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Future market for

Future market for intralogistics GLOBAL BUSINESS For the intralogistics branch, Indonesia is an interesting growth market with a future. Considerable investment is currently being made here in logistics, as revealed by capital expenditure in materials handling and intralogistics. Numerous corresponding intralogistics-solutions and -concepts will be exhibited at the international CeMAT-Trade fairs like Cemat Southeast Asia or in 2018 at CeMAT in Hanover. “Intralogistics made in Germany” – Keynote Sascha Schmel, March, 4th 2017, 11:30 a.m. From 2014 to 2015 alone, global intralogistics exports grew by 28%. Indonesia’s key trading partners are China, followed by Singapore and Japan. Germany comes in fourth place, right after the Asian neighbours. This is what makes it so important and right to hold the CeMAT in Indonesia for the very first time. The interested trade public will have an opportunity to find out about the latest trends and technical developments in materials handling and intralogistics. As conceptual sponsor behind the CeMAT shows worldwide, the VDMA Association Materials Handling and Intralogistics gives a fascinating insight into the German and European intralogistics branch: which trends and topics are stirring the German manufacturers? Which pioneering technological developments are approaching? Intralogistics meets Industry 4.0 Industry 4.0 is one of the prime driving forces of technology. It refers to using state-of-the-art information and communications technology in the production process. The driving force behind this development is the rapidly increasing digitization of the economy and WORLD OF INDUSTRIES – INTRALOGISTICS & DISTRIBUTION 1/2017

society. Digitization is enabling substantial changes in the way Germany will produce and work in future. Digitization and associated automation have been affecting the intralogistics branch for some time now. Especially two areas are driving this development in Germany and in Europe. These are e- commerce and production logistics, with the automotive industry taking the lead. In these areas high demands are made for logistics processes along with the corresponding intralogistics. The fourth industrial revolution is being defined by so-called smart factories Sascha Schmel, Managing Director of VDMA Materials Handling and Intralogistics all flows and information along the total adding value and supply chain, starting from the raw material supplier right through to the final customer. It depends on consistent, uniform visualization of the production and material flow, for all companies involved in the supply chain. This can no longer be done by hand. Today, huge quantities of data are generated by the diversity and complexity of processes involved in e-commerce, in production supplies for car manufacturers and in all other areas. IT-assisted and controlled systems is the only solution. The result will be even more effective if these systems are capable of communicating and connecting with other systems for smart control of the processes involved. Photographs: VDMA, lead photo Fotolia/processing: VFV Layout Most important export countries to Indonesia Material Handling All values in 1.000 Euro In fact, today there’s practically nothing that can’t be bought online. Traders and manufacturers selling on the internet have to cope with great logistics demands. They have to offer the widest possible range of goods or products to survive in the face of online competition. Corresponding stocks will have to be maintained. At the same time, there are more orders with fewer items. And customers want fast, flexible delivery of their goods. Also upstream processes are affected by growing e-commerce, with higher workloads for warehouses and distribution centers and of course for the conveying systems and intralogistics equipment being used there. The corresponding technology must be capable of handling varying numbers of orders flexibly, with potential for extending and changing. Today, individual components must communicate with each other: For instance, the order picking devices with the warehouse software, etc. For online trading, this refers above all to picking, packaging and shipping, as well as to returns management of course. The same applies to production logistics. Here the aim is to reduce stocks to an absolute minimum; instead, the necessary parts or products have to be supplied just in time for the respective production or installation stage. Production and warehouse planning therefore have to be well coordinated. The automotive industry has forged ahead with just-in-time and just-in-sequence deliveries. Meanwhile these concepts have also become established in many other branches. The focus is on the whole value chain China Singapore Japan Germany South Korea Australia USA Malaysia Taiwan Italy 56.427 68.897 40.354 31.770 25.131 22.504 24.154 20.075 18.436 21.408 15.954 207.169 200.671 181.603 187.396 392.917 2015 2014 552.176 Actually, companies are already going even further, with the focus on supply chain management. This important term comprises Source: VDMA WORLD OF INDUSTRIES – INTRALOGISTICS & DISTRIBUTION 1/2017