Intralogistics: Definition, benefits and future challenges

01. Definition of intralogistics

Intralogistics refers to the management of internal flows of goods, materials and information within a company’s facilities. It encompasses all planning, organisation, control and execution activities related to the movement and storage of goods in a warehouse, factory or distribution centre.

Often overlooked in overall supply chain strategies, intralogistics has quietly established itself as an essential pillar of business success: by optimising the flow and processing of goods, it enables companies to increase their efficiency, productivity and competitiveness.

Yet intralogistics remains an often misunderstood field. Let’s take a look at its growth, its advantages, and the challenges and opportunities that await us in the era of Industry 4.0.

02. Origins linked to the rise of industrial production

The origins of intralogistics date back to the early 20th century, when the industrial revolution necessitated the development of more complex systems for inventory management and materials handling. Intralogistics was therefore born to meet the new demands of mass production.

Over the decades, intralogistics has evolved continuously, incorporating the latest technological advances. The e-commerce boom in the early 2000s marked a turning point, making intralogistics a full-fledged performance driver.

Since then, intralogistics has become a real competitive issue, forming part of an overall economic strategy. It is no longer limited to simple warehouse management and is now integrated into the entire supply chain, connecting suppliers to end customers.

With the advent of automation and IT systems, intralogistics is opening a new chapter in its history and is becoming fully integrated into Industry 4.0.

With an annual growth rate of around 10.4%, the UK intralogistics market is expected to reach approximately US $6.42 billion by 2030. (Source: Next Move Strategy Consulting)

Modern intralogistics solutions now rely on artificial intelligence and robotics to enhance connectivity and flexibility, enabling them to adapt to changing demand and disruptions in the supply chain.

Intralogistics aims to optimise the flow of goods and information to ensure efficient and profitable operations. It encompasses the following activities:

• Receiving and inspection: Incoming goods are processed, recorded and integrated into the logistics system.
• Inventory management: Goods are stored in appropriate locations according to their nature and turnover rate.
• Order preparation and processing: Goods are removed from stock, sorted, packaged and labelled before shipment.
• Shipping: goods are temporarily stored according to their destination and delivery order before being loaded onto trucks.
• Returns management: once received, goods are recorded and repackaged before being reintegrated into the system.

Each step requires rigorous computerised traceability in order to automate data collection and processing and adapt processes accordingly.

04. The benefits of intralogistics for supply chain performance

05. Towards smarter, more sustainable intralogistics

Intralogistics is a rapidly evolving sector that truly reflects our society and our consumption habits. With the emergence of the green supply chain and the connected industry, it is reinventing itself and embracing new challenges, including:

• The evolution of consumer habits, with customers becoming increasingly demanding regarding product availability and delivery speed. Nearly half of online shoppers are likely to abandon their cart if the delivery time is considered too long.
• Intensified competition, driven further by the technology race across all sectors.
• Environmental challengesEnvironmental concerns are prompting companies to adopt more sensible and sustainable intralogistics solutions. In the UK, the warehousing and transport sector consumes approximately 10kWh of energy annually per business, with lighting accounting for around 65% of this energy use. (Source : Yu Energie)

To address these challenges, intralogistics is turning to Industry 4.0 solutions:

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