: on the one hand, customers expect same-day delivery at a reasonable price. The delivery time must also be compatible with people's everyday lives and must not be at the expense of retailers. On the other hand, transportation should not have too much of an impact on the environment and city centres should ideally be free of delivery vehicles. Logistics, especially in an urban environment, must resolve these contradictions with clever concepts.
How can an increasing logistical effort be implemented under these conditions? Can digitalization, in particular the use of artificial intelligence, also help here?
Digitalization and, above all, AI are not just helpers, but essential components for meeting the challenges of overload and rising demand. In this context, however, we are not talking about developments that lie far in the future. AI-controlled machines are already being used more often than perhaps expected. Especially in the field of robot-controlled process automation and driverless transport vehicles, there are solutions that are already ready for use. This does not mean that AI can currently take over entire logistics processes. However, there are certainly areas in which machines are being continuously developed in training loops.
Store logistics, for example, is developing concrete solution scenarios. One possibility is the use of robots such as the ItemPiQ. This is currently being used for repetitive piece picking and reduces the error rate compared to humans. With the help of an intelligent vision system and a multifunctional gripper, it can pick up to 1,000 items with a maximum weight of 1.5 kilograms per item, depending on size, weight, goods-to-robot system and storage method. The vision system also determines the gripping points on unfamiliar items, simplifying the machine's learning process. With these capabilities, a robot can make work in store logistics much easier and more efficient. For example, it can be used to fill shelves or pre-sort goods.
What will continue to change in 10 or even 20 years' time, what will the logistics landscape look like then?
Urbanization is continuing apace. According to current forecasts, there will be more than 40 megacities worldwide by 2030, i.e. conurbations with more than 10 million inhabitants. This is why urban logistics in particular will become increasingly important. Not only must supplies be ensured, but cities must also remain liveable. This requires smart solutions that break down the contradictions mentioned above. In my opinion, the optimal implementation consists of a coordinated mix of mobility and stationary facilities. Other factors include new entrepreneurial collaborations and intelligent software that serves as a basis.
One concrete implementation approach is the use of underground tube systems in which goods can be transported quickly from A to B, similar to the Hyperloop idea. There are already companies offering operational systems in this area. Self-driving, driverless transport vehicles that maneuver goods independently through crowded city streets are also conceivable and interesting. The development towards large distribution centers on the outskirts of large cities, which are shared by companies with similar storage conditions, is very likely. Companies can produce, store and ship goods there. The right software controls the increasingly complex flow of goods. We have already developed a ready-to-use solution for this: SynQ.
Of course, rural regions must not be neglected either. In this area, large means of transportation such as trucks or trains will continue to secure supplies in the future. The use of drones for deliveries is also a conceivable scenario.
What does this mean for Swisslog in terms of perspective, to what extent do you have to change?
Swisslog is already on the right track. However, this does not mean that we are now resting on our laurels. We want to continue to develop and tackle the challenges of the future as a driver of smart and innovative logistics solutions. Our focus is on flexibility and software-supported developments. Our many years of experience in the field of data and robotics automation stand us in good stead.
One example of Swisslog's developments is our SynQ software. It is currently used primarily for intelligent warehouse management in the context of smart warehouses. However, it can also be used in the future to ensure the smooth flow of goods both in out-of-town distribution centers and in micro-hubs within cities.
We are also currently working on a concept for micro-fulfilment centers, the "Q-Tainers". These are mini logistics centers made from discarded shipping containers. These can be positioned at important hubs in cities and thus create the right infrastructure for people in the surrounding area. With a modular design and different functions for the individual components, a pop-up distribution center can be quickly created and expanded as required. In this way, we are geared to the demands of the market.









