Industry 4.0 factories filled with robots and connected electronically to the world will stand idle unless they are supported by efficient and reliable logistics chains, according to the World Development Report 2019: The Changing Nature of Work. Although the purpose of the report is to change education systems so that they prepare the next generation for a new world of work, the sub-text running throughout the report is that the smart new world will remain dependent on logistics.
“Competitive markets and efficient trade require basic infrastructure – roads, bridges, ports and airports. “Lower transport costs, as well as streamlined, cheaper border compliance processes, increase exports,” it states.
It points out that online stores are dependent on logistics in order to move the goods bought online. However, connectivity is already affecting the way logistics services are procured and delivered. An example is Belgian platform Teleroute which has reduced empty legs in Europe by up to 25% using an algorithm to match freight forwarders and carriers. Keeping the world’s growing population fed also depends on logistics. “For farmers to profit from increased agricultural productivity, they need access to markets, both at home and abroad.”
An example is exportoriented agriculture in northern and central Mexico which provides rural employment for millions of farmers and others in agro processing and packaging. Alquería, the third-largest dairy company in Colombia, uses information technology to coordinate 13 000 small dairy farmers to supply the export market.
“In addition to streamlining export processes, improving the trade logistics infrastructure, and increasing food safety compliance capacity, governments can facilitate exports through exporter training and marketing assistance.
“When farmers’ crops finally go to market, many of those in emerging economies do not know whether they are getting the best prices. In Uganda, TruTrade is an example of a digital technology that is bridging this information gap.
“TruTrade connects smallholders to buyers while raising quality and transparency and creating an atmosphere of trust. It uses online applications to allow price-setting and to track the movements of produce and payments. “Farmers receive good prices and reliable access to markets,” according to the report.
Industry 4.0 factories filled with robots and connected electronically to the world will stand idle unless they are supported by efficient and reliable logistics chains.
