4flow trend monitor

Digital transformation

A closer look at cutting-edge developments in supply chain technology

Connectivity
Supply chain automation
Artifical intelligence
Digital technology

Monitoring digital transformation trends

The benefits and risks of AI merit ongoing attention

The past year has seen a boom in digital technologies and especially AI. You’ll find four of the top five most impactful trends and three of the top five most timely trends in this section on digital transformation – highlighting the essential role of digital technologies in future-ready supply chains.

AI saw four times more search interest in late 2023 compared to the previous year. This boom led us to focus on these topics in this edition of the trend monitor. In particular, generative AI, the use of AI for real-time data enrichment and cyber risks merited careful consideration in our assessment. Businesses should pay attention to these dynamic trends as they continue to unfold.

Explore AI trends Explore trends in digital technologies

Questions or comments about the 4flow trend monitor? Get in touch with us.

Connectivity – in focus

Affected industries: Especially industries that rely on just-in-time (JIT) like automotive

Affected supply chain segments: Freight transportation (ETA prediction, track & trace) and warehousing (robotic fleet coordination)

Increasing value through interconnectedness

Connectivity comprises of using digital means to reduce the cost of communication and make information available. Cloud services make information and functionality available from everywhere, while also facilitating management and scalability of IT infrastructure. Third-party APIs can be utilized to receive essential information in a standardized format and to enable standardized data exchange in fleets of autonomous vehicles.

Related developments

Cloud advantages mean impressive growth

Logistics players continue to recognize the benefits of the cloud, including accessibility, reliability, and scalability. The market for supply chain management cloud solutions is registering a compound annual growth rate of 20%.

APIs for ETAs

Recent disruptions make information about shipment statuses more valuable. This also leverages the advantages of APIs.

AI and data security

In contrast, new AI programs process provided data, which creates high risk for businesses. Businesses are advised not to disclose confidential data to the provider’s infrastructure. In such cases, Edge AI or local instances of programs can be advisable.

Facets of this trend

APIs: leveraging expertise with third-party software and data integration
Cloud and software-as-a-service (SaaS)
Internet of things and Internet of everything

Getting ahead of the trend

Recent disruptions highlighted the value of reliable information regarding shipment statuses and product availability. Evaluate which APIs can support you in acquiring the information you need. On the other hand, developments in AI have made data sovereignty questions more complex – investigate to which degree data can safely be provided to cloud services.

Supply chain automation – in focus

Affected industries: Manufacturing and industries with hazardous environments

Affected supply chain segments: Especially warehousing and terminal operations

Reduced human effort through technological advancement

Supply chain operations consist of many repetitive tasks with high potential for automation. Advancements in AI enable new forms of automation. Labor-intensive warehouse operations can be automated by autonomous robots for storage and picking that are orchestrated via a central platform. Unmanned vehicles and drones are being tested for tasks like last-mile delivery.

Related developments

Intralogistics robotics: the next big thing?

Gartner predicts that by 2028, 50% of large enterprises will have adopted some form of intralogistics smart robots in warehousing or production.

Automation reaches new highs

Revenue of the robotics and automation industry keeps growing. Recent forecasts for Germany expect it to reach an all-time high of €15.7 billion in 2023 – a growth of 9% compared to 2022.

The warehouse that never sleeps

AI-powered drones can carry out inventory processes overnight.

Facets of this trend

Drones and autonomous vehicles
Labor task automation and bionics
Intralogistics integrated with production logistics

Getting ahead of the trend

Developments in AI make it possible to reach new levels of productivity with robotic systems and automation. Especially with regards to the labor shortage, businesses should re-evaluate the degree of automation of their logistics tasks. See the 4flow study about warehouse automation below for additional insights.