Digitalization in logistics: strategies & tools

Professional process design is an indispensable basis for successful digitalization in logistics. We use proven methods and software tools from business process management to help logisticians identify, evaluate, implement, monitor and continuously improve the potential of digitalization in their organization. The aim: to increase productivity and improve efficiency.

The use of BPMN 2.0 significantly promotes digitalization in logistics. This notation language is used for process modeling. BPMN 2.0 is standardized worldwide according to ISO/IEC 19510:2013 and has established itself internationally for the representation of business and technical process flows, for example in the mapping of processes in the warehouse, for goods handling, order processing or the introduction of scanner solutions. Our spectrum ranges from the creation of actual and target processes for the value-adding processes of a forwarding company to the technical mapping of processes including workflow management and low-code platforms as well as technical executability using a BPM process engine.

Digitalization in logistics is made possible by technologies such as process mining software precise analysis and optimization of process chains. Together with our partner Celonis, one of the leading process mining experts, we are developing process models that logisticians can use to make every step in their complex processes traceable, down to the document level if necessary. This reveals deviations, outliers or any bottlenecks that make their process chains inefficient. Using these analyses, logisticians can identify the current status of the processes in their organization, compare this with the target process models and derive targeted measures.

With these measures in the course of digitalization in logistics, business processes can be optimally adapted, improvement potential fully exploited, efficiency increased and costs saved. Logistics service providers in particular, who map many process sequences and transaction data, can no longer avoid the use of process mining. Since organizational and IT projects in logistics are usually extensive and complex, we rely on efficient partnerships. Our cooperation with the following partners in the context of the digitalization of logistics has proven to be very successful:

Read our Success Story about TCI Logistics GmbH from Hamburg, whose logistics processes we modelled and optimized using BPMN 2.0.

Our IT consultants develop customized solutions that are tailored to the individual needs of individual logistics companies. There are basically no limits to the requirements arising from the digitalization of logistics. We use modern technologies to create web applications, mobile solutions and hybrid IT landscapes, for example, into which we can also integrate cloud services if required.

Digitalization in logistics requires flexible and robust IT infrastructures. When choosing the right software architecture, we recommend that our customers in the logistics sector rely on container technology for reasons of resilience. We break down monolithic architectures into microservices that are encapsulated in containers. Clustered in this way, the instances can be scaled automatically in line with the runtime. We are proficient in various programming languages, although we mainly use Java and .NET in the logistics environment.

This is how software development works within the framework of Continuos Integration and Continuos Deployment:

Software developers program an IT solution. As soon as they are finished, tests are carried out, ideally automatically. These tests are a crucial step in the digitalization of logistics, as they ensure that the software works efficiently and without errors. After successful testing, the components are transferred to an integration environment and tested in context. After approval by the testers, we install the components in the production environment. The aim is to automate as many steps of this process as possible and thus digitalize logistics.

When implementing our projects, we rely on modern software development methods that leave nothing to be desired or specified by our customers. Agile methods such as Scrum or KanBan support the rapid and flexible implementation of digitalization measures in logistics.

Here we have listed some examples of individual solutions for you that have been developed using this methodology and have proven their worth in the digitalization of logistics:

Business Intelligence (BI) – or data is the new gold:

Digitalization in logistics is the key to optimizing material and value flows, which are forward-looking for the industry. Tight margins, price wars and intense competitive pressure: for logistics specialists, these conditions reflect everyday working life. It is therefore all the more important that logistics companies use their resources efficiently. At the same time, they must provide a high level of service in order to maintain customer relationships in the long term.

This is where the digitalization of logistics comes into play: intelligent handling of large volumes of data, i.e. big data, supports these goals. Big data puts countless pieces of data and information into context and reduces them to the essentials. This gives logistics specialists a detailed view of the overall business and provides them with precisely prepared, relevant information at all times. In this way, decisions can be made on the basis of reliable facts rather than assumptions.

This is why we are working with our logistics providers (courier express parcel service, CEP) to build real-time data warehouses that combine and display data from IoT devices, such as scanners, as well as key performance indicators (KPIs) in addition to data from company systems. This initiative is a significant step in the digitalization of logistics

We believe that hybrid analytical infrastructures are architectures that complement traditional data warehouses and data science rather than considering them separately. Promoting digitalization in logistics through hybrid analytical infrastructures enables more efficient use of company data. Logistics companies benefit from this architecture by using a single point of truth for the same key figures and dimensions. A company-wide Business Object Model (BOM) serves as the functional view here. Once the technology has been implemented, logisticians use an overall architecture that is characterized by high scalability, a modular structure and flexible adaptability, especially as cloud services can be easily integrated if required. The integration of these services strengthens digitalization in logistics through improved data availability and processing. Examples of this are the DWH services Teradata Vantage and Snowflake in the GCP (Google Cloud Platform). The following cloud services are also used in the BI environment at GCP:

• GCP Cloud Storage
• GCP Compute Engine
• GCP Cloud SQL
• GCP Cloud Functions
• GCP Security Key Management
• GCP Kubernetes Engine

Detailed analyses as part of the digitalization of logistics using business intelligence and real-time evaluations are characterized by the following advantages:

• The logistics network and transport chains become completely transparent.
• The most important company key performance indicators (KPIs) are available in real time.
• The performance of the logistics network can be checked in real time and acute situations can be responded to quickly.

A reliable data and information base provides logisticians with a sound basis, even for short-term, operational decisions. In addition, individual departments or divisions can also benefit from BI – by providing them with a self-service BI system that provides clear tables with important divisional data.

Convince yourself of the efficiency of a real-time data warehouse and read how Hermes, one of Germany’s leading logistics service providers, stores many millions of new data records per day from over 30 connected source systems in its data warehouse.

Read in our Success Story about Hermeshow we helped the company transform into a data-driven company by developing a customized BI platform. data-driven company by developing a customized BI platform. This marks a success in the digitalization of logistics.

Data science opens up new fields of application for logistics companies:

The aim of data science is to generate knowledge from data in order to support decision-making processes or to optimize corporate management through digitalization in logistics. In the big data environment, data science is used to analyse huge volumes of data with statistical evaluations, machine learning and artificial intelligence (AI), which is also driving digitalization in logistics. This is made possible by computer algorithms that recognize patterns and correlations from historical data. Logistics experts can also use these findings to create more complex analyses in terms of business analytics. We are very familiar with how data science can be used to enhance the reporting of a BI landscape. This enables logistics experts to create more complex analyses such as forecasting models in addition to standard evaluations and to fully exploit the possibilities of data science and AI. They use forecasts from our machine learning models to support their transportation management and personnel management at transshipment points, for example. These advantages are central to digitalization in logistics.

Logisticians use data science to simulate an exact digital image of their supply chain and thus the performance of their entire logistics network. Different environmental situations and stress situations can be mirrored without great effort and weak points can be specifically identified. This is made possible, for example, by storing original data from the respective logistics company in HADOOP clusters for a longer period of time and merging it with IoT data (scanners) and external data, which strengthens the basis for digitalization in logistics. This provides logistics companies with a sound basis for strategic decisions, for example to optimize their network or detect anomalies in shipment flows.

Agile approaches have proven their worth in these projects for the digitalization of logistics. This gives our logistics customers greater flexibility in meeting their requirements. You can quickly incorporate the knowledge gained into the development of solutions.

EuroMistral® Road (EMR) is a sophisticated transport management system with a full range of services for general cargo and freight transport that makes a decisive contribution to the digitalization of logistics. EMR covers the entire value chain of a logistics company, making it one of the most comprehensive TMS solutions on the market and has proven itself in productive operation at many logistics companies in recent years.

These features make EuroMistral® Road so unique:

• EMR covers the entire value chain of a logistics company.
• EMR provides regular best practices and can be customized.
• EMR enables individually configurable workflows.
• EMR allows a high degree of automation for business process optimization, including Electronic Data Interchange Seeburger.
• EMR provides logisticians with a three-dimensional condition management system.
• EMR ensures real-time contribution margin calculation as early as the quotation preparation stage.
• EMR has interfaces to various third-party systems.

Logisticians use the following modules in EuroMistral® Road:

• Quotation system
• Order acceptance
• Disposition
• Billing
• Warehouse, hall and transport organization
• Customs clearance
• Internal clearing
• Invoicing
• Hall scanning/revision
• Dangerous goods handling
• Residue processing

In EuroMistral® Road, logisticians benefit from these advantages:

• EMR is based on many years of logistics expertise.
• EMR is a customized software “made in Mannheim”.
• EMR is being continuously developed in cooperation with renowned logistics companies.
• EMR is designed from the ground up for mass data processing.
• EMR has a modern container software architecture that is ideally suited for digitalization in logistics.
• EMR is available via a future-proof and sustainable DevOps operating model.
• EMR is continuously supplemented with new, future-oriented tools
• EMR can be used conveniently in the browser.

EuroMistral® Road supports interfaces to the following third-party systems:

• Interfaces to CRM, DMS, ERP (e.g. FI/CO) and MES systems
• Interfaces to route planners and telematics systems
• Interfaces to EDI via XML and EDI (SuccessStory)
• Interfaces to third parties involved (subcontractors, customs, etc.)
• DWH, BI etc.

The following logistics companies already use EuroMistral® Road as their leading transport management system:

Have we piqued your interest or would you like a (live) demo by one of our IT consultants? Then get in touch with us without obligation!

How the DevOps operating model accelerates IT:

In our agile operating model, development and operations work better together, allowing logisticians to react more quickly to changes.
DevOps
lead to a cultural change in software development and also form an important foundation on the path to the cloud:

• We live a true DevOps operating model
• We develop our IT solutions in-house in Mannheim
• We provide IT services and data center operations in the Rhine-Neckar region from a single source
• We have consistently aligned Continuous Delivery and Continuous Integration with your added value
• With the integrated SpiraTeam application lifecycle management system, we provide you with a complete solution that also enables you to master your project management and quality management reliably

The logistics and forwarding industry is constantly faced with major challenges when it comes to meeting customer requirements and saving costs at the same time. With SAP S/4HANA, companies in this sector have the opportunity to optimize their processes and thus save time and money.

SAP S/4HANA offers numerous advantages for the logistics and forwarding industry. By processing data in real time and being able to control processes in real time, companies can react more quickly to changes, optimize their supply chains and promote digitalization in logistics.

The ability to analyze data in real time also gives companies in the logistics and forwarding industry the opportunity to improve their business processes and better understand their customer needs. PTA GmbH is an SAP consulting company that provides comprehensive advice to companies in the logistics and forwarding industry. We support our customers in the implementation and optimization of SAP S/4HANA and help them to improve their business processes, increase their competitiveness and implement the digitalization of their logistics. With our many years of experience and broad expertise, we are able to offer our customers tailor-made solutions.

As digitalization progresses in freight forwarding and other logistics companies, more and more IT solutions are being used. These have many advantages. But these tools and applications also need to be supported, developed and maintained in the back office to ensure efficient operation over time.

To enable logistics companies to focus on their core business, we support both standard software systems and our customers’ own developments. Our professional application management not only saves logistics companies costs, but also increases continuity, flexibility and security.

And they raise their applications to a professional software level – from application development and requirements management to application design, test management, software implementation and
software implementation
performance and the roll-out of their IT landscape, with each step driving forward digitalization in logistics.

With DATIS IT Services GmbH, a subsidiary of PTA IT-Beratung, we offer logistics companies hosting, outsourcing and industry-specific IT services that have been specially adapted to the requirements of digitalization in logistics. The focus is on modern and reliable IT architectureswhich are certified in accordance with ISO 27001 and are also tailored precisely to the needs of logistics companies. With highly available systems, we guarantee logistics companies a smooth electronic exchange (EDI, Electronic Data Interchange) of important documents such as transport orders or status reports – around the clock, seven days a week. With data centers at two locations and mirrored systems, we achieve very high system availability for our logistics customers.

We design and implement cost-efficient operating environments for logistics companies with minimal downtime and always focus on their individual requirements, which increases the efficiency and effectiveness of digitalization in logistics. We are thus taking account of the margins in logistics, which are under greater pressure than ever due to current events.

You take care of your core business, we take care of the seamless and secure operation of your IT systems in our modern data centers. Benefit from

• from the setup, highly available operation and seamless support of your IT infrastructure by our IT experts and service staff in 24/7 mode, 365 days a year and “made in Germany”,
• from a significant reduction in legal risks through strict compliance with your IT governance,
• compliance with the complex KRITIS data protection regulations,
• smooth integration of your on-premise solutions and lean cloud services that take your digital transformation to a new level and
• of modern concepts for IT security and protection against cyber attacks in order to avoid system downtimes or failures.