Embrace the digital transformation to Rethink your process
Digital processes and Industry 4.0 are major transformational trends that are currently influencing the business models of many sectors. In order to support the Luxembourg Logistics community to anticipate this trend and develop a digitalized automated Transportation and Logistics Internet, the Cluster for Logistics dedicated its Autumn Conference of December 2nd to this complex subject. Over 100 guests took part in the conference held at the Chamber of Commerce. They got an insight of the PwC 2016 Global Industry 4.0 Survey, some examples process automatization described by the new Luxembourg Centre for Logistics and Supply Chain Management Masters and the intention of the Young Logistics professional to organise as a Young Professionals Network. The Cluster is thanking the Sponsors; Amis de l'Université, Arthur Welter, DB Schenker, Cargolux, PwC onepoint and Legitech, for their support.
Digital transformation is an increasingly important subject for the logistics community as many managers are aware about the implications of missing this particular trend versus new incumbents. Luxembourg has to undergo a transformation, says Carlo Thelen, General Director of the Chamber of Commerce and President of the Cluster for Logistics. In line with the Jeremy Rifkin study about the Third Industrial Revolution, presented on November 14th, digitalization is a key aspect on the roadmap to transform the country into a smart sustainable nation.
The Senior Cluster Manager Malik Zeniti gave a quick overview what Digital transformation is and about the importance to consider changes to maintain the second place in the 2016 Logistics Performance Index (LPI) of the World bank. Digitization and Digitalization are not the same and used differently in different regions. The focus is on “the use of digital technologies, to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business, vs “Digitization as a process of changing from analog to digital form.”
The invited Speakers for the afternoon were:
Mr Harald Geimer from Strategy&, PwC Germany
Professor Benny Mantin, Associate Professor, University of Waterloo, Luxembourg Centre for Logistics and Supply Chain Management (LCL) (via Skype)
Dr. Torsten Mallée, Vorstand BVL, Director International Business Development AEB GmbH
Mr Romain Nicot, Partner transport, onepoint and Christophe Bertoncini, Consultant Supply Chain, Innovation, onepoint
Mr Malik Zeniti, Senior Cluster Manager of the Cluster for Logistics
Mr Arnaud Duban, Head of SME Performance Luxinnovation
Mr Harald Geimer from PwC company Strategy& based in Germany presented a survey where 2,000 managers were interviewed about their expectations regarding digital transformation.
Don't try to overengineer it
Digitisation drives quantum leaps in performance and digital revenue is driven by increased customer proximity, new services and business models, according to the study. Digitalization is not just about implementing new technologies to enhance your process, says Geimer from Strategy& Germany PwC. It is a chance to rethink and adapt your process, change the way you do business and thus discover new opportunities and value added services.
The surveyed specialists from 9 different sectors foresee an additional revenue in the global industry by 2.9% and a cost reduction of 3.6 %. This implementation may not be simple but the trend can't be ignored. "Be ready to fail fast, try things out and don't try to overengineer it", says Geimer.
Senior management representative from Germany’s AEB GmbH, an acknowledged expert of Customs IT and digital processes in logistics, Dr. Torsten Mallée shared his view about Why Industry 4.0 will undoubtedly change supply change management and logistics. Recently appointed board member of the BVL “Bundesvereinigung Logistik” Dr. Mallée highlighted that volatility and complexity as enemies of deterministic planning lead to new and better business processes to reduce costs and increase efficiencies through transformation. Important changes like low data storage costs, cloud computing and decreasing costs of sensors drive this.
Two major things are changing: Vertical and horizontal integration & digitalization are enhancing your value chain and Data analysis becomes a core competency. The company onepoint offers special services to enhance the Supply Chain by using market knowledge. Having a leaner, more direct link to your customers is a financial benefit, according to Romain Nicot and Christophe Bertoncini from onepoint. But "Agility of the supply chain” is key and “Experimenting” is necessary says Nicot , if coming come from old traditional processes.
Higher education and excellent application development are an important part of the transformation process. The Cluster was happy to introduce Prof. Benny Mantin to the Luxembourg logistics community via Skype. The director of the Luxembourg Centre for Logistics and Supply Chain Management (LCL) located in Luxembourg starting January, encouraged us to have a first speaker via video conference in line with digitisation. He was able to share his views to the audience. Digitalization is about innovation, says Prof. Mantin and gave examples. By embracing automation, companies are redesigning the process already. Big Data for example can help to analyse market trends and anticipate events and decisions leading to better forecast accuracy, critical to logistics. In order to enhance the Luxembourg logistics hub, the LCL, as a collaboration between MIT and Uni.lu, intends to offer full master course in 2017-2018.
Helping you to redesign your processes is one of the missions of Luxinnovation and the programme Fit4Innovation is dedicated to SME's and support is offered to initiate projects. Innovation consists of «transforming a challenge into a new solution, creating value for the client and the company», says Arnaud Duban of Luxinnovation. The Fit4Innovation Programme National initiative is funded by the Ministry of Economy to increase overall competitiveness of SMEs by focusing on the areas cost saving, productivity increase and quality. Interested companies can contact Arnaud @ Luxinnovation to learn more about their support.
Young Professionals and Teachers of the Diplôme de Technicien
The Young Professionals Logistics Luxembourg Network (YPL2), initiated by the Cluster for Logistics, presented its objectives for the next two years. Two spokespersons Johannes Hesse and Mathias Weinmann were eager to extend the network dedicated to young logisticians under 31 and the network is already on facebook https://www.facebook.com/YPL2network/
The network activities will include visits and subjects especially interesting for professionals with less than 5 years of experience.
The Cluster is supporting Education in logistics with a dedicated Diplôme de Technicien (DT Log) programme. This programme given by teachers of the Lycées of Bonnevoie and Lallange includes already two external “logistics” teachers that collaborate with the Cluster and the Ministry of Education to provide experience from the industry side. Jeanette Klar and Paul Winter highlighted their work and shared their passion with the audience. Further modules will be added during the next 2 next years, requiring more external specialists, whom Cluster is invited to join, from the Luxembourg community. The intention to participate in 2017 at the European Logistics Association's (ELA www.elalog.org) Logistics award was shared, more to come to register a project.
