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The Digital Transformation of Logistics


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he has also published and presented a number of papers concerning China's Belt Road Initiative and the changing Eurasian trade paradigm.

      He is recognized for his contribution and participation in the development of the Western Australian government's Asian Engagement Strategy 2019–2030.

       Lionel Willems

      Lionel is team leader of project managers and business analysts in the open‐core ERP company Odoo. After graduating with a master's in supply chain management and international business from the Louvain School of Management (Belgium), he helped in digitalizing SMEs across Asia by working in Indonesia, Vietnam, and Hong Kong for three years. Strong in functional, technical, project management and cross‐industry knowledge, Lionel's contribution to this book reflects his passion for logistics, supply chains, and IT.

       Dennis Wong

      Dennis has 15 years' experience in various functions at leading third‐party logistics providers in the United States and China. Most recently he was the Director of Sales at Flexport Asia‐Pacific Region, and previously the Director of Sales and Marketing at Kuehne + Nagel Hong Kong, where he acted as Head of Sales for Hong Kong, South China, and Macau. Dennis studied at California State Polytechnic University in Pomona.

       Duoqi Xu

      Duoqi is a Professor of Law at Fudan University School of Law, Shanghai Shuguang Scholar and one of The Top Ten Excellent Young Jurists in Shanghai (fifth session). She was also a Fulbright visiting scholar at Harvard law school from 2016 to 2017, was a Hauser Global research fellow at NYU from 2008 to 2009, and a visiting professor at Taiwan University in 2013. Professor Xu is the chief‐editor of Internet Finance Law Review, the Director of Center for Internet Finance Law Innovation of Shanghai Jiao Tong University.

       Jiao Xu

      The Fourth Industrial Revolution is in full swing, and we can see every day how technology is fundamentally changing businesses and our lives. Artificial intelligence in medical imaging is automating workflows and increasing diagnosis accuracy. Digital twins for aircraft engines are used to predict their physical behavior under extreme conditions. In virtual classrooms, interactive whiteboards and online content delivery are improving student outcomes while reducing teaching burden for instructors. Mobile payment platforms are helping consumers and companies to better manage their financial operations. Businesses around the world are striving to adopt new digitalization strategies to capitalize on these exciting new trends.

      The automotive industry is heavily dependent on the use of technology, and it has been an exciting and challenging experience to align on digital strategies with our many supply chain partners. The future is upon us as we see autonomous vehicles become a reality that will drive the biggest revolution since the invention of the car. I can feel the pulse of change especially here in China where our customers are on average 36 years old, much younger compared with the United States or Germany where the average age is over 50. These customers demand very strong orientation toward future technologies, connectivity, and digitalization. Therefore, we are set to transform into a software‐enabled car company, combining the traditional Porsche spirit with the power of new technology. A concentrated effort throughout our departments here in China together with Porsche AG is needed to bring this digital transformation to our customers.

      Throughout my career, I have seen technology quickly upgrades our production facilities, marketing capabilities, and products. However, there has been little change when it comes to the logistics of moving our products. As vehicles are produced in a limited series and made up of more than 20 000 individual parts, distribution and logistics is an integral component to the success of Porsche globally as we strive to get the right product to the right person at the right price whenever they so desire it. We consider logistics as an opportunity to differentiate ourselves from our competitors. For example, when we distribute our sports cars, we are transporting a number of factory‐new models from Leipzig to Chongqing via rail instead of ocean. This strategic logistics decision allowed us to shorten our delivery time by three weeks and allowed us to fulfill customer demand in Southwest China much more quickly. Sensors on board the train allow us to increase supply chain visibility by giving us real‐time location throughout the journey, and we are also able to monitor the humidity, shock, and temperature levels. The data generated by these movements allow Porsche to further improve our logistics process and is a good example how the Fourth Industrial Revolution will change logistics to improve performance and customer satisfaction. With IoT sensors, a new world is opening up where we have abundant possibilities for new analysis and potential ways to automate to create more efficient and sustainable processes. It is exciting to think about all the areas where Logistics 4.0 will enable new business models and advanced value streams. In order to bring these new opportunities of leveraging technology, we must avoid speculation and stop using overused and distorted terms that jeopardize all the great progress being made.

      From CEOs to operations clerks, there is a need to understand these cutting‐edge technologies in the context of today's market, the maturity within the logistics and supply chain community, and technological interdependencies. This requirement is what makes this book so important. It demystifies an area that is clouded by hype and misinformation and provides a remarkable overview of the industry and its transformation. The book provides the reader a working vocabulary and knowledge base to give them a deeper understanding about current industry activities and support their upskilling efforts. After reading this book, I am confident that it will inspire them to think deeply about how technology will influence their job in the near future.