Vision of Logistics: Logistics 3.0

To the next generation of logisticians, who will enhance the social and environmental contribution of the logistics discipline. Logistics is a fast moving industry and has been adapting over the last 50 years from army logistics, to basic trucking and warehousing to where it is today. Logistics has evolved from an efficiency-focus (Logistics 1.0), to a customer focus (Logistics 2.0) over the past decade, and is now moving towards a new value-driven era (Logistics 3.0).

The Vision of Logistics (Logistics 3.0) sets out the entire path towards excellence for your own logistics operations (also known as the internal supply chain), your (entire) supply chain and the environment. Logistics shall contribute to the three aspects in parallel. In doing so, they shall maintain continuous balance and alignment within and among all elements. It is the path to find logistics excellence and profit, and to eventually evolve your business to the next level.

The Logistics 3.0 laws:

1. The supply chain and environment are integral parts of the logistics system.
2. The focus on logistics excellence and profit starts with cleanliness. Such practices include daily cleaning of toilets, warehouse floors, trucks, picking up dirt anywhere you see it and throwing it in the dustbin. Personal hygiene is a critical part of cleanliness, therefore people should for example practice washing their hands when they start work and after visiting the toilet.
3. Waste: less is more! Reduction of waste in our operations and our supply chain is an important theme. We need to consider the building (green building design), people we employ (green culture), and the things we bring in the building (less inventory).
4. With high level of automation, heavy equipment and temperature control in logistics (air conditioning, chilled, frozen), logistics companies today require high amounts of energy. Energy management starts with an energy audit of your energy use: warehouse, transport, offices, etc. Instead of relying your business solely on non-renewable energy sources, such as oil, gas, coal and nuclear energy, use the God-given energy from the sun and wind. Especially in Malaysia, warehouse roofs and cool trucks shall be covered with solar panels!
5. Water is a primary need of humans and the unprecedented precious resource mankind have on earth. Care for water starts with water management at your facilities, such as catching rainwater, reuse of water at your facilities, and water treatment before returning it back to nature.
6. From push to pull; The market requirements (customer values such as: halal, quality, food safety) are addressed throughout the supply chain. The supply chain is to a large extent pulled by the customer order, made possible by sharing point-of-sales (POS) data from the retailer with its supply chain partners.
7. Quality focus, to strive for perfection in all components, of the business, supply chain and towards the environment. A culture should be developed of continuous improvements, where both internal and external audits will be required to ensure sufficient progress.
8. Companies should embrace a culture of continuous learning, which should be supported by continuous training of staff but also through involvement in research projects (with your local university) and participate in industry/supply chain-wide (innovation) initiatives.

Are you ready to move to the new era of logistics: Logistics 3.0?