Make logistics sense - the need for a single digital thread

Logistics is the backbone of many industries, and historically has been an early adopter of advanced technologies to improve efficiency. Despite this readiness to advance, logistics is facing pressure to handle higher demand with less staff in almost all applications.

This is driven largely by ongoing skills shortages, rapid expansion of e-commerce, and increasing complex supply chains, as shown in a 2023 Capital Recruitment Group report. Each of these challenges shows a need for a new approach to create a single digital thread running throughout IT and OT systems that will deliver value for end users, system integrators, and OEMs serving the vital sector.

Universal Automation

With logistics being an early adopter of technology, especially robotics, the sector is seeing challenges when integrating existing systems. Often these are based on proprietary technology that was developed by individual suppliers and was not designed to plug seamlessly into systems from other vendors. This restricts innovation and limit a business’ agility. Universal automation has now been introduced to overcome this.

It is a technology-enabler based on the IEC 61499 standard, representing a community of automation users, technology vendors and academics, and organised by an independent non-profit association. In practice universal automation creates a shared automation layer that will oversee multiple proprietary systems.

That means IT and OT systems will work together seamlessly and that best-in-class hardware and software can be deployed to meet changing needs regardless of what is already installed. It also unlocks next- generation capabilities that play a role in efficiency and sustainability.

Single digital thread

Open automation enables a continuous fl ow of data and communication across all assets in a system, even legacy assets without digital capabilities can have sensors added to feed real-time analysis.

This creates a digital thread linking disparate systems, enabling logistics operators to monitor, control, and optimise operations across a single facility, large enterprise, or even an entire supply chain. Using open and vendor-agnostic systems reduces the need to upskill workers to have deep expertise across a wide range of proprietary technologies, ensuring their vital job knowledge can be applied anywhere in the sector. Focusing on a single universal platform that controls multiple technologies simplifies the learning curve for new team members while enabling existing staff to extend their skills further. A recent report from Capital

Recruitment Group highlights a demand for staff with knowledge of automation, AI, and data analytics, who can reduce cost and improve efficiency.

By adopting open automation, system integrators, OEMs, and end users can create a foundation for logistics professionals to develop the skills they need to get the most of every system while lowering the bar to new entrants and attracting new talent to workforce. The key is that new and existing employees can make decisions based on data.

Logistics operations must constantly contend with fluctuating demand and seasonal changes, requiring a level of agility to repurpose legacy assets, scale up or down and seamlessly integrate new technology to respond quickly to market shifts. Universal automation supports this, enabling anyone in the logistics sector including OEMs and SIs to maintain agility and grow their business through added value.

Operators will have the information they need to adapt to new products without extensive hardware changes. Meanwhile, OEMs can support their customers with new machines safe in the knowledge they can integrate with current facilities, and SIs can scale up to support more customers on a digital transformation journey.

The digital thread running throughout logistics operations with universal automation can also be applied to the increasingly complex, and sometimes global, supply chain. For example, communication and real-time data visibility of warehouse management systems, manufacturing operations, and distribution means issues across the supply chain can be anticipated.

Logistics professionals can make informed decisions and track performance metrics with a complete overview. As mentioned, logistics is the backbone of many industries so any improvements and optimisation within a facility will have a wide impact. With universal automation in place, improvements can be applied across a very diverse supply chain with each business collaborating to ultimately deliver a better service for the consumer.

The benefits of a single digital thread reach far beyond just the manufacturing example. For parcel and post operations, consumers expect faster delivery which places immense pressure on the workforce. AI-driven sorting technologies and analytics are a potential solution to enhance accuracy but enabling it requires all components across IT and OT to communicate. In baggage handling, particularly in airports, new technology that streamlines check-in or security is consistently being added. Again, with a digital foundation any number of new technologies can be added without integration challenges, ensuring airports can improve customer satisfaction.

The ability to connect systems and build a digital foundation will play an important role in the future of logistics. By putting a shared automation layer in place, the broad and varied industry will have the tools to improve efficiency, business resiliency, and sustainability while navigating the challenges of the sector. End users, system integrators, and OEMs can remain at the forefront of technology, collaborating across the supply chain and building the logistics ecosystem of the future.

About Schneider Electric

Schneider’s purpose is to create Impact by empowering all to make the most of our energy and resources, bridging progress and sustainability for all. At Schneider, we call this Life Is On. Our mission is to be the trusted partner in Sustainability and Efficiency. We are a global industrial technology leader bringing world- eading expertise in electrification, automation and digitization to smart industries, resilient infrastructure, future-proof data centers, intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide integrated end-to-end lifecycle AI enabled Industrial IoT solutions with connected products, automation, software and services, delivering digital twins to enable profitable growth for our customers.

We are a people company with an ecosystem of 150,000 colleagues and more than a million partners operating in over 100 countries to ensure proximity to our customers and stakeholders. We embrace diversity and inclusion in everything we do, guided by our meaningful purpose of a sustainable future for all.

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