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Intralogistics: its growth, its benefits for the supply chain and its future challenges in the era of Industry 4.0

Definition :

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.

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 steadily, incorporating the latest technological advances. The e-commerce boom in the early 2000s marked a turning point, making intralogistics a performance lever in its own right.

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 fully integrated into Industry 4.0. Modern intralogistics solutions now rely on artificial intelligence and robotics to increase connectivity and flexibility, thereby adapting to changes in demand and disruptions in the supply chain.

What activities does intralogistics cover?

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.

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The benefits of intralogistics for supply chain performance

Process optimisation

Processes are streamlined and rationalised, from stock management to order preparation and dispatch.

Increased productivity

intralogistics increases the overall productivity of operators and equipment by automating and optimising workflows

Increased flexibility

the connectivity of systems enables decision-makers to react quickly to fluctuations in demand and to adapt stocks and processes as required.

 Error reduction

intralogistics reduces human error and increases precision by automating repetitive tasks.

Better traceability

IT technologies and systems such as WCS, barcodes and RFID provide real-time visibility of all warehouse processes and goods.

Cost reduction

By optimising storage space, reducing error rates and order processing times, intralogistics helps to minimise overall supply chain costs.

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:

  • Changing consumer habits, with customers becoming increasingly demanding in terms of product availability and delivery speed.
  • Intensified competition, reinforced by the technological race imposed by all sectors of activity.
  • Environmental challenges, which are pushing companies to adopt more sensible and sustainable intralogistics solutions.

To meet these challenges, intralogistics is turning to artificial intelligence through:

– Automation: Automated, computer-controlled systems streamline processes and reduce order processing times while adjusting production in real time.

– Robotics: By handling the most repetitive or strenuous tasks, robotic arms, AGVs (Automated Guided Vehicles), and AMRs (Autonomous Mobile Robots) free up operators to focus on higher value-added tasks.

– Energy efficiency: New energy-efficient technologies, such as LEDs and motion sensors, along with the use of recycled materials by manufacturers, enable companies to achieve significant cost savings while being more environmentally friendly.

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