Logistics 4.0: A New World in Sight

It seems clear that, despite the devastating scenario caused by the coronavirus pandemic (COVID-19), with more than 575,000 fatalities in the country, the corporate world will not be the same once this crisis is overcome. After all, driven by circumstances, many companies, both private and public, were led to discover the advantages of telecommuting, also known as remote work or home office. It has proven to be possible to have an employee or service provider working remotely and producing as much or even more than they did in the office. This helps avoid expenses related to large facilities, electricity, water, internet, and cleaning services. It also prevents employees from arriving at work late, poorly nourished, tired, or stressed after facing obstacles like traffic jams.

For companies involved in foreign trade, which have already had to adapt to the computerization of services provided by the Federal Revenue Service and other government agencies, the social distancing brought about by the pandemic was essential in solidifying virtual mechanisms that were already in progress, such as Industry 4.0. This term, coined after the Hannover Fair in 2013, began to define a kind of “new world order” for competitiveness in business, incorporating the use of modern technologies, methods, and systems.

Based on this concept, Logistics 4.0 emerged, aiming to utilize technological trends in the supply chain, which encompasses the various stages through which products pass, from the extraction of raw materials to delivery to the end consumer. With the pandemic, it became more evident that companies need to invest in technologies capable of enhancing their management processes, ultimately making them more efficient and competitive.

Just look at how e-commerce has evolved, the sale of products and services over the internet, due to the need for people to avoid leaving their homes and entering crowded supermarkets and markets. All of this required a reinvention of logistics, which necessitated more investment in technology because transactions need to be conducted through electronic devices, such as computers and smartphones.

In other words, exchanging information on orders, transport occurrences, and freight status via email or manually inputting information into systems have become outdated practices. Today, a cutting-edge transportation company already employs artificial intelligence, machine learning, and automation for numerous processes. After all, these innovations bring many benefits to companies, allowing them to allocate their talents to strategic functions while leaving operations to machines. As is known, technology significantly reduces error rates, speeds up tasks, and reduces costs.

Therefore, the solution lies in investing in technologies like Electronic Data Interchange (EDI) and web services, which can integrate shippers, carriers, suppliers, and customers. After all, the circumstances resulting from the pandemic have changed consumer behavior. Today’s hyper-connected consumers gather more information about a product and are hardly deceived by deceptive advertisements disguised as “spontaneous” interviews that often circulate on social media. Today, consumers can electronically turn to the National Health Surveillance Agency (Anvisa) to find out if a product is harmful or not and if its sale is authorized. Or to the Latin American and Caribbean Center on Health Sciences Information, based in São Paulo, Brazil, better known by its acronym Bireme, which stands for the original name Regional Library of Medicine, a specialized body of the Pan American Health Organization and the World Health Organization (PAHO/WHO). And if they are confident in the product’s effectiveness, they can resort to apps to pay bills—all in the blink of an eye. It was to meet this new world that Logistics 4.0 emerged.

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Liana Lourenço Martinelli, lawyer, postgraduate in Business Management and International Trade, is the Institutional Relations Manager of the Fiorde Group, composed of the companies Fiorde International Logistics, FTA Transport and Warehouses, and Barter International Trade. Email: fiorde@fiorde.com.br. Website: www.fiorde.com.br

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